Mission Impossible?

by Amrit Dhillon

     Home to over 50 federal agencies, multiple government and military outlets, and a stone’s throw from the nation’s capital, Maryland — particularly the Baltimore-Washington Corridor — is one of the premier areas in the country for securing federal contracts.

     In fiscal year 2004, Maryland companies earned nearly $19.5 billion from the government, according to the federal procurement data system.

     Major players like Northrop Grumman Corp., Lockheed Martin Corp., Honeywell Technology Solutions and General Dynamics all have a serious presence in the state, winning contracts and creating new job opportunities at every turn.

     But today, these companies are looking for more than just a first-class resume.

     With a security-dominated global climate, the world of government contracting is filled with classified documents that protect national security. Only individuals with an active security clearance can work in this need-to-know arena. Recently, that pool of professionals has shrunk, leaving contractors short-handed and making those with clearances a hot commodity.

     “This is the epicenter for clearance activity in the United States,” said Richard A. Piske III, vice president and general manager of Kelly FedSecure, a Greenbelt-based staffing agency that places security-cleared professionals in the public and private sectors.

     “The government has been more aggressive in classifying programs than it was previously. There’s an increase in classification and a decrease in declassification,” he said. “The only ones with access are those with clearance, so that’s creating a demand.”

     The demand has led to a situation where candidates with clearance know their value and believe they are worth 10 to 15 percent more. For instance, one candidate recently landed a job offer for $25,000 more than his current salary, said Piske.

     “This is reflective of what’s going on in the market if you have the right clearance and the right skills,” he said.

     “Historically, those with a high level clearance can almost always expect to get paid a lot,” said Terry Marlow, vice president of acquisition policy for the Aerospace Industries Association, an Arlington, Va.-based trade group that represents manufacturers and suppliers in the aircraft and space systems industry. However, he noted within the last 10 years bonuses have jumped from $10,000 to around $25,000.

     Exacerbating the lack of personnel is not only the increase in classified data and the downsizing of the military — where most cleared personnel come from, said Piske, but a log jam in the clearance process, including a virtual shut-down last spring.

      Defense Security Service (DSS), the arm of the U.S. Department of Defense that issues clearances to the department and to federal government defense contractors, ran out of funds to continue issuing personnel security

clearances.

     Though the stoppage only lasted about a month, it drew more attention to the backlog and exhaustive time frame for completing a clearance, which is sometimes well over a year, said Piske.

     While the exact number of clearances pending at any given time is unknown, there have been estimates as high as 300,000, he said. The DSS reports in the first three quarters of 2006, it issued 155,304 personnel security clearances.

     The exact process varies, depending on what level of clearance is sought. At a minimum, the investigation includes background and credit checks and interviews with friends and family, according to the U.S. Office of Personnel Management, which handles the actual investigations for DSS.

     However, "the government won’t allow you to go through the clearance process until there’s a need [or position open]," Piske said. "That’s a problem.”

     Marlow admits the current situation is less than ideal, with prime contractors sometimes competing against each other for the contracts and for personnel.

     He adds that generally these defense giants simply accept the situation and wait it out.

     Contractors are willing to pay more right now, Marlow said, though sometimes they have to “eat the cost” if a contract has already been awarded and the company has to pay more than what was budgeted to fill a position. 

     Some contractors have creative ways to deal with the problem.

     “In some instances, we are able to assign technical personnel temporarily to other projects until their security clearances have been granted," said Gregory L. Hodges, Northrop Grumman’s director of employment and recruiting at its Linthicum-based Electronic Systems sector.

     “In spite of the oftentimes lengthy security clearance process, we're continuing to meet our technical staffing requirements,” he added.

     Northrop Grumman expects to hire 600 new employees in Maryland this year.

     Those with active clearances aren’t complaining though.

     “Having [it] opens up a lot of opportunities for you,” said David Shirk, a 29-year-old systems administrator, who is currently cleared to work thanks in part to four years with the Army and active National Guard duty.

     Shirk, who has a secret-level clearance, has been placed in four contract jobs. So far, his experience with the process has been relatively quick — taking just six months in 1998 and again in 2002 when it was renewed.

     He admits the clearance “gives you leverage,” but is quick to say you still can’t ask for an “insane salary.”

     “When it comes down to it, clearance is just a quarter of it — the rest is education, who you know and how you apply yourself,” said Shirk. <

Illustration by Dennis Oakes