Border Spending Up 82% Under S.744

From Bloomberg News:

Border Surge Boosts Security Spending 82 Percent: BGOV Insight

By Matthew Hummer and Brian Friel

(Bloomberg) — Contractors stung by sequestration would see some relief under the Senate immigration bill, which would boost border security spending by 82 percent, according to a Bloomberg Government estimate. The bill would shower billions of dollars on high- and low-tech measures including surveillance equipment, employment verification technology, fence construction and support services for border patrol agents.

The so called “border surge” amendment, negotiated by Republican Senators Bob Corker of Tennessee and John Hoeven of North Dakota, was added to the bill to gain additional support from fellow Republicans.

The amended bill, S. 744, which passed 68-32 on June 27, would spend $46.3 billion on securing the southern border with $38 billion going for more patrol agents and fencing between the U.S. and Mexico. The rest of the funds, $8.3 billion, would be for a national system that verifies employment eligibility, border surveillance technology and helping government agencies implement security plans.

Surveillance technologies and detection equipment deemed necessary for border security are itemized in the bill and outlined in the table and spreadsheet with this Insight. The list includes 40 helicopters, 30 marine vessels, 488 fixed-camera systems, 416 personal radiation detectors and thousands of other specialty items.

More Patrol Agents

The Senate bill calls for spending $30 billion to more than double the number of southern border patrol agents, bringing the total to 38,405 by Sept. 30, 2021 from the current 18,500.

Contractors supporting patrol staff could see orders grow at least as much. VF Corp. won $62 million for border agent uniforms last year. Helistream Inc., ManTech International Corp., Centech Group Inc. and others shared in $22 million of training work. Six companies led by KeyPoint Government Solutions Inc. shared in $56 million for background checks of border agent applicants.

More Fencing

At least another 350 miles of fence would be built under the bill, adding to the 350 miles that already exists. The Senate bill allocates $7.5 billion for the additional fencing, more than triple the $2.4 billion to build the existing fence in 2006 through 2009.

Granite Construction Inc. was the biggest builder of the previous section of fence, with $205 million in 2008 orders, or 8 percent of company revenue. Kiewit Corp. and Tetra Tech Inc.also won work. Michael Baker Corp., a Pennsylvania-based engineering and construction firm, earned $16.9 million, or 4 percent of its 2008 revenue, from a border fencing work.

Ramping Up E-Verify

E-Verify, a Homeland Security Department program used by about 7 percent of U.S. employers in 2012, would be rolled out to all companies. The Senate measure would spend $750 million over six years to ramp up the program. The bill also would authorize an additional $1.4 billion for E-Verify in 2014 through 2023, bringing the total spending to $2.15 billion, according to the Congressional Budget Office, although the additional $1.4 billion would have to be appropriated in subsequent legislation.

The E-Verify program awarded contracts for $69.5 million in 2013. Computer Sciences Corp. won 61 percent of the awarded funds, or $42.4 million, to run the system. Microsoft Corp. was awarded $18 million.

Surveillance Technology

The Senate bill also includes about $6.5 billion for surveillance technology and security equipment. The money is set aside for specific items including 15 Black Hawk helicopters made by Sikorsky Aircraft Corp., 4,595 ground sensors made by Harris Corp., Textron Inc.,Northrop Grumman Corp. and others. Northrop also makes radar units that cost about $4 million each, and the bill calls for six of them totaling about $24 million. The radar units also have to be maintained; Northrop could expect to get that work. The company was paid $19 million for two years of maintenance services under a previous defense contract.

If the Senate bill’s provisions are enacted, contractors could count on the spending because the bill’s enforcement provisions must begin before temporary legal status can be granted to the 11 million undocumented immigrants currently living in the U.S.

The House will be next to act on the issue. House Speaker John Boehner, an Ohio Republican, said last week he won’t bring an immigration proposal to a vote unless a majority of the chamber’s 234 Republicans support the bill.

(Matthew Hummer is a senior analyst with Bloomberg Government and Brian Friel is a senior analyst with Bloomberg Industries.)

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