1. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Survey on the Effects of the Security Clearance Moratorium on Industry and Government May 24, 2006

2. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Survey Partners FCW – Federal Computer Week hosted and publicized the survey and provided the analysis ITAA and a coalition of other industry partners developed the questions and provided input on the final analysis. Partners included: –AIA - Aerospace Industries Association –AFCEA - Armed Forces Communications & Electronics Association International –AGC - Associated General Contractors or America –AOC - Association of Old Crows –CSA - Contract Services Association –ITAA - Information Technology Association of America –INSA - Intelligence & National Security Alliance –NDIA - National Defense Industrial Association –PSC - Professional Services Council

3. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Survey Demographics 665 responses analyzed 86% industry and 14% government –280 representatives of large businesses responded –110 mid-sized businesses –180 small businesses or other designation –95 government officials Most industry respondents attributed more than 50% of their revenue to government sales –73% of large company respondents –82% of mid-size company respondents –83% of all other respondents

4. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Summary of findings - 1 78% of 93 government respondents, said that greater than 50% of their personnel and contractors needed clearances to do their jobs. Most agency respondents did not know what it costs to obtain clearances, if a premium is leveraged, or whether there is money in the budget for clearances in FY06. 50% of large companies, 62% of midsize companies and 67% of small and disadvantaged companies report that more than 50% of their employees need security clearances.

5. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Summary of findings - 2 One quarter of industry respondents say their company would be willing and able to pay for all or a portion of the processing fee for security investigations, but about one half don’t know whether or not this is the case. Most companies have the largest percentage of their cleared staff working for DOD. 77% of company respondents report that requests for cleared personnel have increased “greatly” (51%) or “somewhat” (26%) over the past five years. 52% of companies report paying a salary premium or providing additional benefits to attract, hire and/or retain persons with a security clearance.

6. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Summary of findings - 3 73% of those reporting that they pay a salary premium for cleared personnel pay a premium between 5% and 25%. 60% report that the premium they are paying is INCREASING. About one third the companies report that an interim clearance takes about 30 days, but about one quarter report that it takes more 90 days. Up to 40% of TOP SECRET clearances take more than one year to be fully adjudicated. Most (58%) periodic investigations take longer than they have in the past or are not being processed at all.

7. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Summary of findings - 4 From 2005-2006, 55% of industry respondents report that the security clearance process has gotten worse (31%) or stayed the same (24%). 31% of companies report having problems with agencies granting security clearance reciprocity. To gain reciprocity, 34% of industry respondents report that personnel had to go through another full clearance process and another 50% had to take some additional steps before being cleared. Most additional clearances took at least 90 days, and 14% took more than 270 days. 46% of industry respondents report that this problem has affected 25 employees or more, but 14% did not know how many employees have been affected.

8. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Summary of findings - 5 75% of respondents submit applications for clearance through DSS (but 16% don’t know to which agency they submit applications). 21% of respondents report a backlog of more than 10 up to more than 100 employees’ clearances per month. 97% of respondents note that it is important to have clearances processed within 120 days. 22% of respondents report that the cost of the lack of cleared personnel to their company/agency is more than $1 million, but 57% cannot quantify this cost.

9. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Summary of findings - 6 34% of respondents who asked OPM for help in the clearance process reported unsatisfactory assistance, while 46% of respondents have not even asked. 34% of respondents who asked DSS for help reported that they were very helpful or somewhat helpful, while 35% of respondents have not asked. The CIA, the FBI and the Department of Energy were ranked the most difficult agencies from which to obtain security clearances.

10. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Respondents by Type of Employer (n=663)

11. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Questions answered by government agency personnel

12. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Percentage of agency workforce requiring an active security clearance to perform a job? (n=93)

13. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Cost to Agency of a “Secret” Clearance (n=95)

14. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Cost to Agency for a “Top Secret” clearance (n=91)

15. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Cost to Agency for an “SAP/SCI” clearance (n=90)

16. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Does the agency pay a premium charge for investigations? (n=93)

17. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Does the agency/department have enough funding in FY06 to meet its needs for cleared personnel? (n=93)

18. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Questions answered by industry respondents

19. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Percent of revenue from sales in the government market ( n=568)

20. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Percentage of company workforce that requires an active security clearance to perform a job? (n=565)

21. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Companies rely on employees with security clearances – larger companies have a greater proportion of employees that need clearances Greater than 50% of personnel need clearances Large Company50% Mid-Sized Company62% Other67%

22. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Companies’ willingness and ability to pay all or a portion of the processing fee for security investigations (n=563)

23. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Summary of which agencies require companies’ cleared staff 51% of companies have half or MORE of their cleared staff working for DOD. 68% of companies have half or LESS of their cleared staff working for other intelligence organizations. 68% of companies have one quarter or LESS of their cleared staff working for DHS. 67% of companies have one quarter or LESS of their cleared staff working for other civilian agencies.

24. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Percentage of cleared staff working on contracts with the Department of Defense (including intelligence-related activities): (n=568)

25. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Percentage of cleared staff working on contracts with the Intelligence Community (non-DoD Agencies only): (n=516)

26. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Percentage of cleared staff working on contracts with the Department of Homeland Security: (n= 221)

27. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Percentage of cleared staff working on contracts with other civilian agencies: (n=507)

28. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Companies whose contractual requirements for cleared personnel increased in the past 5 years (n=562)

29. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Companies paying a salary premium or providing additional benefits to attract, hire and/or retain persons with a security clearance (n=559)

30. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Percentage of that premium: (n=298)

31. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Companies that report paying a premium also note that the premium is increasing (n= 296)

32. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Time from application to receiving interim clearance (n=546)

33. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Percentage of Clearances taking more than one year by type Secret – 17% Top Secret – 40% SAP/SCI – 32%

34. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Average time to get an application for a SECRET clearance to be fully adjudicated (n=564)

35. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Average time to get a clearance for a TOP SECRET clearance to be fully adjudicated (n=561)

36. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Average time to get a clearance for an SAP/SCI clearance to be fully adjudicated (n=556)

37. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Have applications for periodic reinvestigations been delayed in any way? (n=561)

38. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Comparing 2005 to 2006, has the process improved? (n=563)

39. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC To what extent has it gotten worse or better? (n=277)

40. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Problems getting cleared personnel recognized by adjudicating agencies other than the one that issued their clearance? (reciprocity) (n=564)

41. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC The problem is widespread – agencies which bar access altogether: Barred access comments: Intel Agencies are not accepting SCI from other agencies. Personnel with clearances have to be processed again for Position of Trusts; Customs (CBP); DHS; DOJ/FBI; DOJ; SAPS & SCI; NAVSEA; DHS, ATF, CBP; Customs; Justice, DEA; DOE, CIA; DOJ; DOE, DOS, NSA; CIA-NSA; All still require and updated 86; DHS and DOD; DoD to Corporate; U.S. Coast Guard; Not issue with being barred, but rather the amount of time just to recognize or share the information.; CIA; US Customs; DEA; NSA; nsa; CIA; can not identify; NSA; DIA; FBI, CIA, DOS, DOJ; CIA,DIA,NSA; NSA does not accept CIA lifestyle poly; But it takes a very long time; DIA; OPM; DOJ, DHS; dod; Various, DOJ and DHS; DISA and NSA; DHS, DOJ; CIA Secret doesn't cross-over to DoD secret because the investigations are different; DOE, Jistice etc.; ONI; DoD; SAP programs; NSA; nsa, cia, nro; SAP programs; DoD; Intelligence Community; SAP programs; cia; most IC agencies; NSA, CIA, SAPs,; SAP programs; DOJ; SAP/SAR Programs; nsa; DHS refuses to accept other agencies; DoD; AIA; DoD; NRO -> CIA; AF to IC; CIA; DIA; AFSOC; Navy; NRO, NSA; CIA, DIA; DIA; DIA, NSA; DHS won't accept DoD clearances; DHS; FAA;

42. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Agencies with “some of both” comments: DOD; DHS; DIA; DoS; FBI; CIA, NSA; USAF; DoD; NRO will not communicate with others; USFK, DISA; State/DOD; Probs with IAC sponsored clearances at PACOM; CIA reluctant to accept DoD clearances; ODNI, DIA, NRO; ODNI, DIA, NRO; NSA, CIA; NSA and CIA; NRO, NSA, CIA; Various IC Agencies; Intel; DHS, FBI, State; FBI, CIA, NSA; NSA; DHS; cia; NRO; CIA, NRO, NSA, DIA, NGA; CIA; NRO, CIA; classified; PFPA; NRO and NGA; Department of State; FBI; Different Agencies have different requirements, ie., NSA vs. CIA, Navy, etc.; NRO, IC (for FBI DHS clearances); USAF; No can do; Have encountered extensive delays -- but not actually being "barred access."; DIA // NSA; AIA,; Project managers are great, but they too frustrated with system. Would actually prefer to buy more services from us than we can currently offer due to inability to get clearances, and all of us are formerly cleared. Just harder to do now as a small biz.; Disclosure not permitted; DoD to anyone or the reverse; DoS Clearance recognized by DoD; DOD didn't recognized STATE clearance; FAA; CIA, NSA; US Army / DIA; Navy; CIA, NSA

43. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Steps companies have to take to get reciprocity for cleared personnel (n= 167)

44. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Length of delay to acquire an additional clearance (n=166)

45. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC How many employees has this affected? (n= 167)

46. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Questions asked to industry and government personnel

47. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Moratorium on clearances: Percentage of agencies/companies that submit applications for clearances or periodic reinvestigations through DSS? (n=659)

48. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Number of applications backlogged until the clearance process is (fully) restarted? (n = 493)

49. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Importance of having clearances processed and completed within 120 days? (n=649)

50. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Cost in 2006 of the lack of personnel with current clearances? (n=654)

51. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC How long it SHOULD take to complete the security clearance process (n= 650)

52. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Responsiveness of OPM in dealing with any questions or concerns about the clearance process (n=649)

53. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Responsiveness of DSS/DISCO in dealing with questions or concerns about the clearance process (n=280)

54. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Ranking the difficulty by agency for obtaining security clearances – weighted score AgencyWeighted Score 1. Central Intelligence Agency7.75 2. Federal Bureau of Investigation7.23 3. Energy Department7.12 4. National Security Agency7.08 5. Defense Intelligence Agency6.95 6. Department of Homeland Security6.81 7. National Geospatial Intelligence Agency6.64 8. State Department (including USAID)6.20 9. Navy Intelligence6.13 10. Treasury Department6.05 11. U.S. Coast Guard5.95 12. Air Force Intelligence5.91 13. Army Intelligence5.75 14. Marine Corps Intelligence5.75 15. National Reconnaissance Office5.59

55. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Difficulty in obtaining a security clearance for each of these Agencies (1 being the easiest, 10 being the hardest)

56. © 2006 Federal Computer Week with AIA, AFCEA, AGC, AOC, CSA, ITAA, INSA, NDIA and PSC Security Clearance Coalition