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Current government efforts to stabilize the economy will have far-reaching fiscal consequences. The projected increase in the national debt combined with an ambitious domestic reform agenda will inevitably curtail established programs. The FY 2010 Annual Budget Submission does recommend a $2.6 billion increase for the Department of Homeland Security (DHS). However, the anticipated deterioration in public finances over the next several years will probably translate into significant budget cutbacks for established programs. Sooner or later, DHS will be asked to share the pain. This process may have already begun. On February 17th the new Secretary for Homeland Security, Janet Napolitano issued a departmental directive instructing staff to generate new efficiencies by reducing costs, streamlining processes, and eliminating bureaucratic duplication. Given the 208,000 DHS employees and a fiscal year budget ranging $35-40 billion, there are certainly economies that could be realized by a thorough in-house review. However, efficiency in this context appears to be focused on internal administrative costs; rather than a review of program effectiveness and procurement practices. In seeking greater security efficiencies, Benefit Cost Ratio (BCR) analysis may prove helpful. This type of analysis calculates the discounted stream of benefits and costs associated with a given program or project to determine whether budgetary resources are efficiently deployed. Recently a study entitled “Transnational Terrorism” was commissioned by the Copenhagen Consensus Center and partially funded under a DHS grant through the Center for Risk and Economic Analysis of Terrorism Events (CREATE) at the University of Southern California. The results are well worth considering… more

Technology Review

Since the experimental launch of Operation Safe Commerce in 2002, there has been encouraging progress in the development of tracking and inspection technologies. The program piloted the feasibility of the "Smart Container" concept which offers a number of important advantages in terms of improved security for international trade. Unlike government mandated security requirements, smart containers use modern communications and electronics to increase situational awareness in a commercial setting. Nowadays, this setting is global rather than national. Accordingly, the technology is designed to provide global asset visibility (GAV). This gives private owners and carriers much greater situational awareness regarding cargo status. The current application of this technology is driven by private commercial interests, such as improved logistics and avoidance of "cargo shrinkage". However, the application to port security is a logical extension given recent improvements in wireless communications and sensors. Much depends on how public/private partnership evolves to share information and coordinate priority customs clearance. Unlike public investments to "harden" critical infrastructure against transnational terrorism threats, GAV offers a security investment that meets standard investment criteria. Namely, the benefit stream over the life of the asset more than covers the cost of investment. (In financial terms, this means the net present discounted value of the investment is positive or in economic terms, the discounted benefit-cost ratio is greater than one.) The good news is that on board devices not only exist but have improved substantially in recent years. A fully integrated "sentinel system" would have a global communications platform and be connected to a sophisticated sensor array that monitors the integrity of the physical container as well as the condition of its cargo. While it may be premature to say that this technology might someday substitute for the radiation monitoring portals, currently being developed and deployed; it is safe to say that the technology can certainly complement port security. That is, by monitoring cargos in transit after scanning at the foreign port but prior to arrival in the U.S. more… continue

By Invitation: Luke Ritter of Ridge Global, LLC shares with us his views on the new legislation mandating 100 percent scanning of shipping containers by 2012. His extensive career in transport logistics and security make his views especially pertinent at this time. Does it make sense to roll out an expensive technology that may not provide effective security coverage? What are the likely tradeoffs between risk mitigation and facilitation of commerce? How will current international agreements, such as the Safe Framework and the World Customs Organization Agreement of 2005 relying on "Mutual Recognition" be affected by the new scanning requirement? Finally, how will the principle of reciprocity affect our trade relationships and cost of doing business? editorial...

Featured Member

HLSIA is proud to introduce Robert Stern who is the Managing Partner and founder of Defense Research, LLC. He might be best described as a serial entrepreneur having established various IT enterprises over the years. For example, he founded Technimation, Inc. a computer animation and simulation company, which was one of the first companies to develop 3D animation utilizing the PC. He hails from the University of Washington where he earned an advanced degree in Graphic/Industrial Design. He became Senior Advisor, Technology and Design, at IBM’s West Coast Research Center where he directed the design of convergent technology products. He also served as Creative Director for several Silicon Valley technology companies and has provided consulting services to Microsoft, Cisco, Apple Computers, and other Fortune 500 companies.

Rob Stern had always been interested and, at great personal effort, systematically educated himself in civil defense and emergency response information systems. His latest venture at Defense Research was to develop the most comprehensive reference available for planning and responding to mass casualty disasters. This project which involved compilation and distillation of thousands of pages of official text has been three years in the making. Soon this resource will be accessible on the internet with direct application to terrorist and natural disaster situations. The product is easy to navigate and quickly gives the user critical information to deal decisively with emergency situations.

Finally, a word about Defense Research firm capabilities... more

Featured Publication

Securing Global Transportation Networks by Luke Ritter, J. Michael Barrett & Rosalyn Wilson

This publication, in association with Trident Global Partners challenges the reader to adopt Total Security Management as a way to improve transportation security in the context of sound business practices.
See also http://www.ridgeglobal.com/news/2008/luke_ritter/index.asp Cost: $49.95. Visit McGraw Hill Professional Book Store to order.