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Civitas Group llc
Mark Shaheen
Principal
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CIVITAS GROUP ESTIMATES PRIVATE SECTOR SPENDING IN FY 2006 HOMELAND SECURITY BUDGET AT $9.5 BILLION

Washington, D.C. - February 10, 2005 - The amount of federal spending that is actionable for the private sector in the FY 2006 budget request for the Department of Homeland Security (DHS) is estimated to be $9.50 billion, according to Civitas Group llc, a homeland security strategic advisory and investment services firm, in a report released Thursday, The FY 2006 Homeland Security Budget Request: Key Implications for the Private Sector.

“This budget request demonstrates that DHS is reaching a new stage of maturity, focused on developing and finishing the tasks at hand rather than starting brand new activities,” said Robert Swindell, CEO of Civitas Group. “As the Department enters this new stage, its relation with the private sector is evolving, becoming less driven by crisis and urgency, and more focused on building sustainable partnerships with leading companies.”

This estimate of actionable federal spending would be a 2.8% increase from Civitas’ current estimate for FY 2005 of $9.25 billion. Neither annual estimate includes private sector spending that is a result of federal grants to states and localities.

Within the DHS budget, key areas where private sector opportunities are forecast to increase at a double-digit rate are the Science and Technology Directorate (an important show of commitment to leading-edge research for homeland security needs), Immigration and Customs Enforcement (ICE), and Emergency Preparedness & Response. Private sector opportunities are estimated as flat within Customs and Border Protection (CBP) and Informational Analysis and Infrastructure Protection (IAIP), and face nearly a 20% decline in TSA (in part due to the proposed transfer of some key TSA functions to a new screening office).

The report also examines the attractiveness of private sector opportunities in seven key areas, in light of the FY 2006 budget request and other recent developments. These seven areas are:

  1. Bioterrorism defense and countermeasures
  2. Border security, identification, and credentialing
  3. Radiation detection equipment and technology
  4. Anti-missile technology for commercial aviation
  5. Explosives detection and baggage screening systems
  6. Remote video surveillance equipment
  7. Operation centers and secure networks

Civitas Group is a strategic advisory and investment services firm serving the homeland security market. Civitas clients include Fortune 100 firms, leading security services providers, government contractors, early stage companies with promising technologies, and private investment firms. In an increasingly solutions-driven homeland security industry, Civitas helps its clients find partners and capital, build service platforms, and grow their businesses.

The full report is available at Civitas Group llc's website at http://civitasgroup.com.