Firms that help DHS save money will make money, analysts say.

• Author: Magnuson, Stew
• Position: Homeland Security - Department of Homeland Security

The days of big price tag, cutting-edge technology acquisitions at the Department of Homeland Security are over.

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After nearly a decade, the money spigot has been turned off, as one executive put it.

Advanced portals to scan shipping containers for nukes? Canceled. A virtual fence spanning hundreds of miles along the Southwest border. Forget it. A fleet of 24 Predator B drones at the ready? Customs and Border Protection will have to settle for 10.

The Transportation Security Administration bought so much baggage screening equipment so fast that millions of dollars worth of the machines are piled up unused in a Texas warehouse.

The department and its 22 components never did master the art of acquisition management, a recent House Homeland Security Committee report pointed out. Initiatives to tighten up the department's contracting practices have not been followed, Rep. Michael T. McCaul, R-Texas, chairman of the oversight, investigations and management subcommittee, said in the report.

"Consequently, poorly managed programs have resulted in capabilities that are delivered late, cost more and do less than expected," the report said.

DHS' mixed record when it comes to fielding complex, advanced technologies--particularly those in the public's eye and Congress' crosshairs--coupled with the looming federal budget crunch and possible draconian cuts in the form of sequestration, means a dearth of new high-profile programs, executives and analysts who spoke to National Defense agreed.

John Hernandez, senior aerospace and defense analyst at Frost & Sullivan, said, "Most talk about sequestration has been about DoD, but DHS is not immune. It's also an election year, which always seems to slow down government spending, and companies are somewhat apprehensive about the future."

But there are ongoing initiatives in the information technology realm within the department, insiders said. It's not glamorous, but there will be business opportunities, especially for firms that can show the department how to save money.

"It's a little bit boring. It's not as cool as drones over the border, but on the flipside ... this is not risky business. We know we can save money. We know we can help," said Paul Christman, president and CEO of Quest Software's public sector subsidiary.

The department has embarked on behind-the-scenes projects to put its cybersecurity, interoperability and computing houses in order. Seamlessly integrating its workforce so a Coast Guard officer, for example, can communicate effortlessly with a CBP agent, and have access to his or her data when needed is one of the goals. It...