Money on a String

As reported on this blog, the private contractors in the Pilot Program, now within the Screening Partnership Program, once were found to be a mere 17% more expensive than their federal counterparts. If this were the end of the story, probably the Screening Partnership Program would be done and buried since the TSA is required to keep costs similar between fed and private operations.

At least one contractor pushed back on this report, wanting to avoid a Career Decision Day. This contractor argued that the taxes paid by the contractor is money that comes back to the government, so this amount is not an actual expense to the government.

But folks, that would be a rebate. The difference is taxes are made to be avoided. One year you might be taxed, it might tick you off, and you might find a way to lower your tax obligation the next year. There is no guarantee the taxes will be paid consistently.

Sadly, though, it looks like the government bought the argument to some degree. And this bought the contractors time until TSA could raise wages enough for the contractor at SFO, Covenant Aviation Security, to undercut TSA's wages for experienced personnel in comparison. The next time they run the numbers private might come out even. Well played, ladies and gentlemen. You're "innovative" private sectors ideas haven't benefitted the public but you didn't lose the deal.

During this period, Covenant can be identified in one very public way. They've hired lobbyists to speak to Congresspersons and to speak to the General Accounting Office (source: OpenSecrets.org, listed as 'Covenant'). By law the lobbyists are required to file reports. They've been paying $15,000 a quarter for the past several years. They are using the same lobbyists (Smith Dawson Andrews) as San Francisco International Airport, maybe to save on cab fair or something.

It looks like hokey accounting must be in the mix when you talk about the Screening Partnership Program. First, note that Covenant Aviation Security has hired lobbyists. Next, note that experienced TSO's are better off federal. Finally, note that if someone is being paid to counter-balance this, why is that group doing nothing?