Two big and controversial corporate names -- Halliburton and Bechtel -- could benefit from mammoth increases in federal spending on border security.
Federal and state efforts to bolster porous border security include plans for increased security infrastructure, expanded use of technology, including radar. Other plans include construction of more prison beds, and additional law enforcement operations, security roads and improved employment verification systems and ports of entry.
That will mean billions of dollars in border-related contract opportunities for defense, technology and other government contractors. A substantial number of border security contracts are expected to go to major contractors -- including big infrastructure, construction and contract management experts such as Halliburton Co. and Bechtel Corp.
"It's the big boys that will benefit from this," said Congressman Ed Pastor, a Phoenix Democrat. "Most of the big contracts are going to go out to the Halliburtons and Bechtels."
Those two companies are well-known for being politically connected and have received top infrastructure, energy and construction management contracts in Iraq. They also have critics who worry about their political ties to the Bush administration and Washington, D.C., power brokers.
Houston-based Halliburton formerly was headed by Vice President *** Cheney, and its subsidiary KBR (Kellogg Brown & Root) constructed the post-9/11 terrorist jail cells at the U.S. Naval Base at Guantanamo Bay, Cuba. KBR already won one contract to build more prison facilities to help with border enforcement.
Those two companies specialize in large infrastructure and construction-related contracts. Various border security plans call for construction of security fences and walls, new roads and equipment for the resource-challenged U.S. Border Patrol, technology surveillance applications and more law enforcement offices, checkpoints and jail cells to house illegal migrants caught crossing the border as well as drug traffickers and other smugglers.
Pastor said large contractors often get awarded comprehensive federal contracts when there is a rush to get quick movement on a matter. Those contractors then can dole out subcontracts to specialty firms and subcontractors.