Thursday, December 03, 2009

Stimulus money going to DC area contractors to figure out how to spend more of it

This story comes to us not from The Onion, but the Washington Post. Some stuff you can't just make up.

As struggling communities throughout the country wait for more help from the $787 billion stimulus package, one region is already basking in its largess: the government-contractor nexus that is metropolitan Washington.

Reports from stimulus recipients show that a sizable sum has gone to federal contractors in the Washington area who are helping implement the initiative -- in effect, they are being paid a hefty slice of the money to help spend the rest of it.

The contractors' work hardly differs from the basic operations of the federal departments hiring them. The Energy Department is paying Technology & Management Services, a Gaithersburg firm, $6.9 million to review applications for renewable energy loan guarantees. The Department of Homeland Security awarded Deloitte Consulting's Arlington branch $8.6 million to provide "program management and support" for the stimulus plan's $1 billion airport security initiative, and gave McKing Consulting, a Fairfax firm, a $1.5 million contract to review applications for fire department construction funding.

Held against the total stimulus package, the contracts represent a relatively small portion of spending. But they help explain why the Washington area is weathering the recession so well. And, as President Obama convenes a jobs summit Thursday to discuss lagging employment, the contracts raise questions about whether enough funding is getting to areas suffering the most.

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