This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Big Winners from TSA Security Rules

Stocks in this article: UIS SI LMT LLL ACN GE NOC IBM OSIS

Like any government bureaucracy, the TSA depends on billions of taxpayer dollars to fund its personnel and efforts. That has meant a gold rush of sorts among vendors large and small who provide the technology and expertise the agency requires. More than 21,000 contracts have been awarded since the agency was created.

Among the companies that have benefited from multimillion-dollar contracts since the TSA was founded in 2001 are Unisys (UIS), Siemens (SI), Lockheed Martin (LMT), L-3 Communications (LLL), Accenture (ACN), Deloitte & Touche, General Electric (GE), Northrop Grumman (NOC), BearingPoint and IBM (IBM).

Year by year, opportunities keep emerging for private enterprise to grab an even bigger piece of the pie.

Unfortunately -- for taxpayers, at least -- the agency may be spending money without proper oversight.

In March 2010, an audit by the Department of Homeland Security's Office of the Inspector General flagged procedures in place to procure and oversee private contractors for 29 support service contracts totaling $662 million from the TSA's Office of Security Technology. Reviewing the 13 highest-value of these contracts, the auditors found the agency "did not provide adequate management and oversight of acquisitions for support services for transportation security programs."

"TSA did not have reasonable assurances that contractors were performing as required, that it contracted for the services it needed, that it received the services it paid for or that taxpayers received the best value for its tax dollars," the report added.

An infamous example of the TSA wasting money via private contracts was the failed attempt to implement bomb-detecting "puffer machines."

The devices were supposed to use a blast of air on travelers to dislodge and analyze particles that might indicate the possession or handling of explosives.

In 2004, the TSA loaded up on $30 million of the machines, buying 207 from General Electric and Smiths Detection. One catch: they didn't work. Prone to dust-related malfunctions and false readings due to high humidity and the presence of jet fuel, the machines were discarded and are now collecting dust in storage facilities.

2 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs