Washington Techway

Eye know about you

By Brian Krebs
July 15 & 29, 2002 

Anti-terrorism laws have sparked new interest in biometrics technology by federal contractors

Federal contractors with a strong presence in the region are scrambling to secure a foothold in the biometric industry, a sector that is expected to get a big boost from the latest anti-terrorism laws.

Under legislation signed by President Bush in May, all visas or passports from foreign visitors must be imprinted with biometric identifiers — such as fingerprints or eye scans — by October 2004.

A year later, all American ports of entry will need to be outfitted with machines capable of reading and processing the new cards.

The law also calls for the creation of a sophisticated name-matching system dubbed "Chimera," that U.S. officials could use to screen visa applications for would-be terrorists.

The public sector, primarily the federal government, accounted for 70 percent of the $523 million in biometric industry revenue last year, according to International Biometric Group, a research and consulting group in New York. IBG forecasts the market will grow to $1.9 billion by 2005, boosted by security initiatives launched in the wake of the terrorist attacks last Sept. 11 and increased commercial applications.

The federal government's "entry-exit" programs have sparked intense interest among the major information technology integrators.

Bethesda-based Lockheed Martin has teamed up with International Business Machines to bid on work; AT&T is partnering with Raytheon, and Computer Sciences Corp. has teamed with Electronic Data Systems. Northrop Grumman also is reportedly putting together a team.

Ben Gianni, CSC's vice president for homeland security, says his company opted to work with EDS, one of its biggest competitors, to tackle the task of building an interoperable database that would be available to all federal law enforcement, intelligence and immigration agencies.

The law also requires that by 2003 all planes, ships, and other transportation carriers provide electronic lists of their passengers and cargo 48 hours before entering the United States.

"Interoperability is a pretty big job, so we think there's room for more than one big company for this time sensitive task," Gianni says. "We also believe that being able to accommodate and work with industry — from cruise lines to the trucking industry — is going to be critical."

While many of the large information technology contractors are experienced at integrating biometric solutions, experts say work is likely to trickle down to small- and mid-sized companies that specialize in biometrics.

One such contender is Orkand, a Falls Church company that manages the application process for the Immigration and Naturalization Service's Border Crossing Card program, which relies on fingerprint technology to expedite border crossings for qualified Mexican and U.S. residents.

The company also manages visa processing at 250 U.S. State Department consulates worldwide.

Orkand has teamed with Advanced Information Assurance Solutions, a small biometrics shop in Falls Church, to develop a process for embedding digital fingerprint or facial scan data into a electronic bar code small enough to fit on the back of an ID card or visa.

The team is being courted by at least four different systems integrators vying for the prime slot in the entry-exit contract, according to Peter Rath, Orkand's information assurance program manager.

"We feel we've got a good shot at playing a big role in this project," he says. "We cover a very niche area and subject matter expertise that the big guys just don't have."

The entry-exit program presents something of a bittersweet opportunity for the biometrics industry, which has often viewed system integrators as a barrier to more widespread deployment of biometric technologies.

Richard Norton, executive director of the International Biometric Industry Association, says major IT integrators have largely been on the sidelines watching smaller companies develop their products, waiting for the right time to invest.

"This is exactly the sort of driver that the biometric industry has long been expecting to propel growth," Norton says.

The Transportation Security Administration is considering the use of biometric enabled identity cards for all transportation workers. The agency also is looking into a "trusted traveler" program that could include the use of biometrics to allow pre-screened passengers to speed through airport security checkpoints.

Lawmakers on Capitol Hill also are debating legislation that would beef up the security of state driver's licenses with biometric or smart card technology.

Even with the many new government biometric programs in the works, private sector deployment will eclipse government demand by 2003, as the average consumer becomes more familiar with the new technologies and businesses seek stronger methods of e-commerce authentication, says IBG partner Raj Nanavati.

"This kind of deployment raises the profile of the technology, which improves the overall market for this industry," he says.