Order Code RL32036
CRS Report for Congress
Received through the CRS Web
Homeland Security: Federal Assistance
Funding and Business Opportunities
Updated September 12, 2003
James R. Riehl, Coordinator
Information Research Specialist
Information Research Division
Congressional Research Service ˜ The Library of Congress

Homeland Security: Federal Funding and Business
Opportunities
Summary
With the creation of the Department of Homeland Security and increased federal
spending on homeland security products and services, comes increased interest in
doing business with the federal government and obtaining federal funds. Small and
large businesses, universities, and research organizations throughout the country want
to provide the needed products and services. State and local governments desire
federal funds to assist with their homeland security needs. Generally, the larger
companies or organizations and state and local governments that have regularly done
business with the federal government in the past are familiar with the often complex
process of selling to the government or obtaining federal funds through grants.
However, smaller companies and government officials who are new to the process
may have a difficult time quickly identifying the resources and information needed
to pursue grant or contract monies.
This report provides a selection of information gateways for businesses, state
and local governments, research organizations, and others that wish to pursue
homeland security related business opportunities or grants from the federal
government. A selection of Web sites is provided for the Department of Homeland
Security, the Department of Defense, and other federal departments and agencies.
The information will assist interested persons in locating information on available
grants, contracts, or research and development opportunities with a homeland
security focus.
The first section of this report presents an overview of the market for homeland
security products and services, lists and defines the various types of federal assistance
or opportunities in homeland security, and provides some definitions relevant to the
subject. The second section of the report identifies specific federal Web “gateways,”
which provide access to detailed information on funding and business opportunities.
This report will be updated on a regular basis.

Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
What Is “Homeland Security”? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Homeland Security vs. the Department of Homeland Security . . . . . . . . . . . 2
Non-DHS Homeland Security Programs/Initiatives . . . . . . . . . . . . . . . . . . . 2
Homeland Security vs. Antiterrorism Funding . . . . . . . . . . . . . . . . . . . . . . . 2
What Is Not Included in This Report? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
The Market for Homeland Security Products and Services . . . . . . . . . . . . . . 3
Service and Product Opportunity Areas . . . . . . . . . . . . . . . . . . . . . . . . . 3
Recent Private Sector/Government Initiatives . . . . . . . . . . . . . . . . . . . . 4
Other Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Types of Funding and Business Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Federal Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Defining a Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Awards Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Getting Started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Federal Grants and Other Federal Assistance . . . . . . . . . . . . . . . . . . . . . . . . 6
Types of Federal Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Nonfinancial Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Pass-Through Funds/Subcontracting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Research and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Identifying Recipients of Federal Grant/Contract/R&D Funds . . . . . . . . . . 11
Federal Procurement Data Center (FPDC) . . . . . . . . . . . . . . . . . . . . . 11
Federal Assistance Awards Data System (FAADS) . . . . . . . . . . . . . . 12
RaDiUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Getting Started . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Department of Homeland Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Department of Defense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Department of Defense Homeland Security R&D . . . . . . . . . . . . . . . . . . . . 17
Other Federal Agency Homeland Security R&D Programs . . . . . . . . . . . . . 18
Other Federal Departments and Agencies . . . . . . . . . . . . . . . . . . . . . . . . . . 19
The Catalog of Federal Domestic Assistance . . . . . . . . . . . . . . . . . . . . . . . 21
Other Relevant CRS Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
List of Tables
Table 1. DHS Homeland Security Federal Assistance Programs . . . . . . . . . . . . 13
Table 2. DHS R&D Opportunities and Resources . . . . . . . . . . . . . . . . . . . . . . . 14
Table 3. DHS Homeland Security Business Opportunities and Resources . . . . 15
Table 4. DOD Homeland Security Federal Assistance Programs . . . . . . . . . . . . 16

Table 5. DOD R&D Contracts and Contracting Information . . . . . . . . . . . . . . . 17
Table 6. Other Federal Agency Homeland Security R&D Programs,
Opportunities, and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Table 7. Non-DHS Homeland Security Federal Assistance Programs . . . . . . . . 20

Homeland Security: Federal Assistance
Funding and Business Opportunities
Introduction
With the creation of the Department of Homeland Security (DHS) and increased
federal spending on homeland security products and services, comes increased
interest in doing business with the federal government and obtaining federal funds.
Small and large businesses, universities, and research organizations throughout the
country want to provide the needed products and services.
State and local
governments desire federal funds to assist with their homeland security needs.
Generally, the larger companies or organizations and state and local governments that
have regularly done business with the federal government in the past are familiar
with the often complex process of selling to the government or obtaining federal
funds through grants. However, smaller companies and government officials who
are new to the process may have a difficult time quickly identifying the resources and
information needed to pursue grant or contract monies.
This report provides a selection of information gateways for businesses, state
and local governments, research organizations, and others that wish to pursue
homeland security related business opportunities or grants from the federal
government. A selection of Web sites is provided for the Department of Homeland
Security, the Department of Defense, and other federal departments and agencies.
The information will assist interested persons in locating information on available
grants, contracts, and research and development opportunities with a homeland
security focus.1
What Is “Homeland Security”?
The National Strategy of Homeland Security (the Strategy) issued by the White
House [http://www.whitehouse.gov/homeland/book/nat_strat_hls.pdf]in July 2002
defined “homeland security” as “a concerted national effort to prevent terrorist
attacks within the United Stated, reduce America’s vulnerability to terrorism, and
minimize the damage and recover from attacks that do occur.” The Strategy
envisions a shared responsibility of federal, state, and local governments, the private
sector, and the American people for homeland security. Homeland security involves
(1) efforts to prevent terrorist attacks by reducing the nation’s vulnerability to
terrorist attacks, (2) efforts to minimize the damage of any terrorist attacks that occur
1 Contributors to this report included Jesús Campos (INF), Linwood Carter (INF), Eric
Fischer (DSP), Merete Gerli (INF), Jean Knezo (RSI), Gary Reynolds (INF), James R. Riehl
(INF), Carolyn Smith (INF), and Angeles Villarreal (RSI).

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despite efforts to prevent them, and (3) efforts to recover from any terrorist attacks
that may occur.
Homeland Security vs. the Department of Homeland Security
The Department of Homeland Security has primary responsibility for
maintaining homeland security. Section 101(b)(1) of the Homeland Security Act of
2002 (P.L. 107-296) states that the primary mission of the DHS is to “(A) prevent
terrorist attacks within the United States; (B) reduce the vulnerability of the United
States to terrorism; and (C) minimize the damage, and assist in the recovery, from
terrorist attacks that do occur within the United States.”
Those wishing to do business with the federal government in areas pertaining
to homeland security or seeking federal assistance relating to homeland security
should keep in mind that homeland security activities are broader than the activities
of DHS because, notwithstanding the lead responsibility of DHS for maintaining
homeland security, several other government agencies play important roles in
homeland security.
Non-DHS Homeland Security Programs/Initiatives
Examples of non-DHS homeland security programs include initiatives by the
Defense Advanced Research Projects Agency (DARPA), biodefense initiatives by
the Department of Health and Human Services (DHHS), and interagency working
groups such as the Technical Support Working Group (TSWG).
Homeland Security vs. Antiterrorism Funding
Homeland security funding is largely an extension of antiterrorism funding, with
an important distinction. Unlike antiterrorism funding, which includes monies
devoted to agencies that operate on foreign fronts such as the Department of State
and Central Intelligence Agency, homeland security funding focuses on those aspects
of government spending devoted to the prevention and response to terrorism on
American soil.
What Is Not Included in This Report?
This report is not an exhaustive listing of every possible Web access point for
information on federal grant and contract opportunities related to homeland security.
Certain opportunities may change due to congressional or regulatory activity. Others
may be one-time events that appear for only a single round of funding. Web sites and
programs may appear and disappear depending upon a department or agency’s
funding or needs, and some contract awards may be awarded directly to qualified
companies without a competitive bidding process.
In addition, this report makes no effort to list individual grant, contract, or
research and development opportunities. Such information must be obtained through
one or more of the Web resources provided.

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The Market for Homeland Security Products and Services
DHS spending on homeland security will likely cover a wide range of products
and services in such areas as airport security systems, biological and chemical agent
detection, and prevention of attacks on information systems. DHS does not have a
list of specific products and services that it is looking to acquire, but has made
references to the types of products and services that it is interested in. Industries in
which companies could potentially benefit include biotechnology, computer and
software services, telecommunications, and detection equipment technology.
Service and Product Opportunity Areas. Private companies are a key
source of new ideas and innovative technologies that would be valuable in combating
the threat of terrorism activities. DHS recently announced a partnership with the
Technical Support Working Group (TSWG) for engaging the private sector in
developing technologies and systems needed for homeland security. TSWG, a State
Department/DOD group, identifies, prioritizes, and coordinates interagency and
international research and development requirements for combating terrorism; see
[http://www.tswg.gov/tswg/home.htm]. The TSWG Web site provides information
about technology and commercial opportunities, provides information about product
availability for federal, state, and local user communities, and provides project
information to technical team members. This information is useful for companies
looking for contracting opportunities related to homeland security because it
identifies the projects federal agencies are focusing on. Among others, the TSWG
currently outlines the following as areas of interest:
! Chemical, biological, radiological, and nuclear countermeasures:
products and services may include medication and vaccines to treat
outbreaks of diseases such as smallpox, anthrax, or botulism;
development
of
antidotes
for
possible
disease
outbreaks;
development of new technologies for detecting hazardous biological
and chemical agents.
! Explosive detection: products and services may include development
or purchase of new detection and diagnostic devices such as
handheld detectors, personnel screening portals, checked baggage
and parcel screening; developing more effective canine/handler
teams through improved training programs and canine selection and
breeding; development of new technologies for marking plastic
explosives to make them easier to detect.
! Infrastructure protection technology: products and services may
include developing technologies and methodologies for detection,
response, and alert capabilities to counter cyberterrorism; developing
standardized methodology and decision aid tools for vulnerability
analysis and enhanced protection of the nation’s critical
infrastructure.
! Physical security technology: products and services may include the
development of new techniques for building construction that will
result in better protection of people and facilities from terrorist bomb

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attacks; improvement in explosive detection technology; advanced
sensor technologies to provide improved perimeter and interior
intrusion detection capabilities.
! Personnel protection: products and services may include vehicles
with improved safety and performance; improved transparent armor
with lower weight and greater reliability against threats; improved
protective measures against sniper attacks.
Recent Private Sector/Government Initiatives. DHS has emphasized the
importance of the role of technology in homeland security and the need to create
close partnerships with the private sector to develop and implement technologies.
The following two paragraphs describe two initiatives recently mentioned by Al
Martinez-Fonts, the DHS Special Assistant to the Secretary for the Private Sector, in
which the private sector has an important role and could provide potential business
opportunities.2
The Container Security Initiative (CSI) overseen by the new Bureau of Customs
and Border Protection (CBP) has the goal of protecting containerized shipping from
exploitation by terrorists. The initiative involves the use of pioneering nonintrusive
container screening technology to label containers entering the country as “high-risk”
or “low-risk” at their port of origin. DHS estimates that Customs inspects 3% or less
of the 6 million containers, meaning that up to 97% of the containers are not
screened. The program was launched in January 2002 and is in various stages of
implementation at major ports around the world. A second stage of the initiative will
expand CSI to additional ports in Europe and Asia. The eligibility requirements of
Phase 2 require that a country have or be in the process of acquiring non-intrusive
inspection equipment, or large x-ray-type systems, and radiation detection equipment
to conduct security. While the purchase of the x-ray systems and other detection
technology will be made by individual countries, the CBP can provide the names of
manufacturers for the CSI country to pursue procuring equipment.
Another program is the Customs-Trade Partnership Against Terrorism (C-
TPAT). More than 2,900 companies are participating. C-TPAT is a cooperative
effort between the business trade community and the CBP to help ensure effective
security processes of cargo entering the United States while improving the flow of
trade. Businesses will be required to check physical, procedural, and personnel
security, and provide training to key personnel through the C-TPAT validation
process. DHS has been working with a number of trade associations to develop
industry-wide security standards.
For businesses that have useful products or
services for this process, there may be benefits in becoming a partner.
Other Opportunities. Other agencies or departments at the federal, state, and
local levels of government may have opportunities for companies that produce or
provide goods or services related to homeland security.
For example, local
communities may be interested in procuring protective gear and communication
2 Department of Homeland Security, Press Room Speeches and Statements, “Remarks by
Al Martinez-Fonts to the Electronic Industries Alliance,” May 6, 2003.

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devices in the event of an emergency. There may be opportunities for industry
groups to partner with federal agencies to develop strategies or new technologies. In
2002, the U.S. Department of the Treasury worked collaboratively with financial
services industry groups to develop a sector strategy, called National Strategy for
Critical Infrastructure Assurance, that discusses additional efforts necessary to
identify, assess, and respond to sector threats. The strategy presents a framework for
planning and implementing private sector action.
This kind of private sector
cooperative effort with the government may lead to future business contracting
activities.
Some federal agencies that may have contracting opportunities for
companies include, but are not limited to, the following: the Department of Defense,
the Department of Health and Human Services, the Treasury Department, and the
Department of Energy.
Business and marketing opportunities with the Department of Defense,
however, are determined by DOD’s national security mission and it should be noted
that contract processes may not be comparable with those of other federal entities.
The Office of the Under Secretary of Defense for Acquisition, Technology, and
Logistics recommends the following preparatory advice to companies who want to
take advantage of the DOD contracting or acquisition process:
! Identify the product, service, or concept you are attempting to sell to
DOD by perusing the Federal Supply Class or Service (FSC/SVC)
codes at [http://www.dlis.dla.mil/h2] and North American Industry
C l a s s i f i c a t i o n
S y s t e m
( N A I C S )
C o d e
a t
[http://www.census.gov/naics].
! Businesses should obtain a Dun and Bradstreet or DUNS number at
[http://www.dnd.com].
Also, it is mandatory that any DOD
contractor must be registered in the Centralized Contractor
Registration (CCR) System, a database designed to collect and
maintain relevant procurement and financial transaction information
at [http://www.ccr.gov].
Small businesses in particular should
register with the Small Business Administration (SBA) Procurement
Marketing
and
Access
Net
(PRO-Net)
system
at
[http://www.sba.gov].
! Become familiar with DOD contracting procedures by examining the
Defense
Federal
Acquisition
Supplement
(DFARS)
at
[http://www.acq.osd.mil/dp/dars], and the Federal Acquisitions
Regulations (FARS) at [http://www.arnet.gov/far].

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Types of Funding and Business Opportunities
Federal Contracts
Businesses and producers may bid for contracts to supply specific goods and
services to the federal government. These may include furnishing the government
with actual products such as office supplies or furniture, the construction of federal,
buildings, providing services such as staffing and operating cafeterias, and enhancing
equipment and training for emergency first-responders.
Defining a Contract. The General Services Administration (GSA) defines
a “contract” as a mutually binding legal relationship, obligating the seller to furnish
the supplies or services and the buyer to pay for them. It includes all types of
commitments that obligate the government to an expenditure of appropriated funds.
The commitments are written, unless otherwise authorized. Contracts may include,
but are not limited to the following instruments: awards, job orders or task letters,
letter contracts, orders (such as purchase orders, under which the contract becomes
effective by written acceptance or performance), and bilateral contract modifications
(FAR 2.101). This definition, along with extensive regulations concerning federal
acquisitions of supplies and services, is found in the Federal Acquisition Regulation
(FAR)
, issued by the GSA. The text of the FAR documents is available from the
following Web site: [http://www.arnet.gov/far/], or from the Code of Federal
Regulations
, 48 CFR 2, also available on the Web. Contracts do not include grants
and cooperative agreements covered by the U.S. Code, at 31 USC 6301.
The GSA provides general information on the process of doing business with
the government at its Web site at [http://www.gsa.gov/], under the “Selling to the
Government”section.
More specific information on assistance to small and
disadvantaged businesses can be found at [http://www.gsa.gov/smallbusiness]. This
site provides links to information on obtaining a GSA schedule contract and lists of
contacts for small business support.
Awards Process. Federal contracts may be awarded in many ways, including
agency solicitations and acceptance of unsolicited proposals. Also, businesses may
register to participate in the GSA Federal Supply Service Multiple Award Schedules
program,
with
m o r e
i n f o r m a t i o n
a v a i l a b l e
f o r
vendors
at
[http://apps.fss.gsa.gov/contractorguide].
Getting Started.
The Federal Business Opportunities Web site
[http://www.fedbizopps.gov] provides a single site for federal procurement
opportunities over $25,000. Via this Internet portal, government buyers can post
business opportunities and commercial vendors seeking federal markets for their
products and services can search, monitor, and retrieve opportunities solicited by the
entire federal contracting community.
Federal Grants and Other Federal Assistance
Hundreds of grants, loans, and other domestic assistance programs for various
purposes are available from federal departments and agencies, including new

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programs and federal funding to enhance homeland security. These programs are
listed and described in the Catalog of Federal Domestic Assistance (CFDA). The
CFDA is available and searchable via the Web at [http://www.cfda.gov].
Types of Federal Assistance
Grants. Grants are generally considered desirable by applicants since they are
an outright award of funds. Federal grants fall under the following categories:
! Formula Grants: allocations of money to states or their subdivisions
for activities of a continuing nature not confined to a specific
project. They include block grants to states and local governments.
! Project Grants: funding, for fixed or known periods, of specific
projects or the delivery of specific services or products, including
fellowships,
scholarships,
research
grants,
training
grants,
traineeships, experimental and demonstration grants, evaluation
grants, planning grants, technical assistance grants, survey grants,
construction grants, and unsolicited contractual agreements. They
can also be referred to as discretionary or categorical grants or
funding.
! Direct Payments for Specified Use: financial assistance provided
directly to individuals, private firms, and other private institutions
to encourage or subsidize a particular activity.
! Direct Payments with Unrestricted Use: financial assistance
provided directly to beneficiaries who satisfy federal eligibility
requirements with no restrictions as to how the money is spent.
Loans. Since loans must be repaid, they are often viewed by applicants as less
desirable than grants. However, with the reduction of federal funds available for
grants and the increasing level of competition for such funds, loans are often the only
form of assistance available. Federal loans consist of two types:
! Direct Loans: lending of federal funds for a specific period of times,
with a reasonable expectation of repayment; may or may not require
the payment of interest.
! Guaranteed/Insured Loans: programs in which
the federal
government makes an arrangement to indemnify a lender against
part or all of any defaults by those responsible for repayment of
loans.
Insurance. Some federal programs provide financial assistance to assure
reimbursement for losses sustained under specified conditions. Coverage may be
provided directly by the federal government or through private carriers and may or
may not require the payment of premiums.

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Nonfinancial Assistance. Several types of federal programs offer assistance
to qualifying entities that does not involve the transfer of funds. These programs fall
into the following categories:
! Sale, Exchange, or Donation of Property and Goods: programs
which provide for the sale, exchange, or donation of federal real
property, personal property, commodities, and other goods including
land, buildings, equipment, food, and drugs.
! Use of Property, Facilities, and Equipment: programs which provide
for the loan of, use of, or access to federal facilities or property
wherein the federally-owned facilities or property do not remain in
the possession of the recipient of the assistance.
! Provision of Specialized Services: programs which provide federal
personnel to directly perform certain tasks for the benefit of
communities or individuals.
! Advisory Services and Counseling: programs which provide federal
specialists to consult, advise, or counsel communities or individuals,
to include conferences, workshops, or personal contacts.
! Dissemination of Technical Information: programs which provide
for the publication and distribution of information or data of a
specialized technical nature frequently through clearinghouses or
libraries.
! Training: programs which provide instructional activities conducted
directly by a federal agency for individuals not employed by the
federal government.
! Investigation of Complaints: federal administrative agency activities
that are initiated in response to requests, either formal or informal,
to examine or investigate claims of violations of federal statutes,
policy, or procedure.
! Federal Employment: programs which reflect the government-wide
responsibilities of the Office of Personnel Management in the
recruitment and hiring of federal civilian agency personnel.
Pass-Through Funds/Subcontracting
In many cases, a grant or contract is not awarded directly to the final recipient
of the funds. The money may be “passed through” from the primary recipient of the
funds to the entity that actually provides the product or service or administers the
program. For instance, a federal grant may be awarded to a state government, which
then spends the money, within the parameters of the particular program, by
distributing the funds to other levels of governments (county, city, township, etc.) in
the state. Block grants are federal funds that are provided to states, and then passed
through to local agencies, for a wide variety of purposes, such as community

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development or law enforcement. Recipients have discretion in identifying problems
in the functional area and in using federal funds to address those problems.
For most block grants, Congress prescribes formulas in the authorizing
legislation for distributing the funds. For a few grants, Congress gives authority for
the method for distribution of funds to federal executive agencies, such as with the
discretionary portion of the Byrne law enforcement grant program. Through formula
or block grants, the federal government allocates funds to states or their subdivisions,
which are competitively awarded and administered by them for projects and needs
in local jurisdictions.
To obtain these funds, local grantseekers must become familiar with state and
local agencies that receive such federal awards, and learn how to apply for them. The
Catalog of Federal Domestic Assistance program descriptions under “Information
Contacts” indicate whether state and regional contacts for the program are available.
These appear in a CFDA Appendix available via the CFDA Web site at
[http://www.cfda.gov/public/cat-app4-index.htm]. CFDA also lists state contacts for
many states under the State Single Point of Contact (SPOCs) section available at
[http://www.whitehouse.gov/omb/grants/spoc.html].
A similar situation exists with contracts. A federal homeland security contract
may be so large that a smaller business would have great difficulty in providing the
products or services required to meet the terms of the contract. However, the larger
company that received the contract may be using subcontractors to provide some of
the products and services that it needs to fulfill the contract. In these cases, the
primary contractor must be contacted to determine the availability of subcontracting
opportunities.
There is no centralized federal system that tracks the availability of
subcontracting opportunities. However, notices of business opportunities and of
contract awards are posted on the Federal Business Opportunities Web site, at
[http://www.fedbizopps.gov]. A businessperson can search for opportunities by
agency name, such as Department of Homeland Security. The results of a search
yield postings of solicitations or contracts, with summary and contact information.
In the vendors’ section, businesspersons may register at this Web site to receive
automatic notices of business opportunities with federal agencies.
Research and Development
Federal government funding for research supports “systematic study directed
toward fuller scientific knowledge or understanding of the subject studied.”3 This
work may be basic research, which is intended to produce “knowledge or
understanding ... of fundamental aspects of phenomena and of observable facts
without specific applications ... in mind.” Applied research is intended to produce
3 Definitions in this paragraph are based on National Science Foundation, Federal Funds
for Research and Development: Fiscal Years 2000, 2001, and 2002
, NSF 02-321,
Definitions section. NSF’s definitions are derived from OMB Circular A-11. The latest
version is from 2002. See section 84 – 8.

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“knowledge or understanding necessary to determine means by which a recognized
and specific need may be met.” Funding for development supports systematic use
of the knowledge gained from research to produce “useful materials, devices,
systems, or methods, including design and development of prototypes and
processes.” Test and Evaluation (T&E) may be supported as part of development.
Federally-funded demonstration is “intended to prove or to test whether a technology
or method does in fact work” and may include validation, engineering and
manufacturing development, management and support, and operational system
development. Federally-funded research and development (R&D) funding excludes
quality control, routine product testing, and production; collection of general-purpose
statistics, mapping; experimental production, routine monitoring and evaluation of
an operational program, and training of personnel.
Funding. R&D may be conducted intramurally (by federal government
personnel and agencies) or extramurally (by nonfederal personnel at industrial firms,
universities and colleges, other nonprofit institutions, or in federally funded R&D
centers) with funds awarded by grant, cooperative agreement, or contract.
Grants are used to fund R&D when
! federal resources are transferred to a performer [typically, a state or
local government, academic institution, or other nonprofit
performer] to conduct work that serves a “public purpose of support
or stimulation authorized by law” [including production of
knowledge], instead of providing direct benefit, in terms of property
and knowledge, only for the U.S. government; and
! substantial involvement is not expected between the federal agency
and the recipient when carrying out the activity contemplated in the
grant agreement.4
Cooperative agreements are like grants except that substantial involvement is
expected between the federal agency and the recipient when carrying out the
contemplated activity (31 U.S.C. 6305). A Cooperative Research and Development
Agreement (CRADA) is an agreement between one or more federal laboratories and
one or more nonfederal entities (including for profit), when the federal laboratory
intends to provide personnel, services, facilities, equipment, intellectual property, or
other resources with or without reimbursement (but not funds) to nonfederal entities,
and the nonfederal entities provide funds, personnel, services, facilities, equipment,
intellectual property, or other resources toward the conduct of specified R&D efforts
which are consistent with the missions of the laboratory. The agreement does not
involve a procurement contract or cooperative agreement as those terms are used in
sections 6303, 6304, and 6305 of Title 31 (15 U.S.C. 3710a).
4 Based on 31 U.S.C. 6304.

CRS-11
A contract is used if
! the funding agency seeks to fund R&D [that is, to purchase a
specific R&D-related item, property or service] for the direct benefit
or use of a U.S. government agency, or
! the agency decides that using a procurement contract is appropriate
for the project.5
Federal specifications may be rigorous and detailed, and the contractor may
need to satisfy specific agency specifications and requirements. Universities and
colleges are the single largest performer of federally funded research, which is
supported largely by grants, and about 52% of federally funded basic research is
conducted in universities and colleges.
Seventy percent of federally funded
development is conducted by industry and is funded largely by contracts and other
funding instruments (NSF 02-321).
Identifying Recipients of Federal Grant/Contract/R&D Funds
Those seeking federal funds via grant, contract, or research and development
opportunities may have some interest in identifying recipients of previously awarded
actions. While local media sources may report information on companies that have
been awarded a particular federal contract or a state/local government entity that
received a large federal grant, such reporting is usually limited. Some federal
systems exist that can assist with identifying the recipient(s) of federal grant,
contract, and research and development funds. While none of these resources
provides information on an up-to-the-minute basis, they may be useful in providing
a picture of the types of recipients that received funding in the past.
Some
departments and agencies provide information on the recipients of grant funds at their
Web sites.
Federal Procurement Data Center (FPDC). The Federal Procurement
Data System (FPDS) was established by the Office of Federal Procurement Policy
Act (P.L. 93-400). It is an automated system operated by the General Services
Administration that contains detailed information on federal procurement activity.
Collection of data began on October 1, 1978. FPDS is required to collect and
compile data only on individual contracts exceeding $25,000. FPDS searching can
be done by several different data elements, including agency, date, contractor name
and address, city, state, county, kind of contract action, method of solicitation, type
of business, etc. Searching by congressional district is not available, and the system
does not include any information on subcontracting actions. Searches can be tailored
to specific fields and are available to the public for a fee. The FPDS has established
a Web site [http://www.fpdc.gov] at which some procurement data is available.
FPDS publishes an annual summary report titled the FPDS Federal
Procurement Report.
Copies are available via the FPDS’s Web site at
[http://www.fpdc.gov/fpdc/fpr02.htm].
The FY2000 edition was the first one
5 Based on 31 U.S.C. 6303.

CRS-12
available in full text via the Web.
This Report presents overviews of the
procurement activity of the federal government as a whole, federal procurement
activity in each state, and procurement activity of each federal department and agency
for a particular fiscal year.
The FPDS also offers a DVD (digital video disc) product that contains data for
multiple fiscal years.
Information on electronic products may be found at
[http://www.fpdc.gov/fpdc/otherprod.htm].
Federal Assistance Awards Data System (FAADS).
The Federal
Assistance Awards Data System (FAADS) is an automated system established by the
Federal Program Information Act (P.L. 95-220) and is administered by the Bureau
of the Census. It contains detailed information on federal monies awarded through
the domestic assistance programs listed in the Catalog of Federal Domestic
Assistance
, a listing of federal programs which provide financial and nonfinancial
assistance or benefits to the public. The FAADS system records contain agency
name, CFDA program number, fiscal year, state, county, city or town, zip code,
program recipient, etc.
Data are available starting with FY1981.
Data by
congressional district, with limitations, is available through the FAADS system.
However, FAADS is not a searchable database that can be directly queried.
Although large amounts of data may be downloaded to a computer from the Census
Web site, a search of the contents may not be conducted at the site. While some data
is viewable at the Web site, the data files must be downloaded, and users must make
use of their own software to manipulate or search the files. The Bureau of the Census
has developed a Web page at [http://www.census.gov/govs/www/faads.html] for
distribution of FAADS data via the Internet, starting with FY1996.
RaDiUS. RaDiUS (Research and Development in the United States) is a
comprehensive database on R&D activities and resources of the federal government.
The database was developed by the Rand Corporation in cooperation with the
National Science Foundation (NSF).
The system does not include classified
information. Licenses (some of which involve a fee) to use the database are available
to employees and contractors of the federal government, employees and students at
U.S. educational institutions, and other eligible members of the general public.
Background information on the RaDiUS system may be obtained at Rand’s Web site
at [http://www.rand.org/scitech/radius]. Information on obtaining licenses to use the
system may be found at [http://radius.rand.org/radius/getting_started.html].

CRS-13
Getting Started
Department of Homeland Security
DHS agencies administer several federal assistance programs. These programs
include block grants to state administering agencies, discretionary grant programs
administered by DHS agencies, and funding programs established by legislative
action. Table 1 lists several of these programs and Web addresses for program
information from the pertinent DHS agencies. The current availability of funding for
each of these programs varies, so those interested should contact the respective DHS
agency for details. For additional information on DHS federal funding see the
section below entitled “Other Relevant CRS Products.”
Table 1. DHS Homeland Security Federal Assistance Programs
Agency
Program
Program Information on the Web
Office of Domestic
First Responder
[http://www.ojp.usdoj.gov/fundopps.htm]
Preparedness (ODP)
Office of Domestic
Urban Areas
[http://www.ojp.usdoj.gov/fundopps.htm]
Preparedness (ODP)
Security
Initiative
Program Grants
Office of Domestic
FY2003
[http://www.ojp.usdoj.gov/fundopps.htm]
Preparedness (ODP)
Domestic
Preparedness
Training and
Technical
Assistance
Program
United States Fire
Assistance to
[http://www.usfa.fema.gov/inside-usfa/
Administration
Firefighter
grants.cfm]
(FIRE Act)
Grant Program
Transportation
Port Security
[https://www.portsecuritygrants.dottsa.net/]
Security
Grants
Administration
(TSA)
In addition, DHS administers a number of research and development
opportunities and resources. Table 2 presents a selection of Web sites that will
provide information on these opportunities and resources. For additional information
on DHS R&D opportunities, see CRS Report RS21617, Homeland Security
Extramural R&D Funding Opportunities in Federal Agencies
.

CRS-14
Table 2. DHS R&D Opportunities and Resources
Program Information
Agency/Organization
Program
on the Web
Homeland Security
HSARPA will be the
[http://www.dhs.gov/dhspublic/di
Advanced Research
primary source of
splay?theme=27&content=47]
Projects Agency
extramural R&D
(HSARPA)
funding in the Science
and Technology
Directorate.
Office of University
Homeland Security
[http://www.dhs.gov/dhspublic/in
Programs
Centers of Excellence.
terapp/press_release/press_release
DHS plans to establish
_0220.xml]
several university
centers by the end of
2004 through a
competitive process.
Technical Support
Broad Area
[http://www.tswg.gov/tswg/home/
Working Group
Announcements. DHS
home.htm]
(TSWG)
is using TSWG to
assist in identifying
technologies for rapid
prototyping under
periodic broad area
announcements (BAA).
Science and
Unsolicited R&D
[http://www.dhs.gov/interweb/ass
Technology
Proposals. These
etlibrary/dhs_website_unsolprop.
Directorate
proposals are handled
doc]
by TSWG. See link for
specific information.
U.S. Coast Guard
Various RDT&E
[http://www.rdc.uscg.gov/]
Research and
activities in support of
Development Center
Coast Guard homeland
security and other
missions.
Transportation
R&D activities to
[http://www.tsa.gov/public/index.
Security
improve current
jsp]
Administration
security technologies.
The DHS Web site provides information for businesses wishing to get involved
with the department in several different ways, including general information on
acquisition policy and regulations, and rules for unsolicited proposals. The Web site
states that some of the procedures of doing business with DHS agencies are still
being developed.

CRS-15
Table 3. DHS Homeland Security Business Opportunities
and Resources
Web Site or E-mail
Agency
Business Information
Address
Department of
Provides link to
[http://www.dhs.gov/dhspubl
Homeland Security
“Business”
ic/display?theme=37]
(DHS)
information, DHS
acquisition offices, federal
policies and regulations.
Federal Business
Serves as the single point
[http://www.fedbizopps.gov]
Opportunities, GSA
of entry for federal
procurement opportunities
over $25,000.
Office of Small and
Promotes the use of small
Kevin Boshears
Disadvantaged Business
and disadvantaged
Utilization (OSDBU), in
businesses in compliance
Kevin.Boshears@dhs.gov
DHS
with federal laws and
(202) 772-9792
regulations.
Simplified Acquisition
Provides information on
Valerie Veatch
Contacts, DHS
procurements up to
$100,000.
valerie.veatch@dhs.gov
Pro-Net (Procurement
Provides information on
[http://www.pro-net.sba.gov]
Marketing and Access
procurement opportunities
Network), Small
matching individual
Business Administration
company profiles that are
registered.
Department of Defense
The vast majority of DOD contracts are awarded by DOD field organizations,
or specific mission-oriented agencies with the department. Businesses seeking
homeland security contracts should be aware that the DOD contracting process is
very tightly controlled and regimented, often requiring prospective contractors to be
precertified or obligated to apply for security clearances with the Defense Security
Service
(DSS),
National
Industrial
Security
Program
(NISP)
at
[http://www.dss.mil/isec/index.htm].
Because the limited number of available DOD homeland security contracts may
initially be awarded to large or traditional prime contractors, small businesses may
expand their access by investigating potential procurement opportunities available
within the secondary market of subcontracting with DOD prime contractors. A list
of all major DOD prime contractors arranged by state and including a point of contact
for the Small Business Liaison Officer in each company is located at
[http://www.acq.osd.mil/sadbu/publications/subdir/index.html]. Specific agencies
or organizations within the DOD that may be able to assist businesses seeking
homeland security contracts are listed in Table 3.

CRS-16
Table 4. DOD Homeland Security Federal Assistance Programs
Program Information
Agency
Program
on the Web
Office of the Under
DODBusOpps.com was
[http://DODbusopps.com]
Secretary of Defense for
developed to help vendors
Acquisition, Technology,
find business in the
and Logistics
Department of Defense by
USD(AT&L)
accessing an electronic
portal serving as a single
point of entry for the
different agency sites.
Technical Support
The TSWG uses the
[http://www.tswg.gov/ and
Working Group (TSWG)
Broad Agency
https://www.bids.tswg.gov
Announcement
/tswg/bids.nsf/]
Information delivery
system (B.I.D.S.) as a tool
for dissemination and
receipt of data related to
active contract
solicitations.
Office of Small and
The SADBU operates
[http://www.acq.osd.mil/sa
Disadvantaged Business
programs and creates and
dbu/]
Utilization (SADBU)
disseminates information
that will provide small
and disadvantaged or
minority businesses with
opportunities to compete
for DOD contracts.
Deputy Under Secretary of
Advanced Concept
[http://www.acq.osd.mil/ac
Defense for Advanced
Technology
td/]
Systems & Concepts
Demonstration (ACTD).
DUSD (AS&C)
DOD created the ACTD
program in 1994 to assist
the acquisition process by
expediting the transition
of maturing technologies
from private sector
developers to potential
military customers.
Office of the Under
Defense Electronic
[http://www.defenselink.m
Secretary of Defense for
Business Program Office
il/acq/ebusiness/]
Acquisition, Technology,
facilitates the acquisition
and Logistics
process by expediting
USD(AT&L)
electronic
business-to-business
transactions using
established commercial
standards and best
practices.

CRS-17
Program Information
Agency
Program
on the Web
Defense Logistics Agency
Procurement Technical
[http://www.dla.mil/db/pro
(DLA)
Assistance Centers
curem.htm]
Program (PTAP) are
located in most states as a
local resource available to
provide assistance to
small business firms in
marketing products to the
DOD.
Department of Defense Homeland Security R&D
At this juncture the vast majority of research and development money for
homeland security will be coming from the Department of Homeland Security
(DHS), and only a small amount of funding for homeland defense will be coming
from the Department of Defense (DOD). Potential contractors need to know that
contracting with DOD requires knowledge of and adherence to a number of complex
procedures, forms, and standards, as mentioned above.
As yet there is no one place where homeland security/defense R&D contracting
opportunities are listed centrally. Potential contractors have to search for homeland
security/defense oriented R&D opportunities by going to more general R&D sites and
scanning the listings.
Places to look for potential DOD R&D contracts and contracting information
on the Internet are given in Table 5.
Table 5. DOD R&D Contracts and Contracting Information
Agency/Organization
Program
Program Information on the Web
Office of the Secretary
Handbook on
[http://www.acq.osd.mil/sadbu/publica
of Defense
Selling to the
tions/selling/main.htm]
Military
Defense Advanced
High technology
[http://www.darpa.mil/body/dobdar.ht
Research Projects
R&D projects
ml]
Agency (DARPA)
DOD Small Business
Focus on small
[http://www.sbccom.apgea.army.mil/b
Innovation Research
businesses
usops/sbir.htm]
(SBIR) program
Defense Electronic
Searchable Web
[http://DODbusopps.com/default.asp]
Business Program
site focusing on
Office
E-Commerce and
E-Business within
DOD

CRS-18
Agency/Organization
Program
Program Information on the Web
Center for
Public-private
[http://www.ccatsandiego.org]
Commercialization of
R&D partnership
Advanced Technology
funded by DOD,
(CCAT)
which had been
soliciting
innovative
technologies
related to defense
and homeland
security
Other Federal Agency Homeland Security R&D Programs
Homeland security-related research and development programs are conducted
and supported by federal agencies other than the Department of Homeland Security.
Some of these programs are managed by offices dedicated specifically to supporting
homeland security R&D.
Others are funded through regular R&D support
procedures. The programs listed in Table 6 support R&D funding for governmental,
academic, and industrial performers and use contracts or grants, as appropriate.
Several agencies have more than one relevant program. For additional information
on other R&D opportunities at federal agencies, see CRS Report RS21617,
Homeland Security Extramural R&D Funding Opportunities in Federal Agencies.
Table 6. Other Federal Agency Homeland Security R&D
Programs, Opportunities, and Resources
Program Information on
Agency
Program
the Web
U.S. Dept. of
The Homeland Security
[http://www.usda.gov/ho
Agriculture (USDA)
Council’s R&D focuses on
melandsecurity/homeland.
food supply and agricultural
html]
production
[http://www.ars.usda.gov/
Business/Business.htm]
Department of
Fire safety standards,
[http://www.nist.gov/publi
Commerce, National
materials, cybersecurity,
c_affairs/factsheet/homela
Institute of Standards
threat detection and
nd.htm#tools]
and Technology (NIST)
protection, tools for law
enforcement, and emergency
For NIST grants
response
programs, Joyce Brigham,
(301) 975-6329
Dept. of Energy, Office
Various programs dealing
[http://www.sc.doe.gov/gr
of Science
with counter terrorism. See
ants/grants.html]
separate laboratories’ Web
sites for their opportunities

CRS-19
Program Information on
Agency
Program
the Web
Dept. of Health and
Biodefense Research at the
[http://www.niaid.nih.gov
Human Services
National Institute of Allergy
/biodefense/about/niaids_r
(DHHS), National
and Infectious Diseases
ole.htm]
Institutes of Health
(NIAID) on agents of
(NIH)
bioterrorism and basic
[http://www.niaid.nih.gov
biology, immunology,
/biodefense/research/defa
vaccines, drugs, and
ult.htm]
diagnostics
Dept. of Justice,
Public safety improvement
[http://www.ojp.gov/nij/sc
National Institute of
programs include homeland
iencetech/highlights.htm]
Justice (NIJ)
security
Technology Program
[http://www.ojp.usdoj.gov
/nij/sciencetech/projects.h
tm]
Dept. of Transportation
Research and Special
[http://www.rspa.dot.gov/
(DOT)
Programs agency R&D on
contracts.html]
pipeline safety
and homeland security
[http://www.volpe.dot.gov
/procure/current.html#rfp]
Procurement information for
the Volpe Center
[http://www.dot.gov/DOT
agencies.htm]
Additional security-related
R&D procurement
[http://www/dot.gov/Perf
information
Plan2004/homelandperf.ht
ml]
Environmental
Buildings, water, and rapid
[http://www.epa.gov/ordn
Protection Agency
risk assessment in
hsrc/]
(EPA), Homeland
partnership with other EPA
Security Research
and other government
avel.andy@epa.gov
Center
laboratories, and other
performers
Schultz.Patricia@epa.gov
National Science
Data mining, national
[http://www.nsf.gov/od/lp
Foundation (NSF)
hazards, ecology of
a/news/media/01/nsf_resp
Homeland Security Page
infectious diseases, microbial
onse.htm#grants]
genome sequencing, critical
infrastructure, computer
[http://www.nsf.gov/pubs/
security, programs with the
2003/nsf03569/nsf03569.
intelligence community, and
htm]
small business innovation
[http://www.eng.nsf.gov/s
bir/homeland.htm]
Other Federal Departments and Agencies
Federal assistance for homeland security is also available through federal
government agencies other than DHS and DOD. The table below lists agencies other

CRS-20
than DHS that provide federal assistance which can be used to fund homeland
security activities, the relevant programs they administer, and Web addresses for
program information from the pertinent agencies. The current availability of funding
for each of these programs varies, so those interested should contact the respective
agency for details.
Table 7. Non-DHS Homeland Security Federal
Assistance Programs
Agency
Program
Program Information on the Web
Department of
Extramural Fire
[http://www.bfrl.nist.gov/866/extra
Commerce, Fire
Research Grants
muralprogram.htm]
Research Division
Program
Department of Justice,
Edward Byrne
[http://www.ojp.usdoj.gov/BJA/gra
Bureau of Justice
Memorial State and
nt/index.htm]
Assistance
Local Law
Enforcement
Assistance (Byrne
Formula Grant
Program)
Department of Justice,
Local Law
[http://www.ojp.usdoj.gov/BJA/gra
Bureau of Justice
Enforcement Block
nt/index.html]
Assistance
Grant (LLEBG)
Department of Justice,
Antiterrorism and
[http://www.ojp.usdoj.gov/fundopp
Office for Victims of
Emergency
s.htm]
Crime
Assistance Program
for Terrorism and
Mass Violence
Crimes
Environmental
Clean Water State
[http://www.epa.gov/owm/cwfinanc
Protection Agency
Revolving Fund
e/index.htm]
(CWSRF)
Department of Health
Smallpox
[http://www.cdc.gov/od/oc/media/p
and Human Services,
Vaccination
ressrel/r030122b.htm]
Centers for Disease
Program
Control and Prevention
(CDC)
National Science
Small Business
[http://www.eng.nsf.gov/sbirspecs/
Foundation (NSF)
Innovation
Program/program.htm ]
Research (SBIR)
and Small Business
Technology
Transfer (STTR)
Programs

CRS-21
The Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance, which describes some 1,500
grants, loans, and nonfinancial assistance programs of the federal government, lists
most homeland security programs under the Department of Homeland Security
[http://www.cfda.gov/public/browse_agy.asp?agy_id=97&st=1]. For information on
additional federal first-responder and terrorism preparedness programs still
administered by other federal departments and agencies, the CFDA Web page
Assistance Programs Relating to Recovery [http://www.cfda.gov/911.htm] may help.
Other Relevant CRS Products
CRS Report RS21617. Homeland Security Extramural R&D Funding Opportunities
in Federal Agencies, by Genevieve J. Knezo.
CRS Report RL31227. Terrorism Preparedness: Catalog of Selected Federal
Assistance Programs, coordinated by Ben Canada.
CRS Report RL31475. First Responder Initiative: Policy Issues and Options, by
Ben Canada.
CRS Report RS21302. Assistance to Fire Fighters Program, by Lennard G. Kruger.
CRS Report RL31465. Protecting Critical Infrastructure from Terrorist Attack: A
Catalog of Selected Federal Assistance Programs, by John Moteff.
CRS Report RL31615. Homeland Security: The Department of Defense’s Role, by
Steve Bowman.
CRS Report RL31802. Appropriations for FY2004: Department of Homeland
Security, coordinated by Paul M. Irwin and Dennis W. Snook.
Conclusion
The process of identifying and pursuing a federal grant, contract, or research and
development opportunity in the area of homeland security can be very difficult.
Although no single resource will necessarily get every business, university, research
organization, or state or local government interested in pursuing homeland security
funds to exactly the information or program listing that they require, the gateways
provided in this report provide the starting points for their search. Once the gateways
are entered, the process has only just begun. Program listings must be pursued, grant
applications must be prepared, contract proposals must be written, certain
requirements must be met, all before any funding is available.