Airport security contractors want government protection against lawsuits

Companies interested in performing private airport screening want special liability coverage from the government to protect them against protracted litigation and lawsuits should another terrorist attack occur.

Private screening companies want to be covered under the 2002 Support Anti-Terrorism by Fostering Effective Technologies Act, which was established to provide certain liability limitations for "claims arising out of, relating to, or resulting from an act of terrorism" in situations where approved anti-terrorism technologies or services are used.

The number and type of companies that apply to perform private airport screening could be drastically affected by whether the government provides the coverage, industry officials said Thursday.

"We just don't know the amount of coverage and the extent of terrorism insurance that will be available if the Safety Act doesn't cover us," said Steve Raquel, spokesman for Covenant Aviation Security. "[Another attack] could wipe out everybody, not just us. Maybe only the largest companies will be able to survive with the resources to pay off the high insurance premiums for multiple airports."

The Transportation Security Administration is developing a list of qualified private companies capable of doing passenger and baggage screening at the nation's airports, said Tom Blank, the agency's associate administrator. Airports can begin submitting applications to TSA on Friday to have private companies perform screening, which has been done by a federal workforce since the Sept. 11 terrorist attacks.

Under the "opt-out" program, TSA will select which companies do screening at airports. Each company must meet federal standards, such as providing security equal to the federal workforce and being owned by a U.S. citizen. Five airports around the country have been using private screening companies since 9/11 as part of a pilot program established by Congress.

Blank said the deadline for private companies to apply to be on the qualified vendors list will be extended, but it has not yet been decided for how long.

The Homeland Security Department has determined that TSA standard operating procedures for airport screening qualify as an anti-terrorism service under the SAFETY Act, Blank said. Therefore, any private company that follows the federal procedures can apply for coverage.

Covenant, for example, already has submitted its application for coverage. The company is currently providing security screening under the pilot program at San Francisco International Airport and Tupelo Airport in Mississippi. It has private insurance now, but wants SAFETY Act coverage in order to take over screening at more airports.

"I think it's just logical to seek that level of indemnity because if there's another terrorist incident on a plane or airport we serve, everybody will be negatively impacted," Raquel said. "I don't think any one company can sustain the level of impact that will happen with that. It's a necessity to seek it out."

DHS, however, has not made any decision on whether individual companies will be covered under the SAFETY Act, said department spokesman Kirk Whitworth. "The applications are still under review," he said.

James McNeil, owner of McNeil Technologies, said the government's decision on whether to cover private contractors will have a significant impact on the opt-out program.

"I think airports will be very reluctant to choose opt-out if the firms are not covered by the SAFETY Act. It's the only game in town," he said.

McNeil Technologies provides screening at Greater Rochester International Airport under the pilot program. McNeil said he does not think DHS will make any decisions until TSA finalizes its qualified vendors list.

Federal screening advocates, however, believe the government should not contract out for screening operations.

"We're opposed to contracting airport security to the lowest cost bidder," said Gail Dunham of the National Air Disaster Alliance. "We support a professional federal airport screening service, and they need state-of-the-art technology to do the job. We don't want the failed, fatal policies of the past."

The alliance was formed in 1995 and represents family members of victims from more than 100 aviation disasters, including 9/11. The alliance is also a member of TSA's Aviation Security Advisory Committee.

Dunham said she worries that government oversight of private screening companies will slip.

"Why should the federal government be covering insurance for these private companies?" she asked. "As long as the feds are going to be responsible and have the liability, they should do the job."

For now, though, private companies are confident that DHS will give them SAFETY Act coverage.

"We feel security screening falls under the SAFETY Act guidelines," Raquel said. "Even though there may be ambiguity at this point, there will be clarity soon."