Markland Technologies (fka MKLD)

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Markland Technologies Testifies at Congressional Hearing on Tax Incentives for Homeland Security Related Expenses

RIDGEFIELD, CT, Jul. 22, 2004 (MARKET WIRE via COMTEX) -- Markland Technologies, Inc. (OTC BB: MRKL) (http://www.marklandtech.com/), an integrated homeland security company, is pleased to provide the full testimony provided by Mr. Ken Ducey, President of Markland Technologies, to Congress on July 21, 2004. The hearing was to provide testimony with regard to legislation HR 3562, designed to provide tax incentives to promote private sector Homeland Security initiatives.

The Subcommittee on Rural Enterprises, Agriculture and Technology of the Committee on Small Business U.S. House of Representatives invited the Homeland Security Industries Association to testify. Markland is a Board member of the Homeland Security Industries Association (HSIA) and previously testified on September 29, 2003 at the Congressional Hearing of the House Government Reform Committee's Subcommittee on National Security and Emerging Threats for HSIA.

The July 21, 2004 Testimony of Mr. Ken Ducey, Markland Technologies on Behalf of the Homeland Security Industries Association (HSIA):

"Mr. Chairman, members of the Subcommittee, is a pleasure to appear before you today. Accompanying me today is Bruce Aitken; Chairman of Homeland Security Industries Association (HSIA). HSIA was organized in November 2001, and formally launched over a year ago. We have over 400 members, ranging from multi-billion dollar defense contractors, to mid-sized firms to start-ups and incubator firms. Our panel today reflects this cross section.

In my oral presentation today, I will summarize the views and recommendations of HSIA. We ask that our complete written statement, which will be filed separately, be included in the record of this proceeding. The Association's views represent the consensus of HSIA members but not the particular views of any one member. In general, HSIA strongly supports legislation such as HR 3562 to provide tax incentives to promote private sector Homeland Security initiatives.

Since 9/11, America has begun a fundamental transformation from an open society to one that must continually weigh the security of its citizens and corporate assets from terrorist attack. In the immediate aftermath of 9/11, the Administration and the Congress acted with vigor. Unfortunately, partisan politics in the Legislative Branch held up rapid increases in HLS funding, as that Congress did not release FY 2003 funding until nearly half way through the current fiscal year. This meant that the substantial increases in HLS funding that had been anticipated last fall -- for First Responders and others -- did not begin to be released until 17 months ago. Since then, the Administration has moved quickly but First Responders and others involved in HLS still have many needs, for which funding has just begun. As a consequence, it is understandable that frustrations have been felt among First Responders throughout the country and among the companies who hope to serve them, including HSIA members.

America is an open society. That is the strength of our democracy and the source of our vulnerability. Two years ago, on the first anniversary of 9/11, the Washington Post analyzed America's vulnerability to terrorist attack and gave us an overall grade of "C-" for HLS. Of course, this is unacceptable. America faces a challenge, which is likely to take years to accomplish. Therefore, we repeat a call we made in Congressional Staff briefings in January and February 2003 for an end to partisanship in HLS.

Our concerns about the HLS fall into three categories: (a) federal procurement; (b) state and local procurement and (c) private sector initiatives.

With respect to federal HLS procurement by DHS and other federal agencies with related procurements, we believe that the Administration has done a commendable job in successfully launching the new Department in a very short time, as well as in meeting its deadline to federalize airport passenger and baggage screening. In addition, we commend the Department for its so-called "Industry Days." DHS has gone to great and commendable lengths to outreach to the federal contracting community to share with firms DHS's vision, acquisition plans and updates about its programs.

However, we have communicated to Congress on other hearings constructive suggestions to help improve this system in the future. We believe that the incidence of sole-source contracts, and sole-source delivery orders off the GSA Schedule, should decrease.

Today we address the need for tax incentives for Homeland Security related expenses. In the April 6, 2003 Sunday New York Times, an article appeared which predicted that by 2008, annual HLS spending would increase from he 2003 annual level of about $60 million to $200 billion annually. And the article predicted that 2/3 of this spending would be in the private sector. Yet the bet estimates we have seen suggest that since 9/11, private sector spending for HLS has increased only 4%. HSIA worked with a group organized by the American National Standard Institution (ANSI) from January 2004 to May 2004. The purpose of this group was to develop a recommendation for the 9/11 commission to help promote development of voluntary private sector HLS standards. We accomplished this and made a recommendation that NFPA 1600 serve as a model or framework for HLS private sector standards.
This led to a discussion about how to induce the private sector to invest in HLS measures and equipment. This is a critical issue since the vast majority of U.S. critical in the structure is privately owned. The consensus of our group, which included over 40 organizations, was that the 9/11 commission should recommend to Congress tax incentives. Not only for private companies investing in HLS initiatives, but also for municipalities.

In conclusion, we strongly support the committee's efforts on this important subject. We would be happy to answer any questions. Thank you."

Ken Ducey
Markland Technologies
About HSIA:
The Homeland Security Industries Association (HSIA) is a non-profit corporation established in August 2002. Our mission is to provide a mechanism for government and the private sector to coordinate on a wide range of homeland security issues.
The four principal goals of HSIA are: Monitoring and analyzing of legislation, regulation and related hearings concerning homeland security; Coordinated identification and dissemination to members of information regarding federal, state and local requests for proposals (RFP) related to homeland security procurement; Development of position papers reflecting industry positions and concerns that may be shared with federal and local official; and Networking among industry representatives.

About Markland Technologies
Markland Technologies, Inc is committed to helping secure America by providing innovative emerging technologies and expert services to meet the country's needs to protect our people, our borders and our infrastructure assets. The Company is a Board member of the Homeland Security Industries Association (http://www.hsianet.org/).

Contact:
Markland Technologies, Inc.
http://www.marklandtech.com/

ECON
Dawn Van Zant
866-730-1151
[e-mail]

Trevor Ruehs
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SOURCE: Markland Technologies


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SUBJECT CODE: Government:National
Government:Security (law enforcement, homeland etc)
Professional Services:Accounting, Audit and Tax