Defense contractors say federal agencies’ lack of reciprocity for each other’s security clearances is creating gross inefficiencies and costing taxpayers money, according to a survey by the TechAmerica contractor organization.

While reciprocity was ordered in the 2004 intelligence reform law, the survey of TechAmerica member firms found that 96% had trouble transferring employees with security clearances among contracts.

The Homeland Security Department was the worst in terms of reciprocity, cited by 74%, while intelligence agencies were cited by 63%, and Justice, 33%. The Defense Department was one of the best in reciprocity, with only 7% citing problems there.

“Federal agencies are not adhering to existing clearance reciprocity laws, resulting in massive inefficiencies in time, effort and money,” said Greg Keeley, vice president of defense, intelligence and homeland security policy at TechAmerica.

Of those surveyed, 33% had 101 to 1000 employees with clearances, while 26% had 100 or fewer and 41% had more than 1,000.

Among the good news reported by respondents was that 52% reported processing time had improved. Even so, 44% said it took 180 to 270 days to get a top secret-SCI-level security clearance, and 33% said it took 90 to 180 days.