**Congressional Budget Submission**

Fiscal Year 2008

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DEPARTMENT OF JUSTICE

**BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES\
**

February 2007

# Table of Contents

Page No.

**I. Overview** 1

**II. Summary of Program Changes** 16

**III. Appropriations Language and Analysis of Appropriations Language**
18

IV\. Decision Unit Justification

A. Firearms

1.  Program Description 20

2.  Performance Tables 27

3.  Performance, Resources, and Strategies 30

    a.  Performance Plan and Report for Outcomes

    b.  Strategies to Accomplish Outcomes

    c.  Results of Program Assessment Rating Tool (PART) Reviews

B. Arson and Explosives

1.  Program Description 40

2.  Performance Tables 46

3.  Performance, Resources, and Strategies 49

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a.  Performance Plan and Report for Outcomes

b.  Strategies to Accomplish Outcomes

c.  Results of Program Assessment Rating Tool (PART) Reviews

C. Alcohol and Tobacco

1.  Program Description 52

2.  Performance Tables 55

3.  Performance, Resources, and Strategies 57

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a.  Performance Plan and Report for Outcomes

b.  Strategies to Accomplish Outcomes

c.  Results of Program Assessment Rating Tool (PART) Reviews

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V.  **Exhibits**

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A.  Organizational Chart

B.  Summary of Requirements

C.  Program Increases by Decision Unit

D.  Resources by DOJ Strategic Goal/Objective

E.  Justification for Base Adjustments

F.  Crosswalk of 2006 Availability

G.  Crosswalk of 2007 Availability

H.  Summary of Reimbursable Resources

I.  Detail of Permanent Positions by Category

J.  Financial Analysis of Program Increases/Offsets

K.  Summary of Requirements by Grade

L.  Summary of Requirements by Object Class

M.  Status of Congressionally Requested Studies, Reports, and
    Evaluations

**I. Overview of the Bureau of Alcohol, Tobacco, Firearms and
Explosives**

######## A. Summary of Budget Request

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) requests
\$1,013,980,000 and 4,933 full time equivalents (FTE) for FY 2008. The
request includes \$995,023,000 and 4,909 FTE for current services and
\$18,957,000 and 24 FTE for program improvements in the salaries and
expenses account. ATF's budget request supports Administration and
Department priorities to:

-   Reduce violent crime and illegal gang activity

-   Assist state and local law enforcement organizations

-   Prevent terrorist acts

-   Enhance information technology to advance intelligence sharing among
    law enforcement at all levels and the intelligence community

-   Improve financial and human resource management

Beginning in FY 2007, electronic copies of the Department of Justice's
congressional budget justifications and Capital Asset Plan and Business
Case exhibits can be viewed or downloaded from the Internet using the
Internet address: <http://www.usdoj.gov/jmd/2008justification/>.

**B. Mission**

ATF is a principal law enforcement agency within the Department of
Justice (DOJ) dedicated to preventing terrorism, reducing violent crime,
and protecting our Nation.  The men and women of ATF perform the dual
responsibilities of enforcing federal criminal laws and regulating the
firearms and explosives industries.  The combined efforts of special
agents and industry operations investigators allow ATF to effectively
identify, investigate, and recommend for prosecution violators of the
federal firearms and explosives laws; additionally, this teamwork
enables ATF to ensure that licensees are operating within established
laws and regulations. This coordination and cooperation between
enforcement and industry operations personnel makes ATF a unique law
enforcement agency.

ATF works both independently and through partnerships to investigate and
reduce crime involving firearms and explosives, acts of arson, and
illegal trafficking of alcohol and tobacco products. ATF accomplishes
these objectives by working together with industry groups,
international, state and local governments, and other federal agencies.

ATF's expertise in investigating firearms, explosives, and arson crimes
is a particularly valuable asset in the Administration's efforts to keep
our citizens and neighborhoods safe. Our technology resources and
knowledge in these areas are available to every level of government to
assist in preventing, detecting, prosecuting, and combating criminal
activity. To complete these missions, we use information sharing
partnerships with other domestic and international law enforcement
agencies and provide accurate and timely intelligence support relating
to ATF's core mission.

**[DOJ Strategic Goal 1: Prevent Terrorism and Promote the Nation's
Security]{.underline}**

Objective 1.1: Prevent, disrupt and defeat terrorist operations before
they occur.

The terrorist attacks of September 11, 2001 highlighted the importance
of ATF's role in enforcing the firearms and explosives laws to prevent
and deter their use by criminals and terrorists. Like the Transportation
Security Administration, the U.S. Customs and Border Protection, and the
Bureau of Immigration and Customs Enforcement, ATF's mission has a
multi-dimensional impact. ATF's regulation and enforcement efforts deter
weapons transfers to criminals and suspect end-users, interrupt supply
chains, and disrupt grey and black market weapons sales.

ATF is among five primary DOJ components responsible for
counterterrorism efforts articulated in the President's National
Implementation Plan.  ATF's investigative and inspection programs have a
multi-dimensional impact that includes detecting and deterring terrorist
use of firearms and explosives.  ATF is the only federal agency with the
statutory authority to license and inspect firearms dealers, approve
import permits, and register National Firearms Act (NFA) firearms and
destructive devices. Through regulation of firearms and explosives
commerce and through its investigative and criminal enforcement
activities, the agency works to prevent the acquisition of firearms and
explosives by those prohibited by law and the use of these commodities
in acts of terrorism.  ATF also disrupts potential sources of funding
for terrorist groups by preventing the illegal trafficking of alcohol
and tobacco products, whose proceeds have been traced to terrorist
organizations. 

In support of the President's National Response Plan, ATF leads and
administers Emergency Support Function 13 (ESF-13), the federal public
safety- and security-related response to terrorist or other catastrophic
incidents. ATF works with the Federal Emergency Management Agency (FEMA)
and state and local emergency preparedness agencies to identify and fill
potential gaps in law enforcement and security capabilities that may
arise during a significant incident (e.g., natural disaster, terrorist
event). ESF-13 coordinates planning and public safety and security
resources in an interagency environment. 

An ATF supervisory special agent serves as the Deputy Director for the
Terrorist Explosive Device Analytical Center (TEDAC). The TEDAC is
supported by special agents from both FBI and ATF, intelligence
analysts, explosives specialists, and other personnel with specialized
training, who assist in the technical and forensic exploitation of
improvised explosives devices (IED) triggering mechanisms used in Iraq
and Afghanistan. ATF leads the Department in creating and maintaining
explosives databases that identify components used in terrorist IED
triggering devices. The TEDAC database, International Terrorist Bombing
Information System (ITBIS), houses international terrorist bombing
information and IED technical data from Iraq and Afghanistan. The
database stores IED information and components which are used to
identify similarities between devices and components collected by
federal agencies, international governments, and the military. This
electronic comparison quickly identifies previously used electronic
components to determine whether two or more IEDs have the same
"signature" or common origin, thus providing leads for further
investigative or preventive work. The explosives components database
will also be utilized in conjunction with our coalition partners (United
Kingdom, Australia, etc.) to create an international network of IED
information, centralized at TEDAC, to suppress global terrorist
bombings.

ATF participates in a number of additional efforts and activities that
support the Attorney General\'s counterterrorism efforts, including
participation in the Joint Terrorism Task Forces (JTTF) and the Law
Enforcement Information Sharing Program (LEISP) networks with both
investigative and intelligence resources.

The United States Bomb Data Center (USBDC) has standardized the way DOJ
captures and shares global bomb and arson incident data. ATF developed
the Bomb Arson Tracking System (BATS) to allow law enforcement agencies
to track and share information to help solve arsons and bombings and
determine national trends and patterns. DFuze, ATF's international
bombing database, allows international law enforcement agencies to
compare and exchange information on explosives incidents. DFuze was
developed in partnership with the New Scotland Yard Bomb Data Centre in
the United Kingdom. DFuze and BATS share explosive and bombing data with
authorized federal, state, local, military and tribal partners. Because
of ATF's specialization in explosives investigation, the Department of
Defense (DOD) requested that ATF special agent certified explosives
specialists and explosives enforcement officers provide technical
support for operations in Iraq.

ATF trains explosives detection canines (EDC) for other federal, state,
local, and international partners, the latter in partnership with the
State Department's Office of Anti-Terrorist Assistance. Approximately
100 ATF-trained EDCs are deployed across the United States, and 400 more
operate in 16 foreign countries, safeguarding borders and checkpoints
and engaging in preventive screening measures in the host countries.
These teams have contributed to the location of hidden explosives and
weapons in enforcement actions conducted by host governments against
terrorist groups.

ATF has established partnerships in the explosives arena with the
Metropolitan Police Service, New Scotland Yard, Anti-Terrorist Branch.
New Scotland Yard and TEDAC have agreed to place a New Scotland Yard
Anti-Terrorism detective in the TEDAC to create an information exchange
between the United States and the United Kingdom to prevent future
terrorist bomb attacks.

**[DOJ Strategic Goal 2: Enforce Federal Laws and Represent the Rights
and Interests of the American People]{.underline}**

> Objective 2.1: Reduce the threat, incidence, and prevalence of violent
> crime, including crimes against children
>
> Objective 2.5: Enforce federal statutes, uphold the rule of law, and
> vigorously represent the interests of the United States in all matters
> for which the Department has jurisdiction

ATF's strategic plan has three strategic goals based on criminal
enforcement, regulatory mandates, and ATF's jurisdiction and expertise
in firearms, arson and explosives, and alcohol and tobacco.

The majority of ATF's programmatic resources are devoted to the
Administration's Project Safe Neighborhoods (PSN) initiative, which
investigates violent firearms offenders. Often these offenders are gang
members and armed narcotics traffickers, and ATF has extensive
investigative experience with these criminals. Through the creation of
grassroots partnerships in communities where firearms crime threatens
the quality of life, PSN acts as a catalyst in developing localized
strategies that vigorously enforce existing firearms laws.

ATF maintains extensive expertise in investigating gangs. ATF's strategy
in combating gangs is to target the most egregious violent criminals by
relying on partnerships with local law enforcement, appropriate
investigative strategies, and the application of federal statutes. These
statutes range from the Racketeer Influenced and Corrupt Organizations
Act (RICO) to the Armed Career Criminal statute.

ATF employs a comprehensive law enforcement approach, including
prevention, community outreach, training, intelligence gathering and
analysis, and advanced investigative techniques, and coordinates their
resources to ensure that they are used in those communities most
impacted by gang violence. One recent ATF gang investigation into the
illegal activities of MS-13 in Maryland resulted in the arrest and
indictment of 23 subjects on RICO charges, with predicate acts including
seven homicides and numerous other shootings, assaults and other violent
crimes in aid of racketeering. Judicial action is ongoing for many of
these defendants.

ATF participates in the National Gang Targeting, Enforcement, and
Coordination Center (GangTECC), the Department's new national anti-gang
task force comprised of multiple DOJ components. The Center facilitates
the exchange of law enforcement strategies and operations across agency
lines.  In keeping with the Attorney General's direction, GangTECC
represents a unified federal effort to help disrupt and dismantle the
most violent gangs in the United States.  GangTECC assists in initiating
and coordinating gang-related investigations and prosecutions,
developing a refined understanding of the national gang problem,
proposing appropriate countermeasure strategies, and supporting the
National Gang Intelligence Center. The Deputy Attorney General has
directed ATF and other DOJ components to assign agents to GangTECC. An
ATF special agent is currently assigned as the Deputy Director of
GangTECC.

The Violent Crime Impact Team (VCIT) initiative, a focused component of
PSN, pursues violent criminals to reduce the occurrence of homicide and
firearms-related violent crime through the use of geographic targeting,
proactive investigation, and prosecution of those responsible.
Multi-agency enforcement teams identify, target, disrupt, arrest, and
prosecute the "worst of the worst" criminals. These efforts produce
long-term reductions in firearms violence rather than a mere shift of
the violence to adjacent neighborhoods.

ATF identifies, investigates, and recommends the prosecution of a wide
range of firearms offenders: career criminals who use firearms,
individuals who are actively involved in armed violent criminal
activities or armed drug trafficking, and other categories of prohibited
persons in possession of firearms (e.g., convicted felons, fugitives
from justice, illegal aliens, and individuals convicted of certain
domestic violence misdemeanors or subject to qualified domestic violence
restraining orders). ATF also deters the diversion of firearms from
lawful commerce into the illegal market. Through firearms trafficking
interdiction efforts, ATF reduces violent crime by decreasing the
availability of illicit secondary market firearms and by recommending
prosecution for those who illegally supply firearms to those prohibited
from possessing them (e.g., felons, gang members, juveniles). Violent
gang members---a primary enforcement concern---are often involved in
firearms trafficking, both in furtherance of drug trafficking activities
and diverting weapons to commit firearms-related crimes.

ATF enforces the import provisions of the Arms Control Export Act, the
Gun Control Act and the National Firearms Act and works closely with the
Department of Homeland Security to monitor imports and exports of
firearms to ensure that their international movement is consistent with
law. ATF is the only DOJ component actively involved in efforts to
combat the illicit manufacturing of and trafficking in firearms, their
parts and components, and ammunition and explosives in a number of
international forums. These efforts, which include the negotiation of
legally and politically binding agreements and model regulations,
prevent the diversion and misuse of dangerous commodities by terrorists.
Additionally, ATF participates in the DHS's Interagency Incident
Management Group and the International Law Enforcement Academy (ILEA)
program, which encourage cooperation among participating countries and
other U.S. Government agencies.

ATF's National Tracing Center (NTC) is the Nation's only firearms
tracing facility, tracing crime guns for federal, state, local, and
international law enforcement to provide investigative leads. ATF
collects, analyzes, and disseminates criminal intelligence information
for the purpose of reducing violent crime. Through crime gun analysis,
ATF supports federal, state, local and international law enforcement
with this information to identify sources of crime guns.

ATF ensures that the firearms and explosives industries comply with
federal laws and regulations and provides safety information to the
industries and the public. These regulatory compliance activities
promote community, law enforcement, and industry partnerships, and
ATF-sponsored programs to reduce public safety risks. ATF protects the
public from criminal acts through the vigorous application of its
explosives and arson specialized assets**,** including special agent
certified explosives specialists (CES), special agent certified fire
investigators (CFI), technical specialists that serve as explosives
enforcement officers (EEO), and laboratories with a range of forensic
capabilities.

Additionally, ATF's National Response Team (NRT) investigates fire and
explosives incidents. The NRT brings together all of ATF's explosives
and arson expertise and experience to work alongside state and local
officers. Since its inception in 1978, the NRT has responded to more
than 600 fire and explosion incidents, including the September 11th
Pentagon site, the Alfred P. Murrah Federal Building site in Oklahoma
City, and the 1994 bombing of the World Trade Center.

ATF is the federal agency responsible for administering and enforcing
both the regulatory and criminal provisions of federal laws pertaining
to explosives. The Safe Explosives Act of 2002 (SEA) reflected
Congressional intent to close a loophole in the regulation of explosives
commerce. The SEA expanded the scope of the federal explosives controls
that have been administered by ATF since 1970 by placing controls on the
intrastate movement of explosives and mandating background checks on
employees of explosives licenses and those who acquire explosives in
order to prevent prohibited persons from gaining access to explosive
materials.

ATF's enforcement of explosives laws and regulations helps prevent
thefts and the acquisition and use of explosives for criminal or
terrorist purposes. ATF also administers voluntary programs, operated in
partnership with the Department of Homeland Security (DHS) and The
Fertilizer Institute, to educate fertilizer retailers on the need to
maintain secure storage of ammonium nitrate and to report suspicious
activity to ATF.

ATF enforces federal criminal statutes that address the diversion of
alcohol and tobacco products in avoidance of federal, state, local,
and/or foreign tax revenue, including the Contraband Cigarette
Trafficking Act. Organized crime groups and individuals with ties to
terrorist organizations increasingly engage in illegal trafficking of
tobacco products. The proliferation of large-volume trafficking across
international borders and in interstate commerce to avoid taxes provides
increased funding to terrorist organizations and traditional criminal
enterprises. This trafficking also robs the federal and state
governments of important tax-based funding. Current investigations have
identified instances of terrorist groups forming alliances with tobacco
traffickers to generate monies used to support their organizations and
activities. Diversion activities often generate tremendous cash profits
that are laundered and used to further other unlawful schemes, such as
narcotics and firearms trafficking.

**Program Assessment Rating Tool**

ATF's arson and explosives programs were selected for evaluation as part
of the Office of Management and Budget (OMB) FY 2006 Program Assessment
Rating Tool (PART) process. OMB assessed the effectiveness of ATF's
arson and explosives programs at 82 out of 100 possible points in FY
2005.

OMB also evaluated ATF's firearms enforcement program as part of the FY
2005 PART process. OMB assessed the effectiveness of ATF's Firearms
Programs at 77 out of 100 possible points in FY 2004.

ATF's firearms, arson, and explosives programs have received positive
overall assessments for purpose, resource utilization, strategic
planning, program management, and program results. ATF's firearms
decision unit will be reassessed in FY 2007.

ATF is working with the Department and OMB to develop a long-term
performance measure for the firearms program during the FY 2007 PART.

**Spectrum Relocation - \$48,024,000**

In December 2004, the Congress passed and the President signed the
Commercial Spectrum Enhancement Act (CSEA, Title II of P.L. 108-494),
creating the Spectrum Relocation Fund (SRF) to streamline the relocation
of federal systems from certain spectrum bands to accommodate commercial
use by facilitating reimbursement to affected agencies of relocation
costs.  The Federal Communications Commission has auctioned licenses for
reallocated federal spectrum, which will facilitate the provision of
Advanced Wireless Services to consumers. Funds are made available to
agencies in fiscal year 2007 for relocation of communications systems
operating on the affected spectrum.  These funds are mandatory and will
remain available until expended, and agencies will return to the SRF any
amounts received in excess of actual relocation costs. 

**C. Performance Challenges**

### 

**Firearms Enforcement**

There are a number of challenges facing ATF's firearms enforcement
program: ensuring coordination of gang enforcement efforts with other
federal agencies, providing sufficient resources to address firearms
violators who commit violent crimes and supply weapons to criminals,
responding to requests for additional assistance from state, local, and
tribal law enforcement partners, and providing necessary infrastructure
so that investigators can effectively enforce the federal firearms laws.

ATF actively participates in the multi-agency DOJ Anti-Gang Budget
Committee and several related subcommittees, which ensure that agencies'
gang enforcement efforts are coordinated for maximum effectiveness.
Additionally, ATF's FY 2008 request addresses many of the challenges
mentioned above, enabling the Bureau to create focused firearms
trafficking investigative teams to stop the supply of illegal firearms.

### 

**Explosives Regulation and Enforcement**

The United States produces or imports approximately 6 billion pounds of
explosive materials annually. Each year, 8 billion pounds of ammonium
nitrate are produced, and 50 percent is used for explosives. Illegal use
of these materials threatens our nation's public safety. ATF continually
monitors explosives licensees who have committed a public safety
violation noted during previous inspections. The provisions of the SEA
of 2002 mandate a field inspection on all original and renewal
applications for licenses or user permits. Because licenses and most
permits expire every 3 years, ATF is mandated to perform one inspection
every 3 years. ATF uses existing resources to ensure that all violations
noted in such inspections are appropriately resolved. ATF will also
continue to investigate all reported explosives thefts, respond to and
investigate bombings and other explosives incidents, and assist state,
local, and other federal agencies with explosives-related issues.

### In conjunction with the Technical Support Working Group, ATF conducts significant research and development activities that could have a global impact in the war on terrorism, including the development of explosives detection instruments and research into the characterization of enhanced novel explosives (ENE). ENEs, manufactured from currently uncontrolled materials, are similar to commercial high explosives. Criminals and terrorists worldwide (including those in Moscow, Bali, Morocco, and Israel) have used ENEs. Terrorist training manuals include ENE formulations that equal or exceed the effects of the explosives compound trinitrotoluene (TNT). 

### 

### Internet Trafficking 

Illegal trafficking of ATF-regulated commodities through the Internet
continues to grow. In recent years, criminals engaged in illegal
activity use computer media as tools more frequently. Cybercrime uses a
computer and the Internet to steal a person's identity, sell contraband,
stalk victims, or disrupt operations with malevolent programs and
viruses. To effectively target cybercrime, ATF established law
enforcement information sharing partnerships with federal, state, local,
and international agencies, as well as with industry groups and the
scientific community. These partnerships greatly enhance ATF's ability
to collect, analyze, and disseminate domestic intelligence to fight
alcohol and tobacco diversion.

The illicit sale of tobacco products via the Internet continues to grow
rapidly and causes a substantial loss of excise tax revenue to federal,
state, and foreign governments. ATF utilizes laws such as the Contraband
Cigarette Trafficking Act and wire fraud and money laundering statutes
to interdict illicit interstate cigarette distribution via the Internet
and the mail. Although ATF has been successful in identifying and
prosecuting Internet firearms traffickers in the past, a recent study
indicates that additional in-depth research and analysis is warranted.
ATF will increase both computer forensic capabilities and technological
efforts to ensure the acquisition, preservation, retrieval,
cross-reference, and presentation of data that is processed and stored
electronically.  Through intelligence information sharing and
collaboration with law enforcement partners, ATF will utilize
analytical, investigative and computer forensics techniques to identify
and link previously unknown targets.

### Information Technology 

ATF faces the information technology (IT) challenge of improving the
flow of critical intelligence data to first responders. On August 11,
2004, the Attorney General directed that ATF maintain all consolidated
arson and explosives incident databases. ATF maintains relevant data and
shares all appropriate arson and explosives incidents with federal,
state, and local agencies, including first-responder partners. By
centralizing this data and intelligence information, ATF will reduce
redundancy and provide access to information currently housed in
compartmentalized systems.

To address this IT challenge, ATF works with the Department and its
components to share information efficiently and seamlessly with other
law enforcement partners. The Law Enforcement Information Sharing
Program (LEISP) enhances the ability of agents and industry operations
investigators to share investigative information (BATS, Arson and
Explosives Incident System \[AEXIS\], Firearms Integration Technology
\[FIT\], International Bomb Data Center Working Group Portal \[IBDCWG
Portal\], GangNet, National Field Office Case Information System
\[N-FORCE\], Secret Internet Protocol Router Network \[SIPRNET\], and
DFuze (ATF's international bomb incident database) to link and solve
complex cases and acts of terrorism that involve explosives, arson or
firearms. The consolidation of explosives incident databases ensures
that first responders and intelligence organizations have one definitive
source for explosives incident information, explosive device data,
trends, and the identities of known offenders.

ATF consolidates information gathering assets in order to more
effectively share intelligence regarding the criminal use of firearms
and explosives and funds raised illegally from the diversion of
regulated commodities such as tobacco. ATF has achieved significant
progress in providing BATS and DFuze to various domestic and
international law enforcement organizations as information and
intelligence gathering initiatives. An e-Gov award for the BATS
initiative recently recognized ATF's success. These systems, components
of ATF's Arson and Explosives National Repository, provide first
responders with access to critical investigative information as it
develops. Through ATF's relationship with the Department of State,
Mexico, Colombia, and the United Kingdom currently share information on
bombings and destructive devices. Additionally, ATF provides explosives
countermeasures and intelligence support to a multitude of special
events, including the Olympics, the Democratic and Republican National
Conventions, the International Monetary Fund Conferences, and the Free
Trade Area of the Americas (FTAA). One key initiative involves role
clarification for field intelligence groups and their interface with ATF
Headquarters, as well as communications enhancements that provide
real-time intelligence and operational security support.

The continuing development of the National Field Office Case Information
System (NFOCIS) application suite enhances ATF's ability to collect,
disseminate, manage, and analyze data. NFOCIS provides ATF with an
integrated and centralized data management solution that allows for
real-time monitoring and oversight of all criminal enforcement and
industry regulatory operations activities in the field. The system also
provides a platform for analysis of case information to aid in the
identification and tracking of criminal enterprises.

The success of the Nation's efforts to combat domestic terrorism and
other criminal threats requires the intelligence components of DOJ to
coordinate their collection, production, and dissemination of
intelligence information. ATF directly supports LEISP as a means to
accomplish this important objective.

######## Safety and Security of ATF Employees 

ATF continues to promote the continuity of operations and the continuity
of Government through expansion and enhancement of ATF's alternate
operating sites and capabilities as recommended by Federal Preparedness
Circular 65. The centralization of ATF's security operations and the
upgrades of systems to incorporate technological advances in equipment
will enable ATF to proactively mitigate current threats. Further, the
mandate requiring a secure identity and access control credential for
all ATF employees in accordance with Homeland Security Presidential
Directive 12 and the implementation of initiatives from the Intelligence
Reform and Terrorism Prevention Act of 2004 (regarding improvements to
the security clearance process) ensure that sensitive work will be
performed in an environment of integrity and safety.

**[Strategies for the President's Management Agenda]{.underline}**

ATF is fully committed to the President's Management Agenda (PMA), which
seeks to implement best practices, improve federal management, and hold
agencies accountable for results. The PMA consists of five
Government-wide goals: strategic management of human capital,
competitive sourcing, improved financial performance, expanded
e-Government, and budget and performance integration. In addition to the
five Government-wide goals, ATF is also subject to the federal real
property asset management initiative.

In order for ATF to operate effectively, we must have a solid
administrative infrastructure that uses efficient processes and provides
high-quality services to our customers. A comprehensive program has been
developed to monitor ATF's progress in each of the PMA goals and to
ensure that taxpayer money is used wisely. Below are some of the efforts
underway in each of the PMA goal areas.

**Strategic Management of Human Capital.** Human capital is ATF's most
important asset. In accordance with the standards for success developed
by the President's Management Council, the Bureau developed a Human
Capital Strategic Plan. ATF created a Human Capital Council, consisting
of Deputy Assistant Directors and the Deputy Chief Counsel, to ensure
that human capital issues are addressed at the highest level. The Human
Capital Council now implements the human capital strategy throughout
ATF.

In early FY 2006, ATF restructured its Human Resources Division (HRD) in
order to provide more timely and efficient service to its customers. By
creating and implementing the use of standardized position descriptions
at the GS-1811-14 level, the HRD streamlined its position description
library from 34 supervisory GS-1811-14 position descriptions to one
generic position description. Currently, a generic GS-1811-15
supervisory position description is in the final approval stage. When
approved, this will replace 16 stand alone position descriptions with
one GS-1811-15 supervisory position description. To speed up the hiring
process, the HRD continues to work with various directorates in the
Bureau to develop job-specific questions for the automated Quick Hire
Recruitment System.  

An external Human Resources consultant has reviewed the ATF Special
Agent Assessment Center and concluded that "ATF's promotion process is
technically sound and meets the most rigorous legal and professional
standards for a valid process." This year, 275 agents completed the
assessment center process -- the largest group to date. ATF developed an
action plan to ensure that ATF special agents are effectively prepared
for first-line and mid-level management positions. The career plan
identifies key training and development initiatives and provides for a
common understanding of career development activities. The Bureau will
also implement e-performance within the agent population to facilitate
the on-line preparation and completion of performance appraisals.

Employee safety is an extremely high priority at ATF. ATF recently
recognized that exposure to high levels of nitroglycerin (NG) and
ethylene glycol dinitrate (EGDN), which may be present in some
explosives magazines, pose a number of health risks for industry
operations investigators (IOI).  To address these risks, ATF added IOIs
to the Bureau's Respiratory Protection Program, which already includes
special agents and selected employees who are subject to exposure risks
at hazardous materials (HAZMAT), post-arson, and post-explosives
scenes.  ATF works to ensure that IOIs promptly receive appropriate
medical screening, training, fit testing, and equipment.

**Competitive Sourcing.** A delivery order for A-76 Consultant Services
for the ATF Invoice Processing Function was awarded April 5, 2006. This
function includes 15 FTE in the Financial Management Division (FMD) at
ATF Headquarters.  Employees in the Finance and Accounting Branches
began interviewing May 1, 2006, in order to identify job analysis
requirements for the ATF A-76 Streamlined Competition.  An award
decision was made August 17, 2006 to continue performance with the
Government staff.

**Improved Financial Performance.** ATF received unqualified opinions
for all years that its financial statements were independently audited,
from FY 1995 forward. This signifies that ATF's financial statements are
materially correct and that readers of the financial statements can rely
on the information to be accurate.

ATF demonstrates its continued commitment to maintaining its unqualified
audit opinion and addressing its material weaknesses through proactive
measures. These measures include conducting its own accounts payable
reviews, quarterly meetings on accounts payable requirements, and
additional training on financial management. In addition, in accordance
with the requirements of OMB Circular A-123, ATF works to implement
stronger internal control policies and procedures through documentation
and testing. ATF understands that American taxpayers expect their monies
to be used judiciously in the furtherance of ATF's mission, and that ATF
must demonstrate good judgment and fiscal responsibility in its
financial operations.

**Expanded E-Government.** In expanding e-Government, ATF worked to
"E-Authenticate" the BATS using the federated identity "open"
architecture. This architecture let ATF expand the user population in a
safe, secure, and consistent manner. The expansion assisted the DOJ in
meeting the OMB's mandate to authenticate at least one public access
system in FY 2006 in support of the Justice Department's strategic goals
of the LEISP. BATS is a web-based application available to all federal,
state, local, military and tribal law enforcement with bomb or fire
investigative functions.  The system can be used as an incident based or
case management system and allows users to share information with other
users in real time.

The Bureau implemented a portfolio management tool that closely aligns
ATF investments with the mission and ensures that ATF IT investments
deliver enhanced capability. The application supports several IT
governance functions including Enterprise Architecture, Capital Planning
and Program Control. This solution helps to implement demand management,
Federal Enterprise Architecture (FEA) alignment, earned value reporting,
portfolio management, and program control, and also provides an
executive dashboard to track ATF strategic imperatives. These enhanced
management controls help the Bureau select the right investments and
deliver the planned capability within cost and schedule constraints.

**Budget and Performance Integration.** In the area of budget and
performance integration, all three decision units (firearms, arson and
explosives, and alcohol and tobacco diversion) are linked to the ATF
strategic plan and ATF budget execution structure. Additionally, senior
managers meet quarterly to review financial executive reports, which lay
the foundation for integrating financial and performance information for
the Bureau.

ATF has implemented two new efficiency measures for the firearms and
alcohol and tobacco diversion programs. ATF's arson and explosives
program received a Program Assessment Rating Tool score of 82 out of 100
in FY 2005 and ATF's firearms programs were rated 77 out of 100 possible
points in FY 2004. ATF's Firearms Decision Unit will be reassessed in FY
2007.

**Real Property Asset Management Initiative. ** The real property asset
management initiative applies to all ATF space (approximately 2.3
million square feet of space in three ATF-owned facilities, 87 federal
buildings, and 187 commercial buildings) as well as to space actions
(approximately 15 major actions per year).  Although the Bureau has met
its requirements in this area by submitting its real property asset
management plan and the required real property inventory to DOJ, ATF
always searches for ways to use taxpayer resources more efficiently. 

For example, ATF is working with the Department of Justice and other DOJ
agencies to acquire space in Miami, Florida as part of a DOJ
multi-agency campus. ATF also successfully completed a project with Drug
Enforcement Administration on shared space in Birmingham, Alabama, and
is identifying other opportunities for sharing space. These multi-agency
efforts offer a number of potential benefits including improved
security, greater DOJ and agency control over design and operations, and
cost-effectiveness.

In summary, ATF must employ sound management practices. The Bureau
continues to make progress in its PMA efforts to meet its management
challenges, improve program delivery, and pursue new initiatives that
will enhance its performance. To ensure that the PMA continues to be a
high priority at the Bureau, the Director's chief of staff, who
represents the Bureau on the Department's PMA Council, manages ATF's PMA
program.

**Fiscal Year 2008 Request**

**D. Full Program Costs**

ATF's budget decision units mirror ATF's strategic plan priorities and
the Department's strategic goals and objectives. Each performance
objective is linked with the costs of critical strategic actions in the
accounting system to efficiently measure performance, benchmarks,
status, and goal attainment. For explosives regulatory compliance a 60
million dollar program area in the arson and explosives decision unit
ATF was able to achieve its mandates under the Safe Explosives Act
mandate to inspect explosives licensees and permittees at least once
every three years, by committing to performance targets of inspecting
approximately one third of licensees/permittees each year.  Data is
compiled on site by ATF inspectors and reported in the National Field
Office Case Information System (NFOCIS).  In FY 2006 the targets for the
number of inspections and as a percentages was 5,518 (35%) representing
the number of licensees scheduled for renewal. Actual results were 6,392
inspections (55% of licensees).

In addition, all senior executive service (SES) performance work plans
link to ATF's strategic plan, the Department's plan, and the Attorney
General's goals to ensure performance-based outcomes.

As ATF carries out its critical mission objectives to reduce violent
firearms, explosives, arson, and alcohol and tobacco crime,
approximately 40% percent of ATF's resources support efforts related to
homeland security and counterterrorism.

**FY 2008 Current Services/Adjustments to Base (ATB)**:

Each of ATF's programs is essential to the prevention of terrorism, the
reduction of violent crime, and the protection of the Nation. ATF's
unique authority to perform regulatory work in firearms and explosives
provides a tremendous edge in accomplishing its law enforcement mission.

# 

# ATF's mission supports the priorities of the Administration and the Attorney General under the Department's Strategic Goals 1 and 2, to "Prevent Terrorism and Promote the Nation's Security" and "Enforce Federal Laws and Represent the Rights of the American People." ATF's Congressional budget request totals \$1,013,980,000 and 4,933 FTE, which includes \$995,023,000 and 4,909 FTE for the FY 2008 current services level. The request also includes \$18,957,000 and 24 FTE for program improvements. 

> **ATF Resource Profile FY 2008**

**Resources in Support of DOJ Strategic Goals 1 & 2**

+---------+-------+---------+--------+---------+-------+------------+
| **D     | **FY  | **FY    | FY     | **FY    | FY    | **FY2008** |
| ecision | 2     | 2006    | 2007   | 2007**  | 2008  |            |
| Unit**  | 006** | En      |        |         |       | *          |
|         |       | acted** | Es     | E       | FTE   | *Request** |
|         | **    |         | timate | stimate |       |            |
|         | FTE** | (\$000) | FTE    | 1/      |       | *          |
|         |       |         |        | (\$000) |       | *(\$000)** |
+---------+-------+---------+--------+---------+-------+------------+
| F       | 3,598 | \$      | 3,576  | \$      | 3,525 | \$730,065  |
| irearms |       | 656,508 |        | 705,692 |       |            |
+---------+-------+---------+--------+---------+-------+------------+
|         |       |         |        |         |       |            |
+---------+-------+---------+--------+---------+-------+------------+
|         |       |         |        |         |       |            |
+---------+-------+---------+--------+---------+-------+------------+
| Arson   | 1,349 | \$      | 1,361  | \$      | 1,318 | \$263,635  |
|         |       | 237,072 |        | 232,593 |       |            |
| and     |       |         |        |         |       |            |
| Exp     |       |         |        |         |       |            |
| losives |       |         |        |         |       |            |
+---------+-------+---------+--------+---------+-------+------------+
|         |       |         |        |         |       |            |
+---------+-------+---------+--------+---------+-------+------------+
|         |       |         |        |         |       |            |
+---------+-------+---------+--------+---------+-------+------------+
| Alcohol | 93    | \       | 93     | \       | 90    | \$20,280   |
| and     |       | $18,237 |        | $19,603 |       |            |
| Tobacco |       |         |        |         |       |            |
| Di      |       |         |        |         |       |            |
| version |       |         |        |         |       |            |
+---------+-------+---------+--------+---------+-------+------------+
| #       |       |         |        |         |       |            |
| ######  |       |         |        |         |       |            |
+---------+-------+---------+--------+---------+-------+------------+
| ###     | **5,  | **\$91  | **5    | **\$95  | **4,  | **\$1      |
| #### TO | 040** | 1,817** | ,030** | 7,888** | 933** | ,013,980** |
| TAL ATF |       |         |        |         |       |            |
+---------+-------+---------+--------+---------+-------+------------+

1/ Total assumes \$103,950,000 of the \$120,000,000 from explosives
poundage fee offset will be funded, based on FY 2007 estimate, which is
the average of the Senate and House passed marks less 1 percent.

**Resources in Support of DOJ Strategic Goals 1 & 2**

**By Decision Units and Counterterrorism Crosscut 1/**

**Decision Units**

**ATF Homeland Security Counterterrorism Crosscut**

> ![](media/image4.wmf)

**II. Summary of Program Changes**

+------------+---------------------------------+---+----+-------+----+
| **Item     | **Description**                 |   |    |       | ** |
| Name**     |                                 |   |    |       | Pa |
|            |                                 |   |    |       | ge |
|            |                                 |   |    |       | ** |
+------------+---------------------------------+---+----+-------+----+
|            | **S & E**                       | * | *  | **Do  |    |
|            |                                 | * | *F | llars |    |
|            |                                 | P | TE | (\$0  |    |
|            |                                 | o | ** | 00)** |    |
|            |                                 | s |    |       |    |
|            |                                 | . |    |       |    |
|            |                                 | * |    |       |    |
|            |                                 | * |    |       |    |
+------------+---------------------------------+---+----+-------+----+
| **Direct   |                                 |   |    |       |    |
| S&E**      |                                 |   |    |       |    |
+------------+---------------------------------+---+----+-------+----+
| Adjustment | Does not re-propose the \$120   | 0 | 0  | 1     | 50 |
| of         | million explosives poundage fee |   |    | 0,000 |    |
| Explosives | language included in the FY     |   |    |       |    |
| Poundage   | 2007 President's Budget and the |   |    |       |    |
| Fee Offset | FY 2007 Estimate (which is      |   |    |       |    |
|            | based on the average of the     |   |    |       |    |
|            | Senate and House passed marks   |   |    |       |    |
|            | less 1 percent) provides        |   |    |       |    |
|            | \$103.950 million of the \$120  |   |    |       |    |
|            | million offset. An additional   |   |    |       |    |
|            | \$10 million is funded as a     |   |    |       |    |
|            | program improvement.            |   |    |       |    |
+------------+---------------------------------+---+----+-------+----+
| Firearms   | Establishes firearms            | 3 | 17 | 6,344 | 32 |
| T          | trafficking teams, which will   | 4 |    |       |    |
| rafficking | be devoted to enforcement       |   |    |       |    |
|            | efforts nationwide, with        |   |    |       |    |
|            | specific focus on certain       |   |    |       |    |
|            | trafficking corridors           |   |    |       |    |
|            | throughout the U.S.             |   |    |       |    |
+------------+---------------------------------+---+----+-------+----+
| Project    | Expands ATF's gang and firearms | 1 | 6  | 2,240 | 35 |
| Safe       | enforcement efforts which       | 2 |    |       |    |
| Neig       | support Project Safe            |   |    |       |    |
| hborhoods/ | Neighborhoods (PSN) nationwide. |   |    |       |    |
|            | These PSN resources will focus  |   |    |       |    |
| Firearms   | on immediate reductions in      |   |    |       |    |
| Violence   | violent crime, by taking        |   |    |       |    |
| Reduction  | violent criminals off the       |   |    |       |    |
|            | street and ensuring that any    |   |    |       |    |
|            | resulting leads involving       |   |    |       |    |
|            | multi-defendant conspiracies    |   |    |       |    |
|            | and criminal organizations are  |   |    |       |    |
|            | fully investigated.             |   |    |       |    |
+------------+---------------------------------+---+----+-------+----+
| GangTECC   | Supports the National Gang      | 2 | 1  | 373   | 38 |
|            | Targeting, Enforcement, and     |   |    |       |    |
|            | Coordination Center (GangTECC), |   |    |       |    |
|            | a unified federal effort to     |   |    |       |    |
|            | help disrupt and dismantle the  |   |    |       |    |
|            | most violent gangs in the       |   |    |       |    |
|            | United States.                  |   |    |       |    |
+------------+---------------------------------+---+----+-------+----+

**II. Summary of Program Changes Descriptions**

**Adjustment of Explosives Poundage Fee Offset**

**(\$10M; 0 Positions; 0 FTE)**

ATF requests \$10 million related to the collection of a proposed fee on
explosives manufactured in, or imported into the United States. The
enhancement will increase funding for the Arson & Explosives Decision
Unit whose funding had been reduced by \$120,000,000 through a proposed
offsetting collection. That proposal was rejected by both houses of
Congress. The FY 2007 Estimate (which is based on the average of the
Senate and House passed marks less 1 percent) provides \$103.950 million
of the \$120 million.

**Firearms Trafficking**

**(\$6.344M; 34 Positions; 17 FTE)**

ATF requests \$6.3 million and 17 FTE to expand its domestic firearms
trafficking enforcement efforts nationwide and to specifically focus on
certain trafficking corridors throughout the United States. With this
funding, ATF will establish firearms trafficking investigative teams
that will be solely devoted to pursuing investigative leads involving
trafficking along the SW border and to and from identified areas of the
country with the highest levels of out-of-state guns recovered in
crimes.

**Project Safe Neighborhoods/Firearms Violence Reduction**

**(\$2.24M; 12 Positions; 6 FTE)**

ATF requests \$2.2 million and 6 FTE to expand its gang and firearms
enforcement efforts supporting Project Safe Neighborhoods (PSN)
nationwide. These PSN resources will focus on immediate reductions in
violent crime, by conducting both quick investigations to take violent
criminals off the street and ensuring that any resulting leads involving
multi-defendant conspiracies and criminal organizations are fully
investigated.

**Gang Targeting, Enforcement, and Coordination Center (GangTECC)**

**(\$0.4 million; 2 Positions; 1 FTE)**

ATF also requests \$0.4 million and 1 FTE to be dedicated to the
National Gang Targeting, Enforcement, and Coordination Center
(GangTECC). ATF participation in GangTECC, the Department's new national
anti-gang task force aimed at facilitating law enforcement strategies
and operations across agency lines, includes an ATF agent serving as the
Deputy Director of GangTECC, as well as other assigned agents. 

**III. Appropriations Language and Analysis of Appropriations Language**

**FY 2008**

**Appropriations Language and Analysis of Appropriations Language 1/**

**Salaries and Expenses**

For necessary expenses of the Bureau of Alcohol, Tobacco, Firearms and
Explosives, including the purchase of not to exceed 822 vehicles for
police-type use, of which 650 shall be for replacement only; not to
exceed \$25,000 for official reception and representation expenses; for
training of state and local law enforcement agencies with or without
reimbursement, including training in connection with the training and
acquisition of canines for explosives and fire accelerants detection;
and for provision of laboratory assistance to state and local law
enforcement agencies, with or without reimbursement,
*[\$1,013,980,000]{.underline}*, of which not to exceed \$1,000,000
shall be available for the payment of attorneys\' fees as provided by 18
U.S.C. 924(d)(2); and of which \$10,000,000 shall remain available until
expended. Provided, That no funds appropriated herein shall be available
for salaries or administrative expenses in connection with consolidating
or centralizing, within the Department of Justice, the records, or any
portion thereof, of acquisition and disposition of firearms maintained
by federal firearms licensees: Provided further, That no funds
appropriated herein shall be used to pay administrative expenses or the
compensation of any officer or employee of the United States to
implement an amendment or amendments to 27 CFR 178.118 or to change the
definition of \"Curios or relics\'\' in 27 CFR 178.11 or remove any item
from ATF Publication 5300.11 as it existed on January 1, 1994: Provided
further, That none of the funds appropriated herein shall be available
to investigate or act upon applications for relief from federal firearms
disabilities under 18 U.S.C. 925(c): Provided further, That such funds
shall be available to investigate and act upon applications filed by
corporations for relief from federal firearms disabilities under section
925(c) of title 18, United States Code: Provided further, That no funds
made available by this or any other Act may be used to transfer the
functions, missions, or activities of the Bureau of Alcohol, Tobacco,
Firearms and Explosives to other agencies or Departments in fiscal year
[*2008*: *That beginning in fiscal year 2008 and thereafter, no funds
may be used to disclose part or all of the information in the Firearms
Trace System database maintained by the National Tracing Center or any
information required to be kept by licensees pursuant to subsection
923(g) of title 18, United States Code, or required to be reported
pursuant to paragraphs (3) and (7) of subsection 923(g) of title 18,
United States Code, except: (a) to an official of a Federal, State,
local, tribal or foreign law enforcement agency or a Federal, State, or
local prosecutor who certifies that the information is sought solely in
connection with a bona fide criminal investigation or bona fide criminal
prosecution; (b) to a Federal agency for national security or
intelligence purposes, and will not be used or disclosed for any other
purpose; or (c) for use in an action or proceeding commenced by the
Bureau of Alcohol, Tobacco, Firearms and Explosives, or a review of such
an action or proceeding, to enforce the provisions of chapter 44 of
title 18, United States Code; and all such data shall be immune from
legal process and shall not be subject to subpoena or other discovery,
shall be inadmissible in evidence, and shall not be used, relied on, or
disclosed in any manner, nor shall testimony or other evidence be
permitted based upon such data, in any civil action in any State
(including the District of Columbia) or Federal court or in any
administrative proceeding other than a proceeding commenced by the
Bureau of Alcohol, Tobacco, Firearms and Explosives to enforce the
provisions of chapter 44 of title 18, United States Code, or a review of
such an action or proceeding; except that this proviso shall not be
construed to prevent the disclosure of statistical information
concerning total production, importation, and exportation by each
licensed importer (as defined in section 921(a)(9) of such title) and
licensed manufacturer (as defined in section 921(a)(10) of such title):
Provided further,*]{.underline} That no funds made available by this or
any other Act shall be expended to promulgate or implement any rule
requiring a physical inventory of any business licensed under section
923 of title 18, United States Code: Provided further, That no funds
under this Act may be used to electronically retrieve information
gathered pursuant to 18 U.S.C. 923(g)(4) by name or any personal
identification code: Provided further, That no funds authorized or made
available under this or any other Act may be used to deny any
application for a license under section 923 of title 18, United States
Code, or renewal of such a license due to a lack of business activity,
provided that the applicant is otherwise eligible to receive such a
license, and is eligible to report business income or to claim an income
tax deduction for business expenses under the Internal Revenue Code of
1986.

1/ The FY 2008 President\'s Budget uses the FY 2007 President\'s Budget
language as a base so all language is presented as new.

***Recommended change to the General Provisions -- Department of
Justice:***

***Amends section 106***

*[The Attorney General is authorized to extend through September 30,
2009, the Personnel Management Demonstration Project transferred to the
Attorney General pursuant to section 1115 of the Homeland Security Act
of 2002, Public Law 107-296 (6 U.S.C. 533) without limitation on the
number of employees or the positions covered.]{.underline}*

**Analysis of Appropriations Language 1/**

-   *The revised language clarifies that firearms trace data may be
    shared with tribal and foreign law enforcement agencies. This
    corrects an unintentional drafting error and is consistent with
    ATF's law enforcement mission and the express purpose of the Gun
    Control Act to assist other law enforcement agencies.*

-   *The revised language clarifies that firearms trace data may be
    shared with federal agencies for national security purposes. There
    was never any intention to prohibit intelligence or security
    agencies from requesting firearms traces in the course of
    anti-terrorist or homeland security investigations.*

```{=html}
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```
-   *Would extend the pay demonstration project for one year through
    September 30, 2009 without limit on the number of employees.*

1/ The FY 2008 President\'s Budget uses the FY 2007 President\'s Budget
language as a base so all language is presented as new.

**IV. Decision Unit Justification**

**A. Firearms**

  ---------------------------------------- ---------- ---------- ------------
  **Firearms TOTAL**                       **Perm     **FTE**    **Amount**
                                           Pos.**                

  2006 Enacted w/Rescissions and           3,676      3,598      672,008
  Supplementals                                                  

  2007 Estimate                            3,696      3,576      705,692

  Adjustments to Base and Technical        \(123\)    \(75\)     15,416
  Adjustments                                                    

  2008 Current Services                    3,573      3,501      721,108

  2008 Program Increases                   48         24         8,957

  2008 Program Offsets                     0          0          0

  2008 Request                             3,621      3,525      730,065

  **Total Change 2007-2008**               **(75)**   **(51)**   **24,373**
  ---------------------------------------- ---------- ---------- ------------

**1. Program Description**

ATF is committed to the reduction of gun violence, one of the Nation's
top domestic law enforcement priorities. The men and women of ATF
protect the Nation by carrying out this important mission

**Project Safe Neighborhoods (PSN) and ATF's Gang Strategy**

PSN, led by the Department, is tailored to the needs of the communities
in each U.S. Judicial District across the country. Through this
initiative, ATF fights violent firearms crime by investigating armed
career criminals, prohibited possessors, and firearms traffickers,
effectively regulating the firearms industry to prevent firearms
diversion, and discouraging firearms violence through outreach efforts.

ATF has played an active role in PSN since its inception in 2001 with a
focus on a wide range of firearms cases---those involving Racketeer
Influenced Corrupt Organization (RICO) violations, illegal firearms
trafficking, and the criminal possession of firearms by convicted
felons. In 2006, the Department of Justice announced that PSN would
expand to include gang enforcement and prevention activities.

![](media/image5.wmf){width="3.625in" height="2.5076388888888888in"}ATF
oversees a comprehensive gang strategy, combining criminal enforcement
tactics to take violent gang members and their organizations off the
streets through education, prevention, and training efforts. ATF shares
investigative information on gangs nationally through its case
management system. This system gives every agent and task force member
the ability to access information about other cases in order to
coordinate efforts. ATF referred more than 10,000 gang members and their
associates for prosecution over the past four fiscal years between FY
2003 and 2006 for charges including firearms violations, continuing
criminal enterprise violations, RICO violations, and arson and
explosives violations.

As the leading agency responsible for enforcing the federal firearms
laws, ATF is committed to assisting state and local law enforcement
agencies, particularly in areas that are hardest hit by violence.
Violent Crime Impact Teams (VCITs), which operate under PSN, establish
or expand upon violent crime task forces in cities across the country.
As noted previously, the goal of the VCIT program is the reduction of a
community's occurrence of homicide and firearms-related violent crime
through the use of geographic targeting, proactive investigation, and
prosecution of those responsible, including violent gang members. ATF's
VCIT program relies on leveraging partnerships with other law
enforcement agencies in combination with the sustained use of new and
innovative technology, analytical investigative tools, and progressive
law enforcement strategies.

**Illegal Firearms Trafficking Enforcement**

The goal of ATF's illegal firearms trafficking enforcement efforts is to
reduce violent crime by identifying, investigating, and arresting
individuals who illegally supply firearms to others prohibited from
possessing them (e.g., felons, gang members, juveniles) and to deter the
diversion of firearms from lawful commerce into the illegal market.
Multiple, complementing approaches and technologies are utilized to
thwart illegal firearms trafficking: enlisting partnerships with the
firearms industry to help identify illegal third-party firearms
purchasers, identifying firearms licensees whose businesses have
multiple risk factors for trafficking (either with or without the
complicity of the business owner), and investigating leads generated
through these referrals and other investigative information.

ATF enforces the import provisions of the Arms Export Control Act,
administers and enforces the import provisions of the Gun Control Act
and the National Firearms Act, and approves registered firearms for
export under the National Firearms Act. ATF works closely with U.S.
Customs and Border Protection to monitor imports and exports of
firearms, ammunition, and other defense articles to ensure that their
international movement is consistent with the law. 

Historically, ATF's international enforcement programs have primarily
combated international firearms and explosives trafficking in the
Western hemisphere. ATF participates in a number of international policy
forums, such as the Cross Border Crime Forum with Canada and the Senior
Law Enforcement Plenary sessions with Mexico to address firearms
trafficking problems and other policy issues common to the United States
and its neighbors. ATF also works with other agencies to prevent
U.S.-sourced firearms from reaching the hands of drug traffickers,
organized criminals, and terrorist organizations.

The Deputy Attorney General recently announced the creation of an
ATF-led Violent Crime Impact Team (VCIT) in Laredo, Texas that addresses
firearms violence along the southwest border.  ATF uses firearms tracing
data in conjunction with intelligence from local police to pinpoint
problem areas and to identify the "worst of the worst" criminals.  ATF
ensures that U.S.-source firearms recovered in Mexico are properly
identified and traced through the ATF Mexico Country Office.  In an
effort to increase the number of traces involving U.S. source guns
recovered in Mexico, ATF provides a secure online tracing system called
eTrace to the Mexican Attorney General's Intelligence Branch (CENAPI). 
Comprehensive firearms tracing not only provides intelligence regarding
the sources of crime guns recovered in Mexico, but it also assists local
offices in identifying, targeting, and investigating straw purchasers
and the traffickers who employ them.  ATF special agents working in
cooperation with Mexican law enforcement officials recently arrested
seven individuals for trafficking 84 firearms, including AK-47 rifles.

Due to the growth in narcotics-trafficking and firearms and explosives
related violence along the southwest border with Mexico, ATF initiated a
strategy to address such violence on both sides of the border. This
strategy calls for focusing resources in affected areas such as Laredo,
Texas, as mentioned previously, and the emphasis is on working
partnerships with other law enforcement agencies at the federal (e.g.,
Drug Enforcement Administration and Immigration and Customs
Enforcement), state and local level (e.g., the Laredo Police
Department). Similarly, in Mexico, the ATF Mexico Office works closely
with Mexican law enforcement agencies to increase their capacity to
effectively combat the criminal elements affecting their communities.
Technological support and training is provided to them in an effort to
enhance their effectiveness.

**National Integrated Ballistic Information Network (NIBIN)**

Through its National Integrated Ballistic Information Network (NIBIN)
Program, ATF deploys Integrated Ballistics Identification System (IBIS)
equipment to federal, state, and local law enforcement agencies for
their use in imaging and comparing crime gun evidence. IBIS equipment
allows firearms technicians to acquire digital images of the markings
made by a firearm on bullets and cartridge casings; the images then
undergo automated initial comparison. If a high-confidence candidate
emerges, firearms examiners compare the original evidence to confirm a
match. By minimizing the amount of non-matching evidence that firearms
examiners must inspect to find a confirmable match, the NIBIN system
enables law enforcement agencies to discover links between crimes more
quickly, including links that would have been lost without the
technology. In funding and supporting this program, ATF provides
federal, state, and local law enforcement agencies with valuable access
to an effective intelligence tool. The system also makes it possible to
share intelligence across jurisdictional boundaries, enabling federal,
state, and local law enforcement agencies to work together to stop
violent criminals. NIBIN is presently sharing ballistic information with
the Canadian Integrated Ballistic Information Network (CIBIN) as part of
a cross-border firearms initiative. In the near future, sharing
ballistic information between NIBIN and CIBIN will be done
electronically on a real time basis.

**Firearms Tracing**

ATF's National Tracing Center (NTC) is the Nation's only firearms
tracing facility, tracing crime guns for federal, state, local, and
international law enforcement in order to provide investigative leads.
The investigative leads link suspects to firearms in criminal
investigations, identify potential traffickers (whether unlicensed or
licensed sellers), and when sufficiently comprehensive tracing is
undertaken by a given community, the leads detect in-state, interstate,
and international patterns in the sources and kinds of crime guns. The
NTC is working with the State Department to expand this unique deterrent
and prevention tool to specific source areas. ATF has partnered with
Canadian authorities through the Cross Border Crime Forum and Mexican
authorities through the Southwest Border Initiative to enhance the
sharing of information, deter the illegal flow of firearms, and prevent
terrorist activity on both sides of the border. The NTC also manages a
number of associated programs to support firearms tracing and criminal
investigations that involve firearms and firearms-related crimes.
Programs and services provided include the following:

> **Firearms Tracing** is the systematic tracking of the movement of a
> firearm recovered by law enforcement officials from its first sale by
> the manufacturer or importer through the distribution chain
> (wholesaler/retailer) to the first retail purchaser.
>
> **eTrace** is a web-based system that assists law enforcement agencies
> in proper identification of firearms and ensures that trace
> submissions are processed accurately and expeditiously. The system
> allows authorized law enforcement agencies worldwide to securely send
> trace requests to the NTC, receives the results, and performs limited
> analysis of those results.  To ensure that the greatest benefit is
> provided, the eTrace program was designed, developed and tested with
> the assistance of a consortium of law enforcement agencies.
>
> The **Stolen Firearms Program** manages the theft and loss reports
> from federal firearms licensees, interstate carriers, and DOD.
> Additionally, the program makes notifications related to those
> firearms that have been subsequently recovered and traced by law
> enforcement agencies and supports investigations related to thefts
> from federal firearms licensees (FFL) and interstate carriers.
>
> **ACCESS 2000** is a partnership between ATF and firearms industry
> members, such as importers, manufacturers, and wholesalers. The
> partnership provides the NTC with 24/7 access to firearms disposition
> information in order to complete firearms trace requests for law
> enforcement agencies engaged in bona fide criminal investigations.

**Brady Act Enforcement Strategy**

The Brady Handgun Violence Prevention Act (Brady Act) requires a check
through the National Instant Criminal Background Check System (NICS) for
the purchase of every firearm by a non-licensee from a federal firearms
licensee (FFL). While the NICS record check process is performed by the
FBI, ATF investigates and enforces Brady Act violations. Under 18 U.S.C.
§ 922(t), with limited exceptions, a licensee is prohibited from
transferring a firearm to an unlicensed person unless the licensee
contacts the NICS system and receives a response that he or she may
proceed, or receives no response and 3 days have elapsed since
contacting the system. ATF's Brady Operations Branch serves as the
liaison with the FBI on NICS matters, responds to FFL inquiries and
concerns regarding NICS, and analyzes data from NICS denials to identify
firearms trafficking trends. As the lead agency for the enforcement of
federal firearms laws, ATF focuses on prohibited individuals who have
obtained or who attempt to obtain firearms from FFLs.

In 2005, ATF field divisions coordinated with the U.S. Attorney's
Offices (USAO) from each of the 94 U.S. Judicial Districts to establish
new referral criteria for Brady Act violators. The new criteria provide
tailored referrals that meet each of USAO's specific prosecutorial
guidelines, resulting in a more efficient referral process and more
productive investigations.

**Federal Firearms Licensee (FFL) Inspections**

Inspections of FFLs verify that FFLs are complying with the provisions
of the Gun Control Act (GCA) and its implementing regulations, and
detect and prevent the diversion of firearms from legal to illegal
commerce. Compliance with the GCA by the firearms industry is essential
to assist with nationwide crime control and public safety efforts. As an
added benefit, industry operations investigators (IOI) educate FFLs on
the rights and responsibilities associated with conducting a firearms
business.

ATF inspections of FFLs play a vital role developing important firearms
trafficking cases. One such case involved an IOI's referral to special
agents of two individuals who were making suspicious purchases. These
individuals were later found to have ties to a known Mexican cocaine
smuggling organization that was trafficking narcotics from Mexico
through the Rio Grande Valley. Both were suspected to have trafficked
more than 20 Alexander Arms Beowulf .50 caliber rifles. These rifles are
prized by the Mexican drug cartels due to their ability to penetrate
engine blocks and armored glass. Investigations continue in the case.

ATF works closely with the firearms industry to identify internal
control weaknesses in business operations that lead to the diversion of
firearms from legal to illegal sources. These internal control
assessments often involve a variety of voluntary actions the licensees
can take outside of the regulations, such as training employees to
identify firearms trafficking indicators and "straw purchases." Straw
purchases are the acquisitions of firearms from an FFL by an individual
(the straw) on behalf of another person, concealing the identity of the
true purchaser---a person either prohibited from lawfully acquiring a
firearm themselves or otherwise unwilling to have their name associated
with the firearm transaction. Other internal control assessments
include: (a) FFLs reviewing ATF Form 4473 to ensure that all information
is properly recorded and that sales are not inadvertently made to
prohibited individuals, (b) taking frequent inventories to ensure
accountability of product, and (c) implementing security measures to
safeguard firearms from theft or loss.

ATF conducts a warning conference with licensees who are in violation of
the law or regulations. ATF then performs a recall inspection the next
year to ensure that the licensee is complying with federal laws and
specific record keeping regulations.

**National Firearms Act (NFA) Enforcement**

The National Firearms Act (NFA) requires that firearms makers,
importers, and manufacturers register the NFA firearms they make or
import, and that ATF approve in advance all NFA firearms transfers. The
NFA also imposes a tax on the making and transfer of NFA firearms and
requires manufacturers, importers, and dealers to pay a special
occupational tax. NFA requires registration and payment of a transfer or
making tax for the following types of firearms: machine guns, silencers,
short-barreled rifles and shotguns, destructive devices, and certain
concealable weapons classified as "any other weapons." ATF processes all
applications to manufacture, transfer, and register NFA firearms and
notices of NFA firearms manufactured or imported. The registration
information is captured in the National Firearms Registration and
Transfer Record (NFRTR), and is used to support ATF's field efforts to
inspect firearms licensees and conduct criminal investigations. ATF also
continually provides technical information to the industry and the
public concerning compliance with the NFA.

**Importation of Firearms**

ATF regulates the importation of firearms, ammunition, and other
defense-related articles through the issuance of import permits. ATF
also regulates the importation of firearms and ammunition by
nonimmigrant aliens. The Bureau maintains close liaison with the
Department of State and U.S. Customs and Border Protection, under the
Department of Homeland Security, to ensure that the permits issued do
not conflict with the foreign policy and national security interests of
the United States.

**ATF Partnerships with the Firearms Industry**

ATF updates members of the regulated firearms community of statutory,
regulatory, and policy changes that affect their day-to-day operations.
Accordingly, ATF publishes and distributes open letters to importers of
firearms, ammunition, and other regulated commodities advising them of
important issues that impact their operations. ATF also publishes
pertinent articles in its semi-annual *FFL Newsletter* and conducts
seminars for licensees at various locations.

**"Don't Lie for the Other Guy"**

"Don't Lie for the Other Guy" is a successful outreach program developed
jointly by ATF and the National Shooting Sports Foundation (NSSF) as a
result of findings in the "Following the Gun" report of 2000. Designed
to train federal firearms licensees in the detection and avoidance of
illegal straw purchases, "Don't Lie for the Other Guy" also educates the
public about the serious consequences of being involved in straw
purchases.

ATF and NSSF have conducted "Partnership for Progress Seminars" for
thousands of federal firearms licensees in which "Don't Lie for the
Other Guy" has been the cornerstone of the presentation. Retailers
attending these seminars view a video and are exposed to the methods
straw purchasers commonly use to illegally obtain firearms for someone
who may be prohibited. A retailer education kit, which has been
distributed to more than 20,000 firearms retailers and to gun show
promoters and pawn shops, supports the program's intent of deterring
illegal purchases.

"Don't Lie for the Other Guy" was expanded and placed under the umbrella
of PSN, incorporating additional outreach efforts designed to warn the
public that participating in a straw purchase is a felony. This public
awareness component sends "Don't Lie for the Other Guy" representatives
to ATF-targeted areas to encourage retailers to participate in the
program. At the same time, community residents in these selected areas
learn about the program's message through billboard advertising, radio,
and TV public service announcements by U.S. Attorneys and through media
coverage of press conferences attended by U.S. Attorneys, ATF, law
enforcement, and elected officials. The combination of retailer
education and public awareness components makes for a highly visible and
powerful message to deter straw purchases.

  ---------------------- ----------- --------------- ------------ --------------- -------------- --------------- ------------- -------------- ------------- ---------------
  **2. PERFORMANCE AND                                                                                                                                      
  RESOURCES TABLE**                                                                                                                                         

  **Decision Unit:                                                                                                                                          
  Firearms**                                                                                                                                                

  **DOJ Strategic                                                                                                                                           
  Goal/Objective: Goal                                                                                                                                      
  2, Objective 2.1**                                                                                                                                        

  **WORKLOAD/            **Final                     **Actual**                   **Estimate**                   **Changes**                  **Requested   
  RESOURCES**            Target**                                                                                                             (Total)**     

                         **FY 2006**                 **FY 2006**                  **FY 2007                      **Current                    **FY 2008     
                                                                                  Estimate**                     Services                     Request**     
                                                                                                                 Adjustments                                
                                                                                                                 and FY 2008                                
                                                                                                                 Program**                                  

  **Workload**                                                                                                                                              

  Number of firearms     5,508                       7,292                        6,650                          \--                          6,650         
  compliance inspections                                                                                                                                    
  completed                                                                                                                                                 

  Number of firearms     N/A                         29,166                       28,500                         \--                          28,500        
  investigations                                                                                                                                            
  initiated during                                                                                                                                          
  fiscal year [^1]                                                                                                                                          

  **Total Costs and      **FTE**     **\$000**       **FTE**      **\$000**       **FTE**        **\$000**       **FTE**       **\$000**      **FTE**       **\$000**
  FTE**.                                                                                                                                                    

                         **3,598**   **\$672,008**   **3,363**    **\$655,126**   **3,576**      **\$705,692**   **(51)**      **\$24,373**   **3,525**     **\$730,065**
  ---------------------- ----------- --------------- ------------ --------------- -------------- --------------- ------------- -------------- ------------- ---------------

<table>
<colgroup>
<col style="width: 13%" />
<col style="width: 18%" />
<col style="width: 4%" />
<col style="width: 0%" />
<col style="width: 7%" />
<col style="width: 5%" />
<col style="width: 7%" />
<col style="width: 5%" />
<col style="width: 7%" />
<col style="width: 5%" />
<col style="width: 8%" />
<col style="width: 5%" />
<col style="width: 11%" />
</colgroup>
<tbody>
<tr class="odd">
<td><strong>TYPE/ STRATEGIC OBJECTIVE</strong></td>
<td><strong>PERFORMANCE</strong></td>
<td colspan="3"><p><strong>FY 2006</strong></p>
<p><strong>Final Target</strong></p></td>
<td colspan="2"><p><strong>FY 2006</strong></p>
<p><strong>Actual</strong></p></td>
<td colspan="2"><p><strong>FY 2007</strong></p>
<p><strong>Estimate</strong></p></td>
<td colspan="2"><strong>Current Services Adjustments and FY 2008
Program</strong></td>
<td colspan="2"><strong>FY 2008 Request</strong></td>
</tr>
<tr class="even">
<td rowspan="2"><strong>Program Activity</strong></td>
<td rowspan="2"><strong>Criminal Enforcement</strong><a href="#fn1"
class="footnote-ref" id="fnref1"
role="doc-noteref"><sup>1</sup></a></td>
<td colspan="2"><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="odd">
<td colspan="2"><strong>2,909</strong></td>
<td><strong>$591,367</strong></td>
<td><strong>2,749</strong></td>
<td><strong>$576,645</strong></td>
<td><strong>2,923</strong></td>
<td><strong>$621,152</strong></td>
<td><strong>(30)</strong></td>
<td><strong>$23,676</strong></td>
<td><strong>2,893</strong></td>
<td><strong>$644,828</strong></td>
</tr>
<tr class="even">
<td></td>
<td>Number and Percentage of gang related defendants</td>
<td colspan="3">N/A</td>
<td colspan="2">3,821 / 20%</td>
<td colspan="2">3,800 / 20%</td>
<td colspan="2">--</td>
<td colspan="2">3,800 / 20%</td>
</tr>
<tr class="odd">
<td></td>
<td>Number and Percentage of defendants<a href="#fn2"
class="footnote-ref" id="fnref2" role="doc-noteref"><sup>2</sup></a> who
are involved in trafficking</td>
<td colspan="3">18%</td>
<td colspan="2">3,017 / 17%</td>
<td colspan="2">3,000 / 17%</td>
<td colspan="2">150 / 0.7%</td>
<td colspan="2">3,150 / 17%</td>
</tr>
<tr class="even">
<td></td>
<td>Number and Percentage of defendants who are prohibited possessors of
firearms<a href="#fn3" class="footnote-ref" id="fnref3"
role="doc-noteref"><sup>3</sup></a></td>
<td colspan="3">50%</td>
<td colspan="2">8,655 / 48%</td>
<td colspan="2">8,700 / 48%</td>
<td colspan="2">--</td>
<td colspan="2">8,700 / 48%</td>
</tr>
<tr class="odd">
<td rowspan="2"><strong>Program Activity</strong></td>
<td rowspan="2"><strong>Regulatory Compliance</strong></td>
<td><strong>FTE</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="even">
<td><strong>689</strong></td>
<td colspan="2"><strong>$80,641</strong></td>
<td><strong>614</strong></td>
<td><strong>$78,481</strong></td>
<td><strong>653</strong></td>
<td><strong>$84,540</strong></td>
<td><strong>(21)</strong></td>
<td><strong>$697</strong></td>
<td><strong>632</strong></td>
<td><strong>$85,237</strong></td>
</tr>
<tr class="odd">
<td></td>
<td>Reduction in unaccounted firearms based on total recall</td>
<td colspan="3">75%</td>
<td colspan="2">88%</td>
<td colspan="2">75%</td>
<td colspan="2">--</td>
<td colspan="2">75%</td>
</tr>
<tr class="even">
<td><p><strong>EFFICIENCY</strong></p>
<p><strong>MEASURE</strong></p></td>
<td>Percent of firearms traces completed within nine days</td>
<td colspan="3">63%</td>
<td colspan="2">65%</td>
<td colspan="2">67%</td>
<td colspan="2">--</td>
<td colspan="2">67%</td>
</tr>
</tbody>
</table>
<aside id="footnotes" class="footnotes footnotes-end-of-document"
role="doc-endnotes">
<hr />
<ol>
<li id="fn1"><p>Beginning with the FY 2006 Actual column through the FY
2008 projections (for the three measures involving the number and
percentage of defendants) no longer represent defendants convicted, but
instead track to the number of defendants referred for prosecution.<a
href="#fnref1" class="footnote-back" role="doc-backlink">↩︎</a></p></li>
<li id="fn2"><p>The percentage represents the defendants convicted
involved in firearms trafficking as a percentage of total defendants
convicted in all firearms investigations.<a href="#fnref2"
class="footnote-back" role="doc-backlink">↩︎</a></p></li>
<li id="fn3"><p>This measure specifically reflects ATF defendants
convicted under Title 18 of the United States Code, Section 922(g) (1).
This section prohibits possession of a firearm by persons convicted of a
crime punishable by imprisonment for a term exceeding one year. Again
the percentage represents the defendants convicted under this statute as
a percentage of total defendants convicted in all firearms
investigations.<a href="#fnref3" class="footnote-back"
role="doc-backlink">↩︎</a></p></li>
</ol>
</aside>

<table>
<colgroup>
<col style="width: 10%" />
<col style="width: 15%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 6%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 6%" />
</colgroup>
<thead>
<tr class="header">
<th colspan="12"><blockquote>
<p>2. PERFORMANCE MEASURE TABLE</p>
</blockquote></th>
</tr>
<tr class="odd">
<th colspan="12">Decision Unit: Firearms</th>
</tr>
<tr class="header">
<th colspan="2" rowspan="2"><strong>Performance Report and Performance
Plan Targets</strong></th>
<th>FY 2000</th>
<th><h1 id="fy-2001">FY 2001</h1></th>
<th><strong>FY 2002</strong></th>
<th><strong>FY 2003</strong></th>
<th><strong>FY 2004</strong></th>
<th><strong>FY 2005</strong></th>
<th colspan="2"><strong>FY 2006</strong></th>
<th><strong>FY 2007</strong></th>
<th>FY 2008</th>
</tr>
<tr class="odd">
<th><strong>Actual</strong></th>
<th><strong>Actual</strong></th>
<th><strong>Actual</strong></th>
<th><strong>Actual</strong></th>
<th><strong>Actual</strong></th>
<th><strong>Actual</strong></th>
<th><strong>Target</strong></th>
<th><strong>Actual</strong></th>
<th>Target</th>
<th>Target</th>
</tr>
</thead>
<tbody>
<tr class="odd">
<td><strong>Performance Measure</strong></td>
<td>Number and Percentage of gang related defendants</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td><p>3,821 /</p>
<p>20%</p></td>
<td><p>3,800 /</p>
<p>20%</p></td>
<td>3,800 / 20%</td>
</tr>
<tr class="even">
<td><strong>Performance Measure</strong></td>
<td>Number and Percentage of defendants who are involved in
trafficking</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>18%</td>
<td><p>3,017 /</p>
<p>17%</p></td>
<td><p>3,000 /</p>
<p>17%</p></td>
<td>3,150 / 17%</td>
</tr>
<tr class="odd">
<td><strong>Performance Measure</strong></td>
<td>Number and Percentage of defendants who are prohibited possessors of
firearms</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>50%</td>
<td><p>8,655 /</p>
<p>48%</p></td>
<td><p>8,700 /</p>
<p>48%</p></td>
<td>8,700 / 48%</td>
</tr>
<tr class="even">
<td><strong>Performance Measure</strong></td>
<td>Reduction in unaccounted firearms based on total recall</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>75%</td>
<td>88%</td>
<td>75%</td>
<td>75%</td>
</tr>
<tr class="odd">
<td>EFFICIENCY MEASURE</td>
<td>Percent of firearms traces completed within nine days</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>58%</td>
<td>63%</td>
<td>65%</td>
<td>67%</td>
<td>67%</td>
</tr>
<tr class="even">
<td colspan="2"><strong>N/A = Data unavailable</strong></td>
<td> </td>
<td></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td></td>
<td> </td>
</tr>
</tbody>
</table>

**3. Performance, Resources, and Strategies**

ATF's unique jurisdiction, skills, and assets provide a focused,
flexible, and balanced approach to fighting unlawful firearms use and
firearms trafficking while protecting the public's legitimate access to
firearms. ATF specializes in investigations involving illegal
acquisition, possession, use, and trafficking of firearms. Constrained
by limited resources, ATF continually strives to align its assets to
maximize performance through the leveraging of technical, scientific,
and legal expertise.

a.  **Performance Plan and Report for Outcomes**

Ensuring the integrity of the federal firearms industry is another key
element of preventing violent firearms crime and ensuring that
investigators have the tools needed to do their jobs. Although
comprising only a small percentage of the more than 106,000 licensees,
federal firearms licensees who willfully disregard the laws and
regulations represent a significant threat to public safety. To bring
all federal firearms licensees in line with the law, ATF is focused on
improving its compliance procedures, which will be essential to ensure
that (a) prohibited individuals do not obtain firearms licenses, and (b)
firearms are not illegally diverted from legal to illegal markets. ATF
will measure reductions in instances of violations among federal
firearms licensees to ensure that its regulatory efforts (i.e.,
inspection and education) are having the desired impact. Where problems
are discovered, appropriate actions will be taken.

**b. Strategies to Accomplish Outcomes**

Violent firearms crime and firearms trafficking continue to plague the
country. As the agency responsible for enforcing federal firearms laws,
ATF leads the fight to reduce violent firearms crime. To achieve the
performance goals outlined for FYs 2006 and 2007, as well as the
long-term goals into FY 2008, ATF will depend on a strategy balanced
between incremental increases in personnel and the maximization of
resources through the leveraging of partnerships, technology, and
expertise*.* ATF faces a number of emerging challenges in the years
ahead, and ATF will need to create innovative solutions and use
technology in its strategies to accomplish the Bureau's ambitious goals.
ATF did meet its target for the 2004 reporting cycle. ATF placed VCITs
in seven of the cities where violent firearms crime increased: Camden,
Hartford, Houston, Los Angeles, Richmond, Tulsa, and Washington, DC.

In order to address the increasing crime rate on the national level, ATF
must build upon its investigative expertise and past successes. Through
PSN, ATF addresses firearms violence nationwide. ATF works closely with
other federal, state, and local agencies to prevent armed offenders from
victimizing the American public, to shut down illegal gun markets and
apprehend illegal possessors, and to ensure industry adherence to
applicable laws and regulations.

To maintain the integrity of the licensee population, ATF is working to
update procedures, including those involving the selection of licensees
for inspection, as well as license revocation for those who operate
outside the law. ATF is reengineering its investigator workforce to
maximize efficiency.

As mentioned earlier, ATF's strategic success in reducing violent
firearms crime depends upon the effective use of technology. ATF
continues to improve its data capabilities so that timely and integrated
information is available for all ATF employees to do their jobs, and to
share this information when appropriate and when authorized by law with
their federal partners, industry members, stakeholders, and the general
public. ATF plans to integrate all of its firearms enforcement and
licensing systems and explosives systems so that information can be
cross-referenced and can be accessed expeditiously. ATF's National
Tracing Center is working with firearms manufacturers and wholesalers
through electronic linkups to decrease completion time and reduce costs
associated with traces. Through the National Integrated Ballistic
Information Network (NIBIN), ATF also provides automated ballistic
comparison capabilities to hundreds of agencies nationwide.

ATF's enforcement and industry operations strategies are complemented by
various outreach efforts. ATF conducts presentations to school children
and the general public to promote public safety and prevent violence,
partners with industry members and professional organizations, and
offers raining and other services to employees of other federal, state,
and local agencies to improve their professional capabilities.

ATF participates in numerous multi-agency initiatives, including the
Joint Terrorism Task Force (JTTF), as well as efforts within the
Department of Justice to coordinate regional, national, and
transnational criminal investigations and prosecutions against major
drug trafficking organizations.

Sharing technology and information is an important element in the
success of law enforcement operations. GangTECC is one example of this
type of coordinated effort. This task force develops law enforcement
strategies and facilitates operations across agency lines aimed at
dismantling national and transnational violent gangs.  GangTECC
coordinates overlapping investigations conducted by different agencies,
encourages the sharing of tactical and strategic intelligence between
law enforcement agencies, and serves as a central coordinating center
for multi-jurisdictional gang investigations involving federal law
enforcement agencies. Additionally, ATF is implementing computer
applications that will allow field employees greater access to needed
data, provide an electronic interface with the FBI for submission of
fingerprints and retrieval of results, and facilitate the sharing of
domestic intelligence information with the Department of Homeland
Security.

Finally, ATF partners with various law enforcement and prosecutorial
entities in conducting innovative regional cross-training in firearms
enforcement for agents, officers, and attorneys, as well as training in
firearms trafficking and tracing to enforcement agencies through the ATF
Country offices in Mexico, Canada, and Colombia. ATF has also achieved a
greater international presence through its commitment of resources and
expertise to the delivery of specialized training and the strategic
placement of personnel. An ATF liaison officer is assigned to the
INTERPOL General Secretariat in Lyon, France. The placement of these
officers facilitates the efficient exchange of information and expertise
with the international law enforcement community. These partnerships
throughout the world have increased information and technology sharing
and strengthened transnational criminal investigations between ATF and
our international colleagues.

**Program Increase: [Firearms Trafficking]{.underline}**

Budget Decision Unit(s): [Firearms Program]{.underline}

Strategic Goal(s) & Objective(s): Strategic Goal 2: Enforce Federal Laws
and Represent the Rights and Interests of the American People

Organizational Program: [Firearms]{.underline}

Program Increase: Positions \_[34 \_]{.underline}
Agt\_[34]{.underline}\_ FTE \_[17\_]{.underline} Dollars
[\$6,344,000]{.underline}

[Description of Item]{.underline}

Through firearms trafficking interdiction efforts, ATF works to reduce
violence by decreasing the availability of illicit secondary market
firearms and by referring for prosecution those who illegally supply
firearms to those prohibited from possessing them (e.g., felons, gang
members, and juveniles). Violent gang members---a primary enforcement
concern---are often involved in firearms trafficking, both in
furtherance of drug trafficking activities and diverting weapons to
commit firearms-related crimes.

ATF is requesting 17 FTE (34 positions) and \$6.3 million to expand its
domestic firearms trafficking enforcement efforts nationwide and to
specifically focus on trafficking corridors throughout the United
States. With this funding, ATF will establish firearms trafficking
investigative teams that will be solely devoted to pursuing
investigative leads involving trafficking to and from identified areas
of the country with the highest levels of out-of-state guns recovered in
crimes.

[Justification]{.underline}

ATF has placed greater emphasis in recent years on investigating and
apprehending those who actively use firearms in violent crimes. Fighting
violent crime, however, is most successful when those who supply
firearms to criminals are also addressed.

ATF draws on the unique expertise of its industry operations
investigators and special agents to employ a three-pronged strategy to
address firearms trafficking \-- enlisting partnerships with the
firearms industry to help identify illegal third-party firearms
purchasers, identifying firearms licensees whose businesses have
multiple risk factors for trafficking (either with or without the
complicity of the business owner), and investigating leads generated
through these referrals and other investigative information.

Additional special agents will supplement existing special agent,
industry operations investigator and analytical resources (including
ATF's National Tracing Center and Violent Crime Analysis Branch) to
expand its current capacity to perfect complex, trafficking
investigations. Between FY 2001 and FY 2005, ATF increased the number of
defendants referred for prosecution by 150 percent, and the number of
trafficking-related defendants referred for prosecution more than
doubled. Further, the average defendant sentenced in an ATF case faces
more than 100 months imprisonment, well above the 82-month average for
federal inmates convicted on weapons charges, according to Bureau of
Prisons data. This increase in special agent staffing will enhance ATF's
ongoing impact on firearms crime.

While specific locations have not yet been determined because of
changing crime patterns, ATF anticipates that some of the domestic
trafficking areas that are problematic now will continue to be so in the
future. ATF is using its analytical resources to provide justification
for the establishment of these teams in areas that would be best suited
to the goals of the teams. In addition to the Southwest border, other
areas that the Bureau is currently monitoring are:

-   The I-95 corridor between Miami and Boston.

-   Northern rural Mississippi to Chicago

-   Northern Indiana to Chicago

-   The triangle between Los Angeles, Las Vegas, and Phoenix

-   Birmingham to Chicago

ATF is attempting to balance the resources it devotes to fighting
violent crime and with those used to address the supply of firearms to
criminals. Successfully tackling the problem of firearms trafficking
requires a more comprehensive effort in order to be truly effective in
shutting down illegal markets in key areas.

[Impact on Performance (Relationship of Increase to Strategic
Goals)]{.underline}

This initiative supports Department of Justice Strategic Goal 2,
"Enforce Federal Laws and Represent the Rights of the American People."
ATF is currently working to develop an internal performance measure that
will demonstrate the impact of the firearms trafficking teams on the
communities they are intended to serve.

**Funding**

[Base Funding]{.underline}

<table>
<colgroup>
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 7%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="4"><p id="fy-2006-enacted" class="heading">FY 2006
Enacted</p></td>
<td colspan="4"><p id="fy-2007-estimate" class="heading">FY 2007
Estimate</p></td>
<td colspan="4"><p id="fy-2008-presidents-budget" class="heading">FY
2008 President’s Budget</p>
<p id="current-services" class="heading">Current Services</p></td>
</tr>
<tr class="even">
<td>Pos</td>
<td>Agt</td>
<td>FTE</td>
<td>$(000)</td>
<td>Pos</td>
<td>Agt</td>
<td>FTE</td>
<td>$(000)</td>
<td>Pos</td>
<td>Agt</td>
<td>FTE</td>
<td>$(000)</td>
</tr>
<tr class="odd">
<td>2,066</td>
<td>1,525</td>
<td>2,066</td>
<td>313,093</td>
<td>2,066</td>
<td>1,525</td>
<td>2,066</td>
<td>321,538</td>
<td>2,066</td>
<td>1,525</td>
<td>2,066</td>
<td>331,174</td>
</tr>
</tbody>
</table>

[Personnel Increase Cost Summary]{.underline}

+------------------------+---------+--------+---------+---------------+
| Type of Position       | Modular | Number | FY 2008 | FY 2009 Net   |
|                        | Cost    | of     |         |               |
|                        |         |        | Request | Annualization |
|                        | per     | Pos    |         |               |
|                        | P       | itions | (\$000) | (change from  |
|                        | osition |        |         | 2008)         |
|                        |         | Req    |         |               |
|                        |         | uested |         | (\$000)       |
+------------------------+---------+--------+---------+---------------+
| Special Agents         | 186,585 | 34     | \$6,344 | \$1,722       |
| (trafficking teams)    |         |        |         |               |
+------------------------+---------+--------+---------+---------------+
| Total Personnel        |         | 34     | \$6,344 | \$1,722       |
+------------------------+---------+--------+---------+---------------+

[Non-Personnel Increase Cost Summary]{.underline}

+-----------------------+--------+------+-------------+---------------+
| Non-Personnel Item    | Unit   | Quan | FY 2008     | FY 2009 Net   |
|                       | Cost   | tity | Request     |               |
|                       |        |      | (\$000)     | Annualization |
|                       |        |      |             |               |
|                       |        |      |             | (change from  |
|                       |        |      |             | 2008)         |
|                       |        |      |             |               |
|                       |        |      |             | (\$000)       |
+-----------------------+--------+------+-------------+---------------+
|                       |        |      | []{.mark}   | []{.mark}     |
+-----------------------+--------+------+-------------+---------------+

[Total Request for this Item]{.underline}

+--------------+----+-----+-----+----------+-----------+-----------+
| Item         | P  | Agt | FTE | P        | Non-      | Total     |
|              | os |     |     | ersonnel | Personnel |           |
|              |    |     |     | (\$000)  | (\$000)   | (\$000)   |
+--------------+----+-----+-----+----------+-----------+-----------+
| Grand Total  | 34 | 34  | 17  | \$6,344  | \$0       | \$6,344   |
+--------------+----+-----+-----+----------+-----------+-----------+

**Program Increase: [Project Safe Neighborhoods/Firearms Violence
Reduction ]{.underline}**

Budget Decision Unit(s): [Firearms Program]{.underline}

Strategic Goal(s) & Objective(s): Strategic Goal 2: Enforce Federal Laws
and Represent the Rights and Interests of the American People

Organizational Program: [Firearms]{.underline}

Program Increase: Positions \_[12\_]{.underline} Agt [12]{.underline}
FTE \_[6]{.underline} Dollars [\$2,240,000]{.underline}

[Description of Item]{.underline}

ATF is requesting 6 additional FTE (12 positions) and \$2.240 million to
contribute to the Bureau's gang and firearms enforcement efforts
supporting Project Safe Neighborhoods (PSN) nationwide. ATF will apply
these personnel to offices that have experienced an increase in firearms
violence, focusing on immediate reductions in violent crime by taking
violent criminals off the street and ensuring that any resulting leads
involving multi-defendant conspiracies and criminal organizations are
fully investigated.

ATF has been the primary federal enforcement agency supporting the PSN
strategy since its inception. ATF's current strategy under PSN is
already multifaceted and ATF is the only federal agency that has been
involved in gang prevention (through outreach programs such as the Gang
Resistance, Education and Training Program, participation in Boys and
Girls Clubs programs and the "Don't Lie for the Other Guy" campaign),
training (PSN Enforcement Training and PSN Site Support), as well as PSN
public service announcements and enforcement operations. Using the PSN
strategy, ATF partners with state and local law enforcement to
investigate the most egregious violent criminals and violent criminal
organizations. ATF special agents work with local police to identify the
"worst of the worst" gang members and target these violent offenders
first\--using undercover operations, surveillance, wiretaps and the
controlled purchase of drugs, guns, explosives and other contraband to
identify and attack the gang's hierarchy.

[Justification]{.underline}

ATF has been the lead federal law enforcement agency participating in
PSN since 2001, focusing on a wide range of firearms cases---those
involving Racketeer Influenced Corrupt Organization (RICO) violations,
firearms trafficking, and the criminal possession of firearms by
convicted felons. As the only federal agency that focuses exclusively on
violent crime and the regulation of commerce in firearms and explosives,
ATF exercises unique statutory authority over the "tools of the trade"
that make gangs a threat to public safety.

ATF has been successful in targeting high crime areas and dedicating
investigative, inspection, analytical and technological resources to
reduce violent crime in those areas. Nonetheless, the Preliminary
Uniform Crime Report for 2005 (recently released by the FBI) reports
increases in violent crime in many cities across the country.
Additionally, the President has identified violent street gangs as a
national problem and has instructed the Department to institute
strategies to address this problem. Through this proposal, ATF and DOJ
are acting decisively to reassure the American public that federal law
enforcement agencies are making every effort to investigate, reduce, and
prevent violent crime. This initiative will build upon proven,
successful tactics: integrating regulatory enforcement, investigation
techniques, and technology to impact violent crime. This increase in
special agent staffing will enhance ATF's ongoing impact on violent
crime. Between FY 2001 and FY 2005, ATF increased the number of
defendants referred for prosecution by 150 percent, and the number of
gang-related defendants referred for prosecution by more than 600
percent. Further, the average defendant sentenced in an ATF case faces
more than 100 months imprisonment, well above the 82-month average for
federal inmates convicted on weapons charges, according to Bureau of
Prisons data.

[Impact on Performance (Relationship of Increase to Strategic
Goals)]{.underline}

This initiative supports the Department of Justice's strategic goal two:
"Enforce Federal Laws and Represent the Rights of the American People."
ATF projects that convictions of violent criminals and firearms
traffickers will increase with the increase in additional staffing for
PSN enforcement efforts. 

**Funding**

[Base Funding]{.underline}

<table>
<colgroup>
<col style="width: 5%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 11%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 11%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="4"><p id="fy-2006-enacted-1" class="heading">FY 2006
Enacted</p></td>
<td colspan="4"><p id="fy-2007-estimate-1" class="heading">FY 2007
Estimate</p></td>
<td colspan="4"><p id="fy-2008-presidents-budget-1" class="heading">FY
2008 President’s Budget</p>
<p id="current-services-1" class="heading">Current Services</p></td>
</tr>
<tr class="even">
<td>Pos</td>
<td>Agt</td>
<td>FTE</td>
<td>$(000)</td>
<td>Pos</td>
<td>Agt</td>
<td>FTE</td>
<td>$(000)</td>
<td>Pos</td>
<td>Agt</td>
<td>FTE</td>
<td>$(000)</td>
</tr>
<tr class="odd">
<td>829</td>
<td>470</td>
<td>754</td>
<td>174,700</td>
<td>721</td>
<td>378</td>
<td>721</td>
<td>152,900</td>
<td>671</td>
<td>362</td>
<td>671</td>
<td>154,262</td>
</tr>
</tbody>
</table>

[Personnel Increase Cost Summary]{.underline}

+----------------------+----------+----------+------------+-----------+
| Type of Position     | Modular  | Number   | FY 2008    | FY 2009   |
|                      | Cost     | of       |            | Net       |
|                      |          |          | Request    |           |
|                      | per      | P        | (\$000)    | Annu      |
|                      | Position | ositions |            | alization |
|                      |          |          |            |           |
|                      |          | R        |            |           |
|                      |          | equested |            |           |
+----------------------+----------+----------+------------+-----------+
| Special agents (PSN) | 186,585  | 12       | \$2,240    | \$608     |
+----------------------+----------+----------+------------+-----------+
| Total Personnel      |          | 12       | \$2,240    | \$608     |
+----------------------+----------+----------+------------+-----------+

[Non-Personnel Increase Cost Summary]{.underline}

+-----------------------+--------+----------+-----------+------------+
| Non-Personnel Item    | Unit   | Quantity | FY 2008   | FY 2009    |
|                       | Cost   |          | Request   | Net        |
|                       |        |          | (\$000)   |            |
|                       |        |          |           | Ann        |
|                       |        |          |           | ualization |
+-----------------------+--------+----------+-----------+------------+
|                       |        |          | []{.mark} | []{.mark}  |
+-----------------------+--------+----------+-----------+------------+

[Total Request for this Item]{.underline}

+--------------+-----+------+----+--------+------------+------------+
| Item         | Pos | Agt  | F  | Per    | Non        | Total      |
|              |     |      | TE | sonnel | -Personnel |            |
|              |     |      |    | (      | (\$000)    | (\$000)    |
|              |     |      |    | \$000) |            |            |
+--------------+-----+------+----+--------+------------+------------+
| Grand Total  | 12  | 12   | 6  | \      | \$0        | \$2,240    |
|              |     |      |    | $2,240 |            |            |
+--------------+-----+------+----+--------+------------+------------+

**Program Increase: [GangTECC ]{.underline}**

Budget Decision Unit(s): [Firearms Program]{.underline}

Strategic Goal(s) & Objective(s): Strategic Goal 2: Enforce Federal Laws
and Represent the Rights and Interests of the American People

Organizational Program: [Firearms]{.underline}

Program Increase: Positions [2\_]{.underline} Agt [2]{.underline} FTE
\_[1]{.underline} Dollars [\$373,000]{.underline}

[Description of Item]{.underline}

ATF is requesting 1 FTE (2 positions) and \$0.373 million to be
dedicated to the National Gang Targeting, Enforcement, and Coordination
Center (GangTECC). The Department's new national anti-gang force is
comprised of multiple Department of Justice components and aimed at
facilitating law enforcement strategies and operations across agency
lines. Established by the Attorney General, GangTECC represents a
unified federal effort to help disrupt and dismantle the most
significant, violent, national and regional gangs. GangTECC brings
together representatives from all of the operational components of the
Department, as well as from other agencies. The center coordinates
overlapping investigations, ensures that tactical and strategic
intelligence is shared among law enforcement agencies, and serves as a
central coordinating center for multi-jurisdictional gang investigations
involving federal law enforcement agencies.

[Justification]{.underline}

Gangs are a serious threat to the safety of our communities. According
to the most recent National Youth Gang Survey, there are an estimated
760,000 gang members in the United States. Gangs continue to be the
primary drug distributors in the nation and continue to become more
sophisticated with their use of communications technology. In 2005,
there were 850 gang-related murders and gangs are operating in all major
cities and 87 percent of all cities with populations between 100,000 and
250,000.

GangTECC is a crucial tool in a unified, federal effort to combat the
most violent gangs in the United States. By sharing intelligence and
best practices and by assisting local law enforcement with additional
resources and expertise, GangTECC will provide federal law enforcement
agencies the capacity to more effectively battle the spread of gangs
across the country.

[Impact on Performance (Relationship of Increase to Strategic
Goals)]{.underline}

This initiative supports the Department of Justice's strategic goal two:
"Enforce Federal Laws and Represent the Rights of the American People."
By assisting in gang-related investigations and prosecutions, developing
a refined understanding of the national gang problem and proposing
appropriate countermeasure strategies, GangTECC has been influential in
the Department's efforts to combat gang activity. Just recently, the
center assisted in the capture and indictment of 13 gang members from La
Mara Salvatrucha, or MS-13, in Nashville Tennessee. ATF projects that
with additional resources for GangTECC, the center will be able to
expand its current capability to share intelligence and coordinate
investigations.

**Funding**

[Base Funding]{.underline}

<table style="width:100%;">
<colgroup>
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 1%" />
<col style="width: 5%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 9%" />
<col style="width: 9%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 11%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="5"><p id="fy-2006-enacted-2" class="heading">FY 2006
Enacted</p></td>
<td colspan="4"><p id="fy-2007-estimate-2" class="heading">FY 2007
Estimate</p></td>
<td colspan="4"><p id="fy-2008-presidents-budget-2" class="heading">FY
2008 President’s Budget</p>
<p id="current-services-2" class="heading">Current Services</p></td>
</tr>
<tr class="even">
<td>Pos</td>
<td>Agt</td>
<td colspan="2">FTE</td>
<td>$(000)</td>
<td>Pos</td>
<td>Agt</td>
<td>FTE</td>
<td>$(000)</td>
<td>Pos</td>
<td>Agt</td>
<td>FTE</td>
<td>$(000)</td>
</tr>
<tr class="odd">
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>$0</td>
</tr>
</tbody>
</table>

[Personnel Increase Cost Summary]{.underline}

+----------------------+----------+----------+------------+-----------+
| Type of Position     | Modular  | Number   | FY 2008    | FY 2009   |
|                      | Cost     | of       |            | Net       |
|                      |          |          | Request    |           |
|                      | per      | P        | (\$000)    | Annu      |
|                      | Position | ositions |            | alization |
|                      |          |          |            |           |
|                      |          | R        |            |           |
|                      |          | equested |            |           |
+----------------------+----------+----------+------------+-----------+
| GangTECC             | 186,585  | 2        | 373        | 101       |
+----------------------+----------+----------+------------+-----------+
| Total Personnel      |          | 2        | \$373      | \$101     |
+----------------------+----------+----------+------------+-----------+

[Non-Personnel Increase Cost Summary]{.underline}

+-----------------------+--------+----------+-----------+------------+
| Non-Personnel Item    | Unit   | Quantity | FY 2008   | FY 2009    |
|                       | Cost   |          | Request   | Net        |
|                       |        |          | (\$000)   |            |
|                       |        |          |           | Ann        |
|                       |        |          |           | ualization |
+-----------------------+--------+----------+-----------+------------+
|                       |        |          | []{.mark} | []{.mark}  |
+-----------------------+--------+----------+-----------+------------+

[Total Request for this Item]{.underline}

+--------------+-----+------+----+--------+------------+------------+
| Item         | Pos | Agt  | F  | Per    | Non        | Total      |
|              |     |      | TE | sonnel | -Personnel |            |
|              |     |      |    | (      | (\$000)    | (\$000)    |
|              |     |      |    | \$000) |            |            |
+--------------+-----+------+----+--------+------------+------------+
| Grand Total  | 2   | 2    | 1  | \$373  | \$0        | \$373      |
+--------------+-----+------+----+--------+------------+------------+

**B. Arson and Explosives**

  ---------------------------------------- ---------- ---------- ------------
  **Arson and Explosives TOTAL**           **Perm     **FTE**    **Amount**
                                           Pos.**                

  2006 Enacted w/Rescissions and           1,356      1,349      244,572
  Supplementals                                                  

  2007 Estimate                            1,356      1,361      232,593

  Adjustments to Base and Technical        \(38\)     \(43\)     21,042
  Adjustments                                                    

  2008 Current Services                    1,318      1,318      253,635

  2008 Program Increases                   0          0          10,000

  2008 Program Offsets                     0          0          0

  2008 Request                             1,318      1,318      263,635

  **Total Change 2007-2008**               **(38)**   **(43)**   **31,042**
  ---------------------------------------- ---------- ---------- ------------

**1. Program Description:**

ATF is the primary federal agency responsible for administering and
enforcing the regulatory and criminal provisions of federal laws
pertaining to destructive devices, explosives, and arson. One of ATF's
greatest strengths is its dual regulatory and criminal enforcement
mission. ATF has unique expertise in the investigation of fire, arson,
and explosives incidents, and the Bureau shares its expertise and
state-of-the-art resources with other federal, state, local, and foreign
law enforcement and fire service agencies. This strategy prevents and
allows for the investigation of criminal and terrorist acts involving
explosives or fire. ATF's law enforcement mission is supported by its
efforts to ensure that qualified and legitimate applicants enter the
explosives industry and that licensees employ proper recordkeeping and
business practices to help prevent thefts, explosives incidents, and the
acquisition of explosives for criminal or terrorist purposes. ATF works
closely with public safety officials, explosives industry members, and
state governments to provide guidance and instruction on all aspects of
the explosives laws, including the Safe Explosives Act, in an effort to
make regulation less burdensome and to promote compliance with federal
regulations.

**Arson and Explosives Enforcement Programs**

ATF provides specialists who are highly trained in investigating
post-blast scenes in response to explosives incidents.  ATF's special
agents investigate bombings, explosions, and potential acts of arson. 
The agents train federal, state, local, and international law
enforcement agencies on how to solve such crimes.  ATF is recognized for
its expertise in fire and explosives investigations, in conducting
research to help investigators reconstruct fire and explosives
incidents, and in conducting financial analyses to identify illegal
arson for profit schemes. ATF's expertise in arson investigation was
demonstrated by the apprehension of three individuals charged with
committing arsons at nine Alabama churches. ATF also investigates
incidents of explosives stolen from licensees, a particular concern
considering the threats of terrorism against U.S. citizens.

 

A comprehensive and integrated set of programs and resources supports
ATF's enforcement of the federal explosives laws. The National Response
Team (NRT) is designed to utilize ATF's expertise and experience in the
investigation of fire and explosives incidents to assist state and local
officers in reconstructing the scene, identifying the seat of the blast
or origin of the fire, conducting interviews, sifting through debris to
obtain evidence related to the explosion and/or fire, assisting with the
ensuing investigation, and providing expert court testimony. The NRT is
comprised of four geographically located response teams. The NRT can
respond to an incident within 24 hours and is comprised of veteran
special agents having post-blast and fire origin and cause expertise, as
well as special agent certified fire investigators (CFIs), special agent
certified explosives specialists (CESs), forensic chemists, explosives
enforcement officers (EEOs), fire research engineers, and accelerant and
explosives detection canines. Further complementing the team's efforts
are intelligence and audit support as well as technical and legal
advisors.

ATF brings the full weight of its expertise to the investigation of
explosives and fire incidents overseas through its International
Response Team (IRT) which is modeled after the NRT and consists of ATF's
most experienced investigators, technicians, and forensic experts. The
team is deployed at the request of the State Department.

ATF's Certified Fire Investigator (CFI) Program consists of special
agents who have undergone an extensive 2-year training program designed
to educate them in the field of advanced fire scene examination, with
emphasis on modern principles of fire dynamics. CFIs serve as ATF's
primary resource in fire-related matters. They conduct fire scene
examinations and render origin and cause determinations on behalf of
ATF, provide expert testimony on fire scene determinations, and provide
technical support and analysis to assist other special agents and
prosecutors with court preparation, presentation of evidence, and
technical interpretation of fire-related information. The agents lend
technical guidance in support of field arson investigative activities,
conduct arson-related training for ATF special agents and other federal,
state, and local fire investigators, and conduct research and to
identify trends and patterns in fire incidents.

The primary mission of ATF's CES program is to provide expert explosives
crime scene examinations, to lend expertise in support of security
measures implemented at special events, and to assist ATF's law
enforcement counterparts at the federal, state, local, and international
levels in their efforts to investigate explosives-related incidents.
ATF's CESs acquired expertise in post-blast analysis through years of
experience in the field. Their training consists of a multiphase program
that ensures their continued proficiency in all aspects of explosives
handling, instruction, identification, demonstration, and destruction,
as well as training in the chemistry of pyrotechnics, hazardous
materials incident response operations, advanced explosives destruction
techniques, and advanced improvised explosives devices (IED).

Explosives Enforcement Officers (EEO) are ATF's explosives technology
experts. EEOs have extensive experience in explosives and bomb disposal.
They render explosive devices safe and/or disassemble explosive and
incendiary devices, prepare destructive device determinations, and give
expert testimony in support of such determinations in state and federal
criminal court proceedings. EEOs provide expert analysis and onsite
investigative technical assistance at bomb scenes and at scenes where
explosions of an undetermined nature have occurred. Determining what
constitutes an explosive, incendiary, or destructive device under
federal explosives laws and the National Firearms Act involves highly
technical examinations and analysis. EEOs routinely provide expert
assistance and testimony in these areas. They also provide assistance
and training in all aspects of explosives handling, usage, and
destruction; threat vulnerability assessments; and all other
explosives-related matters for ATF, federal, state, local and
international law enforcement agencies.

ATF's explosives and accelerant detection canine program is a proactive
tool used in explosives and arson investigations, as well as in ensuring
security at special events. Special agent canine handlers are also
called as first responders when explosives threats are made against
individuals or property in the United States. These special agents apply
their investigative expertise, knowledge as CESs, and the most effective
explosives detection tool available today---their canines. Detection
canines are a critical asset to law enforcement at home and abroad.
ATF's canine training programs produce extremely reliable, mobile,
accurate, and durable explosives and accelerant detection tools, capable
of assisting law enforcement and fire investigators worldwide.
ATF-trained dogs are located throughout the United States in local
police departments, fire departments, fire marshal offices, and federal
and state law enforcement agencies. ATF works with agencies that have
received ATF-certified explosives detection and accelerant detection
canines and supports those that are without the services of such canines
in their communities.

A critical component of ATF's fire investigation efforts is ATF's Fire
Research Laboratory (FRL), which is a one-of-a-kind fire test facility
with the capability of replicating initial fire scenarios under
controlled conditions. This facility provides case support in fire
investigations using forensic fire science, and it will support ATF's
investigative requirements well into the future. The FRL is a unique and
innovative resource for law enforcement, fire services, public safety
agencies, industry, and academia, using the most advanced scientific,
technical, educational, and training methods to make ATF and its
partners leaders in fire investigation science.

ATF's forensic auditing capabilities are another important asset. ATF
develops and provides financial investigative, forensic accounting, and
financial expert witness capabilities in support of criminal and
regulatory investigations such as arson-for-profit, the use of
explosives and bombings in the furtherance of financial frauds, threats
to public safety, and alcohol and tobacco diversion investigations.
Industry relations and support are provided to several organizations
involved in arson-for-profit and explosives investigations. Auditors
provide pretrial depositions and expert witness testimony for state and
local governments and insurance companies.

ATF continues deployment of its Bomb Arson Tracking System (BATS), used
as a case management system by federal, state, and local agencies
investigating arsons, bombings, and other explosives incidents. ATF
developed BATS as a tool for law enforcement agencies so that they can
track their own investigations and share information with other
jurisdictions. This strategy helps in solving arsons and bombings and in
determining national trends and patterns. The system provides an
electronic gateway for law enforcement and fire service officials to
access the information collected in ATF's U.S. Bomb Data Center (The
Center), the repository for all domestic bombing incidents. The Center,
with an information management system containing more than 140,000 arson
and explosives incidents, provides intelligence to ensure the highest
degree of investigative coordination throughout the law enforcement
community. The Center also supports CESs and EEOs who are assigned to
the Combined Explosives Exploitation Cells (CEXC) in Iraq.

DFuze, ATF's international bombing incident database, allows
international law enforcement agencies to compare and exchange
information on explosives incidents via encrypted messages about
incidents, groups or individuals involved, vehicles used, power sources,
initiation system, and firearms. DFuze was developed in partnership with
ATF and the New Scotland Yard Bomb Data Centre and is already in use in
the United Kingdom**,** Northern Ireland, Mexico, Columbia, Hong Kong,
and Singapore. Embassies in Mexico City, Mexico, and Bogotá, Colombia,
are equipped with DFuze, as are several law enforcement agencies in
those countries, helping to combat the terrorist use of explosives
worldwide.

Through its participation in CEXC, ATF lends its expertise to U.S.
efforts in Iraq. Since March 2005, ATF has deployed personnel to support
CEXC activity within the U.S. Military Central Command. ATF explosives
experts provide onsite investigative assistance in processing post-blast
incidents directed at U.S. and allied forces.

ATF is a managing partner in the Terrorist Explosive Device Analytical
Center (TEDAC). This DOJ and DOD program is housed at the FBI Laboratory
in Quantico, VA with ATF serving in the Deputy Director position. The
TEDAC coordinates and manages the exploitation efforts of all IEDs of
interest to the U.S. government, in support of both offensive missions
against terrorism and force protection missions to suppress terrorist
bombings. At the TEDAC, ATF and other partners analyze explosive devices
from Iraq and Afghanistan in an effort to identify bombers and to
prevent further attacks. Experts technically evaluate IED components to
identify similarities and potential bomb makers, provide timely
intelligence to military and law enforcement, and collect latent prints
and DNA evidence from terrorist IEDs to link individuals to similar
devices. The TEDAC receives IED components and other physical items from
coalition partners and the branches of the U.S. military and provides a
full range of technical and forensic analysis. The TEDAC is a conduit
for first responders for receiving and sharing information from allies
of the United States.

Congress appropriated \$6 million in FY 2006 to provide ATF personnel to
supplement this center. ATF personnel will staff the Center which
exploits terrorist IEDs for technical and forensic purposes. ATF is in
full support of fusing all information derived from these efforts and
promoting improved collaboration and the exchange of life-saving
information among partner organizations.

ATF also works with the Department of State to conduct antiterrorism
assessments outside of the United States. As part of the State
Department team, ATF EEOs assess foreign bomb squads' capabilities,
equipment, training, and expertise and they address vulnerability issues
within U.S. embassies.

**Explosives Inspection and Regulatory Programs**

As with the firearms industry, ATF educates and inspects explosives
licensees and permittees to detect diversion, prevent thefts of
explosives, and identify and correct hazardous storage situations.  ATF
enforces the SEA of 2002, which controls access to explosives by
requiring all explosives purchasers to apply for a federal license or
permit and undergo background checks.  The SEA also requires a
background check of employees of explosives permittees and licensees who
will have access to explosives materials.  By enforcing the federal
explosives laws and regulating the explosives industry, ATF protects the
public from criminal acts, the unsafe storage of explosives, and
explosives incidents. 

ATF industry operations investigators (IOI) ensure that explosives
licensees and permittees comply with federal laws and regulations
related to storage, recordkeeping, and other business activities. Of
particular importance is ensuring that explosives licensees and
permittees take all the necessary steps to prevent explosives thefts
(and promptly report thefts that do occur) and that explosives are not
distributed to prohibited persons. ATF IOIs also check for proper
explosives storage to ensure there are no safety hazards by verifying
that the appropriate distances are maintained between storage bunkers
and surrounding structures and that bunkers are appropriately secured to
ensure public safety. When a significant safety hazard or loss of
explosives is discovered, IOIs can call upon any number of specialized
ATF personnel trained in remedying the hazard or investigating the loss.
In the event of willful violations, the IOIs may recommend the
revocation or denial of a license or permit or make a criminal referral.

**Outreach Activities**

ATF works with a variety of customers in providing services such as the
NRT, guidance, and advice to our arson programs customers and explosives
industry members. A 2005 survey found that customers of ATF's arson and
explosives programs and services are generally highly satisfied with ATF
and want more of what they are receiving: training, programs, agents,
and other ATF expertise.

ATF continues its efforts through the Explosives Threat Assessment and
Prevention Strategy (ETAPS). The ETAPS program was instituted in 2004 as
an enhanced inspection effort with the regulated explosives industry, as
well as an outreach program with retailers of non-regulated commodities
such as ammonium nitrate. ATF has held meetings with state fertilizer
control officials and distributed "America\'s Security Begins with You"
materials to ammonium nitrate outlets throughout the country. ATF also
conducted meetings with chemical company industry groups attempting to
implement voluntary measures similar to "America's Security Begins with
You," continued discussions with explosives industry groups about
security issues and voluntary security controls outside of the mandatory
regulatory controls, and began to develop an explosives industry
publication encouraging best business practices to reduce explosives
thefts.

ATF also continues to work with the Institute of Makers of Explosives
(IME) and the International Society of Explosives Engineers (ISEE) and
took steps to eliminate explosives losses by examining issues pertaining
to the inventory, security, and control of bulk products, including
ammonium nitrate. This project will continue into the future and will
expand to include packaged products. These agencies/associations have
also been working together to complete an ATF publication titled "Safety
and Security of Explosives Materials for Explosives Licensees and
Permittees." ATF, IME, and ISEE work together to increase safety and
security and examine new explosives identification and tracking
technologies as they become available.

ATF communicates with the fire and explosives investigation community
through arson and explosives advisories, the National Bomb Squad
Commander Advisory Board (NABSCAB) and the International Bomb Data
Center Working Group Portal (IBDCWG Portal) meetings. Each week, an
advisory provides information on ATF's arson and explosives
investigative activity. These advisories are distributed to other
federal, state, and local law enforcement agencies. ATF also publishes
explosives theft advisories and periodic advisories highlighting
specific or emerging threats to public safety or the bomb technician
community.

**National Center for Explosives Training and Research**

ATF cooperates fully with federal, state, and local government agencies
in a comprehensive effort to develop and maintain adequate domestic
preparedness against incidents involving explosives. ATF has long
maintained a reputation with federal, state, local and international
agencies, as well as the military, as being a hard-working partner. The
National Center for Explosives Training and Research (NCETR) further
advances this commitment by increasing explosives-related training
through our partnerships with other federal entities. However, present
demand exceeds ATF's capability. The NCETR promotes efficiency by
consolidating other DOJ and DOD explosives training expertise in one
location.

<table>
<colgroup>
<col style="width: 10%" />
<col style="width: 16%" />
<col style="width: 5%" />
<col style="width: 8%" />
<col style="width: 5%" />
<col style="width: 8%" />
<col style="width: 5%" />
<col style="width: 8%" />
<col style="width: 5%" />
<col style="width: 8%" />
<col style="width: 6%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="12"><strong>2. PERFORMANCE AND RESOURCES
TABLE</strong></td>
</tr>
<tr class="even">
<td colspan="12"><strong>Decision Unit: Arson &amp;
Explosives</strong></td>
</tr>
<tr class="odd">
<td colspan="12"><strong>DOJ Strategic Goal/Objective: Goal 1,
Objectives 1.1 and 1.2; Goal 2, Objective 2.1</strong></td>
</tr>
<tr class="even">
<td colspan="2"><strong>WORKLOAD/ RESOURCES</strong></td>
<td colspan="2"><strong>Final Target</strong></td>
<td colspan="2"><strong>Actual</strong></td>
<td colspan="2"><strong>Estimate</strong></td>
<td colspan="2"><strong>Changes</strong></td>
<td colspan="2"><strong>Requested (Total)</strong></td>
</tr>
<tr class="odd">
<td colspan="2"><blockquote>
<p> </p>
</blockquote></td>
<td colspan="2"><strong>FY 2006</strong></td>
<td colspan="2"><strong>FY 2006</strong></td>
<td colspan="2"><p><strong>FY 2007</strong></p>
<p><strong>Estimate</strong></p></td>
<td colspan="2"><strong>Current Services Adjustments and FY 2008
Program</strong></td>
<td colspan="2"><strong>FY 2008 Request</strong></td>
</tr>
<tr class="even">
<td colspan="2"><strong>Workload</strong></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
</tr>
<tr class="odd">
<td colspan="2">Number of explosives investigations initiated during
fiscal year</td>
<td colspan="2">N/A</td>
<td colspan="2">N/A</td>
<td colspan="2">2,214</td>
<td colspan="2">--</td>
<td colspan="2">2,214</td>
</tr>
<tr class="even">
<td colspan="2">Number of arson investigations initiated during fiscal
year</td>
<td colspan="2">N/A</td>
<td colspan="2">N/A</td>
<td colspan="2">1,834</td>
<td colspan="2">--</td>
<td colspan="2">1,834</td>
</tr>
<tr class="odd">
<td colspan="2" rowspan="2"><strong>Total Costs and FTE</strong></td>
<td><h4 id="fte">FTE</h4></td>
<td><strong>$000</strong></td>
<td><h4 id="fte-1">FTE</h4></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="even">
<td><strong>1,349</strong></td>
<td><strong>$244,572</strong></td>
<td><strong>1,394</strong></td>
<td><strong>$255,696</strong></td>
<td><strong>1,361</strong></td>
<td><strong>$232,593</strong></td>
<td><strong>(43)</strong></td>
<td><strong>$31,042</strong></td>
<td><strong>1,318</strong></td>
<td><strong>$263,635</strong></td>
</tr>
<tr class="odd">
<td rowspan="2"><strong>Program Activity</strong></td>
<td rowspan="2"><strong>Criminal investigations</strong></td>
<td><h4 id="fte-2">FTE</h4></td>
<td><strong>$000</strong></td>
<td><h4 id="fte-3">FTE</h4></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="even">
<td><strong>968</strong></td>
<td><strong>$193,984</strong></td>
<td><strong>931</strong></td>
<td><strong>$195,613</strong></td>
<td><strong>907</strong></td>
<td><strong>$177,938</strong></td>
<td><strong>(29)</strong></td>
<td><strong>$22,134</strong></td>
<td><strong>878</strong></td>
<td><strong>$200,072</strong></td>
</tr>
<tr class="odd">
<td>Explosives</td>
<td>NRT Satisfaction rating</td>
<td colspan="2">90%</td>
<td colspan="2">100%</td>
<td colspan="2">90%</td>
<td colspan="2">--</td>
<td colspan="2">90%</td>
</tr>
</tbody>
</table>

<table>
<colgroup>
<col style="width: 12%" />
<col style="width: 19%" />
<col style="width: 4%" />
<col style="width: 5%" />
<col style="width: 4%" />
<col style="width: 7%" />
<col style="width: 5%" />
<col style="width: 8%" />
<col style="width: 5%" />
<col style="width: 9%" />
<col style="width: 5%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="2"><strong>WORKLOAD/ RESOURCES</strong></td>
<td colspan="2"><strong>Final Target</strong></td>
<td colspan="2"><strong>Actual</strong></td>
<td colspan="2"><strong>Estimate</strong></td>
<td colspan="2"><strong>Changes</strong></td>
<td colspan="2"><strong>Requested (Total)</strong></td>
</tr>
<tr class="even">
<td><strong> </strong></td>
<td><strong> </strong></td>
<td colspan="2"><strong>FY 2006</strong></td>
<td colspan="2"><strong>FY 2006</strong></td>
<td colspan="2"><p><strong>FY 2007</strong></p>
<p><strong>Estimate</strong></p></td>
<td colspan="2"><strong>Current Services Adjustment and FY 2008
Program</strong></td>
<td colspan="2"><h5 id="fy-2008-request">FY 2008 Request</h5></td>
</tr>
<tr class="odd">
<td rowspan="2"><strong>Program Activity</strong></td>
<td rowspan="2"><strong>Regulatory compliance</strong></td>
<td><h4 id="fte-4">FTE</h4></td>
<td><strong>$000</strong></td>
<td><h4 id="fte-5">FTE</h4></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="even">
<td><strong>381</strong></td>
<td><strong>$50,588</strong></td>
<td><strong>463</strong></td>
<td><strong>$60,083</strong></td>
<td><strong>454</strong></td>
<td><strong>$54,655</strong></td>
<td><strong>(14)</strong></td>
<td><strong>$8,908</strong></td>
<td><strong>440</strong></td>
<td><strong>$63,563</strong></td>
</tr>
<tr class="odd">
<td>Explosives</td>
<td><p>Resolution of unsafe</p>
<p>explosives conditions by</p>
<p>inspection</p></td>
<td colspan="2">1,655</td>
<td colspan="2">3,931</td>
<td colspan="2">1,326</td>
<td colspan="2">510</td>
<td colspan="2">1,836</td>
</tr>
<tr class="even">
<td>Explosives</td>
<td><p>Number and percentage of</p>
<p>explosives licensee/permittees inspected 1/</p></td>
<td colspan="2">5,518 / 35%</td>
<td colspan="2">6,392 / 55%</td>
<td colspan="2">3,240 / 28%</td>
<td colspan="2">(327 / 3%)</td>
<td colspan="2">2,913 / 25%</td>
</tr>
<tr class="odd">
<td><strong>EFFICIENCY MEASURE</strong></td>
<td>Percent of forensic arson cases closed within 30 days</td>
<td colspan="2">50%</td>
<td colspan="2">60%</td>
<td colspan="2">55%</td>
<td colspan="2">--</td>
<td colspan="2">55%</td>
</tr>
<tr class="even">
<td></td>
<td>Percent of forensic explosives cases closed within 30 days</td>
<td colspan="2">35%</td>
<td colspan="2">35%</td>
<td colspan="2">35%</td>
<td colspan="2">--</td>
<td colspan="2">35%</td>
</tr>
<tr class="odd">
<td></td>
<td>Percent of perfected explosives applications acted on within 90
day</td>
<td colspan="10">The baseline for this measure is currently being
developed</td>
</tr>
<tr class="even">
<td><strong>OUTCOME</strong></td>
<td>Percentage reduction in public safety violations (recall
inspections)</td>
<td colspan="2">N/A</td>
<td colspan="2">75%</td>
<td colspan="2">75%</td>
<td colspan="2">--</td>
<td colspan="2">75%</td>
</tr>
</tbody>
</table>

> 1/ According to the SEA mandate to inspect explosives licensees and
> permittees at least once every 3 years, ATF had set a goal to inspect
> approximately one third of licensees/permittees each year. Based on a
> fluctuating population of approximately 12,000, this would normally
> mean about 4,000 inspections each year. (Although ATF did not meet the
> target for number of inspections, it did slightly exceed the target
> for percentage of inspections, at 33.7 percent.) However, FY 2006
> marks the third year since the enactment of the SEA, resulting in a
> large number of 3-year licenses requiring renewal. In accordance with
> the SEA, ATF must inspect 100 percent of licensees upon renewal.
> Although an unknown percentage of these licensees will not renew, the
> 5,518 target reflects the number of licenses currently scheduled for
> renewal in FY 2006.

<table style="width:100%;">
<colgroup>
<col style="width: 8%" />
<col style="width: 1%" />
<col style="width: 24%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="2"></td>
<td></td>
<td colspan="10"><strong>Performance Measure Table</strong></td>
</tr>
<tr class="even">
<td colspan="13"><strong>Decision Unit: Arson &amp;
Explosives</strong></td>
</tr>
<tr class="odd">
<td colspan="3" rowspan="2">Performance Report and Performance Plan
Targets</td>
<td><strong>FY 2000</strong></td>
<td><strong>FY 2001</strong></td>
<td><strong>FY 2002</strong></td>
<td><strong>FY 2003</strong></td>
<td><strong>FY 2004</strong></td>
<td><strong>FY 2005</strong></td>
<td colspan="2"><strong>FY 2006</strong></td>
<td><strong>FY 2007</strong></td>
<td><strong>FY 2008</strong></td>
</tr>
<tr class="even">
<td><strong>Actual</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Target</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Target</strong></td>
<td><strong>Target</strong></td>
</tr>
<tr class="odd">
<td><p><strong>Performance</strong></p>
<p><strong>Measure</strong></p></td>
<td colspan="2">Minimum satisfaction rating – National Response
Team</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>100%</td>
<td>100%</td>
<td>90%</td>
<td>100%</td>
<td>90%</td>
<td>90%</td>
</tr>
<tr class="even">
<td><p><strong>Performance</strong></p>
<p><strong>Measure</strong></p></td>
<td colspan="2">Resolution of unsafe explosives conditions by
inspection</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>1,235</td>
<td>1,821</td>
<td>1,655</td>
<td>3,943</td>
<td>1,326</td>
<td>1,836</td>
</tr>
<tr class="odd">
<td><p><strong>Performance</strong></p>
<p><strong>Measure</strong></p></td>
<td colspan="2">Number and percentage of explosives licensee/permittees
inspected</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>22%</td>
<td>33.7%</td>
<td>5518 / 35%</td>
<td>6,392 / 55%</td>
<td>3240 / 28%</td>
<td>2913 / 25%</td>
</tr>
<tr class="even">
<td><strong>Efficiency Measure</strong></td>
<td colspan="2">Percent of forensic arson cases closed within 30
days.</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>54%</td>
<td>45%</td>
<td>50%</td>
<td>60%</td>
<td>55%</td>
<td>55%</td>
</tr>
<tr class="odd">
<td><strong>Efficiency Measure</strong></td>
<td colspan="2">Percent of forensic explosives cases closed within 30
days</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>22%</td>
<td>35%</td>
<td>35%</td>
<td>35%</td>
<td>35%</td>
<td>35%</td>
</tr>
<tr class="even">
<td><strong>Efficiency Measure</strong></td>
<td colspan="2">Percent of perfected explosives applications acted on
within 90 days</td>
<td colspan="10">The baseline for this measure is currently being
developed</td>
</tr>
<tr class="odd">
<td><p><strong>OUTCOME</strong></p>
<p><strong>Measure</strong></p></td>
<td colspan="2">Percent reduction in public safety violations – recall
inspections</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>75%</td>
<td>75%</td>
<td>75%</td>
</tr>
</tbody>
</table>

**3. Performance, Resources, and Strategies**

a.  **Performance Plan and Report for Outcomes**

The arson and explosives decision unit contributes to the Department's
Strategic Goals 1 and 2. This unit complements ATF's firearms decision
unit with advanced investigative techniques, vigorous prosecution of
criminals, training and prevention strategies through law enforcement,
industry regulation, industry partnerships, technology, and the
reduction of public safety risks relative to regulated commodities.
Innovation, partnerships, and open communication are employed to fully
achieve this strategic goal.

ATF uses its unique investigative jurisdiction, skills, and assets to
assist other federal, state, and local public safety officials in the
fight against crime and violence. The explosives regulatory enforcement
program safeguards the public from explosives incidents caused by
improperly stored explosives materials. The program also minimizes
criminals' access and use of explosive materials by heightening
accountability and increasing the traceability of explosives materials,
all without posing undue burden on the explosives industry.

**b. Strategies to Accomplish Outcomes**

ATF dedicates the necessary resources in order to achieve specialized
expertise in fire and explosives investigation. This specialization
directs a concentration of resources toward providing effective
post-incident response and preventing the criminal use of explosives.
ATF is also committed to ensuring that its explosives inspection program
is effective and provides for public safety and security from the
unauthorized use of explosive materials.

Educating the industry on ATF policies and regulations, product storage
safety, and theft prevention, as well as inspecting more industry
members, remains an important element in securing public safety.
Specifically, continued liaison efforts with explosives industry
members, explosives licensees and permittees, the precursor chemical
industry, and public safety agencies will help mitigate the possibility
of terrorists obtaining explosives through the legal explosives
industry. With ATF's comprehensive approach to intensifying efforts in
investigating arson and criminal activities involving explosives, the
anticipated result is a greater number of convictions.

# Crosscutting Activities

ATF plays a major role in the prevention and investigation of violent
crimes, including those involving explosives and fire. ATF participates
in multi-agency efforts such as the JTTF and provides direct
investigative expertise to state and local public safety agencies. The
Arson and Explosives Incidents System provides valuable investigative
information and intelligence to share with ATF's federal, state, local,
and international law enforcement partners.

**c. Results of Program Assessment Rating Tool (PART) Reviews**

As noted earlier, the arson and explosives program areas were rated 82
out of 100 possible points for the FY 2006 PART review. This was
reviewed for program purpose, strategic planning, program management,
and program results.

**Program Increase: [Adjustment of Explosives Poundage Fee
Offset]{.underline}**

Budget Decision Unit(s): [Arson and Explosives]{.underline}

Strategic Goal(s) & Objective(s): [Strategic Goal 1, Prevent Terrorism
and Promote the Nation's Security,]{.underline} [Objective
1.1]{.underline}

[Goal 2, Enforce Federal Laws and Represent the Rights and Interests of
the American People,]{.underline}

[Objective 2.1,]{.underline}

Organizational Program: Bureau-wide

Program Increase: Positions [0]{.underline} Agt
**\_**[0]{.underline}**\_** FTE [\_\_0\_]{.underline} Dollars
[\$10,000,000]{.underline}

[Description of Item]{.underline}

The FY 2007 President's Budget request for ATF proposed a fee on
explosives manufactured in or imported into the U.S. This proposed
explosive poundage fee would have levied a fee of approximately 2 cents
per pound on these explosives. ATF's direct salaries and expense budget
authority was reduced by \$120 million and the explosives fee would have
been considered as offsetting collections. Congressional action to date
on the President's Budget request for FY 2007 has rejected the proposal.
The FY 2007 Estimate (which is based on the average of the Senate and
House passed marks less 1 percent) provides \$103.950 million of the
\$120 million. An additional \$10 million is being requested as a
program improvement.

[Justification]{.underline}

The proposal was not intended to reflect any specific change to ATF's
core explosives mission. The program increase of \$10 million targets
ATF's highest priorities which include Explosives Enforcement Activity,
Explosive Industry Operations, Canine Enforcement Activity and the Safe
Explosives Act implementation.

[Impact on Performance (Relationship to Strategic Goals)]{.underline}

Strategic Goal 1, Prevent Terrorism and Promote the Nation's Security.
Objective 1.1

Strategic Goal 2, Enforce Federal Laws and Represent the Rights and
Interests of the American People, Objective 2.1

ATF is the primary federal agency responsible for administering and
enforcing both the regulatory and criminal provisions of federal laws
pertaining to explosives. Without full funding, ATF's capacity to
regulate and enforce these laws will be reduced.

**Funding**

Base Funding

<table style="width:100%;">
<colgroup>
<col style="width: 6%" />
<col style="width: 7%" />
<col style="width: 6%" />
<col style="width: 9%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 7%" />
<col style="width: 14%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 13%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="4"><p id="fy-2006-enacted-3" class="heading">FY 2006
Enacted</p></td>
<td colspan="4"><p id="fy-2007-presidents-budget" class="heading">FY
2007 President’s Budget</p></td>
<td colspan="4"><p id="fy-2008-presidents-budget-3" class="heading">FY
2008 President’s Budget</p>
<p id="current-services-3" class="heading">Current Services</p></td>
</tr>
<tr class="even">
<td>Pos</td>
<td>Agt</td>
<td>FTE</td>
<td>$(000)</td>
<td>Pos</td>
<td>Agt</td>
<td>FTE</td>
<td>$(000)</td>
<td>Pos</td>
<td>Agt</td>
<td>FTE</td>
<td>$(000)</td>
</tr>
<tr class="odd">
<td>0</td>
<td>0</td>
<td>0</td>
<td>$0</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>($120,000)</td>
<td>0</td>
<td>0</td>
<td>0</td>
<td>$103,950</td>
</tr>
</tbody>
</table>

[Personnel Increase Cost Summary]{.underline}

+------------+------------+-------------+---------+------------------+
| Type of    | Modular    | Number of   | FY 2008 | FY 2009 Net      |
| Position   | Cost       |             |         |                  |
|            |            | Positions   | Request | Annualization    |
|            | per        |             |         |                  |
|            | Position   | Requested   | (\$000) | (change from     |
|            |            |             |         | 2008)            |
|            |            |             |         |                  |
|            |            |             |         | (\$000)          |
+------------+------------+-------------+---------+------------------+
| Total      |            |             |         |                  |
| Personnel  |            |             |         |                  |
+------------+------------+-------------+---------+------------------+

Non-Personnel Increase Cost Summary

+----------------+--------+----------+-------------+-----------------+
| Non-Personnel  | Unit   | Quantity | FY 2008     | FY 2009 Net     |
| Item           | Cost   |          | Request     |                 |
|                |        |          |             | Annualization   |
|                |        |          | (\$000)     |                 |
|                |        |          |             | (change from    |
|                |        |          |             | 2008)           |
|                |        |          |             |                 |
|                |        |          |             | (\$000)         |
+----------------+--------+----------+-------------+-----------------+
| Adjustment of  |        |          | \$10,000    |                 |
| Explosives     |        |          |             |                 |
| Poundage Fee   |        |          |             |                 |
| Offset         |        |          |             |                 |
+----------------+--------+----------+-------------+-----------------+
| Total          |        |          | \$10,000    |                 |
| Non-Personnel  |        |          |             |                 |
+----------------+--------+----------+-------------+-----------------+

[Total Request for this Item]{.underline}

+---------------+-----+-----+------+---------+------------+---------+
|               | Pos | Agt | FTE  | Pe      | Non        | Total   |
|               |     |     |      | rsonnel | -Personnel |         |
|               |     |     |      |         |            | (\$000) |
|               |     |     |      | (\$000) | (\$000)    |         |
+---------------+-----+-----+------+---------+------------+---------+
| Grand Total   |     |     |      |         | \$10,000   | \       |
|               |     |     |      |         |            | $10,000 |
+---------------+-----+-----+------+---------+------------+---------+

**C. Alcohol and Tobacco**

  ---------------------------------------- --------- --------- ------------
  **Alcohol and Tobacco TOTAL**            **Perm    **FTE**   **Amount**
                                           Pos.**              

  2006 Enacted w/Rescissions and           96        93        19,237
  Supplementals                                                

  2007 Estimate                            96        93        19,603

  Adjustments to Base and Technical        \(3\)     \(3\)     677
  Adjustments                                                  

  2008 Current Services                    93        90        20,280

  2008 Program Increases                   0         0         0

  2008 Program Offsets                     0         0         0

  2008 Request                             93        90        20,280

  **Total Change 2007-2008**               **(3)**   **(3)**   **677**
  ---------------------------------------- --------- --------- ------------

**1. Program Description**

ATF enforces federal criminal statutes that address the diversion of
alcohol and tobacco products in avoidance of local, federal, state,
and/or foreign tax revenue, including the Contraband Cigarette
Trafficking Act. Criminals, including organized crime groups and
individuals with ties to terrorist organizations, have increasingly
engaged in illegal trafficking of alcohol and tobacco products. The
proliferation of large-volume trafficking across international borders
and in interstate commerce to avoid taxes provides funding to criminal
enterprises, including terrorist organizations.

To address these problems, ATF conducts criminal and financial
investigations and collaborates with other law enforcement entities.
Further, ATF provides training to other federal, state, local, tribal,
and foreign law enforcement entities to increase their proficiency in
investigating these criminal groups.

ATF incorporates information on suspicious financial transactions into
each criminal tobacco diversion investigation and provides this
information to the appropriate High Intensity Financial Crime Area
(HIFCA) team. Current investigations identify instances of terrorist
groups forming alliances with tobacco trafficking to generate monies for
their organizations and activities. ATF has country attachés in Mexico,
Canada, and Colombia who receive, analyze, and transmit information
between ATF and their host governments relating to the commodities for
which ATF has regulatory and law enforcement authority. ATF's case
management system, NFOCIS, has been fully functioning since 1998 and
captures all of ATF's intelligence and investigative information. When
cases have aspects that pertain to questionable financial transactions,
NFOCIS enables the identification of non-profit organizations, charities
or any other individual or entity who misuses this status for criminal
or terrorist purposes. The use of NFOCIS to capture and share
information concerning terrorist funding through the illicit trafficking
of tobacco products via the exploitation of legitimate entities is a
prime example of how ATF identifies and tracks financial transactions,
institutions and entities that facilitate suspected terrorist
activities. As it pertains to cases that have suspicious financial
transactions as part of the investigation, special agents, analysts and
auditors continue to receive, analyze, and transmit information
concerning these suspicious transactions to the appropriate entities
strengthening existing terrorist screening tools.

ATF continues to collaborate with agencies in other areas of the world
that experience problems with U.S.-sourced firearms or with alcohol and
tobacco smuggling, such as Canada, China, Colombia, Europe, Mexico, and
the Caribbean. ATF participates in ongoing efforts that reduce the
illegal diversion of distilled spirits and tobacco products. Diversion
of these legal products on a massive scale to the black market within
the United States and abroad generates tremendous cash profits for the
criminal enterprises responsible for these schemes.

The profits are often used by criminal organizations to conduct other
criminal activities**,** such as smuggling illegal aliens, financing
terrorist groups, narcotics and firearms trafficking, and trafficking in
stolen properties. With the aim of combating this type of crime, ATF
develops intelligence with our partners in other federal, state,
international and local agencies, industry groups, and the scientific
community for collection, analysis, and dissemination of domestic
intelligence to fight alcohol and tobacco diversion. ATF's investigation
of alcohol and tobacco diversion activities is essential because of the
inherent interstate activity and limited state enforcement jurisdiction.

Enforcing Laws That Prohibit the Diversion of Alcohol and Tobacco
Products From Legimitate Commerce

ATF enforces federal criminal laws as they relate to alcohol and tobacco
diversion. ATF's investigative efforts reduce the source of funding to
criminal and terrorist organizations. ATF's efforts stem the increasing
loss of revenue to affected states and the federal government.

**Alcohol and Tobacco Diversion Programs**

The incentive to evade cigarette taxes rises dramatically with increased
tax rates, resulting in billions of dollars of lost revenue from
cigarette smuggling, cigarette diversion, stamp counterfeiting, and
Internet sales (currently more than 500 known sites). Current
investigations identify instances of terrorist groups forming alliances
with tobacco traffickers that generate monies used to support their
organizations and activities. Diversion activities often generate
tremendous cash profits that are then laundered to disguise the origin
of the money and to further other unlawful schemes. Criminal
organizations also use these profits to fund other criminal activities,
such as smuggling illegal immigrants and trafficking narcotics,
firearms, and stolen property.

One notable JTTF case from Detroit, Michigan, in which ATF played an
integral role, involves the March 2006 indictment of 19 individuals
suspected of operating an international racketeering conspiracy based in
Detroit, Michigan, through the illegal trafficking of contraband
cigarettes, among other items. The indictment stated that some of the
profits from the individuals' activities were channeled to the terrorist
group Hezbollah.

Although not as common as tobacco diversion, the smuggling of illegal
alcohol is a part of the moneymaking schemes used by organized criminal
enterprises. The encroachment of organized crime and other groups played
a pivotal role in moving alcohol through illegal channels. Enforcement
efforts on both the domestic and international front have contributed to
a reduction of illicit trade associated with tobacco and alcohol
diversion.

**Illegal Sales of Cigarettes over the Internet**

Both domestic and international tobacco industry members have encouraged
and supported ATF\'s investigations of cigarettes sold via the Internet.
ATF gained cooperation from major credit card companies, who have agreed
to take action to prevent the illegal sale of cigarettes over the
Internet by prohibiting and investigating the use of their credit cards
for online cigarette sale transactions.

An example of ATF's success in disrupting tobacco diversion is the
investigation of Otamedia Limited, which resulted in the largest tobacco
seizure in ATF's history. ATF investigated the unlawful sales of
cigarettes through a single Internet site and seized approximately
156,000 cigarette orders packaged for delivery to persons across the
United States. The estimated losses in federal and state tax revenue
resulting from this illegal operation exceeded \$425 million. ATF worked
with the U.S. attorney's office to conduct property seizures and to
initiate forfeitures and prosecutions.

Providing Federal, State, Local, and Foreign Agencies With the Tools
Needed to Identify Trafficking Schemes

ATF collects, evaluates, analyzes, and disseminates alcohol and tobacco
intelligence and information. Intelligence information and support is
both national and international in scope. Some of these
multi-jurisdictional investigations involve multi-million dollar
trafficking schemes.

ATF maintains constructive working relationships with state and local
governments and with members of the tobacco industry. ATF works with
these organizations on matters of mutual concern, including counterfeit
cigarettes, Internet cigarette sales, and counterfeit tax stamps.

<table>
<colgroup>
<col style="width: 12%" />
<col style="width: 18%" />
<col style="width: 5%" />
<col style="width: 9%" />
<col style="width: 3%" />
<col style="width: 8%" />
<col style="width: 3%" />
<col style="width: 9%" />
<col style="width: 3%" />
<col style="width: 9%" />
<col style="width: 5%" />
<col style="width: 11%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="12"><strong>2. PERFORMANCE AND RESOURCES
TABLE</strong></td>
</tr>
<tr class="even">
<td colspan="12"><strong>Decision Unit: Alcohol and
Tobacco</strong></td>
</tr>
<tr class="odd">
<td colspan="12"><strong>DOJ Strategic Goal/Objective: Goal 2, Objective
2.1</strong></td>
</tr>
<tr class="even">
<td colspan="2"><strong>WORKLOAD/ RESOURCES</strong></td>
<td colspan="2"><strong>Final Target</strong></td>
<td colspan="2"><strong>Actual</strong></td>
<td colspan="2"><strong>Estimate</strong></td>
<td colspan="2"><strong>Changes</strong></td>
<td colspan="2"><strong>Requested (Total)</strong></td>
</tr>
<tr class="odd">
<td colspan="2"></td>
<td colspan="2"><strong>FY 2006</strong></td>
<td colspan="2"><strong>FY 2006</strong></td>
<td colspan="2"><p><strong>FY 2007</strong></p>
<p><strong>Estimate</strong></p></td>
<td colspan="2"><strong>Current Services Adjustments and FY 2008
Program</strong></td>
<td colspan="2"><strong>FY 2008 Request</strong></td>
</tr>
<tr class="even">
<td colspan="2"><h4 id="workload">WORKLOAD</h4></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
</tr>
<tr class="odd">
<td colspan="2">Number of Alcohol and Tobacco investigations initiated
during fiscal year</td>
<td colspan="2">N/A</td>
<td colspan="2">135</td>
<td colspan="2">135</td>
<td colspan="2"></td>
<td colspan="2">135</td>
</tr>
<tr class="even">
<td colspan="2" rowspan="2"><strong>Total Costs and FTE</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="odd">
<td><strong>93</strong></td>
<td><strong>$19,237</strong></td>
<td><strong>70</strong></td>
<td><strong>$17,496</strong></td>
<td><strong>93</strong></td>
<td><strong>$19,603</strong></td>
<td><strong>(3)</strong></td>
<td><strong>$677</strong></td>
<td><strong>90</strong></td>
<td><strong>$20,280</strong></td>
</tr>
<tr class="even">
<td rowspan="2"><strong>Program Activity</strong></td>
<td rowspan="2"><strong>Criminal investigations</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="odd">
<td><strong>93</strong></td>
<td><strong>$19,237</strong></td>
<td><strong>70</strong></td>
<td><strong>$17,496</strong></td>
<td><strong>93</strong></td>
<td><strong>$19,603</strong></td>
<td><strong>(3)</strong></td>
<td><strong>$677</strong></td>
<td><strong>90</strong></td>
<td><strong>$20,280</strong></td>
</tr>
<tr class="even">
<td><strong>EFFICIENCY MEASURE</strong></td>
<td><strong>Average dollar value of tobacco seizures</strong></td>
<td colspan="2">$6,316</td>
<td colspan="2">$82,752</td>
<td colspan="2">$30,000</td>
<td colspan="2">--</td>
<td colspan="2">$30,000</td>
</tr>
<tr class="odd">
<td><strong>OUTCOME</strong></td>
<td><strong>Number defendants convicted (Alcohol and Tobacco)
1/</strong></td>
<td colspan="2">50</td>
<td colspan="2">98</td>
<td colspan="2">50</td>
<td colspan="2">--</td>
<td colspan="2">50</td>
</tr>
</tbody>
</table>

1/ Current ATF investigations have identified instances of terrorist
groups forming alliances with tobacco traffickers to generate monies
used to support their organizations and activities. Diversion activities
are extremely complex investigations since they generate tremendous cash
profits that are then laundered to disguise the origin of the money and
to further other unlawful schemes. Based upon this knowledge, ATF has
determined that the use of this as a measure of program effectiveness is
not recommended. The identification of groups that traffic in tobacco is
vastly different than the identification of other type of crime groups.
(e.g., Mafia) based upon the nature of their criminal activities. ATF is
looking at other means by which to measure effectiveness but are
presently using workload data.

<table>
<colgroup>
<col style="width: 12%" />
<col style="width: 11%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 7%" />
<col style="width: 8%" />
<col style="width: 7%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="12"><strong>Performance Measure Table</strong></td>
</tr>
<tr class="even">
<td colspan="12"><strong>Decision Unit: Alcohol and
Tobacco</strong></td>
</tr>
<tr class="odd">
<td colspan="2" rowspan="2"><strong>Performance Report and Performance
Plan Targets</strong></td>
<td><strong>FY 2000</strong></td>
<td><strong>FY 2001</strong></td>
<td><strong>FY 2002</strong></td>
<td><strong>FY 2003</strong></td>
<td><strong>FY 2004</strong></td>
<td><strong>FY 2005</strong></td>
<td colspan="2"><strong>FY 2006</strong></td>
<td><strong>FY 2007</strong></td>
<td><strong>FY 2008</strong></td>
</tr>
<tr class="even">
<td><strong>Actual</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Target</strong></td>
<td><strong>Actual</strong></td>
<td><strong>Target</strong></td>
<td><strong>Target</strong></td>
</tr>
<tr class="odd">
<td><p><strong>EFFICIENCY</strong></p>
<p><strong>MEASURE</strong></p></td>
<td>Average dollar value of tobacco seizures<a href="#fn1"
class="footnote-ref" id="fnref1"
role="doc-noteref"><sup>1</sup></a></td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>$6,353</td>
<td>$6,316</td>
<td>$82,752</td>
<td>$30,000</td>
<td>$30,000</td>
</tr>
<tr class="even">
<td><strong>OUTCOME MEASURE</strong></td>
<td>Number of defendants convicted (Alcohol and Tobacco)</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td><p>New</p>
<p>for</p>
<p>2004</p></td>
<td>72</td>
<td>50</td>
<td>50</td>
<td>98</td>
<td>50</td>
<td>50</td>
</tr>
<tr class="odd">
<td colspan="12"></td>
</tr>
<tr class="even">
<td colspan="12"><strong>N/A = Data unavailable</strong></td>
</tr>
<tr class="odd">
<td colspan="12"></td>
</tr>
</tbody>
</table>
<aside id="footnotes" class="footnotes footnotes-end-of-document"
role="doc-endnotes">
<hr />
<ol>
<li id="fn1"><p>Beginning in FY-08, Average Dollar value will be
calculated by using the dollar value of total seizure divided by the
number of cases in which a seizure is made.<a href="#fnref1"
class="footnote-back" role="doc-backlink">↩︎</a></p></li>
</ol>
</aside>

**3. Performance, Resources, and Strategies**

**a. Performance Plan and Report for Outcomes**

This program area counters the funding of violent activities through the
use of revenues gained from smuggling alcohol and tobacco products by
organized crime, terrorist sympathizers, and tax evasion for profit
schemes. ATF measures criminal investigations of alcohol and tobacco
diversion. In terms of customer service, we strive to maintain a high
satisfaction rate among state and local jurisdictions as well as
international law enforcement agencies as we prevent tax revenue losses
and stop illicit product trafficking from one state to another.

### b. Strategies to Accomplish Outcomes

ATF serves as the primary federal law enforcement agency in the
investigation of the diversion of alcohol and tobacco products. Armed
with investigative and technical expertise, ATF investigates and
dismantles schemes involving alcohol and tobacco products, which
primarily focus on diversion from high tax jurisdictions to low tax
jurisdictions.

ATF will continue to partner with other federal, state, local, and
international law enforcement agencies to combat the illegal diversion
of alcohol and contraband cigarette trafficking. This objective will be
accomplished by sharing intelligence and investigative information and
by providing comprehensive training to our partners to increase their
proficiency in identifying and investigating alcohol and tobacco
criminal activity. ATF will also train its enforcement partners in
maximizing the usage of federal forfeiture statutes in order to divest
groups of assets derived from diversion and trafficking activity. ATF's
presence in the alcohol diversion and contraband cigarette trafficking
arena is fundamental to assisting state, local, and international
governments with collecting and recovering tax revenue losses resulting
from this criminal activity. ATF's focus on the investigation of alcohol
diversion and contraband cigarette trafficking will remain an integral
component of our enforcement efforts with an anticipated result of a
greater number of convictions and the collection and recovery of tax
revenue and forfeiture of proceeds of these crimes.

Crosscutting Activities

ATF participates in multi-agency efforts such as the Framework
Convention on Tobacco Control, the Federation of Tax Administrators, and
the Canadian/United States working group to address illicit alcohol
diversion and contraband cigarette trafficking activity. In addition,
ATF fosters effective working relationship with alcohol and tobacco
industry members.

### Alcohol and Tobacco Information Technology

ATF is pursuing several information technology projects that will
advance the investigation of alcohol and tobacco diversion. One example
is the Law Enforcement Information Sharing Program (LEISP) project.
LEISP reduces redundancy, makes information in disparate systems
accessible, and creates an infrastructure to share information
efficiently and seamlessly with our federal, state, and local law
enforcement partners. LEISP enhances the ability of agents and industry
operations investigators to share investigative information in order to
link and solve complex alcohol and tobacco diversion crimes.

[^1]: This figure includes all firearms investigations, including NICS
    investigations forwarded to ATF field offices from ATF's Brady
    Operations Branch.