**Congressional Budget Submission**

Fiscal Year 2009

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DEPARTMENT OF JUSTICE

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

February 2008

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# Table of Contents

Page No.

**I. Overview** 1

**II. Summary of Program Changes** 18

**III. Appropriations Language and Analysis of Appropriations Language**
19

IV\. Decision Unit Justification

A. Firearms

1.  Program Description 21

2.  Performance Tables 29

3.  Performance, Resources, and Strategies 33

    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 39

2.  Performance Tables 47

3.  Performance, Resources, and Strategies 50

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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 56

3.  Performance, Resources, and Strategies 58

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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.  **e-Gov Initiatives** 60

VI. **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 2007 Availability

G.  Crosswalk of 2008 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 for the Bureau of Alcohol, Tobacco, Firearms and
Explosives**

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

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) requests
\$1,027,814,000 and 4,942 full time equivalents (FTE) for FY 2009. The
request includes \$1,026,866,000 and 4,936 FTE for current services and
\$948,000 and 6 FTE for program improvements in the salaries and expense
accounts. The FY 2009 request supports the Department's priorities to
detect and prevent terrorism, combat violent crime and support the
President's Management Agenda (PMA) items, including human capital**,**
financial performance, E-government, and budget/performance integration.

In support of these priorities, this budget request focuses upon ATF's
unique capabilities to:

-   Disrupt and prevent the use of firearms and explosives in terrorist
    acts;

-   Reduce the incidence and impact of violent gang activity in our
    communities;

-   Assist state and local law enforcement organizations and agencies in
    fighting violent crime;

-   Advance intelligence sharing among law enforcement agencies and the
    intelligence community with enhanced information technology; and

-   Improve efficiencies in managing financial and human resources.

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/2009justification/>.

**B. Mission and Strategic Goals**

ATF is among the principal law enforcement agencies 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.  ATF is committed to
working directly, and through partnerships, to detect and prevent acts
of terrorism, investigate and reduce crime involving firearms,
explosives, and acts of arson, and prevent the illegal trafficking of
alcohol and tobacco products.

The coordinated and cooperative 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. This teamwork enables ATF to ensure that licensees are
operating within established laws and regulations. This synergy is
further enhanced by partnerships with industry groups, international,
State and local governments, and other federal agencies.

ATF's expertise in investigating firearms, explosives, and arson crimes
and providing state-of-the-art forensic analyses of criminal evidence is
a particularly valuable asset in the Administration's efforts to keep
citizens and neighborhoods safe. This expertise significantly
contributes to the war against global terrorism by supporting national
counterterrorism strategies and by establishing partnerships and
cooperative working relationships with members of the international law
enforcement community. ATF's technology resources and knowledge are
available to agencies at every level of government, domestically as well
as internationally, to assist in preventing, detecting, disrupting, and
prosecuting criminal activity and terrorism. To complete our mission,
ATF relies upon information sharing partnerships with other domestic and
international law enforcement agencies to provide accurate and timely
intelligence support.

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

> Objective 1.2: Strengthen partnerships to prevent, deter, and respond
> to terrorist incidents.

The terrorist attacks of September 11, 2001 highlighted the importance
of ATF's role in enforcing the criminal and regulatory provisions of
federal firearms and explosives laws, and in preventing and deterring
the use of firearms and explosives by criminals and terrorists. Like the
Transportation Security Administration, the U.S. Customs and Border
Protection, and the U.S. Immigration and Customs Enforcement, ATF's
mission has a multi-dimensional impact. ATF's regulatory and enforcement
efforts deter the transfer of weapons to criminals and terrorists,
interrupt supply chains, and disrupt grey and black market weapons
sales.

ATF plays a key role in DOJ's counterterrorism responsibilities as set
forth in the Administration's National Implementation Plan for the War
on Terror (NIP) and in DOJ's supporting plan for the NIP.  The impact of
ATF's investigative and regulatory programs may include the detection
and deterrence of terrorist use of firearms, other conventional weapons
and explosives.  ATF is the only federal agency with the statutory
authority to license and inspect firearms dealers, approve import
permits for firearms and explosives 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, ATF prevents prohibited persons from acquiring
and possessing firearms and explosives, which could be used in acts of
terrorism.  ATF also disrupts the illegal trafficking of alcohol and
tobacco products, the proceeds of which have been traced to terrorist
organizations.

An ATF supervisory special agent serves as the Deputy Director for the
Terrorist Explosive Device Analytical Center (TEDAC). The TEDAC is
supported by ATF and FBI special agents, intelligence analysts,
certified explosives specialists, and other personnel with specialized
training, who assist in the technical and forensic exploitation of
improvised explosive devices (IEDs) 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 information about IEDs and components, and is 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 coalition partners (United
Kingdom, Australia, etc.) to create an international network of IED
information, centralized at TEDAC, to suppress global terrorist
bombings.

ATF's 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 on arson and explosives
incidents to solve crimes and determine national trends and patterns.

ATF developed a collaborative, information sharing portal. The portal is
limited to law enforcement agency bomb data centers that are members of
the International Bomb Data Center Working Group (IBDCWG), an
international working group of law enforcement bomb data centers from
around the world. Its objective is to share technical information to
address critical incidents, involving explosives or other means, and
planned or actual terrorist attacks. The Portal also includes the
ability to exchange encrypted information in live "chat" forums.

D-Fuze, ATF's international bombing database, allows international law
enforcement agencies to compare and exchange information on explosives
incidents. D-Fuze was developed in partnership with the New Scotland
Yard Bomb Data Centre in the United Kingdom.

ATF trains explosives detection canines (EDC) and handlers for its use
and for other federal, State, local, and international partners, the
latter in partnership with the State Department's Office of
Anti-Terrorism Assistance program. 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
helped locate hidden explosives and weapons in enforcement actions
conducted by host governments against terrorist groups.

ATF participates in a number of additional efforts and activities that
support the Attorney General's counterterrorism efforts, including
supporting the Joint Terrorism Task Forces (JTTF) and the Law
Enforcement Information Sharing Program (LEISP) with both investigative
and intelligence resources. Additionally, ATF has established
partnerships in the explosives arena with the New Scotland Yard,
Anti-Terrorist Branch. A New Scotland Yard Anti-Terrorism detective will
be placed in the TEDAC to create an information exchange between the
United States and the United Kingdom to help deter future terrorist bomb
attacks. Research partnerships between forensic scientists from both
agencies are underway to examine new homemade explosives used by
terrorists. Those explosives are being characterized for their explosive
properties and effects and for forensic evidentiary value.

Internationally, ATF has strategically placed assets in the Western
Hemisphere, forming a first line of defense and early warning presence
to address terrorism and other transnational threats such as gangs and
firearms-related violence arising from drug trafficking organizations
(DTOs). ATF international offices in Canada, Mexico, and Colombia work
in close partnership with law enforcement counterparts in those
countries to combat criminal activity, firearms trafficking schemes and
acts of terrorism. ATF's National Tracing Center Division traces
thousands of U.S.-sourced firearms recovered in crimes in over 50
different countries in order to provide investigative leads leading to
illegal trafficking sources. Successes include the establishment of the
Center for Anti-Explosives Information and Firearms Tracing (CIARA) in
Colombia, which is a firearms and explosives tracing center modeled
after ATF's National Tracing Center Division and the U.S. Bomb Data
Center. CIARA is the first of its kind in South America and will serve
as a model for such centers in Central and South America as well as the
Caribbean Basin.

ATF also supports the global war against terrorism by deploying special
agents to theaters of conflict in Iraq, helping to build that country's
law enforcement infrastructure through participation in the Regime
Crimes Liaison Office, the Major Crimes Task Force, the Law and Order
Task Force, and the Combined Explosives Exploitation Cells, as well as
by providing training and investigative support. ATF intends to
establish a presence in Iraq by establishing an attaché office supported
by special agents and an intelligence specialist.

At the request of the State Department, ATF strategically utilizes its
International Response Team (IRT) to provide technical and investigative
assistance in international explosives and fire incidents. The IRT has
responded to 27 incidents since its inception in 1991, and in April 2007
the IRT responded to Paramaribo, Suriname, to assist with rendering safe
an explosive device.

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

> Objective 2.2: Reduce the threat, incidence, and prevalence of violent
> crime

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

-   Prevent violent crime involving firearms;

-   Resolve and prevent explosives and fire-related crimes; and

-   Prevent illegal domestic and international trafficking of alcohol
    and tobacco products.

*Integrated Violence Reduction Strategy*

The majority of ATF's domestic programmatic resources are devoted to the
Integrated Violence Reduction Strategy (IVRS) in support of the
Administration's Project Safe Neighborhoods (PSN) initiative, which
targets violent firearms offenders. These offenders are often gang
members and armed narcotics traffickers, and ATF has extensive
experience investigating these criminals. Through the creation of
grassroots partnerships in communities where firearms crimes threaten
the quality of life, PSN acts as a catalyst in developing localized
strategies that vigorously enforce existing firearms laws.

The Violent Crime Impact Team (VCIT) initiative, a focused component of
PSN, pursues violent criminals to reduce the occurrence of homicides 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's strategy is readily
adaptable to the specific violent crime problem in a particular area,
whether through complex long-term investigations of violent street
gangs/organizations or street level enforcement efforts against violent
offenders. Through programs under IVRS (such as VCIT), 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's IVRS involves investigating not only those directly responsible
for committing armed violence in our communities, but also those
responsible for fueling this violence by illegally supplying firearms to
others prohibited from possessing them (e.g., felons, violent gang
members, juveniles). ATF's firearms trafficking programs under IVRS
deter 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 for prosecution those who
illegally supply firearms to prohibited possessors. Violent gang members
-- a primary enforcement concern -- are often involved in firearms
trafficking, both in furtherance of drug trafficking activities and for
use in committing crimes. ATF's strategy in combating gangs includes
targeting the most egregious violent criminals by relying on
partnerships with local law enforcement, developing appropriate
investigative strategies, and enforcing federal statutes such as the
Racketeer Influenced and Corrupt Organizations Act (RICO) and the Armed
Career Criminal statute.

*Gang Violence*

ATF employs a comprehensive law enforcement approach to combat gang
violence that includes prevention, community outreach, training, and
intelligence analysis, and coordinates its 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 Nashville
resulted in the arrest and indictment of 13 subjects on racketeering
conspiracy charges, with predicate acts including three homicides,
numerous other shootings, and other violent crimes. Judicial action is
ongoing for these defendants.

The Deputy Attorney General has directed ATF and other DOJ components to
assign special agents to participate in the National Gang Targeting,
Enforcement, and Coordination Center (GangTECC), the Department's new
national anti-gang task force comprised of multiple DOJ components. An
ATF special agent is currently assigned as the Deputy Director of
GangTECC, along with two additional senior special agents. The Center
facilitates the exchange of law enforcement strategies and operations
across agency lines.  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 Attorney General has initiated a number of initiatives to address
the violence and threat of transnational gangs such as MS-13. Many of
these members are located in Central America with close ties to
operatives in the U.S. Gang criminal activity and violence threatens
communities in the U.S. and significantly impacts our Central American
neighbors and other countries in the Western Hemisphere. For this
reason, the Attorney General has promulgated bilateral initiatives with
countries such as El Salvador in order to meet this threat. ATF supports
such initiatives by collaborating with the International Law Enforcement
Academy (ILEA) in San Salvador to develop a gang curriculum to train
international law enforcement partners in the effective investigation of
gang members.

*Southwest Border*

Similarly, ATF's Southwest Border Strategy supports the Department's
Southwest Border (Narcotrafficking) Initiative by specifically
addressing the firearms-related violence perpetrated by warring drug
trafficking organizations (DTO) in border cities such as Laredo, Texas,
and Nuevo Laredo, Mexico. Through bilateral forums such as the annual
Senior Law Enforcement Plenary sessions with Mexico, ATF and the Mexican
Government jointly develop operational strategies and policies to
minimize the firearms-related violence afflicting communities on both
sides of the border. ATF's Mexico City Office has developed working
partnerships with Mexican law enforcement counterparts, and in FY 2008
will provide needed training and other assets such as ATF's eTrace
system to help the Mexican government effectively counteract the
firearms related violence caused by DTOs. ATF plans to increase its
firearms interdiction efforts against these violent DTOs operating along
the border with Mexico by expanding its deployment of eTrace in Mexico
to the nine U.S. Consulates and 31 Mexican States, as well as increase
its presence with additional special agents stationed in border cities
in Mexico such as Monterrey, Hermosillo and Guadalajara. Additionally,
ATF plans to add, using base resources, four intelligence research
specialists (IRSs) and two investigative assistants to the El Paso
Intelligence Center (EPIC) to support the strategy, along with one
additional IRS for each of the four border field divisions. In FY 2009,
ATF is requesting \$948,000 and 6 FTEs to enhance firearms industry
inspections and to reduce the flow of illegally trafficked firearms in
the SW Border region.

*Regulation*

ATF ensures that the firearms and explosives industries comply with
federal laws and regulations and provides safety information to those
industries and to the public. In addition to these regulatory compliance
activities that promote community, law enforcement, and industry
partnerships, ATF sponsors 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, special agent certified fire
investigators, technical specialists that serve as explosives
enforcement officers, and laboratories with a range of forensic
capabilities.

ATF enforces the Gun Control Act (GCA) and the National Firearms Act
(NFA). Inspections of Federal Firearms Licensees (FFLs) verify that
licensees are complying with the provisions of the GCA 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. The NFA
requires that firearms makers, importers, and manufacturers register the
NFA firearms they make or import, and that ATF approves 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 tax for the making or transfer of 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. ATF also continually provides technical information to the
industry and the public concerning compliance with the NFA.

ATF enforces the Safe Explosives Act of 2002 (SEA) which reflected
Congressional intent to close a loophole in the regulation of explosives
commerce. In order to prevent prohibited persons from gaining access to
explosive materials, the SEA expanded the scope of the federal
explosives regulations administered by ATF by placing controls on the
intrastate movement of explosives and mandating background checks on
employees of explosives licensees and those who acquire explosives.

The United States produces or imports approximately six billion pounds
of explosive materials annually. Each year, eight billion pounds of
ammonium nitrate are produced, of which half is used for explosives.
Illegal use of these materials threatens the Nation's public safety.
ATF's enforcement of explosives laws and regulations helps prevent
thefts and the acquisition and use of explosives for criminal or
terrorist purposes. Additionally, ATF and the Fertilizer Institute
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
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 interstate commerce to avoid taxes provides
increased funding to terrorist organizations and traditional criminal
enterprises. This trafficking also robs federal and State governments of
important tax-based funding. An estimated \$3.5 billion in tax revenue
is lost annually to States and the federal government as a result of the
diversion of tobacco products. 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.

*International Activities*

ATF enforces the National Firearms Act (NFA), as well as the import
provisions of the Arms Export Control Act (AECA) and works closely with
the Department of Homeland Security (DHS) to monitor firearms imports
and exports to ensure that their international movement is consistent
with the law. ATF is the principal DOJ component involved in efforts to
combat the illicit manufacturing and trafficking of firearms, their
parts and components, and ammunition and explosives in a number of
international forums including the United Nations and the Organization
of American States (OAS). 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 State Department's International Law
Enforcement Academy program (ILEA), which encourages cooperation among
participating countries and other U.S. Government agencies. Currently,
an ATF special agent serves as the Deputy Director at the ILEA in
Bangkok, Thailand. In addition, ATF has established a new position in
EUROPOL in The Hague, Netherlands.

ATF, through its international offices, has implemented bilateral
initiatives to help reduce violent crime at home and in neighboring
countries. For example, firearms publications and posters, in French and
English, advise Canadian and U.S. citizens traveling between these
countries to be aware of pertinent firearms laws, requirements and
associated penalties. ATF's Canadian Office was also instrumental in
developing a memorandum of understanding (MOU) with Canadian officials
related to ballistic tracing and interconnectivity of data systems. The
MOU facilitates sharing leads and other information in real time and
exploiting ballistic evidence recovered at crime scenes. This MOU was
signed by the Attorney General and the Canadian Minister for Public
Safety at the 9^th^ Annual Canadian-U.S. Cross Border Crime Forum on
November 16, 2006.

*National Tracing Center and National Response Team*

ATF's National Tracing Center (NTC) Division 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 gun analysis by its
Violent Crime Analysis Branch, ATF supports federal, State, local and
international law enforcement with this information to identify sources
of crime guns within their jurisdictions.

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 630 fire
and explosion incidents, including the September 11th Pentagon site, the
Alfred P. Murrah Federal Building site in Oklahoma City, and the 1993
bombing of the World Trade Center.

**C.** Program Performance

### 

**Firearms Enforcement**

The increased national and international emphasis on combating terrorism
and reducing violent firearms crime creates additional challenges for
ATF's firearms enforcement program. ATF fights violent firearms crime by
investigating violent gang members. ATF is expanding efforts to ensure
the coordination of gang enforcement operations with other federal
agencies and international counterparts. ATF is responding to increasing
numbers of requests from State, local, tribal and international law
enforcement partners to assist in investigations of firearms crimes. ATF
is expanding its cross-border and other international efforts to reduce
the supply of U.S.-sourced weapons to terrorists and criminals.

ATF seeks the necessary resources so that agents and investigators can
effectively enforce the federal firearms laws in support of the
Administration's and Department's national counterterrorism strategies
and other domestic initiatives. ATF's FY 2009 request supports the
activities mentioned above, enabling the Bureau to strengthen its
firearms trafficking efforts along the Southwest Border and nationwide,
assist its international partners with firearms tracing, and more
effectively regulate the firearms industry.

### 

**Explosives Regulation and Enforcement**

In keeping with the Department's and the Administration's priority of
maintaining the Nation's security and safety of its citizenry, ATF will
deny the use of explosives to terrorists and criminal organizations
through vigorous enforcement of explosives laws and regulation of the
explosives industry.

In compliance with provisions of the SEA, ATF conducts field inspections
on all original and renewal applications for explosives licenses or user
permits, leading ATF to perform an inspection at least every three years
for each explosives licensee or permittee. Further, ATF continually
monitors explosives licensees who have committed a public safety
violation noted during previous inspections and ensures that all
violations noted in such inspections are appropriately resolved.

In addition, ATF continues to investigate all reported explosives
thefts, respond to and investigate bombings and other explosives
incidents, and assist State, local, other federal agencies and
international law enforcement partners in their investigations of
explosives-related terrorist and criminal acts.

ATF's specialization in explosives investigation led the Department of
Defense (DOD) to request that ATF special agent certified explosives
specialists and explosives enforcement officers provide technical
support for operations in Iraq. In addition to basic and advanced
courses for ATF employees, ATF conducts a wide variety of explosives
training courses for other federal, U.S. military, State, local, and
international students, ranging from specialized courses on the safe
destruction of explosives to advanced post-blast investigation courses.

In conjunction with the Technical Support Working Group, ATF conducts
significant research and development activities that have a global
impact on the war on terrorism, including the development of explosives
detection instruments and research into the characterization and
scientific analysis of homemade explosives and enhanced novel explosives
(ENE). ATF forensic science laboratories are currently engaged in
research using novel scientific techniques to examine these explosives
for their forensic investigative value.

### 

### Internet Trafficking 

Illegal trafficking of ATF-regulated commodities through the Internet
continues to grow, as does cyber crime. To effectively target cyber
crime, 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 Internet-based alcohol and tobacco diversion and
the illegal trafficking of firearms and explosives.

The illicit sale of tobacco products via the Internet continues to cause
a substantial loss of excise tax revenue to federal, State, and foreign
governments. ATF uses laws such as the Contraband Cigarette Trafficking
Act (CCTA) 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, a recent study indicates that additional in-depth
research and analysis of this form of criminal enterprise is warranted.
ATF's laboratories have added new analytical methodologies to identify
contraband cigarettes.

### Information Technology 

ATF faces the challenge of improving the flow of critical intelligence
data to first responders through improved information technology (IT).
On August 11, 2004, the Attorney General directed that ATF maintain all
consolidated Department of Justice 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. The centralization of this data and
intelligence information reduces redundancy and provides access to
information currently housed in compartmentalized systems.

The success of the Nation's efforts to combat global terrorism and other
criminal threats required the components of DOJ to coordinate their
collection, production and dissemination of intelligence and law
enforcement information. ATF directly supports the Law Enforcement
Information Sharing Program (LEISP) as a means to accomplish this
important objective, and will consolidate stove-piped systems and their
disparate databases into National Information Exchange Model (NIEM)
compliant systems. LEISP enhances the ability of agents and industry
operations investigators to share investigative information from ATF's
law enforcement and regulatory databases.

The framework for the consolidation of ATF enforcement and regulatory
systems will be the ATF Knowledge Online (ATF KO) portal, a secure, Web
accessible front end to several ATF information systems and services
covering explosives data as well as firearms, alcohol, tobacco and arson
investigatory and regulatory information. To ensure the greatest
possible access, mission critical work information and files will be
provided to agents, law enforcement partners and other ATF employees via
iPASS, a secure mobility solution available to field agents from
anywhere at anytime.

ATF has made significant progress in providing the Bomb Arson Tracking
System (BATS) and D-Fuze (ATF's international bomb incident database) to
various domestic and international law enforcement organizations. In
fact, ATF was awarded an e-Gov award for the BATS initiative.
Additionally, ATF utilizes BATS to provide 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 meetings of the Free Trade
Area of the Americas (FTAA).

Similarly, eTrace is ATF's centerpiece for firearms tracing domestically
and internationally. A number of MOUs have been established with
domestic and international law enforcement partners to give them
training and access to this system in order to assist them with their
crime gun investigations. National Integrated Ballistics Information
Network (NIBIN) and Integrated Ballistics Identification System (IBIS)
technology is utilized in a similar capacity to link ballistic
information from shells, bullet fragments and cases recovered from crime
scenes during investigations on the domestic and international front.

The continuing development of the National Field Office Case Information
System (N-FOCIS) application suite enhances ATF's ability to collect,
disseminate, manage and analyze data. N-FOCIS 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.

######## 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
secure identity and access control credentials for all ATF employees
(Homeland Security Presidential Directive 12), the improvements to the
security clearance process (Intelligence Reform and Terrorism Prevention
Act of 2004), and the development of common criteria for sensitive
information designation will ensure that sensitive work will be
performed in an environment of integrity and safety.

**D. Strategies for the President's Management Agenda**

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 which include strategic management of human
capital, competitive sourcing, improved financial performance, expanded
e-Government, and budget and performance integration. Additionally, ATF
is subject to the federal real property asset management initiative. A
comprehensive program monitors ATF's progress in each of the PMA goals
and ensures 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 has created a Workforce Strategic Priority
Action Committee to implement workforce priorities identified by ATF's
Strategic Leadership Team and to continue implementation of the Human
Capital Strategy throughout ATF.

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." Last year, 275 agents completed the
assessment center process -- the largest group to date. ATF continues to
enhance the program to meet the challenge of filling vacant positions
while maintaining the integrity and validity of the process. ATF has
been developing an action plan to ensure that ATF special agents are
effectively prepared for first-line and mid-level management positions.
The career plan will identify key training and development initiatives
and will provide for a common understanding of career development
activities. The Bureau will also implement e-performance within the
agent population to facilitate preparing and completing performance
appraisals online.

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 (IOIs).  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 will ensure that IOIs promptly receive appropriate medical
screening, training, fit testing, and equipment.

ATF has also implemented a learning management system (LMS) that allows
for streamlined and automated tracking of employee training requests and
activities. The system conforms to the requirements of the PMA and the
OPM Human Resources Line of Business initiative. It enables more
comprehensive tracking of curricula, certifications, and employee
learning plans and will allow for a strategic linkage between
competencies and training.

**Competitive Sourcing.** ATF conducts significant portions of its
mission through service contracts.  As part of the President's
Management Agenda (PMA), federal agencies must explore areas of services
that could be acquired utilizing competitive sourcing.  In fiscal year
2007, ATF conducted a competitive sourcing initiative of 16 full-time
equivalents (FTE) at the ATF headquarters in Washington, DC.  The make
up of the 16 FTE is as follows: 14 Human Resources Division (HRD)
assistants, one staff assistant, and one HRD specialist.  The study
concluded that the performance of these functions will remain in-house,
performed by the Government's Most Efficient Organization (MEO).  In
accordance with DOJ mandates, ATF will continue to explore competitive
sourcing in future fiscal years.

**Improved Financial Performance.** ATF received unqualified opinions
from FY 1995 to the present, during all years that its financial
statements were independently audited. 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
providing additional training on financial management. In accordance
with the requirements of Office of Management and Budget (OMB) Circular
A-123, ATF implemented 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 ATF will continue to demonstrate good judgment and
fiscal responsibility in its financial operations.

**Expanded e-Government.** In expanding its e-Government offerings, ATF
worked to "e-authenticate" the Bomb Arson Tracking System (BATS) and
Electronic Firearms Tracing System (eTrace) using the federated identity
"open" architecture. ATF established the "proof of concept" to provide
secure infrastructure and user authentication. ATF expanded the user
population in a safe, secure, and consistent manner. The expansion
assisted 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 Law Enforcement Information Sharing Program. 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.

e-Trace is a web-based system that was designed, developed and tested
with the assistance of a consortium of law enforcement agencies. The
system 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 National Tracing Center
(NTC), receive the results, and perform analysis of those results. 

ATF implemented a portfolio management tool that closely aligns
investments with the mission and delivers enhanced capability. The
application supports several IT governance functions including
enterprise architecture, capital planning and program control. This
solution implements 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 to select the right investments and deliver the planned
capability within cost and schedule constraints.

In FY 2007, ATF implemented e-Rulemaking by converting paper-based
docket processing and rulemaking to electronic processes using the
Federal Docket Management System (FDMS). ATF will post all agency public
comment announcements to government-wide public comment solutions
managed by Rulemaking.

As part of the Business Gateway e-Government initiative, ATF began
supplying agency forms to citizens and businesses online via the Forms
Catalog at [www.Forms.gov](http://www.Forms.gov/). As an on-going part
of this initiative, ATF continues to post current forms and validate
existing information.

**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. Senior managers meet
quarterly to review financial executive reports, which lay the
foundation for integrating financial and performance information for the
Bureau, and all senior executive service (SES) performance work plans
link to ATF's strategic plan, the Department's strategic plan, and the
Attorney General's goals to ensure performance-based outcomes.

**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 co-locate functions in Miami, Florida, as part of a DOJ
multi-agency campus. ATF also successfully completed a project with the
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 President's Management Agenda (PMA)
efforts to meet its management challenges, improve program delivery, and
pursue new initiatives that will enhance its performance.

E. 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. Current program costs are distributed as
follows: firearms enforcement -- 72%; arson and explosives -- 26%;
alcohol and tobacco diversion -- 2%. As ATF carries out its critical
mission objectives to prevent terrorism, 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 2009 Request and Current Services/Adjustments to Base (ATB)**:

Each of ATF's programs is essential to preventing terrorism, reducing
violent crime, and protecting the Nation. ATF's unique regulatory
authority of the firearms and explosives industries provides strong
support to accomplishment of 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 "Prevent Crime, Enforce Federal Laws, and Represent the Rights of the American People." ATF's Congressional budget request totals \$1,027,814,000 and 4,942 FTE, which includes \$1,026,866,000 and 4,936 FTE for the FY 2009 current services level. The request also includes \$948,000 and 6 FTE for program improvements. 

# 

# ATF Resource Profile FY 2009

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

+----------+--------+--------+--------+---------+--------+---------+
| **       | **FY   | **FY   | FY     | **FY    | FY     | *       |
| Decision | 2007** | 2007   | 2008   | 2008**  | 2009   | *FY2009 |
| Unit**   |        | Ena    |        |         | P      | Pr      |
|          | **Ena  | cted** | E      | Enacted | resBud | esBud** |
|          | cted** |        | nacted | (\$000) |        |         |
|          |        | (      | FTE    |         | FTE    | **(\    |
|          | *      | \$000) |        |         |        | $000)** |
|          | *FTE** |        |        |         |        |         |
+----------+--------+--------+--------+---------+--------+---------+
| Firearms | 3,599  | \$7    | 3,474  | \$      | 3,532  | \$      |
|          |        | 08,550 |        | 708,550 |        | 740,026 |
+----------+--------+--------+--------+---------+--------+---------+
|          |        |        |        |         |        |         |
+----------+--------+--------+--------+---------+--------+---------+
| Arson    | 1,361  | \$2    | 1,316  | \$      | 1,320  | \$      |
|          |        | 55,865 |        | 255,865 |        | 267,232 |
| and      |        |        |        |         |        |         |
| Ex       |        |        |        |         |        |         |
| plosives |        |        |        |         |        |         |
+----------+--------+--------+--------+---------+--------+---------+
|          |        |        |        |         |        |         |
+----------+--------+--------+--------+---------+--------+---------+
| Alcohol  | 93     | \$     | 90     | \       | 90     | \       |
| and      |        | 19,682 |        | $19,682 |        | $20,556 |
| Tobacco  |        |        |        |         |        |         |
| D        |        |        |        |         |        |         |
| iversion |        |        |        |         |        |         |
+----------+--------+--------+--------+---------+--------+---------+
| #######  |        |        |        |         |        |         |
+----------+--------+--------+--------+---------+--------+---------+
| #######  | **5    | *      | **4    | **\$98  | **4    | *       |
| Subtotal | ,053** | *\$984 | ,880** | 4,097** | ,942** | *\$1,02 |
|  ATF S&E |        | ,097** |        |         |        | 7,814** |
+----------+--------+--------+--------+---------+--------+---------+
| #######  |        |        |        |         |        |         |
+----------+--------+--------+--------+---------+--------+---------+
| ####     | 0      | 0      | 0      | 23,500  | 0      | 0       |
| ### Cons |        |        |        |         |        |         |
| truction |        |        |        |         |        |         |
+----------+--------+--------+--------+---------+--------+---------+
| #######  |        |        |        |         |        |         |
+----------+--------+--------+--------+---------+--------+---------+
| ######   | **5    | *      | **4    | *       | **4    | *       |
| # Total  | ,053** | *\$984 | ,880** | *\$1,00 | ,942** | *\$1,02 |
| ATF S&E  |        | ,097** |        | 7,597** |        | 7,814** |
| and Cons |        |        |        |         |        |         |
| truction |        |        |        |         |        |         |
+----------+--------+--------+--------+---------+--------+---------+

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

**By Decision Units and Counterterrorism Crosscut**

**Decision Units**

![](media/image2.wmf){width="4.572222222222222in"
height="2.686111111111111in"}

**ATF Homeland Security Counterterrorism Crosscut**

![](media/image3.wmf){width="4.614583333333333in" height="2.5625in"}

**II. Summary of Program Changes**

+------------+---------------------------------+---+----+-------+----+
| **Item     | **Description**                 |   |    |       | ** |
| Name**     |                                 |   |    |       | Pa |
|            |                                 |   |    |       | ge |
|            |                                 |   |    |       | ** |
+------------+---------------------------------+---+----+-------+----+
|            | **S & E**                       | * | *  | **Do  |    |
|            |                                 | * | *F | llars |    |
|            |                                 | P | TE | (\$0  |    |
|            |                                 | o | ** | 00)** |    |
|            |                                 | s |    |       |    |
|            |                                 | . |    |       |    |
|            |                                 | * |    |       |    |
|            |                                 | * |    |       |    |
+------------+---------------------------------+---+----+-------+----+
| Southwest  | This initiative is to expand    | 1 | 6  | \$948 | 36 |
| Border     | ATF's capability to conduct     | 2 |    |       |    |
| E          | firearms industry inspections   |   |    |       |    |
| nhancement | along the Southwest Border by   |   |    |       |    |
|            | adding 12 industry operations   |   |    |       |    |
| []{.mark}  | investigators to the region. As |   |    |       |    |
|            | the Southwest Border is a major |   |    |       |    |
|            | area of federal interest        |   |    |       |    |
|            | affecting the citizens of both  |   |    |       |    |
|            | the United States and Mexico,   |   |    |       |    |
|            | this initiative will strengthen |   |    |       |    |
|            | industry oversight in the SW    |   |    |       |    |
|            | Border region and will ensure a |   |    |       |    |
|            | focused inspection program to   |   |    |       |    |
|            | identify potential sources of   |   |    |       |    |
|            | firearms involved in crime, as  |   |    |       |    |
|            | well as non-compliant federal   |   |    |       |    |
|            | firearms licensees (FFLs).      |   |    |       |    |
+------------+---------------------------------+---+----+-------+----+

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

**FY 2009**

**Appropriations Language and Analysis of Appropriations Language**

**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 \$40,000 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,
*\[\$984,097,000\]\$1,027,814,000*, of which not to exceed \$1,000,000
shall be available for the payment of attorneys\' fees as provided by
section 924(d)(2) of title 18, United States Code; and of which
\[\$10,000,000\]*not to exceed \$20,000,000* 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
\[178\]*478*.118 or to change the definition of \`\`Curios or relics\'\'
in 27 CFR \[178\]*478*.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 \[2008\]*2009*: Provided
further, That, beginning in fiscal year 2009 and thereafter, no funds
appropriated under this or any other Act may be used to disclose part or
all of the contents of the Firearms Trace System database maintained by
the National Trace Center of the Bureau of Alcohol, Tobacco, Firearms
and Explosives or any information required to be kept by licensees
pursuant to section 923(g) of title 18, United States Code, or required
to be reported pursuant to paragraphs (3) and (7) of such section
923(g), except to: (1) a Federal, State, local, tribal, or foreign law
enforcement agency, or a Federal, State, or local prosecutor, solely in
connection with and for use in a criminal investigation or prosecution;
or (2) a Federal agency for a national security or intelligence purpose;
and all such data shall be immune from legal process, 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 on the data, in
a civil action in any State (including the District of Columbia) or
Federal court or in an administrative proceeding other than a proceeding
commenced by the Bureau of Alcohol, Tobacco, Firearms and Explosives to
enforce the provisions of chapter 44 of such title, or a review of such
an action or proceeding; except that this proviso shall not be construed
to prevent: (A) 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(1)(10) of such title); (B) the
sharing or exchange of such information among and between Federal,
State, local, or foreign law enforcement agencies, Federal, State, or
local prosecutors, and Federal national security, intelligence, or
counterterrorism officials; or (C) the publication of annual statistical
reports on products regulated by the Bureau of Alcohol, Tobacco,
Firearms and Explosives, including total production, importation, and
exportation by each licensed importer (as so defined) and licensed
manufacturer (as so defined), or statistical aggregate data regarding
firearms traffickers and trafficking channels, or firearms misuse,
felons, and trafficking investigations: \[ \]Provided further, 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. (Department of Justice Appropriations
Act, 2008.)

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

***Amends section 206***

*[The Attorney General is authorized to extend through September 30,
2010, 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**

-   *ATF proposes to increase the amount of ATF's appropriation that is
    available until expended.*

-   *Would extend the pay demonstration project for one year through
    September 30, 2010 without limit on the number of employees or the
    positions covered.*

**IV. Decision Unit Justification**

**A. Firearms**

+----------------------------------------+--------+--------+----------+
| **Firearms TOTAL**                     | **Perm | *      | **       |
|                                        | Pos.** | *FTE** | Amount** |
|                                        |        |        |          |
|                                        |        |        | **(      |
|                                        |        |        | \$000)** |
+----------------------------------------+--------+--------+----------+
| 2007 Enacted w/Rescissions             | 3,676  | 3,599  | 708,550  |
+----------------------------------------+--------+--------+----------+
| 2007 Supplementals                     | 0      | 0      | 2,000    |
+----------------------------------------+--------+--------+----------+
| 2007 Enacted w/Rescissions and         | 3,676  | 3,599  | 710,550  |
| Supplementals                          |        |        |          |
+----------------------------------------+--------+--------+----------+
| 2008 Enacted                           | 3,546  | 3,474  | 708,550  |
+----------------------------------------+--------+--------+----------+
| Adjustments to Base and Technical      | 7      | 52     | 30,528   |
| Adjustments                            |        |        |          |
+----------------------------------------+--------+--------+----------+
| 2009 Current Services                  | 3,553  | 3,526  | 739,078  |
+----------------------------------------+--------+--------+----------+
| 2009 Program Increases                 | 12     | 6      | 948      |
+----------------------------------------+--------+--------+----------+
| 2009 Request                           | 3,565  | 3,532  | 740,026  |
+----------------------------------------+--------+--------+----------+
| **Total Change 2008-2009**             | **19** | **58** | **       |
|                                        |        |        | 31,476** |
+----------------------------------------+--------+--------+----------+

+----------------------------------------+--------+--------+----------+
| **Firearms -- Information Technology   | **Perm | *      | **       |
| Breakout (of Decision Unit Total)**    | Pos.** | *FTE** | Amount** |
|                                        |        |        |          |
|                                        |        |        | **(      |
|                                        |        |        | \$000)** |
+----------------------------------------+--------+--------+----------+
| 2007 Enacted w/Rescissions             | 65     | 65     | 81,723   |
+----------------------------------------+--------+--------+----------+
| 2007 Supplementals                     | 0      | 0      | 0        |
+----------------------------------------+--------+--------+----------+
| 2007 Enacted w/Rescissions and         | 65     | 65     | 81,723   |
| Supplementals                          |        |        |          |
+----------------------------------------+--------+--------+----------+
| 2008 Enacted                           | 65     | 65     | 92,969   |
+----------------------------------------+--------+--------+----------+
| Adjustments to Base and Technical      | 0      | 0      | 0        |
| Adjustments                            |        |        |          |
+----------------------------------------+--------+--------+----------+
| 2009 Current Services                  | 65     | 65     | 92,969   |
+----------------------------------------+--------+--------+----------+
| 2009 Program Increases                 | 0      | 0      | 0        |
+----------------------------------------+--------+--------+----------+
| 2009 Request                           | 65     | 65     | 92,969   |
+----------------------------------------+--------+--------+----------+
| **Total Change 2008-2009**             | **0**  | **0**  | **0**    |
+----------------------------------------+--------+--------+----------+

**1. Program Description**

Violent crime remains a significant and complex domestic problem, fueled
by a variety of causes that differ from region to region. The common
element, however, is the relationship between firearms violence and the
unlawful diversion of firearms out of commerce into the hands of
prohibited persons. ATF's unique statutory responsibilities and assets,
including technology and information, are focused under the agency's
Integrated Violence Reduction Strategy (IVRS) to: remove violent
offenders, including gang members, from our communities; keep firearms
from those who are by law prohibited from possessing them; discourage,
prohibit, and interrupt illegal weapons transfers in accordance with the
law; and prevent firearms violence through community outreach. The IVRS
is ATF's contribution to the Administration's Project Safe Neighborhoods
(PSN) initiative and builds upon traditional enforcement efforts with
the use of state-of-the-art technology, intelligence and
information-sharing balanced with community outreach and prevention.
Through IVRS, ATF maintains the lead federal law enforcement role in the
PSN program. ATF is committed to the reduction of gun violence, one of
the Nation's top domestic law enforcement priorities.

**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 gang
members and associates, armed career criminals, prohibited possessors,
and firearms traffickers, as well as by effectively regulating the
firearms industry to prevent firearms diversion and discouraging
firearms violence through outreach efforts.

![](media/image4.wmf){width="3.5in" height="3.379166666666667in"}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.

ATF oversees a comprehensive gang strategy, combining criminal
enforcement tactics to take violent gang members and their organizations
off the streets with 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 14,000 gang members and their
associates for prosecution between FY 2003 and 2007 for charges
including firearms violations, continuing criminal enterprise
violations, RICO violations, and arson and explosives violations.

ATF is committed to assisting State and local law enforcement agencies,
particularly in areas that are hardest hit by violence. Violent Crime
Impact Teams (VCIT), 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 homicide
and firearms-related violent crime in a community 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 focused domestic enforcement efforts under PSN and within ATF's gang
enforcement strategy constitutes federal law enforcement's front line
against violent firearm crime. Firearms violence is fueled by a variety
of causes that vary from region to region; however, the relationship
between firearms violence and the unlawful diversion of firearms out of
commerce into the hands of prohibited persons represents a common
element across all localities facing firearms violence. The goal of
ATF's illegal firearms trafficking enforcement efforts is to reduce the
Nation's violent firearms crime by identifying, investigating, and
arresting individuals who are fueling armed violence by illegally
supplying firearms to others prohibited from possessing them (e.g.,
felons, violent gang members, juveniles, illegal aliens) and by
deterring the diversion of firearms from lawful commerce into the
illegal market. Multiple, complementing approaches and technologies are
used to thwart illegal firearms trafficking including: (a) enlisting
partnerships with the firearms industry to help identify illegal
third-party firearms purchasers, (b) identifying firearms licensees
whose businesses have multiple risk factors for trafficking (either with
or without the complicity of the business owner), (c) and investigating
leads generated through these referrals and other investigative
information.

ATF administers and enforces the Gun Control Act and the National
Firearms Act as well as the import provisions of the Arms Export Control
Act. In addition, ATF 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. 

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 domestic and international law
enforcement agencies and organizations to prevent U.S.-sourced firearms
from reaching the hands of drug traffickers, organized criminal
enterprises, and terrorist organizations.

To address 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.  The ATF Mexico City office works with Mexican law
enforcement authorities to properly identify and trace U.S. sourced
firearms recovered in Mexico. In an effort to increase the number of
traces involving U.S. sourced guns recovered in Mexico, ATF provides a
secure online tracing system called eTrace to the Mexican Attorney
General's Intelligence Branch.  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 have identified trafficked firearms and have made several
related arrests.

Due to the growth in narcotics-trafficking and firearms and explosives
related violence along the Southwest Border with Mexico, ATF, in support
of DOJ's Southwest Border Initiative, developed a strategy to address
such violence on both sides of the border. This strategy, with domestic
and international components**,** calls for focusing resources in
affected areas such as Laredo, Texas, and emphasizes partnerships with
other law enforcement agencies at the federal (e.g., Drug Enforcement
Administration and Immigration and Customs Enforcement), State (e.g.,
Texas Department of Public Safety) and local (e.g., the Laredo Police
Department) level. Similarly, the ATF Mexico City Office works closely
with Mexican law enforcement agencies to increase their capacity to
effectively combat the criminal elements affecting their communities.
ATF forensic lab personnel also provide technological support, and
training is provided to Mexican law enforcement partners in an effort to
enhance their effectiveness.

Violent transnational gangs operating in Central America with ties in
the U.S. readily resort to the use of firearms to promote and enforce
their illicit trade. ATF will establish working partnerships with
Central American governments in order to effectively combat this threat.

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

Through its 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, forensic firearms examiners compare
the original evidence to confirm a match. By minimizing the amount of
non-matching evidence that forensic 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) Division 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 and identify potential traffickers, whether unlicensed or
licensed sellers. Comprehensive tracing by a community results in leads
that detect intrastate, interstate, and international sources and kinds
of crime guns. The NTC is working with the State Department to expand
this unique deterrent and prevention tool to specific target 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-**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-**A Web-based system that was designed, developed and tested
> with the assistance of a consortium of law enforcement agencies. The
> system 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, receive
> the results, and perform limited analysis of those results. 
> Additionally, the development of a Spanish version of this system will
> enhance the ability to combat firearms trafficking and will increase
> information sharing.
>
> **Stolen Firearms Program-**Manages the theft and loss reports from
> federal firearms licensees, interstate carriers, and the Department of
> Defense (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-**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-federal licensee from a federal
firearms licensee (FFL). Though 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 three
days have elapsed since the licensee contacted 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 United States
Attorney's Offices (USAO) from each of the 94 U.S. Judicial Districts to
establish new referral criteria for Brady Act violators. The criteria
provide tailored referrals that meet each of the 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 licensees 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. ATF
industry operations investigators (IOIs) conduct in-person inspections
of all FFL applicants in order to ensure prohibited persons are not
issued licenses, as well as to discuss FFLs rights and responsibilities
relative to conducting a firearms business. In 2006, ATF denied 14% of
approximately 5,000 new applications for firearms licenses because an
applicant was prohibited or could not comply with State or local laws.

ATF also increases the firearms industry compliance rate by ensuring
that FFLs maintain the accuracy and integrity of their records and
inventory. An increased compliance rate results in fewer prohibited
sales, missing firearms and other violations that jeopardize the
traceability of the weapon or purchaser. In 2006, ATF conducted 7,295
compliance inspections. During these inspections, ATF IOIs were able to
identify the disposition of more than 64,000 firearms initially missing
from inventory, thereby ensuring the ability of law enforcement to track
potential investigative leads. ATF inspections of FFLs can play a vital
role in 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 large caliber rifles
prized by the Mexican drug cartels for their ability to penetrate engine
blocks and armored glass.

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 beyond 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 violate laws 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. Recall inspections of licensees have shown a
resulting increase in compliance for those licensees previously
inspected. In 2006, recall inspections resulted in an increased
compliance rate of 91% for inventory discrepancies and an increased
compliance rate of 64% for total violations.

**National Firearms Act (NFA) Enforcement**

NFA requires registration and payment of a tax for the making or
transfer of the following types of firearms: machine guns, silencers,
short-barreled rifles and shotguns, destructive devices, and certain
concealable weapons classified as "any other weapons." The 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. 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. ATF maintains close liaison with the Department of
State and U.S. Customs and Border Protection 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.
Seminars are routinely held with industry associations such as the
National Firearms Act Trace and Collectors Association, Firearms and
Ammunition Importers Roundtable, National Pawnbrokers Association and
the National Association of Arms Shows and other industry groups. 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.

<table style="width:100%;">
<colgroup>
<col style="width: 13%" />
<col style="width: 18%" />
<col style="width: 0%" />
<col style="width: 3%" />
<col style="width: 3%" />
<col style="width: 0%" />
<col style="width: 6%" />
<col style="width: 0%" />
<col style="width: 3%" />
<col style="width: 1%" />
<col style="width: 0%" />
<col style="width: 7%" />
<col style="width: 0%" />
<col style="width: 3%" />
<col style="width: 0%" />
<col style="width: 7%" />
<col style="width: 0%" />
<col style="width: 3%" />
<col style="width: 0%" />
<col style="width: 8%" />
<col style="width: 0%" />
<col style="width: 4%" />
<col style="width: 0%" />
<col style="width: 0%" />
<col style="width: 11%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="25"><strong>2. PERFORMANCE AND RESOURCES
TABLE</strong></td>
</tr>
<tr class="even">
<td colspan="25"><strong>Decision Unit: Firearms</strong></td>
</tr>
<tr class="odd">
<td colspan="25"><strong>DOJ Strategic Goal/Objective: Goal 2, Objective
2.2</strong></td>
</tr>
<tr class="even">
<td colspan="2"><strong>WORKLOAD/ RESOURCES</strong></td>
<td colspan="6"><strong>Final Target</strong></td>
<td colspan="4"><strong>Actual</strong></td>
<td colspan="5"></td>
<td colspan="3"><strong>Changes</strong></td>
<td colspan="5"><strong>Requested (Total)</strong></td>
</tr>
<tr class="odd">
<td colspan="2"> </td>
<td colspan="6"><strong>FY 2007</strong></td>
<td colspan="4"><strong>FY 2007</strong></td>
<td colspan="5"><strong>2008 Enacted</strong></td>
<td colspan="3"><strong>Current Services Adjustments and FY 2009 Program
Change</strong></td>
<td colspan="5"><strong>FY 2009 Request</strong></td>
</tr>
<tr class="even">
<td colspan="2"><strong>Workload</strong></td>
<td colspan="6"></td>
<td colspan="4"><mark></mark></td>
<td colspan="5"><mark></mark></td>
<td colspan="3"></td>
<td colspan="5"></td>
</tr>
<tr class="odd">
<td colspan="2">Number of firearms compliance inspections completed</td>
<td colspan="6">6,650</td>
<td colspan="4">10,106</td>
<td colspan="5">6,650</td>
<td colspan="3">0</td>
<td colspan="5">6,650</td>
</tr>
<tr class="even">
<td colspan="2">Number of firearms investigations initiated during
fiscal year <a href="#fn1" class="footnote-ref" id="fnref1"
role="doc-noteref"><sup>1</sup></a></td>
<td colspan="6">28,500</td>
<td colspan="4">25,695</td>
<td colspan="5">25,000</td>
<td colspan="3">0</td>
<td colspan="5">25,000</td>
</tr>
<tr class="odd">
<td colspan="2" rowspan="2"><strong>Total Costs and FTE</strong>.</td>
<td colspan="3"><strong>FTE</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td colspan="3"><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td colspan="3"><strong>FTE</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="3"><strong>FTE</strong></td>
<td colspan="2"><strong>$000</strong></td>
</tr>
<tr class="even">
<td colspan="3"><strong>3,599</strong></td>
<td colspan="3"><strong>$708,550</strong></td>
<td colspan="3"><strong>3,442</strong></td>
<td><strong>$712,148</strong></td>
<td colspan="3"><strong>3,474</strong></td>
<td colspan="2"><strong>$708,550</strong></td>
<td><strong>58</strong></td>
<td colspan="2"><strong>$31,476</strong></td>
<td colspan="3"><strong>3,532</strong></td>
<td colspan="2"><strong>$740,026</strong></td>
</tr>
<tr class="odd">
<td rowspan="2"><strong>Program Activity</strong></td>
<td colspan="2" rowspan="2"><strong>Criminal Enforcement</strong><a
href="#fn2" class="footnote-ref" id="fnref2"
role="doc-noteref"><sup>2</sup></a></td>
<td colspan="3"><strong>FTE</strong></td>
<td><strong>$000</strong></td>
<td colspan="3"><strong>FTE</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="3"><strong>FTE</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="3"><strong>FTE</strong></td>
<td><strong>$000</strong></td>
</tr>
<tr class="even">
<td colspan="3"><strong>2,951</strong></td>
<td><strong>$623,524</strong></td>
<td colspan="3"><strong>2,778</strong></td>
<td colspan="3"><strong>$623,734</strong></td>
<td><strong>2,804</strong></td>
<td colspan="2"><strong>$620,583</strong></td>
<td colspan="3"><strong>45</strong></td>
<td colspan="2"><strong>$26,738</strong></td>
<td colspan="3"><strong>2,849</strong></td>
<td><strong>$647,321</strong></td>
</tr>
<tr class="odd">
<td></td>
<td colspan="2">Number of gang related defendants</td>
<td colspan="4">3,800</td>
<td colspan="6">4,381</td>
<td colspan="3">4,100</td>
<td colspan="5">0</td>
<td colspan="4">4,100</td>
</tr>
<tr class="even">
<td></td>
<td colspan="2">Number of defendants who are involved in
trafficking</td>
<td colspan="4">3,000</td>
<td colspan="6">3,457</td>
<td colspan="3">3,225</td>
<td colspan="5">0</td>
<td colspan="4">3,225</td>
</tr>
<tr class="odd">
<td></td>
<td colspan="2">Number of defendants in investigations referred for
prosecution who are felons in possession of firearms<a href="#fn3"
class="footnote-ref" id="fnref3"
role="doc-noteref"><sup>3</sup></a></td>
<td colspan="4">8,700</td>
<td colspan="6">8,069</td>
<td colspan="3">8,000</td>
<td colspan="5">0</td>
<td colspan="4">8,000</td>
</tr>
<tr class="even">
<td><strong>OUTCOME</strong></td>
<td colspan="2">Percentage of firearms investigations resulting in a
referral for criminal prosecution.</td>
<td colspan="4">57%</td>
<td colspan="6">57%</td>
<td colspan="3">58%</td>
<td colspan="5">1%</td>
<td colspan="4">59%</td>
</tr>
<tr class="odd">
<td><strong>OUTCOME</strong></td>
<td colspan="2">Percentage of firearms investigations involving the
recovery of crime guns</td>
<td colspan="4">30%</td>
<td colspan="6">30%</td>
<td colspan="3">32%</td>
<td colspan="5">2%</td>
<td colspan="4">34%</td>
</tr>
<tr class="even">
<td rowspan="2"><strong>Program Activity</strong></td>
<td colspan="2" rowspan="2"><strong>Regulatory Compliance</strong></td>
<td><strong>FTE</strong></td>
<td colspan="3"><strong>$000</strong></td>
<td colspan="2"><strong>FTE</strong></td>
<td colspan="4"><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td colspan="3"><strong>FTE</strong></td>
<td colspan="2"><strong>$000</strong></td>
<td><strong>FTE</strong></td>
<td colspan="3"><strong>$000</strong></td>
</tr>
<tr class="odd">
<td><strong>648</strong></td>
<td colspan="3"><strong>$85,026</strong></td>
<td colspan="2"><strong>664</strong></td>
<td colspan="4"><strong>$88,414</strong></td>
<td><strong>670</strong></td>
<td colspan="2"><strong>$87,967</strong></td>
<td colspan="3"><strong>13</strong></td>
<td colspan="2"><strong>$4,738</strong></td>
<td><strong>683</strong></td>
<td colspan="3"><strong>$92,705</strong></td>
</tr>
<tr class="even">
<td></td>
<td colspan="2">Reduction in unaccounted firearms based on total recall
inspection</td>
<td colspan="4">75%</td>
<td colspan="6">90%</td>
<td colspan="3">75%</td>
<td colspan="5">2%</td>
<td colspan="4">77%</td>
</tr>
<tr class="odd">
<td><p><strong>EFFICIENCY</strong></p>
<p><strong>MEASURE</strong></p></td>
<td colspan="2">Percent of firearms traces completed within nine
days</td>
<td colspan="4">67%</td>
<td colspan="6">67%</td>
<td colspan="3">67%</td>
<td colspan="5">1%</td>
<td colspan="4">68%</td>
</tr>
<tr class="even">
<td><strong>OUTCOME</strong></td>
<td colspan="2">Increase pawn brokers’ compliance rate with Federal
firearms laws and regulations<sup>4</sup></td>
<td colspan="4">50%</td>
<td colspan="6">N/A</td>
<td colspan="3">53%</td>
<td colspan="5">4%</td>
<td colspan="4">57%</td>
</tr>
</tbody>
</table>
<aside id="footnotes" class="footnotes footnotes-end-of-document"
role="doc-endnotes">
<hr />
<ol>
<li id="fn1"><p>This figure includes all firearms investigations,
including NICS investigations forwarded to ATF field offices from ATF’s
Brady Operations Branch.<a href="#fnref1" class="footnote-back"
role="doc-backlink">↩︎</a></p></li>
<li id="fn2"><p>Beginning with the FY 2006 final target column through
the FY 2009 request (for the three measures involving the number of
defendants) the figures no longer represent defendants convicted, but
instead track to the number of defendants referred for prosecution.
These measures have been re-worded to Number of defendants to be
consistent with PART Web. They were previously worded as “Number and
Percentage of defendants.” However, for reporting purposes, actual
percentages will be provided when made available for years percentage
targets were set.<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. The
measure has been re-worded to be consistent with PART Web. It was
previously worded as “Number and Percentage of defendants who are
prohibited possessors of firearms.” However, for reporting purposes
actual percentages will be provided when made available for years
percentage targets were set.</p>
<p><sup>4</sup> Since a random sampling will be done again in 2009 the
results for the 2007 actuals would not be statistically valid.  This
measure was new for FY 2007 introduced during the 2007 Firearms PART
process and the baseline was established with the 2005 actuals, results
will not be statistically valid until 2009 when another random sampling
is completed.<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: 8%" />
<col style="width: 7%" />
<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 2001</th>
<th><h1 id="fy-2002">FY 2002</h1></th>
<th><strong>FY 2003</strong></th>
<th><strong>FY 2004</strong></th>
<th><strong>FY 2005</strong></th>
<th><strong>FY 2006</strong></th>
<th colspan="2"><strong>FY 2007</strong></th>
<th><strong>FY 2008</strong></th>
<th>FY 2009</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 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>3,821</td>
<td>3,800</td>
<td>4,381</td>
<td>4,100</td>
<td>4,100</td>
</tr>
<tr class="even">
<td><strong>Performance Measure</strong></td>
<td>Number 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>3,017</td>
<td>3,000</td>
<td>3,457</td>
<td>3,225</td>
<td>3,225</td>
</tr>
<tr class="odd">
<td><strong>Performance Measure</strong></td>
<td>Number 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>8,655</td>
<td>8,700</td>
<td>8,069</td>
<td>8,000</td>
<td>8,000</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>88%</td>
<td>75%</td>
<td>90%</td>
<td>75%</td>
<td>77%</td>
</tr>
<tr class="odd">
<td><strong>OUTCOME</strong></td>
<td>Percentage of firearms investigations resulting in a referral for
criminal prosecution.</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>57%</td>
<td>57%</td>
<td>58%</td>
<td>59%</td>
</tr>
<tr class="even">
<td><strong>OUTCOME</strong></td>
<td>Percentage of firearms investigations involving the recovery of
crime guns</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>30%</td>
<td>30%</td>
<td>32%</td>
<td>34%</td>
</tr>
<tr class="odd">
<td><strong>OUTCOME</strong></td>
<td>Increase pawn brokers’ compliance rate with Federal firearms laws
and regulations</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>N/A</td>
<td>41%</td>
<td>45%</td>
<td>50%</td>
<td>N/A</td>
<td>53%</td>
<td>57%</td>
</tr>
<tr class="even">
<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>58%</td>
<td>65%</td>
<td>67%</td>
<td>67%</td>
<td>67%</td>
<td>68%</td>
</tr>
<tr class="odd">
<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 at the
national and international level. ATF continually strives to align its
assets to maximize performance through the leveraging of technical,
scientific, legal expertise, and partnerships with other law enforcement
agencies.

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

Ensuring the integrity of the records maintained by federal firearms
licensees in the conduct of business 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, those who willfully
disregard the laws and regulations represent a significant threat to
public safety. To ensure all federal firearms licensees operate in
accordance with the law, ATF is focused on improving its compliance
procedures, which are 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
Nation and our neighbors in the Western Hemisphere. As the agency
responsible for enforcing federal firearms laws, ATF leads the fight to
reduce violent firearms crime domestically. To achieve the performance
goals outlined for FYs 2007 and 2008, as well as the long-term goals
into FY 2009, 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 will continue
to strive to meet the demands and requirements placed by the
Administration and the Department in connection with various domestic
and international initiatives under national counterterrorism strategies
and other U.S. government policy measures. ATF will need to create
innovative solutions and use technology in its strategies to accomplish
the Bureau's ambitious goals and meet national and Department
priorities.

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

To maintain the integrity of the licensee population and ensure they are
operating within law and regulation, ATF is working to update
procedures, including those involving the selection of licensees for
inspection, as well as license revocation for those who violate the law.

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 quality and 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, using a National Information Exchange Model
(NIEM)-compliant data architecture and the ATF Knowledge Online portal
as a front end. 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 presentations to school children and the
general public promote public safety and prevent violence. ATF offers
training 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 and terrorists at home and abroad.

Sharing technology and information is an important element in the
success of law enforcement operations. The Gang Targeting, Enforcement,
and Coordination Center (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 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
foreign offices in Mexico, Canada, and Colombia. ATF has an
international presence through its commitment of resources and expertise
to the delivery of specialized training**,** investigative and technical
assistance, and the strategic placement of personnel. An ATF liaison
officer is assigned to the INTERPOL General Secretariat in Lyon, France.
The Departments of State and Justice approved the assignment of a
liaison officer to EUROPOL in The Hague, The Netherlands. 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 terrorist and transnational criminal
investigations between ATF and our international colleagues.

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

OMB evaluated ATF's firearms enforcement program during the FY 2007 PART
process. OMB assessed the effectiveness of ATF's firearms programs with
a rating of "adequate." ATF developed improvement plans to be
implemented in the firearms program:

-   ATF will develop an evaluation strategy which subjects the program
    to external, rigorous and thorough, regularly scheduled independent
    evaluations.

-   ATF will continue to work with the Department and OMB on legislative
    proposals regarding graduated sanctions for Federal Firearms
    Licensees (FFLs) when they are found to be non-compliant. Graduated
    sanctions for FFL non-compliance are included in the proposed
    \"Violent Crime and Anti-Terrorism Act of 2007.\"

-   ATF will ensure that all financial management related material
    weaknesses identified are corrected in an expeditious and
    comprehensive manner.

-   ATF will develop ambitious and/or challenging targets for the annual
    performance measures associated with its firearms program.

[]{.mark}

ATF's firearms programs continue to receive positive overall assessments
for purpose, resource utilization, strategic planning, program
management, and program results.

**Program Increases**

**Item Name: [Southwest Border Enhancement ]{.underline}**

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

Strategic Goal(s) & Objective(s): [Strategic Goal 1: Prevent Terrorism
and Promote the Nation's Security, Objectives 1.1 and 1.2]{.underline}

[Strategic Goal 2: Prevent Crime, Enforce Federal Laws, and Represent
the Rights and Interests of the American People, Objectives 2.1,
2.2]{.underline}

Organizational Program: [Firearms]{.underline}

Program Increase: Positions [12]{.underline} Agt [0]{.underline} FTE
[6]{.underline} Dollars [\$ 948,000]{.underline}

[Description of Item]{.underline}

ATF is requesting 12 industry operations investigator positions and
\$0.9 million to enhance and expand its capability to conduct firearms
industry inspections and to identify sources of illegally trafficked
firearms along the Southwest Border. The Southwest Border is an area of
significant federal interest that faces issues affecting the citizens of
both the United States and Mexico. This initiative will strengthen
industry oversight in the region and will ensure the implementation of a
focused inspection program to identify suspicious purchasers,
traffickers and non-compliant licensees that may be sources of illegally
trafficked firearms used by violent criminals. This will support ATF's
strategy to deny the "tools of the trade" to the firearms trafficking
organizations operating in border areas and will have several components
such as outreach with industry, the public and law enforcement in
addition to enhanced inspection techniques, such as a forward trace
component and a database identifying firearms that are used in crimes.
There are presently over 2,000 firearms dealers in the border States of
Texas, Arizona, New Mexico and southern California that have not been
inspected in 10 years. This request is consistent with the President's
Management Agenda and supports Departmental and Administration
priorities to protect our Nation by preventing acts of terrorism and
reducing violent crime, especially violence perpetrated with guns or by
gangs.

[Justification]{.underline}

ATF proposes this initiative to reduce the flow of illegally-trafficked
firearms in the Southwest Border region through its Integrated Violence
Reduction Strategy (IVRS). IVRS effectively fights firearms violence
associated with the criminal use and diversion of firearms by combining
its investigative programs, inspection programs, tracing and ballistics
identification capabilities, and skill in building strong partnerships.
ATF will use its unique expertise and assets to prevent the illegal
acquisition of firearms by violent offenders and their criminal
organizations (such as armed gangs, terrorist groups, and drug
trafficking groups) by targeting their sources of illegal firearms. The
requested resources will augment ATF's industry operations investigator
(IOI) workforce in support of ATF's efforts to minimize the interstate
trafficking of firearms.

A key component to shutting off the illicit flow of firearms is a
focused inspection program of Federal Firearms Licensees (FFLs). ATF
limits the public's risk through effective industry regulation that
ensures noncompliant FFLs are removed as a source of firearms to
criminals and encourages voluntary compliance and improved recordkeeping
and firearms accountability by all FFLs in the targeted area through
outreach and inspections.

Additional IOIs requested in this initiative will work to identify FFLs
who, through noncompliance, represent a significant threat to public
safety. IOIs will identify firearms trafficking patterns and develop
intelligence on the sources of crime guns recovered in Mexico and border
areas, and improve the traceability of weapons recovered in this area.
IOIs will conduct compliance inspections of those primary retailers and
pawnbrokers who sell those "weapons of choice" that are the preferred
weapons being trafficked in this region, and assist ATF in targeting and
investigating straw purchasers and the traffickers who employ them. The
IOIs will work to improve relations with firearms industry members,
enhance voluntary compliance and promote licensees' assistance in
preventing diversion by conducting training and outreach activities with
FFLs in the targeted areas.

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

ATF's Integrated Violence Reduction Strategy in support of the
Administration's Project Safe Neighborhoods strategy combines the
essential elements needed for a rigorous and successful gun violence
reduction plan.

Requested resources will enhance ATF's support of DOJ Goals 1 (Prevent
Terrorism and Promote the Nations Security) and 2 (Prevent Crime,
Enforce Federal Laws, and Represent the Rights and Interests of the
American People) (DOJ Strategic Plan 2009-2012). This initiative is
critical to the achievement of Goal 1 of the ATF Strategic Plan for
2004-2009, to Prevent Violent Crime Involving Firearms.

Requested resources will enable ATF to increase its ability to deny
prohibited persons access to firearms. Further, ATF's responsibility on
behalf of DOJ to support the National Counterterrorism Center's National
Implementation Plan for the war on terror includes denying terrorist
access to firearms. The anticipated impact is prevention of criminal and
terrorist activity and the reduction of violent crime.

This proposed initiative will contribute to ATF's success in meeting the
following performance measures:

-   Increased pawn brokers' compliance rate with federal firearms laws
    and regulations; and

-   Reduction in unaccounted firearms.

**Funding**

[Base Funding]{.underline}

<table>
<colgroup>
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 12%" />
<col style="width: 6%" />
<col style="width: 6%" />
<col style="width: 8%" />
<col style="width: 10%" />
<col style="width: 6%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="4"><p id="fy-2007-enacted-wresc.supps" class="heading">FY
2007 Enacted (w/resc./supps)</p></td>
<td colspan="4"><p id="fy-2008-enacted" class="heading">FY 2008
Enacted</p></td>
<td colspan="4"><p id="fy-2009-current-services" class="heading">FY 2009
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>58</td>
<td>44</td>
<td>58</td>
<td>9,306</td>
<td>58</td>
<td>44</td>
<td>58</td>
<td>9,306</td>
<td>58</td>
<td>44</td>
<td>58</td>
<td>9,306</td>
</tr>
</tbody>
</table>

[Personnel Increase Cost Summary]{.underline}

+---------------------+----------+--------+------------+-------------+
| Type of Position    | Modular  | Number | FY 2009    | FY 2010 Net |
|                     | Cost per | of     | Request    | An          |
|                     | Position | Pos    | (\$000)    | nualization |
|                     | (\$000)  | itions |            | (change     |
|                     |          | Req    |            | from 2009)  |
|                     |          | uested |            |             |
|                     |          |        |            | (\$000)     |
+=====================+==========+========+============+=============+
| Industry Operations | 79       | 12     | 948        | 966         |
| Investigators       |          |        |            |             |
| (IOIs) - Firearms   |          |        |            |             |
| source areas and    |          |        |            |             |
| along Southwest     |          |        |            |             |
| border              |          |        |            |             |
+---------------------+----------+--------+------------+-------------+
| Total Personnel     |          | 12     | 948        | 966         |
+---------------------+----------+--------+------------+-------------+

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

[Total Request for this Item]{.underline}

+------------+-----+-----+------+---------+-----------+--------------+
|            | Pos | Agt | FTE  | Pe      | Non-      | Total        |
|            |     |     |      | rsonnel | Personnel |              |
|            |     |     |      |         |           | (\$000)      |
|            |     |     |      | (\$000) | (\$000)   |              |
+------------+-----+-----+------+---------+-----------+--------------+
| Current    | 58  | 44  | 58   | 6,049   | 3,257     | 9,306        |
| Services   |     |     |      |         |           |              |
+------------+-----+-----+------+---------+-----------+--------------+
| Increases  | 12  | 0   | 6    | 948     | 0         | 948          |
+------------+-----+-----+------+---------+-----------+--------------+
| Grand      | 70  | 44  | 64   | 6,997   | 3,257     | 10,254       |
| Total      |     |     |      |         |           |              |
+------------+-----+-----+------+---------+-----------+--------------+

**B. Arson and Explosives**

+----------------------------------------+--------+--------+----------+
| **Arson and Explosives TOTAL**         | **Perm | *      | **       |
|                                        | Pos.** | *FTE** | Amount** |
|                                        |        |        |          |
|                                        |        |        | **(      |
|                                        |        |        | \$000)** |
+----------------------------------------+--------+--------+----------+
| 2007 Enacted w/Rescissions             | 1,356  | 1,361  | 255,865  |
+----------------------------------------+--------+--------+----------+
| 2007 Supplementals                     | 0      | 0      | 2,000    |
+----------------------------------------+--------+--------+----------+
| 2007 Enacted w/Rescissions and         | 1,356  | 1,361  | 257,865  |
| Supplementals                          |        |        |          |
+----------------------------------------+--------+--------+----------+
| 2008 Enacted                           | 1,317  | 1,316  | 255,865  |
+----------------------------------------+--------+--------+----------+
| Adjustments to Base and Technical      | 3      | 4      | 11,367   |
| Adjustments                            |        |        |          |
+----------------------------------------+--------+--------+----------+
| 2009 Current Services                  | 1,320  | 1,320  | 267,232  |
+----------------------------------------+--------+--------+----------+
| 2009 Program Increases                 | 0      | 0      | 0        |
+----------------------------------------+--------+--------+----------+
| 2009 Request                           | 1,320  | 1,320  | 267,232  |
+----------------------------------------+--------+--------+----------+
| **Total Change 2008-2009**             | **3**  | **4**  | **       |
|                                        |        |        | 11,367** |
+----------------------------------------+--------+--------+----------+

+----------------------------------------+--------+--------+----------+
| **Arson and Explosives -- Information  | **Perm | *      | **       |
| Technology Breakout (of Decision Unit  | Pos.** | *FTE** | Amount** |
| Total)**                               |        |        |          |
|                                        |        |        | **(      |
|                                        |        |        | \$000)** |
+----------------------------------------+--------+--------+----------+
| 2007 Enacted w/Rescissions             | 24     | 24     | 23,553   |
+----------------------------------------+--------+--------+----------+
| 2007 Supplementals                     | 0      | 0      | 0        |
+----------------------------------------+--------+--------+----------+
| 2007 Enacted w/Rescissions and         | 24     | 24     | 23,553   |
| Supplementals                          |        |        |          |
+----------------------------------------+--------+--------+----------+
| 2008 Enacted                           | 24     | 24     | 27,614   |
+----------------------------------------+--------+--------+----------+
| Adjustments to Base and Technical      | 0      | 0      | 0        |
| Adjustments                            |        |        |          |
+----------------------------------------+--------+--------+----------+
| 2009 Current Services                  | 24     | 24     | 27,614   |
+----------------------------------------+--------+--------+----------+
| 2009 Program Increases                 | 0      | 0      | 0        |
+----------------------------------------+--------+--------+----------+
| 2009 Request                           | 24     | 24     | 27,614   |
+----------------------------------------+--------+--------+----------+
| **Total Change 2008-2009**             | **0**  | **0**  | **0**    |
+----------------------------------------+--------+--------+----------+

**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 and forensic
analysis of fire, arson, and explosives incidents arising from criminal
or terrorists acts against the U.S., and it shares its technical and
scientific expertise and state-of-the-art resources with other federal,
State, local, tribal, and international law enforcement partners and
fire service agencies. ATF's law enforcement mission is supported by its
efforts to ensure that only 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 laws.

**Arson and Explosives Enforcement Programs**

ATF specialists are trained in investigating post-blast scenes in
response to criminal and terrorist explosives incidents.  These special
agents investigate bombings, explosions, and potential acts of arson
motivated by profit, ideology or other criminal intent.  The agents
train federal, State, local, and international law enforcement agencies
on how to investigate and 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 also investigates incidents of explosives stolen from
licensees, a particular concern considering the threats of terrorism
against U.S. citizens.

**National Response Teams (NRT)**

A comprehensive and integrated set of programs and resources supports
ATF's enforcement of the federal explosives laws domestically. The
National Response Team (NRT) utilizes 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 geographically located in four locations
throughout the United States and can respond to an incident within 24
hours**.** It 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. Intelligence and audit support and technical and legal advisors
complement the team's efforts.

One example of how the NRT supports State and local investigations is a
4-alarm fire that occurred on October 31, 2006, at a hotel in Reno,
Nevada. As a result of the fire, 12 persons died, 31 were injured, 70
were rescued and/or evacuated, and approximately \$2.19 million in
damages occurred. ATF's NRT was deployed to assist local investigators
with the scene determination and investigation. After determining the
fire was incendiary, NRT members interviewed several critical witnesses.
These witnesses were instrumental in identifying a defendant who was
ultimately sentenced to 12 consecutive life sentences for murder and 15
years in prison for arson.

Internationally, and at the request of the State Department, ATF
investigates 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 has assisted in explosives and arson
investigations taking place in South America and Southeast Asia.

**Certified Fire Investigators (CFI)**

ATF's Certified Fire Investigators (CFI) are special agents who have
completed an extensive two-year training program in the field of
advanced fire scene examination, with an emphasis on the 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 to identify trends and patterns in
fire incidents. The CFIs are supported in their investigations by the
ATF Fire Research Laboratory which has the unique capability to
re-create fire scenarios, both large and small, in its fire testing
facility.

**Certified Explosives Specialists (CES)**

The primary mission of ATF's CESs 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 explosive devices (IEDs).

**Explosives Enforcement Officers (EEO)**

EEOs 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. 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.

**Canine Program**

ATF's explosives and accelerant detection canines are a crucial tool
used in explosives and arson investigations at home and abroad and to
ensure security at special events. Special agent canine handlers are
also called upon as first responders when explosives threats are made
against individuals or property in the United States. These special
agents apply their investigative expertise, their knowledge as CESs, and
the most effective explosives detection tool available today---their
canines. 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 as well as in a number of other
countries (e.g., Mexico, Egypt). ATF works with domestic and
international agencies that have received ATF-certified explosives
detection and accelerant detection canines and supports those
communities that are without canine services.

**ATF Laboratories**

The ATF laboratories in Maryland, Georgia and California employ over 90
chemists, engineers, examiners and specialists and are recognized as
world leaders in forensic science. The laboratories utilize the latest
instrumentation and methodologies to provide quality examinations to
support ATF investigations. Seasoned laboratory scientists use a
multidiscipline team approach to forensic investigations and
examinations and provide the best of the best in forensic examinations
related to firearms, fire and explosives investigations.

The ATF laboratories recently added two new forensic disciplines in
support of ATF investigations\--DNA and tobacco analysis. DNA analysis
has added significant capability for linking a suspect to a crime.
Tobacco analysis was developed to support all the Bureau needs for
analysis of counterfeit and contraband tobacco products and tax stamps.

A critical component of ATF's fire investigation mission is ATF's Fire
Research Laboratory (FRL), a one-of-a-kind fire testing facility able to
replicate fire scenarios under controlled conditions. This facility is
designed to support ATF's arson 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. Its
scientists use the most advanced scientific, technical, educational, and
training methods to make ATF and its partners leaders in fire
investigation science.

**Forensic Auditing**

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.
Forensic auditors provide pretrial depositions and expert witness
testimony for federal, State, local governments and insurance companies.

**Explosives Databases**

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 to track
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 (USBDC), the repository for all
domestic bombing incidents. The USBDC, 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 USBDC also
supports CESs and EEOs who are assigned to the Department of Defense
Combined Explosives Exploitation Cells (CEXC) in Iraq.

**International Efforts**

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. For example, in 2006 an
ATF EEO was processing a post-blast scene in Iraq when members of the
detail noticed two individuals approaching a brush-covered area nearby.
The EEO and another CEXC member observed the individuals through night
vision equipment and used a weapon-mounted laser to illuminate the
scene, causing the individuals to flee the area. A daylight search
revealed IED components buried in the immediate area of the blast site
where the CEXC team was working. Without this vigilance and
intervention, there may have been catastrophic repercussions for the
team.

ATF intends to establish a presence at the U.S. Embassy in Iraq, by
stationing special agent CESs and an intelligence research specialist to
assist in the U.S. Government's efforts to help bring the rule of law to
that region.

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, Virginia 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.

The USBDC has lead the effort to establish the International Bomb Data
Center Working Group (IBDCWG) consisting of members of 19 countries bomb
data centers and has worked as this group's secretary. Additionally, ATF
developed a collaborative and information sharing portal. The portal is
limited to law enforcement agency bomb data centers that are members of
the IBDCWG, an international working group of law enforcement agency
bomb data centers from around the world. Its objective is to share
technical information, especially in the face of critical incidents
involving explosives and other means, and planned or actual terrorist
attacks. The portal includes the ability to exchange encrypted
information in live "chat" forums or to translate languages, currently
including: English, Spanish, French, German and Dutch. More languages
are likely to be added in the future.

D-Fuze, ATF's international bombing incident database, allows
international law enforcement agencies to compare and exchange
information on explosives incidents in compliance with data sharing
protocol established by the IBDCWG via encrypted messages about
incidents, groups or individuals involved, vehicles used, power sources,
initiation systems, and firearms, via a pilot version of the ATF
Knowledge Online portal application. D-Fuze 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, Colombia, Hong
Kong, and Singapore. Embassies in Mexico City, Mexico, and Bogotá,
Colombia, are equipped with D-Fuze, as are several law enforcement
agencies in those countries, helping to combat the criminal and
terrorist use of explosives worldwide.

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 address vulnerability issues
within U.S. embassies. ATF is committed to fusing information derived
from all of these efforts and promoting improved collaboration and the
exchange of life-saving information among partner organizations.

**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, which controls access to explosives by requiring all
explosives purchasers to apply for a federal license or permit and
undergo background checks.  The Safe Explosives Act (SEA) also requires
a background check of employees of explosives permittees and licensees
who will have access to explosives materials.  By enforcing federal
explosives laws and regulating the explosives industry, ATF helps to
protect the public from criminal acts, the unsafe storage of explosives,
and explosives incidents. 

ATF industry operations investigators (IOIs) 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,
promptly report thefts that do occur, and prevent the distribution of
explosives to prohibited persons. ATF IOIs also check for proper
explosives storage to ensure there are no safety hazards. To ensure
public safety, they verify that the appropriate distances are maintained
between storage bunkers and surrounding structures and that bunkers are
appropriately secured. IOIs can call upon specialized ATF personnel when
a significant safety hazard or loss of explosives is discovered. In the
event of willful violations, IOIs may recommend the revocation or denial
of a license or permit or make a criminal referral. However, ATF also
strives to lessen the burden of regulation for industry members whenever
possible. For example, ATF recently issued three rulings designed to
improve efficiencies for industry members. These rulings allowed for the
use of computer records, alternate storage requirements for display
fireworks, and alternate storage of bulk-blasting agents.

**Outreach Activities**

ATF works with a variety of customers in providing services such as the
NRT investigators, guidance, and advice to 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 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 ongoing project 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 scientists are leaders in the development, standardization and use
of scientific techniques to examine evidence from fire and explosives
investigations. This leadership extends to scientific working groups and
professional organizations, both nationally and internationally.

ATF communicates with the fire and explosives investigation community
through arson and explosives advisory groups, the National Bomb Squad
Commander Advisory Board (NABSCAB) and the International Bomb Data
Center Working Group Portal (IBDCWG Portal)[^1] meetings. Each week, an
advisory group provides information on ATF's arson and explosives
investigative activity. The advisory reports are distributed to other
federal, State, and local law enforcement agencies. ATF also publishes
explosives theft advisory reports and periodic advisories highlighting
specific or emerging threats to public safety or the bomb technician
community.

**National Center for Explosives Training and Research (NCETR)**

ATF cooperates fully with federal, State, and local government agencies
in a comprehensive effort to develop and maintain education programs
focused on domestic preparedness for incidents involving explosives. ATF
has long maintained a reputation with federal, State, local and
international agencies, as well as the military, as a hard-working
training and research partner. Present demand for classes exceeds ATF's
capacity, and as a result there is currently a backlog of students. A
fully staffed and equipped NCETR will advance this commitment by
increasing explosives-related training through our partnerships with
other federal entities. The NCETR will also promote efficiency by
consolidating other DOJ and DOD explosives training expertise in one
location.

To implement the provisions of the Homeland Security Act of 2002,
Congress appropriated \$23.5 million in FY 2008 to begin construction of
the NCETR facility. Congress previously provided \$5 million in ATF's FY
2006 appropriation for site selection, architectural design, site
preparation and development of a total cost estimate for construction of
a permanent site for NCETR. The NCETR is one aspect of a coordinated
strategy that supports the mission and strategic goals the Department
and ATF.  The NCETR will be the focus of explosives expertise and
support to U.S. law enforcement entities charged with preventing
terrorism, protecting the public from explosives incidents and preparing
investigators and bomb technicians for the investigation and prosecution
of explosives incidents.

<table style="width:100%;">
<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: 9%" />
<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, Objective
1.2; Goal 2, Objective 2.2</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"></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 2007</strong></td>
<td colspan="2"><strong>FY 2007</strong></td>
<td colspan="2"><strong>FY 2008 Enacted</strong></td>
<td colspan="2"><strong>Current Services Adjustments and FY 2009 Program
Changes</strong></td>
<td colspan="2"><strong>FY 2009 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">2,214</td>
<td colspan="2">1,895</td>
<td colspan="2">1,895</td>
<td colspan="2">0%</td>
<td colspan="2">1,895</td>
</tr>
<tr class="even">
<td colspan="2">Number of arson investigations initiated during fiscal
year</td>
<td colspan="2">1,834</td>
<td colspan="2">1,526</td>
<td colspan="2">1,526</td>
<td colspan="2">0%</td>
<td colspan="2">1,526</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>1,361</strong></td>
<td><strong>$255,865</strong></td>
<td><strong>1,211</strong></td>
<td><strong>$251,344</strong></td>
<td><strong>1,316</strong></td>
<td><strong>$255,865</strong></td>
<td><strong>4</strong></td>
<td><strong>$11,367</strong></td>
<td><strong>1,320</strong></td>
<td><strong>267,232</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>912</strong></td>
<td><strong>$197,016</strong></td>
<td><strong>850</strong></td>
<td><strong>$198,890</strong></td>
<td><strong>924</strong></td>
<td><strong>$202,467</strong></td>
<td><strong>3</strong></td>
<td><strong>$8,995</strong></td>
<td><strong>927</strong></td>
<td><strong>211,462</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">0%</td>
<td colspan="2">90%</td>
</tr>
</tbody>
</table>

<table style="width:100%;">
<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"></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 2007</strong></td>
<td colspan="2"><strong>FY 2007</strong></td>
<td colspan="2"><strong>FY 2008 Enacted</strong></td>
<td colspan="2"><h5
id="current-services-adjustment-and-fy-2009-program-changes">Current
Services Adjustment and FY 2009 Program Changes</h5></td>
<td colspan="2"><h5 id="fy-2009-request">FY 2009 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>449</strong></td>
<td><strong>$58,849</strong></td>
<td><strong>361</strong></td>
<td><strong>$52,454</strong></td>
<td><strong>392</strong></td>
<td><strong>$53,398</strong></td>
<td><strong>1</strong></td>
<td><strong>$2,372</strong></td>
<td><strong>393</strong></td>
<td><strong>$55,770</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">1,326</td>
<td colspan="2">1,836</td>
<td colspan="2">1,722</td>
<td colspan="2">0</td>
<td colspan="2">1,722</td>
</tr>
<tr class="even">
<td>Explosives</td>
<td><p>Number and percentage of</p>
<p>explosives licensees/permittees inspected<a href="#fn1"
class="footnote-ref" id="fnref1"
role="doc-noteref"><sup>1</sup></a></p></td>
<td colspan="2">3,240 / 28%</td>
<td colspan="2">3,291 / 28%</td>
<td colspan="2">2,640 / 22%</td>
<td colspan="2">0</td>
<td colspan="2">2,640 / 22%</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">55%</td>
<td colspan="2">55%</td>
<td colspan="2">55%</td>
<td colspan="2">0</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">0</td>
<td colspan="2">35%</td>
</tr>
<tr class="odd">
<td></td>
<td>Percent of perfected explosives applications acted on within 90
days<sup>6</sup></td>
<td colspan="10">This measure was never developed and will be
deleted</td>
</tr>
<tr class="even">
<td><strong>OUTCOME</strong></td>
<td>Percentage reduction in public safety violations (recall insp.)</td>
<td colspan="2">75%</td>
<td colspan="2">69%</td>
<td colspan="2">75%</td>
<td colspan="2">0</td>
<td colspan="2">75%</td>
</tr>
</tbody>
</table>
<aside id="footnotes" class="footnotes footnotes-end-of-document"
role="doc-endnotes">
<hr />
<ol>
<li id="fn1"><blockquote>
<p>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.</p>
<p><sup>6</sup> ATF has requested this measure be deleted because the
data is not available in the Federal Licensing System (FLS).</p>
</blockquote>
<a href="#fnref1" class="footnote-back" role="doc-backlink">↩︎</a></li>
</ol>
</aside>

<table>
<colgroup>
<col style="width: 8%" />
<col style="width: 1%" />
<col style="width: 23%" />
<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: 0%" />
<col style="width: 6%" />
<col style="width: 0%" />
<col style="width: 8%" />
<col style="width: 6%" />
<col style="width: 6%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="2"></td>
<td></td>
<td colspan="12"><strong>Performance Measure Table</strong></td>
</tr>
<tr class="even">
<td colspan="15"><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 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><strong>FY 2006</strong></td>
<td colspan="4"><strong>FY 2007</strong></td>
<td><strong>FY 2008</strong></td>
<td><strong>FY 2009</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 colspan="2"><strong>Target</strong></td>
<td colspan="2"><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>100%</td>
<td>100%</td>
<td>100%</td>
<td colspan="2">90%</td>
<td colspan="2">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>1,235</td>
<td>1,821</td>
<td>1,655</td>
<td colspan="2">1,326</td>
<td colspan="2">1,836</td>
<td>1,722</td>
<td>1,722</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>22%</td>
<td>34%</td>
<td>6,392 / 55%</td>
<td colspan="2">3,240 / 28%</td>
<td colspan="2"><p>3,291 /</p>
<p>28%</p></td>
<td>2,640 / 22%</td>
<td>2,640 / 22%</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>54%</td>
<td>45%</td>
<td>60%</td>
<td colspan="2">55%</td>
<td colspan="2">55%</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>22%</td>
<td>35%</td>
<td>35%</td>
<td colspan="2">35%</td>
<td colspan="2">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="12">This measure was never developed and will be
deleted</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 colspan="2">75%</td>
<td colspan="2">75%</td>
<td>69%</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 outreach, 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, and
international partners in the fight against explosives and arson-
related violence and terrorist acts. The explosives regulatory
enforcement program safeguards the American 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.

Internationally, ATF contributes to national counterterrorism strategies
and supports the Administration's and Department's national priorities
to combat terrorism at home and in the international front by actively
fostering working partnerships with friendly nations and U.S. allies.
ATF shares intelligence and other assets in the war against global
terrorism.

**b. Strategies to Accomplish Outcomes**

ATF directs a concentration of resources and specialized expertise to
achieve 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 industry members,
remain important elements 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.

In response to long-term national counterterrorism strategies, ATF
intends to set up a strategic global presence to safeguard and support
U.S. interests and policies internationally. ATF will establish a
presence at the U.S. Embassy in Iraq, joining ATF's other foreign
offices in the Western Hemisphere to set up an effective early warning
presence against terrorist organizations that may seek to use or to
traffic in firearms, other conventional weapons or explosives.

# 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 High Intensity Financial
Crime Areas (HIFCA) 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.

ATF will continue to support interdepartmental initiatives to combat
terrorism through its continuing efforts to fulfill its responsibilities
under the National Implementation Plan for the War on Terror, by taking
part in task forces such as the CEXC, and by using resources such as
TEDAC, BATS, D-Fuze and its explosives canine program.

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

The arson and explosives program areas were rated "Moderately Effective"
for the FY 2006 PART review. This was reviewed for program purpose,
strategic planning, program management, and program results.

**C. Alcohol and Tobacco**

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

  2007 Enacted w/Rescissions               96        93        19,682

  2007 Supplementals                       0         0         0

  2007 Enacted w/Rescissions and           96        93        19,682
  Supplementals                                                

  2008 Enacted                             93        90        19,682

  Adjustments to Base and Technical        0         0         874
  Adjustments                                                  

  2009 Current Services                    93        90        20,556

  2009 Program Increases                   0         0         0

  2009 Request                             93        90        20,556

  **Total Change 2008-2009**               **0**     **0**     **874**
  ---------------------------------------- --------- --------- ------------

  ---------------------------------------- --------- --------- ------------
  **Alcohol and Tobacco -- Information     **Perm    **FTE**   **Amount**
  Technology Breakout (of Decision Unit    Pos.**              
  Total)**                                                     

  2007 Enacted w/Rescissions               1         1         1,767

  2007 Supplementals                       0         0         0

  2007 Enacted w/Rescissions and           1         1         1,767
  Supplementals                                                

  2008 Enacted                             1         1         2,080

  Adjustments to Base and Technical        0         0         0
  Adjustments                                                  

  2009 Current Services                    1         1         2,080

  2009 Program Increases                   0         0         0

  2009 Request                             1         1         2,080

  **Total Change 2008-2009**               **0**     **0**     **0**
  ---------------------------------------- --------- --------- ------------

**1. Program Description**

ATF enforces federal criminal statutes, including the Contraband
Cigarette Trafficking Act, that address the diversion of tobacco
products in avoidance of local, federal, State, and/or foreign tax
revenue. 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 these criminal
enterprises and 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
such investigations.

ATF incorporates information on suspicious financial transactions into
each criminal tobacco diversion investigation and provides this
information to the appropriate HIFCA team. ATF has identified instances
of terrorist groups forming alliances with tobacco traffickers to
generate monies for their organizations and activities. ATF has 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.
The ATF Canadian Office has proactively over the years assisted the
Canadian government to combat the trafficking of diverted cigarettes
from the legal U.S. market, thereby avoiding a significant impact to
their tax revenue. Annually, the ATF Canadian Office organizes a tobacco
trafficking conference involving U.S. and law enforcement partners on
both sides of the Canadian border.

ATF's case management system, the National Field Office Case Information
System (N-FOCIS), captures all of ATF's intelligence and investigative
information. When aspects of cases pertain to questionable financial
transactions, N-FOCIS enables the identification of non-profit
organizations, charities, individuals or entities who misuse a
non-profit status to advance criminal or terrorist activities based on
dubious financial transactions. This capability to capture and share
information concerning questionable financial transactions is a prime
example of how ATF identifies entities or individuals that facilitate
suspected terrorist activities through illegal trafficking in tobacco
products. ATF agents and investigators utilize this functionality to
identify suspicious transactions, thus strengthening existing terrorist
screening tools.

ATF continues to collaborate with agencies in other areas of the world
that experience problems with U.S.-sourced 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 criminal enterprises
and terrorist organizations responsible for these schemes.

The profits are often used by criminal organizations to conduct other
illicit activities**,** such as smuggling illegal aliens/human
trafficking, financing terrorist groups, and trafficking in narcotics,
firearms and stolen properties. Aiming to combat this type of crime, ATF
develops intelligence with 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, the federal and foreign governments.

**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 (approximately 2,000 known tobacco 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.

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, 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. Organized crime and other groups play 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 that 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, Tribal 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**,** with members of the tobacco industry and with
international law enforcement organizations. 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
2.2</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"></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 2007</strong></td>
<td colspan="2"><strong>FY 2007</strong></td>
<td colspan="2"><strong>FY 2008 Enacted</strong></td>
<td colspan="2"><strong>Current Services Adjustments and FY 2009 Program
Changes</strong></td>
<td colspan="2"><strong>FY 2009 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">135</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>$19,682</strong></td>
<td><strong>79</strong></td>
<td><strong>$18,992</strong></td>
<td><strong>90</strong></td>
<td><strong>$19,682</strong></td>
<td><strong>0</strong></td>
<td><strong>$874</strong></td>
<td><strong>90</strong></td>
<td><strong>$20,556</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>$19,682</strong></td>
<td><strong>79</strong></td>
<td><strong>$18,992</strong></td>
<td><strong>90</strong></td>
<td><strong>$19,682</strong></td>
<td><strong>0</strong></td>
<td><strong>$874</strong></td>
<td><strong>90</strong></td>
<td><strong>$20,556</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">$30,000</td>
<td colspan="2">$30,000</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)</strong>
<a href="#fn1" class="footnote-ref" id="fnref1"
role="doc-noteref"><sup>1</sup></a></td>
<td colspan="2">50</td>
<td colspan="2">50</td>
<td colspan="2">50</td>
<td colspan="2"></td>
<td colspan="2">50</td>
</tr>
</tbody>
</table>
<aside id="footnotes" class="footnotes footnotes-end-of-document"
role="doc-endnotes">
<hr />
<ol>
<li id="fn1"><p>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 is presently using workload data.<a href="#fnref1"
class="footnote-back" role="doc-backlink">↩︎</a></p></li>
</ol>
</aside>

  ---------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
  **Performance                                                                                                                         
  Measure Table**                                                                                                                       

  **Decision Unit:                                                                                                                      
  Alcohol and                                                                                                                           
  Tobacco**                                                                                                                             

  **Performance    **FY 2001**  **FY 2002**  **FY 2003**  **FY 2004**  **FY 2005**  **FY 2006**  **FY 2007**               **FY 2008**  **FY 2009**
  Report and                                                                                                                            
  Performance Plan                                                                                                                      
  Targets**                                                                                                                             

                   **Actual**   **Actual**   **Actual**   **Actual**   **Actual**   **Actual**   **Target**   **Actual**   **Target**   **Target**
  ---------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------

<table>
<colgroup>
<col style="width: 11%" />
<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: 10%" />
<col style="width: 7%" />
<col style="width: 7%" />
</colgroup>
<tbody>
<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>$6,353</td>
<td>$82,752</td>
<td>$30,000</td>
<td>$30,000</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>72</td>
<td>50</td>
<td>98</td>
<td>50</td>
<td>50</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><sup>7</sup> 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**

The ATF Alcohol and Tobacco diversion program addresses criminal
activities that result in tax evasion for profit and the funding of
violent criminal and terrorist activities through the use of revenues
gained from smuggling alcohol and tobacco products. In terms of customer
service, ATF strives to maintain a high satisfaction rate among State
and local jurisdictions as well as international law enforcement
agencies as it prevents tax revenue losses and stops illicit product
trafficking from one State to another or across international borders.

### 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, technical and scientific expertise, ATF investigates
and dismantles schemes involving tobacco products, and their diversion
from low tax jurisdictions to high tax jurisdictions.

ATF will continue to partner with other federal, State, local, tribal
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 ATF partners to
increase their proficiency in identifying and investigating alcohol and
tobacco criminal activity. ATF will train its enforcement partners to
maximize the use of federal forfeiture statutes to divest criminal
groups of assets derived from diversion and trafficking activity. ATF's
presence in the alcohol diversion and contraband cigarette trafficking
arena assists State, local, tribal and international governments with
recovering and reducing 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
its 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 Canada/United States working group to address illicit alcohol
diversion and contraband cigarette trafficking activity. In addition,
ATF fosters effective working relationships with alcohol and tobacco
industry members as well as law enforcement partnerships with members of
the international law enforcement community.

### 

### Alcohol and Tobacco Information Technology

ATF is pursuing several information technology projects that will
advance the investigation of alcohol and tobacco diversion. For example,
the Law Enforcement Information Sharing Program (LEISP) project will
reduce redundancy, make information in disparate systems accessible, and
create an infrastructure to share information efficiently and seamlessly
with ATF's 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.

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

This program has not been reviewed under the PART.

**V. e-Gov Initiatives**

The Justice Department is fully committed to the President's Management
Agenda (PMA) and the e-Government initiatives that are integral to
achieving the objectives of the PMA. The

e-Government initiatives serve citizens, business, and federal employees
by delivering high quality services more efficiently at a lower price.
The Department is in varying stages of implementing e-Government
solutions and services including initiatives focused on integrating
government wide transactions, processes, standards adoption, and
consolidation of administrative systems that are necessary tools for
agency administration, but are not core to DOJ's mission. To ensure that
DOJ obtains value from the various initiatives, the Department actively
participates in the governance bodies that direct the initiatives, and
we communicate regularly with the other federal agencies that are
serving as the "Managing Partners" to ensure that the initiatives meet
the needs of the Department and its customers. The Department believes
that working with other agencies to implement common or consolidated
solutions will help DOJ to reduce the funding requirements for
administrative and public-facing systems, thereby allowing DOJ to focus
more of its scarce resources on higher priority, mission-related needs.
DOJ's contributions to the Administration's e-Government projects will
facilitate achievement of this objective.

**A. Funding and Costs**

The Department of Justice participates in the following e-Government
initiatives and Lines of Business (LoB):

  --------------------- ----------------- ----------------- ----------------
  Business Gateway      e-Travel          Integrated        Case Management
                                          Acquisition       LoB
                                          Environment       

  Disaster Assistance   Federal Asset     IAE - Loans &     Geospatial LoB
  Improvement Plan      Sales             Grants - Dunn &   
                                          Bradstreet        

  Disaster Assist.      Geospatial        Financial Mgmt.   Budget
  Improvement Plan -    One-Stop          Consolidated LoB  Formulation and
  Capacity Surge                                            Execution LoB

  e-Authentication      GovBenefits.gov   Human Resources   IT
                                          LoB               Infrastructure
                                                            LoB

  e-Rulemaking          Grants.gov        Grants Management 
                                          LoB               
  --------------------- ----------------- ----------------- ----------------

The Department of Justice e-Government expenses -- i.e. DOJ's share of
e-Gov initiatives managed by other federal agencies -- are paid for from
the Department's Working Capital Fund. These costs, along with other
internal e-Government related expenses (oversight and administrative
expenses such as salaries, rent, etc.), are reimbursed by the components
to the WCF. The ATF reimbursement amount is based on the anticipated or
realized benefits from an e-Government initiative. The ATF e-Government
reimbursement to the WCF is \$456,000 for FY2008, and the anticipated
ATF e-Government reimbursement to WCF is \$547,000 for FY2009.

**B. Benefits**

***ATF established baseline cost estimates for each IT investment being
(or planned to be) modified, replaced, or retired due to the
Department's use of an e-Government or Line of Business initiative. ATF
is measuring actual costs of these investments on an ongoing basis. As
ATF completes migrations to common solutions provided by an e-Government
or Line of Business initiative, ATF expects to realize cost savings or
avoidance through retirement or replacement of legacy systems and/or
decreased operational costs. The table below represents only those
e-Government initiatives and Lines of Businesse where ATF expects to
realize benefits in FY2008 and FY2009.***

+--------+---------------+---------------+---------------------------+
| *      | **FY 2008     | **FY 2009     | **Comments**              |
| *e-Gov | Benefits**    | Anticipated   |                           |
| Initia |               | Benefits**    |                           |
| tive** |               |               |                           |
+--------+---------------+---------------+---------------------------+
| e-Tr   | The Learning  | LearnATF      | ATF already utilizes the  |
| aining | Management    | assists in    | enterprise e-Training     |
|        | System,       | developing a  | solution for DOJ. Some of |
|        | LearnATF,     | diverse,      | the benefits for DOJ and  |
|        | assists in    | innovative,   | other agencies using      |
|        | developing a  | and           | e-Training are listed     |
|        | diverse,      | well-trained  | below:                    |
|        | innovative,   | work force.   |                           |
|        | and           | LearnATF      | -   Increased ease for    |
|        | well-trained  | supports this |     DOJ to push           |
|        | work force.   | commitment by |     courseware to         |
|        | LearnATF      | providing     |     standardized          |
|        | supports this | access to a   |     platforms.            |
|        | commitment by | comprehensive |                           |
|        | providing     | catalog of    | -   Increased visibility  |
|        | access to a   | ATF learning  |     of courses offered    |
|        | comprehensive | opportunities |     and possible cross    |
|        | catalog of    | and           |     training              |
|        | ATF learning  | self-service  |     opportunities.        |
|        | opportunities | registration  |                           |
|        | and           | for classroom |                           |
|        | self-service  | training.     |                           |
|        | registration  |               |                           |
|        | for classroom | Increased     |                           |
|        | training.     | ease of       |                           |
|        |               | reporting for |                           |
|        | Increased     | ATF and DOJ.  |                           |
|        | ease of       |               |                           |
|        | reporting for | Increased     |                           |
|        | ATF and DOJ   | purchasing    |                           |
|        | due to        | power due to  |                           |
|        | Enterprise    | volume        |                           |
|        | Human         | pricing.      |                           |
|        | Resources     |               |                           |
|        | Integration   | The ability   |                           |
|        | (EHRI)        | to manage and |                           |
|        | reports that  | track agency  |                           |
|        | will be       | training      |                           |
|        | integrated    | data. This    |                           |
|        | into the      | benefit was   |                           |
|        | system.       | realized      |                           |
|        |               | previously    |                           |
|        | The ability   | since ATF     |                           |
|        | to manage and | already       |                           |
|        | track agency  | utilizes      |                           |
|        | training      | LearnATF.     |                           |
|        | data. This    |               |                           |
|        | benefit was   |               |                           |
|        | realized      |               |                           |
|        | previously    |               |                           |
|        | since ATF     |               |                           |
|        | already       |               |                           |
|        | utilizes      |               |                           |
|        | LearnATF.     |               |                           |
+--------+---------------+---------------+---------------------------+
| e-     | From travel   | From travel   | Migration to the e-Travel |
| Travel | planning and  | planning and  | solution is planned to    |
|        | authorization | authorization | begin in FY08.            |
|        | to            | to            |                           |
|        | r             | r             | Establishing the baseline |
|        | eimbursement, | eimbursement, | cost estimate for this    |
|        | this          | this          | initiative will be        |
|        | end-to-end    | end-to-end    | handled by DOJ.           |
|        | service will  | service will  |                           |
|        | streamline    | streamline    |                           |
|        | travel        | travel        |                           |
|        | management    | management    |                           |
|        | and will      | and will      |                           |
|        | enable the    | enable the    |                           |
|        | government to | government to |                           |
|        | capture real  | capture real  |                           |
|        | time          | time          |                           |
|        | visibility    | visibility    |                           |
|        | into the      | into the      |                           |
|        | buying        | buying        |                           |
|        | choices of    | choices of    |                           |
|        | travelers and | travelers and |                           |
|        | assist        | assist        |                           |
|        | agencies in   | agencies in   |                           |
|        | optimizing    | optimizing    |                           |
|        | their travel  | their travel  |                           |
|        | budgets while | budgets while |                           |
|        | saving        | saving        |                           |
|        | taxpayers     | taxpayers     |                           |
|        | money.        | money.        |                           |
|        |               |               |                           |
|        |               | ATF will also |                           |
|        |               | realize       |                           |
|        |               | long-term     |                           |
|        |               | cost benefits |                           |
|        |               | from the      |                           |
|        |               | r             |                           |
|        |               | e-engineering |                           |
|        |               | of the travel |                           |
|        |               | process after |                           |
|        |               | full          |                           |
|        |               | i             |                           |
|        |               | mplementation |                           |
|        |               | of the travel |                           |
|        |               | solution with |                           |
|        |               | real-time     |                           |
|        |               | integration   |                           |
|        |               | with the      |                           |
|        |               | financial     |                           |
|        |               | system.       |                           |
+--------+---------------+---------------+---------------------------+

**C. Conclusion**

During FY 2008, most DOJ agencies will also be utilizing the OPM hosted
e-Training system, and data will be collected by DOJ. Beginning in
February, 2008 the monthly Enterprise Human Resources Integration (EHRI)
report will be consolidated by DOJ and reported to OPM. The result will
be increased ease of data reporting for ATF and DOJ and increased
visibility of training information within DOJ. Cost savings are expected
in FY 2009 due to volume pricing for maintenance and hosting costs.

The realization of the benefits of e-Travel is contingent upon the
re-engineering of the travel process which requires funding the
implementation and integration of various new systems over a multi-year
period.

[^1]: The IBDCWG Portal is phase I of the larger ATF Knowledge Online
    (ATF KO) portal, which will be the unifying point of presence for
    several ATF information sources.