# Presentation: 814401

## BAGGAGE SCREENING 

- January 11, 2006

- BAGGAGE SCREENING
- INVESTMENT STUDY

- Presented to the Aviation Security Advisory Committee (ASAC)
- Washington, DC

**Notes:**
  TSA is launching a comprehensive baggage screening investment study, as directed by Congress in the Intelligence Reform Act of 2004.

We are requesting ASAC sponsorship of that effort and come before you today to present the scope of the study and the proposed approach.

If you approve, we would submit our findings and recommendations to ASAC for consideration spring/summer of 2006.

## Objective 

**The primary objective of the Baggage Screening Investment Study is to establish, in consultation with industry partners, a strategy for facilitating the installation of cost-effective checked baggage screening systems, consistent with Congressional mandates, including the identification of **
- Cost-saving approaches,
- Needed funding levels,
- Alternative funding sources,
- Innovative funding and financing approaches,
- Recommended enabling legislation, and
- Mechanisms for ongoing effective collaboration throughout planning, design, construction, and operation

**Notes:**
The objective of this study is to agree, with industry, on a plan for expediting installation of optimal baggage screening systems.  That effort will include identifying
Cost saving approaches (planning & design guidelines)
Needed funding levels
Alternative funding sources
Innovative funding tools
Recommended legislation, and
Mechanisms for future collaboration throughout implementation.

- Intelligence Reform and Terrorism Prevention Act of 2004

**A Baggage Screening Investment Study is required:**

**“****(d) COST-SHARING STUDY.—The Secretary of Homeland Security, in consultation with representatives of air carriers, airport operators, and other interested parties, shall submit to the appropriate congressional committees, in conjunction with the submission of the budget for fiscal year 2006 to Congress under section 1105(a) of title 31, United States Code—**
**(1) a proposed formula for cost-sharing among the Federal Government, State and local governments, and the private sector for projects to install in-line baggage screening equipment that reflects the benefits that each of such entities derive from such projects, including national security benefits and labor and other cost savings;**
**(2) recommendations, including recommended legislation, for an equitable, feasible, and expeditious system for defraying the costs of the in-line baggage screening equipment authorized by this title; and**
**(3) the results of a review of innovative financing approaches and possible cost savings associated with the installation of in-line baggage screening equipment at airports**

**Notes:**
This is the specific language in the Intel Reform Bill..   I’m not going to read the language, but there are couple things worth noting:

The text refers to in-line baggage equipment.  Important to note that it’s not cost-effective or necessary for all airports to have in-line systems so TSA is focused on analyzing very specifically, with the airports and airlines, what types of systems make sense for what types of pax flows, terminal configurations, etc.

Also important to note that COST SAVINGS is a focus.  We’ve learned lots from installation and operation of some of the in-line systems that have been  completed.  Now that we’re all smarter, it’s clear that some of the complex systems are not necessary. Simple and lean is good.

Lastly, innovative financing and necessary legislation are explicitly requested.  We’re not restricted to possibilities in existing law or regulation.  Therefore, we would expect that suggested legislative change would be included in our recommendations to you.

## Existing Challenges  

**Many current screening implementations are suboptimal **
- Unnecessarily high operating costs
- High worker injury rates
- Costly airport/airline operational impacts
- Unacceptable passenger service
- Not scalable to match projected traffic growth
**Growing uncertainty about funding sources has slowed capital investments in baggage screening systems**
**Emerging screening technologies are promising, but capital investment still required**
**With current investment levels and design approaches, another 20 years required to fully deploy optimal systems**

**Notes:**
As you’ve seen, one reason we’re doing this study is that Congress asked for it, but the other reason we are commencing this effort relates to the situation on the ground at many airports. 

Existing screening systems are extremely personnel-intensive and Congress is reducing TSA’s staffing budgets.

At many airports, TSA and the airlines are patching things together, but growth in traffic will inevitable result in system failure. 

New technologies anticipated to be available over the next year or so will allow high-speed screening (800-1000 bags/hour), but unless there are systems that can feed the bags at that rate, the new technology is wasted.

Lastly, even if current annual federal investment levels could be sustained, it would take 20 years to complete installation of optimal systems AND during those 20 years, much of the investment would be in replacing obsolete equipment because it had reached the end of it’s useful life. 

## Baggage Screening Investment Study Context

**Airport-Specific Concept Plans**

**Coordinated Plans, ****Designs, and Funding Approach**** for each Airport**

**Refined Strategic Plan**

**Industry Steering Committee as a Working Group of ASAC***

**Airport-specific ****Working Groups**

**Strategic Plan Framework**

**Refined Design Guidelines**

**Funding Levels, Funding/Financing Strategies, & Legislation**

- Baggage Screening Investment Study

**** ASAC - Aviation Security Advisory Committee***

**Notes:**
This graphic simply shows a pictorial view of how the Baggage Screening Investment Study fits into the flow of work.

The industry working groups will refine the Strategic Plan Framework and issue 
Refined Design Guidelines
Airport Specific Concept Plans identifying optimal baggage screening systems for the top 250 airports, and
Recommended funding levels, innovative financing tools, and legislation necessary to implement.

At that point, the Baggage Screening Investment Study is complete and the implementation work continues with airport specific groups working with TSA on individual airport plans and funding approaches.

(If a question arises about the product of the Airport Security Design Guidelines Working Group product and the Planning & Design Guidelines we expect to issue, we  need to explain that our product will be an update to the baggage screening section of the Security Design Guidelines which cover much more than baggage screening.)

## Approach

**Leigh Fisher Associates and McBee Strategic Consulting are assisting TSA with the study**
**Engage the aviation industry through a stakeholder working group under ASAC**
- The working group will be divided into technical and and financial specialty teams, which will report in to a steering group.
**Duration: 3-month study – January through March ’06**
- TSA recognizes that the stated timeframe may not be sufficient and, if necessary, will request a schedule extension to ensure desired outcomes are achievable

**Notes:**
Some analysis to identify the size of the problem has already been done in earlier TSA work.  That preliminary work will be introduced to the working groups and refined with  on-the-ground realities and combined with operational cost data from airports, airlines as well as government costs.

Once we’ve got the basic size of the investment and operational needs, we’ll look at alternatives for sharing the cost, identify planning and design guidelines, develop suggested legislation and establish a go-forward pattern of collaboration between TSA and the industry.

The schedule is aggressive, but TSA would like to adhere to it if at all possible.  

## Desired Outcome and Results

**Establish a national EDS deployment strategy which:**
- Minimizes total life cycle costs
- Expedites deployment of optimal screening systems nationwide
**Identify total capital funding needed and a feasible funding approach based on costs and benefits to all parties**
**Publish refined design guidelines for baggage screening systems incorporating:**
- Major design lessons learned
- Latest information on emerging technologies
- Specific guidance on determining the most cost-effective screening approach
**Establish a methodology for ongoing collaboration between TSA and industry on planning and implementation of checked baggage screening systems**

**Notes:**
We may have covered this indirectly, but here are the key tasks:
Define the costs (capital and operating and including life cycle re-investment)
Develop a cost sharing modeling tool
Evaluate innovative financing options
Identify and evaluate alternative cost and financing formulas
Recommend necessary legislation to allow implementation of sustainable funding options
Establish how TSA is going to move ahead with airports & airlines to implement what would then be a strategic plan.
Submit recommendations to ASAC and TSA.

This is primarily a funding and financing effort and the plan we’ve outlined incorporates a robust involvement of the primary users and funders of this part of the security system. I hope you’ll support this effort.