DEPARTMENT OF 

HOMELAND SECURITY

Opportunities Exist to 

Strengthen Efficiency and 

Effectiveness, Achieve Cost 

Savings, and Improve 

Management Functions

Statement of Cathleen A. Berrick, Managing Director

Homeland Security and Justice

Testimony 

Before the Subcommittee on Oversight 

and Management Efficiency, Committee 

on Homeland Security, House of 

Representatives

For Release on Delivery 

Expected at 9:00 a.m. EST

Friday, April 26, 2013

GAO-13-547T

United States Government Accountability Office
United States Government Accountability Office

Highlights of GAO-13-547T, a testimony

before the Subcommittee on Oversight and 

Management Efficiency, Committee on 

Homeland Security, House of Representatives

April 2013

DEPARTMENT OF HOMELAND SECURITY

Opportunities Exist to Strengthen Efficiency and 

Effectiveness, Achieve Cost Savings, and Improve 

Management Functions

Why GAO Did This Study

Since beginning operations in 2003, 

DHS has become the third-largest 

federal department, with more than 

224,000 employees and an annual 

budget of about $60 billion. Over the 

past 10 years, DHS has implemented 

key homeland security operations and 

achieved important goals to create and 

strengthen a foundation to reach its 

potential. Since 2003, GAO has issued

more than 1,300 reports and 

congressional testimonies designed to 

strengthen DHS’s program 

management, performance 

measurement efforts, and 

management processes, among other 

things. GAO has reported that overlap 

and fragmentation among government 

programs, including those of DHS, can 

cause potential duplication, and 

reducing it could save billions of tax 

dollars annually and help agencies 

provide more efficient and effective 

services. Moreover, in 2003, GAO 

designated implementing and 

transforming DHS as high risk because 

it had to transform 22 agencies into 

one department, and failure to address 

associated risks could have serious 

consequences. This statement 

addresses (1) opportunities for DHS to 

reduce fragmentation, overlap, and 

duplication in its programs; save tax 

dollars; and enhance revenue, and (2) 

opportunities for DHS to strengthen its 

management functions.

What GAO Recommends

While this testimony contains no new 

recommendations, GAO previously 

made about 1,800 recommendations to 

DHS designed to strengthen its 

programs and operations. The 

department has implemented more 

than 60 percent of them and has 

actions under way to address others.

What GAO Found

Since 2011, GAO has identified 11 areas across the Department of Homeland 

Security (DHS) where fragmentation, overlap, or potential duplication exists and 

13 areas of opportunity for cost savings or enhanced revenue collections. In 

these reports, GAO has suggested 53 total actions to the department and 

Congress to help strengthen the efficiency and effectiveness of DHS operations. 

In GAO’s 2013 annual report on federal programs, agencies, offices, and 

initiatives that have duplicative goals or activities, GAO identified 6 new areas 

where DHS could take actions to address fragmentation, overlap, or potential 

duplication or achieve significant cost savings. For example, GAO found that 

DHS does not have a department-wide policy defining research and development

(R&D) or guidance directing components how to report R&D activities. Thus, 

DHS does not know its total annual investment in R&D, which limits its ability to 

oversee components’ R&D efforts. In particular, GAO identified at least 6 

components with R&D activities and an additional $255 million in R&D 

obligations in fiscal year 2011 by DHS components that was not centrally 

tracked. GAO suggested that DHS develop and implement policies and guidance 

for defining and overseeing R&D at the department. In addition, GAO reported 

that by reviewing the appropriateness of the federal cost share the 

Transportation Security Administration (TSA) applies to agreements financing 

airport facility modification projects related to the installation of checked baggage 

screening systems, TSA could, if a reduced cost share was deemed appropriate, 

achieve cost efficiencies of up to $300 million by 2030 and be positioned to install 

a greater number of optimal baggage screening systems. GAO has also updated 

its assessments of the progress that DHS and Congress have made in 

addressing the suggested actions from the 2011 and 2012 annual reports. As of 

March 2013, of the 42 actions from these reports, 5 have been addressed (12 

percent), 24 have been partially addressed (57 percent), and the remaining 13 

have not been addressed (31 percent). Although DHS and Congress have made 

some progress in addressing the issues that GAO has previously identified, 

additional steps are needed to address the remaining areas to achieve 

associated benefits. 

While challenges remain across its missions, DHS has made considerable 

progress since 2003 in transforming its original component agencies into a single 

department. As a result, in its 2013 biennial high-risk update, GAO narrowed the 

scope of the area and changed its focus and name from Implementing and 

Transforming the Department of Homeland Security to Strengthening the 

Department of Homeland Security Management Functions. To more fully address 

this area, DHS needs to further strengthen its acquisition, information technology, 

and financial and human capital management functions. Of the 31 actions and 

outcomes GAO identified as important to addressing this area, DHS has fully or 

mostly addressed 8, partially addressed 16, and initiated 7. Moving forward, DHS 

needs to, for example, validate required acquisition documents in a timely 

manner, and demonstrate measurable progress in meeting cost, schedule, and 

performance metrics for its major acquisition programs. In addition, DHS has 

begun to implement a governance structure to improve information technology 

management consistent with best practices, but the structure covers less than 20 

percent of DHS’s major information technology investments.

View GAO-13-547T. For more information, 

contact Cathleen A. Berrick at (202) 512-3404 

or berrickc@gao.gov.
 

Page 1 GAO-13-547T

Chairman Duncan, Ranking Member Barber, and Members of the 

Subcommittee:

I am pleased to be here today to discuss our work on opportunities for the 

Department of Homeland Security (DHS) to eliminate fragmentation, 

overlap, and duplication in its programs; enhance revenue; and improve 

management functions at the department.1

On April 9, 2013, we issued our third report in response to the statutory 

requirement that we identify and report annually on federal programs, 

agencies, offices and initiatives that have duplicative goals or activities.

Since beginning operations in 

2003, DHS has become the third-largest federal department, with more 

than 224,000 employees and an annual budget of about $60 billion. Over 

the past 10 years, DHS has implemented key homeland security 

operations and achieved important goals to create and strengthen a 

foundation to reach its potential. Since 2003, we have made 

approximately 1,800 recommendations to DHS across more than 1,300 

reports and congressional testimonies designed to strengthen program 

management, performance-measurement efforts, and management 

processes, and enhance coordination and information sharing, among 

other things. DHS has implemented more than 60 percent of these 

recommendations and has actions under way to address others. 

However, the department has more to do to ensure that it conducts its 

missions efficiently and effectively while simultaneously preparing to 

address future challenges that face the department and the nation.

2

 

1

Fragmentation refers to those circumstances in which more than one federal agency (or 

more than one organization within an agency) is involved in the same broad area of 

national need and opportunities exist to improve service delivery. Overlap occurs when 

multiple agencies or programs have similar goals, engage in similar activities or strategies 

to achieve them, or target similar beneficiaries. Duplication occurs when two or more 

agencies or programs are engaged in the same activities or provide the same services to 

the same beneficiaries. 

Since 2011, we have identified 162 areas across the federal government 

where Congress or executive branch agencies, including DHS, could take 

action to reduce fragmentation, overlap, and duplication or achieve cost 

2

Pub. L. No. 111-139, § 21, 124 Stat. 8, 29-30 (2010), 31 U.S.C. § 712 note.

 
 

Page 2 GAO-13-547T

savings to address the rapidly building fiscal pressures facing our nation.3

Moreover, in February 2013, we reported on DHS’s efforts to address the 

high-risk area of Strengthening the Department of Homeland Security 

Management Functions.

We reported that fragmentation among government programs or activities 

can be a harbinger of potential overlap or duplication. Reducing or 

eliminating fragmentation, overlap, or duplication could potentially save 

billions of tax dollars annually and help agencies provide more efficient 

and effective services.

4

My statement today is based on these reports and addresses (1) 

opportunities for DHS to reduce fragmentation, overlap, and duplication in 

its programs; save tax dollars; and enhance revenue, and (2) 

opportunities for DHS to strengthen its management functions. For these 

past reports, among other things, we analyzed DHS documents, reviewed 

and updated our past reports issued since DHS began its operations in 

March 2003, and, interviewed DHS officials. More detailed information on 

the scope and methodology of our previous work can be found within 

each specific report. We conducted this work in accordance with 

generally accepted government auditing standards.

We first designated this area as high-risk in 

2003 because DHS had to consolidate 22 agencies—several with major 

management challenges—into one department. Further, failure to 

effectively address DHS’s management and mission risks could have 

serious consequences for U.S. national and economic security.

 

3 GAO, Opportunities to Reduce Potential Duplication in Government Programs, Save Tax 

Dollars, and Enhance Revenue, GAO-11-318SP (Washington, D.C.: Mar. 1, 2011); 2012 

Annual Report: Opportunities to Reduce Duplication, Overlap and Fragmentation, Achieve 

Savings, and Enhance Revenue, GAO-12-342SP (Washington D.C.: Feb. 28, 2012); and 

2013 Annual Report: Actions Needed to Reduce Fragmentation, Overlap, and Duplication 

and Achieve Other Financial Benefits, GAO-13-279SP (Washington, D.C.: Apr. 9, 2013).

4

GAO, High-Risk Series: An Update, GAO-13-283 (Washington, D.C.: February 2013).
 

Page 3 GAO-13-547T

Since 2011, we have identified 11 areas across DHS where 

fragmentation, overlap, or potential duplication exists, and suggested 24 

actions to the department and Congress to help strengthen the efficiency 

and effectiveness of DHS operations.5

In April 2013, we identified 2 new areas where DHS could take actions to 

address fragmentation, overlap, or potential duplication.

In some cases, there is sufficient 

information available to show that if actions are taken to address 

individual issues, significant financial benefits may be realized. In other 

cases, precise estimates of the extent of potential unnecessary 

duplication, and the cost savings that can be achieved by eliminating any 

such duplication, are difficult to specify in advance of congressional and 

executive branch decision making. However, given the range of areas we 

identified at DHS and the magnitude of many of the programs, the cost 

savings associated with addressing these issues could be significant.

6

 

5

In many cases, the existence of fragmentation, overlap, or duplication can be difficult to 

determine precisely because of a lack of data on programs and activities. Where 

information was not available that would have provided conclusive evidence of 

fragmentation, overlap, or duplication, we often refer to potential unnecessary duplication.

First, we found 

that DHS does not have a department-wide policy defining research and 

development (R&D) or guidance directing how components are to report 

6

GAO-13-279SP. 

DHS Can Strengthen 

the Efficiency and 

Effectiveness of Its 

Operations and 

Achieve Cost Savings 

by Reducing 

Fragmented, 

Overlapping, or 

Potentially 

Duplicative Activities

Areas of Fragmentation, 

Overlap, and Potential 

Duplication at DHS
 

Page 4 GAO-13-547T

R&D activities. As a result, the department does not know its total annual 

investment in R&D, a fact that limits DHS’s ability to oversee components’ 

R&D efforts and align them with agency-wide R&D goals and priorities. 

DHS’s Science and Technology Directorate, Domestic Nuclear Detection 

Office, and the U.S. Coast Guard—the only DHS components that report 

R&D-related budget authority to the Office of Management and Budget 

(OMB) as part of the budget process—reported $568 million in fiscal year 

2011 R&D budget authority. However, we identified at least 6 

components with R&D activities and an additional $255 million in R&D 

obligations in fiscal year 2011 by other DHS components that were not 

reported to OMB in the budget process. To address this issue, we 

suggested that DHS develop and implement policies and guidance for 

defining and overseeing R&D at the department. Second, we reported 

that the fragmentation of field-based information sharing can be 

disadvantageous if activities are uncoordinated, as well as if opportunities 

to leverage resources across entities are not fully exploited. We 

suggested that DHS and other relevant agencies develop a mechanism 

that will allow them to hold field-based information-sharing entities 

accountable for coordinating with each other and monitor and evaluate 

the coordination results achieved, as well as identify characteristics of 

entities and assess specific geographic areas in which practices that 

could enhance coordination and reduce unnecessary overlap could be 

adopted. DHS generally agreed with our suggestions and is reported 

taking steps to address them. Moving forward, we will monitor DHS’s 

progress to address these actions.

Concurrent with the release of our 2013 annual report, we updated our 

assessments of the progress that DHS has made in addressing the 

actions we suggested in our 2011 and 2012 annual reports.7

 

7

An area may comprise a single or multiple suggested actions. We evaluated the progress 

of those areas identified in our March 2011 and February 2012 reports by determining an 

“overall assessment” rating for each area based on the individual rating of each action 

with the area. For congressional actions, we applied the following criteria: “addressed” 

means relevant legislation has been enacted; “partially addressed” means a relevant bill 

has passed a committee, the House of Representatives, or the Senate, or relevant 

legislation only addressed part of the action needed; and “not addressed” means a bill 

may have been introduced but did not pass out of a committee, or no relevant legislation 

has been introduced. For executive branch actions, “addressed” means implementation of 

the action needed has been completed; “partially addressed” means a response to the 

action needed is in development, but not yet completed; and “not addressed” means that 

minimal or no progress has been made toward implementing the action needed.

Table 1 

outlines the 2011-2012 DHS-related areas in which we identified 
 

Page 5 GAO-13-547T

fragmentation, overlap, or potential duplication, and highlights DHS’s and 

Congress’s progress in addressing them.

Table 1: Assessment of DHS’s Progress in Addressing the Areas of Fragmentation, Overlap, or Duplication Identified in the 

2011-2012 Annual Reports

Annual 

report Areas identifieda Overall assessment of  2011 – 2012 actions

2011

b

Securing the Northern Border (Area 22): Department of Homeland Security (DHS) 

oversight could help eliminate potential duplicating efforts of interagency forums in 

securing the northern border. ○

2011 Transportation Security Administration (TSA) Security Assessments (Area 24): 

TSA’s security assessments on commercial trucking companies overlap with those of 

another agency, but efforts are under way to address the overlap.

◐

2011 Sharing Security-Related Information with Public Transit Agencies (Area 25): The 

Department of Homeland Security could streamline mechanisms for sharing securityrelated information with public transit agencies to help address overlapping information.

◐

2011 Federal Emergency Management Agency (FEMA) Grants (Area 26): FEMA needs to 

improve its oversight of grants and establish a framework for assessing capabilities to 

identify gaps and prioritize investments.

◐

2012 Protection of Food and Agriculture (Area 1): Centrally coordinated oversight is needed 

to ensure more than nine federal agencies effectively and efficiently implement the 

nation’s fragmented policy to defend the food and agriculture systems against potential 

terrorist attacks and major disasters.

◐

2012 Cybersecurity Human Capital (Area 12): Government-wide initiatives to enhance the 

cybersecurity workforce in the federal government need better structure, planning, 

guidance, and coordination to reduce duplication.

◐

2012 Homeland Security Grants (Area 17): DHS needs better project information and 

coordination among four overlapping grant programs. ◐

2012 Federal Facility Risk Assessments (Area 18): Agencies are making duplicate payments 

for facility risk assessments by completing their own assessments while also paying DHS 

for assessments that the department is not performing.

◐

2012 Information Technology Investment Management (Area 19): The Office of 

Management and Budget and the Departments of Defense and Energy need to address 

potentially duplicative information technology investments to avoid investing in 

unnecessary systems.

◐

Legend:

◐= Partially addressed, meaning at least one action needed in that area showed some progress 

toward implementation, but not all actions were addressed.

○= Not addressed, meaning none of the actions needed in that area were addressed.

Source: GAO.

a

The area numbers indicate the number assigned to the area when it was originally reported.

b

Assessment as of March 6, 2013.
 

Page 6 GAO-13-547T

In our March 2011 and February 2012 reports, in particular, we suggested 

that DHS or Congress take 21 actions to address the areas of overlap or 

potential duplication that we found. Of these 21 actions, 2 (approximately 

10 percent) have been addressed, 13 (approximately 62 percent) have 

been partially addressed, and the remaining 6 (approximately 29 percent) 

have not been addressed.8 For example, to address the potential for 

overlap among three information-sharing mechanisms that DHS funds 

and uses to communicate security-related information with public transit 

agencies, in March 2011, we suggested that DHS could identify and 

implement ways to more efficiently share security-related information by 

assessing the various mechanisms available to public transit agencies.9

Although the executive branch and Congress have made some progress 

in addressing the issues that we have previously identified, additional 

We assessed this action as partially addressed because TSA has taken 

steps to streamline information sharing with public transit agencies, but 

the agency continues to maintain various mechanisms to share such 

information. In March 2011, we also found that TSA’s security 

assessments for hazardous material trucking companies overlapped with 

efforts conducted by the Department of Transportation’s (DOT) Federal 

Motor Carrier Safety Administration (FMCSA), and as a result, 

government resources were not being used effectively. After we 

discussed this overlap with TSA in January 2011, agency officials stated 

that, moving forward, they intend to only conduct reviews on trucking 

companies that are not covered by FMCSA’s program, an action that, if 

implemented as intended, we projected could save more than $1 million 

over the next 5 years. We also suggested that TSA and FMCSA could 

share each other’s schedules for conducting future security reviews, and 

avoid scheduling reviews on hazardous material trucking companies that 

have recently received, or are scheduled to receive, a review from the 

other agency. We assessed this action as addressed because in August 

2011, TSA reported that it had discontinued conducting security reviews 

on trucking companies that are covered by the FMCSA program.

Discontinuing such reviews should eliminate the short-term overlap 

between TSA’s and FMCSA’s reviews of hazardous material trucking 

companies.

 

8

Percentages do not add to 100 percent because of rounding. 

9

DHS could not provide us with a reliable estimate of the potential cost savings resulting 

from consolidating these three mechanisms. 
 

Page 7 GAO-13-547T

steps are needed to address the remaining areas and achieve associated 

benefits. For example, to eliminate potential duplicating efforts of 

interagency forums in securing the northern border, in March 2011, we 

reported that DHS should provide guidance to and oversight of 

interagency forums to prevent duplication of efforts and help effectively 

utilize personnel resources to strengthen coordination efforts along the 

northern border.10 Further, the four DHS grant programs that we reported 

on in February 2012—the State Homeland Security Program, the Urban 

Areas Security Initiative, the Port Security Grant Program, and the Transit 

Security Grant Program—have multiple areas of overlap and can be 

sources of potential unnecessary duplication. These grant programs, 

which FEMA used to allocate about $20.3 billion to grant recipients from 

fiscal years 2002 through 2011, have similar goals and fund similar 

activities, such as equipment and training, in overlapping jurisdictions. To 

address these areas of overlap, we reported that Congress may want to 

consider requiring DHS to report on the results of its efforts to identify and 

prevent unnecessary duplication within and across these grant programs, 

and consider these results when making future funding decisions for 

these programs. Such reporting could help ensure that both Congress 

and FEMA steer scarce resources to homeland security needs in the 

most efficient, cost-effective way possible.11 See appendix I, table 4, for a 

summary of the fragmentation, overlap, and duplication areas and actions 

we identified in our 2011-2013 annual reports that are relevant to DHS.

 

10As of March 2013, DHS had not taken steps to determine the benefits of participating in 

the interagency forums or identified the costs incurred by all partners participating in each 

forum. 

11The President’s fiscal year 2014 budget request proposes consolidating state and local 

preparedness grant programs (excluding Emergency Management Performance Grants 

and fire grants) into the National Preparedness Grant Program. If approved, and 

depending on its final form and execution, the consolidated National Preparedness Grant 

Program could help reduce redundancies and mitigate the potential for unnecessary 

duplication.
 

Page 8 GAO-13-547T

Our 2011-2013 annual reports also identified 13 areas where DHS or 

Congress should consider taking 29 actions to reduce the cost of 

operations or enhance revenue collection for the Department of the 

Treasury.12

Table 2: Cost Savings and Revenue Enhancement Opportunities Identified in Our 2013 Annual Report

Most recently, in April 2013, we identified 4 cost-savings and 

revenue enhancement areas related to DHS. Table 2 provides a 

summary of the 2011-2012 DHS-related areas in which we identified 

opportunities for cost savings or revenue enhancement, as well the status 

of efforts to address these areas.

Annual report Areas identifieda

2013

 

Agricultural Quarantine Inspection Fees (Area 18): The United States Department of Agriculture’s Animal and 

Plant Health Inspection Service could have achieved as much as $325 million in savings (based on fiscal year 

2011 data, as reported in GAO’s March 2013 report) by more fully aligning fees with program costs; although the 

savings would be recurring, the amount would depend on the cost-collections gap in a given fiscal year and would 

result in a reduced reliance on U.S. Customs and Border Protection’s annual Salaries and Expenses 

appropriations used for agricultural inspection services.

2013 Checked Baggage Screening (Area 28): By reviewing the appropriateness of the federal cost share the 

Transportation Security Administration applies to agreements financing airport facility modification projects related 

to the installation of checked baggage screening systems, the Transportation Security Administration could, if a 

reduced cost share was deemed appropriate, achieve cost efficiencies of up to $300 million by 2030 and be 

positioned to install a greater number of optimal baggage screening systems than it currently anticipates.

2013 Cloud Computing (Area 29): Better planning of cloud-based computing solutions provides opportunity for 

potential savings of millions of dollars.

2013 Information Technology Operations and Maintenance (Area 30): Strengthening oversight of key federal 

agencies’ major information technology investments in operations and maintenance provides opportunity for 

savings on billions in information technology investments.

Source: GAO. 

a

In addition, in April 2013 we also reported on the steps that DHS and 

Congress have taken to address the cost savings and revenue 

enhancement areas identified in our 2011 and 2012 annual reports. Table 

3 provides a summary of the 2011-2012 DHS-related areas in which we 

The area numbers indicate the number assigned to the area when it was originally reported.

 

12In some cases, there is sufficient information to estimate potential savings or other 

benefits if actions are taken to address individual issues. In other cases, estimates of cost 

savings or other benefits would depend upon what congressional and executive branch 

decisions were made, including how certain our recommendations are implemented. See 

appendix I, table 5, for a summary of cost savings and revenue enhancement areas and 

actions we identified in our 2011-2013 annual reports that are relevant to DHS.

Opportunities for CostSaving and Revenue 

Enhancements at DHS
 

Page 9 GAO-13-547T

identified opportunities for cost savings or revenue enhancement, as well 

the status of efforts to address these areas.

Table 3: Assessments of DHS’s Progress in Addressing the Areas of Cost Savings or Revenue Enhancement in the 2011-2012 

Annual Reports

Annual report Areas identifieda Overall assessment of

 2011 – 2012 actions

2011

b

Award Fee Contracts (Area 49): Adherence to guidance on award fee contracts could 

improve agencies’ use of award fees and produce savings. Several major agencies spent 

over $300 billion from fiscal year 2004 through fiscal year 2008 on contracts that included 

monetary incentives known as award fees.

●

2011 DHS’s Management of Acquisitions (Area 75/76): The Department of Homeland 

Security’s (DHS) management of acquisitions could be strengthened to reduce 

inefficiencies, cost overruns, and schedule and performance shortfalls. DHS acquisition 

spending increased by 66 percent since fiscal year 2004—$8.5 billion in fiscal year 2004 

to $14.2 billion in fiscal year 2009.

◐

2011 TSA’s Behavior-Based Screening (Area 77): Validation of the Transportation Security 

Administration’s (TSA) behavior-based screening program is needed to justify funding or 

expansion.

◐

2011 Baggage Screening Systems (Area 78): More efficient baggage screening systems 

could result in about $470 million in reduced TSA personnel costs over the next 5 years. ◐

2011 Customs Fee Collections (Area 79): Clarifying availability of certain customs fee 

collections could produce a one-time savings of $640 million. ●

2012 Border Security (Area 47): Delaying proposed investments for future acquisitions of 

border surveillance technology until DHS better defines and measures benefits and 

estimates life-cycle costs could help ensure the most effective use of future program 

funding. U.S. Customs and Border Protection (CBP) requested $242 million to fund the 

new plan for fiscal year 2012.

◐

2012 Passenger Aviation Security Fees (Area 48): Options for adjusting the passenger 

aviation security fee could further offset billions of dollars in civil aviation security costs. 

These options could increase fee collections from about $2 billion to $10 billion over 5 

years. 

○

2012 Immigration Inspection Fee (Area 49): The air passenger immigration inspection user 

fee should be reviewed and adjusted to fully recover the cost of the air passenger 

immigration inspection activities conducted by DHS’s U.S. Immigration and Customs 

Enforcement and CBP rather than using general fund appropriations. In 2011. This could 

have resulted in a reduction of about $178 million in appropriated funds used for 

inspection services.

◐

2012 Domestic Disaster Assistance (Area 51): The Federal Emergency Management Agency 

could reduce the costs to the federal government related to major disasters declared by 

the President by updating the principal indicator on which disaster funding decisions are 

based and better measuring a state’s capacity to respond without federal assistance.

○

Legend:

● = Addressed, meaning all actions needed in that area were addressed.

◐= Partially addressed, meaning at least one action needed in that area showed some progress 

toward implementation, but not all actions were addressed.
 

Page 10 GAO-13-547T

○ = Not addressed, meaning none of the actions needed in that area were addressed.

Source: GAO

a

The area numbers indicate the number assigned to the area when it was originally reported.

b

Assessment as of March 6, 2013.

Of the 21 related actions we suggested that DHS or Congress take in our 

March 2011 and February 2012 reports to either reduce the cost of 

government operations or enhance revenue collection, as of March 2013, 

3 (about 14 percent) have been addressed, 11 (about 52 percent) have 

been partially addressed, and 7 (about 33 percent) have not been 

addressed.13

Although DHS and Congress have made some progress in addressing 

the issues that we have previously identified that may produce cost 

savings or revenue enhancements, additional steps are needed. For 

example, in February 2012, we reported that FEMA should develop and 

implement a methodology that provides a more comprehensive 

assessment of a jurisdiction’s capability to respond to and recover from a 

For example, in February 2012, we reported that to increase 

the likelihood of successful implementation of the Arizona Border 

Surveillance Technology Plan, minimize performance risks and help 

justify program funding, the Commissioner of CBP should update the 

agency’s cost estimate for the plan using best practices. This year, we 

assessed this action as partially addressed because CBP initiated action 

to update its cost estimate, using best practices, for the plan by providing 

revised cost estimates in February and March 2012 for the plan’s two 

largest projects. However, CBP has not independently verified its life 

cycle cost estimates for these projects with independent cost estimates 

and reconciled any differences with each system’s respective life cycle 

cost estimate, consistent with best practices. Such action would help CBP 

better ensure the reliability of each system’s cost estimate. Further, in 

March 2011, we stated that Congress may wish to consider limiting 

program funding pending receipt of an independent assessment of TSA’s 

Screening of Passengers by Observation Techniques (SPOT) program. 

This year, we assessed this action as addressed because Congress froze 

the program funds at the fiscal year 2010 level and funded less than half 

of TSA’s fiscal year 2012 request for full-time behavior detection officers.

 

13Percentages do not add to 100 percent because of rounding. In assessing progress on 

the areas we identified in our 2011 annual report for this year’s report, we combined two 

areas related to the Department of Homeland Security’s management of acquisitions 

(Areas 75 and 76) into one area.
 

Page 11 GAO-13-547T

disaster without federal assistance. As of March 2013, FEMA had not 

addressed this action. In addition, in the 2012 report, we suggested that 

Congress, working with the Administrator of TSA, may wish to consider 

increasing the passenger aviation security fee according to one of many 

options, including but not limited to the President’s Deficit Reduction Plan 

option ($7.50 per one-way trip by 2017) or the Congressional Budget 

Office, President’s Debt Commission, and House Budget Committee 

options ($5 per one-way trip). These options could increase fee 

collections over existing levels from about $2 billion to $10 billion over 5 

years. However, as of March 2013, Congress had not passed legislation 

to increase the passenger security fee.14

GAO’s Action Tracker

For additional information on our 

assessment of DHS’s and Congress’s efforts to address our previously 

reported actions, see .

15

Following its establishment in 2003, DHS focused its efforts primarily on 

implementing its various missions to meet pressing homeland security 

needs and threats, and less on creating and integrating a fully and 

effectively functioning department. As the department matured, it has put 

into place management policies and processes and made a range of 

other enhancements to its management functions, which include 

acquisition, information technology, financial, and human capital 

management. However, DHS has not always effectively executed or 

integrated these functions.

 

14In the President’s fiscal year 2014 budget request, TSA proposes to replace the current 

“per-enplanement” fee structure with a “per one-way trip” fee structure so that passengers 

pay the fee only one time when traveling to their destination. It also removes the current 

statutory fee limit and replaces it with a statutory fee minimum of $5.00 in 2014, with 

annual incremental increases of 50 cents from 2015 to 2019, resulting in a fee of $7.50 

per one-way trip in 2019 and thereafter. According to TSA, the proposed fee would 

increase collections by an estimated $25.9 billion over 10 years. Of this amount, $7.9 

billion will be applied to increase offsets to the discretionary costs of aviation security and 

the remaining $18 billion will be treated a mandatory savings and deposited in the general 

fund for deficit reduction. This proposal presents an option that, consistent with our 

suggested action, Congress may consider in determining whether to take legislative action 

to change the fee.

15GAO’s Action Tracker is a publicly accessible website of the 162 areas and 

approximately 380 suggested actions presented in our 2011, 2012, and 2013 reports. 

GAO’s Action Tracker includes progress updates and assessments of legislative and 

executive branch actions needed. We will add areas and suggested actions identified in 

future reports to GAO’s Action Tracker and periodically update the status of all identified 

areas and activities.

DHS Needs to 

Strengthen Its 

Management 

Functions 
 

Page 12 GAO-13-547T

The department has made considerable progress in transforming its 

original component agencies into a single cabinet-level department and 

positioning itself to achieve its full potential; however, challenges remain 

for DHS to address across its range of missions. DHS has also made 

important strides in strengthening the department’s management 

functions and in integrating those functions across the department. As a 

result, in February 2013, we narrowed the scope of the high-risk area and 

changed the focus and name from Implementing and Transforming the 

Department of Homeland Security to Strengthening the Department of 

Homeland Security Management Functions.

16

• Acquisition management: Although DHS has made progress in 

strengthening its acquisition function, most of DHS’s major acquisition 

programs continue to cost more than expected, take longer to deploy 

than planned, or deliver less capability than promised. We identified 

42 programs that experienced cost growth, schedule slips, or both, 

with 16 of the programs’ costs increasing from a total of $19.7 billion 

in 2008 to $52.2 billion in 2011—an aggregate increase of 166 

percent. We reported in September 2012 that DHS leadership has 

authorized and continued to invest in major acquisition programs even 

though the vast majority of those programs lack foundational 

documents demonstrating the knowledge needed to help manage 

risks and measure performance.

Of the 31 actions and 

outcomes GAO identified as important to addressing this area, DHS has 

fully or mostly addressed 8, partially addressed 16, and initiated 7. 

Moving forward, continued progress is needed in order to mitigate the 

risks that management weaknesses pose to mission accomplishment and 

the efficient and effective use of the department’s resources. For 

example:

17

 

16

We recommended that DHS 

modify acquisition policy to better reflect key program and portfolio 

management practices and ensure acquisition programs fully comply 

with DHS acquisition policy. DHS concurred with our 

recommendations and reported taking actions to address some of 

them. Moving forward, DHS needs to, for example, validate required 

acquisition documents in a timely manner, and demonstrate 

measurable progress in meeting cost, schedule, and performance 

metrics for its major acquisition programs.

GAO-13-283. 

17GAO, Homeland Security: DHS Requires More Disciplined Investment Management to 

Help Meet Mission Needs, GAO-12-833, (Washington D.C.: Sept. 18, 2012).
 

Page 13 GAO-13-547T

• Information technology management: DHS has defined and begun 

to implement a vision for a tiered governance structure intended to 

improve information technology (IT) program and portfolio 

management, which is generally consistent with best practices. 

However, the governance structure covers less than 20 percent 

(about 16 of 80) of DHS’s major IT investments and 3 of its 13 

portfolios, and the department has not yet finalized the policies and 

procedures associated with this structure. In July 2012, we 

recommended that DHS finalize the policies and procedures and 

continue to implement the structure. DHS agreed with these 

recommendations and estimated it would address them by September 

2013.18

• Financial management: DHS has, among other things, received a 

qualified audit opinion on its fiscal year 2012 financial statements for 

the first time since the department’s creation. DHS is working to 

resolve the audit qualification to obtain an unqualified opinion for fiscal 

year 2013. However, DHS components are currently in the early 

planning stages of their financial systems modernization efforts, and 

until these efforts are complete, their current systems will continue to 

inadequately support effective financial management, in part because 

of their lack of substantial compliance with key federal financial 

management requirements. Without sound controls and systems, 

DHS faces challenges in obtaining and sustaining audit opinions on its 

financial statement and internal controls over financial reporting, as 

well as ensuring its financial management systems generate reliable, 

useful, and timely information for day-to-day decision making.

• Human capital management: In December 2012, we identified 

several factors that have hampered DHS’s strategic workforce 

planning efforts and recommended, among other things, that DHS 

identify and document additional performance measures to assess 

workforce planning efforts.19

 

18GAO, Information Technology: DHS Needs to Further Define and Implement Its New 

Governance Process, 

DHS agreed with these 

recommendations and stated that it plans to take actions to address 

them. In addition, DHS has made efforts to improve employee morale, 

such as taking actions to determine the root causes of morale 

GAO-12-818 (Washington, D.C.: July 25, 2012). 

19GAO, DHS Strategic Workforce Planning: Oversight of Departmentwide Efforts Should 

Be Strengthened, GAO-13-65 (Washington D.C.: Dec. 3, 2012). 
 

Page 14 GAO-13-547T

problems. Despite these efforts, however, federal surveys have 

consistently found that DHS employees are less satisfied with their 

jobs than the government-wide average. In September 2012, we 

recommended, among other things, that DHS improve its root cause 

analysis efforts of morale issues. DHS agreed with these 

recommendations and noted actions it plans to take to address 

them.20

In conclusion, given DHS’s significant leadership responsibilities in 

securing the homeland, it is critical that the department’s programs and 

activities are operating as efficiently and effectively as possible; that they 

are sustainable; and that they continue to mature, evolve, and adapt to 

address pressing security needs. Since it began operations in 2003, DHS 

has implemented key homeland security operations and achieved 

important goals and milestones in many areas. These accomplishments 

are especially noteworthy given that the department has had to work to 

transform itself into a fully functioning cabinet department while 

implementing its missions. However, our work has shown that DHS can 

take actions to reduce fragmentation, overlap, and unnecessary 

duplication to improve the efficiency of its operations and achieve cost 

savings in several areas. Further, DHS has taken steps to strengthen its 

management functions and integrate them across the department; 

however, continued progress is needed to mitigate the risks that 

management weaknesses pose to mission accomplishment and the 

efficient and effective use of the department’s resources. DHS has indeed 

made significant strides in protecting the homeland, but has yet to reach 

its full potential.

Chairman Duncan, Ranking Member Barber, and members of the 

subcommittee, this concludes my prepared statement. I would be pleased 

to respond to any questions that members of the subcommittee may 

have.

 

20GAO, Department of Homeland Security: Taking Further Action to Better Determine 

Causes of Morale Problems Would Assist in Targeting Action Plans, GAO-12-940 

(Washington, D.C.: Sept. 28, 2012).
 

Page 15 GAO-13-547T

For further information regarding this testimony, please contact Cathleen 

A. Berrick at (202) 512-3404 or berrickc@gao.gov. In addition, contact 

points for our Offices of Congressional Relations and Public Affairs may 

be found on the last page of this statement. Individuals who made key 

contributions to this testimony are Kathryn Bernet, Assistant Director; 

Elizabeth Luke; and Meg Ullengren.

Contacts and 

Acknowledgments 
Appendix I: Areas and Actions Identified in 

2011-2013 Annual Reports Related to the 

Department of Homeland Security

Page 16 GAO-13-547T

This enclosure presents a summary of the areas and actions we identified 

in our 2011-2013 annual reports that are relevant to the Department of 

Homeland Security (DHS).1

Table 4: Assessment of DHS’s Progress in Addressing the Areas of Fragmentation, Overlap, and Duplication and Related 

Actions Identified in 2011-2013 Annual Reports

It also includes our assessment of the overall 

progress made in each of the areas and the progress made on each 

action that we identified in our 2011 and 2012 annual reports in which 

Congress and DHS could take actions to reduce or eliminate 

fragmentation, overlap, and potential duplication or achieve other 

potential financial benefits. As of April 26, 2013, we have not assessed 

DHS’s progress in addressing the relevant 2013 areas. Table 4 presents 

our assessment of the overall progress made in implementing the actions 

needed in the areas related to fragmentation, overlap, or duplication. 

Table 5 presents our assessment of the overall progress made in 

implementing the actions needed in the areas related to cost savings or 

revenue enhancement.

Annual report Areas identified Assessment

2011 Securing the Northern Border (Area 22): Department of Homeland Security (DHS) oversight 

could help eliminate potential duplicating efforts of interagency forums in securing the northern 

border. ○

Action 1: DHS should provide guidance and oversight for interagency forums— which include 

both Integrated Border Enforcement Team (IBET) and Border Enforcement Security Task Force 

(BEST) interagency forums—to help prevent duplication of effort and help efficiently utilize 

personnel resources to strengthen DHS’s coordination efforts along the northern border.

Action 2: As DHS establishes a mechanism for determining the benefits of participating in the 

IBET and BEST interagency forums, DHS could lead efforts to develop a framework for identifying 

the costs incurred by all partners participating in each forum.

○

○

2011 TSA’s Security Assessments (Area 24): The Transportation Security Administration’s (TSA) 

security assessments on commercial trucking companies overlap with those of another agency, 

but efforts are underway to address the overlap.

◐

 

1

GAO, Opportunities to Reduce Potential Duplication in Government Programs, Save Tax 

Dollars, and Enhance Revenue, GAO-11-318SP (Washington, D.C.: Mar. 1, 2011); 2012 

Annual Report: Opportunities to Reduce Duplication, Overlap, and Fragmentation, 

Achieve Savings, and Enhance Revenue, GAO-12-342SP (Washington, D.C.: Feb. 28, 

2012); and 2013 Annual Report: Actions Needed to Reduce Fragmentation, Overlap, and 

Duplication and Achieve Other Financial Benefits, GAO-13-279SP (Washington, D.C.: 

Apr. 9, 2013).

Appendix I: Areas and Actions Identified in 

2011-2013 Annual Reports Related to the 

Department of Homeland Security
Appendix I: Areas and Actions Identified in 

2011-2013 Annual Reports Related to the 

Department of Homeland Security

Page 17 GAO-13-547T

Annual report Areas identified Assessment

Action 1: TSA and the Federal Motor Carrier Safety Administration (FMCSA) could improve 

interagency coordination by sharing each other’s schedules for conducting future security 

reviews, and avoid scheduling reviews on hazardous material trucking companies that have 

recently received, or are scheduled to receive, a review from the other agency. TSA could also 

discontinue conducting voluntary security reviews on hazardous material trucking companies, 

thereby enabling TSA to increase its security efforts in other areas. In August 2011, TSA reported 

that the agency had discontinued conducting security reviews on trucking companies that are 

covered by the FMCSA program. Discontinuing such reviews could save more than $1 million 

over the next 5 years.

Action 2: TSA could request that the full results of past FMCSA security reviews of trucking 

companies be provided through an existing Department of Transportation (DOT) web portal. 

Doing so would require cooperation from FMCSA.

Action 3: TSA and FMCSA should continue efforts toward the long-term goal of TSA assuming 

full regulatory responsibility from FMCSA for commercial trucking security, thereby reducing 

fragmentation.

●

○

◐

2011 Sharing Security-Related Information with Public Transit Agencies (Area 25): DHS could 

streamline mechanisms for sharing security-related information with public transit agencies to 

help address overlapping information.

◐

Action 1: DHS and TSA could identify and implement ways to more efficiently share securityrelated information by assessing the various mechanisms available to public transit agencies—

including DHS’s information network, TSA’s portal on the network, and the public transit analysis 

center—as well as the information they provide, and identify opportunities to streamline these 

mechanisms. TSA officials stated in September 2010 that TSA applied $2.5 billion for fiscal years 

2009 and 2010 to its portal on DHS’s information network, primarily on developing and organizing 

data for all transportation modes.

Action 2: DHS could develop and track verifiable cost data specific to each of its informationsharing mechanisms, as part of TSA streamlining and financial management efforts. Developing 

such baseline cost data could assist TSA in identifying potential cost savings resulting from the 

consolidation of these mechanisms and provide opportunities for the agency to better allocate its 

information-sharing resources.

◐

◐

2011 FEMA Grants (Area 26): The Federal Emergency Management Agency (FEMA) needs to 

improve its oversight of grants and establish a framework for assessing capabilities to identify 

gaps and prioritize investments. 

◐

Action 1: FEMA could benefit from examining its grant programs and coordinating its application 

process to eliminate or reduce redundancy among grant recipients and program purposes.

Action 2: Congress may wish to consider limiting preparedness grant funding to maintaining 

existing capabilities (as determined by FEMA) until FEMA completes a national preparedness 

assessment of capability gaps at each level based on tiered, capability-specific performance 

objectives to enable prioritization of grant funding. In April 2011, Congress reduced funding for 

FEMA preparedness grants by $875 million from the amount requested in the President’s fiscal 

year 2011 budget. In December 2011, Congress reduced funding for FEMA preparedness grants 

by $1.28 billion from the amount requested in the President’s fiscal year 2012 budget.

Action 3: FEMA should complete a national preparedness assessment of capability gaps at each 

level based on tiered, capability-specific performance objectives to enable prioritization of grant 

funding, and FEMA could identify the potential costs for establishing and maintaining those 

capabilities at each level and determine what capabilities federal agencies should provide.

Action 4: Once FEMA has completed its assessment, Congress may wish to consider limiting the 

use of federal preparedness grant programs to fund only projects to fill identified, validated, and 

documented capability gaps that may (or may not) include maintaining existing capabilities 

developed.

◐

◐

◐

○
Appendix I: Areas and Actions Identified in 

2011-2013 Annual Reports Related to the 

Department of Homeland Security

Page 18 GAO-13-547T

Annual report Areas identified Assessment

2012 Protection of Food and Agriculture (Area 1): Centrally coordinated oversight is needed to 

ensure more than nine federal agencies effectively and efficiently implement the nation’s 

fragmented policy to defend the food and agriculture systems against potential terrorist attacks 

and major disasters.

◐

Action 1: To help ensure that the federal government is effectively implementing the nation’s food 

and agriculture defense policy, the Secretary of Homeland Security should resume DHS’s efforts 

to coordinate agencies’ overall Homeland Security Presidential Directive 9 (HSPD-9) 

implementation efforts.

◐

2012 Cybersecurity Human Capital (Area 12): Governmentwide initiatives to enhance cybersecurity

workforce in the federal government need better structure, planning, guidance, and coordination 

to reduce duplication.

◐

Action 1: To ensure that governmentwide cybersecurity workforce initiatives are better 

coordinated, the Directors of the Office of Management and Budget (OMB) and the Office of 

Personnel Management (OPM) and the Secretaries of Commerce and Homeland Security should 

consolidate and align efforts to define roles, responsibilities, skills, and competencies for the 

federal cybersecurity workforce.

Action 2: The Secretary of Homeland Security should implement a process for tracking agency 

use of training, gather feedback from agencies on the training’s value and opportunities for 

improvement, and develop a process to coordinate training offered to minimize the production and 

distribution of duplicative products.

◐

◐

2012 Homeland Security Grants (Area 17): DHS needs better project information and coordination 

among four overlapping grant programs. ◐

Action 1: To help reduce the risk of unnecessary duplication by strengthening the administration 

and oversight of these programs, FEMA’s Administrator should take steps, when developing the 

Non-Disaster Grants Management system and responding to the May 2011 FEMA report 

recommendations on data requirements, to ensure that FEMA collects project information with the 

level of detail needed to better position the agency to identify any potential unnecessary 

duplication within and across the four grant programs, weighing any additional costs of collecting 

these data.

Action 2: To help reduce the risk of unnecessary duplication by strengthening the administration 

and oversight of these programs, FEMA Administrator should explore opportunities to enhance 

FEMA’s internal coordination and administration of the programs in order to identify and mitigate 

the potential for any unnecessary duplication.

Action 3: Congress may want to consider requiring DHS to report on the results of its efforts to 

identify and prevent unnecessary duplication within and across the State Homeland Security 

Program, Urban Areas Security Initiative, Port Security Grant Program, and Transit Security Grant 

Program, and consider these results when making future funding decisions for these programs. 

From fiscal years 2002 through 2011, FEMA allocated about $20.3 billion to grant recipients 

through these four programs.

◐

◐

○

2012 Federal Facility Risk Assessments (Area 18): Agencies are making duplicate payments for 

facility risk assessments by completing their own assessments, while also paying DHS for 

assessments that the department is not performing.

◐
Appendix I: Areas and Actions Identified in 

2011-2013 Annual Reports Related to the 

Department of Homeland Security

Page 19 GAO-13-547T

Annual report Areas identified Assessment

Action 1: To address the duplicative federal facility risk assessments conducted by multiple 

federal agencies, the Secretary of DHS should direct the Director of the Federal Protective 

Service (FPS) to develop interim solutions for completing risk assessments while addressing the 

Risk Assessment and Management Program’s (RAMP) challenges.

Action 2: To address the duplicative federal facility risk assessments conducted by multiple 

federal agencies, the Director of FPS should make information about the estimated costs of key 

activities and the basis for these estimates available to affected parties to improve transparency.

Action 3: To address the duplicative federal facility risk assessments conducted by multiple 

federal agencies, DHS should work with federal agencies to determine their reasons for 

duplicating the activities included in FPS’s risk assessments and identify measures to reduce this 

duplication.

◐

◐

○

2012 Information Technology Investment Management (Area 19): The Office of Management and 

Budget and the Departments of Defense and Energy need to address potentially duplicative 

information technology (IT) investments to avoid investing in unnecessary systems. Identifying 

and consolidating potentially duplicative IT investments at the Departments of Defense and 

Energy could result in millions of dollars in cost savings.

◐

Action 5: To better ensure the agencies avoid investing in duplicative investments the 

Secretaries of Defense, Energy, and Homeland Security should direct their chief information 

officers to correct the miscategorizations for the investments GAO identified and ensure that 

investments are correctly categorized in agency submissions.

●

2013 Department of Homeland Security Research and Development (Area 7): Better policies and 

guidance for defining, overseeing, and coordinating research and development investments and

activities would help DHS address fragmentation, overlap, and potential unnecessary duplication.

a

Action 1: The Secretary of Homeland Security should develop and implement policies and 

guidance for defining and overseeing research and development (R&D) at the department to 

ensure that DHS effectively oversees its R&D investment and efforts and reduces fragmentation, 

overlap, and the risk of unnecessary duplication. Such policies and guidance could be included as 

an update to the department’s existing acquisition directive and should include the following 

elements: a well-understood definition of R&D that provides reasonable assurance that reliable 

accounting and reporting of R&D resources and activities for internal and external use are 

achieved; a description of the department’s process and roles and responsibilities for overseeing 

and coordinating R&D investments and efforts; and a mechanism to track existing R&D projects 

and their associated costs across the department. DHS’s Science and Technology Directorate, 

Domestic Nuclear Detection Office, and the U.S. Coast Guard—the only DHS components that 

report R&D-related budget authority to OMB—reported $568 million in fiscal year 2011 budget 

authority. However, GAO identified an additional $255 million in R&D obligations in fiscal year 

2011 by other DHS components that were not reported to OMB in the budget process.

2013

a

Field-Based Information Sharing (Area 8): To help reduce inefficiencies resulting from overlap 

in analytical and investigative support activities, the Departments of Justice and Homeland 

Security and the Office of National Drug Control Policy (ONDCP) could improve coordination 

among five types of field-based information sharing entities that may collect, process, analyze, or 

disseminate information in support of law enforcement and counterterrorism-related efforts—Joint 

Terrorism Task Forces, Field Intelligence Groups, Regional Information Sharing Systems centers, 

state and major urban area fusion centers, and High Intensity Drug Trafficking Areas Investigative 

Support Centers.

a
Appendix I: Areas and Actions Identified in 

2011-2013 Annual Reports Related to the 

Department of Homeland Security

Page 20 GAO-13-547T

Annual report Areas identified Assessment

Action 1: The Secretary of Homeland Security, the Attorney General, and the Director of ONDCP 

should work through the Information Sharing and Access Interagency Policy Committee or 

otherwise collaborate to develop a mechanism that will allow them to hold field-based informationsharing entities accountable for coordinating with each other and monitor and evaluate the 

coordination results achieved.

Action 2: The Secretary of Homeland Security, the Attorney General, and the Director of ONDCP 

should work through the Information Sharing and Access Interagency Policy Committee or 

otherwise collaborate to identify characteristics of entities and assess specific geographic areas in 

which practices that could enhance coordination and reduce unnecessary overlap, such as crossentity participation on governance boards and collocation of entities, could be further applied, and 

use the results to provide recommendations or guidance to the entities on implementing these 

practices.

a

Legend:

a

● = Addressed, meaning all actions needed in that area were addressed.

◐= Partially addressed, meaning at least one action needed in that area showed some progress 

toward implementation, but not all actions were addressed.

○ = Not addressed, meaning none of the actions needed in that area were addressed

Source: GAO analysis.

a

As of April 26, 2013, we have not assessed the 2013 areas identified.

Table 5: Assessments of DHS’s Progress in Addressing the Areas of Cost Savings and Revenue Enhancements and Related 

Actions Identified in 2011 – 2013 Annual Reports 

Annual report Areas identified Assessment

2011 Award Fee Contracts (Area 49): Adherence to guidance on award fee contracts could improve 

agencies’ use of award fees and produce savings. Several major agencies spent over $300 billion 

from fiscal year 2004 through fiscal year 2008 on contracts that included monetary incentives 

known as award fees.

●

Action 1: Sustained progress in the use of award fees will require that contracting agencies 

adhere to changes to the Federal Acquisition Regulation, which in 2009 prohibited the practices of 

rollover of unearned award fees and awarding fees to contractors that have performed 

unsatisfactorily. Further efforts are needed by agencies to identify methods to evaluate the 

effectiveness of award fees as a tool for improving contractor performance.

●

2011 DHS’s Management of Acquisitions (Area 75/76): The Department of Homeland Security’s 

(DHS) management of acquisitions could be strengthened to reduce inefficiencies, cost overruns, 

and schedule and performance shortfalls. DHS acquisition spending has increased by 66 percent 

since fiscal year 2004—$8.5 billion in fiscal year 2004 to $14.2 billion in fiscal year 2009.

◐
Appendix I: Areas and Actions Identified in 

2011-2013 Annual Reports Related to the 

Department of Homeland Security

Page 21 GAO-13-547T

Annual report Areas identified Assessment

Action 1: DHS should ensure that requirements and cost estimates are well defined up front.

Action 2: DHS should establish and measure performance against department-approved 

baselines for major acquisition programs.

Action 3: DHS should ensure that its investment decisions are transparent and documented; 

budget decisions are informed by the results of acquisition reviews, including acquisition 

information and cost estimates; sufficient management resources are identified and aligned, such 

as acquisition staff, to implement oversight reviews in a timely manner; and acquisition program 

requirements are reviewed and validated.

Action 4: DHS could take further actions to improve its management of research and 

development (R&D) efforts and reduce costs in procuring and deploying programs that have not 

been fully tested, including rigorously testing devices using actual agency operational tactics 

before making decisions on acquisitions. GAO has revised this action to more clearly focus on 

DHS acquisition management rather than DHS R&D, which is addressed separately in GAO’s 

April 2013 report. Specifically, GAO suggests that DHS should ensure that testing of new 

technologies is completed and test results are addressed before making acquisition decisions.

Action 5: DHS should conduct cost-benefit analyses as part of research, development, and 

testing efforts, which would help DHS and congressional decision makers better assess and 

prioritize investment decisions, including assessing possible program alternatives that could be 

more cost-effective. GAO has revised this action to more clearly focus on DHS acquisition 

management rather than DHS R&D, which is addressed separately in GAO’s April 2013 report. 

Specifically, GAO suggests that DHS should take actions to help decision makers better assess 

and prioritize investments, including possible program alternatives that could be more costeffective. 

◐

◐

◐

◐

◐

2011 TSA’s Behavior-Based Screening (Area 77): Validation of the Transportation Security 

Administration’s (TSA) behavior-based screening program is needed to justify funding or 

expansion.

◐

Action 2: DHS could conduct additional research to provide additional information on the extent 

to which the Screening of Passengers by Observation Techniques (SPOT) program can be 

effectively implemented in airports and to help determine the need for periodic refresher training. 

This action was revised to consolidate it with action 1 cited in GAO’s March 2011 report. 

Specifically, GAO suggests that DHS use an independent panel of experts to assess the 

methodology of its initial validation study of the TSA behavior detection program, and conduct 

additional research to provide further information and assurance on the extent to which the SPOT 

program can be effectively implemented in airports, and to help determine the need for periodic 

refresher training.

Action 3: Congress may wish to consider limiting program funding pending receipt of an 

independent assessment of TSA’s SPOT program. Specifically, Congress could consider freezing 

appropriation levels for the SPOT program at the 2010 level until the validation effort is complete.

Action 4: Upon completion of the validation effort, Congress may also wish to consider the 

study’s results— including the SPOT program’s effectiveness in using behavior-based screening 

techniques to detect terrorists in the aviation environment—in making future funding decisions 

regarding the program. Depending on the results of DHS’s validation effort and congressional 

action, savings over the next 5 years could total tens of millions of dollars.

◐

●

○

2011 Baggage Screening Systems (Area 78): More efficient baggage screening systems could result 

in about $470 million in reduced TSA personnel costs over the next 5 years. ◐
Appendix I: Areas and Actions Identified in 

2011-2013 Annual Reports Related to the 

Department of Homeland Security

Page 22 GAO-13-547T

Annual report Areas identified Assessment

Action 1: TSA might achieve savings in screening personnel costs by continuing to replace or 

modify older checked baggage screening systems with more efficient solutions, including in-line 

screening systems.

◐

2011 Customs Fee Collections (Area 79): Clarifying availability of certain customs fee collections 

could produce a one-time savings of $640 million. ●

Action 1: Congress could clarify the purposes for which the $639.4 million in unobligated 

balances is available. The unobligated balances have remained in U.S. Customs and Border 

Protection’s (CBP) Customs User Fee Account for more than 10 years. ●

2012 Border Security (Area 47): Delaying proposed investments for future acquisitions of border 

surveillance technology until DHS better defines and measures benefits and estimates life-cycle 

costs could help ensure the most effective use of future program funding. CBP requested $242 

million to fund the new plan for fiscal year 2012.

◐

Action 1: To increase the likelihood of successful implementation of the Arizona Border 

Surveillance Technology Plan, minimize performance risks associated with the new approach, 

help justify program funding, and increase the reliability of CBP cost estimate, the Commissioner 

of CBP should determine the mission benefits to be derived from implementation of the plan.

Action 2: To increase the likelihood of successful implementation of the Arizona Border 

Surveillance Technology Plan, minimize performance risks associated with the new approach, 

help justify program funding, and increase the reliability of CBP cost estimate, the Commissioner 

of CBP should develop and apply key attributes for metrics to assess program implementation.

Action 3: To increase the likelihood of successful implementation of the Arizona Border 

Surveillance Technology Plan, minimize performance risks associated with the new approach, 

help justify program funding, and increase the reliability of CBP’s cost estimate, the 

Commissioner of CBP should update its cost estimate for the plan using best practices.

Action 4: Congress may wish to consider limiting future program funding until CBP has more fully 

defined the benefits and costs of its Arizona Border Surveillance Technology Plan.

◐

◐

◐

○

2012 Passenger Aviation Security Fees (Area 48): Options for adjusting the passenger aviation 

security fee could further offset billions of dollars in civil aviation security costs. These options 

could increase fee collections from about $2 billion to $10 billion over 5 years. ○

Action 1: To help further offset billions of dollars in the federal budget for aviation security 

programs and activities in outlying fiscal years, Congress, working with the Administrator of TSA, 

should consider increasing the passenger security fee according to one of the options GAO 

identified in February 2012. These include the President’s Deficit Reduction Plan option ($7.50 

per one-way trip by 2017); the Congressional Budget Office, President’s Debt Commission, and 

House Budget Committee options ($5.00 per one-way trip); TSA’s Fiscal Year 2012 Budget 

Request option ($5.50 per enplanement by 2014); as well as adjusting the fee for inflation 

(according to GAO analysis; this option would increase the fee to about $3.00 per enplanement). 

These options could increase fee collections over existing levels from about $2 billion to $10 

billion over 5 years.

○

2012 Immigration Inspection Fees (Area 49): The air passenger immigration inspection user fee 

should be reviewed and adjusted to fully recover the cost of the air passenger immigration 

inspection activities conducted by DHS’s U.S. Immigration and Customs Enforcement (ICE) and 

CBP rather than using general fund appropriations. In 2011 this could have resulted in a reduction 

of about $178 million in appropriated funds used for inspection services.

◐
Appendix I: Areas and Actions Identified in 

2011-2013 Annual Reports Related to the 

Department of Homeland Security

Page 23 GAO-13-547T

Annual report Areas identified Assessment

Action 1: To determine the extent to which air passenger immigration inspection fees are aligned 

with the costs of inspection activities, which could enable fee adjustments to reduce reliance on 

general fund appropriations, Congress may wish to require the Secretary of Homeland Security to 

require ICE and CBP to regularly report on the total cost of air passenger immigration inspections 

and the amount of associated fee collections.

Action 2: Congress may wish to require the Secretary of Homeland Security to adjust the fee as 

needed so that collections are aligned with total inspection costs, if it is determined that total 

immigration fee collections do not cover total immigration inspection costs. This action was 

revised to reflect efforts by ICE and CBP to determine the extent to which immigration fee 

collections cover reimbursable activities. Specifically, GAO is suggesting that Congress may wish 

to adjust the immigration inspection fee as needed so that collections are aligned with total 

inspection costs, now that ICE and CBP have determined that total immigration fee collections do 

not cover total immigration inspection costs.

Action 3: To determine the extent to which air passenger immigration inspection fees are aligned 

with the costs of inspection activities, which could enable fee adjustments to reduce reliance on 

general fund appropriations, Congress may wish to require the Secretary of Homeland Security to 

direct ICE to amend its cost study methodology to determine the extent to which air passenger 

fee collections cover reimbursable activities.

Action 4: To determine the extent to which air passenger immigration inspection fees are aligned 

with the costs of inspection activities, which could enable fee adjustments to reduce reliance on 

general fund appropriations, Congress may wish to require the Secretary of Homeland Security to 

direct ICE and CBP to establish a regular schedule to review and coordinate on the costs of their 

respective air passenger immigration inspection activities, and revise the proportion of the fee 

received by each agency accordingly.

○

○

◐

○

2012 Domestic Disaster Assistance (Area 51): The Federal Emergency Management Agency 

(FEMA) could reduce the costs to the federal government related to major disasters declared by 

the President by updating the principal indicator on which disaster funding decisions are based 

and better measuring a state’s capacity to respond without federal assistance.

○

Action 1: The FEMA Administrator should re-examine the basis for the Public Assistance per 

capita indicator and determine whether it accurately reflects a state’s capacity to respond to and 

recover from a disaster without federal assistance. This action was revised to consolidate the 

three actions cited in GAO’s February 2012 report into one action as a result of GAO’s September 

2012 report, Federal Disaster Assistance: Improved Criteria Needed to Assess a Jurisdiction’s 

Capability to Respond and Recover on Its Own (GAO-12-838). Specifically, in that report GAO 

recommended that to increase the efficiency and effectiveness of the process for disaster 

declarations, the Administrator of FEMA should develop and implement a methodology that 

provides a more comprehensive assessment of a jurisdiction’s capability to respond to and 

recover from a disaster without federal assistance. Providing a more comprehensive assessment 

of a jurisdiction’s capability to respond to and recover from a disaster without federal assistance to 

support disaster declaration decisions could save billions of dollars. This should include one or 

more measures of a jurisdiction’s fiscal capacity, such as Total Taxable Resources, and 

consideration of the jurisdiction’s response and recovery capabilities. If FEMA continues to use 

the Public Assistance per capita indicator to assist in identifying a jurisdiction’s capabilities to 

respond to and recover from a disaster, it should adjust the indicator to accurately reflect the 

annual changes in the U.S. economy since 1986, when the current indicator was first adopted for 

use. In addition, implementing the adjustment by raising the indicator in steps over several years 

would give jurisdictions more time to plan for and adjust to the change.

○
Appendix I: Areas and Actions Identified in 

2011-2013 Annual Reports Related to the 

Department of Homeland Security

Page 24 GAO-13-547T

Annual report Areas identified Assessment

2013 Agricultural Quarantine Inspection Fees (Area 18): The United States Department of 

Agriculture’s Animal and Plant Health Inspection Service could have achieved as much as $325 

million in savings (based on fiscal year 2011 data, as reported in GAO’s March 2013 report) by 

more fully aligning fees with program costs; although the savings would be recurring, the amount 

would depend on the cost-collections gap in a given fiscal year and would result in a reduced 

reliance on U.S. Customs and Border Protection’s annual Salaries and Expenses appropriations 

used for agricultural inspection services.

a

Action 2: The Secretary of Homeland Security should direct CBP to update and widely 

disseminate guidance to ensure that all ports of entry correctly charge time spent on agriculturerelated functions.

Action 3: The Secretaries of Agriculture and Homeland Security should work together to amend 

overtime regulations for agriculture services so that reimbursable overtime rates are aligned with 

the costs of those services.

Action 4: The Secretaries of Agriculture and Homeland Security should ensure that all inspection 

fees are collected when due, including fees for agriculture overtime services that are eligible for 

reimbursement.

a

a 

a 

2013 Checked Baggage Screening (Area 28): By reviewing the appropriateness of the federal cost 

share the Transportation Security Administration applies to agreements financing airport facility 

modification projects related to the installation of checked baggage screening systems, the 

Transportation Security Administration could, if a reduced cost share was deemed appropriate, 

achieve cost efficiencies of up to $300 million by 2030 and be positioned to install a greater 

number of optimal baggage screening systems than it currently anticipates.

a

Action 1: Congress may wish to consider directing TSA to study, in consultation with relevant 

industry stakeholders, whether the 90 percent federal cost share that TSA generally applies to 

cost sharing agreements for eligible airport facility modification projects related to the installation 

of checked baggage screening systems is appropriate or should be adjusted.

Action 2: Congress may wish to consider whether an amendment to current legislation, or 

enactment of new legislation, is necessary and warranted if it is determined that a change in the 

current federal cost share that TSA generally applies to these cost sharing agreements is 

appropriate.

a

2013

a 

Cloud Computing (Area 29): Better planning of cloud-based computing solutions provides an 

opportunity for potential savings of millions of dollars.

a

Action 1: The Secretaries of Agriculture, Health and Human Services, Homeland Security, State, 

and the Treasury and the Administrators of the General Services Administration and the Small 

Business Administration should direct their respective Chief Information Officers to establish 

estimated costs, performance goals, and plans to retire associated legacy systems for each 

cloud-based service discussed in the report, as applicable.

Action 2: The Secretaries of Agriculture, Health and Human Services, Homeland Security, State, 

and the Treasury and the Administrators of the General Services Administration and the Small 

Business Administration should direct their respective Chief Information Officers to develop, at a 

minimum, estimated costs, milestones, performance goals, and plans for retiring legacy systems, 

as applicable, for planned additional cloud-based services.

a

a 

2013 Information Technology Operations and Maintenance (Area 30): Strengthening oversight of 

key federal agencies’ major information technology investments in operations and maintenance 

provides opportunity for savings on billions in information technology investments.

a

Action 1: The Secretaries of Defense, Homeland Security, Health and Human Services, Veterans 

Affairs, and the Treasury should direct appropriate officials to annually perform operational 

analyses on all investments and ensure the assessments include all key factors. 

Legend:

a
Appendix I: Areas and Actions Identified in 

2011-2013 Annual Reports Related to the 

Department of Homeland Security

Page 25 GAO-13-547T

● = Addressed, meaning all actions needed in that area were addressed.

◐= Partially addressed, meaning at least one action needed in that area showed some progress 

toward implementation, but not all actions were addressed.

○= Not addressed, meaning none of the actions needed in that area were addressed.

Source: GAO.

a

As of April 26, 2013, we have not assessed the 2013 areas identified.

441149
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