Transportation Security: Efforts to Strengthen Aviation and Surface Transportation Security are Under Way, but Challenges Remain
Published: 2007-10-16T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: Within the Department of Homeland Security (DHS), the Transportation Security Administration's (TSA) mission is to protect the nation's transportation network. Since its inception in 2001, TSA has developed and implemented a variety of programs and procedures to secure commercial aviation and surface modes of transportation, including passenger and freight rail, mass transit, highways, commercial vehicles, and pipelines. Other DHS components, federal agencies, state and local governments, and the private sector also play a role in transportation security. GAO examined (1) the progress DHS and TSA have made in securing the nation's aviation and surface transportation systems, and (2) challenges that have impeded the department's efforts to implement its mission and management functions. This testimony is based on issued GAO reports and testimonies addressing the security of the nation's aviation and surface transportation systems, including a recently issued report (GAO-07-454) that highlights the progress DHS has made in implementing its mission and management functions.
section_title: What GAO Found
paragraphs: In August 2007, GAO reported that DHS had made moderate progress in securing the aviation and surface transportation networks, but that more work remains. Specifically, of the 24 performance expectations GAO identified in the area of aviation security, GAO reported that DHS had generally achieved 17 of these expectations and had generally not achieved 7 expectations. With regard to the security of surface modes of transportation, GAO reported that DHS generally achieved three performance expectations and had generally not achieved two others. DHS and TSA have made progress in many areas related to securing commercial aviation. For example, TSA has undertaken efforts to strengthen airport security; provide and train a screening workforce; prescreen passengers against terrorist watch lists; and screen passengers, baggage, and cargo. With regard to surface transportation modes, TSA has taken steps to develop a strategic approach for securing mass transit, passenger and freight rail, commercial vehicles, highways, and pipelines; establish security standards for certain transportation modes; and conduct threat, criticality, and vulnerability assessments of surface transportation assets, particularly passenger and freight rail. TSA also hired and deployed compliance inspectors and conducted inspections of passenger and freight rail systems. While these efforts have helped to strengthen the security of the transportation network, DHS and TSA still face a number of key challenges in further securing these systems. For example, regarding commercial aviation, TSA has faced difficulties in developing and implementing its advanced passenger prescreening system, known as Secure Flight, and has not yet completed development efforts. In addition, TSA's efforts to enhance perimeter security at airports may not be sufficient to provide for effective security. TSA has also initiated efforts to evaluate the effectiveness of security-related technologies, such as biometric identification systems, but has not developed a plan for implementing new technologies to meet the security needs of individual airports. TSA has also not yet effectively deployed checkpoint technologies to address key existing vulnerabilities, and has not yet developed and implemented technologies needed to screen air cargo. Further, while TSA has initiated efforts to develop security standards for surface transportation modes, these efforts have been limited to passenger and freight rail, and have not addressed commercial vehicles or highway infrastructure, including bridges and tunnels. GAO also reported that a number of issues have impeded DHS's efforts in implementing its mission and management functions, including not always implementing effective strategic planning, or fully adopting and applying a risk management approach with respect to transportation security.

section_title: Letter
paragraphs: I appreciate the opportunity to participate in today’s hearing to discuss the  Department of Homeland Security’s (DHS) progress and challenges in  securing our nation’s transportation systems.  The Transportation Security  Administration (TSA), originally established as an agency within the  Department of Transportation in 2001 but now a component within DHS,  is charged with securing the transportation network while also ensuring  the free movement of people and commerce.  TSA has primary  responsibility for security in all modes of transportation and since its  inception has developed and implemented a variety of programs and  procedures to secure commercial aviation and surface modes of  transportation, including passenger and freight rail, mass transit,  highways, commercial vehicles, and pipelines.  Other DHS components,  federal agencies, state and local governments, and the private sector also  play a role in transportation security.  For example, with respect to  commercial aviation, the U.S. Customs and Border Protection (CBP) has  responsibility for conducting passenger prescreening— in general, the  matching of passenger information against terrorist watch lists prior an  aircraft’s departure —for international flights operating to or from the  United States, as well as inspecting inbound air cargo upon its arrival in  the United States.  In addition, responsibility for securing rail and other  surface modes of transportation is shared among federal, state, and local  governments and the private sector.
My testimony today will focus on: 1) the progress TSA, and other DHS  components have made in securing the nation’s aviation and surface  transportation systems, and 2) challenges which have impeded DHS’s  (and, as they relate to transportation security, TSA) efforts to implement  its mission and management functions.  My comments are based on issued  GAO reports and testimonies addressing the security of the nation’s  aviation and surface transportation systems, including an August 2007  report that highlights the progress DHS has made in implementing its  mission and management functions. In this report, we reviewed the extent  to which DHS has taken actions to achieve performance expectations in  each of its mission and management areas that we identified from  legislation, Homeland Security Presidential Directives, and DHS strategic  planning documents.  Based primarily on our past work, we made a  determination regarding whether DHS generally achieved or generally did  not achieve the key elements of each performance expectation. An  assessment of “generally achieved” indicates that DHS has taken sufficient  actions to satisfy most elements of the expectation; however, an  assessment of “generally achieved” does not signify that no further action  is required of DHS or that functions covered by the expectation cannot be  further improved or enhanced. Conversely, an assessment of “generally  not achieved” indicates that DHS has not yet taken actions to satisfy most  elements of the performance expectation. In determining the department’s  overall level of progress in achieving performance expectations in each of  its mission and management areas, we concluded whether the department  had made limited, modest, moderate, or substantial progress.  These  assessments of progress do not reflect, nor are they intended to reflect, the  extent to which actions by DHS and its components have made the nation  more secure.  We conducted our work in accordance with generally  accepted government auditing standards.
subsections: section_title: Background
paragraphs: The Aviation and Transportation Security Act (ATSA), enacted in  November 2001, created TSA and gave it responsibility for securing all  modes of transportation.  TSA’s aviation security mission includes  strengthening the security of airport perimeters and restricted airport  areas; hiring and training a screening workforce; prescreening passengers  against terrorist watch lists; and screening passengers, baggage, and cargo  at the over 400 commercial airports nation-wide, among other  responsibilities.  While TSA has operational responsibility for physically  screening passengers and their baggage, TSA exercises regulatory, or  oversight, responsibility for the security of airports and air cargo.  Specifically, airports, air carriers, and other entities are required to  implement security measures in accordance with TSA-issued security  requirements, against which TSA evaluates their compliance efforts.
TSA also oversees air carriers’ efforts to prescreen passengers— in  general, the matching of passenger information against terrorist watch  lists prior to an aircraft’s departure —and plans to take over operational  responsibility for this function with the implementation of its Secure  Flight program initially for passengers traveling domestically. CBP also  has responsibility for prescreening airline passengers on international  flights departing from and bound for the United States, while DHS’s  Science and Technology Directorate is responsible for researching and  developing technologies to secure the transportation sector.
TSA shares responsibility for securing surface transportation modes with  federal, state, and local governments and the private sector.  TSA’s  security mission includes establishing security standards and conducting  assessments and inspections of surface transportation modes, including  passenger and freight rail; mass transit; highways and commercial  vehicles; and pipelines.  The Federal Emergency Management Agency’s  Grant Programs Directorate provides grant funding to surface  transportation operators and state and local governments, and in  conjunction with certain grants the National Protection and Programs  Directorate conducts risk assessments of surface transportation facilities.   Within the Department of Transportation (DOT), the Federal Transit  Administration (FTA) and Federal Railroad Administration (FRA) have  responsibilities for establishing standards for passenger rail safety and  security.  In addition, public and private sector transportation operators  are responsible for implementing security measures for their systems.  For  example, the primary responsibility for securing passenger rail systems  rests with the passenger rail operators. Passenger rail operators, which  can be public or private entities, are responsible for administering and  managing passenger rail activities and services, including security.
subsections: section_title: DHS Has Made Progress in Securing the Nation’s Aviation and Surface Transportation Systems, but More Work Remains
paragraphs: DHS, primarily through the efforts of TSA, has undertaken numerous  initiatives to strengthen the security of the nation’s aviation and surface  transportation systems. In large part, these efforts have been guided by  legislative mandates designed to strengthen the security of commercial  aviation following the September 11, 2001 terrorist attacks.  These efforts  have also been affected by events external to the department, including  the alleged August 2006 terrorist plot to blow up commercial aircraft  bound from London to the United States, and the 2004 Madrid and 2005  London train bombings.  While progress has been made in many areas with  respect to securing the transportation network, we found that the  department can strengthen its efforts in some key areas outlined by the  Congress, the Administration, and the department itself. Specifically,  regarding commercial aviation, we reported that DHS has generally  achieved 17 performance expectations in this area, and has generally not  achieved 7 expectations.  Regarding the security of surface transportation  modes, we reported that DHS has generally achieved three performance  expectations and has generally not achieved two others.  We identified  these performance expectations through reviews of key legislation,  Homeland Security Presidential Directives, and DHS strategic planning  documents.
section_title: Aviation Security
paragraphs: Since its inception, TSA has focused much of its efforts on aviation  security and has developed and implemented a variety of programs and  procedures to secure commercial aviation.  For example, TSA has  undertaken efforts to hire, train and deploy a screening workforce; and  screen passengers, baggage, and cargo.  Although TSA has taken important  actions to strengthen aviation security, the agency has faced difficulties in  implementing an advanced, government-run passenger prescreening  program for domestic flights, and in developing and implementing  technology to screen passengers at security checkpoints and cargo placed  on aircraft, among other areas. As shown in table 1, we identified 24  performance expectations for DHS in the area of aviation security, and  found that overall, DHS has made moderate progress in meeting these  expectations. Specifically, we found that DHS has generally achieved 17  performance expectations and has generally not achieved 7 performance  expectations.
Aviation Security Strategic Approach.  We concluded that DHS has  generally achieved this performance expectation.  In our past work, we  reported that TSA identified and implemented a wide range of initiatives to  strengthen the security of key components of the commercial aviation  system. These components are interconnected and each is critical to the  overall security of commercial aviation.  More recently, in March 2007,  TSA released its National Strategy on Aviation Security and six supporting  plans that provided more detailed strategic planning guidance in the areas  of systems security; operational threat response; systems recovery;  domain surveillance; and intelligence integration and domestic and  international outreach.  According to TSA officials, an Interagency  Implementation Working Group was established under TSA leadership in  January 2007 to initiate implementation efforts for the 112 actions outlined  in the supporting plans.
For more information, see GAO, Aviation Security:  Enhancements Made in Passenger  and Checked Baggage Screening, but Challenges Remain, GAO-06-371T (Washington, D.C:  April 2006).
For more information, see GAO, Aviation Security: Transportation Security  Administration Has Made Progress in Managing a Federal Security Workforce and Ensuring  Security at U.S. Airports, but Challenges Remain, GAO-06-597T , (Washington, D.C.: April  2006) and GAO, Aviation Security: Further Steps Needed to Strengthen the Security of  Commercial Airport Perimeters and Access Controls, GAO-04-728 (Washington, D.C.: June  2004). limit access to airport secured areas.  In March through July 2007, DHS  provided us with updated information on procedures, plans, and other  efforts it had implemented to secure airport perimeters and strengthen  access controls, including a description of its Aviation Direct Access  Screening Program.  This program provides for TSOs to randomly screen  airport and airline employees and employees’ property and vehicles as  they enter the secured areas of airports for the presence of explosives,  incendiaries, weapons, and other items of interest as well as improper  airport identification.  However, DHS did not provide us with evidence  that these actions provide for effective airport perimeter security, nor  information on how the actions addressed all relevant requirements  established by law and in our prior recommendations.
GAO-06-597T and GAO-04-728.
GAO, Port Security: Better Planning Needed to Develop and Operate Maritime Worker  Identification Card Program, GAO-05-106(Washington, D.C.: December 2004), and  Transportation Security: DHS Should Address Key Challenges before Implementing the  Transportation Worker Identification Credential Program, GAO-06-982 (Washington,  D.C.: September 2006). progress in implementing the program and addressing our  recommendations regarding contract planning and oversight and  coordination with stakeholders.   For example, TSA reported that it added  staff with program and contract management expertise to help oversee the  contract and developed plans for conducting public outreach and  education efforts.13   However, DHS has not yet determined how and  when it will implement a biometric identification system for access  controls at commercials airports.  We have initiated ongoing work to  further assess DHS’s efforts to establish procedures for implementing  biometric identifier systems for airport secured areas access control.
Aviation Security Workforce.  We concluded that DHS has generally  achieved all 7 performance expectations in this area.  For example, TSA  has hired and deployed a federal screening workforce at over 400  commercial airports nationwide, and has developed standards for  determining TSO staffing levels at airports. TSA also established numerous  programs to train and test the performance of its TSO workforce, although  we reported that improvements in these efforts can be made.  Among  other efforts, in December 2005, TSA reported completing enhanced  explosives detection training for over 18,000 TSOs, and increased its use of  covert testing to assess vulnerabilities of existing screening systems.  TSA  also established the Screening Partnership Program which allows eligible  airports to apply to TSA to use a private screening workforce.  In addition,  TSA has trained and deployed federal air marshals on high-risk flights;  established standards for training flight and cabin crews; and established a  Federal Flight Deck Officer program to select, train, and allow authorized  flight deck officers to use firearms to defend against any terrorist or  criminal acts.  Related to flight and cabin crew training, TSA revised its  guidance and standards to include additional training elements required by  law and improve the organization and clarity of the training.  TSA also  increased its efforts to measure the performance of its TSO workforce  through recertification testing and other measures.
GAO, Port Security: Better Planning Needed to Develop and Operate Maritime Worker  Identification Card Program, GAO-05-106 (Washington, D.C.: December 2004), and  Transportation Security: DHS Should Address Key Challenges before Implementing the  Transportation Worker Identification Credential Program, GAO-06-982 (Washington,  D.C.: September 2006).
Passenger Prescreening.  We reported that DHS has generally achieved  one, and has not generally achieved two, of the performance expectations  in this area.  For example, TSA established policies and procedures to  ensure that individuals known to pose, or suspected of posing, a risk or  threat to security are identified and subjected to appropriate action.   Specifically, TSA requires that air carriers check all passengers against the  Selectee List, which identifies individuals that represent a higher than  normal security risk and therefore require additional security screening,  and the No Fly List, which identifies individuals who are not allowed to  fly.  However, TSA has faced a number of challenges in developing and  implementing an advanced prescreening system, known as Secure Flight,  which will allow TSA to take over the matching of passenger information  against the No Fly and Selectee lists from air carriers, as required by law.   In 2006, we reported that TSA had not conducted critical activities in  accordance with best practices for large-scale information technology  programs and had not followed a disciplined life cycle approach in  developing Secure Flight.In March 2007, DHS reported that as a result of  its rebaselining efforts, more effective government controls were  developed to implement Secure Flight and that TSA was following a more  disciplined development process.  DHS further reported that it plans to  begin parallel operations with the first group of domestic air carriers  during fiscal year 2009 and to take over full responsibility for watch list  matching in fiscal year 2010.  We are continuing to assess TSA’s efforts in  developing and implementing the Secure Flight program. We have also  reported that DHS has not yet implemented enhancements to its passenger  prescreening process for passengers on international flights departing  from and bound for the United States. Although CBP recently issued a  final rule that will require air carriers to provide passenger information to  CBP prior to a flight’s departure so that CBP can compare passenger  information to the terrorist watch lists before a flight takes off, this  requirement is not scheduled to take effect until February 2008.  In  addition, while DHS plans to align its international and domestic  passenger prescreening programs under TSA, full implementation of an  integrated system will not occur for several years.
Checkpoint Screening.  We reported that DHS has generally achieved  two, and has not generally achieved one, of the performance expectations  in this area.  For example, we reported that TSA has developed processes  and procedures for screening passengers at security checkpoints and has  worked to balance security needs with efficiency and customer service  considerations. More specifically, in April 2007, we reported that  modifications to standard operating procedures were proposed based on  the professional judgment of TSA senior-level officials and program-level  staff, as well as threat information and the results of covert testing.  However, we found that TSA’s data collection and analyses could be  improved to help TSA determine whether proposed procedures that are  operationally tested would achieve their intended purpose. We also  reported that DHS and its component agencies have taken steps to  improve the screening of passengers to address new and emerging threats.  For example, TSA established two recent initiatives intended to strengthen  the passenger checkpoint screening process: (1) the Screening Passenger  by Observation Technique program, which is a behavior observation and  analysis program designed to provide TSA with a nonintrusive means of  identifying potentially high- risk individuals; and the (2)  Travel Document  Checker program which replaces current travel document checkers with  TSOs who have access to sensitive security information on the threats  facing the aviation industry and check for fraudulent documents.   However, we found that while TSA has developed and tested checkpoint  technologies to address vulnerabilities that may be exploited by identified  threats such as improvised explosive devices, it has not yet effectively  deployed such technologies.  In July 2006, TSA reported that it installed 97  explosives trace portal machines—which use puffs of air to dislodge and  detect trace amounts of explosives on persons—at 37 airports. However,  DHS identified problems with these machines and has halted their  deployment. TSA is also developing backscatter technology, which  identifies explosives, plastics and metals, giving them shape and form and  allowing them to be visually interpreted.   However, limited progress has  been made in fielding this technology at passenger screening checkpoints.  The Implementing Recommendations of the 9/11 Commission Act of 2007  (9/11 Commission Act), enacted in August 2007, restates and amends a  requirement that DHS issue a strategic plan for deploying explosive  detection equipment at airport checkpoints and requires DHS to expedite  research and develop efforts to protect passenger aircraft from explosives  devices. We are currently reviewing DHS and TSA’s efforts to develop,  test and deploy airport checkpoint technologies.
Checked Baggage Screening.  We concluded that DHS has generally  achieved all three performance expectations in this area.  Specifically,  from November 2001 through June 2006, TSA procured and installed about  1,600 Explosive Detection Systems (EDS) and about 7,200 Explosive Trace  Detection (ETD) machines to screen checked baggage for explosives at  over 400 commercial airports.  In response to mandates to field the  equipment quickly and to account for limitations in airport design, TSA  generally placed this equipment in a stand-alone mode—usually in airport  lobbies—to conduct the primary screening of checked baggage for  explosives.   Based in part on our previous recommendations, TSA later  developed a plan to integrate EDS and ETD machines in-line with airport  baggage conveyor systems.  The installation of in-line systems can result in  considerable savings to TSA through the reduction of TSOs needed to  operate the equipment, as well as increased security.  Despite delays in the  widespread deployment of in-line systems due to the high upfront capital  investment required, TSA is pursuing the installation of these systems and  is seeking creative financing solutions to fund their deployment.  In March  2007, DHS reported that it is working with airport and air carrier  stakeholders to improve checked baggage screening solutions to enhance  security and free up lobby space at airports. The installation of in-line  baggage screening systems continues to be an issue of congressional  concern.  For example, the 9/11 Commission Act reiterates a requirement  that DHS  submit a cost-sharing study along with a plan and schedule for  implementing provisions of the study, and requires TSA to establish a  prioritization schedule for airport improvement projects such as the  installation of in-line baggage screening systems.
Air Cargo Security.  We reported that TSA has generally achieved two,  and has not generally achieved one, of the performance expectations in  this area. Specifically, TSA has developed a strategic plan for domestic air  cargo security and has taken actions to use risk management principles to  guide investment decisions related to air cargo bound for the United States  from a foreign country, referred to as inbound air cargo, but these actions  are not yet complete.  For example, TSA plans to assess inbound air cargo  vulnerabilities and critical assets—two crucial elements of a risk-based  management approach—but has not yet established a methodology or  time frame for how and when these assessments will be completed.   TSA  has also developed and implemented procedures to screen domestic and  inbound air cargo.  We reported in October 2005 that TSA had significantly  increased the number of domestic air cargo inspections conducted of air  carrier and indirect air carrier compliance with security requirements.  However, we also reported that TSA exempted certain cargo from random  inspection because it did not view the exempted cargo as posing a  significant security risk, although air cargo stakeholders noted that such  exemptions may create potential security risks and vulnerabilities since  shippers may know how to package their cargo to avoid inspection. In  part based on a recommendation we made, TSA is evaluating existing  exemptions to determine whether they pose a security risk, and has  removed some exemptions that were previously allowed.  The 9/11  Commission Act requires, no later than 3 years after its enactment, that  DHS have a system in place to screen 100 percent of cargo transported on  passenger aircraft.  Although TSA has taken action to develop plans for  securing air cargo and establishing and implementing procedures to  screen air cargo, DHS has not yet developed and implemented screening  technologies. DHS is pursuing multiple technologies to automate the  detection of explosives in the types and quantities that would cause  catastrophic damage to an aircraft in flight.  However, TSA acknowledged  that full development of these technologies may take 5 to 7 years. In April  2007, we reported that TSA and DHS’s S&T Directorate were in the early  stages of evaluating and piloting available aviation security technologies to  determine their applicability to the domestic air cargo environment. We  further reported that although TSA anticipates completing its pilot tests by  2008, it has not yet established time frames for when it might implement  these methods or technologies for the inbound air cargo system.
section_title: Surface Transportation Security
paragraphs: Although TSA has devoted the vast majority of its resources to securing  commercial aviation and to meeting related statutory requirements, it has  more recently increased its focus on the security of surface modes of  transportation.  However, these efforts are still largely in the early stages.   International events such as the March 2004 Madrid and July 2005 London  train bombings, have, in part, contributed to this increased focus.   Specifically, TSA and other DHS components have developed an approach  for securing surface modes of transportation, have taken steps to conduct  risk assessments of surface transportation assets; and have administered  related grant programs. However, TSA has not issued standards for  securing all surface transportation modes, and is still defining what its  regulatory role will be.  Moreover, although TSA has made progress in  conducting compliance inspections of some surface transportation  systems, inspectors’ roles and missions have not been fully defined.  As  shown in table 2, we identified five performance expectations for DHS in  the area of surface transportation security and found that, overall, DHS  primarily through the efforts of TSA has made moderate progress in  meeting these expectations. Specifically, we found that DHS has generally  achieved three performance expectations and has generally not achieved  two performance expectations.
Strategic Approach for Implementing Security Functions.  We  concluded that DHS has generally achieved this performance expectation.   In May 2007, DHS issued the sector-specific plan for transportation  systems and supporting annexes for surface transportation modes, and  reported taking actions to adopt the strategic approach outlined by the  plan. The Transportation Systems Sector-Specific Plan and its supporting  modal implementation plans and appendixes establish a strategic  approach for securing surface transportation modes based on the National  Infrastructure Protection Plan and Executive Order 13416, Strengthening  Surface Transportation Security. The Transportation Systems Sector- Specific Plan describes the security framework that is intended to enable  sector stakeholders to make effective and appropriate risk-based security  and resource allocation decisions. During the course of our work  assessing freight rail, commercial vehicles, and highway infrastructure  security, we identified that TSA has begun to implement some of the  security initiatives outlined in the sector-specific plan and supporting  modal plans.  While DHS has issued a strategy for securing all  transportation modes, and has demonstrated that it has begun to take  actions to implement the goals and objectives outlined in the strategy, we  have not yet analyzed the overall quality of the plan or supporting modal  annexes, the extent to which efforts outlined in the plan and annexes have  been implemented, or the effectiveness of identified security initiatives.  In  addition, we recognize that the acceptance of DHS’s approach by federal,  state and local, and private sector stakeholders is crucial to its successful  implementation. We also have not assessed the extent to which the plan  and supporting modal annexes were coordinated with or adopted by these  stakeholders. We will continue to assess DHS's efforts to implement its  strategy for securing surface transportation modes as part of our ongoing  reviews of mass transit, passenger and freight rail, commercial vehicle,  and highway infrastructure security.
Threat, Criticality and Vulnerability Assessments.  We reported that  DHS has generally achieved this performance expectation.  TSA has taken  actions to conduct threat, criticality, and vulnerability assessments of  surface transportation assets, particularly for mass transit, passenger rail,  and freight rail, but we have not yet reviewed the quality of many of these  assessments.  TSA uses threat assessments and information as part of its  surface transportation security efforts.  For example, TSA has conducted  threat assessments of mass transit, passenger rail, and freight rail  transportation modes.  TSA has also conducted assessments of the  vulnerabilities associated with surface transportation assets, to varying  degrees, for most surface modes of transportation. For freight rail, for  example, we found that TSA has conducted vulnerability assessments of  High Threat Urban Area rail corridors where toxic inhalation hazard  shipments are transported.  However, TSA’s vulnerability assessment  efforts are still ongoing and in some instances, are in the early stages,  particularly for commercial vehicles and highway infrastructure.  With  regard to criticality assessments, DHS has conducted such assessments for  some surface transportation modes. For example, TSA has conducted  Corporate Security Reviews with 38 state Department of Transportation  highway programs.  In addition, the National Protection and Programs  Directorate’s Office of Infrastructure Protection conducts highway  infrastructure assessments that look at critical highway infrastructure  assets.  We testified in January 2007 that TSA had reported completing an  overall threat assessment for mass transit and passenger and freight rail  modes, and had conducted criticality assessments of nearly 700 passenger  rail stations. In addition, we further reported that the Grant Programs  Directorate developed and implemented a risk assessment tool to help  passenger rail operators better respond to terrorist attacks and prioritize  security measures. We will continue to review threat, criticality and  vulnerability assessments conducted by TSA and other DHS components  for surface modes of transportation during our ongoing work assessing  mass transit, passenger and freight rail, highway infrastructure, and  commercial vehicle security.
Issuance of Security Standards.  We found that DHS has generally not  achieved this performance expectation.  TSA has taken actions to develop  and issue security standards for mass transit, passenger rail, and freight  rail modes. However, TSA did not provide us with evidence of its efforts to  develop and issue security standards for all surface transportation modes,  or provided a rationale or explanation why standards may not be needed  for other modes.  Specifically, TSA has developed and issued security  directives, security action items—recommended measures for passenger  rail and mass transit operators to implement in their security programs to  improve both security and emergency preparedness, and a proposed rule  in December 2006 on passenger and freight rail security requirements.  In  April 2007, DHS reported that TSA uses field activities to assess  compliance with security directives and implementation of  noncompulsory security standards and protective measures with the  objective of a broad-based enhancement of passenger rail and rail transit  security.  TSA also reported that in its December 2006 notice of proposed  rulemaking on new security measures for freight rail carriers, it proposed  requirements designed to ensure 100 percent positive handoff of toxic  inhalation hazard shipments that enter high threat urban areas, as well as  security protocols for custody transfers of toxic inhalation hazard rail cars  in high-threat urban areas.  TSA also reported that its High Threat Urban  Area rail corridor assessments supported the development of the  Recommended Security Action Items for the Rail Transportation of Toxic  Inhalation Materials issued by DHS and the Department of Transportation  in June 2006.
Compliance Inspections. We concluded that DHS has generally not  achieved this performance expectation.  TSA has made progress in  conducting compliance inspections, particularly in hiring and deploying  inspectors, but inspectors’ roles and missions have not yet been fully  defined.  TSA officials have reported that the agency has hired 100 surface  transportation inspectors whose stated mission is to, among other duties,  monitor and enforce compliance with TSA’s rail security directives.   However, some mass transit and passenger rail operators have expressed  confusion and concern about the role of TSA inspectors and the potential  that these inspections could duplicate other federal and state rail  inspections.  In March and April 2007, with respect to freight rail, TSA  reported visiting terminal and railroad yards to measure implementation of  7 of 24 DHS recommended security action items for the transportation of  toxic inhalation hazard materials.  Through its Surface Transportation  Security Inspection program, TSA reported that its inspectors conduct  inspections of key facilities for rail and transit systems to assess transit  systems’ implementation of core transit security fundamentals and  comprehensive security action items; conduct examinations of  stakeholder operations, including compliance with security directives;  identify security gaps; and develop effective practices.  Although TSA has  deployed inspectors to conduct compliance inspections and carry out  other security activities in the mass transit, passenger rail, and freight rail  modes, TSA did not provide us with evidence that it has conducted  compliance inspections for other surface transportation modes or  information on whether the department believes compliance inspections  are needed for other modes.
The 9/11 Commission Act authorizes funds to be appropriated for TSA to  employ additional surface transportation inspectors and requires that  surface transportation inspectors have relevant transportation experience  and appropriate security and inspection qualifications.    The Act also  requires DHS to consult periodically with surface transportation entities  on the inspectors’ duties, responsibilities, authorities, and mission.  We  will continue to assess TSA's inspection efforts during our ongoing work.
Grant Programs.  We reported that DHS generally achieved this  performance expectation.  More specifically, DHS has developed and  administered grant programs for various surface transportation modes.  However, some industry stakeholders have raised concerns regarding  DHS’s current grant process, such as time delays and other barriers in the  provision of grant funding.  We have not yet assessed DHS’s provision of  grant funding or the extent to which DHS monitors the use of the funds.   In March 2007, we reported that the DHS Office of Grants and Training,  now called the Grant Programs Directorate, has used various programs to  fund passenger rail security since 2003. Through the Urban Area Security  Initiative grant program, the Grant Programs Directorate has provided  grants to urban areas to help enhance their overall security and  preparedness level to prevent, respond to, and recover from acts of  terrorism. The Grant Programs Directorate used fiscal year 2005, 2006, and  2007 appropriations to build on the work under way through the Urban  Area Security Initiative program, and create and administer new programs  focused specifically on transportation security, including the Transit  Security Grant Program and the Intercity Passenger Rail Security Grant  Program.  The 9/11 Commission Act requires DHS to establish grant  programs for security improvements in the public transportation,  passenger and freight rail, and over-the-road bus modes and requires DHS  to take certain actions in implementing the grant programs.  For example,  the Act requires that DHS determine the requirements for grant recipients  and establish the priorities for which grant funding may be used, and it  requires that DHS and DOT determine the most effective and efficient way  to distribute grant funds, authorizing DHS to transfer funds to DOT for the  purpose of disbursement.  We will be assessing grants distributed for mass  transit and passenger rail as part of our ongoing work.
section_title: Cross-cutting Issues Have Hindered DHS’s Efforts in Implementing Its Mission and Management Functions
paragraphs: Our work has identified homeland security challenges that cut across  DHS’s mission and core management functions. These issues have  impeded the department’s progress since its inception and will continue as  DHS moves forward. While it is important that DHS continue to work to  strengthen each of its mission and core management functions, to include  transportation security, it is equally important that these key issues be  addressed from a comprehensive, department wide perspective to help  ensure that the department has the structure and processes in place to  effectively address the threats and vulnerabilities that face the nation.  These issues include: (1) transforming and integrating DHS’s management  functions; (2) establishing baseline performance goals and measures and  engaging in effective strategic planning efforts; (3) applying and  strengthening a risk management approach for implementing missions and  making resource allocation decisions; (4) sharing information with key  stakeholders; and (5) coordinating and partnering with federal, state and  local, and private sector agencies. We have made numerous  recommendations to DHS and its components to strengthen these efforts,  and the department has made progress in implementing some of these  recommendations.
DHS has faced a variety of difficulties in its efforts to transform into a fully  functioning department.  We designated DHS’s implementation and  transformation as high-risk in part because failure to effectively address  this challenge could have serious consequences for our security and  economy.  DHS continues to face challenges in key areas including  acquisition, financial, human capital, and information technology  management.  This array of management and programmatic challenges  continues to limit DHS’ ability to effectively and efficiently carry out its  mission. In addition, transparency plays an important role in helping to  ensure effective and efficient transformation efforts. We have reported  that DHS has not made its management or operational decisions  transparent enough so that Congress can be sure it is effectively,  efficiently, and economically using the billions of dollars in funding it  receives annually. More specifically, in April 2007, we testified that we  have encountered access issues during numerous engagements at DHS,  including significant delays in obtaining requested documents that have  affected our ability to do our work in a timely manner. The Secretary of  DHS and the Under Secretary for Management have stated their desire to  work with us to resolve access issues and to provide greater transparency.  It will be important for DHS and its components to become more  transparent and minimize recurring delays in providing access to  information on its programs and operations so that Congress, GAO, and  others can independently assess its efforts.
In addition, DHS has not always implemented effective strategic planning  efforts and has not yet fully developed performance measures or put into  place structures to help ensure that the agency is managing for results. We  have identified strategic planning as one of the critical success factors for  new organizations, and reported that DHS as well as TSA and other  component efforts in this area have been mixed.  For example, with  regards to TSA’s efforts to secure air cargo, we reported that TSA  completed an Air Cargo Strategic Plan in November 2003 that outlined a  threat-based risk management approach to securing the nation’s domestic  air cargo system, and that this plan identified strategic objectives and  priority actions for enhancing air cargo security based on risk, cost, and  deadlines.  However, we reported that TSA had not developed a similar  strategy for addressing the security of inbound air cargo—cargo  transported into the United States from foreign countries, including how  best to partner with CBP and international air cargo stakeholders.  In  another example, we reported that TSA had not yet developed outcome- based performance measures for its foreign airport assessment and air  carrier inspection programs, such as the percentage of security  deficiencies that were addressed as a result of TSA’s on-site assistance and  recommendations, to identify any aspects of these programs that may  need attention.  We recommended that DHS direct TSA and CBP to  develop a risk-based strategy, including specific goals and objectives, for  securing air cargo; and develop outcome-based performance measures  for its foreign airport assessment and air carrier inspection programs.   DHS generally concurred with GAO’s recommendations.
DHS has also not fully adopted and applied a risk management approach  in implementing its mission and core management functions. Risk  management has been widely supported by the President and Congress as  an approach for allocating resources to the highest priority homeland  security investments, and the Secretary of Homeland Security and the  Assistant Secretary for Transportation Security have made it a centerpiece  of DHS and TSA policy.  Several DHS component agencies and TSA have  worked towards integrating risk-based decision making into their security  efforts, but we reported that these efforts can be strengthened.  For  example, TSA has incorporated certain risk management principles into  securing air cargo, but has not completed assessments of air cargo  vulnerabilities or critical assets—two crucial elements of a risk-based  approach without which TSA may not be able to appropriately focus its  resources on the most critical security needs.  TSA has also incorporated  risk-based decision making when making modifications to airport  checkpoint screening procedures, to include modifying procedures based  on intelligence information and vulnerabilities identified through covert  testing at airport checkpoints. However, in April 2007 we reported that  TSA’s analyses that supported screening procedural changes could be  strengthened.  For example, TSA officials based their decision to revise  the prohibited items list to allow passengers to carry small scissors and  tools onto aircraft based on their review of threat information—which  indicated that these items do not pose a high risk to the aviation system— so that TSOs could concentrate on higher threat items. However, TSA  officials did not conduct the analysis necessary to help them determine  whether this screening change would affect TSO’s ability to focus on  higher-risk threats.
We have further reported that opportunities exist to enhance the  effectiveness of information sharing among federal agencies, state and  local governments, and private sector entities. In August 2003, we reported  that efforts to improve intelligence and information sharing need to be  strengthened, and in 2005, we designated information sharing for  homeland security as high-risk.  In January 2005, we reported that the  nation still lacked an implemented set of government-wide policies and  processes for sharing terrorism-related information, but DHS has issued a  strategy on how it will put in place the overall framework, policies, and  architecture for sharing information with all critical partners—actions that  we and others have recommended. DHS has taken some steps to  implement its information sharing responsibilities. States and localities are  also creating their own information “fusion” centers, some with DHS  support. With respect to transportation security, the importance of  information sharing was recently highlighted in the 9/11 Commission Act  which requires DHS to establish a plan to promote the sharing of  transportation security information among DHS and federal, state and  local agencies, tribal governments, and appropriate private entities.The  Act also requires that DHS provide timely threat information to carriers  and operators that are preparing and submitting a vulnerability assessment  and security plan, including an assessment of the most likely methods that  could be used by terrorists to exploit weaknesses in their security.
In addition to providing federal leadership with respect to homeland  security, DHS also plays a large role in coordinating the activities of key  stakeholders, but has faced challenges in this regard. To secure the nation,  DHS must form effective and sustained partnerships between legacy  component agencies and a range of other entities, including other federal  agencies, state and local governments, the private and nonprofit sectors,  and international partners. We have reported that successful partnering  and coordination involves collaborating and consulting with stakeholders  to develop and agree on goals, strategies, and roles to achieve a common  purpose; identify resource needs; establish a means to operate across  agency boundaries, such as compatible procedures, measures, data, and  systems; and agree upon and document mechanisms to monitor, evaluate,  and report to the public on the results of joint efforts. We have found that  the appropriate homeland security roles and responsibilities within and  between the levels of government, and with the private sector, are  evolving and need to be clarified.  For example, we reported that  opportunities exists for TSA to work with foreign governments and  industry to identify best practices for securing passenger rail, and air  cargo, and recommended that TSA systematically compile and analyze  information on practices used abroad to identify those that may strengthen  the department’s overall security efforts.   Further, regarding efforts to  respond to in-flight security threats, which depending on the nature of the  threat could involve more than 15 federal agencies and agency  components, we recommended that DHS and other departments  document and share their respective coordination and communication  strategies and response procedures.   In September 2005, we reported that  TSA did not effectively involve private sector stakeholders in its decision  making process for developing security standards for passenger rail  assets.  We recommended that DHS develop security standards that  reflect industry best practices and can be measured, monitored, and  enforced by TSA rail inspectors and, if appropriate, rail asset owners.   DHS agreed with these recommendations. In addition, the 9/11  Commission Act includes provisions designed to improve coordination  with stakeholders.  For example, the Act requires DHS and the  Department of Transportation to develop an annex to the Memorandum of  Understanding between the two departments governing the specific roles,  responsibilities, resources, and commitments in addressing motor carrier  transportation security matters, including the processes the departments  will follow to promote communications and efficiency, and avoid  duplication of effort.  The Act also requires DHS in consultation with the  Department of Transportation to establish a program to provide  appropriate information that DHS has gathered or developed on the  performance, use, and testing of technologies that may be used to enhance  surface transportation security to surface transportation entities.
section_title: Concluding Observations
paragraphs: The magnitude of DHS’s and more specifically TSA’s responsibilities in  securing the nation’s transportation system is significant, and we  commend the department on the work it has done and is currently doing  to secure this network.  Nevertheless, given the dominant role that TSA  plays in securing the homeland, it is critical that its programs and  initiatives operate as efficiently and effectively as possible.  In the almost 6  years since its creation, TSA has had to undertake its critical mission while  also establishing and forming a new agency.  At the same time, a variety of  factors, including threats to and attacks on transportation systems around  the world, as well as new legislative requirements, have led the agency to  reassess its priorities and reallocate resources to address key events, and  to respond to emerging threats.  Although TSA has made considerable  progress in addressing key aspects of commercial aviation security, more  work remains in the areas of checkpoint and air cargo technology, airport  security, and passenger prescreening.  Further, although TSA has more  recently taken actions in a number of areas to help secure surface modes  of transportation, its efforts are still largely in the early stage, and the  nature of its regulatory role, and relationship with transportation  operators, is still being defined.  As DHS , TSA, and other components  move forward, it will be important for the department to work to address  the challenges that have affected its operations thus far, including  developing results-oriented goals and measures to assess performance;  developing and implementing a risk-based approach to guide resource  decisions; and establishing effective frameworks and mechanisms for  sharing information and coordinating with homeland security partners.  A  well-managed, high-performing department is essential to meeting the  significant challenge of securing the transportation network.  As DHS,  TSA, and other components continue to evolve, implement their programs,  and integrate their functions, we will continue to review their progress and  performance and provide information to Congress and the public on these  efforts.
Mr. Chairman this concludes my statement. I would be pleased to answer  any questions that you or other members of the committee may have at  this time.
section_title: GAO Contact and Staff Acknowledgments
paragraphs: For further information on this testimony, please contact Cathleen Berrick  at (202) 512- 3404 or at berrickc@gao.gov. Individuals making key  contributions to this testimony include Steve D. Morris, Assistant Director,  Gary Malavenda, Susan Langley, and Linda Miller.
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