Security clearances are required for access to certain national security information, which may be classified at one of three levels: confidential, secret, and top secret. The level of classification denotes the degree of protection required for information and the amount of damage that unauthorized disclosure could reasonably be expected to cause to national security. Unauthorized disclosure could reasonably be expected to cause (1) “damage,” in the case of confidential information; (2) “serious damage,” in the case of secret information; and (3) “exceptionally grave damage,” in the case of top secret information. To ensure the trustworthiness and reliability of personnel in positions with access to classified information, DOD relies on a multiphased personnel security clearance process. DOD’s Office of the Under Secretary of Defense for Intelligence has responsibility for developing and overseeing DOD’s process for determining eligibility for clearances for military and DOD civilian personnel and private industry personnel working on DOD contracts. That process includes obtaining background investigations, primarily through OPM’s Federal Investigative Services Division. Figure 1 shows the progression of the six phases involved in determining whether to grant an applicant a clearance. If, during the requirements setting phase, DOD determines that a position requires a clearance, in the application submission phase a security officer (1) requests an investigation of the individual filling that position; (2) forwards a personnel security questionnaire (standard form 86) using OPM’s Electronic Questionnaires for Investigations Processing (e-QIP) system or a paper copy of the standard form 86 to the individual to complete; (3) reviews the completed questionnaire; and (4) sends the questionnaire and supporting documentation, such as fingerprints, to OPM. After the application is submitted, DOD security officers often grant interim clearances to the applicants to enable them to access classified information while awaiting the completion of the clearance process. DOD grants interim clearances on a more limited evaluation on the basis of electronic checks of national records, credit checks, and checks of current personnel and security records at applicants’ current duty stations. In the investigation phase, OPM or one of its contractors uses federal investigative standards and OPM’s internal guidance to conduct and document the investigation of the applicant. The scope of information gathered in an investigation depends on the level of clearance needed and whether an investigation for an initial clearance or a reinvestigation for a clearance renewal is being conducted. For example, the federal standards require that investigators collect information from national agencies such as the Federal Bureau of Investigation for all initial and renewal clearances. However, the federal standards require investigators to corroborate education and interview educational sources, as appropriate, only in investigations supporting top secret initial clearances. In appendix II, we list the information required for each clearance level and for initial and renewal clearances. OPM’s internal guidance includes both OPM’s product table and the July 2007 investigator’s handbook. The product table lists the investigative items OPM will include based on the type of clearance investigation to be conducted, and the handbook outlines the policies, procedures, and guidance to which all persons performing investigative work under the authority of OPM must adhere. For an investigation for a confidential or secret clearance, investigators gather much of the information electronically. For an investigation for a top secret clearance, investigators gather additional information through more time-consuming efforts such as traveling to conduct in-person interviews to corroborate information about an applicant’s employment and education. In 2009, OPM estimated that approximately 6-10 labor hours were needed for each investigation for a secret or confidential clearance and 50-60 labor hours were needed for the investigation for an initial top secret clearance. After the investigation is complete, OPM provides the resulting investigative report to the appropriate DOD adjudication facility. In the adjudication phase, DOD adjudicators at one of DOD’s central adjudication facilities use the information from the investigative report to determine whether an applicant is eligible for a security clearance. To make clearance eligibility decisions, federal requirements specify that adjudicators consider guidelines in 13 specific areas that elicit information about (1) conduct that could raise security concerns and (2) factors that could allay those security concerns, even when serious, and permit granting a clearance. For example, under the foreign influence guideline, a connection to a foreign person or government is a condition that could raise a security concern. One factor that could allay this security concern is if the connection to a foreign person or government is established while the applicant conducted business on behalf of the U.S. government. These guidelines are listed in appendix III. Once adjudicators render the decision to approve, deny, or revoke eligibility for a security clearance, adjudicators are required by DOD regulation to document the rationale behind the decision in DOD’s Joint Personnel Adjudication System. Typically, adjudicators notify the applicant’s employer of the decision. The final clearance renewal phase takes place for individuals who have been previously granted and already hold a clearance. Renewals for holders of confidential and secret clearances take place every 15 and 10 years, respectively, and renewals for top secret clearances take place every 5 years. To grant a renewal clearance, OPM or one of its contractors conducts and documents a reinvestigation of the clearance holder, which also is based on federal investigative standards and OPM’s internal guidance. DOD adjudicators then use the same decision-making processes to determine whether a clearance holder is eligible for a clearance renewal using the adjudicative guidelines. DOD adjudication facilities and their appeal boards are authorized to grant, deny, or revoke security clearance eligibility. Individuals who are denied a clearance or have their clearance eligibility revoked may appeal these decisions to the relevant Personnel Security Appeals Board. The appeals process may involve any individual or organization that could provide information relevant to an applicant’s security clearance decision (e.g., adjudication facilities, employer, and investigative agency). The time to complete the appeals process varies from weeks to years. Recent steps taken to reform security clearance processes include the formation of the Joint Security and Suitability Reform Team (Joint Reform Team) in June 2007. The Joint Reform Team was formed, in part, to address IRTPA’s requirements that the executive branch implement a plan by December 17, 2009, under which, to the extent practical, at least 90 percent of initial clearances investigations and adjudications are completed within 60 days, on average. DOD and OMB officials have noted that the existing personnel security clearance system is unlikely to allow DOD and other agencies to meet these requirements and that clearance process reforms are necessary to meet them. Agencies included in this governmentwide reform effort are the Office of the Director of National Intelligence, DOD, OMB, and OPM. The Joint Reform Team submitted an initial reform plan to the President on April 30, 2008. The plan proposed a new process for determining clearance eligibility that departs from the current system in a number of ways, including the use of a more sophisticated electronic application, a more flexible investigation process, and the establishment of ongoing evaluation procedures between formal clearance investigations. The President’s June 30, 2008, executive order was another recent step taken to reform the security clearance process and included the formation of the Performance Accountability Council in June 2008. The President’s order directed, among other things, that executive branch policies and procedures be aligned and use consistent standards, to the extent possible, for investigating and adjudicating whether an individual is (1) suitable for government employment, (2) fit to be a contract employee, or (3) eligible for access to classified information. The council is accountable to the President to achieve reform goals, consistent with the order, and also oversees newly designated Security and Suitability Executive Agents. The order designates the Deputy Director for Management at OMB as the chair of the council and grants the chair the authority to designate officials from additional agencies to serve as members. Since placing DOD’s program on our high-risk list in 2005, we have issued a number of reports and testified at several hearings on personnel security clearance issues. Most recently, in December 2008, we issued a report of our preliminary observations about timeliness and quality. We also testified in 2008 on key factors for reforming the security clearance program, the clearance process for industry personnel, and joint reform efforts to improve the governmentwide clearance process. IRTPA currently requires that the executive branch report annually on the progress made during the preceding year toward meeting the act’s timeliness requirements for clearances and that clearance decisions on at least 80 percent of initial clearances be made within 120 days, on average. IRTPA also requires that a plan be implemented by December 2009 under which, to the extent practical, 90 percent of initial clearance decisions be made within 60 days, on average. Furthermore, IRTPA provides the executive branch broad discretion to report on any additional information it considers appropriate. Accordingly, the executive branch’s 2009 report presented an average of the fastest 90 percent of initial clearance decisions and, in so doing, began to anticipate IRTPA’s December 2009 requirements. The report stated that the average time for completing the fastest 90 percent of initial clearances for military and DOD civilians in fiscal year 2008 was 124 days. The report also stated that the average time for completing the fastest 90 percent of initial clearances for private industry personnel working on DOD contracts in fiscal year 2008 was 129 days. To determine whether DOD and OPM met IRTPA’s current timeliness requirement that clearance decisions on at least 80 percent of initial clearances be made within 120 days, on average, we conducted an independent analysis and took an average of the fastest 80 percent of 450,000 initial DOD clearances including military and DOD civilians, or private industry personnel working on DOD contracts completed in fiscal year 2008. These clearances were completed in an average of 87 days.