FPS was created in 1971 and located within GSA until, under the Homeland Security Act of 2002, it was transferred to DHS and placed within ICE, effective March 1, 2003. Under the act, FPS is authorized to protect the buildings, grounds, and property that are under the control and custody of GSA and the persons on the property. FPS is authorized to enforce federal laws and regulations aimed at protecting GSA buildings and persons on the property and to investigate offenses against these buildings and persons. DHS and GSA developed an MOA to set forth roles, responsibilities, and operational relationships between FPS and GSA concerning the security of GSA buildings. In accordance with the MOA, FPS inspectors are responsible for performing a range of law enforcement and security duties at GSA buildings, including patrolling the building perimeter, responding to incidents and demonstrations, completing risk assessments for buildings and space that GSA is participating in meetings with GSA property managers and tenant overseeing contract guard operations. The level of physical protection services FPS provides at each of the 9,000 GSA buildings varies depending on the building’s security level. To determine a building’s security level, FPS uses the Department of Justice (DOJ) vulnerability assessment guidelines, which categorize federal buildings into security levels I through V based on factors such as building size and number of employees. The DOJ standards recommend minimum security measures for each of the five levels and FPS uses these standards and other information to recommend countermeasures. The DOJ standards also require FPS to complete BSAs every 2 to 4 years, depending on the security level of the building. For example, a BSA is to be completed every 2 years for a level IV building and every 4 years for a level I building. As part of each assessment, the inspector is required to conduct an on-site physical security analysis using FPS’s risk assessment tool, known as Federal Security Risk Manager, and interview tenant agency security representatives, GSA realty specialists, site security supervisors, and building managers. After completing their assessments, inspectors make recommendations to GSA and tenant agencies for building security countermeasures, including security equipment and security fixtures. Tenant agencies decide whether to fund countermeasures recommended for security equipment and FPS is responsible for acquiring, installing, and maintaining approved equipment. GSA and tenant agencies determine whether to fund recommended security fixtures and GSA is responsible for acquiring, installing, and maintaining approved fixtures. In some cases, and in accordance with its policies, FPS has delegated the protection of buildings to tenant agencies, which may have their own law enforcement authority or may contract separately for guard services. FPS is a fully reimbursable agency—that is, its services are fully funded by security fees collected from tenant agencies. FPS charges each tenant agency a basic security fee per square foot of space occupied in a GSA building. In fiscal year 2009, the basic security fee is 66 cents per square foot and covers services such as patrolling the building perimeter, monitoring building perimeter alarms, dispatching law enforcement officers through its control centers, conducting criminal investigations, and performing BSAs. FPS also collects an administrative fee that it charges tenant agencies for building-specific security services, such as controlling access to building entrances and exits and checking employees and visitors. In fiscal year 2009, the fee rate for building-specific expenses is 8 percent. In addition to these security services, FPS provides tenant agencies with additional services upon request, which are funded through reimbursable security work authorizations (SWA) for which FPS charges an administrative fee. For example, tenant agencies fund FPS’s security equipment countermeasure recommendations that they approve through SWAs. In fiscal year 2009, the SWA fee rate is 8 percent. Since transferring to DHS, FPS’s mission has expanded beyond solely protecting GSA buildings to include homeland security activities, such as implementing homeland security directives, and providing law enforcement, security, and emergency response services during natural disasters and special events. For example, FPS serves as the sector- specific agency for the Government Facilities critical infrastructure sector under Homeland Security Presidential Directive 7 (HSPD-7). Additionally, DHS has authority under the Homeland Security Act to engage FPS in activities DHS deems necessary to enhance homelandsecurity. For example, FPS can be called upon to assist the Federal Emergency Management Agency in responding to natural disasters, a provide backup to other DHS law enforcement units during special events, such as political demonstrations. According to FPS, it is reimbursed fo these supportive services. We have previously identified challenges that raised concerns about FPS’s protection of GSA buildings and tenants. In 2004, we reported on the challenges FPS faced in transitioning from GSA to DHS, including issues related to expanding responsibilities and funding. In June 2008, we reported on a range of operational and funding challenges facing FPS. We found that the operational challenges we identified hampered FPS’s ability to accomplish its mission of protecting GSA buildings and the actions it took may not have fully resolved the challenges. For example, the number of FPS staff decreased by about 20 percent between fiscal year 2004 and fiscal year 2007. We found that FPS managed these decreases in staffing resources in a way that diminished security and increased the risk of crime and terrorist attacks at many GSA buildings. We further reported that the actions FPS took to address its funding challenges had some adverse implications. For example, during fiscal years 2005 and 2006, FPS’s projected expenses exceeded its collections, and DHS had to transfer funds to make up the difference. We also found that although FPS had developed output measures, it lacked outcome measures to assess the effectiveness of its efforts to protect GSA buildings. Moreover, FPS lacked a reliable data management system for accurately tracking performance measures. “Nothing in this chapter may be construed to affect the functions or authorities of the Administrator of General Services with respect to the operation, maintenance, and protection of buildings and grounds owned or occupied by the Federal Government and under the jurisdiction, custody, or control of the Administrator. Except for the law enforcement and related security functions transferred under section 203(3) of this title, the Administrator shall retain all powers, functions, and authorities vested in the Administrator under chapter 1, except section 121(e)(2)(A), and chapters 5 to 11 of Title 40, and other provisions of law that are necessary for the operation, maintenance, and protection of such buildings and grounds.” In response to a 2005 GAO recommendation and to enhance coordination with FPS, GSA established the Building Security and Policy Division within the Public Buildings Service (PBS)—where FPS once resided—in 2006. This division has three primary branches: Building Security Policy—develops GSA security policies. Building Security Operations—interfaces with FPS and monitors the services FPS provides to GSA and tenant agencies. Physical Security—provides physical security expertise, training, and guidance to GSA leadership, regional staff, and tenant agencies. During 2006, the division developed the Regional Security Network, which consists of several staff per GSA region to further enhance coordination with FPS at the regional and building levels, and to carry out GSA security policy in collaboration with FPS and tenant agencies. In 1995, Executive Order 12977 established the ISC to enhance the quality and effectiveness of security in, and protection of, nonmilitary buildings occupied by federal employees in the United States. ISC has representation from all federal cabinet-level departments and other agencies and key offices, including GSA and FPS. Furthermore, ISC was established as a permanent body to address continuing government security issues for federal buildings. Under the order, ISC became responsible for developing policies and standards, ensuring compliance and overseeing implementation, and sharing and maintaining information. Executive Order 13286 transferred the ISC Chair from GSA to DHS. In 2004, we assessed ISC’s progress in fulfilling its responsibilities. We have identified a set of key facility protection practices from the collective practices of federal agencies and the private sector to provide a framework for guiding agencies’ protection efforts and addressing challenges. We focused on the following three key practices for this report: (1) allocating resources using risk management; (2) leveraging technology; and (3) information sharing and coordination. We have used the key practices to evaluate the efforts of the Smithsonian Institution to protect its assets, of DHS to protect its facilities, and of federal entities to protect icons and facilities on the National Mall. Moreover, ISC is using our key facility protection practices as key management practices to guide its priorities and work activities. For example, ISC established subcommittees for technology best practices and training, and working groups in the areas of performance measures and strategic human capital management. ISC also issued performance measurement guidance in 2009. FPS is limited in its ability to influence the allocation of resources using risk management because security funding decisions are the responsibility of GSA and tenant agencies. Moreover, FPS uses an outdated risk assessment tool, a subjective approach, and a time-consuming process to conduct BSAs. GSA and tenant agencies have concerns about the quality and timeliness of FPS’s risk assessment services and in some cases, are assuming these responsibilities. Although FPS is taking steps to implement a new risk management program, it is unclear when all program components—such as risk assessment tools—will be fully implemented as FPS has extended initial implementation from fiscal year 2009 into fiscal year 2010. FPS’s new risk management program could help GSA and tenant agencies refine their resource allocation decisions if risk assessments are enhanced and FPS can help GSA and tenant agencies prioritize risks among all buildings. Until the risk management program is implemented, FPS will continue to use its current approach, which may leave some buildings and tenants vulnerable to terrorist attacks and crime.