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Testimony:

Before the Subcommittee on Oversight and Investigations, Committee on 
Energy and Commerce, House of Representatives:

United States General Accounting Office: 
GAO:

For Release on Delivery: 
Expected at 9:00 a.m. 
Tuesday, July 9, 2002:

Homeland Security:

Title III of the Homeland Security Act of 2002:

Statement of (Ms) Gary L. Jones
Director, Natural Resources and Environment:

GAO-02-927T:

Mr. Chairman and Members of the Subcommittee:

I appreciate the opportunity to be here today to discuss several 
aspects of the Homeland Security Act of 2002. The proposed legislation 
would bring many federal entities with homeland security 
responsibilities into a Department of Homeland Security in an effort 
to mobilize and focus assets and resources. Title III of the proposed 
legislation would task the new department with developing national 
policy for and coordinating the federal government’s research and 
development efforts for responding to chemical, biological, 
radiological, and nuclear threats. It would also transfer to the new 
department responsibility for certain research and development 
programs and other activities, including those of the Department of 
Energy (DOE).[Footnote 1]

In my testimony today, which focuses on Title III of the proposed 
legislation, I will address (1) the need for clarification of certain 
roles and responsibilities of the new department and (2) our 
observations on transferring certain activities of DOE to the new 
department. Our testimony is based largely on our previous and ongoing 
work on national preparedness issues,[Footnote 2] as well as a review 
of the proposed legislation.

In concept and if properly implemented, this proposed legislation 
could lead to a more efficient, effective and coordinated research 
effort that would provide technology to protect our people, borders, 
and critical infrastructure. However, the legislation does not address 
many issues that could impact the Department of Homeland Security’s 
potential effectiveness. For example, while it is tasked with 
coordinating federal “civilian” research, the new department will also 
need to coordinate with the Department of Defense and the intelligence 
agencies that conduct research and development efforts designed to 
detect and respond to weapons of mass destruction. Further, the 
proposed legislation does not specify that a critical role of the new 
department will be to establish collaborative relationships with 
programs at all levels of government and to develop a strategic plan 
for research and development to implement the national policy it is 
charged with developing. In addition, the proposed legislation is not 
clear on the role of the new department in setting standards for the 
performance and interoperability of new technologies so that users can 
be confident that the technologies they are purchasing will perform as 
intended. Lacking this, the Department of Homeland Security may not be 
able to efficiently and effectively focus the research and development 
resources of the federal government to address the most important 
terrorist threats.

Regarding the transfer of certain activities of DOE to the new 
department, we believe that some of the transfers proposed in the 
legislation are appropriate, such as DOE’s nuclear threat assessment 
program and the Environmental Measurements Laboratory (EML). However, 
we are concerned that the transfer of certain DOE research and 
development activities may complicate research currently being 
performed to accomplish multiple purposes. For example, some research 
programs, such as Lawrence Livermore National Laboratory’s advanced 
scientific computing research program, have broad missions such as 
ensuring the reliability of our nuclear weapons stockpile that are not 
easily separated into homeland security research and research for 
other purposes. Furthermore, in some cases, such as the energy 
security and assurance program activities at DOE, the legislation does 
not clearly indicate exactly what research would be transferred.

Background:

In response to global challenges the government faces in the coming 
years, the creation of a Department of Homeland Security provides a 
unique opportunity to create an extremely effective and performance- 
based organization that can strengthen the nation’s ability to protect 
its borders and citizens against terrorism. There is likely to be 
considerable benefit over time from restructuring some of the homeland 
security functions, including reducing risk and improving the economy, 
efficiency and effectiveness of these consolidated agencies and 
programs. Realistically, however, in the short term, the magnitude of 
the challenges that the new department faces will clearly require 
substantial time and effort, and will take additional resources to 
make it fully effective.

Recently, we testified that Congress should consider several very 
specific criteria in its evaluation of whether individual agencies or 
programs should be included or excluded from the proposed department. 
Those criteria include the following:

* Mission Relevancy: Is homeland security a major part of the agency 
or program mission? Is it the primary mission of the agency or program?

* Similar Goals and Objectives: Does the agency or program being 
considered for the new department share primary goals and objectives 
with the other agencies or programs being consolidated?

* Leverage Effectiveness: Does the agency or program being considered 
for the new department create synergy and help to leverage the 
effectiveness of other agencies and programs or the new department as 
a whole? In other words, is the whole greater than the sum of the parts?

* Gains Through Consolidation: Does the agency or program being 
considered for the new department improve the efficiency and 
effectiveness of homeland security missions through eliminating 
duplications and overlaps, closing gaps and aligning or merging common 
roles and responsibilities?

* Integrated Information Sharing/Coordination: Does the agency or 
program being considered for the new department contribute to or 
leverage the ability of the new department to enhance the sharing of 
critical information or otherwise improve the coordination of missions 
and activities related to homeland security?

* Compatible Cultures: Can the organizational culture of the agency or 
program being considered for the new department effectively meld with 
the other entities that will be consolidated? Field structures and 
approaches to achieving missions vary considerably between agencies.

* Impact on Excluded Agencies: What is the impact on departments 
losing components to the new department? What is the impact on 
agencies with homeland security missions left out of the new department?

Federally sponsored research and development efforts, a key focus of 
the proposed legislation, enhance the government’s capability to 
counter chemical, biological, radiological, and nuclear terrorist 
threats by providing technologies that meet a range of crisis-and 
consequence-management needs. Research and development efforts for 
these technologies, however, can be risky, time consuming, and costly. 
Such efforts also may need to address requirements not available in 
off-the-shelf products. These factors limit private and public 
research and development efforts for these technologies, necessitating 
federal government involvement and collaboration.

Many federal agencies and interagency working groups have recently 
deployed or are conducting research on a variety of technologies to 
combat terrorism. Recently deployed technologies include a prototype 
biological detection system used at the Salt Lake City Olympics and a 
prototype chemical detection system currently being used in Washington 
D.C.’s metro system that was developed by DOE. Technologies under 
development include new or improved vaccines, antibiotics, and 
antivirals being developed by the National Institutes of Health. In 
addition, the Centers for Disease Control and Prevention, in 
collaboration with other federal agencies, are conducting research on 
the diagnosis and treatment of smallpox. Moreover, the Food and Drug 
Administration is investigating a variety of biological agents that 
could be used as terrorist weapons. Other federal agencies such as the 
Department of Defense and intelligence community are engaged in 
similar research and development activities, such as research on 
technology to protect combatants from chemical and biological agents.

Roles and Responsibilities of the Proposed Department of Homeland 
Security Need to be Clarified:

Certain roles and responsibilities of the Department of Homeland 
Security in managing research and development need to be clarified. 
Under the proposed legislation, the Department of Homeland Security 
would be tasked with developing national policy for and coordinating 
the federal government’s civilian research and development efforts to 
counter chemical, biological, radiological, and nuclear threats. 
However, while coordination is important, it will not be enough. 
Federal agency coordination alone may not address the specific needs 
of state and local governments, such as those of local police and fire 
departments that will use this technology. In our view, the proposed 
legislation should also specify that a role of the new department will 
be to develop collaborative relationships with programs at all levels 
of government--federal, state, and local--to ensure that users’ needs 
and research efforts are linked. We also believe the legislation 
should be clarified to ensure that the new department would be 
responsible for the development of a single national research and 
development strategic plan. Such a plan would help to ensure that 
research gaps are filled, unproductive duplication is minimized, and 
individual agency plans are consistent with the overall goals. 
Moreover, the proposed legislation, as written, is unclear about the 
new department’s role in developing standards for the performance and 
interoperability of new technologies to address terrorist threats. We 
believe the development of these standards must be a priority of the 
new department.

Shortfalls in Current Research Coordinating Efforts:

The limitations of existing coordination and the critical need for a 
more collaborative, unified research structure has been amply 
demonstrated in the recent past. We have previously reported that 
while agencies attempt to coordinate federal research and development 
programs in a variety of ways, breakdowns occur, leading to research 
gaps and duplication of effort.[Footnote 3] Coordination is limited by 
compartmentalization of efforts because of the sensitivity of the 
research and development programs, security classification of 
research, and the absence of a single coordinating entity to ensure 
against duplication. For example, the Department of Defense’s Defense 
Advanced Research Projects Agency was unaware of U.S. Coast Guard’s 
plans to develop methods to detect biological agents on infected 
cruise ships and, therefore, was unable to share information on its 
potentially related research to develop biological detection devices 
for buildings.

Opportunities to Improve Existing Legislative Proposal:

Although the proposed legislation states that the new department will 
be responsible for developing national policy and coordinating 
research and development, it has a number of limitations that could 
weaken its effectiveness. First, the legislation tasks the new 
department with coordinating the federal government’s “civilian efforts”
 only. We believe the new department will also need to coordinate with 
the Department of Defense and the intelligence agencies that conduct 
research and development efforts designed to detect and respond to 
weapons of mass destruction. The proposed transfer of some DOE 
research and development efforts to the Department of Homeland 
Security also does not eliminate potential overlaps, gaps, and 
opportunities for collaboration. Coordination will still be required 
within and among the 23 DOE national laboratories. For example, our 
2001 report noted that two offices within Sandia National Laboratory 
concurrently and separately worked on similar thermal imagery projects 
for two different federal agencies, rather than consolidating the 
requests and combining resources. In addition, local police and fire 
departments and state and local governments possess practical 
knowledge about their technological needs and relevant design 
limitations that should be taken into account in federal efforts to 
provide new equipment, such as protective gear and sensor systems. To 
be most effective, the new department will have to develop 
collaborative relationships with all these organizations to facilitate 
technological improvements and encourage cooperative behavior.

The existing proposal leaves a number of problems unaddressed as well. 
For example, while the proposed legislation is clear that the position 
of Undersecretary for Chemical, Biological, Radiological, and Nuclear 
Countermeasures will be responsible for developing national policy for 
federal research and development, there is no requirement for a 
strategic plan for national research and development that could 
address coordination, reduce potential duplication, and ensure that 
important issues are addressed. In 2001, we recommended the creation 
of a unified strategy to reduce duplication and leverage resources, 
and suggested that the plan be coordinated with federal agencies 
performing research as well as with state and local 
authorities.[Footnote 4] The development of such a plan would help to 
ensure that research gaps are filled, unproductive duplication is 
minimized, individual agency plans are consistent with the overall 
goals, and a basis for assessing the success of the research and 
development efforts.

Also, while the legislation calls for the establishment of guidelines 
for state and local governments to implement countermeasures for 
chemical, biological, radiological, and nuclear terrorism threats, it 
is not clear to us what these guidelines are to entail. In this 
regard, we believe it will be important to develop standards for the 
performance and interoperability of new technologies, something that 
the legislation does not specifically address. For example, we had 
discussions with officials from the Utah State Department of Health 
who prepared for the 2002 Winter Olympic Games. These officials said 
that local police and fire departments had been approached by numerous 
vendors offering a variety of chemical and biological detection 
technology for use during the Olympics. However, these state and local 
officials were unsure of the best technology to purchase and could 
find no federal agency that would provide guidance on the 
technologies. They told us that if the science backing up the 
technology is poor or the data the technology produces are faulty, the 
technology can do more harm than good.

Further, the legislation would allow the new department to direct, 
fund, and conduct research related to chemical, biological, 
radiological, nuclear, and other emerging threats on its own. This 
raises the potential for duplication of efforts, lack of efficiency, 
and an increased need for coordination with other departments that 
would continue to carry out relevant research. We are concerned that 
the proposal could result in a duplication of capacity that already 
exists in the current federal laboratories.

Transferring Certain Activities of DOE to the Department of Homeland 
Security Raises Concerns:

Under Title III of the proposed legislation, a number of DOE programs 
and activities would be transferred to the new department. Some of 
these transfers seem appropriate. However, in other cases we are 
concerned about the transfers because of the potential impact on 
programs and activities that currently support missions beyond 
homeland security. Finally, in some cases, transfers proposed by the 
legislation are not laid out in enough detail to permit an assessment. 
We discuss each of these groups of transfers below.

Transfer of Certain DOE Activities Seems Appropriate:

Title III proposes to transfer to the Department of Homeland Security 
certain DOE activities that seem appropriate. Specifically, Title III 
proposes to transfer the nuclear threat assessment program and 
activities of the assessment, detection, and cooperation program in DOE’
s international Materials, Protection, and Accountability Program 
(MPC&A). The threat assessment program and activities, among other 
things, assesses the credibility of communicated nuclear threats, 
analyzes reports of illicit nuclear material trafficking, and provides 
technical support to law enforcement agencies regarding nuclear 
material/weapons. We would agree with officials of the Office of 
Nuclear Threat Assessment and Detection who view the potential 
transfer to the Department of Homeland Security positively. We base 
our agreement on the fact that, according to officials from DOE, the 
transfer would not have a negative impact on the rest of the MPC&A 
program because the functions are separate and distinct. Further, the 
transfer could tie the office in more closely with the other agencies 
they work with, such as Customs.

Another program that we believe could be appropriately transferred to 
the new department is the Environmental Measurements Laboratory (EML), 
located in New York City. This government-operated laboratory operates 
under the Office of Science and Technology in the Office of 
Environmental Management at DOE. EML provides program management, 
technical assistance and data quality assurance for measurements of 
radiation and radioactivity relating to environmental restoration, 
global nuclear nonproliferation, and other priority issues for DOE, as 
well as for other government, national and international 
organizations. According to the laboratory director, the laboratory is 
completely in favor of the transfer to the proposed Department of 
Homeland Security and would fit in very well with it. We believe the 
transfer is appropriate because, unlike some other transfers proposed 
under Title III, the entire laboratory would be transferred. While it 
is a multiprogram laboratory serving several elements of DOE as well 
as other organizations, serving multiple clients could continue under 
a “work for others” contracting arrangement whether the laboratory was 
housed within DOE or the Department of Homeland Security.

Some Proposed Transfers Give Reasons for Concern:

Title III proposes transferring the parts of DOE’s nonproliferation 
and verification research and development program that conduct 
research on systems to improve the nation’s capability to prepare for 
and respond to chemical and biological attacks. The legislation also 
proposes transferring a portion of the program’s proliferation 
detection research. This includes work on developing sensors to help 
the Coast Guard monitor container shipping at ports of entry. These 
proposed transfers raise concerns because much of the program’s 
research supports both homeland security and international 
nonproliferation programs. These programs have broad missions that are 
not easily separated into homeland security research and research for 
other purposes and the proposed legislation is not clear how these 
missions would continue to be accomplished. Furthermore, we are 
concerned that the legislation does not clearly indicate whether only 
the programmatic management and funding would move or also the 
scientists carrying out the research. Moving the scientists may not be 
prudent. This is because the research is currently conducted by 
multiprogram laboratories that employ scientists skilled in many 
disciplines who serve many different missions and whose research 
benefits from their interactions with colleagues within the laboratory.

In addition, we believe transferring control of some scientists within 
the DOE national laboratories to the Department of Homeland Security 
could complicate an already dysfunctional DOE organizational structure 
by blurring lines of authority and accountability. DOE carries out its 
diverse missions through a network of multilayered field offices that 
oversee activities at the national laboratories and other DOE 
facilities widely dispersed throughout the country. The structure 
inherited by DOE and the different program cultures and management 
styles within that structure have confounded DOE’s efforts to develop 
a more effective organization. Transferring control of scientists 
within the national laboratories could complicate the accomplishment 
of homeland security missions and DOE’s other missions by adding 
additional lines of authority and accountability between the 
laboratory scientists, DOE, and the Department of Homeland Security. 
One alternative would be for the new department to contract with DOE’s 
national laboratories to conduct the research under “work for others” 
contracts. This would allow for direct contact between the Department 
of Homeland Security and the laboratories conducting the research 
without creating a new bureaucracy. Many federal agencies such as the 
Department of Defense and intelligence agencies currently use this 
contracting arrangement with the national laboratories.

We have similar concerns about transferring two other activities to 
the new department:

* The advanced scientific computing research program and activities at 
Lawrence Livermore National Laboratory are developing supercomputer 
hardware and software infrastructure aimed at enabling laboratory and 
university researchers to solve the most challenging scientific 
problems at a level of accuracy and detail never before achieved. 
Research conducted under the program include; designing materials 
atom- by-atom, revealing the functions of proteins, understanding and 
controlling plasma turbulence, designing new particle accelerators and 
modeling global climate change. This program is an integral part of DOE’
s efforts to ensure that the nuclear weapons stockpile is safe and 
secure. This program may be difficult to separate into homeland 
security research and research for other purposes.

* The Life Sciences Division within the DOE Office of Science’s 
Biological and Environmental Research Program manages a diverse 
portfolio of research to develop fundamental biological information 
and to advance technology in support of DOE’s missions in biology, 
medicine, and the environment. For example, it is determining the 
whole genome sequences of a variety of infectious bacteria, including 
anthrax strains--a first step toward developing tests that can be used 
to rapidly identify their presence in the environment.

In both of these instances, the programs serve multiple missions. 
These dual-purpose programs have important synergies that we believe 
should be maintained. We are concerned that transferring control over 
these programs to the new department has the potential to disrupt some 
programs that are critical to other DOE missions, such as the 
reliability of our nuclear weapons. We do not believe that the 
proposed legislation is sufficiently clear on how both the homeland 
security and these other missions would be accomplished.

Transfer of Some Activities Is Unclear:

The details of two other transfers proposed in the legislation are 
unclear. First, Title III would transfer the intelligence program 
activities at Lawrence Livermore National Laboratory. These 
intelligence activities are related to the overall program carried out 
by DOE’s Office of Intelligence. The Office of Intelligence gathers 
information related to DOE’s missions--energy, nuclear weapons, 
nuclear proliferation, basic science, radiological research and 
environmental cleanup. To support this overall intelligence program, 
Lawrence Livermore National Laboratory, like other weapons 
laboratories, conducts intelligence activities. At Lawrence Livermore, 
the “Z” division conducts these activities and has special 
intelligence expertise related to tracking the nuclear capabilities of 
countries other than Russia and China. Importantly, the “Z” division 
receives funding from other DOE programs and/or offices as well as 
funding from other federal agencies (Department of Defense, Federal 
Bureau of Investigation, Central Intelligence Agency, etc.). According 
to officials at DOE Headquarters and Lawrence Livermore National 
Laboratory, only about $5 million of the division’s $30-50 million 
budget comes from DOE’s Office of Intelligence. These officials said 
the transfer would most likely affect only the $5 million that DOE’s 
Office of Intelligence directly provides to the laboratory, but this 
is not clear in the proposed legislation. As with other DOE programs 
discussed in this testimony, the staff that carry out these activities 
are contractor employees and it is not clear how they would be 
transferred to the Department of Homeland Security. Moreover, DOE 
headquarters and other laboratories also have a role in intelligence, 
and the legislation does not propose to transfer any of their 
intelligence functions.

Another area of Title III where the details are unclear is the 
transfer of “energy security and assurance program activities.” These 
activities are carried out by the Office of Energy Assurance, which 
was created in November 2001 to work with state and local government 
and industry to strengthen the security of the United States through 
the application of science and technology to improve the reliability 
and security of the national energy infrastructure. The national 
energy infrastructure includes (1) physical and cyber assets of the 
nation’s electric power, oil, and natural gas infrastructures; (2) 
interdependencies among physical and cyber energy infrastructure 
assets; (3) national energy infrastructure’s interdependencies with 
all other critical national infrastructures. At the time this 
testimony was being prepared, DOE and the Office of Homeland Security 
were trying to define the scope of the proposed transfer.

Mr. Chairman, this completes my prepared statement. I would be happy 
to respond to any questions you or other Members of the Committee may 
have at this time.

Contact and Acknowledgments

For further information about this testimony, please contact Gary 
Jones at (202) 512-3841. Gene Aloise, Seto J. Bagdoyen, Ryan T. Coles, 
Darryl W. Dutton, Kathleen H. Ebert, Laurie E. Ekstrand, Cynthia 
Norris and Keith Rhodes also made key contributions to this testimony.

[End of section]

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Combating Terrorism: Observations on Federal Spending to Combat 
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November 12, 1998.

Combating Terrorism: Observations on the Nunn-Lugar-Domenici Domestic 
Preparedness Program. GAO/T-NSIAD-99-16. Washington, D.C.: October 2, 
1998.

Combating Terrorism: Observations on Crosscutting Issues. GAO/T-NSIAD-
98-164. Washington, D.C.: April 23, 1998.

Combating Terrorism: Threat and Risk Assessments Can Help Prioritize 
and Target Program Investments. GAO/NSIAD-98-74. Washington, D.C.: 
April 9, 1998.

Combating Terrorism: Spending on Governmentwide Programs Requires 
Better Management and Coordination. GAO/NSIAD-98-39. Washington, D.C.: 
December 1, 1997.

Disaster Assistance:

Disaster Assistance: Improvement Needed in Disaster Declaration 
Criteria and Eligibility Assurance Procedures. GAO-01-837. Washington, 
D.C.: August 31, 2001.

Chemical Weapons: FEMA and Army Must Be Proactive in Preparing States 
for Emergencies. GAO-01-850. Washington, D.C.: August 13, 2001.

Federal Emergency Management Agency: Status of Achieving Key Outcomes 
and Addressing Major Management Challenges. GAO-01-832. Washington, 
D.C.: July 9, 2001.

Budget and Management:

Budget Issues: Long-Term Fiscal Challenges. GAO-02-467T. Washington, 
D.C.: February 27, 2002.

Results-Oriented Budget Practices in Federal Agencies. GAO-01-1084SP. 
Washington, D.C.: August 2001.

Managing for Results: Federal Managers’ Views on Key Management Issues 
Vary Widely Across Agencies. GAO-01-592. Washington, D.C.: May 25, 2001.

Determining Performance and Accountability Challenges and High Risks. 
GAO-01-159SP. Washington, D.C.: November 2000.

Managing for Results: Using the Results Act to Address Mission 
Fragmentation and Program Overlap. GAO-AIMD-97-146. Washington, D.C.: 
August 29, 1997.

Government Restructuring: Identifying Potential Duplication in Federal 
Missions and Approaches. GAO/T-AIMD-95-161. Washington, D.C.: June 7, 
1995.

Government Reorganization: Issues and Principles. GAO/T-GGD/AIMD-95-
166. Washington, D.C.: May 17, 1995.

Grant Design:

Grant Programs: Design Features Shape Flexibility, Accountability, and 
Performance Information. GAO/GGD-98-137. Washington, D.C.: June 22, 
1998.

Federal Grants: Design Improvements Could Help Federal Resources Go 
Further. GAO/AIMD-97-7. Washington, D.C.: December 18, 1996.

Block Grants: Issues in Designing Accountability Provisions. GAO/AIMD- 
95-226. Washington, D.C.: September 1, 1995.

[End of section] 

Footnotes: 

[1] Sections 301, 302, and 303 of the President’s proposed legislation 
primarily cover these changes.

[2] See “Related GAO Products” at the end of this testimony.

[3] U.S. General Accounting Office, Homeland Security: Proposal for 
Cabinet Agency Has Merit, But Implementation Will be Pivotal to 
Success, GAO-02-886T (Washington, D.C.: June 25, 2002).

[4] U.S. General Accounting Office, Chemical and Biological Defense: 
Coordination of Nonmedical Chemical and Biological R&D Programs, GAO/ 
NSIAD-99-160 (Washington, D.C.: August 16, 1999), and U.S. General 
Accounting Office, Combating Terrorism: Selected Challenges and 
Related Recommendations, GAO-01-822 (Washington, D.C.: September 20, 
2001).