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Testimony: 

Before the Permanent Subcommittee on Investigations, Committee on 
Homeland Security and Governmental Affairs, U.S. Senate: 

United States Government Accountability Office: 

GAO: 

For Release on Delivery Expected at 9:30 a.m. EST: 

Tuesday, March 28, 2006: 

Combating Nuclear Smuggling: 

Challenges Facing U.S. Efforts to Deploy Radiation Detection Equipment 
in Other Countries and in the United States: 

Statement of Gene Aloise, Director: 
Natural Resources and Environment: 

GAO-06-558T: 

GAO Highlights: 

Highlights of GAO-06-558T, a testimony before the Permanent 
Subcommittee on Investigations, Committee on Homeland Security and 
Governmental Affairs, U.S. Senate: 

Why GAO Did This Study: 

GAO is releasing two reports today on U.S. efforts to combat nuclear 
smuggling in foreign countries and in the United States. Together with 
the March 2005 report on the Department of Energy’s Megaports 
Initiative, these reports represent GAO’s analysis of the U.S. effort 
to deploy radiation detection equipment worldwide. 

In my testimony, I will discuss (1) the progress made and challenges 
faced by the Departments of Energy (DOE), Defense (DOD), and State in 
providing radiation detection equipment to foreign countries and (2) 
the Department of Homeland Security’s (DHS) efforts to install 
radiation detection equipment at U.S. ports of entry and challenges it 
faces. 

What GAO Found: 

Regarding the deployment of radiation detection equipment in foreign 
countries, DOE, DOD, and State have spent about $178 million since 
fiscal year 1994 to provide equipment and related training to 36 
countries. For example, through the end of fiscal year 2005, DOE’s 
Second Line of Defense program had completed installation of equipment 
at 83 sites, mostly in Russia. However, these agencies face a number of 
challenges that could compromise their efforts, including corruption of 
foreign border security officials, technical limitations and inadequate 
maintenance of some equipment, and the lack of supporting 
infrastructure at some border sites. To address these challenges, U.S. 
agencies plan to take a number of steps, including combating corruption 
by installing multitiered communications systems that establish 
redundant layers of accountability for alarm response. State 
coordinates U.S. programs to limit overlap and duplication of effort. 
However, State’s ability to carry out this role has been limited by 
deficiencies in its interagency strategic plan and its lack of a 
comprehensive list of all U.S. radiation detection equipment provided 
to other countries. 

Domestically, DHS had installed about 670 radiation portal monitors 
through December 2005 and provided complementary handheld radiation 
detection equipment at U.S. ports of entry at a cost of about $286 
million. DHS plans to install a total of 3,034 radiation portal 
monitors by the end of fiscal year 2009 at a total cost of $1.3 
billion. However, the final costs and deployment schedule are highly 
uncertain because of delays in releasing appropriated funds to 
contractors, difficulties in negotiating with seaport operators, and 
uncertainties in the type and cost of radiation detection equipment DHS 
plans to deploy. Overall, GAO found that U.S. Customs and Border 
Protection (CBP) officers have made progress in using radiation 
detection equipment correctly and adhering to inspection guidelines, 
but CBP’s secondary inspection procedures could be improved. For 
example, GAO recommended that DHS require its officers to open 
containers and inspect them for nuclear and radioactive materials when 
they cannot make a determination from an external inspection and that 
DHS work with the Nuclear Regulatory Commission (NRC) to institute 
procedures by which inspectors can validate NRC licenses at U.S. ports 
of entry. 

U.S.-Funded Equipment in Uzbekistan and at a Northern U.S. Port of 
Entry: 

[See PDF for image] 

[End of figure] 

What GAO Recommends: 

In the report on U.S. efforts to combat nuclear smuggling in other 
countries, GAO made five recommendations to improve, among other 
things, equipment maintenance, coordination among U.S. programs, and 
accountability of equipment. Both DOE and State agreed with GAO’s 
recommendations. In the report on radiation detection at U.S. ports of 
entry, GAO made nine recommendations designed to help DHS speed up the 
pace of portal monitor deployments, better account for schedule delays 
and cost uncertainties, and improve its ability to interdict illicit 
nuclear materials. DHS agreed with GAO’s recommendations. 

www.gao.gov/cgi-bin/getrpt?GAO-06-558T. 

To view the full product, including the scope and methodology, click on 
the link above. For more information, contact Gene Aloise at (202) 512-
3841 or aloisee@gao.gov. 

[End of section] 

Mr. Chairman and Members of the Subcommittee: 

I am pleased to be here today to discuss our work on U.S. government 
programs to combat nuclear smuggling through the deployment of 
radiation detection equipment at border crossings and other ports of 
entry both in foreign countries and in the United States.[Footnote 1] 
According to the International Atomic Energy Agency, between 1993 and 
2004, there were 662 confirmed cases of illicit trafficking in nuclear 
and radiological materials worldwide. Twenty-one of these cases 
involved material that could be used to produce a nuclear weapon, and 
over 400 involved materials that could be used to produce a device that 
uses conventional explosives with radioactive material (known as a 
"dirty bomb"). Especially in the aftermath of the attacks on September 
11, 2001, there is heightened concern that terrorists may try to 
smuggle nuclear material or a nuclear weapon into the United States. 
This could happen in several ways: nuclear materials could be hidden in 
a car, train, or ship; sent through the mail; carried in personal 
luggage through an airport; or walked across an unprotected border. If 
terrorists were to accomplish this, the consequences could be 
devastating to our national and economic interests. 

In response to these threats, four U.S. agencies, the Departments of 
Energy (DOE), Defense (DOD), State (State), and Homeland Security 
(DHS), implement programs to combat nuclear smuggling in foreign 
countries and in the United States. Regarding U.S. efforts in other 
countries, the first major initiatives to combat nuclear smuggling 
during the 1990s concentrated on deploying radiation detection 
equipment at borders in countries of the former Soviet Union. One of 
the main U.S. programs providing radiation detection equipment to 
foreign governments is DOE's Second Line of Defense program, which 
began installing equipment at key sites in Russia in 1998. In 2003, DOE 
began a second program, the Megaports Initiative, to combat nuclear 
smuggling at major foreign seaports.[Footnote 2] In addition to DOE's 
efforts, two DOD programs have provided radiation portal monitors, 
handheld equipment, and radiation detection training to 8 countries in 
the former Soviet Union and Eastern Europe. Similarly, three State 
programs have provided radiation detection equipment and training to 31 
countries since fiscal year 1994. 

Regarding efforts to combat nuclear smuggling in the United States, DHS 
is responsible for providing radiation detection capabilities at U.S. 
ports of entry. Until April 2005, U.S. Customs and Border Protection 
(CBP) managed this program. However, on April 15, 2005, the President 
directed the establishment, within DHS, of the Domestic Nuclear 
Detection Office (DNDO), whose duties include acquiring and supporting 
the deployment of radiation detection equipment.[Footnote 3] CBP 
continues its traditional screening function at ports of entry to 
prevent illegal immigration and interdict contraband, including the 
operation of radiation detection equipment. DHS is deploying portal 
monitors in five phases: international mail and express courier 
facilities; northern border crossings; major seaports; southwestern 
border crossings; and all other categories, including international 
airports and remaining border crossings, seaports, and rail crossings. 
Generally, CBP prioritized these categories according to their 
perceived vulnerability to the threat of nuclear smuggling (rather than 
through a formal risk assessment). 

My testimony summarizes the findings of our two reports being released 
today on U.S. programs to combat nuclear smuggling. Specifically, I 
will discuss (1) the progress made by the various federal agencies 
tasked with installing radiation detection equipment at ports of entry 
in foreign countries and the challenges these agencies face and (2) 
DHS's efforts to install radiation detection equipment at U.S. ports of 
entry and challenges DHS faces in completing its program. 

Summary: 

Regarding deployment of radiation detection equipment in foreign 
countries, DOE, DOD, and State have spent a total of about $178 million 
since fiscal year 1994 to provide assistance to 36 countries. For 
example, DOE's Second Line of Defense program has installed equipment 
at 83 sites, mostly in Russia, at a cost of about $130 million. 
However, DOE, DOD, and State face challenges that could compromise 
their programs' effectiveness, including (1) corruption of foreign 
border security officials, (2) technical limitations of some equipment 
at foreign sites, (3) problems with maintenance of some handheld 
equipment, and (4) the lack of infrastructure and harsh environmental 
conditions at some border sites. 

* According to officials from several countries we visited, corruption 
is a pervasive problem within border security organizations. DOE, DOD, 
and State officials told us they are concerned that corrupt foreign 
border security personnel could compromise the effectiveness of U.S.-
funded radiation detection equipment by either turning off equipment or 
ignoring alarms. To mitigate this threat, DOE and DOD plan to deploy 
communications links between individual border sites and national 
command centers so that alarm data can be simultaneously evaluated by 
multiple officials. 

* Some portal monitors that State and other U.S. agencies previously 
installed at foreign border sites have technical limitations and can 
only detect gamma radiation, which makes them less effective at 
detecting weapons-usable nuclear material than equipment with both 
gamma and neutron radiation detection capabilities. Since 2002, DOE has 
maintained this equipment but has only upgraded equipment at one site. 
Until the remaining sites receive equipment with both gamma and neutron 
detection capabilities, they will be vulnerable to certain forms of 
nuclear smuggling. 

* DOE has not systematically maintained handheld radiation detection 
equipment provided by State and other agencies. As a result, many 
pieces of handheld equipment, which are vital for border officials to 
conduct secondary inspections, may not function properly. 

* Finally, many border sites are located in remote areas that often do 
not have access to infrastructure essential to operate radiation 
detection equipment and associated communication systems. Additionally, 
environmental conditions at some sites, such as extreme heat, can 
affect equipment performance. To mitigate these concerns, DOE, DOD, and 
State have provided generators and other equipment at remote border 
sites to ensure stable electricity supplies and, when appropriate, heat 
shields or other protection to ensure the effectiveness of radiation 
detection equipment. 

In addition, State is the lead interagency coordinator charged with 
limiting overlap and duplication of effort among U.S. programs, but its 
ability to carry out this role has been limited by deficiencies in its 
strategic plan for interagency coordination and its lack of a 
comprehensive list of all U.S. radiation detection equipment provided 
to other countries. 

Regarding deployment of radiation detection equipment at U.S. ports of 
entry, through December 2005, DHS had installed about 670 portal 
monitors--about 22 percent of the portal monitors DHS plans to deploy-
-at U.S. border crossings, seaports, and international mail and express 
courier facilities at a cost of about $286 million. DHS plans to deploy 
a total of 3,034 portal monitors by 2009 at a total cost of $1.3 
billion. However, the final costs and deployment schedule are highly 
uncertain because of delays in releasing appropriated funds to 
contractors, difficulties in negotiating with seaport operators, and 
uncertainties in the type and cost of radiation detection equipment DHS 
plans to deploy. Specifically: 

* DHS's cumbersome review process for providing requested information 
to the Congress has resulted in funds being unavailable until later in 
the fiscal year. This review process involves multiple approvals within 
DHS and the Office of Management and Budget and has held up the release 
of program funds, which has delayed the deployment of radiation 
detection equipment at U.S. ports of entry. 

* Difficult negotiations with seaport operators about placement of 
portal monitors and screening of railcars have delayed deployments at 
U.S. seaports. Many seaport operators are concerned that radiation 
detection equipment may inhibit the flow of commerce through their 
ports. In addition, seaports are much larger than land border 
crossings, consist of multiple terminals, and may have multiple exits, 
which may require a greater number of portal monitors. 

* DHS's $1.3 billion cost estimate for completing its domestic 
radiation detection program is uncertain, in part, because DHS would 
like to deploy advanced technology portal monitors that will likely 
cost significantly more than current models. However, tests have shown 
that these new advanced technology portal monitors are not demonstrably 
more effective than current models in their core function of 
identifying the presence of radiation. Consequently, it is not clear 
that the benefits of the new portal monitors would be worth the 
increased cost. 

In addition, CBP officers have made progress in using radiation 
detection equipment correctly and adhering to inspection guidelines, 
but we identified ways to improve CBP's secondary inspection 
procedures. For example, when detection equipment alarms to indicate 
the presence of radioactivity, CBP officers are not expressly required 
to open containers and inspect their interiors, even though, under some 
circumstances, doing so can increase the chances that the source of 
radioactivity will be correctly located and identified. Furthermore, 
although radiological materials shipped into the United States are 
generally required to have a Nuclear Regulatory Commission (NRC) 
license, importers are not required to present these licenses at U.S. 
ports of entry, and CBP inspectors are not required to verify the 
authenticity of these licenses and do not have a system to do so. My 
GAO colleague, Mr. Greg Kutz, will be testifying on a GAO operation 
that was conducted to test CBP's inspection procedures and certain NRC 
licensing procedures. 

In our report on U.S. efforts to combat nuclear smuggling in other 
countries, we made five recommendations. Specifically, we recommended 
that DOE take steps to upgrade U.S.-funded portal monitors in foreign 
countries that do not have both gamma and neutron detection 
capabilities and improve program cost estimates for anticorruption 
measures. Additionally, we recommended that State, working with DOE and 
DOD, ensure maintenance is provided for all handheld radiation 
detection equipment supplied by U.S. programs; strengthen its 
interagency coordination plan by including specific performance 
measures, overall cost estimates, and projected time frames for 
completion of U.S. efforts; and compile, maintain, and share a master 
list of all U.S. radiation detection assistance. Both DOE and State 
agreed with our recommendations. In our report on DHS's efforts to 
deploy radiation detection equipment at U.S. ports of entry, we made 
nine recommendations, including a series of actions designed to help 
DHS speed up the pace of portal monitor deployments, better account for 
schedule delays and cost uncertainties, make the most efficient use of 
program resources, and improve its ability to interdict illicit nuclear 
materials. DHS agreed with our recommendations and is taking steps to 
implement them. 

Background: 

Detecting illicit trafficking in nuclear material is complicated 
because one of the materials of greatest concern--highly enriched 
uranium--has a relatively low level of radioactivity and is, therefore, 
among the most difficult to detect. In contrast, medical and industrial 
radioactive sources, which could be used to construct a dirty bomb, are 
highly radioactive and, therefore, easier to detect. Although their 
levels of radioactivity differ, uranium and radioactive sources are 
similar in that they generally emit only gamma radiation, which is 
relatively easily shielded when encased in high-density material, such 
as lead. For example, we reported in March 2005 that a cargo container 
containing a radioactive source passed through radiation detection 
equipment DOE had installed at a foreign seaport without being detected 
because the source was surrounded by large amounts of scrap metal in 
the container. 

Plutonium, another nuclear material of great concern, emits both gamma 
and neutron radiation. Although most currently fielded radiation 
detection equipment has the capability to detect both gamma and neutron 
radiation, shielding neutron radiation can be more difficult than 
shielding gamma radiation. Consequently, plutonium can usually be 
detected by a neutron detector regardless of the amount of shielding 
from high-density material. According to DOE officials, neutron 
radiation alarms are caused only by man-made materials, such as 
plutonium, while gamma radiation alarms are caused by a variety of 
naturally occurring sources, including commercial goods such as 
bananas, ceramic tiles, and fertilizer, as well as by dangerous nuclear 
materials, such as uranium and plutonium. 

Because of the complexities of detecting and identifying nuclear 
material, customs officers and border guards who are responsible for 
operating detection equipment must be trained in using handheld 
radiation detectors to pinpoint the source of an alarm, identify false 
alarms, and properly respond to cases of nuclear smuggling. The manner 
in which radiation detection equipment is deployed, operated, and 
maintained can also limit its effectiveness. Given the difficulties in 
detecting certain nuclear materials and the inherent limitations of 
currently deployed radiation detection equipment, it is important that 
the equipment be installed, operated, and maintained in a way that 
optimizes authorities' ability to interdict illicit nuclear materials. 

Although efforts to combat nuclear smuggling through the installation 
of radiation detection equipment are important, the United States 
should not and does not rely upon radiation detection equipment at U.S. 
or foreign borders as its sole means for preventing nuclear materials 
or a nuclear warhead from reaching the United States. Recognizing the 
need for a broad approach to the problem, the U.S. government has 
multiple initiatives that are designed to complement each other that 
provide a layered defense against nuclear terrorism. For example, DOE 
works to secure nuclear material and warheads at their sources through 
programs that improve the physical security at nuclear facilities in 
the former Soviet Union and in other countries. In addition, DHS has 
other initiatives to identify containers at foreign seaports that are 
considered high risk for containing smuggled goods, such as nuclear and 
other dangerous materials. Supporting all of these programs is 
intelligence information that can give advanced notice of nuclear 
material smuggling and is a critical component to prevent dangerous 
materials from entering the United States. 

U.S. Efforts to Provide Radiation Detection Equipment to Other 
Countries Face Corruption, Maintenance, and Coordination Challenges: 

One of the main U.S. efforts providing radiation detection equipment to 
foreign governments is DOE's Second Line of Defense program, which 
began installing equipment at key sites in Russia in 1998. According to 
DOE, through the end of fiscal year 2005, the program had spent about 
$130 million to complete installations at 83 sites, mostly in Russia. 
Ultimately, DOE plans to install radiation detection equipment at a 
total of about 350 sites in 31 countries by 2012 at a total cost of 
about $570 million. In addition to DOE's efforts, other U.S. agencies 
also have programs that provide radiation detection equipment and 
training to foreign governments. Two programs at DOD--the International 
Counterproliferation Program and Weapons of Mass Destruction 
Proliferation Prevention Initiative--have provided equipment and 
related training to eight countries in the former Soviet Union and 
Eastern Europe at a cost of about $22 million. Similarly, three 
programs at State--the Nonproliferation and Disarmament Fund, Georgia 
Border Security and Law Enforcement program, and Export Control and 
Related Border Security program--have spent about $25 million to 
provide radiation detection equipment and training to 31 countries. 

However, these agencies face a number of challenges that could 
compromise their programs' effectiveness, including (1) corruption of 
foreign border security officials, (2) technical limitations of 
equipment at some foreign sites, (3) problems with maintenance of 
handheld equipment, and (4) the lack of infrastructure and harsh 
environmental conditions at some border sites. First, according to 
officials from several recipient countries we visited, corruption is a 
pervasive problem within the ranks of border security organizations. 
DOE, DOD, and State officials told us they are concerned that corrupt 
foreign border security personnel could compromise the effectiveness of 
U.S.-funded radiation detection equipment by either turning off 
equipment or ignoring alarms. To mitigate this threat, DOE and DOD plan 
to deploy communications links between individual border sites and 
national command centers so that alarm data can be simultaneously 
evaluated by multiple officials, thus establishing redundant layers of 
accountability for alarm response. In addition, DOD plans to implement 
a program in Uzbekistan to combat some of the underlying issues that 
can lead to corruption through periodic screening of border security 
personnel. 

Second, some radiation portal monitors that State and other U.S. 
agencies previously installed have technical limitations: they can 
detect only gamma radiation, making them less effective at detecting 
some nuclear material than equipment with both gamma and neutron 
radiation detection capabilities. Through an interagency agreement, DOE 
assumed responsibility for ensuring the long-term sustainability and 
continued operation of radiation portal monitors and X-ray vans 
equipped with radiation detectors that State and other U.S. agencies 
provided to 23 countries. Through this agreement, DOE provides spare 
parts, preventative maintenance, and repairs for the equipment through 
regularly scheduled maintenance visits. Since 2002, DOE has maintained 
this equipment but has not upgraded any of it, with the exception of at 
one site in Azerbaijan. According to DOE officials, new implementing 
agreements with the appropriate ministries or agencies within the 
governments of each of the countries where the old equipment is located 
are needed before DOE can install more sophisticated equipment. 

Third, since 2002, DOE has been responsible for maintaining certain 
radiation detection equipment previously deployed by State and other 
agencies in 23 countries. However, DOE is not responsible for 
maintaining handheld radiation detection equipment provided by these 
agencies. As a result, many pieces of handheld equipment, which are 
vital for border officials to conduct secondary inspections of vehicles 
or pedestrians, may not function properly. For example, in Georgia, we 
observed border guards performing secondary inspections with a handheld 
radiation detector that had not been calibrated (adjusted to conform 
with measurement standards) since 1997. According to the detector's 
manufacturer, yearly recalibration is necessary to ensure that the 
detector functions properly. 

Finally, many border sites are located in remote areas that often do 
not have access to reliable supplies of electricity, fiber optic lines, 
and other infrastructure essential to operate radiation detection 
equipment and associated communication systems. Additionally, 
environmental conditions at some sites, such as extreme heat, can 
affect the performance of equipment. To mitigate these concerns, DOE, 
DOD, and State have provided generators and other equipment at remote 
border sites to ensure stable supplies of electricity and, when 
appropriate, heat shields or other protection to ensure the 
effectiveness of radiation detection equipment. 

We also reported that State's ability to carry out its role as lead 
interagency coordinator of U.S. radiation detection equipment 
assistance has been limited by deficiencies in its strategic plan for 
interagency coordination and by its lack of a comprehensive list of all 
U.S. radiation detection equipment assistance. In response to a 
recommendation we made in 2002, State led the development of a 
governmentwide plan to coordinate U.S. radiation detection equipment 
assistance overseas. This plan broadly defines a set of interagency 
goals and outlines the roles and responsibilities of participating 
agencies. However, the plan lacks key components, including overall 
program cost estimates, projected time frames for program completion, 
and specific performance measures. Without these elements in the plan, 
State will be limited in its ability to effectively measure U.S. 
programs' progress toward achieving the interagency goals. 

Additionally, in its role as lead interagency coordinator, State has 
not maintained accurate information on the operational status and 
location of all radiation detection equipment provided by U.S. 
programs. While DOE, DOD, and State each maintain lists of radiation 
detection equipment provided by their programs, they do not regularly 
share such information, and no comprehensive list of all equipment 
provided by U.S. programs exists. For example, according to information 
we received from program managers at DOE, DOD, and State, more than 
7,000 pieces of handheld radiation detection equipment had been 
provided to 36 foreign countries through the end of fiscal year 2005. 
Because much of this equipment was provided to the same countries by 
multiple agencies and programs, it is difficult to determine the degree 
to which duplication of effort has occurred. Without a coordinated 
master list of all U.S.-funded equipment, program managers at DOE, DOD, 
and State cannot accurately assess if equipment is operational and 
being used as intended, determine the equipment needs of countries 
where they plan to provide assistance, or detect whether an agency has 
unknowingly supplied duplicative equipment. 

DHS Has Made Progress in Deploying Radiation Detection Equipment at 
U.S. Ports of Entry, but Concerns Remain: 

Through December 2005, DHS had installed about 670 radiation portal 
monitors nationwide--about 22 percent of the portal monitors DHS plans 
to deploy--at international mail and express courier facilities, land 
border crossings, and seaports in the United States. DHS has completed 
portal monitor deployments at international mail and express courier 
facilities and the first phase of northern border sites--57 and 217 
portal monitors, respectively. In addition, by December 2005, DHS had 
deployed 143 of 495 portal monitors at seaports and 244 of 360 at 
southern border sites.[Footnote 4] As of February 2006, CBP estimated 
that, with these deployments, it has the ability to screen about 62 
percent of all containerized shipments entering the United States (but 
only 32 percent of all containerized seaborne shipments) and roughly 77 
percent of all private vehicles. DHS plans to deploy 3,034 portal 
monitors by September 2009 at a cost of $1.3 billion. However, the 
final costs and deployment schedule are highly uncertain because of 
delays in releasing appropriated funds to contractors, difficulties in 
negotiating with seaport operators, and uncertainties in the type and 
cost of radiation detection equipment DHS plans to deploy. Further, to 
meet this goal, DHS would have to deploy about 52 portal monitors a 
month for the next 4 years--a rate that far exceeds the 2005 rate of 
about 22 per month. 

In particular, several factors have contributed to the delay in the 
deployment schedule. First, DHS provides the Congress with information 
on portal monitor acquisitions and deployments before releasing any 
funds. However, DHS's cumbersome review process has consistently caused 
delays in providing such information to the Congress. For example, 
according to the House Appropriations Committee report on DHS's fiscal 
year 2005 budget, CBP should provide the Congress with an acquisition 
and deployment plan for the portal monitor program prior to funding its 
contractors. This plan took many months to finalize, mostly because it 
required multiple approvals within DHS and the Office of Management and 
Budget prior to being submitted to the Congress. The lengthy review 
process delayed the release of funds and, in some cases, disrupted and 
delayed deployment. 

Second, difficult negotiations with seaport operators about placement 
of portal monitors and screening of railcars have delayed deployments 
at U.S. seaports. Many seaport operators are concerned that radiation 
detection equipment may inhibit the flow of commerce through their 
ports. In addition, seaports are much larger than land border 
crossings, consist of multiple terminals, and may have multiple exits, 
which may require a greater number of portal monitors. Further, 
devising an effective way to conduct secondary inspections of rail 
traffic as it departs seaports without disrupting commerce has delayed 
deployments. This problem may worsen because the Department of 
Transportation has forecast that the use of rail transit out of 
seaports will probably increase in the near future. 

Finally, DHS's $1.3 billion estimate for the project is highly 
uncertain, in part, because of uncertainties in the type and cost of 
radiation detection equipment that DHS plans to deploy. The estimate is 
based on DHS's plans for widespread deployment of advanced technology 
portal monitors, which are currently being developed. However, the 
prototypes of this equipment have not yet been shown to be more 
effective than the portal monitors now in use, and DHS officials say 
they will not purchase the advanced portal monitors unless they are 
proven to be clearly superior. Moreover, when advanced technology 
portal monitors become commercially available, experts estimate that 
they will cost between about $330,000 and $460,000 each, far more than 
the currently used portal monitors whose costs range from about $49,000 
to $60,000. Even if future test results indicate better detection 
capabilities, without a detailed comparison of the two technologies' 
capabilities it would not be clear that the dramatically higher cost 
for this new equipment would be worth the investment. 

We also identified potential issues with the procedures CBP inspectors 
use to perform secondary inspections that, if addressed, could 
strengthen the nation's defenses against nuclear smuggling. For 
example, CBP's procedures require only that officers locate, isolate, 
and identify radiological material. Typically, officers perform an 
external examination by scanning the sides of cargo containers with 
handheld radiation detection equipment during secondary inspections. 
CBP's guidance does not specifically require officers to open 
containers and inspect their interiors, even when their external 
examination cannot unambiguously resolve the alarm. However, under some 
circumstances, opening containers can improve security by increasing 
the chances that the source of radioactivity that originally set off 
the alarm will be correctly located and identified. The second 
potential issue with CBP's procedures involves NRC documentation. 
Individuals and organizations shipping radiological materials to the 
United States must generally acquire a NRC license, but according to 
NRC officials, the license does not have to accompany the shipment. 
Although inspectors examine such licenses when these shipments arrive 
at U.S. ports of entry, CBP officers are not required to verify that 
shippers of radiological material actually obtained required licenses 
and to authenticate licenses that accompany shipments. We found that 
CBP inspectors lack access to NRC license data that could be used to 
authenticate a license at the border. 

This concludes my prepared statement. I would be happy to respond to 
any questions that you or other Members of the Subcommittee may have. 

GAO Contact and Staff Acknowledgments: 

For further information about this testimony, please contact me at 
(202) 512-3841 or at aloisee@gao.gov. Contact points for our Offices of 
Congressional Relations and Public Affairs may be found on the last 
page of this statement. R. Stockton Butler, Nancy Crothers, Jim Shafer, 
and Eugene Wisnoski made key contributions to this statement. 

[End of section] 

Related GAO Products: 

Combating Nuclear Smuggling: DHS Has Made Progress in Deploying 
Radiation Detection Equipment at U.S. Ports of Entry, but Concerns 
Remain. GAO-06-389. Washington, D.C.: March 22, 2006. 

Combating Nuclear Smuggling: Corruption, Maintenance, and Coordination 
Problems Challenge U.S. Efforts to Provide Radiation Detection 
Equipment to Other Countries. GAO-06-311. Washington, D.C.: March 14, 
2006. 

Combating Nuclear Smuggling: Efforts to Deploy Radiation Detection 
Equipment in the United States and in Other Countries. GAO-05-840T. 
Washington, D.C.: June 21, 2005. 

Preventing Nuclear Smuggling: DOE Has Made Limited Progress in 
Installing Radiation Detection Equipment at Highest Priority Foreign 
Seaports. GAO-05-375. Washington, D.C.: March 31, 2005. 

Container Security: Current Efforts to Detect Nuclear Materials, New 
Initiatives, and Challenges. GAO-03-297T. Washington, D.C.: November 
18, 2002. 

Customs Service: Acquisition and Deployment of Radiation Detection 
Equipment. GAO-03-235T. Washington, D.C.: October 17, 2002. 

Nuclear Nonproliferation: U.S. Efforts to Combat Nuclear Smuggling. GAO-
02-989T Washington, D.C.: July 30, 2002. 

Nuclear Nonproliferation: U.S. Efforts to Help Other Countries Combat 
Nuclear Smuggling Need Strengthened Coordination and Planning. GAO-02-
426. Washington, D.C.: May 16, 2002. 

FOOTNOTES 

[1] See GAO, Combating Nuclear Smuggling: DHS Has Made Progress 
Deploying Radiation Detection Equipment at U.S. Ports of Entry, but 
Concerns Remain, GAO-06-389 (Washington, D.C.: Mar. 22, 2006) and 
Combating Nuclear Smuggling: Corruption, Maintenance, and Coordination 
Problems Challenge U.S. Efforts to Provide Radiation Detection 
Equipment to Other Countries, GAO-06-311 (Washington, D.C.: Mar. 14, 
2006). 

[2] In addition to the two reports being released today, in March 2005 
we reported on DOE's Megaports Initiative. For additional information, 
see GAO, Preventing Nuclear Smuggling: DOE Has Made Limited Progress in 
Installing Radiation Detection Equipment at Highest Priority Foreign 
Seaports, GAO-05-375 (Washington, D.C.: Mar. 31, 2005). Through the end 
of fiscal year 2005, DOE had spent about $101 million to complete 
installations at four ports in Greece, the Netherlands, Sri Lanka, and 
the Bahamas. DOE anticipates completing an additional port in Spain in 
April 2006. DOE has signed agreements to begin work at ports in seven 
other countries (China, Honduras, Israel, Oman, the Philippines, 
Thailand, and the United Arab Emirates). 

[3] See National Security Presidential Directive No. 43/Homeland 
Security Presidential Directive No. 14, Domestic Nuclear Detection 
(Apr. 15, 2005). 

[4] In addition, three portal monitors had been installed at the Nevada 
Test Site to analyze their detection capabilities, and four had been 
retrofitted at express mail facilities.