Aviation Security: Efforts to Measure Effectiveness and Address Challenges

Published by the Government Accountability Office on 2003-11-05.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                              United States General Accounting Office

GAO                           Testimony before the Committee on
                              Commerce, Science and Transportation,
                              U.S. Senate

For Release on Delivery
Expected at 9:30 a.m. EDT
Wednesday, November 5, 2003   AVIATION SECURITY
                              Efforts to Measure
                              Effectiveness and Address
                              Statement of Cathleen A. Berrick, Director
                              Homeland Security and Justice Issues


                                                 November 5, 2003

                                                 AVIATION SECURITY
                                                 Efforts to Measure Effectiveness and
Highlights of GAO-04-232T, a testimony to        Address Challenges
the Committee on Commerce, Science
and Technology, U.S. Senate

 It has been 2 years since the                   TSA has implemented numerous initiatives designed to enhance aviation
 attacks of September 11, 2001,                  security, but has collected limited information on the effectiveness of these
 exposed vulnerabilities in the                  initiatives in protecting commercial aircraft. Our recent work on passenger
 nation’s aviation system. Since                 screening found that little testing or other data exist that measures the
 then, billions of dollars have been             performance of screeners in detecting threat objects. However, TSA is taking
 spent on a wide range of initiatives
 designed to enhance the security of
                                                 steps to collect data on the effectiveness of its security initiatives, including
 commercial aviation. However,                   developing a 5-year performance plan detailing numerous performance
 vulnerabilities in aviation security            measures, as well as implementing several efforts to collect performance
 continue to exist. As a result,                 data on the effectiveness of passenger screening—such as fielding the
 questions have been raised                      Threat Image Projection System and increasing screener testing.
 regarding the effectiveness of
 established initiatives in protecting           Passenger Screening Checkpoint at U.S. Airport
 commercial aircraft from threat
 objects, and whether additional
 measures are needed to further
 enhance security. Accordingly,
 GAO was asked to describe the
 Transportation Security
 Administration’s (TSA) efforts to
 (1) measure the effectiveness of its
 aviation security initiatives,
 particularly its passenger screening
 program; (2) implement a risk
 management approach to prioritize
                                                 Source: FAA.
 efforts and focus resources; and (3)
 address key challenges to further
 enhance aviation security.                      TSA has developed a risk management approach to prioritize efforts, assess
                                                 threats, and focus resources related to its aviation security initiatives as we
What GAO Recommends                              previously recommended, but has not yet fully implemented this approach. A
                                                 risk management approach is a systematic process to analyze threats,
 In prior reports and testimonies,               vulnerabilities, and the criticality (or relative importance) of assets to better
 GAO has made numerous                           support key decisions. TSA is developing and implementing both a criticality
 recommendations to strengthen                   and a vulnerability assessment tool to provide a basis for risk-based
 aviation security and to improve                decision-making. TSA is currently using some components of these tools and
 the management of federal aviation              plans to fully implement its risk management approach by the summer 2004.
 security organizations. We also
 have ongoing reviews assessing                  TSA faces a number of programmatic and management challenges as it
 many of the issues addressed in                 continues to enhance aviation security. These include the implementation of
 this testimony and will issue                   the new computer-assisted passenger prescreening system, as well as
 separate reports on these areas at a            strengthening baggage screening, airport perimeter and access controls, air
 later date.
                                                 cargo, and general aviation security. TSA also must manage the costs
                                                 associated with aviation security and address human capital challenges,
                                                 such as sizing its workforce as efficiency is improved with security-
 www.gao.gov/cgi-bin/getrpt?-GAO-04-232T.        enhancing technologies—including the integration of explosive detection
                                                 systems into in-line baggage-handling systems. Further challenges in sizing
 To view the full product, including the scope   its workforce may be encountered if airports are granted permission to opt
 and methodology, click on the link above.
 For more information, contact Cathleen A.       out of using federal screeners.
 Berrick at (202) 512-8777 or
Mr. Chairman and Members of the Committee:

I appreciate the opportunity to participate in today’s hearing to discuss the
security of our nation’s aviation system. It has been more than 2 years
since the attacks of September 11, 2001, exposed vulnerabilities in
commercial aviation. Since then, billions of dollars have been spent and a
wide range of programs and initiatives have been implemented to enhance
aviation security. However, recent reviews and covert testing conducted
by GAO and Department of Homeland Security Office of Inspector
General, as well as media reports, revealed continuing weaknesses and
vulnerabilities in aviation security. For example, the recent incident
involving a college student who placed box cutters, clay resembling plastic
explosives, and bleach on commercial aircraft illustrated that aviation
security can still be compromised. As a result of these challenges, the
Transportation Security Administration (TSA), which is responsible for
ensuring the security of aviation, is faced with the daunting task of
determining how to allocate its limited resources to have the greatest
impact in addressing threats and enhancing security.

My testimony today focuses on three areas that are fundamental to TSA’s
success in allocating its resources and enhancing aviation security. These
areas are (1) the need to measure the effectiveness of TSA’s aviation
security initiatives that have already been implemented, particularly its
passenger screening program; (2) the need to implement a risk
management approach to prioritize efforts, assess threats, and focus
resources; and (3) the need to address key programmatic and management
challenges that must be overcome to further enhance aviation security.
This testimony is based on our prior work, reviews of TSA documentation,
and discussions with TSA officials.

In summary:

Although TSA has implemented numerous programs and initiatives to
enhance aviation security, it has collected limited information on the
effectiveness of these programs and initiatives. Our recent work on TSA’s
passenger screening program showed that although TSA has made
numerous enhancements in passenger screening, it has collected limited
information on how effective these enhancements have been in improving
screeners’ ability to detect threat objects. The Aviation and Transportation
Security Act (ATSA), which was enacted with the primary goal of
strengthening the security of the nation’s aviation system, requires that
TSA establish acceptable levels of performance for aviation security
initiatives and develop annual performance plans and reports to measure

Page 1                                                           GAO-04-232T
and document the effectiveness of those initiatives.1 Although TSA has
developed an annual performance plan and report as required by ATSA, to
date these tools have focused on TSA’s progress in meeting deadlines to
implement programs and initiatives mandated by ATSA, rather than on the
effectiveness of these programs and initiatives. TSA has recognized that its
data on the effectiveness of its aviation security initiatives are limited and
is taking steps to collect objective data to assess its performance, which is
to be incorporated in DHS’s 5-year performance plan.

TSA has developed a risk management approach to prioritize efforts,
assess threats, and focus resources related to its aviation security
initiatives as recommended by GAO, but has not yet fully implemented this
approach. TSA’s aviation security efforts are varied and vast, and its
resources are fixed. As a result, a risk management approach is needed to
better support key decisions, linking resources with prioritized efforts.2
TSA has not yet fully implemented its risk management tools because until
recently its resources and efforts were largely focused on meeting the
aviation security mandates included in ATSA. TSA has acknowledged the
need for a risk management approach and expects to complete the
development and automation of its risk management tools by September

TSA faces a number of programmatic and management challenges as it
continues to address threats to our nation’s aviation system. These
challenges include implementing various aviation security programs, such
as the Computer-Assisted Passenger Prescreening System3—CAPPS II—
and addressing broader security concerns related to the security of air
cargo and general aviation.4 TSA also faces challenges in managing the
costs of aviation security and in strategically managing its workforce of
about 60,000 people, most of whom are deployed at airports to detect
weapons and explosives. TSA has been addressing these and other

    P.L. 107-71.
 A risk management approach is a systematic process to analyze threats, vulnerabilities,
and the criticality (or relative importance) of assets to better support key decisions by
linking resources with prioritized efforts.
 CAPPS II is a system intended to perform a risk assessment of all airline passengers to
identify those requiring additional security attention.
    General aviation consists of all civil aircraft and excludes commercial and military aircraft.

Page 2                                                                             GAO-04-232T
               challenges through a variety of efforts. We have work in progress that is
               examining TSA’s efforts in addressing many of these challenges.

               Ensuring the security of our nation’s commercial aviation system has been
Background 	   a long-standing concern. As demonstrated by the 1988 bombing of a U.S.
               airliner over Lockerbie, Scotland, and the 1995 plot to blow up as many as
               12 U.S. aircraft in the Pacific region discovered by Philippine authorities,
               U.S. aircraft have long been a target for terrorist attacks. Many efforts
               have been made to improve aviation security, but as we and others have
               documented in numerous reports and studies, weaknesses in the system
               continue to exist. It was these weaknesses that terrorist exploited to
               hijack four commercial aircraft in September 2001, with tragic results.

               On November 19, 2001, the President signed into law the Aviation and
               Transportation Security Act, with the primary goal of strengthening the
               security of the nation’s aviation system. ATSA created TSA as an agency
               within the Department of Transportation with responsibility for securing
               all modes of transportation, including aviation. ATSA mandated specific
               improvements to aviation security and established deadlines for
               completing many of them. TSA’s main focus during its first year of
               operation was on meeting these ambitious deadlines, particularly
               federalizing the screener workforce at commercial airports nationwide by
               November 19, 2002, while at the same time establishing a new federal
               organization from the ground up. The Homeland Security Act, signed into
               law on November 25, 2002, transferred TSA from the Department of
               Transportation to the new Department of Homeland Security.5

               Virtually all aviation security responsibilities now reside with TSA,
               including the screening of air passengers and baggage, a function that had
               previously been the responsibility of air carriers. TSA is also responsible
               for ensuring the security of air cargo and overseeing security measures at
               airports to limit access to restricted areas, secure airport perimeters, and
               conduct background checks for airport personnel with access to secure
               areas, among other responsibilities.

                   P.L. No. 107-296.

               Page 3                                                           GAO-04-232T
                        TSA has implemented numerous initiatives designed to enhance aviation
Limited Information     security but has collected little information on the effectiveness of these
Exists on the           initiatives. ATSA requires that TSA establish acceptable levels of
                        performance and develop annual performance plans and reports to
Effectiveness of        measure and document the effectiveness of its security initiatives.6
Aviation Security       Although TSA has developed these performance tools, as required by
                        ATSA, it currently focuses on progress toward meeting ATSA deadlines,
Initiatives             rather than on the effectiveness of its programs and initiatives. However,
                        TSA is taking steps to collect objective data to assess its performance.

Evaluation of Program   TSA currently has limited information on the effectiveness of its aviation
Effectiveness           security initiatives. As we reported in September 2003,7 the primary source
                        of information collected on screeners’ ability to detect threat objects is the
                        covert testing conducted by TSA’s Office of Internal Affairs and Program
                        Review. However, TSA does not consider the results of these covert tests
                        to be a measure of performance but rather a “snapshot” of a screener’s
                        ability to detect threat objects at a particular point in time, and as a
                        system-wide performance indicator. At the time we issued our report, the
                        Office of Internal Affairs and Program Review had conducted 733 covert
                        tests of passenger screeners at 92 airports. Therefore, only about 1 percent
                        of TSA’s nearly 50,000 screeners had been subject to a covert test.

                        In addition to conducting covert tests at screening checkpoints, TSA
                        conducts tests to determine whether the current Computer-Assisted
                        Passenger Screening System is working as designed, threat objects are
                        detected during the screening of checked baggage, and access to restricted
                        areas of the airport is limited only to authorized personnel.8 While the

                         An annual performance plan is to provide the direct linkage between the strategic goals
                        outlined in the agencies’ strategic plan and the day-to-day activities of managers and staff.
                        Additionally, annual performance plans are to include performance goals for an agency’s
                        program activities as listed in the budget, a summary of the necessary resources that will
                        be used to measure performance, and a discussion of how the performance information
                        will be verified. An annual performance report is to review and discuss an agency’s
                        performance compared with the performance goals it established in its annual performance
                         U.S. General Accounting Office, Airport Passenger Screening: Preliminary Observations
                        on Progress Made and Challenges Remaining, GAO-03-1173 (Washington, D.C.: Sept. 24,
                         The original Computer Assisted Passenger Screening System is a stand-alone application
                        residing in an air carrier’s reservation system that analyzes certain behavioral patterns to
                        score and calculate each passenger’s need for additional screening.

                        Page 4                                                                         GAO-04-232T
Office of Internal Affairs has conducted about 2,000 access tests, it has
conducted only 168 Computer-Assisted Passenger Screening System and
checked baggage tests. Based on an anticipated increase in staff from
about 100 in fiscal year 2003 to 200 in fiscal year 2004, the Office of
Internal Affairs and Program Review plans to conduct twice as many
covert tests next year.9

Another key source of data on screener performance in detecting threat
objects is the Threat Image Projection (TIP) system, which places images
of threat objects on the X-ray screen during actual operations and records
whether screeners identify the threat object.10 The Federal Aviation
Administration began deploying TIP in late 1999 to continuously measure
screener performance and to train screeners in becoming more adept at
detecting hard-to-spot threat objects. However, TIP was shut down
immediately following the September 11 terrorist attacks because of
concerns that it would result in screening delays and panic, as screeners
might think that they were actually viewing a threat object. Although TSA
officials recognized that TIP is a key tool in measuring, maintaining, and
enhancing screener performance, they only recently began reactivating
TIP on wide-scale basis because of competing priorities, a lack of training,
and a lack of resources needed to deploy TIP activation teams. Once TIP is
fully deployed and operational at every checkpoint at all airports, as it is
expected to be in April 2004, TSA headquarters and federal security
directors11 will have the capability to analyze this performance data in a
number of ways, including by individual screeners, checkpoints, terminals,
and airports.

When fully deployed, the annual screener recertification test results will
provide another source of data on screener performance. ATSA requires

 Currently, the Office of Internal Affairs and Program Review has 7 team leaders assigned
full-time to covert testing and plans to have a total of 14 full-time team leaders by the end
of December 2003. The team leaders draw from the remaining staff within the office, such
as auditors and analysts, to perform the testing. According to TSA officials, overall, 95
percent of the staff in the Office of Internal Affairs and Program Review participate in
covert testing as a collateral responsibility.
  TIP is designed to test screeners’ detection capabilities by projecting threat images,
including guns and explosives, into bags as they are screened. Screeners are responsible
for positively identifying the threat image and calling for the bag to be searched. Once
prompted, TIP identifies to the screener whether the threat is real and then records the
screener’s performance in a database that could be analyzed for performance trends.
     Federal security directors oversee security at each of the nation’s commercial airports.

Page 5                                                                           GAO-04-232T
that TSA collect performance information on each screener through
conducting an annual proficiency review to ensure he or she continues to
meet all qualifications and standards required to perform the screening
function. Although TSA began deploying federal screeners to airports in
April 2002, TSA only recently began implementing the annual
recertification program and does not expect to complete testing at all
airports until March 2004. The recertification testing is comprised of three
components: (1) image recognition; (2) knowledge of standard operating
procedures; and (3) practical demonstration of skills, to be administered
by a contractor. TSA officials consider about 28,000 screeners as having
already completed the first two components because they successfully
passed competency tests TSA administered at many airports as part of a
screener workforce reduction effort. However, these competency tests did
not include the third component of TSA’s planned annual screener
recertification program—the practical demonstration of skills. TSA
officials awarded a contract for this component of the annual proficiency
reviews in September 2003.

TSA’s Performance Management Information System for passenger and
baggage screening operations is designed to collect performance data, but
it currently contains little information on screener performance in
detecting threat objects. The Performance Management Information
System collects a wide variety of metrics on workload, staffing, and
equipment and is used to identify some performance indicators, such as
the level of absenteeism, the average time for equipment repairs, and the
status of TSA’s efforts to meet goals for 100 percent electronic baggage
screening.12 However, the system does not contain any performance
metrics related to the effectiveness of passenger screeners. TSA is
planning to integrate performance information from various systems into
the Performance Management Information System to assist the agency in
making strategic decisions. TSA further plans to continually enhance the
system as it learns what data are needed to best manage the agency. In
addition to making improvements to the Performance Management
Information System, TSA is currently developing performance indexes for
both individual screeners and the screening system as a whole. The
screener performance index will be based on data such as the results of
performance evaluations and recertification tests, and the index for the
screening system will be based on information such as covert test results

 The Performance Management Information System also contains metrics on human
resources, sizing, checkpoint, feedback, and incidents.

Page 6                                                                GAO-04-232T
and screener effectiveness measures. TSA has not yet fully established its
methodology for developing the indexes, but it expects to have the
indexes developed by the end of fiscal year 2004.

In conjunction with measuring the performance of its passenger screening
operations, TSA must also assess the performance of the five pilot airports
that are currently using contract screeners to determine the feasibility of
using private screening companies instead of federal screeners.13 Although
ATSA allows airports to apply to opt out of using federal screeners
beginning in November 2004, TSA has not yet determined how to evaluate
and measure the performance of the pilot program. In early October 2003,
TSA awarded a contract to BearingPoint, Inc., to compare the
performance of pilot screening with federal screening, including the
overall strengths and weaknesses of both systems, and determine the
reasons for any differences.14 The evaluation is scheduled to be completed
by March 31, 2004.15 TSA has acknowledged that designing an effective
evaluation of the screeners at the pilot airports will be challenging because
key operational areas, including training, assessment, compensation, and
equipment, have to a large extent been held constant across all airports,
and therefore are not within the control of the private screening
companies.16 In its request for proposal for the pilot airport evaluation,
TSA identified several data sources for the evaluation, including the
Performance Management Information System and the Office of Internal
Affairs and Program Review’s covert testing of passenger screeners.
However, as we recently reported, data from both of these systems in
measuring the effectiveness of screening operations is limited. As a result,
it will be a challenge for TSA to effectively compare the performance of

  ATSA requires TSA to implement a pilot program using contract screeners at five
commercial airports—one in each of the five airport categories. The purpose of the pilot
program is to determine the feasibility of using private screening companies rather than
federal screeners.
 According to the August 8, 2003, request for quotation for the evaluation of the contract
screening pilot program, BearingPoint must include informed performance comparisons,
both quantitative and qualitative, of private versus federal screeners overall and within
different sizes and categories of airports.
 Based on the time frames established in the request for quotation, BearingPoint, Inc. is
required to develop a project plan and evaluation model no later than December 12, 2003.
  TSA’s request for proposal for the pilot program evaluation notes that there are a
significant number of operational and managerial elements at the discretion of the private
screening companies that should be considered in the evaluation, including supervision,
overhead, materials, recruiting, and scheduling.

Page 7                                                                        GAO-04-232T
                         the contract pilot airports with the performance of airports using federal

TSA Is Developing        TSA has recognized the need to strengthen the assessment of its
Performance Evaluation   performance, and has initiated efforts to develop and implement strategic
Tools                    and performance plans to clarify goals, establish performance measures,
                         and measure the performance of its security initiatives. Strategic plans are
                         the starting point for an agency’s planning and performance measurement
                         efforts. Strategic plans include a comprehensive mission statement based
                         on the agency’s statutory requirements, a set of outcome-related strategic
                         goals, and a description of how the agency intends to achieve these goals.
                         The Government Performance and Results Act (GPRA)17 establishes a
                         framework for strategic plans that requires agencies to

                         •	   clearly establish results-oriented performance goals in strategic and
                              annual performance plans for which they will be held accountable,

                         •    measure progress toward achieving those goals,

                         •	   determine the strategies and resources to effectively accomplish the

                         •	   use performance information to make programmatic decisions
                              necessary to improve performance, and

                         •    formally communicate results in performance reports.

                         Although the Department of Homeland Security plans to issue one
                         strategic plan for the Department, it plans to incorporate strategic
                         planning efforts from each of its component agencies. TSA recently
                         completed a draft of its input into the Department of Homeland Security’s
                         strategic plan. TSA officials stated that the draft is designed to ensure their

                           The Government Performance and Results Act of 1993 shifts the focus of government
                         operations from process to results by establishing a foundation for examining agency
                         mission, performance goals and objectives, and results. Under the Act, agencies are to
                         prepare 5-year strategic plans that set the general direction for their efforts, and annual
                         performance plans that establish connections between the long-term strategic goals
                         outlined in the strategic plans and the day-to-day activities of managers and staff. Finally,
                         the Act requires that each agency report annually on the extent to which it is meeting its
                         annual performance goals and the actions needed to achieve or modify those goals that
                         have not been met.

                         Page 8                                                                          GAO-04-232T
security initiatives are aligned with the agency’s goals and objectives, and
that these initiatives represent the most efficient use of their resources.
TSA officials submitted the draft plan to stakeholders in September 2003
for their review and comment. The Department of Homeland Security
plans to issue its strategic plan by the end of the year.18

In addition to developing a strategic plan, TSA is developing a
performance plan to help it evaluate the current effectiveness and levels of
improvement in its programs, based on established performance
measures. TSA submitted to the Congress a short-term performance plan
in May 2003, as required by ATSA, that included performance goals and
objectives. The plan also included an initial set of 32 performance
measures, including the percentage of bags screened by explosive
detection systems and the percentage of screeners in compliance with
training standards. However, these measures were primarily output-based
(measuring whether specific activities were achieved) and did not
measure the effectiveness of TSA’s security initiatives. TSA officials
acknowledge that the goals and measures included in the report were
narrowly focused, and that in moving forward additional performance-
based measures are needed.

In addition to developing a short-term performance plan, ATSA also
requires that TSA develop a 5-year performance plan and annual
performance report, including an evaluation of the extent to which its
goals and objectives were met. TSA is currently developing performance
goals and measures as part of its annual planning process and will collect
baseline data throughout fiscal year 2004 to serve as a foundation for its
performance targets. TSA also plans to increase its focus on measuring the
effectiveness of various aspects of the aviation security system in its 5-
year performance plan. According to TSA’s current draft strategic plan,
which outlines its overall goals and strategies for fiscal years 2003 through

  TSA is also developing a National Transportation Security System Plan, a draft of which is
currently under review within TSA. TSA plans to promote consistent and mutually
supporting intermodal planning in cooperation with administrators and in collaboration
with key stakeholders from all modes of transportation. TSA designed the plan for use by
agencies, owners, and operators of the transportation system to guide them as they develop
their individual security plans. Accordingly, the National Transportation System Security
Plan will include national modal plans to capture and tailor transportation security
requirements for each mode of transportation, with particular emphasis on intermodal
connections. Each modal plan will focus on security for people (workforce and
passengers), cargo (baggage and shipments), infrastructure (vehicles, facilities, and right of
ways), and response preparedness.

Page 9                                                                         GAO-04-232T
2008, its efforts to measure the effectiveness of the aviation security
system will include

•	   random and scheduled reviews of the efficiency and effectiveness of
     security processes;

•	   oversight of compliance with security standards and approved
     programs through a combination of inspections, testing, interviews,
     and record reviews—to include TIP;

•	   measurement of performance against standards to ensure expected
     standards are met and to drive process improvements; and

•	   collection and communication of performance data using a state-of-the-
     art data collection and reporting system.

In our January 2003 report on TSA’s actions and plans to build a results-
oriented culture, we recommended next steps that TSA should take to
strengthen its strategic planning efforts.19 These steps include establishing
security performance goals and measures for all modes of transportation
that involves stakeholders, and applying practices that have been shown to
provide useful information in agency performance plans. We also
identified practices that TSA can apply to ensure the usefulness of its
required 5-year performance plan to TSA managers, the Congress, and
other decision makers or interested parties. Table 1 outlines the practices
we identified for TSA.

  U.S. General Accounting Office, Transportation Security Administration: Actions and
Plans to Build a Results-Oriented Culture, GAO-03-190 (Washington, D.C.: Jan. 17, 2003).

Page 10                                                                    GAO-04-232T
Table 1: Summary of Opportunities to Help Ensure Useful Annual Plans and Applied Practices

 Opportunities to help ensure useful annual plans    Applied practices
 Articulate a results orientation                    1.   Create a set of performance goals and measures that addresses
                                                          important dimensions of program performance and balances competing
                                                     2.   Use intermediate goals and measures to show progress or contribution
                                                          to intended results.
                                                     3.   Include explanatory information on the goals and measures.
                                                     4.   Develop performance goals to address mission-critical management
                                                     5.   Show baseline and trend data for past performance.
                                                     6.   Identify projected target levels of performance for multiyear goals.
                                                     7.   Link the goals of component organizations to departmental strategic
 Coordinate cross-cutting programs                   8.   Identify programs that contribute to the same or similar results.
                                                     9.   Set complementary performance goals to show how differing program
                                                          strategies are mutually reinforcing and establish common or
                                                          complementary performance measures, as appropriate.
                                                     10. Describe—briefly or refer to a separate document—planned
                                                         coordination strategies.
 Show how strategies will be used to achieve goals   11. Link strategies and programs to specific performance goals and
                                                         describe how they will contribute to the achievement of those goals.
                                                     12. Describe strategies to leverage or mitigate the effects of external factors
                                                         on the accomplishment of performance goals.
                                                     13. Discuss strategies to resolve mission-critical management problems.
                                                     14. Discuss—briefly or refer to a separate plan—plans to ensure that
                                                         mission-critical processes and information systems function properly
                                                         and are secure.
 Show performance consequences of budget and other   15. Show how budgetary resources relate to the achievement of
 resource decisions                                      performance goals.
                                                     16. Discuss—briefly and refer to the agency capital plan—how proposed
                                                         capital assets (specifically information technology investments) will
                                                         contribute to achieving performance goals.
                                                     17. Discuss—briefly or refer to a separate plan—how the agency will use its
                                                         human capital.
 Build the capacity to gather and use performance    18. Identify internal and external sources of data.
 information                                         19. Describe efforts to verify and validate performance data.
                                                     20. Identify actions to compensate for unavailable or low-quality data.
                                                     21. Discuss implications of data limitations for assessing performance.
Source: GAO.

                                           Page 11                                                                    GAO-04-232T
                     TSA agreed with our recommendation and plans to incorporate these
                     principles into the data it provides DHS for the department’s 5-year
                     performance plan and annual performance report. DHS plans to complete
                     its 5-year performance plan and annual performance report by February
                     2004, as required by GPRA.

                     The Congress has also recognized the need for TSA to collect performance
                     data and, as part of the Federal Aviation Administration’s (FAA)
                     reauthorization act—Vision 100: Century of Aviation Reauthorization
                     Act—is currently considering a provision that would require the Secretary
                     of the Department of Homeland Security to conduct a study of the
                     effectiveness of the aviation security system.

                     As TSA moves forward in addressing aviation security concerns, it needs
Risk Management      adequate tools to ensure that its efforts are appropriately focused,
Approach Needed To   strategically sound, and achieving expected results. Because of limited
                     funding, TSA needs to set priorities so that its resources can be focused
Focus Security       and directed to those aviation security enhancements most in need of
Efforts              implementation. In recent years, we have consistently advocated the use
                     of a risk management approach to respond to various national security
                     and terrorism challenges, and have recommended that TSA apply this
                     approach to strengthen security in aviation as well as in other modes of
                     transportation.20 TSA agreed with our recommendation and is adopting a
                     risk management approach.

                     Risk management is a systematic and analytical process to consider the
                     likelihood that a threat will endanger an asset, an individual, or a function
                     and to identify actions to reduce the risk and mitigate the consequences of
                     an attack. Risk management principles acknowledge that while risk
                     cannot be eliminated, enhancing protection from existing or potential
                     threats can help reduce it. Accordingly, a risk management approach is a
                     systematic process to analyze threats, vulnerabilities, and the criticality
                     (or relative importance) of assets to better support key decisions. The
                     purpose of this approach is to link resources with efforts that are of the
                     highest priority. Figure 1 describes the risk management approach.

                      U.S. General Accounting Office, Homeland Security: A Risk Management Approach Can
                     Guide Preparedness Efforts, GAO-02-208T (Washington, D.C.: Oct. 31, 2001); and

                     Page 12                                                              GAO-04-232T
Figure 1: Elements of a risk management approach

A threat assessment identifies and evaluates potential threats on the basis
of factors such as capabilities, intentions, and past activities. This
assessment represents a systematic approach to identifying potential
threats before they materialize, and is based on threat information
gathered from both the intelligence and law enforcement communities.
However, even if updated often, a threat assessment might not adequately
capture some emerging threats. The risk management approach, therefore,
uses vulnerability and criticality assessments as additional input to the
decision-making process.

A vulnerability assessment identifies weaknesses that may be exploited
by identified threats and suggests options to address those weaknesses. In
general, a vulnerability assessment is conducted by a team of experts
skilled in such areas as engineering, intelligence, security, information
systems, finance, and other disciplines.

A criticality assessment evaluates and prioritizes assets and functions in
terms of specific criteria, such as their importance to public safety and the
economy. The assessment provides a basis for identifying which structures
or processes are relatively more important to protect from attack. As such,
it helps managers to determine operational requirements and target
resources at their highest priorities, while reducing the potential for
targeting resources at lower priorities.

Source: GAO.

Page 13                                                         GAO-04-232T
Figure 2 illustrates how the risk management approach can guide decision
making and shows that the highest risks and priorities emerge where the
three elements of risk management overlap.

Figure 2: A Risk Management Approach

For example, an airport that is determined to be a critical asset, vulnerable
to attack, and a likely target would be at most risk and therefore would be
a higher priority for funding compared with an airport that is only
vulnerable to attack. In this vein, aviation security measures shown to
reduce the risk to the most critical assets would provide the greatest
protection for the cost.

Over the past several years, we have concluded that comprehensive threat,
vulnerability, and criticality assessments are key in better preparing
against terrorist attacks, and we have recommended that TSA apply this
risk management approach to strengthen security in aviation. TSA agreed
with our recommendation and is adopting a risk management approach in
an attempt to enhance security across all modes of transportation.
According to TSA officials, once established, risk management principles
will drive all decisions—from standard setting to funding priorities to

Page 14                                                          GAO-04-232T
                                      staffing. TSA has not yet fully implemented its risk management approach,
                                      but it has taken steps in this direction. Specifically, TSA’s Office of Threat
                                      Assessment and Risk Management is developing four assessment tools
                                      that will help assess threats, criticality, and vulnerabilities. Figure 3
                                      illustrates TSA’s threat assessment and risk management approach.

Figure 3: TSA’s Risk Management Approach and Tools

Source: TSA.

                                      The first tool, which will assess criticality, will determine a criticality
                                      score for a facility or transportation asset by incorporating factors such as
                                      the number of fatalities that could occur during an attack and the
                                      economic and sociopolitical importance of the facility or asset. This score
                                      will enable TSA, in conjunction with transportation stakeholders, to rank
                                      facilities and assets within each mode and thus focus resources on those

                                      Page 15                                                           GAO-04-232T
that are deemed most important. TSA is working with another Department
of Homeland Security office—the Information and Analysis Protection
Directorate—to ensure that the criticality tool will be consistent with the
Department’s overall approach for managing critical infrastructure.

A second tool—the Transportation Risk Assessment and Vulnerability
Tool (TRAVEL)—will assess threats and analyze vulnerabilities at those
transportation assets TSA determines to be nationally critical. The tool
will be used in a TSA-led and facilitated assessment that will be conducted
on the site of the transportation asset.21 Specifically, the tool will assess an
asset’s baseline security system and that system’s effectiveness in
detecting, deterring, and preventing various threat scenarios, and it will
produce a relative risk score for potential attacks against a transportation
asset or facility. In addition, TRAVEL will include a cost-benefit
component that compares the cost of implementing a given
countermeasure with the reduction in relative risk to that countermeasure.
TSA is working with economists to develop the cost-benefit component of
this model and with the TSA Intelligence Service to develop relevant threat
scenarios for transportation assets and facilities. According to TSA
officials, a standard threat and vulnerability assessment tool is needed so
that TSA can identify and compare threats and vulnerabilities across
transportation modes. If different methodologies are used in assessing the
threats and vulnerabilities, comparisons could be problematic. However, a
standard assessment tool would ensure consistent methodology.

A third tool—the Transportation Self-Assessment Risk Module (TSARM)—
will be used to assess and analyze vulnerabilities for assets that the
criticality assessment determines to be less critical. The self-assessment
tool included in TSARM will guide a user through a series of security-
related questions in order to develop a comprehensive security baseline of
a transportation entity and will provide mitigating strategies for when the
threat level increases. For example, as the threat level increases from
yellow to orange, as determined by the Department of Homeland Security,
the assessment tool might advise an entity to take increased security
measures, such as erecting barriers and closing selected entrances. TSA

   A vulnerability assessment using the TRAVEL tool requires the participation of TSA
subject matter experts along with representatives from the transportation asset. Operations
management, facilities management, security personnel, and law enforcement agents are
examples of the individuals involved in analyzing each threat scenario and corresponding
security system.

Page 16                                                                     GAO-04-232T
                       had deployed one self-assessment module in support of targeted maritime
                       vessel and facility categories.22

                       The fourth risk management tool that TSA is currently developing is the
                       TSA Vulnerability Assessment Management System (TVAMS). TVAMS is
                       TSA’s intended repository of criticality, threat, and vulnerability
                       assessment data. TVAMS will maintain the results of all vulnerability
                       assessments across all modes of transportation. This repository will
                       provide TSA with data analysis and reporting capabilities. TVAMS is
                       currently in the conceptual stage and requirements are still being gathered.

                       TSA is now using components of these risk management tools and is
                       automating others so that the components can be used remotely by
                       stakeholders, such as small airports, to assess their risks. For example,
                       according to TSA officials, TSA has conducted assessments at 9 of 443
                       commercial airports using components of its TRAVEL tool. Three of these
                       assessments were conducted at category X airports (the largest and
                       busiest airports), and the remaining 6 assessments were conducted at
                       airports in lower categories. TSA plans to conduct approximately 100
                       additional assessments of commercial airports in 2004 using TRAVEL and
                       plans to begin compiling data on security vulnerability trends in 2005.
                       Additionally, TSA plans to fully implement and automate its risk
                       management approach by September 2004.

                       In addition to collecting performance data and implementing a risk
TSA Faces Additional   management approach, TSA faces a number of other programmatic and
Programmatic And       management challenges in strengthening aviation security. These
                       challenges include implementing the new Computer-Assisted Passenger
Management             Prescreening System; strengthening baggage screening, airport perimeter
Challenges             and access controls, air cargo, and general aviation security; managing the
                       costs of aviation security initiatives; and managing human capital. TSA has
                       been addressing these challenges through a variety of efforts. We have
                       work in progress that is examining TSA’s efforts in most of these areas,
                       and we will be reporting on TSA’s progress in the future.

                         TSA’s Maritime Self-Assessment Risk Module was developed in response to requirements
                       outlined in the Maritime Transportation Security Act of 2002. The Act mandates that any
                       facility or vessel that the Secretary believes might be involved in a transportation security
                       incident will be subject to a vulnerability assessment and must submit a security plan to the
                       United States Coast Guard by January 1, 2004.

                       Page 17                                                                       GAO-04-232T
Computer-Assisted        ATSA authorized TSA to develop a new Computer-Assisted Passenger
Passenger Prescreening   Prescreening System, or CAPPS II. This system is intended to replace the
System (CAPPS II)        current Computer-Assisted Passenger Screening program, which was
                         developed in the mid-1990s by the Federal Aviation Administration to
                         enable air carriers to identify passengers requiring additional security
                         attention. The current system is maintained as a part of the airlines’
                         reservation systems and, operating under federal guidelines, uses a
                         number of behavioral characteristics to select passengers for additional

                         In the wake of the September 11, 2001, terrorist attacks, a number of
                         weaknesses in the current prescreening program were exposed. For
                         example, although the characteristics used to identify passengers for
                         additional screening are classified, several have become public knowledge
                         through the press or on the Internet. Although enhancements have been
                         made to address some of these weaknesses, the behavioral traits used in
                         the system may not reflect current intelligence information. It is also
                         difficult to quickly modify the system to respond to real-time changes in
                         threats. Additionally, because the current system operates independently
                         within each air carrier reservation system, changes to each air carrier’s
                         system to modify the prescreening system can be costly and time-

                         In contrast, CAPPS II is planned to be a government-run program that will
                         provide real–time risk assessment for all airline passengers. Unlike the
                         current system, TSA is designing CAPPS II to identify and compare
                         personal information with commercially available data to confirm a
                         passenger’s identity. The system will then run the identifying information
                         against government databases and generate a “risk” score for the
                         passenger. The risk score will determine the level of screening that the
                         passenger will undergo before boarding. TSA currently estimates that
                         initial implementation of CAPPS II will occur during the fall of 2004, with
                         full implementation expected by the fall of 2005.

                         TSA faces a number of challenges that could impede their ability to
                         implement CAPPS II. Among the most significant are the following:

                         •	   concerns about travelers’ privacy rights and the safeguards established
                              to protect passenger data;

                         •	   the accuracy of the databases being used by the CAPPS II system and
                              whether inaccuracies could generate a high number of false positives

                         Page 18                                                         GAO-04-232T
                       and erroneously prevent or delay passengers from boarding their

                  •    the length of time that data will be retained by TSA;

                  •	   the availability of a redress process through which passengers could
                       get erroneous information corrected;

                  •	   concerns that identify theft, in which someone steals relevant data and
                       impersonates another individual to obtain that person’s low risk score,
                       may not be detected and thereby negate the security benefits of the
                       system; and

                  •	   obtaining the international cooperation needed for CAPPS II to be fully
                       effective, as some countries consider the passenger information
                       required by CAPPS II as a potential violation of their privacy laws.

                  We are currently assessing these and other challenges in the development
                  and implementation of the CAPPS II system and expect to issue a final
                  report on our work in early 2004.

Checked Baggage   Checked baggage represents a significant security concern, as explosive
Screening         devices in baggage can, and have, been placed in aircraft holds. ATSA
                  required screening of all checked baggage on commercial aircraft by
                  December 31, 2002, using explosive detection systems to electronically
                  scan baggage for explosives. According to TSA, electronic screening can
                  be accomplished by bulk explosives detection systems (EDS)23 or
                  Explosives Trace Detection (ETD) systems.24 However, TSA faced
                  challenges in meeting the mandated implementation date. First, the
                  production capabilities of EDS manufacturers were insufficient to produce
                  the number of units needed. Additionally, according to TSA, it was not
                  possible to undertake all of the airport modifications necessary to
                  accommodate the EDS equipment in each airport’s baggage handling area.
                  In order to ensure that all checked baggage is screened, TSA established a

                   Explosives detection systems use probing radiation to examine objects inside baggage
                  and identify the characteristic signatures of threat explosives. EDS equipment operates in
                  an automated mode.
                    Explosive trace detection works by detecting vapors and residues of explosives. Human
                  operators collect samples by rubbing bags with swabs, which are chemically analyzed to
                  identify any traces of explosive materials.

                  Page 19                                                                      GAO-04-232T
program that uses alternative measures, including explosives sniffing dogs,
positive passenger bag match,25 and physical hand searches at airports
where sufficient EDS or ETD technology is not available. TSA was granted
an extension for screening all checked baggage electronically, using
explosives detection systems, until December 31, 2003.

Although TSA has made progress in implementing EDS technology at
more airports, it has reported that it will not meet the revised mandate for
100 percent electronic screening of all checked baggage. Specifically, as of
October 2003, TSA reported that it will not meet the deadline for
electronic screening by December 31, 2003, at five airports. Airport
representatives with whom we spoke expressed concern that there has not
been enough time to produce, install, and integrate all of the systems
required to meet the deadline.

In addition to fielding the EDS systems at airports, difficulties exist in
integrating these systems into airport baggage handling systems. For those
airports that have installed EDS equipment, many have been located in
airport lobbies as stand-alone systems. The chief drawback of stand-alone
systems is that because of their size and weight there is a limit to the
number of units that can be placed in airport lobbies, and numerous
screeners are required to handle the checked bags because each bag must
be physically conveyed to the EDS machines and then moved back to the
conveyor system for transport to the baggage handling room in the air
terminal. Some airports are in the process of integrating the EDS
equipment in-line with the conveyor belts that transport baggage from the
ticket counter to the baggage handling area; however, the reconfiguring of
airports for in-line checked baggage screening can be extensive and
costly.26 TSA has reported that in-line EDS equipment installation costs
range from $1 million to $3 million per piece of equipment. In February
2003, we identified letters of intent27 as a funding option that has been

 Positive passenger bag match is an alternative method of screening checked baggage,
which requires that the passenger be on the same aircraft as the checked baggage.
 In-line screening involves incorporating EDS machines into airport baggage handling
systems to improve throughput of baggage and to streamline airport operations.
 A letter of intent represents a nonbinding commitment from an agency to provide
multiyear funding to an entity beyond the current authorization period. Thus, that letter
allows an airport to proceed with a project without waiting for future federal funds
because the airport and investors know that allowable costs are likely to be reimbursed.

Page 20                                                                       GAO-04-232T
                       successfully used to leverage private sources of funding.28 TSA has since
                       written letters of intent covering seven airports promising multiyear
                       financial support totaling over $770 million for in-line integration of EDS
                       equipment.29 Further, TSA officials have stated that they have identified 25
                       to 35 airports as candidates for further letters of intent pending
                       Congressional authorization of funding. We are examining TSA’s baggage
                       screening program, including its issuance of letters of intent, in an ongoing

Perimeter and Access   Prior to September 2001, work performed by GAO, and others, highlighted
Controls               the vulnerabilities in controls for limiting access to secure airport areas. In
                       one report, we noted that GAO special agents were able to use fictitious
                       law enforcement badges and credentials to gain access to secure areas,
                       bypass security checkpoints, and walk unescorted to aircraft departure
                       gates.30 The agents, who had been issued tickets and boarding passes,
                       could have carried weapons, explosives, or other dangerous objects onto
                       aircraft. Concerns over the adequacy of the vetting process for airport
                       workers who have unescorted access to secure airport areas have also
                       arisen, in part, as a result of federal agency airport security sweeps that
                       uncovered hundreds of instances in which airport workers lied about their
                       criminal history, or immigration status, or provided false or inaccurate
                       Social Security numbers on their application for security clearances to
                       obtain employment.

                       ATSA contains provisions to improve perimeter access security at the
                       nation’s airports and strengthen background checks for employees
                       working in secure airport areas, and TSA has made some progress in this
                       area. For example, federal mandates were issued to strengthen airport
                       perimeter security by limiting the number of airport access points, and

                        U.S. General Accounting Office, Airport Finance: Past Funding Levels May Not Be
                       Sufficient to Cover Airports’ Planned Capital Development, GAO-03-497T (Washington,
                       D.C.: Feb. 25, 2003).
                         The seven airports include Denver International Airport, Las Vegas McCarran
                       International Airport, Los Angeles International Airport, Ontario International Airport,
                       Seattle/Tacoma International Airport, Dallas/Fort Worth International Airport, and Boston
                       Logan International Airport. The purpose is to help defray the costs of installing permanent
                       explosive detection systems that are integrated with airports’ checked baggage conveyor
                        U.S. General Accounting Office, Security: Breaches at Federal Agencies and Airports,
                       GAO\T-OSI-00-10 (Washington, D.C.: May 25, 2000).

                       Page 21                                                                      GAO-04-232T
                       they require random screening of individuals, vehicles, and property
                       before entry at the remaining perimeter access points. Further, TSA made
                       criminal history checks mandatory for employees with access to secure or
                       sterile airport areas. To date, TSA has conducted approximately 1 million
                       of these checks. TSA also has plans to develop a pilot airport security
                       program and is reviewing security technologies in the areas of biometrics
                       access control identification systems (i.e., fingerprints or iris scans), anti-
                       piggybacking technologies (to prevent more than one employee from
                       entering a secure area at a time), and video monitoring systems for
                       perimeter security. TSA solicited commercial airport participation in the
                       program. It is currently reviewing information from interested airports and
                       plans to select 20 airports for the program.

                       Although progress has been made, challenges remain with perimeter
                       security and access controls at commercial airports. Specifically, ATSA
                       contains numerous requirements for strengthening perimeter security and
                       access controls, some of which contained deadlines, which TSA is
                       working to meet. In addition, a significant concern is the possibility of
                       terrorists using shoulder-fired portable missiles from locations near the
                       airport. We reported in June 2003 that airport operators have increased
                       their patrols of airport perimeters since September 2001, but industry
                       officials stated that they do not have enough resources to completely
                       protect against missile attacks.31 A number of technologies could be used
                       to secure and monitor airport perimeters, including barriers, motion
                       sensors, and closed-circuit television. Airport representatives have
                       cautioned that as security enhancements are made to airport perimeters, it
                       will be important for TSA to coordinate with the Federal Aviation
                       Administration and the airport operators to ensure that any enhancements
                       do not pose safety risks for aircraft. To further examine these threats and
                       challenges, we have ongoing work assessing TSA’s progress in meeting
                       ATSA provisions related to improving perimeter security, access controls,
                       and background checks for airport employees and other individuals with
                       access to secure areas of the airport, as well as the nature and extent of
                       the threat from shoulder-fired missiles.

Air Cargo Security 	   As we and the Department of Transportation’s Inspector General have
                       reported, vulnerabilities exist in ensuring the security of cargo carried

                        U.S. General Accounting Office, Transportation Security: Federal Action Needed to Help
                       Address Security Challenges, GAO-03-843 (Washington, D.C.: June 30, 2003).

                       Page 22                                                                  GAO-04-232T
aboard commercial passenger and all-cargo aircraft. TSA has reported that
an estimated 12.5 million tons of cargo are transported each year—9.7
million tons on all-cargo planes and 2.8 million tons on passenger planes.
Potential security risks are associated with the transport of air cargo—
including the introduction of undetected explosive and incendiary devices
in cargo placed aboard aircraft. To reduce these risks, ATSA requires that
all cargo carried aboard commercial passenger aircraft be screened and
that TSA have a system in place as soon as practicable to screen, inspect,
or otherwise ensure the security of cargo on all-cargo aircraft. Despite
these requirements, it has been reported that less than 5 percent of cargo
placed on passenger airplanes is physically screened.32 TSA’s primary
approach to ensuring air cargo security and safety is to ensure compliance
with the “known shipper” program—which allows shippers that have
established business histories with air carriers or freight forwarders to
ship cargo on planes. However, we and the Department of
Transportation’s Inspector General have identified weaknesses in the
known shipper program and in TSA’s procedures for approving freight
forwarders, such as possible tampering with freight at various handoff
points before it is loaded into an aircraft.33

Since September 2001, TSA has taken a number of actions to enhance
cargo security, such as implementing a database of known shippers in
October 2002. The database is the first phase in developing a cargo
profiling system similar to the Computer-Assisted Passenger Prescreening
System. However, in December 2002, we reported that additional
operational and technological measures, such as checking the identity of
individuals making cargo deliveries, have the potential to improve air
cargo security in the near term.34 We further reported that TSA lacks a
comprehensive plan with long-term goals and performance targets for
cargo security, time frames for completing security improvements, and
risk-based criteria for prioritizing actions to achieve those goals.
Accordingly, we recommended that TSA develop a comprehensive plan for
air cargo security that incorporates a risk management approach, includes
a list of security priorities, and sets deadlines for completing actions. TSA
agreed with this recommendation and expects to develop such a plan by

     Congressional Research Service, Air Cargo Security, September 11, 2003.
 U.S. General Accounting Office, Aviation Security: Vulnerabilities and Potential
Improvements for the Air Cargo System, GAO-03-344 (Washington, D.C.: Dec. 20, 2002).
     See footnote 33.

Page 23                                                                        GAO-04-232T
                            the end of 2003. It will be important that this plan include a timetable for
                            implementation to help ensure that vulnerabilities in this area are reduced.

General Aviation Security   Since September 2001, TSA has taken limited action to improve general
                            aviation security, leaving general aviation far more open and potentially
                            vulnerable than commercial aviation. General aviation is vulnerable
                            because general aviation pilots and passengers are not screened before
                            takeoff and the contents of general aviation planes are not screened at any
                            point. General aviation includes more than 200,000 privately owned
                            airplanes, which are located in every state at more than 19,000 airports.35
                            More than 550 of these airports also provide commercial service. In the
                            last 5 years, about 70 aircraft have been stolen from general aviation
                            airports, indicating a potential weakness that could be exploited by
                            terrorists. This vulnerability was demonstrated in January 2002, when a
                            teenage flight student stole and crashed a single-engine airplane into a
                            Tampa, Florida skyscraper. Moreover, general aviation aircraft could be
                            used in other types of terrorist acts. It was reported that the September
                            11th hijackers researched the use of crop dusters to spread biological or
                            chemical agents.

                            We reported in September 2003 that TSA chartered a working group on
                            general aviation within the existing Aviation Security Advisory
                            Committee.36 The working group consists of industry stakeholders and is
                            designed to identify and recommend actions to close potential security
                            gaps in general aviation. On October 1, 2003, the working group issued a
                            report that included a number of recommendations for general aviation
                            airport operators’ voluntary use in evaluating airports’ security
                            requirements. These recommendations are both broad in scope and
                            generic in their application, with the intent that every general aviation
                            airport and landing facility operators may use them to evaluate that
                            facility’s physical security, procedures, infrastructure, and resources. TSA
                            is taking some additional action to strengthen security at general aviation
                            airports, including developing a risk-based self-assessment tool for general

                              Of the 19,000 general aviation airports, 5,400 are publicly owned. TSA is currently
                            focusing its efforts on these publicly owned airports. TSA is still unclear about its role in
                            inspecting privately owned general aviation airports.
                              U.S. General Accounting Office, Aviation Security: Progress since Septermber 11th, and
                            the Challenges Ahead, GAO-03-1150T (Washington, D.C.: September 9, 2003).

                            Page 24                                                                          GAO-04-232T
                            aviation airports to use in identifying security concerns. We have ongoing
                            work that is examining general aviation security in further detail.

Aviation Security Funding   TSA faces two key funding and accountability challenges in securing the
                            commercial aviation system: (1) paying for increased aviation security and
                            (2) ensuring that these costs are controlled. The costs associated with the
                            equipment and personnel needed to screen passengers and their baggage
                            alone are huge. The Department of Homeland Security appropriation
                            includes $3.7 billion for aviation security for fiscal year 2004, with about
                            $1.8 billion for passenger screening and $1.3 billion for baggage screening.
                            ATSA created a passenger security fee to pay for the costs of aviation
                            security, but the fee has not generated enough money to do so. The
                            Department of Transportation’s Inspector General reported that the
                            security fees are estimated to generate only about $1.7 billion during fiscal
                            year 2004.

                            A major funding challenge is paying for the purchase and installation of
                            the remaining explosives detection systems, including integration into
                            airport baggage-handling systems. Integrating the equipment with the
                            baggage-handling systems is expected to be costly because it will require
                            major facility modifications. For example, modifications needed to
                            integrate the equipment at Boston’s Logan International Airport are
                            estimated to cost $146 million. Modifications for Dallas/Fort Worth
                            International Airport are estimated to cost $193 million. According to TSA
                            and the Department of Transportation’s Inspector General, the cost of
                            integrating the equipment nationwide could be $3 billion.

                            A key question that must be addressed is how to pay for these installation
                            costs. The Federal Aviation Administration’s Airport Improvement
                            Program (AIP) and passenger facility charges have been eligible sources
                            for funding this work.37 During fiscal year 2002, AIP grant funds totaling
                            $561 million were used for terminal modifications to enhance security.
                            However, using these funds for security reduced the funding available for
                            other airport development and rehabilitation projects. To provide financial
                            assistance to airports for security-related capital investments, such as the
                            installation of explosives detection equipment, proposed aviation

                             The Airport Improvement Program trust fund is used to fund capital improvements to
                            airports, including some security enhancements, such as terminal modifications to
                            accommodate explosive detection equipment.

                            Page 25                                                                  GAO-04-232T
                reauthorization legislation would establish an aviation security capital
                fund that would authorize $2 billion over the next 4 years. The funding
                would be made available to airports in letters of intent, and large and
                medium hub airports would be expected to provide a match of 10 percent
                of a project’s costs. A 5 percent match would be required for all other

                In February 2003, we identified letters of intent as a funding option that
                has been successfully used to leverage private sources of funding.38 TSA
                has since signed letters of intent covering seven airports—Boston Logan,
                Dallas/Fort Worth, Denver, Los Angeles, McCarran (Las Vegas), Ontario
                (California), and Seattle/Tacoma international airports. Under the
                agreements, TSA will pay 75 percent of the cost of integrating the
                explosives detection equipment into the baggage-handling systems. The
                payments will stretch out over 3 to 4 years. TSA officials have identified
                more airports that would be candidates for similar agreements.

                Another challenge is ensuring continued investment in transportation
                research and development. For fiscal year 2003, TSA was appropriated
                about $110 million for research and development, of which $75 million
                was designated for the next-generation explosives detection systems.
                However, TSA proposed to reprogram $61.2 million of these funds to be
                used for other purposes, leaving about $12.7 million to be spent on
                research and development in that year. This proposed reprogramming
                could limit TSA’s ability to sustain and strengthen aviation security by
                continuing to invest in research and development for more effective
                equipment to screen passengers, their carry-on and checked baggage, and
                cargo. In ongoing work, we are examining the nature and scope of
                research and development work by TSA and the Department of Homeland
                Security, including their strategy for accelerating the development of
                transportation security technologies.

Human Capital   As it organizes itself to protect the nation’s transportation system, TSA
Management 	    faces the challenge of strategically managing its workforce of about 60,000
                people—more than 80 percent of whom are passenger and baggage
                screeners. Additionally, over the next several years, TSA faces the

                 U.S. General Accounting Office, Airport Financing: Past Funding Levels May Not Be
                Sufficient to Cover Airports’ Planned Capital Development, GAO-03-497T (Washington,
                D.C.: Feb. 25, 2003).

                Page 26                                                                 GAO-04-232T
challenge of sizing and managing this workforce as efficiency is improved
with new security-enhancing technologies, processes, and procedures. For
example, as explosives detection systems are integrated with baggage-
handling systems, the use of more labor-intensive screening methods, such
as trace detection techniques and manual bag searches, can be reduced.
Other planned security enhancements, such as CAPPS II and the
registered traveler program, also have the potential to make screening
more efficient. Further, if airports opt out of the federal screener program
and use their own or contract employees to provide screening instead of
TSA screeners, a significant impact on TSA staffing could occur.

To assist agencies in managing their human capital more strategically, we
have developed a model that identifies cornerstones and related critical
success factors that agencies should apply and steps they can take.39 Our
model is designed to help agency leaders effectively lead and manage their
people and integrate human capital considerations into daily decision
making and the program results they seek to achieve. In January 2003, we
reported that TSA was addressing some critical human capital success
factors by using a wide range of tools available for hiring, and beginning to
link individual performance to organizational goals.40 However, concerns
remain about the size and training of that workforce, the adequacy of the
initial background checks for screeners, and TSA’s progress in setting up a
performance management system. TSA is currently developing a human
capital strategy, which it expects to be completed by the end of this year.

TSA has proposed cutting the screener workforce by an additional 3,000
during fiscal year 2004. This planned reduction has raised concerns about
passenger delays at airports and has led TSA to begin hiring part-time
screeners to make more flexible and efficient use of its workforce. In
addition, TSA used an abbreviated background check process to hire and
deploy enough screeners to meet ATSA’s screening deadlines during 2002.
After obtaining additional background information, TSA terminated the
employment of some of these screeners. TSA reported 1,208 terminations
as of May 31, 2003, that it ascribed to a variety of reasons, including
criminal offenses and failures to pass alcohol and drug tests. Furthermore,
the national media have reported allegations of operational and

 U.S. General Accounting Office, A Model of Strategic Human Capital Management,
GAO-02-373SP (Washington, D.C.: March 2002).
 U.S. General Accounting Office, Transportation Security Administration: Actions and
Plans to Build a Results-Oriented Culture, GAO-03-190 (Washington, D.C.: Jan. 13, 2003).

Page 27                                                                    GAO-04-232T
                 management control problems that emerged with the expansion of the
                 Federal Air Marshal Service, including inadequate background checks and
                 training, uneven scheduling, and inadequate policies and procedures. We
                 reported in January 2003 that TSA had taken the initial steps in
                 establishing a performance management system linked to organizational
                 goals. Such a system will be critical for TSA to motivate and manage staff,
                 ensure the quality of screeners’ performance, and, ultimately, restore
                 public confidence in air travel. In ongoing work, we are examining the
                 effectiveness of TSA’s efforts to train, equip, and supervise passenger
                 screeners, and we are assessing the effects of expansion on the Federal
                 Air Marshal Service.41

                 As TSA moves forward in addressing aviation security concerns, it needs
     the information and tools necessary to ensure that its efforts are
   appropriately focused, strategically sound, and achieving expected results.
                 Without knowledge about the effectiveness of its programs and a process
                 for prioritizing planned security initiatives, TSA and the public have little
                 assurance regarding the level of security provided, and whether TSA is
                 using its resources to maximize security benefits. Additionally, as TSA
                 implements new security initiatives and addresses associated challenges,
                 measuring program effectiveness and prioritizing efforts will help it focus
                 on the areas of greatest importance. We are encouraged that TSA is
                 undertaking efforts to develop the information and tools needed to
                 measure its performance and focus its efforts on those areas of greatest

                 Mr. Chairman, this concludes my statement. I would be pleased to answer
                 any questions that you or other members of the Committee may have.

                  The Federal Air Marshal Service has been transferred out of TSA and into the Department
                 of Homeland Security’s Bureau of Immigration and Customs Enforcement.

                 Page 28                                                                   GAO-04-232T
                        For further information on this testimony, please contact Cathleen A.
Contact Information 	   Berrick at (202) 512-8777. Individuals making key contributions to this
                        testimony include Mike Bollinger, Lisa Brown, Jack Schulze, Maria
                        Strudwick, and Susan Zimmerman.

                        Page 29                                                        GAO-04-232T
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              Page 30                                                      GAO-04-232T
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Page 31                                                      GAO-04-232T
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           Page 32                                                     GAO-04-232T
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