8/1 Report: DHS Continues Flawed Practices that Wasted Taxpayer Dollars on Border & Airport Security
WASHINGTON, D.C. – The Department of Homeland Security, which accounts for more than $150 billion in total major acquisition programs, continues the same flawed acquisition processes that over the last decade wasted billions of taxpayerdollars and jeopardized the Department’s ability to carry out its mission of protecting the homeland.
Failedor flawed projects related to border and airport security are among the most costly examples outlined in a new report by the Homeland Security Oversight, Investigations & Management Subcommittee, demonstrating a trend of haphazardly spending taxpayer dollars on projects that ultimately fail to achieve their objective. Chairman Michael McCaul (R-TX) released the report prior to Wednesday’s 2:00pm markup of H.R. 5913, the DHS Accountability Act, which would launch an independent investigation of Department of Homeland Security management and leadership failures.
SBInet
DHS’s key border security technology program—the Secure Border Initiative Network (SBI-Net)—was ultimately cancelled in January 2011. The report indicates DHS did not adequately define requirements, thoroughly test technology, or properly oversee contractors. Poor management and oversight resulted in nearly $1 billion in wasted taxpayer dollars and costly delays to the deployment of technologies necessary to help secure the Southwest border.
Sequel to SBInet in Jeopardy
The Department is now pursuing a new initiative—the Arizona Border Surveillance Technology Plan—that utilizes some of the same technologies as SBI-Net. However, the Government Accountability Office (GAO) has questioned DHS’s plan because it cannot justify the types of technologies required, how many units they need, what they will ultimately cost, or where to put them.
CBP Steel Purchase
In November 2011 the DHS Inspector General reported that Customs and Border Protection (CBP) spent about $310 million since 2008 to purchase and store steel in support of fencing for the Southwest border. However, CBP wasted about $70 million because it purchased more steel than was needed, paid interest on late payments, and approved a higher-priced subcontractor.
TSA Full Body Scanners
In January 2012, GAO reported that the Transportation Security Administration (TSA) did not fully follow DHS acquisition policies when acquiring AdvancedImaging Technology (AIT)—commonly referred to as full body scanners for airport screening. As of May 2012, this resulted in the deployment of more than 670 machines to approximately 170 airports that could not meet initial requirements, which DHS had identified as necessary to protect the aviation system. DHS plans to deploy a total of 1,250 units, ultimately costing nearly $400 million.
“DHS’s shortcomings in managing its acquisition programs have wasted taxpayer dollars and have led directly to the failure of programs necessary to protect the homeland,” said Chairman McCaul. “Our report identifies solutions to some of these issues. Without the Department’s sustained leadership and effective implementation, I am concerned we will continue to see waste of taxpayer dollars and inefficiencies that affect the ability of DHS to carry out its core mission.”
Although DHS issued a policy containing elements of acquisition best practices, it neglected to hold programs accountable to that policy. The GAO reported in May 2012 this neglect occurred on a routine basis with the programs it reviewed. To date, DHS’s acquisitions program remains designated by GAO as “high risk”, with greater vulnerability to waste, fraud, abuse and corruption.
The report is based on findings by GAO, the DHS Inspector General and by the Homeland Security Committee’s oversight activities during the 112th Congress, including five management hearings held in early 2012 by ChairmanMcCaul. Based on the findings, the report offers solutions including a department-wide process to prevent duplicative procurement by leveraging existing technologies. The Subcommittee on Oversight, Investigations,and Management has also requested GAO further investigate the effectiveness of DHS’s acquisition and procurement programs.
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