Subcommittee Passes McCaul DHS Accountability Act

Issues Report on Flawed Acquisition Practices Costing Taxpayers Billions

WASHINGTON, D.C. – Congressman Michael McCaul’s DHS Accountability Act passed the Homeland Security Oversight, Investigations and Management Subcommittee, which he chairs, and will move toward a vote by the full committee. H.R. 5913 creates an independent, top-to-bottom examination of deficiencies in Department of Homeland Security leadership and management structure.

The Act is a product of five oversight hearings examining widespread corruption, low morale, inefficiency and waste of taxpayer dollars, and comes ten yearssince the inception of DHS. It is co-sponsored by the Subcommittee’s Ranking Member, Congressman Bill Keating (D-MA).

“I have doubts the Department can carry out its core mission of protecting thehomeland if the problems persist. These issues of corruption, waste, duplication, and abuse of power are all symptomatic of deeply rooted flaws in the department's management. I am committed to seeing DHS function with efficiency and this is a step forward,” Chairman McCaul said.

Notable facts related to H.R. 5913:

• Creates an independent 8-member advisory panel appointed by the legislative and executive branches to assess DHS management structure and capabilities

• Excessive bureaucracy, waste, ineffectiveness and lack of transparency have hindered DHS operations and wasted taxpayer dollars

• DHS acquisitions are identified as "high risk" by the Government Accountability Office, citing greater vulnerability to waste, fraud, abuse and mismanagement.

• DHS is the third largest department in the Federal government with more than 200,000 employees and an annual budget of $60 billion.

Prior to the markup, Chairman McCaul issued an investigative report, Initiatives Needed to Correct Weaknesses in the Department of Homeland Security’s Acquisition and Contracting Practices. The report revealed DHS continues the same flawed acquisition processes that over the last decade wasted billions of taxpayer dollars andjeopardized the Department’s ability to carry out its mission of protecting the homeland. The Department accounts for more than $150 billion in total major acquisition programs (in total lifecycle costs, which are the total costs of acquiring capabilities).

Failed or flawed projects related to border and airport security are among the most costly examples, demonstrating a trend of haphazardly spending taxpayer dollars on projects that ultimately fail to achieve their objective.

DHSAccountability Act of 2012

Recent Key Findings of the Oversight Subcommittee

CORRUPTION & MISCONDUCT

Combined in FY2011, CBP and ICE had 9,073 allegations of employee misconduct including 893 for corruption such as personnel collaborating with drug smugglers and filing fraudulent travel documents.

CBP agents repeatedly working with drug trafficking organizations to smuggle guns and drugs through an airport. Approximate 5,800 complaints against CBP employees in FY2011 resulted in 730 investigations. Last year there were 403 arrests throughout DHS.

TSA had 612 allegations of misconduct in FY'11. Dozens of officers have been fired for allowing thousands of pieces of luggage onto flights without proper screening and for taking bribes allowing passengers expedited security checks.

Between October 2009 and September 2010 at Newark Liberty Airport, TSA screeners stole as much as $30,000 from unsuspecting passengers who were trying to get through security to board their plane. In Orlando, passengers had laptop computers stolen from their luggage.

Airport security badges were found issued to employees who had not undergone a complete Security Threat Assessment.

ACQUISITIONS MISMANAGEMENT

The DHS Inspector General, in a November 2011 report, concludes the Department has major challenges, including acquisition, information technology, grants, and finances.

The GAO concludes many DHS management functions are high risk, including acquisitions, information technology, finances, human capital andintegration, all resulting in performance problems and mission delays.

WASTED TAXPAYER DOLLARS

DHS has failed to develop and acquire new technologies to address the various threats including border surveillance, screening equipment, and nuclear detection equipment.

SBInet – the Secretary ended the original program after costing taxpayers nearly one billion dollars to monitor only 53 miles of the Southwest border.

Failed due to the lack of effective program management, poorly defined program requirements, inaccurate cost estimations, limited access to expert guidance, and unavailable and unreliable performance data to make informative decisions.

CBP wasted $69 million in purchasing steel to build border fences. It purchased more steel than needed, incurred additional storage costs, paid interest on late payments, and approved a higher priced subcontractor.

ASP – DHS spent $230 million on the Advanced Spectroscopic Portal program before it was cancelled.

ASP was designed to improve radiation and nuclear detection capabilities at ourseaports and land border crossings but failed due to inaccurate data and poor acquisition management, which resulted in underestimated costs and overstated benefits.

INEFFICIENCY

Last year, DHS collected about $230 million in fees from other agencies to pay for 2,500 facility risk assessments. However, DHS’s Federal Protective Service completed only four of those assessments. The agencies that paid for the service but got nothing in return ended up conducting their own risk assessments.

EMPLOYEE MORALE

Two federal surveys, Federal Viewpoints and Best Places to Work, found that DHS ranks 31 out of 33 federal organizations for best places to work.

37% of DHS's 200,000 employees believe senior leaders motivate them.

37% are satisfied with their senior leaders' policies and practices.

LEADERSHIP

• DHS has not prioritized the missions outlined in its key strategies, which may hinder its ability to effectively manage risks moving forward.
• Management challenges continue such as weaknesses in the acquisition oversight process, implementing human capital initiatives, and lack of financial data integration.
• Areas of duplication within the Department exist.

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