Billions Invested in Homeland Security Programs Lack Adequate Oversight

by Jim Kouri, CPP

In fiscal year 2007, the Department of Homeland Security obligated about $12 billion for acquisitions to support homeland security missions. DHS's major investments include Coast Guard ships and aircraft; border surveillance and screening equipment; nuclear detection equipment; and systems to track finances and human resources.

In part to provide insight into the cost, schedule, and performance of these acquisitions, DHS established an investment review process in 2003. However, concerns have been raised about how well the process has been implemented – particularly for large investments.

The U.S. House of Representatives requested the Government Accounting Office to evaluate DHS's implementation of the investment review process, and assess DHS's integration of the investment review and budget processes to ensure major investments fulfill mission needs.

GAO reviewed relevant documents, including those for 57 DHS major investments (investments with a value of at least $50 million) – 48 of which required department-level review through the second quarter of fiscal year 2008; and interviewed DHS officials.

While DHS's investment review process calls for executive decision making at key points in an investment's life cycle – including program authorization – the process has not provided the oversight needed to identify and address cost, schedule, and performance problems in its major investments. Poor implementation of the process is evidenced by the number of investments that did not adhere to the department's investment review policy – of DHS's 48 major investments requiring milestone and annual reviews, 45 were not assessed in accordance with this policy.

At least 14 of these investments have reported cost growth, schedule slips, or performance shortfalls. ....