DOD Personnel Clearances: New Concerns Slow Processing of
Clearances for Industry Personnel (17-MAY-06, GAO-06-748T).
The Department of Defense (DOD) is responsible for about 2
million active personnel security clearances. About one-third of
the clearances are for industry personnel working on contracts
for DOD and more than 20 other executive agencies. Delays in
determining eligibility for a clearance can heighten the risk
that classified information will be disclosed to unauthorized
sources and increase contract costs and problems attracting and
retaining qualified personnel. Long-standing delays in completing
hundreds of thousands of clearance requests and numerous
impediments that hinder DOD's ability to accurately estimate and
eliminate its clearance backlog led GAO to declare DOD's
personnel security clearance program a high-risk area in January
2005. This testimony presents GAO's (1) preliminary observations
from its ongoing review of the timeliness and completeness of
clearances, (2) concerns about the upcoming expiration of an
executive order that has resulted in high level commitment to
improving the governmentwide clearance process, and (3) views on
factors underlying DOD's decision to stop accepting clearance
requests for industry personnel.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-06-748T
ACCNO: A54160
TITLE: DOD Personnel Clearances: New Concerns Slow Processing of
Clearances for Industry Personnel
DATE: 05/17/2006
SUBJECT: Eligibility determinations
Executive orders
Interagency relations
Internal controls
Personnel security clearance programs
Personnel security policies
Security clearances
Security clearance backlogs
Timeliness
******************************************************************
** This file contains an ASCII representation of the text of a **
** GAO Product. **
** **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced. Tables are included, but **
** may not resemble those in the printed version. **
** **
** Please see the PDF (Portable Document Format) file, when **
** available, for a complete electronic file of the printed **
** document's contents. **
** **
******************************************************************
GAO-06-748T
* Background
* Summary
* Preliminary Observations from GAO's Ongoing Audit Suggests A
* Expiration of Executive Order Could Slow Improvements in Cle
* Unexpected Volume of Clearance Requests and Funding Constrai
* Concluding Observations
* Staff Contact and Acknowledgments
* Related GAO Products
* Order by Mail or Phone
Testimony
Before the Subcommittee on Oversight of Government Management, the Federal
Workforce, and the District of Columbia, Committee on Homeland Security
and Governmental Affairs, U.S. Senate
United States Government Accountability Office
GAO
For Release on Delivery Expected at 2:30 p.m. EDT
Wednesday, May 17, 2006
DOD PERSONNEL CLEARANCES
New Concerns Slow Processing of Clearances for Industry Personnel
Statement of Derek B. Stewart, Director Defense Capabilities and
Management
GAO-06-748T
Chairman Voinovich and Members of the Subcommittee:
I am pleased to be here today to discuss the Department of Defense's (DOD)
personnel security clearance program and problems related to clearances
for industry personnel. Since declaring DOD's program a high-risk area in
January 2005, we have testified before this Subcommittee three times on
security clearance-related issues. Before providing my observations about
the current problems in the security clearance process, I would like to
provide some background to (1) give a general context for understanding
clearances and describe the importance of industry personnel to our
national security, (2) discuss how clearance problems can negatively
affect national security, and (3) provide information about several recent
events affecting the overall status of DOD's personnel security clearance
program.
Background
For over 2 decades, we have reported on problems with DOD's personnel
security clearance program as well as the financial costs and risks to
national security resulting from these problems (see Related GAO Reports
at the end of this statement). For example, at the turn of the century, we
documented problems such as incomplete investigations, inconsistency in
determining eligibility for clearances, and a backlog of overdue clearance
reinvestigations that exceeded 500,000 cases.1 More recently in 2004, we
identified continuing and new impediments hampering DOD's clearance
program and made recommendations for increasing the effectiveness and
efficiency of the program.2 Also in September 2004 and June and November
2005, we testified before this Subcommittee on clearance-related problems
faced governmentwide, DOD-wide, and for industry personnel in particular.3
1 GAO, DOD Personnel: More Consistency Needed in Determining Eligibility
for Top Secret Security Clearances, GAO-01-465 (Washington, D.C.: Apr. 18,
2001); GAO, DOD Personnel: More Actions Needed to Address Backlog of
Security Clearance Reinvestigations, GAO/NSIAD-00-215 (Washington, D.C.:
Aug. 24, 2000); and GAO, DOD Personnel: Inadequate Personnel Security
Investigations Pose National Security Risks, GAO/NSIAD-00-12 (Washington,
D.C.: Oct. 27, 1999).
2 GAO, DOD Personnel Clearances: Additional Steps Can Be Taken to Reduce
Backlogs and Delays in Determining Security Clearance Eligibility for
Industry Personnel, GAO-04-632 (Washington, D.C.: May 26, 2004); and GAO,
DOD Personnel Clearances: DOD Needs to Overcome Impediments to Eliminating
Backlog and Determining Its Size, GAO-04-344 (Washington, D.C.: Feb. 9,
2004).
A critical step in the federal government's efforts to protect national
security is to determine whether an individual is eligible for a personnel
security clearance. Specifically, an individual whose job requires access
to classified information must undergo a background investigation and
adjudication (determination of eligibility) in order to obtain a
clearance. As with federal government workers, the demand for personnel
security clearances for industry personnel has increased during recent
years. Additional awareness of threats to our national security since
September 11, 2001, and efforts to privatize federal jobs during the last
decade are but two of the reasons for the greater number of industry
personnel needing clearances today. As of September 30, 2003, industry
personnel held about one-third of the approximately 2 million DOD-issued
clearances. DOD's Office of the Under Secretary of Defense for
Intelligence has overall responsibility for DOD clearances, and its
responsibilities also extend beyond DOD. Specifically, that office's
responsibilities include obtaining background investigations and
adjudicating clearance eligibility for industry personnel in more than 20
other federal agencies,4 as well as the clearances of staff in the federal
government's legislative branch.
3 GAO, DOD Personnel Clearances: Government Plan Addresses Some
Longstanding Problems with DOD's Program, But Concerns Remain, GAO-06-233T
(Washington, D.C.: Nov. 9, 2005); GAO, DOD Personnel Clearances: Some
Progress Has Been Made but Hurdles Remain to Overcome the Challenges That
Led to GAO's High-Risk Designation, GAO-05-842T (Washington, D.C.: June
28, 2005); and GAO, Intelligence Reform: Human Capital Considerations
Critical to 9/11 Commission's Proposed Reforms, GAO-04-1084T (Washington,
D.C.: Sept. 14, 2004).
Problems in the clearance program can negatively affect national security.
For example, delays reviewing security clearances for personnel who are
already doing classified work can lead to a heightened risk of disclosure
of classified information. In contrast, delays in providing initial
security clearances for previously non cleared personnel can result in
other negative consequences, such as additional costs and delays in
completing national security-related contracts, lost-opportunity costs,
and problems retaining the best qualified personnel.
Long-standing delays in completing hundreds of thousands of clearance
requests for servicemembers, federal employees, and industry personnel as
well as numerous impediments that hinder DOD's ability to accurately
estimate and eliminate its clearance backlog led us to declare the program
a high-risk area in January 2005. The 25 areas on our high-risk list at
that time received their designation because they are major programs and
operations that need urgent attention and transformation in order to
ensure that our national government functions in the most economical,
efficient, and effective manner possible.5
4 We identified 22 other agencies in GAO-04-632. Executive Order No.
10865, Safeguarding Classified Information Within Industry, Feb. 20, 1960,
which was amended by Executive Order No. 12829, National Industrial
Security Program, Jan. 6, 1993, authorizes DOD to reach agreement with
other federal departments and agencies to extend its regulations
concerning authorizations for access to classified information by
industry. The agencies that have entered into agreements with DOD for
security services under the National Industrial Security Program are the
(1) National Aeronautics and Space Administration, (2) Department of
Commerce, (3) General Services Administration, (4) Department of State,
(5) Small Business Administration, (6) National Science Foundation, (7)
Department of Treasury, (8) Department of Transportation, (9) Department
of the Interior, (10) Department of Agriculture, (11) Department of Labor,
(12) Environmental Protection Agency, (13) Department of Justice, (14)
Federal Reserve System, (15) U.S. Government Accountability Office
(formerly U.S. General Accounting Office), (16) U.S. Trade Representative,
(17) U.S. International Trade Commission, (18) U.S. Agency for
International Development, (19) Nuclear Regulatory Commission, (20)
Department of Health and Human Services, (21) Department of Homeland
Security, and (22) Department of Education. The Department of Energy and
the Central Intelligence Agency are signatories of the National Industrial
Security Program Operating Manual and thus have reciprocity with DOD under
provisions of the manual. Three federal agencies (the Department of
Energy, the Central Intelligence Agency, and Nuclear Regulatory
Commission) also may grant security clearances to industry personnel who
work on national security-related programs.
5 GAO, High-Risk Series: An Update, GAO-05-207 (Washington, D.C.: January
2005).
Shortly after we placed DOD's clearance program on our high-risk list, a
major change in DOD's program occurred. In February 2005, DOD transferred
its personnel security investigations functions and about 1,800
investigative positions to the Office of Personnel Management (OPM). Now,
DOD obtains nearly all of its clearance investigations from OPM,6 which is
currently responsible for 90 percent of the personnel security clearance
investigations in the federal government.7 DOD retained responsibility for
adjudication of military personnel, DOD civilians, and industry personnel.
Other recent significant events affecting DOD's clearance program have
been the passage of the Intelligence Reform and Terrorism Prevention Act
of 2004 and the issuance of the June 2005 Executive Order 13381,
"Strengthening Processes Relating to Determining Eligibility for Access to
Classified National Security Information." The act included milestones for
reducing the time to complete clearances, general specifications for a
database on security clearances, and requirements for greater reciprocity
of clearances (the acceptance of a clearance and access granted by another
department, agency, or military service). Among other things, the
executive order resulted in the Office of Management and Budget (OMB)
taking a lead role in preparing a strategic plan to improve personnel
security clearance processes governmentwide.
Using the context that I have laid out for understanding the interplay
between DOD and OPM in DOD's personnel security clearance processes, I
will address three issues. First, I will provide a status update and
preliminary observations from our ongoing audit on the timeliness and
completeness of the processes used to determine whether industry personnel
are eligible to hold a top secret clearance-an audit that this
Subcommittee requested. Second, I will discuss potential adverse effects
that might result from the July 1, 2006, expiration of Executive Order
13381. Finally, I will discuss DOD's recent action to suspend the
processing of clearance requests for industry personnel.
6 Currently the National Security Agency, Defense Intelligence Agency, and
National Reconnaissance Office each have a waiver that allows them to
contract for their own personnel security clearance investigations.
7 In GAO-05-842T, we listed the departments/agencies having statutory or
delegated authority to conduct background investigations, as identified by
the then Deputy Associate Director of OPM's Center for Investigations
Services. Those departments/agencies are Central Intelligence Agency;
Department of State; Department of the Treasury; Internal Revenue Service;
Bureau of Engraving and Printing; Federal Bureau of Investigation;
National Security Agency; U.S. Agency for International Development;
Department of Homeland Security; Bureau of Customs and Border Protection;
U.S. Secret Service; Small Business Administration; Broadcasting Board of
Governors; Department of Justice-Bureau of Alcohol, Tobacco, Firearms, and
Explosives; U.S. Postal Service; Tennessee Valley Authority; National
Reconnaissance Office; and Peace Corps. Even though these agencies have
authority to conduct their own investigations, some of them request OPM to
conduct all or part of their investigations.
With the exception of the update and preliminary observations on our
current audit, my comments today are based primarily on our completed work
and our institutional knowledge from our prior reviews of the clearance
processes used by DOD and, to a lesser extent, other agencies. In
addition, we used information from the Intelligence Reform and Terrorism
Prevention Act of 2004, executive orders, and other documents such as a
memorandum of agreement between DOD and OPM. We conducted our work in
accordance with generally accepted government auditing standards in May
2006.
Summary
Although our audit of DOD's clearance processes for industry personnel is
ongoing, we have three preliminary observations. First, communication
problems between DOD and OPM may be limiting governmentwide efforts to
improve personnel security clearance processes. For example, until
recently, OPM had not officially shared its investigator's handbook with
DOD adjudicators. Adjudicators raised concerns that without knowing what
was required for an investigation by the investigator's handbook, they
could not fully understand how investigations were conducted and the
investigative reports that form the basis for their adjudicative
decisions. OPM indicates that it is revising the investigator's handbook
and is obtaining comments from DOD and other customers. Second, OPM faces
performance problems due to the inexperience of its domestic investigative
workforce, and it is still in the process of developing a foreign presence
to investigate leads overseas. OPM reports that it is making progress in
establishing an overseas presence, but that it will take time to fully
meet the demand for overseas investigative coverage. Third, some DOD
adjudication facilities have stopped accepting closed pending cases-that
is, investigations formerly forwarded to DOD adjudicators from OPM-even
though some required investigative information is not included.
The expiration of Executive Order 13381 could slow improvements in the
security clearance processes governmentwide, as well as for DOD in
particular. The executive order, which among other things delegated
responsibility for improving the clearance process to the Director of OMB,
is set to expire on July 1, 2006. We have been encouraged by the high
level of commitment that OMB demonstrated in the development of a plan to
address clearance-related problems. Because there has been no indication
that the executive order will be extended, we are concerned about whether
such progress will continue without OMB's high-level management
involvement. If OMB does not continue in its current role, OPM may not be
in a position to assume additional high-level commitment for several
reasons, including its inability to resolve disputes with other agencies.
Finally, a billing dispute between DOD and OPM may cause further delays in
processing security clearances for industry personnel. DOD stopped
processing applications for clearance investigations for industry
personnel on April 28, 2006, and attributed its actions to an overwhelming
volume of requests for industry personnel security investigations and
funding constraints. DOD's inability to accurately project its security
clearance workload makes it difficult to determine clearance-related
budgets and staffing requirements. The funding constraints that
contributed to the stoppage are related to the costs resulting from the
agreement that transferred DOD's clearance investigations function to OPM.
DOD has asked OMB to mediate the dispute; however, information from DOD
and OPM indicates that OMB has directed the two agencies to continue to
work together to resolve the matter. According to representatives from DOD
and OPM inspector general offices, they are currently investigating all of
the issues raised in the Under Secretary's and Associate Director's
correspondences and have indicated that they intend to issue reports on
their reviews during the summer.
Preliminary Observations from GAO's Ongoing Audit Suggests Additional Problems
Mr. Chairman, at your and other congressional members request, we continue
to examine the timeliness and completeness of the processes used to
determine whether industry personnel are eligible to hold a top secret
clearance. Two key elements of the security clearance process are
investigation and adjudication. In the investigation portion of the
security clearance process, the investigator seeks to obtain information
pertaining to the security clearance applicant's loyalty, character,
reliability, trustworthiness, honesty, and financial responsibility. For
top secret security clearances, the types or sources of information
include an interview with the subject of the investigation, national
agency checks (e.g., Federal Bureau of Investigations and immigration
records), local agency checks (e.g., municipal police and court records),
financial checks, birth date and place, citizenship, education,
employment, public records for information such as bankruptcy or divorce,
and interviews with references. In the adjudication portion of the
security clearance process, government employees in 10 DOD adjudication
facilities-2 of which serve industry-use the information gathered at the
investigation stage to approve, deny, or revoke eligibility to access
classified information. Once adjudicated, the security clearance is then
issued up to the appropriate eligibility level, or alternative actions are
taken if eligibility is denied or revoked. A major part of our audit is
reviewing fully adjudicated industry cases to determine the completeness
of both the investigations and the adjudications for top secret
clearances. We will complete this audit and issue a report to your
Subcommittee and other congressional requesters this fall.
I will briefly mention three of the preliminary observations that we have
been able to derive thus far from our audit.
o Communication problems may be limiting governmentwide efforts
to improve the personnel security clearance process. The billing
dispute that I discuss later in this testimony is one example of a
communication breakdown. In addition, until recently, OPM had not
officially shared its investigator's handbook with DOD
adjudicators. Adjudicators raised concerns that without knowing
what was required for an investigation by the investigator's
handbook, they could not fully understand how investigations were
conducted and the investigative reports that form the basis for
their adjudicative decisions. OPM indicates that it is revising
the investigator's handbook and is obtaining comments from DOD and
other customers.
o OPM acknowledges that despite its significant effort to develop
a domestic investigative workforce, performance problems remain
because of the workforce's inexperience. OPM reports that they are
making progress in hiring and training new investigators, however,
they have also noted that it will take a couple of years for the
investigative workforce to reach desired performance levels. In
addition, OPM is still in the process of developing a foreign
presence to investigate leads overseas. OPM also reports that it
is making progress in establishing an overseas presence, but that
it will take time to fully meet the demand for overseas
investigative coverage.
o Some DOD adjudication facilities have stopped accepting closed
pending cases-investigations forwarded to adjudicators even though
some required information is not included-from OPM. DOD
adjudication officials need all of the required investigative
information in order to determine clearance eligibility. Without
complete investigative information, DOD adjudication facilities
must store the hard-copy closed pending case files until the
required additional information is provided by OPM. According to
DOD officials, this has created a significant administrative
burden.
The July 1, 2006, expiration of Executive Order 13381 could slow
improvements in personnel security clearance processes
governmentwide as well as for DOD in particular. Among other
things, this new executive order delegated responsibility for
improving the clearance process to the OMB Director from June 30,
2005, to July 1, 2006. We have been encouraged by the high level
of commitment that OMB demonstrated in the development of a plan
to improve the personnel security clearance process
governmentwide. Also, the OMB Deputy Director met with GAO
officials to discuss OMB's general strategy for addressing the
problems that led to our high-risk designation for DOD's clearance
program. Demonstrating strong management commitment and top
leadership support to address a known risk is one of the
requirements for removing DOD's clearance program from GAO's
high-risk list.
Because there has been no indication that the executive order will
be extended, we are concerned about whether such progress will
continue without OMB's high-level management involvement. While
OPM has provided some leadership in assisting OMB with the
development of the governmentwide plan, OPM may not be in a
position to assume additional high-level commitment for a variety
of reasons if OMB does not continue in its current role. These
reasons include: (1) the governmentwide plan lists many management
challenges facing OPM and the Associate Director of its
investigations unit, such as establishing a presence to conduct
overseas investigations and adjusting its investigative workforce
to the increasing demand for clearances; (2) adjudication of
personnel security clearances and determination of which
organizational positions require such clearances is not an OPM
responsibility; and (3) agencies' disputes with OPM-such as the
current billing dispute with DOD-may need a high-level, impartial
third party to mediate a resolution.
DOD stopped processing applications for clearances for industry
personnel on April 28, 2006. DOD attributed its actions to an
overwhelming volume of requests for industry personnel security
investigations and funding constraints.
The unexpected volume of security clearance requests resulted in
DOD having to halt the processing of industry security clearances.
We have testified repeatedly that a major impediment to providing
timely clearances is DOD's inaccurately projected number of
requests for security clearances DOD-wide and for industry
personnel specifically. DOD's inability to accurately project
clearance requirements makes it difficult to determine
clearance-related budgets and staffing. In fiscal year 2001, DOD
received 18 percent fewer requests than it projected (about
150,000); and in fiscal years 2002 and 2003, it received 19 and 13
percent (about 135,000 and 90,000), respectively, more requests
than projected. In 2005, DOD was again uncertain about the number
and level of clearances that it required, but the department
reported plans and efforts to identify clearance requirements for
servicemembers, civilian employees, and contractors. For example,
in response to our May 2004 recommendation to improve the
projection of clearance requests for industry personnel, DOD
indicated that it is developing a plan and computer software to
have the government's contracting officers (1) authorize the
number of industry personnel clearance investigations required to
perform the classified work on a given contract and (2) link the
clearance investigations to the contract number.
An important consideration in understanding the funding
constraints that contributed to the stoppage is a DOD-OPM billing
dispute, which has resulted in the Under Secretary of Defense for
Intelligence requesting OMB mediation. The dispute stems from the
February 2005 transfer of DOD's personnel security investigations
function to OPM.
The memorandum of agreement signed by the OPM Director and the DOD
Deputy Secretary prior to the transfer lists many types of costs
that DOD may incur for up to 3 years after the transfer of the
investigations function to OPM. One cost, an adjustment to the
rates charged to agencies for clearance investigations, provides
that "OPM may charge DOD for investigations at DOD's current rates
plus annual price adjustments plus a 25 percent premium to offset
potential operating losses. OPM will be able to adjust, at any
point of time during the first three year period after the start
of transfer, the premium as necessary to cover estimated future
costs or operating losses, if any, or offset gains, if any."
The Under Secretary's memorandum says that OPM has collected
approximately $50 million in premiums in addition to approximately
$144 million for other costs associated with the transfer. The OPM
Associate Director subsequently listed costs that OPM has
incurred. To help resolve this billing matter, DOD requested
mediation from OMB, in accordance with the memorandum of agreement
between DOD and OPM. Information from DOD and OPM indicates that
OMB subsequently directed the two agencies to continue to work
together to resolve the matter on their own. According to
representatives from DOD and OPM inspector general offices, they
are currently investigating all of the issues raised in the Under
Secretary's and Associate Director's correspondences and have
indicated that they intend to issue reports on their reviews
during the summer.
Mr. Chairman, I want to assure you that we will continue taking
multiple steps to assess and monitor DOD's personnel security
clearance program. As I have discussed, we are currently reviewing
the timeliness and completeness of the processes used to determine
whether industry personnel are eligible to hold a top secret
clearance. We will report that information to your Subcommittee
this fall. Also, our standard steps of monitoring programs on our
high-risk list require that we evaluate the progress that agencies
make toward being removed from GAO's high-risk list.8 Finally, we
continuously monitor our recommendations to agencies to determine
whether active steps are being taken to overcome program
deficiencies.
Mr. Chairman and Members of the Subcommittee, this concludes my
prepared statement. I would be happy to answer any questions you
may have at this time.
For further information regarding this testimony, please contact
me at 202-512-5559 or [email protected]. Individuals making key
contributions to this testimony include Jack E. Edwards, Assistant
Director; Jerome Brown; Kurt A. Burgeson; Susan C. Ditto; David
Epstein; Sara Hackley; James Klein; and Kenneth E. Patton.
Managing Sensitive Information: Departments of Energy and Defense
Policies and Oversight Could Be Improved. GAO-06-369 . Washington,
D.C.: March 7, 2006.
Managing Sensitive Information: DOE and DOD Could Improve Their
Policies and Oversight. GAO-06-531T . Washington, D.C.: March 14,
2006.
GAO's High-Risk Program. GAO-06-497T . Washington, D.C.: March 15,
2006.
Questions for the Record Related to DOD's Personnel Security
Clearance Program and the Government Plan for Improving the
Clearance Process. GAO-06-323R . Washington, D.C.: January 17,
2006.
DOD Personnel Clearances: Government Plan Addresses Some
Long-standing Problems with DOD's Program, But Concerns Remain.
GAO-06-233T . Washington, D.C.: November 9, 2005.
Defense Management: Better Review Needed of Program Protection
Issues Associated with Manufacturing Presidential Helicopters.
GAO-06-71SU . Washington, D.C.: November 4, 2005.
DOD's High-Risk Areas: High-Level Commitment and Oversight Needed
for DOD Supply Chain Plan to Succeed. GAO-06-113T . Washington,
D.C.: October 6, 2005.
Questions for the Record Related to DOD's Personnel Security
Clearance Program. GAO-05-988R . Washington, D.C.: August 19,
2005.
Industrial Security: DOD Cannot Ensure Its Oversight of
Contractors under Foreign Influence Is Sufficient. GAO-05-681 .
Washington, D.C.: July 15, 2005.
DOD Personnel Clearances: Some Progress Has Been Made but Hurdles
Remain to Overcome the Challenges That Led to GAO's High-Risk
Designation. GAO-05-842T . Washington, D.C.: June 28, 2005.
Defense Management: Key Elements Needed to Successfully Transform
DOD Business Operations. GAO-05-629T . Washington, D.C.: April 28,
2005.
Maritime Security: New Structures Have Improved Information
Sharing, but Security Clearance Processing Requires Further
Attention. GAO-05-394 . Washington, D.C.: April 15, 2005.
DOD's High-Risk Areas: Successful Business Transformation Requires
Sound Strategic Planning and Sustained Leadership. GAO-05-520T .
Washington, D.C.: April 13, 2005.
GAO's 2005 High-Risk Update. GAO-05-350T . Washington, D.C.:
February 17, 2005.
High-Risk Series: An Update. GAO-05-207 . Washington, D.C.:
January 2005.
Intelligence Reform: Human Capital Considerations Critical to 9/11
Commission's Proposed Reforms. GAO-04-1084T . Washington, D.C.:
September 14, 2004.
DOD Personnel Clearances: Additional Steps Can Be Taken to Reduce
Backlogs and Delays in Determining Security Clearance Eligibility
for Industry Personnel. GAO-04-632 . Washington, D.C.: May 26,
2004.
DOD Personnel Clearances: Preliminary Observations Related to
Backlogs and Delays in Determining Security Clearance Eligibility
for Industry Personnel. GAO-04-202T . Washington, D.C.: May 6,
2004.
Security Clearances: FBI Has Enhanced Its Process for State and
Local Law Enforcement Officials. GAO-04-596 . Washington, D.C.:
April 30, 2004.
Industrial Security: DOD Cannot Provide Adequate Assurances That
Its Oversight Ensures the Protection of Classified Information.
GAO-04-332 . Washington, D.C.: March 3, 2004.
DOD Personnel Clearances: DOD Needs to Overcome Impediments to
Eliminating Backlog and Determining Its Size. GAO-04-344 .
Washington, D.C.: February 9, 2004.
Aviation Security: Federal Air Marshal Service Is Addressing
Challenges of Its Expanded Mission and Workforce, but Additional
Actions Needed. GAO-04-242 . Washington, D.C.: November 19, 2003.
Results-Oriented Cultures: Creating a Clear Linkage between
Individual Performance and Organizational Success. GAO-03-488 .
Washington, D.C.: March 14, 2003.
Defense Acquisitions: Steps Needed to Ensure Interoperability of
Systems That Process Intelligence Data. GAO-03-329 . Washington
D.C.: March 31, 2003.
Managing for Results: Agency Progress in Linking Performance Plans
With Budgets and Financial Statements. GAO-02-236 . Washington
D.C.: January 4, 2002.
Central Intelligence Agency: Observations on GAO Access to
Information on CIA Programs and Activities. GAO-01-975T .
Washington, D.C.: July 18, 2001.
Determining Performance and Accountability Challenges and High
Risks. GAO-01-159SP . Washington, D.C.: November 2000.
DOD Personnel: More Consistency Needed in Determining Eligibility
for Top Secret Clearances. GAO-01-465 . Washington, D.C.: April
18, 2001.
DOD Personnel: More Accurate Estimate of Overdue Security
Clearance Reinvestigations Is Needed. GAO/T-NSIAD-00-246 .
Washington, D.C.: September 20, 2000.
DOD Personnel: More Actions Needed to Address Backlog of Security
Clearance Reinvestigations. GAO/NSIAD-00-215 . Washington, D.C.:
August 24, 2000.
Security Protection: Standardization Issues Regarding Protection
of Executive Branch Officials. GAO/T-GGD/OSI-00-177 . Washington,
D.C.: July 27, 2000.
Security Protection: Standardization Issues Regarding Protection
of Executive Branch Officials. GAO/GGD/OSI-00-139 . Washington,
D.C.: July 11, 2000.
Computer Security: FAA Is Addressing Personnel Weaknesses, But
Further Action Is Required. GAO/AIMD-00-169 . Washington, D.C.:
May 31, 2000.
DOD Personnel: Weaknesses in Security Investigation Program Are
Being Addressed. GAO/T-NSIAD-00-148 . Washington, D.C.: April 6,
2000.
DOD Personnel: Inadequate Personnel Security Investigations Pose
National Security Risks. GAO/T-NSIAD-00-65 . Washington, D.C.:
February 16, 2000.
DOD Personnel: Inadequate Personnel Security Investigations Pose
National Security Risks. GAO/NSIAD-00-12 . Washington, D.C.:
October 27, 1999.
Background Investigations: Program Deficiencies May Lead DEA to
Relinquish Its Authority to OPM. GAO/GGD-99-173 . Washington,
D.C.: September 7, 1999.
Department of Energy: Key Factors Underlying Security Problems at
DOE Facilities. GAO/T-RCED-99-159 . Washington, D.C.: April 20,
1999.
Performance Budgeting: Initial Experiences Under the Results Act
in Linking Plans With Budgets. GAO/AIMD/GGD-99-67 . Washington,
D.C.: April 12, 1999.
Military Recruiting: New Initiatives Could Improve Criminal
History Screening. GAO/NSIAD-99-53 . Washington, D.C.: February
23, 1999.
Executive Office of the President: Procedures for Acquiring Access
to and Safeguarding Intelligence Information. GAO/NSIAD-98-245 .
Washington, D.C.: September 30, 1998.
Inspectors General: Joint Investigation of Personnel Actions
Regarding a Former Defense Employee. GAO/AIMD/OSI-97-81R .
Washington, D.C.: July 10, 1997.
Privatization of OPM's Investigations Service. GAO/GGD-96-97R .
Washington, D.C.: August 22, 1996.
Cost Analysis: Privatizing OPM Investigations. GAO/GGD-96-121R .
Washington, D.C.: July 5, 1996.
Personnel Security: Pass and Security Clearance Data for the
Executive Office of the President. GAO/NSIAD-96-20 . Washington,
D.C.: October 19, 1995.
Privatizing OPM Investigations: Implementation Issues.
GAO/T-GGD-95-186 . Washington, D.C.: June 15, 1995.
Privatizing OPM Investigations: Perspectives on OPM's Role in
Background Investigations. GAO/T-GGD-95-185 . Washington, D.C.:
June 14, 1995.
Security Clearances: Consideration of Sexual Orientation in the
Clearance Process. GAO/NSIAD-95-21 . Washington, D.C.: March 24,
1995.
Background Investigations: Impediments to Consolidating
Investigations and Adjudicative Functions. GAO/NSIAD-95-101 .
Washington, D.C.: March 24, 1995.
Managing DOE: Further Review Needed of Suspensions of Security
Clearances for Minority Employees. GAO/RCED-95-15 . Washington,
D.C.: December 8, 1994.
Personnel Security Investigations. GAO/NSIAD-94-135R . Washington,
D.C.: March 4, 1994.
Classified Information: Costs of Protection Are Integrated With
Other Security Costs. GAO/NSIAD-94-55 . Washington, D.C.: October
20, 1993.
Nuclear Security: DOE's Progress on Reducing Its Security
Clearance Work Load. GAO/RCED-93-183 . Washington, D.C.: August
12, 1993.
Personnel Security: Efforts by DOD and DOE to Eliminate
Duplicative Background Investigations. GAO/RCED-93-23 .
Washington, D.C.: May 10, 1993.
Administrative Due Process: Denials and Revocations of Security
Clearances and Access to Special Programs. GAO/T-NSIAD-93-14 .
Washington, D.C.: May 5, 1993.
DOD Special Access Programs: Administrative Due Process Not
Provided When Access Is Denied or Revoked. GAO/NSIAD-93-162 .
Washington, D.C.: May 5, 1993.
Security Clearances: Due Process for Denials and Revocations by
Defense, Energy, and State. GAO/NSIAD-92-99 . Washington, D.C.:
May 6, 1992.
Due Process: Procedures for Unfavorable Suitability and Security
Clearance Actions. GAO/NSIAD-90-97FS . Washington, D.C.: April 23,
1990.
Weaknesses in NRC's Security Clearance Program. GAO/T-RCED-89-14 .
Washington, D.C.: March 15, 1989.
Nuclear Regulation: NRC's Security Clearance Program Can Be
Strengthened. GAO/RCED-89-41 . Washington, D.C.: December 20,
1988.
Nuclear Security: DOE Actions to Improve the Personnel Clearance
Program. GAO/RCED-89-34 . Washington, D.C.: November 9, 1988.
Nuclear Security: DOE Needs a More Accurate and Efficient Security
Clearance Program. GAO/RCED-88-28 . Washington, D.C.: December 29,
1987.
National Security: DOD Clearance Reduction and Related Issues.
GAO/NSIAD-87-170BR . Washington, D.C.: September 18, 1987.
Oil Reserves: Proposed DOE Legislation for Firearm and Arrest
Authority Has Merit. GAO/RCED-87-178 . Washington, D.C.: August
11, 1987.
Embassy Blueprints: Controlling Blueprints and Selecting
Contractors for Construction Abroad. GAO/NSIAD-87-83 . Washington,
D.C.: April 14, 1987.
Security Clearance Reinvestigations of Employees Has Not Been
Timely at the Department of Energy. GAO/T-RCED-87-14 . Washington,
D.C.: April 9, 1987.
Improvements Needed in the Government's Personnel Security
Clearance Program. Washington, D.C.: April 16, 1985.
Need for Central Adjudication Facility for Security Clearances for
Navy Personnel. GAO/GGD-83-66 . Washington, D.C.: May 18, 1983.
Effect of National Security Decision Directive 84, Safeguarding
National Security Information. GAO/NSIAD-84-26 . Washington, D.C.:
October 18, 1983.
Faster Processing of DOD Personnel Security Clearances Could Avoid
Millions in Losses. GAO/GGD-81-105 . Washington, D.C.: September
15, 1981.
The Government Accountability Office, the audit, evaluation and
investigative arm of Congress, exists to support Congress in
meeting its constitutional responsibilities and to help improve
the performance and accountability of the federal government for
the American people. GAO examines the use of public funds;
evaluates federal programs and policies; and provides analyses,
recommendations, and other assistance to help Congress make
informed oversight, policy, and funding decisions. GAO's
commitment to good government is reflected in its core values of
accountability, integrity, and reliability.
The fastest and easiest way to obtain copies of GAO documents at
no cost is through GAO's Web site ( www.gao.gov ). Each weekday,
GAO posts newly released reports, testimony, and correspondence on
its Web site. To have GAO e-mail you a list of newly posted
products every afternoon, go to www.gao.gov and select "Subscribe
to Updates."
The first copy of each printed report is free. Additional copies
are $2 each. A check or money order should be made out to the
Superintendent of Documents. GAO also accepts VISA and Mastercard.
Orders for 100 or more copies mailed to a single address are
discounted 25 percent. Orders should be sent to:
U.S. Government Accountability Office 441 G Street NW, Room LM
Washington, D.C. 20548
To order by Phone: Voice: (202) 512-6000 TDD: (202) 512-2537 Fax:
(202) 512-6061
Contact:
Web site: www.gao.gov/fraudnet/fraudnet.htm E-mail:
[email protected] Automated answering system: (800) 424-5454 or
(202) 512-7470
Gloria Jarmon, Managing Director, [email protected] (202) 512-4400
U.S. Government Accountability Office, 441 G Street NW, Room 7125
Washington, D.C. 20548
Paul Anderson, Managing Director, [email protected] (202)
512-4800 U.S. Government Accountability Office, 441 G Street NW,
Room 7149 Washington, D.C. 20548
Expiration of Executive Order Could Slow Improvements in Clearance Processes
Unexpected Volume of Clearance Requests and Funding Constraints Delay Security
Clearances for Industry Personnel Further
Concluding Observations
Staff Contact and Acknowledgments
8 The general steps required to remove DOD's personnel security clearance
program from the high-risk list are summarized in GAO-06-233T .
Related GAO Products
(350866)
This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.
GAO's Mission
Obtaining Copies of GAO Reports and Testimony
Order by Mail or Phone
To Report Fraud, Waste, and Abuse in Federal Programs
Congressional Relations
Public Affairs
www.gao.gov/cgi-bin/getrpt? GAO-06-748T .
To view the full product, including the scope
and methodology, click on the link above.
For more information, contact
Derek B. Stewart at (202) 512-5559 or [email protected].
Highlights of GAO-06-748T a testimony before the Subcommittee on Oversight
of Government Management, the Federal Workforce, and the District of
Columbia, Committee on Homeland Security and Governmental Affairs, U.S.
Senate
May 17, 2006
DOD PERSONNEL CLEARANCES
New Concerns Slow Processing of Security Clearances for Industry Personnel
The Department of Defense (DOD) is responsible for about 2 million active
personnel security clearances. About one-third of the clearances are for
industry personnel working on contracts for DOD and more than 20 other
executive agencies. Delays in determining eligibility for a clearance can
heighten the risk that classified information will be disclosed to
unauthorized sources and increase contract costs and problems attracting
and retaining qualified personnel. Long-standing delays in completing
hundreds of thousands of clearance requests and numerous impediments that
hinder DOD's ability to accurately estimate and eliminate its clearance
backlog led GAO to declare DOD's personnel security clearance program a
high-risk area in January 2005.
This testimony presents GAO's (1) preliminary observations from its
ongoing review of the timeliness and completeness of clearances, (2)
concerns about the upcoming expiration of an executive order that has
resulted in high level commitment to improving the governmentwide
clearance process, and (3) views on factors underlying DOD's decision to
stop accepting clearance requests for industry personnel.
GAO's ongoing review of the timeliness and completeness of security
clearance processes for industry personnel has provided three preliminary
observations. First, communication problems between DOD and the Office of
Personnel Management (OPM) may be limiting governmentwide efforts to
improve the personnel security clearance process. Second, OPM faces
performance problems due to the inexperience of its domestic investigative
workforce, and it is still in the process of developing a foreign presence
to investigate leads overseas. Third, some DOD adjudication facilities
have stopped accepting closed pending cases-that is, investigations
formerly forwarded to DOD adjudicators from OPM-even though some required
investigative information was not included.
In addition, the expiration of Executive Order 13381 could slow
improvements in the security clearance processes governmentwide, as well
as for DOD in particular. The executive order, which among other things
delegated responsibility for improving the clearance process to the Office
of Management and Budget (OMB), is set to expire on July 1, 2006. GAO has
been encouraged by the high level of commitment that OMB has demonstrated
in the development of a plan to address clearance-related problems.
Because there has been no indication that the executive order will be
extended, GAO is concerned about whether the progress that has resulted
from OMB's high-level management involvement will continue. Issues such as
OPM's need to establish an overseas presence are discussed as potential
reasons why OPM may not be in a position to assume an additional
high-level commitment if OMB does not continue in its current role.
Finally, inaccurate projections of clearance requests and funding
constraints are delaying the processing of security clearance requests for
industry personnel. DOD stopped processing new applications for clearance
investigations for industry personnel on April 28, 2006. DOD attributed
its actions, in part, to an overwhelming volume of requests for industry
personnel security investigations. DOD's long-standing inability to
accurately project its security clearance workload makes it difficult to
determine clearance-related budgets and staffing requirements. The funding
constraints that also underlie the stoppage are related to the transfer of
DOD's personnel security investigations functions to OPM. DOD has
questioned some of the costs being charged by OPM and has asked OMB to
mediate the DOD-OPM dispute. Information from the two agencies indicates
that OMB has directed the agencies to continue to work together to resolve
the matter. According to officials in the DOD and OPM inspector general
offices, they are investigating the billing dispute and expect to report
on the results of their investigations this summer.
*** End of document. ***