Section 1206 Security Assistance Program--Findings on Criteria,  
Coordination, and Implementation (28-FEB-07, GAO-07-416R).	 
                                                                 
Section 1206 of the National Defense Authorization Act of 2006	 
established a new program that gives the Department of Defense	 
(DOD) the authority to spend up to $200 million of its own	 
appropriations to train and equip foreign militaries to undertake
counterterrorism or stability operations. Department of State	 
(State) and DOD officials have cited the importance of this	 
program in building capacity among partner nations to help fight 
the global war on terror. Moreover, they believe that compared	 
with traditional security assistance programs funded by State,	 
Section 1206 assistance will provide greater flexibility to	 
respond quickly to emerging threats and opportunities. However,  
some believe that such a program should be funded in the foreign 
affairs budget, which is administered by State, to ensure that	 
the Secretary of State has the authority to manage foreign policy
decisions and bilateral relationships. To address Congress's	 
questions about the new Section 1206 security assistance program,
we examined (1) what criteria State and DOD use to select	 
recipient countries and types of assistance, (2) how State and	 
DOD coordinate the formulation and approval of Section 1206	 
programs, and (3) how State and DOD implement Section 1206	 
programs. As part of our audit work, we interviewed State and DOD
headquarters officials involved in the Section 1206 program and  
officials involved in formulating fiscal year 2006 proposals at  
embassies and combatant commands. We also reviewed the program's 
authorizing legislation and State and DOD guidance.		 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-416R					        
    ACCNO:   A66369						        
  TITLE:     Section 1206 Security Assistance Program--Findings on    
Criteria, Coordination, and Implementation			 
     DATE:   02/28/2007 
  SUBJECT:   Counterterrorism					 
	     Defense capabilities				 
	     Embassies						 
	     Federal funds					 
	     Federal law					 
	     Foreign aid programs				 
	     Foreign governments				 
	     Foreign military training				 
	     Interagency relations				 
	     International relations				 
	     Program evaluation 				 
	     Strategic planning 				 
	     Terrorism						 
	     Policies and procedures				 
	     Program goals or objectives			 
	     Global War on Terrorism				 
	     DOD Section 1206 Security Assistance		 
	     Program						 
                                                                 

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GAO-07-416R

   

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February 28, 2007

The Honorable Richard G. Lugar
Ranking Minority Member
Committee on Foreign Relations
United States Senate

Subject: Section 1206 Security Assistance Program--Findings on Criteria,
Coordination, and Implementation

Dear Senator Lugar:

Section 1206 of the National Defense Authorization Act of 2006 established
a new program that gives the Department of Defense (DOD) the authority to
spend up to $200 million of its own appropriations to train and equip
foreign militaries to undertake counterterrorism or stability operations.1
Department of State (State) and DOD officials have cited the importance of
this program in building capacity among partner nations to help fight the
global war on terror. Moreover, they believe that compared with
traditional security assistance programs funded by State, Section 1206
assistance will provide greater flexibility to respond quickly to emerging
threats and opportunities. However, some believe that such a program
should be funded in the foreign affairs budget, which is administered by
State, to ensure that the Secretary of State has the authority to manage
foreign policy decisions and bilateral relationships.

To address your questions about the new Section 1206 security assistance
program, we examined (1) what criteria State and DOD use to select
recipient countries and types of assistance, (2) how State and DOD
coordinate the formulation and approval of Section 1206 programs, and (3)
how State and DOD implement Section 1206 programs. As part of our audit
work, we interviewed State and DOD headquarters officials involved in the
Section 1206 program and officials involved in formulating fiscal year
2006 proposals at embassies and combatant commands. We also reviewed the
program's authorizing legislation and State and DOD guidance. We briefed
your staff on our findings on December 14, 2006. See Enclosure I for a
copy of the briefing slides, which we have updated based on technical
comments provided by DOD and State.

Background

Section 1206 of the National Defense Authorization Act of 2006 authorizes
DOD to provide equipment, supplies, or training to a foreign country to
build its capacity to (1) conduct counterterrorism operations or (2)
participate in or support stability operations in which the U.S. military
also participates.2 The law limits the provision of assistance to a
foreign country's national military forces,3 which State and DOD have
interpreted to mean units under the ministry of defense, not interior. The
law also states that no country may receive Section 1206 assistance if it
is prohibited from receiving similar assistance under other laws.4
Further, the Secretary of Defense, in coordination with the Secretary of
State, must notify Congress no less than 15 days before initiating
activities in any country.5 Additionally, State and DOD must jointly
formulate all projects and coordinate their implementation.6

1National Defense Authorization Act of 2006, Pub. L. No. 109-163, S 1206.
119 Stat. 3136, 3456-58 (2006).

The National Defense Authorization Act of 2007 increased the annual
funding authority from $200 million to $300 million and extended the
program for an additional year until the end of fiscal year 2008.7 It also
delegated approval authority from the President to the Secretary of
Defense, with Secretary of State concurrence.8 State and DOD officials
interpret the term "concurrence" to mean that the Secretary of State,
along with the Secretary of Defense, must approve all projects.

In fiscal year 2006--the first year of the Section 1206 program--DOD and
State approved a total of about $100 million for nine projects involving
15 countries (see encl. II for a description of the projects and a list of
the participating countries).9 This assistance was used primarily for
equipment to improve the counterterrorism capabilities of recipient
countries. For some countries, Section 1206 assistance represented a
significant dollar increase in fiscal year 2006 over U.S. security
assistance provided through the traditional State-funded programs.10 DOD's
Defense Security Cooperation Agency (DSCA) directs, administers, and
supervises the execution of all security assistance programs, including
Section 1206 assistance.

Summary

State and DOD select Section 1206 projects based on criteria established
in the authorizing legislation and departmental guidance to combatant
commands and embassies. State and DOD reviewers stated that they examine
all proposals to ensure that no country participates in a Section 1206
project if it is ineligible to receive security assistance under other
U.S. laws. Reviewers also stated that they reject proposals involving
assistance to units under the authority of the ministry of interior rather
than the ministry of defense. State and DOD guidance requires embassies
and combatant commands to explain how their proposals support U.S.
national security objectives and address urgent or emerging threats or
opportunities. Proposals also must explain whether other sources of funds
are available and how the project will be sustained in future years.
Additionally, in considering proposals involving their host country, the
embassy country team and ambassador typically weigh such factors as
compatibility of the proposed project with U.S. foreign policy goals and
the partner country's willingness to participate in the project and
ability to absorb the assistance.

2S 1206.

3Id.

4Id.

5Id.

6Id.

7John Warner National Defense Authorization Act of 2007, Pub. L. No.
109-364, 120 Stat. 2083, 2418 (2006).

8Id.

9The Section 1206 project involving Thailand was canceled, and other
security assistance programs were suspended, following the September 19,
2006, coup d'etat in that country.

10State-funded security assistance programs include the Foreign Military
Financing (FMF) program, which provides grants and loans to foreign
governments for the acquisition of U.S. defense equipment, services, and
training, and the International Military Education and Training (IMET)
program, which provides training to foreign military and related civilian
personnel.

State and DOD have developed a coordinated process for jointly reviewing
and selecting proposals for Section 1206 projects; however, coordination
in formulating proposals did not occur consistently between combatant
commands and embassy country teams. Once project proposals are received
from combatant commands and embassies, several State and DOD offices or
bureaus examine all proposals and then meet to jointly decide which ones
they recommend for funding. A final list of projects is presented
concurrently to the Secretaries of Defense and State for their approval.
DOD fiscal year 2007 guidance to combatant commands specifies that
programs must be developed jointly with embassy country teams and that
ambassadors should have full knowledge of proposed projects from their
inception. However, we found that for projects funded in fiscal year 2006
prior to the issuance of formal guidance, this coordination occurred in
only 5 of 14 instances before proposals were submitted for joint DOD and
State review.11 In 9 of the 14 instances, coordination efforts took place
before the departments notified Congress about the proposals. Ultimately,
no project would be implemented without the support of the ambassador,
according to State and DOD officials. The combatant commands and embassies
we contacted reported better coordination in the formulation of fiscal
year 2007 proposals. They attributed this improvement to having more time
to develop proposals and more explicit guidance from State and DOD.

DOD's DSCA and security assistance officers at embassies implement Section
1206 assistance using the same processes established for other traditional
State-funded security assistance programs. For example, for each equipment
transfer to a partner country, DSCA establishes the terms and conditions
of the transfer and provides fiscal oversight. At the embassy, the
security assistance officer is the primary point of contact to ensure
delivery to and proper use by the recipient country. According to embassy
and combatant command officials we contacted, DOD and State meet the
requirement to coordinate implementation of Section 1206 projects through
embassy-based security assistance officers, who report to both their
combatant commanders and ambassadors.

11Although 15 countries were included in projects selected for funding in
fiscal year 2006, Nigeria participated in two different projects,
resulting in 16 instances in which coordination should have occurred.
During the course of our work, we were unable to contact knowledgeable
officials at two embassies. Consequently, we were only able to determine
if coordination occurred in 14 instances.

Agency Comments

We provided a draft of this report to the Departments of Defense and
State, both of which provided technical comments that we incorporated as
appropriate. In commenting on our draft, State and DOD agreed with our
finding that their efforts to jointly formulate Section 1206 proposals
improved for fiscal year 2007. They also stated that they expect continued
improvement as they gain more experience with this program.

Scope and Methodology

To answer our three research questions, we examined the nine Section 1206
projects selected for funding in fiscal year 2006. (See encl. II for a
description of the projects and a list of the 15 participating countries.)
We interviewed officials from combatant commands and U.S. embassies
responsible for these projects and also interviewed State and DOD
officials that participated in the joint review and implementation
process. At DOD, we interviewed officials in the Office of the Secretary
of Defense, the Joint Staff, the Defense Security Cooperation Agency, and
the Office of General Counsel. At the State Department, we interviewed
officials in the Bureau of Political-Military Affairs, regional bureaus,
the Bureau of Legal Affairs, the Office of the Director of Foreign
Assistance (F Bureau), and the Office of the Coordinator for
Counterterrorism (S/CT). Lastly, we reviewed the National Defense
Authorization Acts of 2006 and 2007 and consulted State and DOD guidance
for submitting Section 1206 proposals. Although the Thailand project was
canceled, we included it in our assessment of coordination between the
embassies and the combatant commands.

We conducted our review from September 2006 to February 2007 in accordance
with generally accepted auditing standards.

                     

           As agreed with your staff, unless you publicly announce the
           contents of this report earlier, we plan no further distribution
           until 5 days from the report date. At that time, we will send
           copies of this report to the Secretaries of Defense and State and
           interested congressional committees. We will also make copies
           available to others on request. In addition, the report will be
           available at no charge on the GAO Web site at
           http://www.gao.gov .

If you or your staff have any questions concerning this report, please
contact me at (202) 512-8979 or [email protected] . Contact points for
our Offices of Congressional

Relations and Public Affairs may be found on the last page of this report.
Key contributors to this report include Muriel Forster, Assistant
Director; Lynn Cothern; Howard Cott; Martin De Alteriis; Drew Lindsey; and
Grace Lui.

Sincerely yours,

Joseph A. Christoff
Director, International Affairs and Trade

Enclosures

Enclosure I

Section 1206 Security Assistance
Briefing for Senate Foreign Relations Committee Staff
December 14, 2006

Enclosure II

Section 1206 Fiscal Year 2006 Project Descriptions

(Dollars in millions)

Project name            Countries      Project description/Objectives      
                           involved                                           
                                          Provides interoperable              
                                          communications and computers with   
Caribbean Basin:        Dominican      training and technical support to   
Forward Defense of the  Republic,      establish a joint maritime command, 
U.S. Homeland ($14.4)   Panama         control, and communications         
                                          architecture to support             
                                          counterterrorism operations.        
                                          Establishes a Regional Maritime     
Gulf of Guinea:         Nigeria,       Awareness Capability through the    
Countering Threats to                  use of commercially available       
U.S. Energy Security    Sao Tome and   equipment; promotes stability and   
($6.8)                  Principe       enhances counterterrorism           
                                          capabilities.                       
                                          Assists in developing an Integrated 
Indonesia: Securing                    Maritime Surveillance System to     
Strategic Sea Lanes     Indonesia      support maritime security in        
($18.4)                                Indonesia, including the Malacca    
                                          Strait, and facilitates             
                                          counterterrorism operations.        
                                          Helps the Lebanese Armed Forces     
Lebanon: Reducing                      bolster the government of Lebanon's 
Hezbollah's Operational Lebanon        ability to exert control over its   
Space ($10.5)                          territory and reduce the            
                                          operational space of militias such  
                                          as Hezbollah.                       
                                          Helps develop integrated rotary     
                                          wing assets capable of expediting   
                                          the receipt, analysis, and          
                                          dissemination of intelligence.      
Pakistan: Improving                    Facilitates the rapid planning and  
Counterterrorism Strike Pakistan       execution of Pakistani              
Capabilities ($23.3)                   counterterrorist special operations 
                                          raids in the Federally Administered 
                                          Tribal Areas and border region to   
                                          fight terrorists and anti-coalition 
                                          militants.                          
Sri Lanka: Reducing                    Promotes the development of a       
Ungoverned Maritime     Sri Lanka      Counterterrorism Maritime Security  
Spaces ($10.9)                         Capability.                         
Thailand: Securing                     Helps establish an intelligence     
Strategic                              fusion hub critically located on    
                           Thailand       the Andaman Sea to support Royal    
Sea Lanes ($5.3)                       Thai Navy operations and enhance    
                                          counterterrorism capabilities.a     
                                          Helps develop a secure              
                                          multinational information sharing   
Trans-Sahara African    Algeria, Chad, network to share and store          
Countries: Securing the Morocco,       information effectively. Enables    
Region Against          Nigeria,       countries to act on information     
Terrorists ($6.2)       Senegal,       that is essential to disrupt and    
                           Tunisia        attack terrorist networks, and      
                                          conduct peace and security          
                                          operations.                         
Yemen: Countering                      Helps increase the capability of    
Cross-Border Terrorist  Yemen          the Yemeni Armed Forces to prevent  
Activity ($4.3)                        cross-border arms trafficking and   
                                          helps suppress terrorist activity.  

Source: DOD

aThis project was canceled in September 2006 because of a coup in
Thailand. When the project was canceled, $5.3 million had already been
contracted for equipment. According to the Defense Security Cooperation
Agency, the disposition of this equipment had not been determined.

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