State Department: Overseas Emergency Security Program Progressing, But
Costs Are Increasing (Letter Report, 03/08/2000, GAO/NSIAD-00-83).

Pursuant to a congressional request, GAO described the Department of
State's Overseas Emergency Security Program, focusing on: (1) progress
that State has made in implementing the program funded by the emergency
supplemental appropriations and the challenges State faces in completing
the program; and (2) State's long-term capital construction program and
its response to a study on overseas presence in follow-on reports.

GAO noted that: (1) State has made progress in implementing the program
funded by the emergency supplemental appropriations to improve security
overseas; (2) State has reestablished embassy operations in interim
office buildings in Nairobi, Kenya, and Dar es Salaam, Tanzania, and
signed a contract for construction of new embassy compounds that are
scheduled for completion in 2003 at a cost of about $119 million; (3)
projects to relocate several other embassies and consulates are also
underway; (4) however the current cost estimates for the construction of
new embassies in Kampala, Uganda, Zagreb, Croatia, and Doha, Qatar, are
about $122 million, or about $45 million higher than original estimates
due mainly to upgraded security requirements; (5) State has also made
progress in implementing many of its planned security upgrades,
including enhanced vehicle inspection and security guard programs,
hiring additional special agents, and other security staff, and
instituting a new surveillance detection program designed to identify
hostile surveillance activities and potential attackers; (6) however,
projects involving major construction upgrades to improve security at
over 100 posts are, according to State's estimates, costing more than
was originally estimated and are behind schedule; (7) State estimates
that major security construction upgrades and the installation of
electronic equipment, originally funded at $181 million, are at least 1
year behind schedule and could potentially cost about $800 million more
to complete than originally envisioned due to an increase in
requirements and other factors; (8) to address these additional
requirements, State says it plans to: (a) request additional funds in
its fiscal year 2001 and future budgets; (b) realign funds from other
projects; (c) stretch the program over several years; and (d) where
possible, use less costly contracting methods to achieve project
objectives; and (9) as of December 31, 1999, State had obligated $972
million and expended $445 million of the $1.5 billion emergency
supplemental appropriations.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-00-83
     TITLE:  State Department: Overseas Emergency Security Program
	     Progressing, But Costs Are Increasing
      DATE:  03/08/2000
   SUBJECT:  Facility security
	     Federal facilities
	     Diplomats
	     Americans employed abroad
	     Embassies
	     Government employees
	     Terrorism
	     International relations
	     Cost control
	     Cost analysis
IDENTIFIER:  Nairobi (Kenya)
	     Dar es Salaam (Tanzania)
	     Kampala (Uganda)
	     Zagreb (Croatia)
	     Doha (Qatar)
	     Rio de Janeiro (Brazil)
	     Sao Paulo (Brazil)

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GAO/NSIAD-00-83

Appendix I: Status of State Department Emergency
Supplemental Appropriations Funds

16

Appendix II: Emergency Supplemental Unobligated Balances, by Appropriation

18

Appendix III: Status of Key Security Upgrade Projects

19

Appendix IV: State's Positions Authorized and Filled Under the
Emergency Supplemental, as of December 31, 1999

20

Appendix V: GAO Contacts and Staff Acknowledgments

21

Table 1: Status of Emergency Supplemental Appropriations Funding,
by Major Program, as of December 31, 1999 6

Table 2: Status of Major Projects to Deliver Vehicles and Equipment
to Posts, as of December 1999 9

Figure 1: Status of Emergency Supplemental Appropriations Funds,
as of December 31, 1999 5

Figure 2: Status of State's Key Security Upgrades, as of
December 31, 1999 19

National Security and
International Affairs Division

B-284592

March 8, 2000

The Honorable Jesse Helms
Chairman, Committee on Foreign Relations
United States Senate

Dear Mr. Chairman:

The Department of State has overall responsibility for the security of over
54,000 State and other U.S. agency employees under its authority who are
working in embassies, consulates, and other facilities at more than 250
overseas posts. In response to the August 1998 bombings of the U.S.
embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania, the Congress
provided State with about $1.5 billion in emergency supplemental
appropriations1 to improve security worldwide. Principally, the funds were
to be used to develop an emergency security program that would reestablish
the embassies in Kenya and Tanzania, begin relocating other highest-risk
embassies and consulates, and improve security at embassies and consulates
worldwide.

As requested, this report describes the progress that State has made in
implementing the program funded by the emergency supplemental appropriations
and the challenges the Department faces in completing the program. As agreed
with your office, we will report on State's long-term capital construction
program and its response to a study on overseas presence in follow-on
reports.2

State has made progress in implementing the program funded by the emergency
supplemental appropriations to improve security overseas. State has
reestablished embassy operations in interim office buildings in Nairobi,
Kenya, and Dar es Salaam, Tanzania, and signed a contract for construction
of new embassy compounds that are scheduled for completion in 2003 at a cost
of about $119 million. Projects to relocate several other embassies and
consulates are also underway. However, the current cost estimates for the
construction of new embassies in Kampala, Uganda; Zagreb, Croatia; and Doha,
Qatar, are about $122 million, or about $45 million higher than original
estimates due mainly to upgraded security requirements.

State has also made progress in implementing many of its planned security
upgrades, including enhancing vehicle inspection and security guard
programs, hiring additional special agents and other security staff, and
instituting a new surveillance detection program designed to identify
hostile surveillance activities and potential attackers. However, projects
involving major construction upgrades to improve security at over 100 posts
are, according to State's estimates, costing more than was originally
estimated and are behind schedule. State estimates that major security
construction upgrades and the installation of electronic equipment,
originally funded at $181 million, are at least 1 year behind schedule and
could potentially cost about $800 million more to complete than originally
envisioned due to an increase in requirements and other factors. To address
these additional requirements, State says it plans to request additional
funds in its fiscal year 2001 and future budgets; realign funds from other
projects; stretch the program over several years; and/or, where possible,
use less costly contracting methods to achieve project objectives. As of
December 31, 1999, State had obligated $972 million and expended
$445 million of the $1.5 billion emergency supplemental appropriations.

Immediately after the bombings in Africa, State developed its emergency
security program based on information gathered from several sources and
determined that it would need about $1.5 billion to address the damaged
embassies, enhance security at all its overseas facilities, and pursue
related activities. State subsequently deployed teams to Kenya and Tanzania
to assess the damage firsthand and make cost estimates on replacement and
temporary facilities. It also sent teams to over 30 other high-risk
countries to assess threats and possible options to reduce them. Those
teams, in coordination with State's overseas security officers, chiefs of
missions, and other officials, helped State further define its security
enhancement requirements and estimate the costs for upgrading existing
facilities worldwide.

As requested, State received about $1.5 billion from the Congress to improve
security. These funds were used to achieve three major objectives:
rebuilding the destroyed embassies, start relocating and building new
facilities at high-risk posts, and upgrading security at all posts. Through
December 1999, State had obligated $972 million of the $1.494 billion
appropriated for the emergency supplemental program and had expended about
$445 million of these funds. (See fig.1.)

Figure 1: Status of Emergency Supplemental Appropriations Funds, as of
December 31, 1999

Source: Department of State.

The majority of funds were allotted to various security upgrade projects
designed to improve security at all posts. These projects include providing
new security equipment, personnel, and training, and making perimeter
security improvements to embassy and consulate buildings only. Table 1
provides a breakdown of program funds by the three major program objectives.

Table 1: Status of Emergency Supplemental Appropriations Funding, by Major
Program, as of December 31, 1999

 Dollars in millions
                           Allocated  Obligated  Expended
 Nairobi and Dar es Salaam $163.5     $95.2      $27.4
 Relocate high-risk posts  185.0      90.5       11.6
 Other security upgrades   1,145.5    786.4      406.0
 Total                     $1,494.0   $972.1     $445.0

Source: Department of State.

Appendix I provides additional information on the status of the emergency
security supplemental funds, highlighting obligations and expenditures by
State's bureaus and offices, as of December 31, 1999. Appendix II provides
information on unobligated balances by key appropriation accounts.

State has structured the emergency security program to lay the groundwork
for a major embassy construction program as recommended by two
Accountability Review Boards on the Embassy Bombings in Nairobi and Dar es
Salaam.3 The Secretary of State convened the boards in October 1998 to
review the circumstances regarding the bombings. In January 1999, the boards
made recommendations to State that dealt with the handling of terrorist
threats, the review and revision of security standards and procedures, the
size and composition of U.S. missions, and the need for adequate and
sustained funding for safe buildings and security programs in the future.
The boards recommended that, for each of the next 10 years,
$1 billion for capital construction and $0.4 billion for other
security-related activities be appropriated to State. The fiscal year 2000
budget included $254 million in Diplomatic and Consular Programs and $314
million in Security and Maintenance of U.S. Missions for worldwide
security-related upgrades, capital projects, and recurring support costs.
State is relying on appropriations received in fiscal year 2000 to complete
some of the construction projects started under the emergency security
supplemental appropriations and on future appropriations beyond fiscal year
2000 to begin new ones.

State's top priority after the bombings in Africa was to rapidly reestablish
operations and rebuild the embassy communities in Nairobi and Dar es Salaam.
In Nairobi, the embassy temporarily moved into the offices of the U.S.
Agency for International Development until an office building, located in
the city's suburbs, could be renovated to better meet the Department's
short-term needs. State opened the interim embassy in August 1999. In Dar es
Salaam, State converted a residential compound into functional, secure
office space. The interim facility opened in February 1999. These interim
facilities are providing offices for embassy staff until 2003 when State
expects to complete construction of new office building compounds that fully
meet security standards.

State estimates that it will cost about $119 million to build new embassy
compounds in Nairobi and Dar es Salaam. According to State officials,
construction of the new embassy office compounds will take about 3 years to
complete once the designs are finished; occupancy for State and most other
agencies is scheduled for 2003.

State allocated $185 million in emergency supplemental funds to relocate,
replace, and/or construct new facilities at some high-risk posts. State did
not identify which posts would be replaced in its emergency supplemental
program request but subsequently determined that it would use these funds
for security construction projects in Doha, Qatar; Istanbul, Turkey;
Kampala, Uganda; Rio de Janeiro and Sao Paulo, Brazil; Tunis, Tunisia; and
Zagreb, Croatia. By December 31, 1999, State had obligated $91 million and
expended $11.6 million. It had awarded design/build contracts for new
embassies in Kampala and Zagreb, begun the renovation of a new office
building in Doha, and relocated embassy operations in Doha to a safer and
more secure interim facility. It also selected architects and/or begun
negotiations for building sites in Istanbul, Sao Paulo, Rio de Janeiro, and
Tunis. State said it planned to use funds received in fiscal year 2000 and
beyond to continue these new construction projects. State received over $300
million in fiscal year 2000 and requested $500 million, including
$50 million for U.S. Agency for International Development facilities to be
co-located on State compounds, in its fiscal year 2001 budget for worldwide
security capital projects.

Our analysis of State's planning documents for Kampala, Zagreb, and Doha
revealed that completion of these projects is likely to cost about $45
million more than the $77 million that State had initially estimated. State
attributed the potential cost increases to several factors, including
revised staffing estimates, more stringent security requirements, and
additional project management support costs.

Higher Than Expected, and Some Projects Behind Schedule

State allocated most of the emergency supplemental (about $1.1 billion) to
upgrade security at its more than 250 embassies and consular posts. The
Department used these funds to implement a number of security upgrade
projects. The larger, high-cost projects include (1) providing additional
vehicles and security equipment, (2) improving security with more personnel
and training, and (3) performing construction enhancements to upgrade
perimeter security. The Department expects to install much of the equipment
and implement most of the personnel and training projects by the end of the
year 2000. In addition, many construction enhancements are underway, but
unanticipated costs are being encountered for larger construction security
upgrades and certain equipment. According to State documents, it had
originally budgeted $181 million for these activities. Additional
requirements could amount to $800 million, and projects are behind schedule.
Appendix III highlights the status of some of the key projects discussed in
detail in the following text.

Equipment, Radios, and Phones Are Mostly on Track

Major projects to purchase and deliver lightly armored vehicles, fully
armored vehicles, bomb detection equipment, x-ray equipment, and satellite
phones and local emergency evacuation radio systems are generally on track.
The bomb detection and x-ray equipment projects also include installation
and related training on the use of the equipment. The Department expects to
complete the lightly armored vehicles and bomb detection projects by
September 2000 and expects to deliver all fully armored vehicles to 153
overseas posts by December 2000. Table 2 provides the status of these
projects.

Table 2: Status of Major Projects to Deliver Vehicles and Equipment to
Posts, as of December 1999

 Dollars in millions

            Total     Estimated   Number of  Number    Number of Number of
 Projects   project   completion  items      of items  posts to  posts that
            funding   date        required   shipped   receive   received
                                  by posts             items     itemsa
 Lightly
 armored    $59.7     9/30/00     799        248       243       80
 vehicles
 Fully
 armored    $28.1     12/31/00    231        60        153       12
 vehicles
 Bomb
 detection  $28.7     9/30/00     720        324       240       136
 equipment
 X-ray
 equipment  $21.5     9/30/01b    289        200       176       131

aIncludes partial shipment of items.

bMost of this project is scheduled for completion by September 30, 2000.
Delays are being encountered at posts undergoing major construction upgrades
(see p. 12).

Source: Department of State.

The Department has faced several challenges in managing these projects. For
example, to obtain fully armored sedans, the Department had to get a waiver
from federal acquisition regulations to purchase them from a foreign
supplier because no U.S. manufacturer had the capability to produce them.4
For lightly armored vehicles, one company added another armoring production
line to overcome earlier delays to ensure that all vehicles would be
delivered on schedule. Further, some items shipped to posts sometimes
require training on the use of the equipment and modification before they
can be used effectively. In one case, we were told that the bomb detectors
shipped to Mexico City needed to be adjusted because the high altitude and
pollution were causing false readings. The manufacturer is working to
correct this problem.

State has also made progress in implementing another significant emergency
security program−the fielding of satellite phones and local emergency
and evacuation radio systems to overseas posts. As of October 1999, State
had completed surveys of telecommunications requirements at all posts,
deployed 950 satellite phones, and received 114 of 233 planned host-nation
approvals for wireless programs. Problems have been encountered in obtaining
additional host-country approvals for radio frequencies, but, according to
State, the greater use of satellite systems has proved to be a workable
solution. Progress in other programs has included providing video recorders
and Imminent Danger Notification Systems to all posts and the purchase of
upgraded computer equipment for security operations at 190 posts (scheduled
for installation by June 2000).

The Department added more personnel and increased training to improve
security, including upgrading local guard capabilities, increasing vehicle
inspection efforts, and instituting a surveillance detection project. In
addition, State began a major project to hire and train additional security
personnel, many of whom were deployed overseas. The status of these and
other projects is as follows:

ï¿½ By September 1999, the Department allocated all of its planned
$66 million to upgrade perimeter security and vehicle inspections at
overseas posts. The Department increased the number of overseas guards and
provided them with more radios, vehicles, and other equipment. The
Department has also completed the expansion of its project to inspect
vehicles entering State facilities primarily by hiring and training
additional local guards.

ï¿½ The Department was provided with $53.7 million to recruit and hire 397
additional staff to enhance security at overseas posts (see app. IV). To
date, the Department has hired nearly all additional staff, including 200
special agents and 17 security engineers. According to Department officials,
as of December 1999, 79 special agents have been deployed overseas.

ï¿½ State's Foreign Service Institute provided crisis management training in
fiscal year 1999 at more than 100 posts, including training for over 1,600
Americans and 1,400 foreign nationals and incorporated crisis management
modules in domestic training. This training, costing about $1.6 million,
helped posts test emergency action plans and fully define the resources
available in a crisis. The Institute also established communications
training and recovery assistance courses.

The $75 million surveillance detection project is one of State's most
important and innovative. The overall goal is to hire and train personnel to
detect suspicious surveillance activities. The project is designed to
enhance the likelihood of preventing attacks by training staff to recognize
hostile surveillance directed at personnel and facilities and provide
support if an attack occurs. Surveillance detection projects have been
established at 154 posts, and Department officials expect that training for
most posts will be completed by April 2000. Department officials told us
that all posts have at least been made aware of the importance of the
projects and the techniques involved in detecting hostile activity.
Officials also said that the project has already identified suspicious
activities at several posts around the world.

State has encountered some obstacles in implementing its surveillance
detection project, largely due to resistance from some host governments.
State officials said that under existing international treaties, State could
not implement the project without host government approval. We found that 10
posts have been unable to institute a surveillance detection program because
the host government opposes the project, which potentially lessens the
ability of these posts to detect hostile activity. State officials said that
the Department is continuing to engage host country officials to overcome
their opposition and continues to employ a number of alternate security
countermeasures. These include installing closed circuit television
monitors, providing security awareness training of employees, and providing
training of local guards. State officials told us that although they are
unable to implement fully the surveillance detection projects at these
posts, all local guards receive training in the techniques to detect
potential hostile activity.

Shatter-resistant Window Film, and Acquisition of Perimeter Property in
Various Stages of Implementation

State allocated $99 million for post-managed construction security and other
upgrades that are in various stages of implementation. These included the
funding of (1) post- managed construction improvements, such as the purchase
of planters as barricades and (2) the installation of shatter-resistant
window film at embassies/office buildings and residences. In addition, funds
were used to acquire adjacent property to increase the distance from the
building to the perimeter wall or fence at certain posts. According to State
documents, as of December 1999, approximately
22 percent of these security construction upgrade projects, exclusive of
property acquisition, had been completed. The status of these projects as of
December 1999, was as follows:

ï¿½ State has completed 221 of the over 500 planned post-managed construction
projects. State anticipates that all of these projects will be completed by
September 2000.

ï¿½ State reported that 240 posts needed installation of shatter-resistant
window film at office buildings and/or residences. Work installing film at
both office buildings and at residences had been completed at 27 posts.
Installations of window film, alarms, window grills, and/or other security
enhancements at residences had been completed at 130 posts.

ï¿½ State has acquired additional property at 19 posts to improve security.
These acquisitions included vacant lots, additional parking spaces, and, at
one post, an adjacent gas station. Acquisitions at seven posts resulted in
100 percent compliance with security setback standards. Acquisition of other
properties is an ongoing challenge due to difficulties in negotiating with
property sellers and related problems.

To help manage the increased workload associated with implementing
construction and real property-related projects funded by the supplemental
appropriation, State planned to hire additional staff and contractors. In
fiscal year 1999, State had filled 16 of 20 planned direct-hire positions
and 24 of 44 personal services contractor positions. State has since filled
many of the remaining slots.

State's program to do major construction upgrades at 119 posts will cost
significantly more and take longer than originally planned due to inadequate
information on posts' security requirements and understated project costs.
Posts' major construction-related security improvements typically include
the need for vehicle barriers, compound access control centers, walls, and
fences. State originally planned for most of the work to be done by the
posts and budgeted an estimated $113 million for the enhancements. State
subsequently determined that the work exceeded posts' ability to manage with
existing resources, and two U.S. contractors were selected to do the
upgrades. According to State officials, this change in approach contributed
to the increase in costs. Contractors' initial proposals to complete the
planned upgrades and newly identified additional requirements demonstrated
that State's original August 1998 estimates were underestimated by over $500
million.

According to State documents, the contractors were expected to perform a
"fast-track delivery" of improvements at multiple facilities. The
contractors were to survey 119 posts to validate the need for security
enhancements, make cost proposals for doing the work, and do the work once
State and the contractors agreed on a final scope of work and cost for each
post upgrade. All surveys were scheduled to be completed by September 1999.
The surveys were required to validate security enhancement needs and make
cost proposals for doing the work. Because of unanticipated costs, the
survey portion of this program was suspended as of September 1999, after 75
posts had been surveyed. In December 1999, State estimated that it might
cost about $571 million more than the amount originally budgeted to complete
the construction-related enhancements. The installation of electronic
security equipment linked to the construction upgrades is also behind
schedule and estimated to cost more. This includes installing equipment such
as perimeter alarms, door locks, VCR/cameras, lights, and control switches.
Original cost estimates to upgrade electronic security equipment at these
and other posts was $68 million. State now estimates it will need an
additional $229 million to purchase and install additional electronic and
technical security equipment.

As of December 1999, only one major construction upgrade project overseas
had been completed, and seven were in the construction or design/build
stage. State plans to initiate construction of at least 20 posts' major
upgrades by April 2000, and officials estimate that current funding levels
are probably sufficient to complete major upgrade projects at between 20 and
40 posts, far short of the 119 planned. According to State's fiscal year
2001 budget submission, the Department has requested additional funding for
construction and equipment totaling $200 million and anticipates additional
requests in future budget submissions. State anticipates that some of the
costs may be met by realigning funds from other emergency supplemental
program components. State also hopes to reduce costs through negotiations
with contractors on individual post projects. The major upgrade program is
at least 1 year behind schedule. State projects that it may take up to 4
years to complete the program, depending on the flow of funds and other
factors.

According to State officials, one of the major factors contributing to
State's underestimating its funding needs for the major construction
upgrades was that the emergency supplemental request was prepared within a
few days after the August 1998 bombings in Africa and without complete
information on the condition of embassies and consulates or the costs
involved in making improvements. Although State's security officers and
other personnel periodically document overseas security conditions, State
had not established a central information system capturing the condition or
extent to which overseas facilities meet security standards. In the absence
of this information, total worldwide security enhancement requirements and
potential costs were not fully known. Further, State is also unable to
easily determine the extent to which security upgrades have been implemented
at all of its overseas posts. To help correct this deficiency, State has
hired a contractor to develop a worldwide, automated security tracking
system, but it will take several years to include updated data on all key
facilities under State's security program.

The Department of State's Assistant Secretary, Bureau of Administration, and
the Chief Financial Officer provided oral comments on a draft of this
report. State officials commented that they have made considerable progress
implementing many of the planned security enhancements but agreed that
certain components of the overall program will cost more than originally
estimated. These officials reiterated that the higher program costs
identified in the report are primarily the result of additional requirements
identified after the request for the emergency appropriation was submitted
to the Congress and approved. We incorporated technical comments and updated
figures provided by State officials into the report where appropriate.

To discuss the progress made by State in its security enhancement program
and the challenges the Department faces implementing the program, we met
with officials in State's Bureau of Diplomatic Security, which has
responsibility for overseas security; the Office of Foreign Buildings
Operations, which has responsibility for construction and other real
property activities overseas; and other units in the Department. We
coordinated our work with State's Office of Inspector General, which is
monitoring and reporting internally on various aspects of the emergency
supplemental program. In addition to developing overall information on the
status of emergency supplemental programs, we conducted detailed analyses of
the highest-cost projects intended to provide security equipment and
personnel to posts. We did not validate State's planned or projected cost
estimates or the scope of its security requirements.

We also conducted detailed analysis of State documents related to project
status and issues for 12 overseas posts. These posts were selected based on
several factors, including size, mission, and location. The posts were
Bridgetown, Barbados; Rio de Janeiro, Brazil; Santo Domingo, Dominican
Republic; Paris, France; New Delhi, India; Mexico City, Mexico; Maputo,
Mozambique; Manila, the Philippines; Doha, Qatar; Bangkok, Thailand; Tunis,
Tunisia; and Istanbul, Turkey. We conducted on-site work at the U.S. embassy
in Mexico City in September 1999, observing one of State's implementation
contractors that was surveying the post for security upgrades.

We also met with officials of other key agencies operating overseas,
including the U.S. Agency for International Development and the Departments
of Commerce and Agriculture, to obtain their views on security issues
affecting their overseas operations.

We conducted our review from June 1999 through January 2000 in accordance
with generally accepted government auditing standards.

We are sending copies of this report to interested congressional committees.
We are also sending copies to the Honorable Madeleine K. Albright, the
Secretary of State. We will make copies available to others upon request.

Please contact me at (202) 512-4128 if you or any members of your staff have
any questions concerning this report. Other GAO contacts and staff
acknowledgments are listed in appendix V.

Sincerely yours,

Benjamin F. Nelson
Director, International Relations
and Trade Issues

Status of State Department Emergency
Supplemental Appropriations Funds

The Department of State requested and the Congress appropriated
$1.49 billion in emergency supplemental funds. Of this amount, State
provided $627 million to its Bureau of Administration's Office of Foreign
Buildings Operations, which has responsibility for construction and other
overseas real property activities. State budgeted $588 million for the
Bureau of Diplomatic Security, which has responsibility for providing for
the protection of personnel and facilities abroad, to include the provision
of local guards, regional and post security officers, and security
equipment. An additional $118 million in supplemental funds was budgeted for
State's Bureau of Information Resource Management for wireless communication
programs for emergency evacuations (radios and satellite phones). About $91
million was budgeted for other bureaus and offices for training and other
purposes; the remaining $70 million was appropriated for foreign assistance
purposes (antiterrorism training and economic support). In addition, $56
million was earmarked within the Foreign Buildings appropriation for other
foreign affairs agencies. This included $25 million provided to the U.S.
Agency for International Development.5

Through December 31, 1999, State had obligated about $972 million of the
$1.49 billion appropriation. The Office of Foreign Buildings Operations had
obligated $360 million of its $627 million as of December 31, 1999, and the
Bureau of Diplomatic Security had obligated $382 million of its $588-million
program component. Actual expenditures totaled $83.6 million for the Office
of Foreign Buildings Operations, as of December 31, 1999, and
$236 million for the Bureau of Diplomatic Security, as of December 31, 1999.

State's Information Resource Management program obligated about
$83 million for its radio systems and satellite phone program through
December 31, 1999. As for the Foreign Service Institute, it obligated about
$3 million for various training programs and related activities through
December 31, 1999. Actual expenditures for these two program elements
totaled about $62 million.

Of the $56 million in emergency funds provided to upgrade the security of
other agencies' facilities overseas, $25 million went to the U.S. Agency for
International Development for security improvements to its existing
facilities. According to the agency, 40 of its overseas missions and offices
have inadequate security. The emergency supplemental funds are being used
for several purposes, including relocating to more secure leased facilities,
financing the design of new facilities to be co-located on State's new
office building compounds, and leasing properties to improve setback from
perimeter walls and fences. The agency has identified capital construction
requirements, in addition to the emergency supplemental, for eight overseas
missions, including new separate facilities in Nairobi and Dar es Salaam to
be located on State's new office building compounds. The additional
estimated costs to build the Nairobi and Dar es Salaam facilities total over
$45 million.

Other agencies receiving emergency funds, such as the Departments of
Commerce and Agriculture, got about $8 million each. According to agency
officials, the agencies used the funds to add residential and nonresidential
local guards, to move offices to more secure locations, and to accomplish
other goals.

Emergency Supplemental Unobligated Balances, by Appropriation

 Dollars in thousands
                                              Obligated
 Appropriation                   Appropriated through       Unobligated
                                              Dec. 99       balance
 Diplomatic and consular
 programs                        $773,700     $537,043      $236,657
 Salaries and expenses           12,000       9,113         2,887
 Security and maintenance of
 U.S. missions                   627,000      359,513       267,487
 Nonproliferation,
 antiterrorism, demining, and    20,000       14,017        5,983
 related programs
 Emergencies in the diplomatic
 and consular service            10,000       2,837         7,163
 Office of Inspector General     1,000        829           171
 Economic Support Fund           50,000       48,731        1,269
 Total                           $1,493,700   $972,083      $521,617

Source: Department of State.

Status of Key Security Upgrade Projects

State has nearly completed its project to hire additional security staff,
including local guards and security professionals (see app. IV) and has
finished its project to increase vehicle inspections. Other security upgrade
projects are in various stages of implementation. Figure 2 shows the status
of other key security upgrade projects.

Figure 2: Status of State's Key Security Upgrades, as of December 31, 1999
Source: Department of State.

State's Positions Authorized and Filled Under the Emergency Supplemental, as
of
December 31, 1999

.

 Bureau or office      Positions            Authorized slots Actual hirings
 Diplomatic Security
                       Special agents       200              200
                       Security engineers   17               17
                       Security technicians 34               34
                       Secretaries          20               20
                       Diplomatic couriers  20               20
                       Support              46               46
 Subtotal                                   337              337
 Logistics Management                       13               7
 Information
 Management                                 16               16
 Office of Foreign
 Buildings                                  20               16
 Office of Inspector
 General                                    11               11
 Total                                      397              387

Source: Department of State.

GAO Contacts and Staff Acknowledgments

Jess Ford (202) 512-4268
Diana Glod (202) 647-3369

In addition to those named above, Edward Kennedy, Jesus Martinez, Lynn
Moore, Maria Oliver, Jim Strus, and Ray Wyrsch made key contributions to
this report.

(711421)

Figure 1: Status of Emergency Supplemental Appropriations Funds,
as of December 31, 1999 5

Figure 2: Status of State's Key Security Upgrades, as of
December 31, 1999 19

Table 1: Status of Emergency Supplemental Appropriations Funding,
by Major Program, as of December 31, 1999 6

Table 2: Status of Major Projects to Deliver Vehicles and Equipment
to Posts, as of December 1999 9
  

1. Under the Omnibus Consolidated and Emergency Supplemental Appropriations
Act of 1999 (P.L. 105-277).

2. State established an Overseas Presence Advisory Panel in early 1999 to
examine the size and structure of overseas missions. The panel's November
1999 report contained several recommendations for streamlining overseas
operations.

3. The Accountability Review Boards were established pursuant to 22 U.S.C.
4831-4832.

4. These regulations require federal agencies to buy only U.S.-made products
unless otherwise excepted or waived (48 C.F.R. Part 25 (1998)).

5. This report discusses funds that were appropriated to State in the
Omnibus Consolidated and Emergency Supplemental Appropriations Act of 1999
(P.L. 105-277). The Congress has since appropriated additional funds for
embassy security, as provided in the State Department's appropriations act
for fiscal year 2000 (Department of State and Related Agency Appropriations
Act, 2000, P.L.. 106-113). The latter act also contained the Secure Embassy
Construction and Counterterrorism Act of 1999.
*** End of document. ***