	DHS Does Not Know Its Total Investment in R&D, but Has Taken Some Steps to Update Guidance

In September 2012, we found that DHS did not know how much its  components have invested in R&D, making it difficult to oversee R&D  efforts across the department. According to DHS budget officials, S&T,  DNDO, and the U.S. Coast Guard were the only components that  conducted R&D, and we found that they were the only components that  reported budget authority, obligations, or outlays for R&D activities to  OMB as part of the budget process. Specifically, for fiscal year 2011, we identified  an additional $255 million in R&D obligations by other DHS components. We also reported in September 2012 that DHS did not have a  department-wide policy defining R&D or guidance directing components  how to report R&D activities. As of September  2014, DHS has updated its guidance to include a definition of R&D, but,  as discussed in more detail below, efforts to develop a specific policy  outlining R&D roles and responsibilities and a process for overseeing and  coordinating R&D with other offices remain ongoing and have not yet  been completed. We will continue to monitor DHS’s efforts to implement  these recommendations. S&T Has Taken Some Actions to Coordinate R&D across DHS, but R&D Activities Are Fragmented and Overlapping

We reported in September 2012 that the Homeland Security Act of 2002  provides S&T with the responsibility for, among other things, coordinating  and integrating all research, development, demonstration, testing, and  evaluation activities within DHS and establishing and administering the  primary R&D activities of the department. While we did not identify instances of unnecessary duplication among  these contracts, in September 2012, we found that DHS had not  developed a policy defining who is responsible for coordinating R&D  activities at DHS that could help prevent overlap, fragmentation, or  unnecessary duplication and did not have tracking mechanisms or  policies to help ensure that overlap is avoided and efforts are better  coordinated consistent with Standards for Internal Control in the Federal  Government. According to S&T, the Office of National  Laboratories’ ability to provide information on activities across the  department is limited by components inconsistently operating within the  defined process for working with the national laboratories. As a result, we recommended that DHS develop and implement policies  and guidance for overseeing R&D that includes, among other things, a  description of the department’s process and roles and responsibilities for  overseeing and coordinating R&D investments and efforts, and a  mechanism to track existing R&D projects and their associated costs  across the department. According to DHS officials, the department implemented an R&D portfolio  review process, as directed by committee reports accompanying the fiscal  year 2013 DHS appropriations act, which is aimed at better coordinating  R&D activities by reviewing components’ individual R&D projects. Furthermore, to better define and manage R&D  across the department, DHS should also establish a mechanism to track  R&D projects and costs, as we recommended. Fully implementing our  recommendation to develop a policy that defines roles and responsibilities  for coordinating R&D and coordination processes, as well as a  mechanism that tracks all DHS R&D projects, could better position DHS  to mitigate the risk of overlapping and unnecessarily duplicative R&D  projects. We will continue to monitor DHS’s efforts to develop a policy to  better coordinate and track R&D activities at the department. S&T Has Taken Steps to Obtain Feedback and Evaluate the Impact of Its Border and Maritime R&D Efforts

		Costs and Types of Completed Border and Maritime R&D Projects Varied

In September 2013, we reported that DHS S&T, Coast Guard, and DNDO  reported producing 97 R&D deliverables at an estimated cost of $177  million between fiscal years 2010 and 2012. The type of border and  maritime R&D deliverables produced by these R&D entities were wide  ranging in their cost and scale, and included knowledge products and  reports, technology prototypes, and software. At the time of our report, S&T had not established  time frames and milestones for collecting and evaluating feedback from  its customers on the extent to which the deliverables it provides were  meeting its customers’ needs. As a result, we recommended that S&T establish time frames and  milestones for collecting and evaluating feedback from its customers to  determine the usefulness and impact of both its R&D projects and project  deliverables, and use it to make better-informed decisions regarding  future work. S&T officials concurred with the recommendation at the time  of our review, and reported that S&T was developing R&D strategies with  DHS components that would include strategic assessments of  components’ R&D needs and be updated annually on the basis of  customer feedback. As of September 2014, S&T has completed strategic  plans with Border Patrol, the Transportation Security Administration  (TSA), and the Secret Service. We will continue to monitor DHS’s  efforts in this area.
Why GAO Did This Study

Conducting R&D on technologies for detecting, preventing, and mitigating terrorist threats is vital to enhancing the security of the nation. Since its creation, DHS has spent billions of dollars researching and developing technologies used to support its missions. Within DHS, S&T conducts and is responsible for coordinating R&D across the department. Other components also conduct R&D to support their respective missions.
This statement discusses (1) how much DHS invests in R&D and the extent to which DHS has policies and guidance for defining and overseeing its R&D efforts across the department, (2) the extent to which R&D is coordinated across DHS, and (3) the results of DHS border and maritime security R&D efforts and the extent to which DHS has obtained and evaluated feedback on these efforts. This statement is based on GAO's previously issued work from September 2012 to July 2014, and selected updates conducted in September 2014 on the status of GAO's prior recommendations. To conduct the updates, GAO reviewed agency documentation.

What GAO Found

In September 2012, GAO reported that the Department of Homeland Security (DHS) did not know the total amount its components had invested in research and development (R&D) and did not have policies and guidance for defining R&D and overseeing R&D resources across the department. According to DHS, its Science and Technology Directorate (S&T), Domestic Nuclear Detection Office (DNDO), and Coast Guard were the only components that conducted R&D, and GAO found that these were the only components that reported budget authority, obligations, or outlays for R&D activities to the Office of Management and Budget. However, GAO identified an additional $255 million in R&D obligations made by other DHS components. At the time of GAO's review, DHS did not have a department-wide policy defining R&D or guidance directing components how to report all R&D activities. GAO recommended that DHS develop policies and guidance to assist components in better understanding how to report R&D activities and better position DHS to determine R&D investments. DHS concurred with the recommendation and, as of September 2014, had updated its guidance to include a definition of R&D but efforts to develop a process for coordinating R&D with other offices remain ongoing and have not yet been completed. GAO will continue to monitor DHS's efforts to develop its approach for overseeing R&D at the department.
GAO also reported in September 2012 that S&T had taken some steps to coordinate R&D efforts across DHS, but the department's R&D efforts were fragmented and overlapping, a fact that increased the risk of unnecessary duplication. GAO recommended that DHS develop a policy defining roles and responsibilities for coordinating R&D and establish a mechanism to track all R&D projects to help DHS mitigate existing fragmentation and overlap and reduce the risk of unnecessary duplication. DHS concurred with the recommendation. As of September 2014, S&T has not fully implemented new policy guidance but, according to S&T, is conducting portfolio reviews across the department, as directed by the fiscal year 2013 appropriations act, aimed at coordinating R&D activities. GAO will continue to monitor DHS's efforts to develop a policy to better coordinate and track R&D activities at the department.
In September 2013, GAO reported that DHS border and maritime R&D components reported producing 97 R&D deliverables from fiscal years 2010 through 2012 at an estimated cost of $177 million. GAO found that the type of border and maritime R&D deliverables produced by S&T, the Coast Guard, and DNDO varied, and R&D customers GAO met with had mixed views on the impact of the deliverables. These deliverables included knowledge products and reports, technology prototypes, and software. For example, S&T developed prototype radar and video systems for use by Border Patrol. However, GAO reported that S&T had not established time frames and milestones for collecting and evaluating feedback on the extent to which deliverables met customers' needs. GAO recommended that S&T establish time frames and milestones for collecting and evaluating such feedback from its customers to better determine the usefulness and impact of its R&D projects and make better-informed decisions regarding future work. As of September 2014, DHS had taken steps to address this recommendation, including making plans to gather customer feedback on a more consistent basis. GAO will continue to monitor DHS's efforts in this area.

What GAO Recommends

In its prior reports, GAO recommended, among other things, that DHS develop policies and guidance for defining, overseeing, coordinating, and tracking R&D activities across the department, and that S&T establish time frames and milestones for collecting and evaluating feedback from its customers. DHS concurred with GAO's recommendations and has actions underway to address them.