	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 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. DHS  agreed with our recommendation and stated that it planned to evaluate  the most effective path forward to guide uniform treatment of R&D across  the department in compliance with OMB rules and was considering a  management directive, multi-component steering committee, or new  policy guidance to help better oversee and coordinate R&D. 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. As of July 2014, DHS has not developed new policy guidance but is  conducting portfolio reviews across the department, as directed in  committee reports accompanying the fiscal year 2013 DHS appropriation  act, aimed at coordinating R&D activities.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 Border and Maritime R&D deliverables at an  estimated cost of $177 million from fiscal years 2010 through 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. As we reported in September 2013, R&D customers we met with had  mixed views on the impact of the R&D deliverables they received. The National Academy of Sciences  has stated that feedback from both R&D failures and successes may be  communicated to stakeholders and used to modify future investments.At the time of our report, S&T had not established timeframes and  milestones for collecting and evaluating feedback from its customers on  the extent to which the deliverables it provides were meeting its  customer’s needs. As a result, we recommended that S&T establish timeframes 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 it was developing R&D strategies with  DHS components, which would include a strategic assessment of  components’ R&D needs and updated annually on the basis of customer  feedback. 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 including securing the border, and detecting nuclear material among others. 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 feedback on these efforts. This statement is based on GAO's previously issued work from September 2012 to September 2013, and selected updates conducted in July 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 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 & 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 reported it was difficult to identify all R&D investments across the department because 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 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 July 2014, had updated its guidance to include a definition of R&D but had not yet determined the most effective path to guide R&D across the department. 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, which 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 July 2014, S&T has not developed new policy guidance but 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 year 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 timeframes for collecting and evaluating feedback on the extent to which deliverables met customers' needs. GAO recommended that S&T collect such feedback from its customers to better determine the usefulness and impact of its R&D projects and deliverables and make better-informed decisions regarding future work. As of July 2014, DHS had taken steps to address this recommendation, including making plans to gather customer feedback. 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 collect and evaluate feedback from its customers. DHS concurred with GAO's recommendations and has actions underway to address them.