In 2011, we added Interior’s management of federal oil and gas resources  to our list of programs at high risk for waste, fraud, abuse, and  mismanagement in part because Interior continued to experience  problems hiring and retaining sufficient staff to provide oversight and  management of oil gas operations on federal lands and waters. Nonetheless, field office  officials told us that attrition raises concerns because it is not unusual for  some field offices to have only one or two employees in any given  position, meaning that a single retirement or resignation can significantly  affect office operations. At BLM, the fiscal year 2012 attrition rate for  petroleum engineers was over 20 percent, or more than double the  average federal attrition (see fig. Bureau of Labor Statistics data on industry salaries confirm that there is a  wide and growing gap between industry and federal government salaries  for petroleum engineers and geologists (see fig. According to our analysis of Interior hiring data, the average hiring time  for petroleum engineers and inspectors at BOEM and BSEE in recent  months exceeded 180 calendar days (see table 1), and the average hiring  times for these positions at BLM in fiscal year 2012 exceeded 120 days  (see table 2). These hiring times are much longer than OPM’s target of  80 calendar days. Interior Has Taken Some Actions to Address Hiring and Retention Challenges

Interior and the three bureaus—BLM, BOEM, and BSEE—have taken  some actions to address their hiring and retention challenges, such as  actions to increase or supplement salaries to reduce the salary gap and  streamline the hiring process to reduce hiring times. Although the department has taken some  steps to reduce hiring times, it does not have complete and accurate data  on hiring times to identify the causes of delays in the hiring process and  help identify further opportunities for reducing them. For instance, our  assessment of Interior data indicates that Interior’s use of recruitment,  relocation, and retention awards for petroleum engineers and  inspectors—critical positions that the bureaus have had difficulty hiring  and retaining in recent years—has been limited (see tables 3 and 4). For example, BSEE human resources  officials said that, in August 2012, they began collecting hiring data on a  biweekly basis in a spreadsheet and tracking the status of each BOEM  and BSEE job announcement to help track the progress of individual  applicants as they move through the hiring process. Without reliable  data on hiring times, Interior’s bureaus cannot identify how long it takes to  complete individual stages in the hiring process, identify delays, and  implement changes to expedite the hiring process. Officials at the three bureaus cited steps they have taken to address  vacancies in key oil and gas positions, including reassigning staff from  lower-priority to higher-priority tasks, borrowing staff from other offices, or  increasing overtime. Recommendations for Executive Action

To ensure a consistent and comprehensive approach to addressing  BLM’s, BOEM’s, and BSEE’s ongoing hiring and retention challenges, we  recommend the Secretary of the Interior direct the following two actions:
Explore the expanded use of existing authorities, including  recruitment, relocation, and retention incentives to help bridge the  salary gap for key oil and gas oversight positions such as petroleum  engineers, geologists, and geophysicists, and develop clear guidance  for when the use of these incentives are warranted and how the  effectiveness of their use will be assessed. Agency Comments and Our Evaluation

We provided a draft of this report to the Department of the Interior for  review and comment. Interior generally agreed with our findings and  concurred with both recommendations. GAO staff who made key contributions to this  report are listed in appendix V.

Appendix I: Objectives, Scope, and Methodology

This report examines (1) the extent to which Interior continues to face  challenges hiring and retaining key oil and gas staff and the causes of  these challenges; (2) Interior’s efforts to address its hiring and retention  challenges; and (3) the effects, if any, of hiring and retention challenges  on Interior’s oversight of oil and gas activities. We also  interviewed officials from Interior’s bureaus responsible for oil and gas  oversight—the Bureau of Land Management (BLM), the Bureau of Ocean  Energy Management (BOEM), and the Bureau of Safety and  Environmental Enforcement (BSEE). Appendix II: Survey of Interior’s Field Offices on the Challenges to Hire and Retain Staff to Oversee Oil and Gas Activities

As part of our assessment of the challenges that Interior’s field offices  continue to face hiring and retaining key oil and gas oversight staff and  the effects of these challenges on oversight, we surveyed officials from 44  field offices that have oil and gas management responsibilities on (1) the  extent of these challenges, (2) the factors affecting hiring and retention,  and (3) the effects of hiring and retention challenges on oil and gas  oversight.
Why GAO Did This Study

Interior employs a wide range of highly-trained specialists and scientists with key skills to oversee oil and gas operations on leased federal lands and waters. GAO and others have reported that Interior has faced challenges hiring and retaining sufficient staff to carry out these responsibilities. In February 2011, GAO added Interior's management of federal oil and gas resources to its list of programs at high risk of fraud, waste, abuse, and mismanagement in part because of Interior's long-standing and continued human capital challenges.
GAO was asked to update the status of Interior's human capital challenges. This report examines: (1) the extent to which Interior continues to face challenges hiring and retaining key oil and gas staff and the causes of these challenges; (2) Interior's efforts to address its hiring and retention challenges; and (3) the effects of hiring and retention challenges on Interior's oversight of oil and gas activities. GAO surveyed 44 Interior offices that oversee oil and gas operations of which 40 responded; analyzed offshore inspection records and other documents; and interviewed agency officials.

What GAO Found

The Department of the Interior (Interior) continues to face challenges hiring and retaining staff with key skills needed to manage and oversee oil and gas operations on federal leases. Interior officials noted two major factors that contribute to challenges in hiring and retaining staff: lower salaries and a slow hiring process compared with similar positions in industry. In response to GAO's survey, officials from a majority of the offices in the three Interior bureaus that manage oil and gas activities--the Bureau of Land Management (BLM), the Bureau of Ocean Energy Management (BOEM), and the Bureau of Safety and Environmental Enforcement (BSEE)--reported ongoing difficulties filling vacancies, particularly for petroleum engineers and geologists. Many of these officials also reported that retention is an ongoing concern as staff leave for positions in industry. Bureau of Labor Statistics data confirm a wide gap between industry and federal salaries for petroleum engineers and geologists. According to Office of Personnel Management (OPM) data, the fiscal year 2012 attrition rate for petroleum engineers at BLM was over 20 percent, or more than double the average federal attrition rate of 9.1 percent. However, the attrition rate for other key oil and gas staff during fiscal year 2012 was lower than the federal average. Nonetheless, field office officials stated that attrition is of concern because some field offices have only a few employees in any given position, and a single separation can significantly affect operations. Additionally, Interior records show that the average time required to hire petroleum engineers and inspectors in recent months generally exceeded 120 calendar days--much longer than OPM's target of 80 calendar days.
Interior and the three bureaus--BLM, BOEM, and BSEE--have taken some actions to address their hiring and retention challenges but have not fully used their existing authorities to supplement salaries or collect and analyze hiring data to identify the causes of delays in the hiring process. For instance, BLM, BOEM, and BSEE officials said that recruitment, relocation, and retention incentives are key options to help hire and retain staff, but use of these incentives to attract and retain petroleum engineers and inspectors has been limited. Moreover, the department and bureaus have taken some steps to reduce hiring times, but they do not have complete and accurate data on hiring times. For instance, while BSEE and BOEM collect hiring data on a biweekly basis, the data are used primarily to track the progress of individual applicants as they move through the hiring process. Likewise, a BLM official stated that the bureau does not systematically analyze data on hiring times. Without reliable data on hiring times, Interior's bureaus cannot identify how long it takes to complete individual stages in the hiring process or effectively implement changes to expedite the hiring process.
According to BLM, BOEM, and BSEE officials, hiring and retention challenges have made it more difficult to carry out oversight activities in some field offices. For example, many BLM and BSEE officials GAO surveyed reported that vacancies have resulted in a reduction in the number of inspections conducted. As a result of these challenges, bureau officials cited steps they have taken to address vacancies in key positions, such as borrowing staff from other offices or using overtime, but these solutions are not sustainable.

What GAO Recommends

GAO recommends that the Department of the Interior explore the bureaus' expanded use of recruitment, relocation, retention, and other incentives and systematically collect and analyze hiring data. In commenting on a draft of this report, Interior generally agreed with GAO's recommendations.