The typical supply chain process for transporting  cargo containers to the United States involves many steps and  participants. S&T’s overall objective for each of these container security technology  projects is the development and delivery of performance standards for the  technologies to DHS’s Office of Policy Development and CBP. DHS Has Made Progress in Researching and Developing Container Security Technologies, but Needs to Conduct Testing Using Defined Operational Scenarios before Delivering Performance Standards

From 2004 through 2009, S&T spent over $60 million and made varying  levels of progress in the research and development of its four container  security technology projects—ACSD, CSD, Hybrid Composite Container,  and MATTS—to support the development of performance standards for  these container security projects. According to S&T and CSTE team officials,  meeting the requirements of the ACSD program, including detecting  intrusion on all six sides of a container, has proven to be very challenging. The container incorporates an embedded sensor grid to provide  six-sided intrusion detection. However, S&T’s plans for conducting Phase II trade lane testing of these  container security technologies do not reflect all the operational scenarios  agreed upon within DHS for how the technologies could be implemented. Before S&T can provide performance  standards, per the technology transition agreements signed by S&T, the  Office of Policy Development, and CBP, the technologies are to have been  proven to work in their final form and under expected operational  conditions. Key Steps and Challenges Remain before Implementation of Container Security Technologies Can Move Forward

If S&T determines that the container security technologies are mature  enough to provide performance standards for these technologies to the  Office of Policy Development and CBP, key steps and associated  challenges remain before DHS and CBP can implement the container  security technologies in the supply chain that meet those performance  standards. Based on our discussions with Office of Policy Development  and CBP officials, we identified three key steps that remain before  implementation can occur: (1) obtaining support from trade industry and  international partners, (2) developing a concept of operations (CONOPS)  that describes how the technologies are to be deployed, and (3) certifying  the technologies for use in the supply chain. Until all intended operational scenarios are tested,  S&T cannot provide reasonable assurance that the container security  technologies would effectively function in all the operational scenarios  identified by the Office of Policy Development and CBP for potential  implementation. Recommendation for Executive Action

To ensure that the container security technologies being developed  will function in their intended operational environments, we recommend  that the Secretary of Homeland Security instruct the Assistant Secretary of  the Office of Policy, the Commissioner of U.S. Customs and Border  Protection, and the Under Secretary of the Science and Technology  Directorate, to test and evaluate the container security technologies  consistent with all of the operational scenarios DHS identified for  potential implementation, before S&T provides performance standards to  the Office of Policy Development and CBP. DHS concurred with our recommendation. Several vendors responded to S&T’s 2004 broad agency  announcement (BAA) for the Advanced Container Security Device (ACSD)  project and 2003 small business innovative research (SBIR) solicitation for  the Marine Asset Tag Tracking System (MATTS). Requirements that must be met by products to ensure they will function as  intended.
Why GAO Did This Study

Cargo containers could be used to transport unlawful cargo, including weapons of mass destruction, illicit arms, stowaways, and illegal narcotics into the United States. Within the Department of Homeland Security (DHS), U.S. Customs and Border Protection (CBP) is responsible for container security. To enhance container security, CBP has partnered with DHS's Science and Technology (S&T) Directorate to develop performance standards--requirements that must be met by products to ensure they will function as intended--for container security technologies. After successful completion of testing, S&T plans to deliver performance standards to DHS's Office of Policy Development and CBP. As requested, this report addresses (1) the extent to which DHS has made progress in conducting research and development and defining performance standards for the technologies, and (2) the remaining steps and challenges, if any, DHS could face in implementing the technologies. GAO, among other things, reviewed master test plans for S&T's four ongoing container security technology projects, and interviewed DHS officials.

What GAO Found

DHS has conducted research and development for four container security technology projects, but has not yet developed performance standards for them. From 2004 through 2009, S&T spent approximately $60 million and made varying levels of progress in the research and development of its four container security technology projects. These projects include the Advanced Container Security Device (ACSD), to detect intrusion on all six sides of a container; the Container Security Device (CSD), to detect the opening or removal of container doors; the Hybrid Composite Container, a lightweight container with an embedded sensor grid to detect intrusion on all six sides of the container; and the Marine Asset Tag Tracking System (MATTS), to track containers. The ACSD and Hybrid Composite Container technologies have not yet completed laboratory testing, but the CSD and MATTS are proceeding to testing in an operational environment, which will determine if the technologies can operate in the global supply chain--the flow of goods from manufacturers to retailers. S&T's master plans for conducting operational environment testing, however, do not reflect all of the operational scenarios the Office of Policy Development and CBP are considering for implementation. According to DHS guidance, before S&T can provide performance standards to the Office of Policy Development and CBP, the technologies are to have been proven to work in their final form and under expected operational conditions. Until the container security technologies are tested and evaluated consistent with all of the operational scenarios DHS identified for potential implementation, S&T cannot provide reasonable assurance that the technologies will effectively function as the Office of Policy Development and CBP intend to implement them. If S&T determines that the container security technologies are mature enough to provide performance standards for these technologies to the Office of Policy Development and CBP, key steps and challenges remain before implementation can occur. These key steps involve (1) obtaining support from the trade industry and international partners, (2) developing a concept of operations (CONOPS) detailing how the technologies are to be deployed, and (3) certifying the technologies for use. The Office of Policy Development and CBP plan to take these steps if and when S&T provides performance standards.

What GAO Recommends

GAO recommends that DHS test and evaluate the container security technologies consistent with all the operational scenarios DHS identified for potential implementation. DHS concurred with our recommendation.