ATSA required  that TSA screen 100 percent of checked baggage using explosive detection  systems by December 31, 2002. Explosive detection systems include EDS and ETD machines. EDS  machines, which cost approximately $1 million each, use computer-aided  tomography X-rays adapted from the medical field to automatically  recognize the characteristic signatures of threat explosives. In addition to installing stand-alone EDS and ETD  machines in airport lobbies and baggage makeup areas, TSA collaborated  with some airport operators and air carriers to install integrated in-line  EDS baggage screening systems within their baggage conveyor systems. Airports and the Federal Government Are Taking Actions to Install In-line Baggage Screening Systems, but Resources Have Not Been Made Available to Fund These Systems on a Large-Scale Basis

Airport operators and TSA are taking actions to install in-line EDS baggage  screening systems because of the expected benefits of these systems. TSA and airport operators are relying on LOI agreements as their principal  method for funding the modification of airport facilities to incorporate in- line baggage screening systems. In addition, perspectives differ regarding the appropriate role of the  federal government, airport operators, and air carriers in funding these  capital-intensive in-line EDS systems. TSA Has Not Systematically Planned for the Optimal Deployment of Checked Baggage Screening Equipment to Ensure the Efficient and Cost- Effective Screening for Explosives while Enhancing Security Benefits

At the time of our March 2005 report, TSA has not completed a  systematic, prospective analysis of individual airports or groups of airports  to determine at which airports installing in-line EDS systems would be  cost-effective in terms of reducing long-term screening costs for the  government and would improve security. TSA officials stated that they had not conducted the  analyses related to the installation of in-line systems at individual airports  or groups of airports because they have used available staff and funding to  ensure all airports have a sufficient number of EDS or ETD machines to  meet the congressional mandate to screen all checked baggage with  explosive detection systems. TSA estimated that in- line baggage screening systems at these airports would save the federal  government about $1 billion compared with stand-alone EDS systems and  that TSA would recover its initial investment in a little over 1 year. Concluding Observations

TSA has made substantial progress in installing EDS and ETD systems at  the nation’s airports—mainly as part of interim lobby screening  solutions—to provide the capability to screen all checked baggage for  explosives, as mandated by Congress. Also, for airports, where in-line systems may not be  economically justified because of high investment costs, a cost  effectiveness analysis could be used to determine the benefits of  additional stand-alone EDS machines to screen checked baggage in place  of the more labor-intensive ETD machines that are currently being used at  the more than 300 airports. In fact, the analysis showed that using  in-line systems instead of stand-alone systems at these nine airports would  save the federal government about $1 billion over 7 years and that TSA’s  initial investment would be recovered in a little over 1 year.
Why GAO Did This Study

Mandated to screen all checked baggage using explosive detection systems at airports by December 31, 2003, the Transportation Security Administration (TSA) deployed two types of screening equipment: explosives detection systems (EDS), which use computer-aided tomography X-rays to recognize the characteristics of explosives, and explosives trace detection (ETD) systems, which use chemical analysis to detect traces of explosive material vapors or residues. This testimony discusses (1) TSA's deployment of EDS and ETD systems and the impact of initially deploying these systems, (2) TSA and airport actions to install EDS machines in-line with baggage conveyor systems, and the federal resources made available for this purpose, and (3) actions taken by TSA to optimally deploy checked baggage screening systems.

What GAO Found

TSA has made substantial progress in installing EDS and ETD systems at the nation's more than 400 airports to provide the capability to screen all checked baggage using explosive detection systems, as mandated by Congress. However, in initially deploying EDS and ETD equipment, TSA placed stand-alone ETD and the minivan-sized EDS machines--mainly in airport lobbies--that were not integrated in-line with airport baggage conveyor systems. TSA officials stated that the agency's ability to initially install in-line systems was limited because of the high costs and the time required for airport modifications. These interim lobby solutions resulted in operational inefficiencies, including requiring a greater number of screeners, as compared with using EDS machines in-line with baggage conveyor systems. TSA and airport operators are taking actions to install in-line baggage screening systems to streamline airport and TSA operations, reduce screening costs, and enhance security. Eighty-six of the 130 airports we surveyed either have, are planning to have, or are considering installing full or partial in-line systems. However, resources have not been made available to fund these capital-intensive systems on a large-scale basis. Also, the overall costs of installing in-line baggage screening systems at each airport are unknown, the availability of future federal funding is uncertain, and perspectives differ regarding the appropriate role of the federal government, airport operators, and air carriers in funding these systems. TSA has not conducted a systematic, prospective analysis to determine at which airports it could achieve long-term savings and enhanced efficiencies and security by installing in-line systems or, where in-line systems may not be economically justified, by making greater use of stand-alone EDS systems rather than relying on the labor-intensive and less efficient ETD screening process. However, at nine airports where TSA has agreed to help fund the installation of in-line baggage screening systems, TSA conducted a retrospective cost-benefit analysis which showed that these in-line systems could save the federal government about $1 billion over 7 years. TSA further estimated that it could recover its initial investment in the in-line systems at these airports in a little over 1 year.