1.) DOD’s Backlog for Industry Personnel Was Roughly 188,000 Cases, and the Time Needed for the Clearance Process Has Increased

DOD’s security clearance backlog for industry personnel was roughly  188,000 cases, and the time needed to conduct an investigation and  determine eligibility for a clearance had increased by 56 days during  the last 3 fiscal years. As of March 31, 2004, DSS identified more  than 61,000 overdue but not submitted reinvestigations and about  127,000 investigations or adjudications that had been started but not  completed within set time frames. DOD’s delays in conducting an investigation and  determining clearance eligibility can, among other things, increase  national security risks and the costs to the federal government of  contractor performance on defense contracts. DOD identified more than 61,000 reinvestigations that  were overdue but had not been submitted, over 101,000 backlogged  investigations, and over 25,000 backlogged adjudications. 2.) 2.) As of September 30, 2003, the estimated size of the adjudicative backlog  for industry personnel totaled roughly 17,300 cases. Average Time for Clearance Process Increased to More Than 1 Year for Industry Personnel

In the 3-year period from fiscal year 2001 through fiscal year 2003, the  average time that DOD took to determine clearance eligibility for industry  personnel rose from 319 days to 375 days, an increase of 18 percent. According to industry  contractors, these delays increased the amount of time needed to  complete national-security-related contracts. Impediments Hinder Elimination of the Backlog and Reduction of Time Needed to Conduct an Investigation and Determine Eligibility for a Clearance

A number of impediments hinder DOD’s efforts to eliminate the clearance  backlog for industry personnel and reduce the time needed to conduct an  investigation and determine eligibility for a clearance. Impediments— similar to those we identified DOD-wide in our February 2004 report—also  affect industry personnel and include large investigative and adjudicative  workloads resulting from a large number of clearance requests in  recent years and an increase in the proportion of requests requiring top  secret clearances, inaccurate workload projections, and insufficient  investigative and adjudicative workforces to handle the large workloads. The underutilization of reciprocity is an impediment that industrial  contractors cited as an obstacle to timely eligibility determinations. The  effects of past conditions, such as the backlog itself, problems with DSS’s  Case Control Management System, and additional national investigative  requirements, also have been identified by DOD officials as impediments  to timely eligibility determinations. DOD Is Considering Several Initiatives to Decrease the Backlog and Time Needed to Obtain a Security Clearance

DOD and industry association officials have suggested a number of  initiatives to reduce the backlog and delays in conducting an investigation  and issuing eligibility for a security clearance. A single  adjudicative facility would serve as the clearinghouse for all industrial  contractor-related issues. Like a phased periodic reinvestigation, this  initiative would require changes in the Common Investigative Standards. This initiative would use an automated  verification process to identify and validate security clearance  requirements for industry personnel. Recommendations for Executive Action

To improve the security clearance process for industry personnel as well  as for military members and federal employees, we recommend that the  Secretary of Defense direct the Under Secretary of Defense for  Intelligence to take the following four actions:  improve the projections of clearance requirements for industrial  personnel—both the number and type of clearances—by working with  DOD components, industrial contractors, and the acquisition community  to identify obstacles and implement steps to overcome them;    work with DOD components and other agencies to eliminate unnecessary  reciprocity limitations for industry personnel whose eligibility for a  clearance is granted by DOD;    develop and implement an integrated, comprehensive management plan to  eliminate the backlog, reduce the delays in conducting investigations and  determining eligibility for security clearances, and overcome the  impediments that could allow such problems to recur; and    analyze the feasibility of implementing initiatives designed to reduce the  backlog and delays, prioritize the initiatives, and make resources available  for testing and implementing the initiatives, which could include, but are  not limited to, those evaluated in this report. 1. 2. 3. 4.
Why GAO Did This Study

As more and more federal jobs are privatized, individuals working for private industry are taking on a greater role in national security work for the Department of Defense (DOD) and other federal agencies. Because many of these jobs require access to classified information, industry personnel must hold a security clearance. As of September 30, 2003, industry workers held more than one-third of all clearances issued by DOD. Long-standing security clearance backlogs and delays in determining clearance eligibility affect industry personnel, military members, and federal employees. As requested, we reviewed the clearance eligibility process for industry personnel and (1) describe the size of the backlog and changes in the time needed to issue eligibility determinations, (2) identify reasons for the backlog and delays, and (3) evaluate initiatives that DOD could take to eliminate the backlog and decrease the delays.

What GAO Found

As of March 31, 2004, DOD's security clearance backlog for industry personnel was roughly 188,000 cases, and the time needed to conduct an investigation and determine eligibility for a clearance during the last 3 fiscal years had increased by 56 days to a total of 375 days. DOD identified three separate backlog estimates; (1) more than 61,000 reinvestigations (required for renewing clearances) that were overdue but had not been submitted, (2) over 101,000 new investigations or reinvestigations that had not been completed within DOD's established time frames, and (3) over 25,000 adjudications (a determination of clearance eligibility) that had not been completed within DOD's established time frames. From fiscal year 2001 through fiscal year 2003, the average time that it took DOD to conduct an investigation and determine clearance eligibility for industry personnel increased from 319 days to 375 days. Delays in conducting investigations and determining clearance eligibility can increase national security risks, prevent industry personnel from beginning or continuing work on classified programs and activities, hinder industrial contractors from hiring the most experienced and best qualified personnel, increase the time needed to complete national-security-related contracts, and increase costs to the federal government. Several impediments hinder DOD's ability to eliminate the backlogs and reduce the amount of time needed to conduct an investigation and determine security clearance eligibility for industry personnel. Impediments include a large number of new clearance requests; an increase in the proportion of requests for top secret clearances, which require more time to process; inaccurate workload projections for both the number and type of clearances needed for industry personnel; and insufficient investigative and adjudicative workforces to handle the large workloads. Industrial contractors cited the lack of full reciprocity (the acceptance of a clearance and access granted by another department, agency, or military service) as an obstacle that can cause industry delays in filling positions and starting work on government contracts. Also, the effects of past conditions, such as the backlog itself, have been identified as impediments to timely eligibility determinations. Furthermore, DOD does not have an integrated, comprehensive management plan for addressing the backlog and delays. DOD is considering several initiatives that might reduce security clearance backlogs and processing times for determining clearance eligibility for industry personnel. Among those initiatives that DOD is exploring are (1) conducting a phased, periodic reinvestigation; (2) establishing a single adjudicative facility for industry; (3) reevaluating investigative standards and adjudicative guidelines; and (4) implementing an automated verification process for identifying and validating industrial security clearance requirements. These initiates could, however, face implementation obstacles, such as the need to change governmentwide regulations.