TSA Has Generally Addressed TSARA Requirements

		TSA Policies and Procedures Address TSARA’s Requirements for Justifying Acquisitions, Establishing Baselines, Managing Inventory, and Consistency with the FAR

			Justifying Acquisitions

TSA has policies and procedures that address TSARA’s requirements for  justifying acquisitions, including a security-related technology acquisition. TSA had implemented most of these procedures prior to TSARA’s  enactment because they were required by existing DHS and TSA policy. One change resulting from TSARA is the  requirement that TSA notify Congress at least 30 days preceding contract  awards for new security-related technology acquisitions exceeding $30  million, which TSA addressed by developing new procedures. According to TSA officials, TSA has not yet  awarded a contract for security-related technology in excess of $30  million since TSARA’s enactment. For  example, TSA acquisition policies require that TSA prepare an acquisition  program baseline, a risk management plan, and the acquisition program  office staffing requirements before obtaining an acquisition. As  required by TSARA, TSA established procedures to notify Congress  within 30 days of schedule delays, cost overruns, or performance failures  constituting a breach against acquisition program baselines. As of  December 2015, TSA reported that it had not experienced such breaches  in any existing acquisitions since TSARA’s enactment. Managing Inventory

TSA’s policies and procedures address TSARA requirements for  managing inventory related to, among other things, (1) using existing  units before procuring more equipment; (2) establishing policies and  procedures to track the location, use, and quantity of security-related  equipment in inventory; and (3) providing for the exception from using  just-in-time logistics, a process that involves delivering equipment directly  from manufacturers to airports to avoid the need to warehouse  equipment. DHS  officials further reported that TSA’s actions towards implementation of  TSARA requirements is part of DHS’s Acquisition Review Board process  and has not led to any duplication or inconsistency with the FAR or AD  102. TSA Developed and Submitted Its Technology Investment Plan and a Small Business Report Generally in Accordance with TSARA

			Technology Investment Plan

TSA submitted a Strategic Five-Year Technology Investment Plan (the  Plan) to Congress that generally addresses TSARA-mandated  elements. For example, the Plan that TSA submitted to Congress  identifies capability gaps and security-related technology acquisition  needs and procedures. The report  submitted by TSA includes an action plan for integrating small business  concerns into the acquisition planning procedures and enhancing  outreach to disabled, women-owned and HUBZone businesses. However, TSA officials said that they met with the  Department of Defense Office of Small Business Programs after they  developed the action plan and the agency plans to fully comply with  TSARA’s small business requirements in the future. DHS and TSA Officials Report That It Is Too Early to Determine Whether Efforts to Implement TSARA Will Result in Any Efficiencies, Cost Savings, or Delays

DHS and TSA officials reported that to date TSA has not identified any  efficiencies, cost savings, or delays from its implementation of TSARA. TSA officials further stated that because many of their current policies  and procedures that met the provisions of the law were in place prior to  TSARA’s enactment, it was unlikely for TSARA to result in major cost  savings, efficiencies, or delays. Agency Comments and Our Evaluation

We provided a draft of this report to DHS for review and comment. DHS  did not provide formal comments but provided technical comments from  TSA which we incorporated as appropriate. We are sending copies of this report to the appropriate congressional  committees and the Secretary of Homeland Security. Appendix I: Status of TSA Efforts to Address TSARA Requirements

In the following tables, we identify the status of Transportation Security  Administration (TSA) efforts to address requirements of the  Transportation Security Acquisition Reform Act (TSARA).
Why GAO Did This Study

Within DHS, TSA is the federal agency with primary responsibility for preventing and defending against terrorist and other threats to domestic transportation systems. From fiscal years 2002 through August 2015, TSA obligated $13.4 billion to acquire security-related technologies such as through the Electronic Baggage Screening Program and the Passenger Screening Program. However, GAO and the DHS Office of Inspector General have reported that TSA did not fully follow DHS policies in deploying Advanced Imaging Technology systems to screen passengers and in estimating costs to screen checked baggage, and faced challenges in managing inventory. Enacted in December 2014, TSARA specifies measures that TSA must take to improve transparency and accountability in acquiring security-related technologies.
TSARA contains a provision that GAO report to Congress on TSA's progress in implementing TSARA. This report examines TSA's actions taken toward addressing TSARA. GAO is not fully evaluating the extent to which TSA is implementing the act at this time because TSA has not undertaken an acquisition of security-related technology subject to the requirements of the act since its enactment. Pursuant to TSARA, GAO will report again on TSA's implementation of the act in approximately 3 years. TSA provided technical comments on a draft of this report which GAO incorporated as appropriate. DHS did not provide formal comments.

What GAO Found

The Transportation Security Administration (TSA) in the Department of Homeland Security (DHS) has policies and procedures that generally address requirements of the December 2014 Transportation Security Acquisition Reform Act (TSARA). Specifically, TSA policy and procedures address TSARA requirements for justifying acquisitions, establishing baselines, managing inventory, and submitting plans, among other requirements.
Justifying Acquisitions
TSA had taken action toward addressing most TSARA requirements related to justifying acquisitions prior to TSARA's enactment because they were required by existing DHS and TSA acquisition policies. Consistent with TSARA, TSA amended its policies to notify Congress within 30 days of awarding contracts exceeding $30 million for the acquisition of security-related technology. According to agency officials, TSA has not made any such new acquisitions since the enactment of TSARA.
Acquisition Baselines
TSA policies require that it prepare an acquisition program baseline, risk management plan, and staffing requirements before acquiring security-related technology. Consistent with TSARA, TSA established policies to notify Congress within 30 days of making a finding of performance failures, schedule delays, or cost overruns constituting a breach against acquisition program baselines. TSA reported that it had not experienced breaches in any existing acquisitions (i.e., those in place prior to December 2014) since the enactment of TSARA.
Managing Inventory
TSA's policies and procedures address TSARA requirements for using existing units before procuring more equipment; tracking the location, use, and quantity of security-related equipment in inventory; and using just-in-time delivery to avoid warehousing equipment.
Submitting Plans
TSA submitted its Technology Investment Plan and Small Business Report to Congress as required by TSARA. The Technology Investment Plan addresses required elements such as identifying security gaps and security-related technology needs and processes. The Small Business Report includes an action plan for integrating the concerns of small businesses into acquisition processes and increasing outreach to targeted small businesses.
DHS and TSA officials said that TSA has not yet identified any efficiencies, cost savings, or delays from its implementation of TSARA. They added that because many of the policies and procedures that meet the provisions of the act were in place prior to the enactment of TSARA, it was unlikely for TSARA to result in major efficiencies, cost savings, or delays. According to TSA officials, TSA has developed mechanisms to monitor various aspects of TSARA, such as tracking progress in implementing planned technology programs.