Indeed, as Secretary Chertoff explained, 2SR involved the evaluation of a variety of operational and policy issues, and among those was "the DHS organizational structure, to make sure that our organization is best aligned to support our mission." However, no report on the 2SR process and proposed reforms was issued. This report focuses primarily on the conclusions and proposals resulting from 2SR pertaining to organization and managerial lines of authority matters. Background

DHS was mandated by the Homeland Security Act of 2002. The creation of DHS resulted in a reorganization of the executive branch on a scale not experienced since the establishment of the Department of Defense (DOD) half a century earlier. Originally denominated the National Military Establishment at birth in 1947, DOD was given its current name and underwent the first of what would be a series of structural modifications through statutory amendments in 1949. A similarly complex organization, DHS was the product of legislative compromises, and it was anticipated that congressional overseers, as well as department officials, would monitor the management and operations of DHS with a view to adjusting its structure as conditions warranted. In this regard, Section 872 of the Homeland Security Act authorizes the Secretary of Homeland Security to reorganize functions and organizational units within DHS, subject to specified limits. In late January 2003, as components of DHS were being transferred to the department's operational control, President George W. Bush modified his original reorganization plan for DHS to reconfigure the functions of certain border security agencies into two new components—the Bureau of Customs and Border Protection and the Bureau of Immigration and Customs Enforcement—within the department's Border and Transportation Security Directorate (BTS). In one of his first actions as Secretary of Homeland Security Tom Ridge's successor, Michael Chertoff, on March 2, 2005, the day before he was sworn in as Secretary, announced in testimony before the House Appropriations Subcommittee on Homeland Security that he was "initiating a comprehensive review of the Department's organization, operations, and policies." This effort, he said, would begin "within days." 1. Since March 2005, the Department of Homeland Security (DHS) has been conducting an internal review of its policies, operations and organizational structure, known as the "Second Stage Review." 4009 ). Legislation

H.R. The proposal would implement some aspects of Secretary Chertoff's plan for reorganizing DHS as a result of his 2SR initiative, but also contains provisions that are contrary to that plan.
The Department of Homeland Security (DHS) was mandated by the Homeland Security Act of 2002. The creation of DHS resulted in a reorganization of the executive branch on a scale not experienced since the establishment of the Department of Defense (DOD) half a century ago. Originally denominated the National Military Establishment at birth in 1947, DOD was given its current name and underwent the first of what would be a series of structural modifications through statutory amendments in 1949. A similarly complex organization, DHS was the product of legislative compromises, and it was anticipated that congressional overseers, as well as department officials, would monitor the management and operations of DHS with a view to adjusting its structure as conditions warranted. In this regard, Section 872 of the Homeland Security Act authorizes the Secretary of Homeland Security to reorganize functions and organizational units within DHS, subject to specified limits. In late January 2003, as components of DHS were being transferred to the department's operational control, President George W. Bush modified his original reorganization plan for DHS to reconfigure the functions of certain border security agencies into two new components—the Bureau of Customs and Border Protection and the Bureau of Immigration and Customs Enforcement—within the department's Border and Transportation Security Directorate.
In one of his first actions as Secretary of Homeland Security Tom Ridge's successor, Michael Chertoff, on March 2, 2005, the day before he was sworn in as Secretary, announced in testimony before the House Appropriations Subcommittee on Homeland Security that he was "initiating a comprehensive review of the Department's organization, operations, and policies." This effort, he said, would begin "within days." The results of that undertaking, which came to be known as the Second Stage Review or 2SR, were made public in mid-July. As Secretary Chertoff explained, 2SR involved the evaluation of a variety of operational and policy issues, and among those was "the DHS organizational structure, to make sure that our organization is best aligned to support our mission." However, no report on the 2SR process and reforms was issued. This report focuses primarily on the conclusions and proposals resulting from 2SR pertaining to organization and managerial lines of authority matters (H.R. 4009; S. 1866). Initial issues concerned the means for realizing the proposed 2SR reorganization; the efficiencies and effectiveness that would result with the proposed flatter, but more sprawling, restructuring; and how new leadership positions would be established, filled, compensated, and situated in the DHS hierarchy. Some aspects of these issues lingered for a while after the implementation of the 2SR plan on October 1, 2005. Approximately one year later, however, it appeared that Secretary Chertoff, exercising his reorganization authority, had largely realized his planned 2SR restructuring, although some legislative changes in this regard awaited finalization. This report will be updated as events warrant.