FCC’s Current Structure and Informal Coordination Processes Can Limit FCC’s Ability to Efficiently Address Crosscutting Issues

		Despite Changes to Modernize FCC’s Bureau Structure, Market and Technological Changes Have Created Issues That Span FCC’s Bureaus

Although FCC has established some function-based bureaus and  reorganized its bureaus to reflect some changes in the telecommunications  market, further evolutions and the growth of new technologies have  continued to create crosscutting issues that span several bureaus. In addition, the absence of written policies allows interbureau  collaboration and communication to vary from chairman to chairman. Current and former FCC officials told us that  such policies limited interbureau collaboration and staff-to-staff  communication. FCC Relies on Its Functional Offices to Address Some Aspects of Convergence, but the Chairman’s Influence Over These Offices Raises Independence Issues That Can Affect FCC’s Ability to Rely on Them

FCC’s functional offices, such as the Office of Engineering and Technology  (OET) and the Office of Strategic Planning and Policy Analysis (OSP),  provide a broader scope than the platform-based bureaus and address  some of the issues posed by convergence, but the chairman’s influence can  affect FCC’s ability to use these offices to address crosscutting issues. One proposal is to replace industry-based bureaus with bureaus  divided along functional goals. Weaknesses in FCC’s Processes for Collecting and Using Information Can Undermine the Transparency and Effectiveness of the Decision-Making Process

		Inconsistent Policies Regarding Commissioner Access to Bureau and Office Analyses Raise Concerns about the Transparency and Effectiveness of the Decision-Making Process

FCC chairmen have varied in their policies regarding commissioner access  to bureau and office analyses during the decision-making process. Stakeholders Have Raised Concerns about FCC’s Collection of Information during the Rulemaking Process

			FCC Typically Does Not Include the Text of a Proposed Rule in Its NPRMs, Which May Limit the Effectiveness of the Public Comment Process

When issuing an NPRM to gather public input before adopting, modifying,  or deleting a rule, FCC rarely includes the text of the proposed rule in the  notice, which may limit the effectiveness of the public comment process. Stakeholders told us that vague  ex parte summaries reduce transparency and public discourse in FCC’s  decision-making process by limiting stakeholders’ ability to determine  what information was provided in the meeting and to discuss or rebut tha information. However, FCC’s Strategic Human Capital Plan does not  establish specific targets for these needs or measures for evaluating its  progress in meeting these skill needs. However, we identified several challenges in these areas. At the bureau and office level, FCC’s lack of written procedures for  facilitating the flow of information within the agency has in some cases led  to ineffective interbureau coordination and allowed prior chairmen to limit  internal communication among staff. Second,  although FCC has developed rules intended to protect the fairness of  ex parte proceedings, FCC neither provides detailed guidance on what  constitutes a sufficient ex parte summary, nor has a process for  proactively ensuring that ex parte summaries are complete. Finally, at a time when the telecommunications industry has become  increasingly complex, a large percentage of FCC’s economists and  engineers will be eligible for retirement by 2011, and FCC has faced  challenges in recruiting new staff. However, continued focus on identifying and  instituting additional methods that improve its flexibility to meet its  expertise needs, and developing measures for tracking its progress toward  meeting its needs, will help to ensure that FCC is well-positioned to  anticipate and address its current and future workforce and expertise  needs. Regarding the public comment process,  FCC stated that it has worked to include the text of proposed rules in  recently issued NPRMs. In  particular, the report provides information on (1) the extent to which  FCC’s bureau structure presents challenges for the agency in adapting to  an evolving marketplace; (2) the extent to which FCC’s decision-making  processes present challenges for FCC, and what opportunities, if any, exist  for improvement; and (3) the extent to which FCC’s personnel  management and workforce planning efforts ensure that FCC has the  workforce needed to achieve its mission. In addition, we reviewed FCC  documents, as well as relevant legislation, federal regulations, and GAO  reports on the FCC and areas of focus for this review such as internal  controls and workforce planning.
Why GAO Did This Study

Rapid changes in the telecommunications industry, such as the development of broadband technologies, present new regulatory challenges for the Federal Communications Commission (FCC). Government Accountability Office (GAO) was asked to determine (1) the extent to which FCC's bureau structure presents challenges for the agency in adapting to an evolving marketplace; (2) the extent to which FCC's decision-making processes present challenges for FCC, and what opportunities, if any, exist for improvement; and (3) the extent to which FCC's personnel management and workforce planning efforts face challenges in ensuring that FCC has the workforce needed to achieve its mission. GAO reviewed FCC documents and data and conducted literature searches to identify proposed reforms, criteria, and internal control standards and compared them with FCC's practices. GAO also interviewed current and former FCC chairmen and commissioners, industry stakeholders, academic experts, and consumer representatives.

What GAO Found

FCC consists of seven bureaus, with some structured along functional lines, such as enforcement, and some structured along technological lines, such as wireless telecommunications and media. Although there have been changes in FCC's bureau structure, developments in the telecommunications industry continue to create issues that span the jurisdiction of several bureaus. However, FCC lacks written procedures for ensuring that interbureau collaboration and communication occurs. FCC's reliance on informal coordination has created confusion among the bureaus regarding who is responsible for handling certain issues. In addition, the lack of written procedures has allowed various chairmen to determine the extent to which interbureau collaboration and communication occurs. This has led to instances in which FCC's final analyses lacked input from all relevant staff. Although FCC stated that it relies on its functional offices, such as its engineering and strategic planning offices, to address crosscutting issues, stakeholders have expressed concerns regarding the chairman's ability to influence these offices. Weaknesses in FCC's processes for collecting and using information also raise concerns regarding the transparency and informed nature of FCC's decision-making process. FCC has five commissioners, one of which is designated chairman. FCC lacks internal policies regarding commissioner access to staff analyses during the decision-making process, and some chairmen have restricted this access. Such restrictions may undermine the group decision-making process and impact the quality of FCC's decisions. In addition, GAO identified weaknesses in FCC's processes for collecting public input on proposed rules. Specifically, FCC rarely includes the text of a proposed rule when issuing a Notice of Proposed Rulemaking to collect public comment on a rule change, although some studies have noted that providing proposed rule text helps focus public input. Additionally, FCC has developed rules regarding contacts between external parties and FCC officials (known as ex parte contacts) that require the external party to provide FCC a summary of the new information presented for inclusion in the public record. However, several stakeholders told us that FCC's ex parte process allows vague ex parte summaries and that in some cases, ex parte contacts can occur just before a commission vote, which can limit stakeholders' ability to determine what information was provided and to rebut or discuss that information. FCC faces challenges in ensuring it has the expertise needed to adapt to a changing marketplace. For example, a large percentage of FCC's economists and engineers are eligible to retire in 2011, and FCC faces difficulty recruiting top candidates. FCC has initiated recruitment and development programs and has begun evaluating its workforce needs. GAO previously noted that strategic workforce planning should include identifying needs, developing strategies to address these needs, and tracking progress. However, FCC's Strategic Human Capital Plan does not establish targets for its expertise needs, making it difficult to assess the agency's progress in addressing its needs.