The Baseline Capabilities define the capabilities needed to  achieve a national, integrated network of fusion centers and detail the  standards necessary for a fusion center to be considered capable of  performing basic functions by the fusion center community. DHS also provides an unclassified  network, the Homeland Security Information Network, which allows  federal, state, and local homeland security and terrorism-related  information sharing. Officials in all 14 of the centers we contacted stated that federal funding  was critical to long-term sustainability and provided varying examples of  the impact that not having federal grant funding would have on their  fusion centers. The goal of the nationwide  assessment, according to DHS senior officials, is to help enable both  federal and fusion center representatives to (1) obtain more accurate  information on the current status of centers’ abilities to meet the baseline  capabilities, (2) help identify gaps between centers’ current operations and  the capabilities, and (3) use this information to develop strategies and  realign resources to support centers’ efforts to close those gaps going  forward. DHS’s HSGP is the primary grant program through which fusion centers  receive funding, but these grants are not specifically focused on, nor  limited to, fusion centers. This process has generated long-standing concerns by  the fusion center community about the lack of a longer-term, predictable  funding source for the centers. Officials from 13 of the 14 centers we contacted cited a number of  challenges with obtaining funding and the lack of a dedicated funding  source, which affected their ability to plan long term or expand their  operations. In addition, Fiscal Year 2012 implementation guidance  for the ISE requires that, by October 29, 2010, DHS should develop and  promulgate an annual common reporting process that will document the  total operational and sustainment costs of each of the 72 fusion centers in  the national network. Taking Steps to Implement Standard Performance Measures to Track the Results of Fusion Centers’ Efforts to Support Information Sharing Could Help Demonstrate Centers’ Value to the ISE

If fusion centers are to receive continued financial support, it is important  that centers are also able to demonstrate that they are providing critical  information that is helping the federal government and state and local  agencies protect against terrorist and homeland security threats. However,  these officials stated that, while DHS has started collecting some  information that will help in developing such measures, the agency is  currently focusing on completing the nationwide assessment to gauge the  capabilities and gaps across fusion centers. As such, these officials said  that they have not defined next steps or target timeframes for designing  and implementing these measures. By defining the steps it will take to  design and implement a set of standard measures to track the results and  performance across fusion centers and committing to a target timeframe  for completion, DHS could help ensure that centers and federal agencies  demonstrate the value of fusion centers’ operations to national  information sharing goals and prioritize limited resources needed to  achieve and maintain those functions deemed critical to support the  national fusion center network. Federal Agencies Are Providing Technical Assistance and Training to Centers to Help Them Develop Privacy and Civil Liberties Policies and Protections, and DHS Is Assessing the Status of These Protections

DHS and DOJ are providing technical assistance to assist fusion centers in  developing privacy and civil liberties policies, and fusion centers  nationwide are in varying stages of completing their policies. To ensure  fusion centers comply with the certification requirements in DHS’s grant  guidance, DHS and DOJ have established a joint process to review and  certify fusion centers’ privacy and civil liberties policies. Fusion Center Officials We Interviewed Reported That DHS’s and DOJ’s Training on Privacy and Civil Liberties Protections Was Helpful and Would Like It Continued after Their Policies Are Developed

The 9/11 Commission Act requires DHS to establish guidelines for fusion  centers that include standards for fusion centers to provide appropriate  privacy training for all state, local, tribal, and private sector  representatives at the fusion center, in coordination with DHS’s Privacy  Office and CRCL. Recommendation for Executive Action

To enhance the ability to demonstrate the results fusion centers are  achieving in support of national information sharing goals and help  prioritize how future resources should be allocated, we recommend that  the Secretary of Homeland Security direct the State and Local Program  Office, in partnership with fusion center officials, to define the steps it will  take to design and implement a set of standard performance measures to  show the results and value centers are adding to the Information Sharing  Environment and commit to a target timeframe for completing them.
Why GAO Did This Study

Recent terrorist activity, such as the attempted Times Square bombing, underscores the need for terrorism-related information sharing. Since 2001, all 50 states and some local governments have established fusion centers, where homeland security, terrorism, and other intelligence information is shared. The federal government recognizes the importance of fusion centers; however, as GAO reported in October 2007, centers face challenges in sustaining their operations. GAO was asked to assess the extent to which (1) the Department of Homeland Security (DHS) has taken action to support fusion centers' efforts to maintain and grow their operations, and (2) DHS and the Department of Justice (DOJ) have supported fusion centers in establishing privacy and civil liberties protections. GAO reviewed relevant legislation and federal guidance; conducted interviews with 14 of 72 fusion centers, selected on the basis of location and time in operation, among other factors; and interviewed DHS and DOJ officials. The views of fusion center officials are not generalizable but provided insights

What GAO Found

Fusion centers have cited DHS grant funding as critical to achieving the baseline capabilities--the standards the government and fusion centers have defined as necessary for centers to be considered capable of performing basic functions in the national information sharing network, such as standards related to information gathering and intelligence analysis. However, DHS has not set standard performance measures for the centers. Fusion centers nationwide reported that federal funding accounted for about 61 percent of their total fiscal year 2010 budgets, but DHS's Homeland Security Grant Program (HSGP), the primary grant program through which fusion centers receive funding, is not specifically focused on, or limited to, fusion centers. Rather, states and local governments determine the amount of HSGP funding they allocate to fusion centers each year from among a number of competing homeland security needs. As a result, fusion centers continue to raise concerns about the lack of a longer-term, predictable federal funding source. DHS, in coordination with the Program Manager for the Information Sharing Environment and DOJ, has a nationwide assessment of centers' baseline capabilities under way. To be completed in October 2010, the goal of the assessment is to provide federal agencies and fusion centers with more accurate information on the status of centers' abilities, help identify gaps between centers' current operations and the baseline capabilities, and use this information to develop strategies and realign resources to close those gaps going forward. Recent federal guidance also requires that, by October 29, 2010, DHS should develop an annual reporting process that will document the total operational and sustainment costs of each of the 72 fusion centers in the national network so as to assess the adequacy of current funding mechanisms. If centers are to receive continued federal financial support, it is important that they are also able to demonstrate their impact and value added to the nation's information sharing goals. However, there are no standard performance measures across all fusion centers to do this. DHS has not started developing such measures because the agency is currently focusing on completing the nationwide assessment and compiling its results and, as such, has not defined next steps or target timeframes for designing and implementing these measures. Defining the steps it will take to design and implement a set of measures and committing to a target timeframe for their completion could better position DHS to demonstrate the value and impact of the national network of fusion centers. To help fusion centers develop privacy and civil liberties policies and protections, DHS and DOJ have provided technical assistance and training, including a template on which to base a privacy and civil liberties policy, and a joint process for reviewing fusion centers' policies to ensure they are consistent with federal requirements. The 14 centers GAO interviewed were at different stages of the policy review process, with 7 completed as of June 2010. Officials from all 14 of the fusion centers GAO interviewed stated that the guidance DHS and DOJ provided was helpful and integral in assisting them to draft their policies.

What GAO Recommends

GAO recommends that DHS define steps to develop and implement standard performance measures for centers and commit to a timeframe for completing them. DHS concurred and described steps it is taking to address the recommendation.