Prior to this  legislation, U.S. citizens did not need a passport to enter the United States  if they were traveling from within the Western Hemisphere, except from  Cuba. State Was Unprepared for 2007 Surge in Passport Demand, Leading to Lengthy Wait Times for Applicants

State was unprepared for the record number of passport applications it  received in 2007 because it underestimated overall demand for passports  and did not anticipate the timing of this demand. Wait Times Reached Record Highs in 2007 due to Unprecedented Demand

As a result of the increased number of passport applications in the first  half of 2007, reported wait times more than doubled, causing applicants to  wait 10 to 12 weeks for their passports on average, though many  applicants waited significantly longer. State’s actions, combined with seasonal declines in passport  applications, decreased wait times to normal levels by October 2007. In addition, State took steps to increase the capacity of its facilities to  handle the increased workload. For example, passport agencies used training and conference  rooms to accommodate additional passport specialists. State commissioned a review  of its passport operations, completed in 2005, that identified several  deficiencies and proposed a number of potential measures to guide  modernization efforts; however, State does not have a plan to prioritize  and synchronize these efforts. State Has Improved its Ability to Respond to Near- Term Increases in Passport Demand

State has taken several steps to increase its passport production capacity  and improve its ability to respond to near-term increases in passport  demand. State Lacks a Comprehensive Strategy to Improve Long-Term Passport Operations

A 2005 study of passport operations commissioned by State identified  several limitations in State’s passport operation, many of which were  exposed during the department’s response to the 2007 surge in demand. Some of these proposed initiatives that State has not implemented could  be useful to State’s current operations, including the following:  leveraging electronic work flow management—enabling State to develop  flexible, streamlined work streams that improve its ability to monitor and  manage passport operations while reducing manual processes for the  physical movement and storage of paper applications and supporting  documentation—to ensure a more efficient work flow that supports the  issuance of increasing numbers of passports every year;    providing management visibility over the end-to-end passport issuance  process extending across State and partner organizations, to effectively  manage the process and enforce performance standards;    applying validations and identity checks automatically upon receipt or  modification of an application by consistently applying a comprehensive  set of business rules, to strengthen an adjudication process that supports  the integrity of the passport as a primary identity document;    offering an online point of service with expanded functionality as a means  for self-service by the public to facilitate a simplified, flexible, and well- communicated application process to enhance service to the passport  customer; and    conducting a comprehensive workforce analysis to define a sustainable  workforce structure and plans through 2020 and enhancing  communications within State and its business partners to improve  efficiency and promote knowledge sharing. Appendix I: Objectives, Scope, and Methodology

In this report, we review (1) the extent to which the Department of State  (State) was prepared for the surge in passport demand in 2007 and how  State’s readiness affected passport operations, (2) how State increased its  passport production capacity in response to the 2007 surge, and (3) State’s  readiness for near-term surges in demand and whether State has a  comprehensive strategy in place to improve long-term passport  operations. These  deficiencies included the reliance on a manual, paper-based work flow,  ineffective communications, and inflexible passport systems.
Why GAO Did This Study

In 2007, following the implementation of new document requirements for travelers entering the United States from within the Western Hemisphere, the Department of State (State) received a record number of passport applications. In June 2009 further document requirements are scheduled to go into effect and will likely lead to another surge in passport demand. GAO examined (1) the extent to which State was prepared for the surge in passport demand and how its readiness affected passport operations, (2) State's actions to increase passport production capacity in response to the surge, and (3) State's readiness for near-term surges in demand and its strategy to improve passport operations. GAO interviewed officials from State and the Departments of the Treasury and Homeland Security, conducted site visits, and reviewed data on passport processing times and reports on passport operations.

What GAO Found

State was unprepared for the record number of passport applications it received in 2007, leading to significant delays in passport processing. State underestimated the increase in demand and consequently was not able to provide enough notice to the financial agent it uses for passport application payment processing for the agent to prepare for the increased workload, further adding to delays. As a result, reported wait times reached 10 to 12 weeks in the summer of 2007--more than double the normal wait--with hundreds of thousands of passports taking significantly longer. State had difficulty tracking individual applications and failed to effectively measure or communicate to applicants the total expected wait times, prompting many to re-apply and further straining State's processing capacity. State took a number of emergency measures and accelerated other planned efforts to increase its passport production capacity in 2007. For example, to help adjudicate passports, State established four adjudication task forces and deployed passport specialists to U.S. passport agencies severely affected by the surge. In addition, State accelerated hiring and expansion efforts. As a result of these efforts and the normal seasonal decline in passport applications, wait times returned to normal by October 2007. According to State estimates, these emergency measures cost $42.8 million. Although State has taken steps to improve its ability to respond to near-term surges in passport demand, it lacks a comprehensive strategy to improve long-term passport operations. State previously identified several deficiencies limiting the efficiency and effectiveness of passport operations, such as reliance on a paper-based work flow and ineffective communications, and these deficiencies were exposed by State's response to the surge. While State also identified a framework to guide its modernization efforts, it does not have a comprehensive plan to prioritize and synchronize improvements to its passport operations. A comprehensive strategy for making these improvements--for example, using a business enterprise approach--would better equip State to handle a significantly higher workload in the future.