DHS' Office of Inspector General Issues Report on Major Management Challenges Facing DHS

The major management challenges identified by OIG are: (1) catastrophic disaster response and recovery, (2) acquisition management, (3) grants management, (4) financial management, (5) information technology management, (6) infrastructure protection, (7) border security, (8) transportation security, and (9) trade operations and security.

Highlights of Major DHS Management Challenges Related to CBP Operations

The following are highlights of the OIG's report that concern major DHS management challenges related to U.S. Customs and Border Protection operations (partial list):

High-risk container examinations. In an August 2007 report, the OIG reported that CBP was not consistently using entry data for all shipments, resulting in some high-risk containers being allowed to leave ports without mandatory examinations. OIG further noted that flaws in the Cargo Enforcement Reporting and Tracking System may result in improper container releases; that CBP had not automated its integration of examination findings into the Automated Targeting System (ATS); and some ports needed to improve controls over high-security bolt seals. (See ITT's Online Archives or 09/26/07 news, 07092607, for BP summary.)

According to OIG, CBP concurred with its recommendations and took actions to improve such procedures.

Communication with CBP officers at ports. In a 2007 internal controls audit, OIG generally found that problems referred to the Automated Commercial Environment (ACE) help desk were resolved effectively, but noted that CBP did not detect and resolve some operational problems that occurred at the ports and did not provide adequate communication and guidance to the ports.

OIG recommended that CBP develop procedures to monitor post-deployment operations and communicate ACE problems, operational fixes, and system changes to CBP officers at the ports in a timely manner. (See ITT's Online Archives or 01/24/08 news, 08012420, for the final part of a series of BP summaries of the OIG's 2007 audit findings, with links to previous parts.)

Inspecting of outbound shipments. In a September 2007 audit of CBP's export control activities, OIG concluded that outbound shipments are not consistently targeted and inspected by CBP officers at the ports for compliance with federal export laws and regulations. As a result, shipments could be exported that violate laws and regulations. OIG made several recommendations to help CBP ensure trade adherence with federal export laws and regulations. (See ITT's Online Archives or 10/19/07 news, 07101915, for BP summary of this OIG audit report.)

Acquisition risk of SBInet. In September 2006, CBP awarded a multiple year systems integration contract to begin the SBInet initiative. CBP has previously stated that SBInet will support all components and strategic objectives of the Secure Border Initiative (SBI) by integrating personnel, infrastructure, technology, and rapid response capability into a comprehensive border protection system. (See ITT's Online Archives or 09/27/06, 06092710, for BP summary of the awarding of the SBInet contract to Boeing Co.)

According to the OIG, the SBI procurement presents a considerable acquisition risk because of its size and scope. OIG's main concern about SBInet is that DHS is embarking on this multi-billion dollar acquisition project without having laid the foundation to effectively oversee and assess contractor performance and effectively control cost and schedule.

Rapid buildup of U.S. Border Patrol agents. CBP faces challenges related to the significant increases in the number of its U.S. Border Patrol agents including: recruiting, hiring, and training a sufficient number of Border Patrol agents; providing sufficient vehicles for agents; and ensuring that there are adequate facilities to house the number of agents entering on duty.

Information sharing across agencies. DHS is challenged with incorporating data mining into its overall strategy for sharing information to help detect and prevent terrorism.

OIG notes that without department-wide planning, coordination, and direction, the potential for integrating advanced data mining to address homeland security issues remains untapped. (For example, CBP's targeting of high-risk cargo and the Transportation Security Administration's tactical information on suspicious activities could be better shared.)

Remaining CBP Plans

In addition to OIG's analysis of the management challenges facing DHS, its report includes past accomplishments and remaining plans for each DHS agency. The remaining plans listed for CBP include:

ACE. Develop new ACE capabilities to strengthen screening and targeting; complete deployment of ACE truck processing capabilities and expand the mandatory e-Manifest policy; and continue development of new ACE capabilities.

Customs-Trade Partnership Against Terrorism. Conduct approximately 3,500 C-TPAT validations in fiscal year 2008; finalize personnel actions to staff new offices in Buffalo, New York and Houston, Texas; and seek to finalize two additional Mutual Recognition Arrangements.

Container Security Initiative. Maintain 58 CSI ports, continuing coverage of 86% of containerized cargo destined to the U.S.; train personnel to work with and support the Secure Freight Initiative (SFI); and evaluate remote targeting pilot project with real-time remote imaging and live video of the inspectional process.

Cargo Enforcement Reporting and Tracking System. CBP plans deployment of a cargo enforcement reporting and tracking system to all U.S. seaports and airports, the 58 CSI ports and the one remaining SFI port (Southampton, UK).

DHS OIG report entitled, "Major Management Challenges Facing the Department of Homeland Security" (OIG-08-11, dated January 2008) available at http://www.dhs.gov/xoig/assets/mgmtrpts/OIG_08-11_Jan08.pdf