DOD Personnel Clearances: Funding Challenges and Other Impediments Slow Clearances for Industry Personnel Page: 2 of 21
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i GAO
aAccountabiity Integrity-Reliability
Highlights
Highlights of GAO-06-747T, a statement
for the record to the Committee on
Government Reform, House of
Representatives
Why GAO Did This Study
The Department of Defense (DOD)
is responsible for about 2 million
active personnel security
clearances. About one-third of the
clearances are for industry
personnel working on contracts for
DOD and more than 20 other
executive agencies. Delays in
determining eligibility for a
clearance can heighten the risk that
classified information will be
disclosed to unauthorized sources
and increase contract costs and
problems attracting and retaining
qualified personnel. On April 28,
2006, DOD announced it had
stopped processing security
clearance applications for industry
personnel because of an
overwhelming volume of requests
and funding constraints. GAO has
reported problems with DOD's
security clearance processes since
1981. In January 2005, GAO
designated DOD's program a high-
risk area because of longstanding
delays in completing clearance
requests and an inability to
accurately estimate and eliminate
its clearance backlog.
For this statement GAO addresses:
(1) key points in the billing dispute
between DOD and OPM and (2)
some of the major impediments
affecting clearances for industry
personnel.DOD PERSONNEL CLEARANCES
Funding Challenges and Other
Impediments Slow Clearances for
Industry PersonnelWhat GAO Found
The costs underlying a billing dispute between DOD and OPM are
contributing to further delays in the processing of new security clearance
requests for industry personnel. The dispute stems from the February 2005
transfer of DOD's personnel security investigations function to OPM and
associated costs for which DOD agreed to reimburse OPM. Among other
things, the two agencies' memorandum of agreement for the transfer allows
OPM to charge DOD annual price adjustments plus a 25 percent premium, in
addition to the rates OPM charges to other federal government agencies. A
January 20, 2006, memorandum from the Under Secretary of Defense for
Intelligence to the Office of Management and Budget (OMB) questioned the
continued need for the premiums and requested mediation from OMB.
According to DOD and OPM, OMB has directed the two agencies to continue
to work together to resolve the matter. The inspectors general for both DOD
and OPM are expected to report on the results of their investigations into the
dispute this summer.
Other impediments, if not effectively addressed, could negatively affect the
timeliness of clearance-eligibility determinations for one or more of the
following employee groups: industry personnel, servicemembers, and
civilian government employees. All three groups are affected by DOD's
longstanding inability to accurately estimate the size of its security clearance
workload. Inaccurate estimates of the volume of clearances needed make it
difficult to determine clearance-related budgets and staffing requirements.
Similarly, the July 1, 2006, expiration of Executive Order 13381, which
delegated responsibility for improving the clearance process to OMB, could
potentially slow improvements in personnel security clearance processes
DOD-wide as well as governmentwide. GAO has been encouraged by OMB's
high level of commitment to activities such as the development of a
government plan to improve personnel security clearance processes
governmentwide but is concerned about whether such progress will
continue after the executive order expires. In contrast, demand for top
secret clearances for industry personnel and the lack of reciprocity (the
acceptance of a clearance and access granted by another department,
agency, or military service) are impediments that mainly affect industry
personnel. A previously identified increase in the demand for top secret
clearances for industry personnel has workload and budgetary implications
for DOD and OPM if such requests continue to occur. Finally, the lack of
reciprocity has a negative effect on employees and employers, and increases
the workload for already overburdened investigative and adjudicative staff.
Reciprocity problems have occurred despite the issuance of
governmentwide investigative standards and adjudicative guidelines in 1997.www.gao.gov/cgi-bin/getrpt?GAO-06-747T.
To view the full product, including the scope
and methodology, click on the link above.
For more information, contact
Derek B. Stewart at (202) 512-5559 or
stewartd @ gao.gov.United States Government Accountability Office
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United States. Government Accountability Office. DOD Personnel Clearances: Funding Challenges and Other Impediments Slow Clearances for Industry Personnel, text, May 17, 2006; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc296101/m1/2/: accessed April 19, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.