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Report to Congressional Addressees

March 2011

GAO-11-318SP

United States Government Accountability Office

GAO

Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue

1

Contents

Letter

Section I GAO Identified Areas of Potential Duplication,

Overlap, and Fragmentation, Which, if Effectively

Addressed, Could Provide Financial and

Other Benefits 5

Section II Other GAO-Identified Cost-Saving and

Revenue-Enhancing Areas 155

Appendix I List of Congressional Addressees 334

Appendix II Objectives, Scope, and Methodology 336

Page i GAO-11-318SP

Abbreviations

AC Bureau of Arms Control AFR Agency Financial Report AFV alternative fuel vehicle AHLTA Armed Forces Health Longitudinal Technology

Application ARS Agricultural Research Service ATF Bureau of Alcohol, Tobacco, Firearms and Explosives AUR Automated Underreporter Program BEA business enterprise architecture BEST Border Enforcement Security Task Force BLM Bureau of Land Management BOEMRE Bureau of Ocean Energy Management, Regulation and

Enforcement BPA blanket purchase agreement BRAC base realignment and closure CBP Customs and Border Protection CDE Community Development Entities CFDA Catalog of Federal Domestic Assistance CDFI Community Development Financial Institution CERP Commander’s Emergency Response Program CIO Chief Information Officer CMS Centers for Medicare & Medicaid Services COBRA Consolidated Omnibus Budget Reconciliation Act of

1985 Commerce Department of Commerce Corrosion Office Office of Corrosion Policy and Oversight DHS Department of Homeland Security DLA Defense Logistics Agency DNDO Domestic Nuclear Detection Office DOD Department of Defense DOT Department of Transportation DSH Disproportionate Share Hospital EAS Essential Air Service Education Department of Education EDA Economic Development Administration EHR Electronic Health Record Energy Department of Energy EPA Environmental Protection Agency EPAct Energy Policy Act FAM Foreign Affairs Manual

Page ii GAO-11-318SP

FBI Federal Bureau of Investigation FCC Federal Communications Commission FDA Food and Drug Administration FEMA Federal Emergency Management Agency FFS fee-for-service FMCSA Federal Motor Carrier Safety Administration FPDS-NG Federal Procurement Data System-Next Generation FSIS Food Safety and Inspection Service FSSI Federal Strategic Sourcing Initiative FTA Federal Transit Administration FTHBC First-Time Homebuyer Credit Fund Universal Service Fund GAGAS generally accepted government auditing standards GHG greenhouse gas GPO Government Pension Offset GPRA Government Performance and Results Act GSA General Services Administration HHA home health agency HHS Department of Health and Human Services HUBZone Historically Underutilized Business Zone HUD Department of Housing and Urban Development IBET Integrated Border Enforcement Team IED improvised explosive device IG Inspector General Interior Department of the Interior IPERA Improper Payments Elimination and Recovery Act IRS Internal Revenue Service ISN Bureau of International Security and Nonproliferation ISR intelligence, surveillance, and reconnaissance IT information technology JIEDDO Joint IED Defeat Organization Justice Department of Justice Labor Department of Labor MAS Multiple Award Schedule MEA math error authority MHS Military Health System MPPR multiple procedure payment reduction NAFTA North American Free Trade Agreement NASA National Aeronautics and Space Administration NMTC New Markets Tax Credit NP Bureau of Nonproliferation NSLP National School Lunch Program

Page iii GAO-11-318SP

OFPP Office of Federal Procurement Policy OMB Office of Management and Budget ONRR Office of Natural Resources and Revenue O&S operating and support PAR Performance and Accountability Report PBL performance-based logistics PMS Payment Management System RAC recovery audit contractor RFS renewable fuel standard ROI return on investment S&T Science and Technology Directorate SBA Small Business Administration SNAP Supplemental Nutrition Assistance Program SPOT Screening of Passengers by Observation Techniques SSA Social Security Administration State Department of State STEM science, technology, engineering, and mathematics TANF Temporary Assistance for Needy Families Treasury Department of the Treasury TSA Transportation Security Administration USAC Universal Service Administrative Company USAID U.S. Agency for International Development USDA Department of Agriculture USICH U.S. Interagency Council on Homelessness VA Department of Veterans Affairs VC Bureau of Verification and Compliance VCI Bureau of Verification, Compliance and

Implementation VEETC Volumetric Ethanol Excise Tax Credit VistA Veterans Health Information Systems and Technology

Architecture WEP Windfall Elimination Provision WIA Workforce Investment Act WIC Special Supplemental Nutrition Program for Women,

Infants, and Children

This is a work of the U.S. government and is not subject to copyright protection in the United States. The published product may be reproduced and distributed in its entirety without further permission from GAO. However, because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately.

Page iv GAO-11-318SP

Page 1 GAO-11-318SP

United States Government Accountability Office

Washington, DC 20548

March 1, 2011

Congressional Addressees:

This is GAO’s first annual report to Congress in response to a new statutory requirement that GAO identify federal programs, agencies, offices, and initiatives, either within departments or governmentwide, which have duplicative goals or activities. Congress asked GAO to conduct this work and to report annually on our findings.1 This work will inform government policymakers as they address the rapidly building fiscal pressures facing our national government. GAO’s most recent update of its annual simulations of the federal government’s fiscal outlook underscores the need to address the long-term sustainability of the federal government’s fiscal policies. 2 Since the end of the recent recession, the gross domestic product has grown slowly and unemployment has remained at a high level. While the economy is still recovering and in need of careful attention, there is widespread agreement on the need to look not only at the near term but also at steps that begin to change the long-term fiscal path as soon as possible without slowing the recovery. With the passage of time, the window to address the challenge narrows and the magnitude of the required changes grows. GAO’s simulations show continually increasing levels of debt that are unsustainable over time absent changes in current fiscal policies.

The objectives of this report are to (1) identify federal programs or functional areas where unnecessary duplication, overlap, or fragmentation exists, the actions needed to address such conditions, and the potential financial and other benefits of doing so; and (2) highlight other opportunities for potential cost savings or enhanced revenues. To meet these objectives, we are including 81 areas for consideration based on related GAO work. This report is divided into two sections. Section I presents 34 areas where agencies, offices, or initiatives have similar or overlapping objectives or provide similar services to the same populations; or where government missions are fragmented across multiple agencies or

1Pub. L. No. 111-139, § 21, 124 Stat. 29 (2010), 31 U.S.C. § 712 Note.

2GAO, The Federal Government’s Long-Term Fiscal Outlook: Fall 2010 Update, GAO-11-201SP (Washington, D.C.: Nov. 15, 2010). Additional information on the federal fiscal outlook, federal debt, and the outlook for the state and local government sector is available at: www.gao.gov/special.pubs/longterm/.

Comptroller General

of the United States

programs. These areas span a range of government missions: agriculture, defense, economic development, energy, general government, health, homeland security, international affairs, and social services. Within and across these missions, this report touches on hundreds of federal programs, affecting virtually all major federal departments and agencies. Overlap and fragmentation among government programs or activities can be harbingers of unnecessary duplication. Reducing or eliminating duplication, overlap, or fragmentation could potentially save billions of tax dollars annually and help agencies provide more efficient and effective services. The areas identified in this report are not intended to represent the full universe of duplication, overlap, or fragmentation within the federal government. We will continue to identify additional issues in future reports.

Given today’s fiscal environment, Section II of this report summarizes 47 additional areas—beyond those directly related to duplication, overlap, or fragmentation—describing other opportunities for agencies or Congress to consider taking action that could either reduce the cost of government operations or enhance revenue collections for the Treasury. These cost- savings and revenue opportunities also span a wide range of federal government agencies and mission areas. The issues raised in both sections were drawn from GAO’s prior and ongoing work.

Many of the issues included in this report are focused on activities that are contained within single departments or agencies. In those cases, agency officials can generally achieve cost savings or other benefits by implementing existing GAO recommendations or by undertaking new actions suggested in this report. However, a number of issues we have identified, particularly in the duplication area, span multiple organizations and therefore may require higher-level attention by the executive branch or enhanced congressional oversight or legislative action.

In some cases, there is sufficient information available today to show that if actions are taken to address individual issues summarized in this report, financial benefits ranging from the tens of millions to several billion dollars annually may be realized by addressing that single issue. For example, while the Department of Defense is making limited changes to the governance of its military health care system, broader restructuring could result in annual savings of up to $460 million. Similarly, we developed a range of options that could reduce federal revenue losses by up to $5.7 billion annually by addressing potentially duplicative policies designed to boost domestic ethanol production. Likewise, we identified a number of other opportunities for cost savings or enhanced revenues such

Page 2 GAO-11-318SP

as reducing improper federal payments totaling billions of dollars, or addressing the gap between taxes owed and paid, potentially involving billions of dollars. Collectively, these savings and revenues could result in tens of billions of dollars in annual savings, depending on the extent of actions taken.

In other cases, precise estimates of the extent of unnecessary duplication among certain programs, and the cost savings that can be achieved by eliminating any such duplication, are difficult to specify in advance of congressional and executive branch decision making. In some instances, needed information on program performance is not readily available; the level of funding in agency budgets devoted to overlapping or fragmented programs is not clear; and the implementation costs that might be associated with program consolidations or terminations, among other variables, are difficult to predict. For example, we identified 44 federal employment and training programs that overlap with at least one other program in that they provide at least one similar service to a similar population. However, our review of three of the largest programs showed that the extent to which individuals receive the same services from these programs is unknown due to program data limitations. In addition, Congress’ determinations in making policy decisions and actions that agencies may take would affect the potential savings associated with any given option.3 Nevertheless, considering the amount of program dollars involved in the issues we have identified, even limited adjustments could result in significant savings.

Given the challenges noted above, careful, thoughtful actions will be needed to address many of the issues discussed in this report, particularly those involving potential duplication. Additionally, in January 2011, the President signed the GPRA Modernization Act of 2010,4 updating the almost two-decades-old Government Performance and Results Act (GPRA).5 Implementing provisions of the new act—such as its emphasis on establishing outcome-oriented goals covering a limited number of crosscutting policy areas—could play an important role in clarifying

3The mandate calling for this report also asked GAO to identify specific areas where Congress may wish to cancel budget authority it has previously provided—a process known as rescission. To date, GAO’s work has not identified a basis for proposing specific funding rescissions.

4Pub. L. No. 111-352, 124 Stat. 3866 (2011).

5Pub. L. No. 103-62, 107 Stat. 285 (1993).

Page 3 GAO-11-318SP

desired outcomes, addressing program performance spanning multiple organizations, and facilitating future actions to reduce unnecessary duplication, overlap, and fragmentation.

As the nation rises to meet the current fiscal challenges, GAO will continue to assist Congress and federal agencies in reducing duplication, overlap, or fragmentation; achieving cost savings; and enhancing revenues. In GAO’s future annual reports, we will look at additional federal programs to identify further instances of duplication, overlap, or fragmentation, as well as other opportunities to reduce the cost of government operations or increase revenues to the government. Likewise, we will continue to monitor developments in the areas we have already identified. Issues of duplication, overlap, and fragmentation will be addressed in our routine audit work during the year as appropriate and summarized in our annual reports.

This report is based substantially upon work conducted for ongoing audits and previously completed GAO products, which were conducted in accordance with generally accepted government auditing standards or with GAO’s quality assurance framework, as appropriate. We conducted the work for the overall report from February 2010 through February 2011. For issues being reported on for the first time, GAO sought comments from the agencies involved and incorporated those comments as appropriate. Appendix II contains additional details of our scope and methodology.

This report was prepared under the coordination of Patricia Dalton, Chief Operating Officer, who may be reached at (202) 512-5600, or [email protected]; and Janet St. Laurent, Managing Director, Defense Capabilities and Management, who may be reached at (202) 512-4300, or [email protected] Specific questions about individual issues may be directed to the area contact listed at the end of each summary.

Gene L. Dodaro Comptroller General of the United States

Page 4 GAO-11-318SP

Section I: GAO Identified Areas of Potential

Duplication, Overlap, and Fragmentation,

Which, if Effectively Addressed, Could

Provide Financial and Other Benefits

Section I: GAO Identified Areas of Potential Duplication, Overlap, and Fragmentation, Which, if Effectively Addressed, Could Provide Financial and Other Benefits

Table 1 presents 34 areas for consideration related to duplication, overlap, or fragmentation from GAO’s recently completed and ongoing work. In some cases, there is sufficient information to estimate potential savings or other benefits if actions are taken to address individual issues. In those cases, as noted below, financial benefits ranging from hundreds of millions to several billion dollars annually may be realized. In other cases, estimates of cost savings or other benefits would depend upon what congressional and executive branch decisions were made, including how certain GAO recommendations are implemented. Additionally, information on program performance, the level of funding in agency budgets devoted to overlapping or fragmented programs, and the implementation costs that might be associated with program consolidations or terminations, are factors that could impact actions to be taken as well as potential savings. Following the table are summaries for each of the 34 areas listed. In addition to summarizing what GAO has found, each area presents actions for the executive branch or Congress to consider. Each of the summaries contains a “Framework for Analysis” providing the methodology used to conduct the work and a list of related GAO products for further information.

Table 1: Duplication, Overlap, or Fragmentation Areas Identified in This Report

Missions Agriculture

Defense

Areas identified 1. Fragmented food safety system has caused inconsistent

oversight, ineffective coordination, and inefficient use of resources

2. Realigning DOD’s military medical command structures and consolidating common functions could increase efficiency and result in projected savings ranging from $281 million to $460 million annually

3. Opportunities exist for consolidation and increased efficiencies to maximize response to warfighter urgent needs

Federal agencies and programs where duplication, overlap, or fragmentation may occur The Department of Agriculture’s (USDA) Food Safety and Inspection Service and the Food and Drug Administration are the primary food safety agencies, but 15 agencies are involved in some way Department of Defense (DOD), including the Office of the Assistant Secretary for Health Affairs, the Army, the Navy, and the Air Force At least 31 entities within DOD

Page

8

13

18

4. Opportunities exist to avoid unnecessary redundancies and improve the coordination of counter-improvised explosive device efforts

The services and other components within DOD 23

5. Opportunities exist to avoid unnecessary redundancies and maximize the efficient use of intelligence, surveillance, and reconnaissance capabilities

6. A departmentwide acquisition strategy could reduce DOD’s risk of costly duplication in purchasing Tactical Wheeled Vehicles

Multiple intelligence organizations within DOD

DOD, including Army and Marine Corps

26

31

Page 5 GAO-11-318SP Section I: Duplication, Overlap, or Fragmentation

Section I: GAO Identified Areas of Potential

Duplication, Overlap, and Fragmentation,

Which, if Effectively Addressed, Could

Provide Financial and Other Benefits

7. Improved joint oversight of DOD’s prepositioning programs for equipment and supplies may reduce unnecessary duplication

DOD including Air Force, Army, and Marine Corps 34

8. DOD business systems modernization: opportunities exist for optimizing business operations and systems

About 2,300 investments across DOD 38

Economic development

9. The efficiency and effectiveness of fragmented economic development programs are unclear

USDA, Department of Commerce (Commerce), Housing and Urban Development (HUD), and the Small Business Administration (SBA); 80 programs involved

42

10. The federal approach to surface transportation is fragmented, lacks clear goals, and is not accountable for

Five agencies within the Department of Transportation (DOT); over 100 programs 48

results involved 11. Fragmented federal efforts to meet water needs in the U.S.­ USDA, Commerce’s Economic

Mexico border region have resulted in an administrative Development Administration, burden, redundant activities, and an overall inefficient use of Environmental Protection Agency (EPA), resources Department of Health and Human

Services’ (HHS) Indian Health Service, 52

Department of the Interior’s (Interior) Bureau of Reclamation, HUD, and the U.S. Army Corps of Engineers

Energy 12. Resolving conflicting requirements could more effectively A number of agencies, including the achieve federal fleet energy goals Department of Energy (Energy) and the

General Services Administration (GSA) 55 play a role overseeing the governmentwide requirements

13. Addressing duplicative federal efforts directed at increasing EPA and the Department of the Treasury domestic ethanol production could reduce revenue losses 59 by up to $5.7 billion annually

General government

14. Enterprise architectures: key mechanisms for identifying potential overlap and duplication

Governmentwide 62

15. Consolidating federal data centers provides opportunity to Twenty-four federal agencies improve government efficiency and achieve significant cost 66 savings

16. Collecting improved data on interagency contracting to Governmentwide minimize duplication could help the government leverage its 70 vast buying power

17. Periodic reviews could help identify ineffective tax Governmentwide expenditures and redundancies in related tax and spending programs, potentially reducing revenue losses by billions of

75

dollars Health 18. Opportunities exist for DOD and VA to jointly modernize their

electronic health record systems DOD and the Department of Veterans Affairs (VA)

79

19. VA and DOD need to control drug costs and increase joint contracting whenever it is cost-effective

DOD and VA 82

20. HHS needs an overall strategy to better integrate nationwide public health information systems

Multiple agencies, led by HHS 88

Homeland 21. Strategic oversight mechanisms could help integrate USDA, DOD, Department of Homeland security/Law fragmented interagency efforts to defend against biological Security (DHS), HHS, Interior, and others; enforcement threats more than two dozen presidentially 92

appointed individuals with responsibility for biodefense

Page 6 GAO-11-318SP Section I: Duplication, Overlap, or Fragmentation

Section I: GAO Identified Areas of Potential

Duplication, Overlap, and Fragmentation,

Which, if Effectively Addressed, Could

Provide Financial and Other Benefits

22. DHS oversight could help eliminate potential duplicating DHS and other federal law enforcement efforts of interagency forums in securing the northern partners 96 border

23. The Department of Justice plans actions to reduce overlap in Department of Justice’s Federal Bureau explosives investigations, but monitoring is needed to of Investigation and Bureau of Alcohol, 101 ensure successful implementation Tobacco, Firearms and Explosives

24. TSA’s security assessments on commercial trucking DHS’s Transportation Security companies overlap with those of another agency, but efforts are Administration (TSA) and DOT 105 under way to address the overlap

25. DHS could streamline mechanisms for sharing security- Three information-sharing mechanisms related information with public transit agencies to help funded by DHS and TSA 111 address overlapping information

26. FEMA needs to improve its oversight of grants and establish DHS’s Federal Emergency Management a framework for assessing capabilities to identify gaps and Agency (FEMA); 17 programs involved 116 prioritize investments

International 27. Lack of information sharing could create the potential for Principally DOD and the U.S. Agency for affairs duplication of efforts between U.S. agencies involved in International Development 120

development efforts in Afghanistan 28. Despite restructuring, overlapping roles and functions still

exist at State’s Arms Control and Nonproliferation Bureaus Two bureaus within the Department of State (State)

123

Social 29. Actions needed to reduce administrative overlap among USDA, DHS, and HHS; 18 programs services domestic food assistance programs involved 125

30. Better coordination of federal homelessness programs may Seven federal agencies, including minimize fragmentation and overlap Department of Education (Education),

HHS, and HUD; over 20 programs 129

involved 31. Further steps needed to improve cost-effectiveness and USDA, DOT, Education, Interior, HHS,

enhance services for transportation-disadvantaged persons HUD, Department of Labor (Labor), and 134 VA; 80 programs involved

Training, 32. Multiple employment and training programs: providing Education, HHS, and Labor, among employment, and

information on colocating services and consolidating administrative structures could promote efficiencies

others; 44 programs involved 140

education 33. Teacher quality: proliferation of programs complicates Ten agencies including DOD, Education,

federal efforts to invest dollars effectively Energy, National Aeronautics and Space Administration, and the National Science

144

Foundation; 82 programs involved 34. Fragmentation of financial literacy efforts makes

coordination essential More than 20 different agencies; about 56 programs involved

151

Source: GAO analysis based on areas addressed in Section I of this report.

Page 7 GAO-11-318SP Section I: Duplication, Overlap, or Fragmentation

Fragmented Food Safety System Has Caused

Inconsistent Oversight, Ineffective

Coordination, and Inefficient Use of

Resources

Fragmented Food Safety System Has Caused Inconsistent Oversight, Ineffective Coordination, and Inefficient Use of Resources

Why GAO Is Focusing on This Area

The fragmented federal oversight of food safety has caused inconsistent oversight, ineffective coordination, and inefficient use of resources. Fifteen federal agencies collectively administer at least 30 food related laws. Budget obligations for the two primary food safety agencies—the Food and Drug Administration (FDA) and the U.S. Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS)—totaled over $1.6 billion in fiscal year 2009. USDA is responsible for the safety of meat, poultry, processed egg products, and catfish and FDA is responsible for virtually all other food, including seafood. Three major trends also create food safety challenges: (1) a substantial and increasing portion of the U.S. food supply is imported, (2) consumers are eating more raw and minimally processed foods, and (3) segments of the population that are particularly susceptible to food-borne illnesses, such as older adults and immune-compromised individuals, are growing.

What GAO Has Found to Indicate Duplication, Overlap, or Fragmentation

For more than a decade, GAO has reported on the fragmented nature of federal food safety oversight. The 2010 nationwide recall of more than 500 million eggs due to Salmonella contamination highlights this fragmentation. FDA is generally responsible for ensuring that shell eggs, including eggs at farms such as those where the outbreak occurred, are safe, wholesome, and properly labeled and FSIS is responsible for the safety of eggs processed into egg products. In addition, while USDA’s Agricultural Marketing Service sets quality and grade standards for the eggs, such as Grade A, it does not test the eggs for microbes such as Salmonella. Further, USDA’s Animal and Plant Health Inspection Service helps ensure the health of the young chicks that are supplied to egg farms, but FDA oversees the safety of the feed they eat.

Oversight is also fragmented in other areas of the food safety system. For example, the 2008 Farm Bill assigned USDA responsibility for catfish, thus splitting seafood oversight between USDA and FDA. In September 2009, GAO also identified gaps in food safety agencies’ enforcement and collaboration on imported food. Specifically, the import screening system used by the Department of Homeland Security’s Customs and Border Protection (CBP) does not notify FDA’s or FSIS’s systems when imported foo

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