A letter report issued by the General Accounting Office with an abstract that begins "The Air Force depot maintenance activity group in-house operations generate about $5 billion in annual revenue principally by repairing aircraft, missiles, engines, and other assets. In doing so, the group operates under the working capital fund concept, where customers are to be charged the anticipated costs of providing goods and services to them. The group's average price for in-house work almost doubled between fiscal years 2000 and 2004 from $119.99 per hour to $237.84 per hour. GAO was asked to determine (1) what factors were primarily responsible for the price increase, (2) if the prices charged recovered the reported actual costs of performing the work, and (3) if the Air Force has taken effective steps to improve efficiency and control the activity group's costs."

Testimony issued by the General Accounting Office with an abstract that begins "The security of U.S. commercial aviation is a long-standing concern, and substantial efforts have been undertaken to strengthen it. One such effort is the development of a new Computer-Assisted Passenger Prescreening System (CAPPS II) to identify passengers requiring additional security attention. The development of CAPPS II has raised a number of issues, including whether individuals may be inappropriately targeted for additional screening and whether data accessed by the system may compromise passengers' privacy. GAO was asked to summarize the results of its previous report that looked at (1) the development status and plans for CAPPS II; (2) the status of CAPPS II in addressing key developmental, operational, and public acceptance issues; and (3) additional challenges that could impede the successful implementation of the system."

Testimony issued by the General Accounting Office with an abstract that begins "A critical component of the Department of Veterans Affairs' (VA) information technology program is its ongoing work with the Department of Defense (DOD) to achieve the ability to exchange patient health care data and create electronic records for use by veterans, active military personnel, and their health care providers. GAO testified before Congress last November that one-way sharing of data, from DOD to VA medical facilities, had been realized. At the Congress's request, GAO assessed, among other matters, VA's and DOD's progress since that time toward defining a detailed strategy for and developing the capability of a twoway exchange of patient health information."

Correspondence issued by the General Accounting Office with an abstract that begins "Since September 2001, about 360,000 reservists have been called to active duty to support the war on terrorism, conflicts in Afghanistan and Iraq, and other operations. Some reservists have been on active duty for a year or more, and the pace of reserve operations is expected to remain high for the foreseeable future. When mobilized for active duty under federal authorities, reservists are eligible to receive health care benefits through DOD's military health care system, TRICARE. When reservists are ordered to active duty for more than 30 days, their families are also eligible for health benefits. DOD supplements its military health care facilities with civilian health care providers through its triple-option TRICARE program. DOD's beneficiaries may enroll in TRICARE's Prime option and go to a network provider to receive care; without enrolling, they can see a network provider through the preferred provider option, Extra; or they may elect to use Standard, the fee-for-service option. Some beneficiaries have raised concerns about difficulties in finding civilian providers--particularly Standard, non-network providers--who will accept TRICARE beneficiaries as patients. The National Defense Authorization Act (NDAA) for Fiscal Year 2004, enacted on November 24, …

A letter report issued by the General Accounting Office with an abstract that begins "Recent cost increases in renovation projects to general and flag officer quarters raised questions about the services' management of the programs. GAO was asked to determine (1) how actual costs of renovation projects for general and flag officer housing compare to service budget estimates provided to Congress and (2) the primary reasons for any increases and the services' procedures to control cost increases. Additionally, GAO is presenting observations about the services' accountability over gifts provided to help renovate some general and flag officer quarters and the extent to which Department of Defense (DOD) guidance provides visibility and control over costs associated with renovation projects for privatized general and flag officer quarters."

Correspondence issued by the General Accounting Office with an abstract that begins "The Department of Defense's (DOD) long-standing business systems problems adversely affect the economy, effectiveness, and efficiency of its business operations and have resulted in a lack of adequate transparency and appropriate accountability across all of its major business areas. In July 2001, DOD initiated a program to, among other things, develop a DOD business enterprise architecture (architecture). This effort is an essential part of the Secretary of Defense's broad initiative to "transform the way the department works and what it works on." Because DOD is one of the largest and most complex organizations in the world, overhauling its business operations and supporting systems represents a huge management challenge. In fiscal year 2003, DOD reported that its operations involved over $1 trillion in assets, nearly $1.6 trillion in liabilities, approximately 3.3 million military and civilian personnel, and disbursements of over $416 billion. To support its business operations, DOD reported that it relies on about 2,300 business systems, including accounting, acquisition, logistics, and personnel systems. The department requested about $19 billion--about $4.8 billion for business systems modernization and about $14 billion for operation and maintenance of these systems--in fiscal year …

A chapter report issued by the General Accounting Office with an abstract that begins "Starting in the mid-1990s, the U.S. petroleum industry experienced a wave of mergers, acquisitions, and joint ventures, several of them between large oil companies that had previously competed with each other. For example, Exxon, the largest U.S. oil company, acquired Mobil, the second largest, thus forming ExxonMobil. GAO was asked to examine the effects of the mergers on the U.S. petroleum industry since the 1990s. For this period, GAO examined (1) mergers in the U.S. petroleum industry and why they occurred, (2) the extent to which market concentration (the distribution of market shares among competing firms) and other aspects of market structure in the U.S. petroleum industry have changed as a result of mergers, (3) major changes that have occurred in U.S. gasoline marketing, and (4) how mergers and market concentration in the U.S. petroleum industry have affected U.S. gasoline prices at the wholesale level. Commenting on a draft of GAO's report, FTC asserted that the models were flawed and the analyses unreliable. GAO used state-of-the-art econometric models to examine the effects of mergers and market concentration on wholesale gasoline prices. The models used in GAO's …

A letter report issued by the General Accounting Office with an abstract that begins "The current generation of unmanned aerial vehicles (UAVs) has been under development for defense applications since the 1980s. UAVs were used in Afghanistan and Iraq in 2002 and 2003 to observe, track, target, and strike enemy forces. These successes have heightened interest in UAVs within the Department of Defense (DOD) and the services. GAO was asked to (1) determine how much funding DOD requested, was appropriated, and was obligated for major UAV development efforts during fiscal years 1999-2003 and (2) assess whether DOD's approach to planning for UAVs provides reasonable assurance that its investment in UAVs will facilitate their integration into the force structure."

Testimony issued by the General Accounting Office with an abstract that begins "The Commodity Import Program (CIP), managed by the U.S. Agency for International Development (USAID), is intended to foster a competitive private sector in Egypt, in addition to assisting U.S. exporters. The program also supports the government of Egypt and USAID activities and expenses in Egypt. Since 1992, Congress has appropriated at least $200 million per year for the CIP. In 1998, the United States negotiated a reduction in its economic assistance to Egypt, including the CIP, through fiscal year 2009. In this context, GAO was asked to discuss its ongoing analysis of (1) program participants' use of the CIP and the Egyptian government's and USAID's use of program funds and (2) factors that have affected the CIP's ability to foster a competitive private sector in Egypt. We received comments on a draft of this statement from USAID, which we incorporated where appropriate. In general, USAID agreed with our observations."

A letter report issued by the General Accounting Office with an abstract that begins "Congress created the Russian Leadership Program in 1999 as a pilot project to promote mutual understanding by exposing emerging Russian leaders to the American economic system and democratic institutions. In 2003, Congress renamed the program the Open World Leadership Center, expanded its scope, and extended eligibility to a number of other countries. Because Open World had not been independently evaluated, GAO was asked to review (1) the program's progress toward achieving its overall purpose and (2) whether it has appropriate financial management and accountability mechanisms in place."

Testimony issued by the General Accounting Office with an abstract that begins "GAO summarized the results of its investigation of some of the business practices of certain U.S. Internet pharmacies that sold narcotics without a prescription. At the request of the Chairman, Permanent Subcommittee on Investigations, Senate Committee on Governmental Affairs, GAO attempted to obtain information about the sources of hydrocodone that it purchased without a prescription from eight U.S. online pharmacies. Hydrocodone is an addictive narcotic pain medication, and illicit use of this drug has increased significantly in recent years."

A letter report issued by the General Accounting Office with an abstract that begins "As the demand for and the cost of prescription drugs rise, many consumers have turned to the Internet to purchase drugs. However, the global nature of the Internet can hinder state and federal efforts to identify and regulate Internet pharmacies to help assure the safety and efficacy of products sold. Recent reports of unapproved and counterfeit drugs sold over the Internet have raised further concerns. GAO was asked to examine (1) the extent to which certain drugs can be purchased over the Internet without a prescription; (2) whether the drugs are handled properly, approved by the Food and Drug Administration (FDA), and authentic; and (3) the extent to which Internet pharmacies are reliable in their business practices. GAO attempted to purchase up to 10 samples of 13 different drugs, each from a different pharmacy Web site, including sites in the United States, Canada, and other foreign countries. GAO determined whether the samples contained a pharmacy label with patient instructions for use and warnings on the labels or the packaging and forwarded the samples to their manufacturers to determine whether they were approved by FDA and authentic. …

Testimony issued by the General Accounting Office with an abstract that begins "As the demand for and the cost of prescription drugs rise, many consumers have turned to the Internet to purchase them. However, the global nature of the Internet can hinder state and federal efforts to identify and regulate Internet pharmacies to help assure the safety and efficacy of products sold. Recent reports of unapproved and counterfeit drugs sold over the Internet have raised further concerns. This testimony summarizes a GAO report: Internet Pharmacies: Some Pose Safety Risks for Consumers, GAO-04-820 (June 17, 2004). GAO was asked to examine (1) the extent to which certain drugs can be purchased over the Internet without a prescription; (2) whether the drugs are handled properly, approved by the Food and Drug Administration (FDA), and authentic; and (3) the extent to which Internet pharmacies are reliable in their business practices. GAO attempted to purchase up to 10 samples of 13 different drugs, each from a different pharmacy Web site, including sites in the United States, Canada, and other foreign countries. GAO assessed the condition of the samples it received and forwarded the samples to their manufacturers to determine whether they were approved by …

A letter report issued by the General Accounting Office with an abstract that begins "The Defense Base Realignment and Closure Act of 1990, as amended, required the Department of Defense (DOD) to address several base realignment and closure (BRAC) issues in 2004 for the 2005 BRAC round to proceed. The requirements included reporting on a 20-year force structure plan, an inventory of military installations, and separately adopting selection criteria for the upcoming round. The legislation also required DOD to certify whether an additional BRAC round was needed, and, if so, that annual net savings would be realized not later than fiscal year 2011. If the certifications were provided, GAO was required to evaluate DOD's submissions and report to Congress. DOD reported on March 23, 2004, and provided the certifications. In this report GAO evaluates (1) DOD's responsiveness to legislative requirements; (2) the force structure plan, infrastructure inventory, and selection criteria; (3) other key issues included in DOD's report; and (4) DOD's certification regarding the need for an additional BRAC round."

A letter report issued by the General Accounting Office with an abstract that begins "In 1967, the Congress created the National Park Foundation (Foundation)--a nonprofit organization with the sole purpose of providing private support to the National Park Service (Park Service). However, some Park Service officials have raised concerns that the Foundation's support is not meeting parks' priority needs. In this context, congressional requesters asked GAO to review the activities of the Foundation by determining the (1) Foundation's roles and responsibilities for raising funds to support the Park Service, (2) amount and kinds of donations the Foundation has raised between fiscal years 1999 and 2003, and (3) extent to which the contributions obtained by the Foundation assisted the Park Service in addressing park priorities."

A letter report issued by the General Accounting Office with an abstract that begins "In March 2002, the most serious safety issue confronting the nation's commercial nuclear power industry since Three Mile Island in 1979 was identified at the Davis- Besse plant in Ohio. After the Nuclear Regulatory Commission (NRC) allowed Davis-Besse to delay shutting down to inspect its reactor vessel for cracked tubing, the plant found that leakage from these tubes had caused extensive corrosion on the vessel head--a vital barrier preventing a radioactive release. GAO determined (1) why NRC did not identify and prevent the corrosion, (2) whether the process NRC used in deciding to delay the shutdown was credible, and (3) whether NRC is taking sufficient action in the wake of the incident to prevent similar problems from developing at other plants."

A letter report issued by the General Accounting Office with an abstract that begins "The Postal Service is on the cusp of a major transformation to improve its fiscal outlook. One part of this transformation involves procurement. The Postal Service is homing in on supply chain management, a process that has helped successful private-sector companies leverage their buying power and identify more efficient ways to procure goods and services. To assist congressional efforts to enact fundamental postal reform, GAO was asked to determine (1) the extent to which the Postal Service has been successful in implementing and realizing savings from its supply chain management initiatives and (2) whether these initiatives have had an effect on small businesses."

A letter report issued by the General Accounting Office with an abstract that begins "Colorectal cancer is the second leading cause of cancer deaths in the United States. Its mortality can be reduced through early detection and treatment. Four key tests are used to detect the cancer--fecal occult blood test (FOBT), flexible sigmoidoscopy, double-contrast barium enema (DCBE), and colonoscopy. Private health insurance plans generally cover these tests to diagnose cancer; however, the extent to which plans cover the tests for screening purposes--where no symptoms are evident--is less clear. Congress is considering legislation that would require coverage of the tests for screening purposes among all private health insurance plans. GAO was asked to (1) identify the state laws that require private health insurance coverage of these screening tests; and (2) determine the extent to which the tests are covered among small employer, individual, large employer, and federal employee health plans. GAO summarized state laws that require coverage of the tests. GAO examined test coverage among a sample of the largest 19 small employer and 14 individual plans in 10 states without laws requiring the coverage, and among 35 large employer plans nationally. The findings cannot be generalized beyond these plans. GAO …

Testimony issued by the General Accounting Office with an abstract that begins "Consolidation loans, available under the Department of Education's (Education) two major student loan programs--the Federal Family Education Loan Program (FFELP) and the William D. Ford Direct Loan Program (FDLP)--help borrowers manage their student loan debt. By combining multiple loans into one loan and extending the repayment period, a consolidation loan reduces monthly repayments, which may lower default risk and, thereby, reduce federal costs of loan defaults. Consolidation loans also allow borrowers to lock in a fixed interest rate, an option not available for other student loans. Consolidation loans under FFELP and FDLP accounted for about 48 percent of the $87.4 billion in total new student loan dollars that originated during fiscal year 2003. Two main types of federal cost pertain to consolidation loans. One is "subsidy"--the net present value of cash flows to and from the government that result from providing these loans to borrowers. For FFELP consolidation loans, cash flows include, for example, fees paid by lenders to the government and a special allowance payment by the government to lenders to provide them a guaranteed rate of return on the student loans they make. For FDLP consolidation …

A letter report issued by the General Accounting Office with an abstract that begins "The Jobs and Growth Tax Relief Reconciliation Act of 2003 provided eligible taxpayers up to $400 in advance Child Tax Credit (ACTC) payments. GAO was asked for information on (1) the number, dollar amount, and timeliness of the ACTC payments, (2) the impact on the Internal Revenue Service's (IRS') toll-free telephone service, (3) the cost to IRS and the Financial Management Service (FMS) for implementing the advance payment effort, including the impact of these costs on other IRS programs, and (4) the extent to which IRS identified and used evaluations from the 2001 advance refund effort to implement the ACTC payment effort and whether an evaluation of the ACTC payment effort is planned."

A letter report issued by the General Accounting Office with an abstract that begins "The nation's roads, highways, and bridges are essential to mobility but can have negative effects on plants, animals, and the habitats that support them (collectively called ecosystems in this report). Federally funded transportation projects progress through three planning phases: long range (20 or more years), short range (3 to 5 years), and early project development, (collectively defined as planning in this report) before undergoing environmental review (which includes assessing air and water quality, ecosystems, and other impacts) required under the National Environmental Policy Act. Federal law requires planners to consider protecting and enhancing the environment in the first two phases, but does not specify how and does not require such consideration in the third phase. GAO reported on (1) the extent to which transportation planners consider ecosystem conservation in planning, (2) the effects of such consideration, and (3) the factors that encourage or discourage such consideration. GAO contacted 36 planning agencies (24 states and 12 of approximately 380 metropolitan planning organizations), as well as officials in 22 resource agencies that maintain ecological data and administer environmental laws. The Department of Transportation and U.S. Army Corps of …

Correspondence issued by the General Accounting Office with an abstract that begins "In 1996, the Air Force launched an acquisition program to develop and produce a revolutionary laser weapon system, the Airborne Laser (ABL), capable of defeating an enemy ballistic missile during the boost phase of its flight. Over the last 8 years, the program's efforts to develop this technology have resulted in significant cost growth and schedule delays. These events led Senate Members to request that we answer the following questions: (1) how much and why has the ABL's cost increased since the program's inception; (2) what is the expected military utility of the initial ABL aircraft; (3) what support systems will be required when the ABL is fielded and what is the likely cost of those systems; and (4) have recent program changes resulted in a more cost effective strategy for developing the weapon?"

Testimony issued by the General Accounting Office with an abstract that begins "The current generation of unmanned aerial vehicles (UAVs) has been under development since the 1980s. UAVs were used in Afghanistan and Iraq in 2002 and 2003 to observe, track, target, and strike enemy forces. These successes have heightened interest in UAVs within the Department of Defense (DOD). Congress has been particularly interested in DOD's approach to managing the growing number of UAV programs. GAO was asked to summarize (1) the results of its most current report on DOD's approach to developing and fielding UAVs1 and the extent to which the approach provides reasonable assurance that its investment will lead to effective integration of UAVs into the force structure, and (2) the major management issues GAO has identified in prior reports on UAV research and development."

Testimony issued by the General Accounting Office with an abstract that begins "The Department of Veterans Affairs (VA) Office of Inspector General (OIG) has continued to identify significant vulnerabilities in the department's use of government purchase cards. Over the years, the OIG has identified internal control weaknesses that resulted in instances of fraud and numerous improper and questionable uses of purchase cards. The OIG has made a number of recommendations for corrective action. Given that VA is the second largest user of the governmentwide purchase card program, with reported purchases totaling $1.5 billion for fiscal year 2002, and because of the program weaknesses reported by the OIG, GAO was asked to determine whether existing controls at the Veterans Health Administration (VHA) were designed to provide reasonable assurance that improper purchases would be prevented or detected in the normal course of business, purchase card and convenience check expenditures were made in compliance with applicable laws and regulations, and purchases were made for a reasonable cost and a valid government need. GAO's report on this issue, released concurrently with this testimony, makes 36 recommendations to strengthen internal controls and compliance in VHA's purchase card program to reduce its vulnerability to improper, wasteful, …