Correspondence issued by the Government Accountability Office with an abstract that begins "In 2009, Medicare--a federal health insurance program that serves about 46.3 million beneficiaries--spent approximately $8.1 billion on durable medical equipment (DME), prosthetics, orthotics, and related supplies for 10.6 million beneficiaries. DME includes items such as wheelchairs, hospital beds, and walkers. Medicare beneficiaries typically obtain DME items from suppliers, who submit claims for payment for these items to Medicare on behalf of beneficiaries. The Centers for Medicare & Medicaid Services (CMS), an agency within the Department of Health and Human Services (HHS), has responsibility for administering the Medicare program. Both we and HHS's Office of Inspector General (OIG) have reported that Medicare and its beneficiaries--through their out-of-pocket costs--have sometimes paid higher than market rates for various medical equipment and supplies. To achieve Medicare savings for DME and to address DME fraud concerns, Congress, through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA), required CMS to phase in a competitive bidding program (CBP) for DME suppliers in selected competitive bidding areas (CBA). In CBP, suppliers submit bid prices in the amounts they are willing to accept as payment to provide DME items to Medicare beneficiaries. CMS then …

Correspondence issued by the Government Accountability Office with an abstract that begins "Federal agencies rely on a multisector workforce of federal employees and contractor personnel to perform services needed to carry out their missions. Determining whether to obtain services through insourcing with current or new federal employees, outsourcing with private-sector contractors, or sourcing with a combination of the two is an important economic and strategic decision essential to the federal government's effective and efficient use of taxpayer dollars. Since fiscal year 2006, civilian agencies have obligated over $100 billion annually to obtain a range of services from contractors. Almost 80 percent of contract obligations made by civilian agencies in fiscal year 2010 were for service contracts. Since the mid-1950s, the executive branch has encouraged federal agencies to obtain commercially available services from the private sector when outsourcing is cost effective. In 2009, however, the President issued a memorandum on government contracting that expressed concern about whether agencies have become overly reliant on contractors and have appropriately outsourced services. In particular, the President noted that the line between inherently governmental functions--those that must be performed by federal employees--and commercial activities that may be contracted for has been blurred. In the memorandum, …

Document issued by the Office of the Attorney General of Texas in Austin, Texas, providing an interpretation of Texas law. It provides the opinion of the Texas Attorney General, Greg Abbott, regarding a legal question submitted for clarification; Requirements for real property to qualify as an "ecological laboratory" under section 23.51, Tax Code (RQ-0934-GA)

Testimony issued by the Government Accountability Office with an abstract that begins "Since the National Aeronautics and Space Administration (NASA) created the strategy for the Commercial Orbital Transportation Services (COTS) project in 2005, the space landscape has changed significantly--the Space Shuttle program is retiring and the Ares I will not be available--increasing the importance of the timely development of COTS vehicles. The lack of alternatives for supplying the International Space Station and launching science missions have all contributed to an increased need for the COTS vehicles. The two COTS project partners, Orbital and SpaceX, have made progress in the development of their respective vehicles; however, both providers are behind schedule. As a result, the project recently received an additional $300 million to augment development efforts with risk reduction milestones. This testimony focuses on: (1) COTS development activities, including the recent funding increase; (2) the extent to which any COTS demonstration delays have affected commercial resupply services (CRS) missions and NASA's plans for meeting the space station's cargo resupply needs; and (3) lessons learned from NASA's acquisition approach for COTS. To prepare this statement, GAO used its prior relevant work and conducted additional audit work, such as analyzing each partner's agreement …

Correspondence issued by the Government Accountability Office with an abstract that begins "Our recent reviews of U.S counternarcotics programs in Mexico and Afghanistan highlighted the need to improve the programs' performance measures to track progress. The Department of State (State) received over $1 billion in its fiscal year 2010 appropriation for international counternarcotics assistance programs. The vast majority of this funding--about 90 percent in fiscal year 2010--supports counternarcotics programs in five countries--Mexico, Afghanistan, Colombia, Peru, and Bolivia. State's Bureau of International Narcotics and Law Enforcement Affairs (INL) is primarily responsible for implementing U.S. assistance programs involving eradication of illicit crops, interdiction of drug trafficking, and drug demand reduction, which represented about 85 percent of State's counternarcotics appropriation in fiscal year 2010. INL implements a large share of its funding through contractors, primarily for aviation support for eradication and interdiction efforts. Congress asked us to review State's performance measures for its counternarcotics programs. On March 10, 2011, we briefed congressional staff on our preliminary findings in which we described State's performance management system, including State's standard indicators for measuring the performance of counternarcotics assistance in recipient countries and requirements for posts to develop project-specific performance measures. Following the briefing, in subsequent …

Correspondence issued by the Government Accountability Office with an abstract that begins "Over the last few years, the National Aeronautics and Space Administration (NASA) has increasingly relied on its authority under the Space Act of 1958 to enter into agreements, commonly referred to as Space Act agreements (SAA), to stimulate private sector development of systems capable of transporting cargo and crew to the International Space Station and to assist partner firms in developing their technologies. Reimbursable Space Act agreements involve the use of NASA's facilities, personnel, or equipment primarily for the benefit of the agreement partner. NASA undertakes reimbursable work when it has unique goods, services, or facilities which can be made available to another party in a manner that does not interfere with NASA mission requirements and is consistent with the agency's mission. According to NASA guidance, the agency generally collects full reimbursement for costs associated with a reimbursable agreement. These types of agreements are known as fully reimbursable SAAs. However, NASA can accept less than full reimbursement in certain instances, such as when the reimbursement is fair and reasonable when compared to the benefits NASA receives from the work. When NASA waives costs under a reimbursable SAA, NASA …

Correspondence issued by the Government Accountability Office with an abstract that begins "Today, GAO issued a correspondence identifying the internal controls that the National Aeronautics and Space Administration (NASA) has in place for reimbursable Space Act agreements and assessing to what extent the agency is adhering to those controls. Specifically, our review focused on NASA's internal controls related to (1) fair reimbursement from agreement partners; (2) interference between agreement partners' work and NASA's use of its facilities; and (3) alignment of agreement partners' work with NASA's mission. In that correspondence, we reported that NASA was generally adhering to its controls for entering into reimbursable Space Act agreements. In our review, however, we also found several instances in which agreements were not completely and accurately recorded in the Space Act Agreement Maker (SAAM) database. In addition, we identified one instance where NASA awarded a reimbursable agreement when similar services may have been available in the private sector. This action appears contrary to the National Space Policy and may have also been contrary to the Commercial Space Competitiveness Act. Federal government standards for internal controls state that control activities should help ensure that all transactions are completely and accurately recorded. NASA's SAAM …

Correspondence issued by the Government Accountability Office with an abstract that begins "To restore stability and liquidity to the financial system, Congress established the $700 billion Troubled Asset Relief Program (TARP) and directed the Department of the Treasury (Treasury) to use the authorities granted under TARP to, among other things, preserve homeownership and protect home values. In February 2009, Treasury announced that up to $50 billion in TARP funds had been allocated to help struggling homeowners avoid potential foreclosure. However, the number of borrowers facing potential foreclosure has remained at historically high levels. In fact, in the first 2 years of the TARP-funded Home Affordable Modification Program (HAMP), more borrowers were denied or canceled from trial loan modifications than were given permanent modifications. In three prior reports, we looked at the implementation of HAMP and made several recommendations that were intended to address the challenges that Treasury faced in implementing the program. To better understand the experience of borrowers seeking HAMP modifications, we conducted a Web-based survey of housing counselors through the National Foreclosure Mitigation Counseling Program (NFMC) to obtain the counselors' perspectives of borrowers' experiences with HAMP. NFMC is administered by NeighborWorks America and funds approximately 130 grantees and …

Testimony issued by the Government Accountability Office with an abstract that begins "Since fiscal year 2001, the federal government has been unable to collect over $1 billion in antidumping (AD) and countervailing (CV) duties imposed to remedy injurious, unfair foreign trade practices. These include AD duties imposed on products exported to the United States at unfairly low prices (i.e., dumped) and CV duties on products exported to the United States that were subsidized by foreign governments. These uncollected duties show that the U.S. government has not fully remedied the unfair trade practices for U.S. industry and has lost out on a substantial amount of duty revenue to the U.S. Treasury. This statement summarizes key findings from prior GAO reports on (1) past initiatives to improve AD/CV duty collection and (2) additional options for improving AD/CV duty collection."

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the potential for duplication and fragmentation in economic development programs. In March 2011 and more recently in May 2011 we reported on potential duplication among federal economic development programs. We are involved in ongoing work focusing on economic development programs because if they are administered efficiently and effectively, they can contribute to the well-being of our nation's economy at the least cost to taxpayers. Absent a common definition for economic development, we had previously developed a list of nine activities most often associated with economic development. These activities include planning and developing strategies for job creation and retention, developing new markets for existing products, building infrastructure by constructing roads and sewer systems to attract industry to undeveloped areas, and establishing business incubators to provide facilities for new businesses' operations. Our recent work includes information on 80 economic development programs at four agencies--the Departments of Commerce (Commerce), Housing and Urban Development (HUD), and Agriculture (USDA) and the Small Business Administration (SBA). SBA administers 19 of the 80 programs. According to the agencies, funding provided for these 80 programs in fiscal year 2010 amounted to $6.2 billion, …

Correspondence issued by the Government Accountability Office with an abstract that begins "Although a postsecondary education is vitally important to many individuals and the nation's ability to compete globally, high college tuition rates are prompting concerns that it may remain an elusive goal for some. To help students finance their education, Congress recently raised the ceiling on the amount individual students can borrow under the federal Stafford Loan program (referred to in legislation as "loan limits"). Congress initially did so for first- and second-year undergraduate students as well as for graduate and professional students in academic year (AY) 2007-08, and subsequently for all qualified undergraduate students receiving unsubsidized Stafford loans in AY 2008-09. The Ensuring Continued Access to Student Loans Act of 2008 directed GAO to assess the impact of these increases in the loan limits on tuition and other expenses and borrowing. Since information was available only on the first loan limit increase, we focused on the AY 2007-08 loan limit increase, framing our study with three key questions: (1) What are the patterns in prices and undergraduate enrollment at institutions of higher education since the AY 2007-08 loan limit increases took effect? (2) To what extent did undergraduate …

Testimony issued by the Government Accountability Office with an abstract that begins ""

Testimony issued by the Government Accountability Office with an abstract that begins "In 2010, the Internal Revenue Service (IRS) processed about 137 million individual income tax returns and issued 107 million refunds totaling over $312 billion. The compliance checks it performs before refunds are issued thus could affect millions of taxpayers and billions of dollars of refunds by identifying taxpayers who overclaim or underclaim tax benefits to which they are entitled. Math error authority (MEA) is just one example of the prerefund compliance checks that IRS uses. During 2010, IRS sent taxpayers 8.4 million notices for almost 10.6 million math errors identified on their 2009 individual tax returns. GAO's statement today will focus on three key areas: (1) prerefund checks and their benefits, (2) how those checks can be enhanced immediately, and (3) how they may be enhanced in the future. It is mostly based on GAO's previous work issued from 2008 through 2011, including an interim report on IRS's 2011 tax filing season, and our ongoing analysis of the 2011 filing season."

Testimony issued by the Government Accountability Office with an abstract that begins "Identity theft is a serious and growing problem in the United States. Taxpayers are harmed when identity thieves file fraudulent tax documents using stolen names and Social Security numbers. In 2010 alone, the Internal Revenue Service (IRS) identified over 245,000 identity theft incidents that affected the tax system. The hundreds of thousands of taxpayers with tax problems caused by identity theft represent a small percentage of the expected 140 million individual returns filed, but for those affected, the problems can be quite serious. GAO was asked to describe, among other things, (1) when IRS detects identity theft based refund and employment fraud, (2) the steps IRS has taken to resolve, detect, and prevent innocent taxpayers' identity theft related problems, and (3) constraints that hinder IRS's ability to address these issues. GAO's testimony is based on its previous work on identity theft. GAO updated its analysis by examining data on identity theft cases and interviewing IRS officials. GAO makes no new recommendations but reports on IRS's efforts to address GAO's earlier recommendation that IRS develop performance measures and collect data suitable for assessing the effectiveness of its identity theft …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the results of our most recent report, which we are releasing today, on American Recovery and Reinvestment Act of 2009 (Recovery Act) contract and grant recipients that owe federal taxes. Collectively, individuals, businesses, and other entities owed the U.S. government about $330 billion in known unpaid taxes, including interest and penalties, as of September 30, 2010, according to the Internal Revenue Service (IRS). IRS enforcement of the nation's tax laws continues to be on our High-Risk List. The Recovery Act appropriated $275 billion to be distributed for federal contracts, grants, and loans. According to www.Recovery.gov (Recovery.gov) data on federal spending, as of March 25, 2011, about $191 billion of that amount had been paid out. As far back as 1992, we have said that Congress should consider whether tax compliance should be a prerequisite for receiving a federal contract. Federal law does not prohibit the awarding of contracts or grants to entities because they owe federal taxes and does not permit IRS to disclose taxpayer information, including unpaid federal taxes, to federal agencies unless the taxpayer consents. Because of the potential that some Recovery Act …

Correspondence issued by the Government Accountability Office with an abstract that begins "Landmines and other explosive remnants of war cause thousands of casualties worldwide each year. Since 1993, the United States--through the Department of State's (State) Humanitarian Mine Action Program--has contributed funding to more than 80 countries, providing tens of millions of dollars annually to rid the world of landmines and other explosive remnants of war. In 2006, to address the counter-improvised explosive device (IED) threat against U.S. military forces, the Department of Defense (DOD) established the Joint IED Defeat Organization (JIEDDO). Through fiscal year 2010, Congress has appropriated more than $17 billion to JIEDDO to quickly develop and field counter-IED solutions. In the committee report accompanying the House of Representatives' version of the National Defense Authorization Act for fiscal year 2011, the House Armed Services Committee directed that we review the applicability of JIEDDO initiatives to humanitarian demining efforts. To respond to the requirements of this mandate, we addressed the following questions: (1) What JIEDDO-supported technologies have DOD identified that could be applicable to humanitarian demining? and (2) To what extent does coordination occur (a) within DOD and (b) between DOD and State regarding JIEDDO-supported technologies that could be …

Correspondence issued by the Government Accountability Office with an abstract that begins "At a time when the military is supporting ongoing operations in many places around the world, the Department of Defense (DOD) faces challenges balancing the strategic capability needs of the military services with the more immediate joint warfighting needs of the combatant commands (COCOM). Given concerns that the military service-dominated system for developing capabilities was not meeting the most essential warfighter needs, in 2003, DOD created the Joint Capabilities Integration and Development System (JCIDS) to guide the development of capabilities from a joint perspective. DOD's Joint Requirements Oversight Council (JROC) oversees JCIDS and participates in the development of joint requirements, which includes the identification and analysis and synthesis of capability gaps and the JROC's subsequent validation of capability needs through JCIDS. Following stakeholder collaboration and deliberations, the JROC makes recommendations to the Chairman of the Joint Chiefs of Staff, who advises the Secretary of Defense about which capabilities to invest in as part of DOD's budget process. Before making investment decisions, the services consider the validated capabilities during their planning, programming, and budgeting processes and make decisions among competing investments. In the Weapon Systems Acquisition Reform Act of …

Correspondence issued by the Government Accountability Office with an abstract that begins "This letter formally discusses a congressional request to review the Department of Homeland Security's framework for securing critical infrastructure and key resources (CIKR), and subsequent agency comments. As such, this correspondence provides information on: (1) how DHS coordinates with CIKR stakeholders to identify overlaps and gaps in CIKR security activities across all sectors, (2) how DHS addresses these potential overlaps in CIKR security activities, and (3) how DHS addresses CIKR security gaps. To conduct this work, among other things, we selected a non-random sample of nine sectors with a mix of regulations related to security to obtain stakeholders views on working with DHS to identify and address overlaps and gaps in CIKR activities; reviewed applicable laws and regulations, DHS documents such as the National Infrastructure Protection Plan, and pertinent GAO reports; and interviewed DHS officials in the Office of Infrastructure Protection (IP) in the National Protection and Programs Directorate and officials representing the sectors we selected. While the results of these efforts are not generalizable to all CIKR sectors, stakeholders, and activities, they provided valuable insights into CIKR partner perspectives across a range of CIKR."

Correspondence issued by the Government Accountability Office with an abstract that begins "One of the areas included in our recent report on potential duplication among federal programs was economic development. If economic development programs are administered efficiently and effectively, they can contribute to the well-being of our nation's economy at the least cost to taxpayers. Absent a common definition for economic development, we had previously developed a list of nine activities most often associated with economic development. These activities include planning and developing strategies for job creation and retention, developing new markets for existing products, building infrastructure by constructing roads and sewer systems to attract industry to undeveloped areas, and establishing business incubators to provide facilities for new businesses' operations, among others. Our recent work included information on 80 economic development programs at four agencies--the Departments of Commerce (Commerce), Housing and Urban Development (HUD), Agriculture (USDA), and the Small Business Administration (SBA). This work examined (1) the potential for overlap in the design of the programs, (2) the extent to which the four agencies collaborate to achieve common goals, and (3) the extent to which the agencies have developed measures to determine the programs' effectiveness. According to the agencies, funding …

Testimony issued by the Government Accountability Office with an abstract that begins "The F-35 Lightning II, also known as the Joint Strike Fighter (JSF), is the Department of Defense's (DOD) most costly and ambitious aircraft acquisition, seeking to simultaneously develop and field three aircraft variants for the Air Force, Navy, Marine Corps, and eight international partners. The JSF is critical for recapitalizing tactical air forces and will require a long-term commitment to very large annual funding outlays. The estimated total investment cost is currently about $385 billion to develop and procure 2,457 aircraft. Because of a history of relatively poor cost and schedule outcomes, defense leadership over the past 15 months has directed a comprehensive restructuring of the JSF program that is continuing. This testimony draws substantially from our extensive body of work on the JSF including our April 2011 report, the latest annual review mandated in the National Defense Authorization Act for Fiscal Year 2010, Pub. L. No. 111-84 244 (2009). This testimony discusses (1) program cost and schedule changes and their implications on affordability; (2) progress made during 2010; (3) design and manufacturing maturity; and (4) test plans and progress. GAO's work included analyses of a wide range …

Correspondence issued by the Government Accountability Office with an abstract that begins "This report documents information that we presented to Congress on March 31, 2011, in response to a congressional request that we examine the extent to which federal funding is used to support public radio. The Corporation for Public Broadcasting (CPB) was established pursuant to the Public Broadcasting Act of 1967 and receives federal payments through the annual appropriations process. CPB distributes the federal payments it receives in accordance with a statutory formula. Under this formula, the majority of each annual federal payment must be distributed to public broadcasting television and radio stations and program producers, such as National Public Radio (NPR), typically in the form of grants. This report addresses the following questions: (1) What are the missions of CPB, NPR, and local public radio stations? (2) What are the processes through which CPB receives federal payments and disburses them to grantees? and (3) What are NPR's sources of revenue, both federal and nonfederal?."

Testimony issued by the Government Accountability Office with an abstract that begins "The United States Postal Service (USPS) is in financial crisis. It also has the world's largest civilian fleet, with many of its delivery vehicles reaching the end of their expected 24- year operational lives. USPS is subject to certain legislative requirements governing the federal fleet, including a requirement that 75 percent of USPS's vehicle acquisitions be capable of operating on an alternative fuel other than gasoline. This testimony addresses (1) USPS's financial condition; (2) USPS's delivery fleet profile, including how USPS has responded to alternative fuel vehicle requirements and its experiences with these vehicles; (3) trade-offs of USPS's approach for addressing its delivery fleet needs; and (4) options to fund a major acquisition of delivery vehicles. This testimony is primarily based on GAO-11-386, which is being released today. For that report, GAO analyzed USPS data, visited USPS facilities, and interviewed USPS and other officials. GAO recommended in that report that USPS should develop a strategy for addressing its delivery fleet needs that considers the effects of likely operational changes, legislative fleet requirements, and other factors. USPS agreed with the recommendation. For this testimony, GAO also drew upon past …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses the challenges facing the Federal Recovery Coordination Program (FRCP)--a program that was jointly developed by the Departments of Defense (DOD) and Veterans Affairs (VA) following critical media reports of deficiencies in the provision of outpatient services at Walter Reed Army Medical Center. This program was established to assist "severely wounded, ill, and injured" Operation Enduring Freedom (OEF) and Operation Iraqi Freedom (OIF) servicemembers, veterans, and their families with access to care, services, and benefits. Specifically, the program's population was to include individuals who had suffered traumatic brain injuries, amputations, burns, spinal cord injuries, visual impairment, and post-traumatic stress disorder. From January 2008--when FRCP enrollment began--to May 2011, the FRCP has provided services to a total of 1,665 servicemembers and veterans; of these, 734 are currently active enrollees. As the first care coordination program developed collaboratively by DOD and VA, the FRCP is more comprehensive in scope than clinical or nonclinical case management programs. It uses Federal Recovery Coordinators (FRC) who are either senior-level registered nurses or licensed social workers to monitor and coordinate both the clinical and nonclinical services needed by program enrollees by serving …

Testimony issued by the Government Accountability Office with an abstract that begins "This testimony discusses issues related to possible changes to the Federal Employees' Compensation Act (FECA) program, a topic that we have reported on in the past. At the end of chargeback year 2010, the FECA program, administered by the Department of Labor (Labor) paid more than $1.88 billion in wage-loss compensation, impairment, and death benefits, and another $898.1 million for medical and rehabilitation services and supplies. Currently, FECA benefits are paid to federal employees who are unable to work because of injuries sustained while performing their federal duties, including those who are at or older than retirement age. Concerns have been raised that federal employees on FECA receive benefits that could be more generous than under the traditional federal retirement system and that the program may have unintended incentives for beneficiaries to remain on the FECA program beyond the traditional retirement age. Over the past 30 years, there have been various proposals to change the FECA program to address this concern. Recent policy proposals to change the way FECA is administered for older beneficiaries share characteristics with past proposals we have discussed in prior work. In August 1996, …