Testimony issued by the General Accounting Office with an abstract that begins "The results of the Defense Department (DOD) financial audit for fiscal year 2000 highlight long-standing financial management weaknesses that continue to plague the military. These weaknesses not only hamper the department's ability to produce timely and accurate financial management information but also unnecessarily increase the cost of carrying out its missions. Although DOD has made incremental improvement, it has a long way to go to overcome its long-standing, serious financial management weaknesses as part of a comprehensive, integrated reform of the department's business support operations. Such an overhaul must include not only DOD's financial management and other management challenges but also its high-risk areas of information technology and human capital management. Personnel throughout the department must share the common goal of reforming the department's business support structure. Without reengineering, DOD will have little chance of radically improving its cumbersome and bureaucratic processes."

Testimony issued by the General Accounting Office with an abstract that begins "The Army's decision to issue black berets to all of its forces in just eight months placed enormous demands on the military's procurement system. To meet this challenge, the Department of Defense (DOD) increased the domestic supplier's production, awarded contracts to known foreign sources, and procured berets from additional sources. This testimony discusses DOD's contracting strategy, including (1) the contracting procedures DOD used to buy the berets and (2) the circumstances surrounding waivers to the Berry Amendment, a statutory requirement to buy clothing from domestic suppliers. The Defense Logistics Agency (DLA) took several steps to expedite award of the contracts. However, DLA failed to (1) provide for full and open competition as required by the Competition in Contracting Act of 1984 or (2) obtain a review of these contract actions from the Small and Disadvantaged Business Utilization Office for possible small business participation. GAO also found that authority to waive the Berry Amendment was delegated to DLA's Director and Senior Procurement Executive by the Principal Deputy Under Secretary of Defense (Acquisition, Technology, and Logistics), but later canceled to ensure that any request for a waiver to the Berry …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses (1) how well the Internal Revenue Service (IRS) is providing service to taxpayers and ensuring compliance with tax laws, and (2) IRS' progress in its long-term effort to modernize. GAO found that IRS posted mixed results in 2001 in collecting revenues, providing taxpayer service, and enforcing tax laws. On the plus side, IRS processed millions of tax returns and issued refunds without significant problems, taxpayers had an easier time getting through to telephone assistors, and IRS said that it made progress in correcting weaknesses that threatened the security of electronically filed tax information. On the down side, the quality of service provided to taxpayers who visited taxpayer assistance centers, trends in audit rates and enforcement programs, and productivity all experienced troubling declines. With respect to modernization, IRS is making incremental progress in overhauling its organization, performance management system, business processes, and information technology. IRS is also making important progress in implementing its new organizational structure, developing a blueprint for modernizing its business processes and information systems, and more fully defining its strategic direction. However, IRS progress has fallen short of expectations. For example, IRS is …

Testimony issued by the General Accounting Office with an abstract that begins "The Heavily Indebted Poor Countries (HIPC) Initiative and the International Monetary Fund's concessional (below-market terms) lending facility--the Poverty Reduction and Growth Facility--are two multilateral programs intended to help spur economic growth and reduce poverty in low-income countries, most notably countries in sub-Saharan Africa. The HIPC Initiative represents a step forward in the international community's efforts to relieve poor countries of their heavy debt burdens. It does so by seeking to include all creditors and by providing significant debt relief to recipient countries. Unless strong, sustained economic growth is achieved, however the initiative will not likely provide recipient countries with a lasting exit from their debt problems. Furthermore, as long as the initiative links debt relief to poverty reduction strategies, the tension between quick debt relief and comprehensive country-owned strategies is likely to persist. These issues should not be seen, however, as a reason to abandon efforts to provide debt relief to eligible countries. Heavily indebted poor countries continue to carry unsustainable debt burdens that are unlikely to be lessened without debt relief, but participants and observers need to be more realistic about what the initiative may ultimately achieve. …

Testimony issued by the General Accounting Office with an abstract that begins "Federal agencies spend billions of tax dollars each year to buy services--from clerical support to information technology assistance to the management of national laboratories. The federal government spent more than $87 billion in services--a 24 percent increase in real terms from fiscal year 1990. Some service procurements are not being done efficiently, putting taxpayer dollars at risk. In particular, agencies are not clearly defining their requirements, fully considering alternative solutions, performing vigorous price analyses, and adequately overseeing contractor performance. This testimony (1) describes service contracting trends and the changing acquisition environment, (2) discusses the challenges confronting the government in acquiring services, and (3) highlights some efforts underway to address these challenges. GAO found that purchases of services now account for about 43 percent of federal contracting expenses--the largest single spending category. The growth of services has been driven largely by the government's increased purchases of information technology services and professional, administrative, and management support services. Poor contract management has undermined the government's ability to obtain good value for the money and continues to be a major problem for the two biggest service purchasers-the Departments of Defense and Energy. …

Testimony issued by the General Accounting Office with an abstract that begins "To ensure that people claiming disability insurance program benefits can obtain legal representation at a fair price, the Social Security Administration (SSA) is required to regulate the fees that attorneys charge people to represent their disability claims before the agency. Balancing the needs of the claimants with those of their attorneys, the law limits the amount of fees that attorneys can charge claimants, but also guarantees that those fees will be paid from the claimants' past-due benefits. Inefficiencies in the current process increase both the time it takes to pay the attorney fees and the cost of administration. One segment of attorney fee processing--the fee approval process--was substantially simplified in 1991. Systems support could streamline the second segment of the processing--the fee payment--thus lowering the annual administrative costs and cutting processing time. Automation of this final segment of the fee process could help improve customer service for both claimants and their attorneys."

Testimony issued by the General Accounting Office with an abstract that begins "The U.S. Postal Service (USPS) faces major challenges that collectively call for a structural transformation if it is to remain viable in the 21st century. This testimony discusses USPS' current financial outlook, actions that USPS has taken or planned to take, and the transformation issues that will need to be addressed. GAO concludes that structural transformation is essential if USPS is to overcome its financial, operational, and human capital challenges. It is at a growing risk of being unable to continue providing universal postal service at reasonable rates while remaining self-supporting through postal revenues. Although USPS has announced steps to address its mounting problems, it lacks a comprehensive plan to address its various financial, operational, or human capital challenges. USPS needs to develop a transformation plan in conjunction with Congress and other stakeholders that would address the key transformation issues facing USPS."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses lessons learned from the Department of Defense's (DOD) TRICARE contracts and their implications for the future. TRICARE's successes and maturity reflect the ability of the DOD and its contractors to work within the current contract structure. However, it has not been easy, and there are important lessons from current contract shortcomings that need to be addressed in designing future TRICARE contracts. Most, including DOD, believe that the current contracts are too large, complex, and prescriptive in nature, limiting innovation and competition. Also, numerous adjustments to these contracts have created an unstable program, and program costs have been difficult to predict, contributing to annual funding shortfalls. Additionally, financial incentives, accountability, and data quality need to be strengthened to achieve greater efficiencies. To address these weaknesses, DOD redesigned its solicitation for the next round of TRICARE contracts; however, the initial issuance was withdrawn because of internal concerns and reservations about its costs and specifications. DOD is now reassessing how to structure the TRICARE contracts and is considering the views and recommendations of the Defense Medical Oversight Committee, a group formed to oversee TRICARE."

Testimony issued by the General Accounting Office with an abstract that begins "Every criminal justice system faces coordination challenges. However, the unique structure and funding of the D.C. criminal justice system, in which federal and D.C. jurisdictional boundaries and dollars are blended, creates additional challenges. The Criminal Justice Coordinating Council (CJCC) has played a useful role in addressing such coordination challenges, especially in areas in which agencies perceived a common interest. However, CJCC's uncertain future could leave D.C. without benefit of an independent entity for coordinating the activities of its unique criminal justice system. Funding CJCC through any participating agency diminishes its stature as an independent entity in the eyes of several CJCC member agencies, reducing their willingness to participate. Without a requirement to report successes and areas of continuing discussion and disagreement to each agency's funding source, CJCC's activities, achievements, and areas of disagreement have generally been known only to its participating agencies. This has created little incentive to coordinate for the common good, and all too often agencies have simply "agreed to disagree" without taking action. Furthermore, without a meaningful role in cataloging multiagency initiatives, CJCC has been unable to ensure that criminal justice initiatives are coordinated among …

Testimony issued by the General Accounting Office with an abstract that begins "Children fall ill with many of the same diseases as adults and are often treated with the same drugs. However, only about 25 percent of drugs used today have been labeled for pediatric patients. The lack of pediatric testing and labeling can place children at risk of under- or overdosing, and the lack of age-appropriate formulations, such as liquids or chewable tablets, can result in improper administration of drugs. The pediatric exclusivity provision of the Food and Drug Administration Modernization Act of 1997 has successfully encouraged drug sponsors to generate needed information on how drugs work in children. A wide range of drugs are being studied in many therapeutic areas. The infrastructure for conducting pediatric trials has also been greatly strengthened, which should help to support continued progress. Although several drug labels have been changed to incorporate findings from research done under the pediatric exclusivity provision, label changes typically occur long after the Food and Drug Administration has granted the extension of market exclusivity. In addition, there continues to be little incentive to conduct pediatric research on off-patent drugs."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the recruitment and the retention of nursing staff, including both nurses and nurses aides, and concerns about the future supply of these workers. The health and long-term care systems in the United States rely heavily on the services of both nurses and nurses aides, the two largest groups of health care workers. GAO found that the recruitment and the retention of both nurses and nurses aides are major concerns for health care providers. Experts and providers have reported a shortage of nurses, partly as a result of patients' increasingly complex care needs. This shortage is expected to become more serious as the population ages and the demand for nurses increases. Several factors combine to constrain the current and future supply of nurses. Like the population in general, the nurse workforce is aging; the average age of a registered nurse rose from 37 years in 1983 to 42 years in 1998. Enrollments in nursing programs have declined during the last five years, shrinking the pool of new workers available to replace those who are retiring. Many studies also report less job satisfaction among nurses, which could …

Testimony issued by the General Accounting Office with an abstract that begins "All the military services extensively use cannibalization--the removal of a working component from one aircraft to install it on another--as a routine aircraft maintenance strategy. However, neither the Department of Defense nor the services know the overall magnitude of this practice. Cannibalizations increase maintenance costs by increasing workloads, may affect morale and the retention of personnel, and sometimes result in the unavailability of expensive aircraft for long periods of time. Cannibalizations also can create unnecessary mechanical problems for maintenance personnel. With the exception of the Navy, the services do not consistently track the specific reasons for cannibalizations. In the broadest sense, cannibalizations are done because of pressures to meet readiness and operational needs and the shortcomings of the supply system. In addition, a Navy study found that cannibalizations are sometimes done because mechanics are not trained well enough to diagnose problems or because testing equipment is either not available or not working. Although the services have undertaken some initiatives to reduce cannibalizations, none of them have developed a specific strategy to reduce the maintenance hours associated with cannibalizations. Because they view cannibalization as a symptom of spare parts …

Testimony issued by the General Accounting Office with an abstract that begins "Concerns have been growing about the air quality, visibility, and respiratory illnesses around the Great Smoky Mountains National Park, which straddles the border between North Carolina and Tennessee. This testimony analyzes recent trends in and contributing factors to (1) visibility impairments, (2) ground-level ozone, and (3) respiratory illnesses. This testimony also examines the Tennessee Valley Authority's (TVA) plans to reduce its emission of regulated pollutants. Visibility impairments and ozone are largely attributable to the following three types of emissions: sulfur dioxide, nitrogen oxides, and volatile organic compounds. The counties that border the park generally have slightly higher mortality rates from two types of respiratory illness. The three types of emissions interact in the atmosphere to form ozone gas and sulfate particles, which are linked to respiratory illnesses. In response to federal laws and other factors, TVA is making substantial environment-related investments and expects to reduce its annual emissions of sulfur dioxide by 36 percent and its "ozone-season" emissions of nitrogen oxides by 68 percent between 1999 and 2005. This testimony summarizes a May report, (GAO-01-658)."

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the challenges facing the Nuclear Regulatory Commission (NRC) as it moves from its traditional regulatory approach to a risk-informed, performance-based approach. GAO found that NRC's implementation of a risk-informed approach for commercial nuclear power plants is a complex, multiyear undertaking that requires basic changes to the regulations and processes NRC uses to ensure the safe operation of these plants. NRC needs to overcome several inherent difficulties as it seeks to apply a risk-informed regulatory approach to the nuclear material licensees, particularly in light of the large number of licensees and the diversity of activities they conduct. NRC will have to demonstrate that it is meeting its mandate (under the Government Performance and Results Act) of increasing public confidence in NRC as an effective regulator. NRC also faces challenges in human capital management, such as replacing a large percentage of its technical staff and senior managers who are eligible to retire. NRC has developed a five-year plan to identify and maintain the core competencies it needs and has identified legislative options to help resolve its aging staff problem."

Testimony issued by the General Accounting Office with an abstract that begins "The extent and quality of federal voter assistance for military personnel and overseas citizens varied considerably during the November 2000 election. The Department of Defense (DOD) has developed some useful information tools, but many overseas military personnel were unaware of them. Moreover, the military services did not always comply with DOD requirements to appoint and train Voting Assistance Officers, brief military personnel on how to go about voting, or maintain enough supplies of voting materials. Lack of emphasis by commanders and limited oversight by service Inspectors General and installation commanders appear to be the chief reasons why some military installations did not fully comply with DOD guidance on how voting assistance programs should be carried out. Many states have worked with DOD's Federal Voting Assistance Program to make it easier for military personnel and overseas citizens to register, obtain ballots, and vote; however, voters continue to face challenges. Information on the precise number of military and overseas absentee votes that local jurisdictions disqualified nationwide in the November 2000 election and the reasons for the disqualification is not available. Many local officials said that they did not track data …

Testimony issued by the General Accounting Office with an abstract that begins "The Coast Guard is in the final stages of planning the largest procurement project in its history--the Deepwater Capability Replacement Project. This project will likely cost over $10 billion or more and take 20 years or more to complete. The Coast Guard has already spent about $116 million on the project's design and is asking for $338 million this year to begin the acquisition phase. This testimony discusses the major risks associated with the project. GAO found four major areas in which the project is vulnerable. They are (1) planning the project around annual funding levels far above what the administration has told the Coast Guard it can expect to receive, (2) keeping costs under control in the contract's later years, (3) ensuring that procedures and personnel are in place for managing and overseeing the contractor once the contract is awarded, and (4) minimizing potential problems with developing unproven technology. GAO also identified the following key areas that will need to be addressed. The Coast Guard needs (1) effective human capital practices, (2) a systems integrator to establish a management organization and systems necessary to manage the major …

Testimony issued by the General Accounting Office with an abstract that begins "Federal employees who report waste, fraud, and abuse shouldn't have to fear discrimination and retaliation. Despite laws designed to protect whistleblowers, some have experienced or believed that they have experienced reprisals. Proposed legislation--the Notification and Federal Employee Antidiscrimination and Retaliation Act of 2001--would provide additional protections for federal employees and would provide important data to decisionmakers. First, the act would require agencies to report the number of discrimination and whistleblower reprisal cases. Because of a lack of data, the federal government currently doesn't have a clear picture of the volume of discrimination and whistleblowing reprisal cases involving federal employees. Such data could be a starting point for agency managers to understand the nature and scope of issues in the workplace involving reprisals and discrimination. Second, the act would make agencies and their leaders accountable for providing fair and equitable workplaces. In addition, individuals would be held accountable for their actions in cases in which discrimination has occurred. Finally, the act would require agencies to notify employees in writing of their rights and protections. This provision reinforces existing requirements that employees be notified of the rights and remedies concerning …

Testimony issued by the General Accounting Office with an abstract that begins "Fish populations in many commercial fisheries are declining, causing a growing imbalance between the number of vessels in fishing fleets and the number of fish available to catch. Federally funded fishery buyback programs are one tool available for managers to bring the number of vessels and the number of fish back into balance. Buyback programs need to be carefully designed if they are to sucessfully sustain fisheries. If buyback programs are not accompanied by other measures that reduce incentives to reenter a fishery, capacity reductions resulting from buybacks will erode. Unless a buyback program prevents it, fishermen can use previously inactive vessels or permits and reenter the buyback fishery. By themselves, the buyback programs do not address a root cause of overfishing, which is called the "race to fish." In most fisheries, fishermen have an incentive to increase their fishing capacity to catch fish before someone else does or use their existing capacity more intensely. Plans for evaluating the results of buybacks should also be considered when these programs are being designed. Measuring and evaluating results can identify important lessons that can improve the effectiveness of future buybacks. …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the U.S. government's rule of law assistance efforts in the new independent states of the former Soviet Union. GAO found that these efforts have had limited impact so far, and results may not be sustainable in many cases. U.S. agencies have had some success in introducing innovative legal concepts and practices in these countries. However, the U.S. assistance has not often had a major, long-term impact on the evolution of the rule of law in these countries. In some cases, countries have not widely adopted the new concepts and practices that the United States has advocated. In other cases, continuation or expansion of the innovations depends on further funding from the U.S. or other donors. In fact, the rule of law appears to have actually deteriorated in recent years in several countries, including Russia and Ukraine, according to the data used to measure the results of U.S. development assistance in the region and a host of U.S. government and foreign officials. This testimony summarizes an April 2001 report (GAO-01-354)."

Testimony issued by the General Accounting Office with an abstract that begins "The Free Trade of the Americas Agreement (FTAA) would eliminate tariffs and create common trade and investment rules within the 34 democratic nations of the Western Hemisphere. The trade ministers for FTAA faced an ambitious agenda at the April 2001 meetings. Accommodations reached by the ministers on controversial issues, such as labor and the environment, antidumping, and nations with small economies, allowed countries to set forth basic principles while keeping topics on the table for future resolution. As a result of the movement on these controversial issues, the trade ministers were able to set out clear objectives and deadlines to promote progress during the next 18 months of the negotiations. The trade ministers told negotiating groups to (1) eliminate material that is in dispute to the maximum extent possible; (2) develop recommendations by April 1, 2002, on the methods and ground rules for negotiation; and (3) develop, where appropriate, inventories of tariffs, nontariff barriers, subsidies, and other practices that distort trade. To build public support for the FTAA process, and to promote transparency in the negotiating process, the trade ministers agreed to publicly release the draft text of …

Testimony issued by the General Accounting Office with an abstract that begins "To better protect the nation's critical computer-dependent infrastructures from computer-based attacks and disruption, the President issued a directive in 1998 that established the National Infrastructure Protection Center as a national focal point for gathering information on threats and facilitating the federal government's response to computer-based incidents. This testimony discusses the center's progress in (1) developing national capabilities for analyzing cyber threat and vulnerability data and issuing warnings, (2) enhancing its capabilities for responding to cyber attacks, and (3) developing outreach and information-sharing initiatives with government and private-sector entities. GAO found that although the center has taken some steps to develop analysis and warning capabilities, the strategic capabilities described in the presidential directive have not been achieved. By coordinating investigations and providing technical assistance the center has provided important support that has improved the Federal Bureau of Investigations' ability to investigate computer crimes. The center has also developed crisis management procedures and drafted an emergency law enforcement sector plan, which is now being reviewed by sector members. The center's information-sharing relationships are still evolving and will probably have limited effectiveness until reporting procedures and thresholds are defined and trust …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the Federal Aviation Administration's (FAA) efforts to modernize the nation's air traffic control (ATC) system and its relationship to other initiatives to address the escalating crises of insufficient capacity facing the aviation industry. Specifically, GAO reviews the (1) extent of the delay and congestion problems and the contribution of the ATC system to them, (2) progress and problems encountered in FAA's ATC modernization program, and (3) importance of a continued focus on delivering ATC equipment and on human capital issues as policymakers seek to address delays and congestion. GAO found that the national airspace system (NAS) is facing significant capacity problems. Last year, more than 25 percent of nationwide flights were canceled, delayed or diverted. These actions affected 163 million passengers who, on average, were delayed almost an hour. Inefficiencies in the ATC system contribute to the delays and congestion. Modernizing equipment, along with other changes in the ATC system, is expected to help increase the capacity of NAS between 5 and 15 percent. However, improvements from FAA's modernization program have fallen short so far. Although FAA has installed new equipment to provide the necessary …

Testimony issued by the General Accounting Office with an abstract that begins "This testimony discusses the Preparedness Against Domestic Terrorism Act of 2001 (H.R. 525). To improve federal efforts to help state and local personnel prepare for domestic terrorist attacks, H.R. 525 would create a single focal point for policy and coordination--the President's Council on Domestic Terrorism Preparedness--within the White House. The new council would include the President, several cabinet secretaries, and other selected high-level officials. H.R. 525 would (1) create an executive director position with a staff that would collaborate with other executive agencies to assess threats, (2) require the new council to develop a national strategy, (3) require the new council to analyze and review budgets, and (4) require the new council to oversee implementation among the different federal agencies. Other proposals before Congress would also create a single focal point for terrorism. Some of these proposals place the focal point in the Executive Office of the President and others place it in a lead executive agency. Both locations have advantages and disadvantages."

Testimony issued by the General Accounting Office with an abstract that begins "Until the 2001 flu season, the production and distribution of influenza vaccine generally went smoothly. Last year, however, several people reported that they wanted but could not get flu shots. In addition, physicians and public health departments could not provide shots to high-risk patients in their medical offices and clinics because they had not received vaccine they ordered many months in advance, or because they were being asked to pay much higher prices for vaccine in order to get it right away. At the same time, there were reports that providers in other locations, even grocery stores and restaurants, were offering flu shots to everyone--including younger, healthier people who were not at high risk. This testimony discusses the delays in production, distribution, and pricing of the 2000-2001 flu vaccine. GAO found that manufacturing difficulties during the 2000-2001 flu season resulted in an overall delay of about six to eight weeks in shipping vaccine to most customers. This delay created an initial shortage and temporary price spikes. There is no system in place to ensure that high-risk people have priority for receiving flu shots when supply is short. Because …