GAO Reports Advanced Radiation Detection Portal Monitors are Likely to Exceed DHS Cost Estimates
The Government Accountability Office has issued a report to Congressional requesters entitled "Combating Nuclear Smuggling: DHS' Program to Procure and Deploy Advanced Radiation Detection Portal Monitors Is Likely to Exceed the Department's Previous Cost Estimates."
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(The Domestic Nuclear Detection Office (DNDO) is responsible for the development, testing, acquisition, and deployment of a system to detect radiation at U.S. ports of entry under the Security and Accountability for Every (SAFE) Port Act. GAO states that an important component of this system is the deployment of radiation portal monitors, large stationary detectors through which cargo containers and trucks pass as they enter the U.S.)
GAO Estimates 10 Year Cost of $2.6-3.8 Billion for DNDO Program
GAO's independent cost estimate suggests that from 2007 through 2017 the total cost of DNDO's program to equip U.S. ports of entry with radiation detection equipment will likely be about $3.1 billion, but could range from $2.6 billion to $3.8 billion. GAO based its estimate on the anticipated costs of DNDO implementing its 2006 project execution plan, the most recent official documentation of the program.
(According to this plan, DNDO will buy and deploy multiple types of advanced spectroscopic portals (ASPs), including those designed to screen rail cars, and airport and seaport cargo, as well as mobile ASPs (spectroscopic equipment mounted on vehicles) to provide greater flexibility in screening commerce. The project execution plan also targets several types of polyvinyl toluene monitors (PVTs) for purchase and deployment. )
DNDO's $2.1 Billion Cost Estimate is Unreliable
GAO states that DNDO's cost estimate of $2.1 billion to equip U.S. ports of entry with radiation detection equipment is unreliable because it omits major project costs and relies on a flawed methodology. For example, although the normal life expectancy of the standard cargo ASP is about 10 years, DNDO's estimate considers only 8 years (fiscal years 2006-2013). According to DNDO officials, the Office of Management and Budget's budget submission software allows only a limited number of years of costs to be included. Furthermore, DNDO's cost estimate does not include all of the elements of the ASPs' life cycle, as it omits estimates for maintenance and operational sustainment of ASPs.
Finally, GAO states that contrary to OMB and DHS guidelines, DNDO did not provide detailed documentation of ASP costs, which raises questions about the adequacy and reliability of the agency's estimates.
GAO report (GAO-08-1108R, dated 09/22/08) available at http://www.gao.gov/new.items/d081108r.pdf