Military Operations
Actions Needed to Better Guide Project Selection for Commander's Emergency Response Program and Improve Oversight in Iraq Gao ID: GAO-08-736R June 23, 2008Since fiscal year 2003, Congress has appropriated more than $46 billion dollars for relief and reconstruction efforts in Iraq. The Department of Defense (DOD) is one of several U.S. agencies that administer U.S.-funded relief and reconstruction programs in Iraq. In particular, DOD manages the Commander's Emergency Response Program (CERP), which is designed to enable local commanders in Iraq and Afghanistan to respond to urgent humanitarian relief and reconstruction requirements within their areas of responsibility by carrying out programs that will immediately assist the indigenous population. Thus far, Congress has appropriated more than $3 billion for CERP in Iraq and Afghanistan. Since the program's inception, DOD has steadily increased its funding requests in response to theater conditions, and reported obligations have also grown substantially. DOD's funding requests have increased by more than a billion dollars from fiscal years 2004 through 2008. For fiscal year 2008, DOD requested $1.2 billion to fund CERP projects in Iraq and Afghanistan and plans to request an additional $507 million, primarily for CERP in Iraq. Furthermore, DOD's reported obligations for Iraq and Afghanistan have grown from about $179 million in fiscal year 2004 to more than $1.1 billion in fiscal year 2007. In addition, over the same period of time, the number of projects in both countries has grown from about 6,450 to about 8,700. According to DOD regulations, CERP is intended for small-scale, urgent humanitarian relief and reconstruction projects for the benefit of Iraqi people. The guidance issued by the Undersecretary of Defense (Comptroller) establishes 19 authorized uses for CERP funds, including transportation, electricity, and condolence payments. CERP funds can be used for both construction and non-construction projects. In Iraq, commanders follow Multinational Corps-Iraq (MNC-I) standard operating procedures for CERP, which expand upon DOD regulations. MNC-I guidance states that the keys to project selection are to (1) execute quickly, (2) employ many Iraqis, (3) benefit the Iraqi people, and (4) be highly visible. DOD regulations identify the roles and responsibilities that different offices play in managing CERP. The Secretary of the Army serves as the executive agent and is responsible for ensuring that commanders carry out CERP in a manner that is consistent with applicable laws, regulations and guidance. The Commander of U.S. Central Command (CENTCOM) is responsible for allocating CERP resources. Public Law No. 108-106 and subsequent laws require DOD to provide Congress with quarterly reports on the source, allocation, and use of CERP funds. The reports are compiled based on information about the projects that was entered by unit officials into the Iraq Reconstruction Management System, a database that tracks projects' status and maintains a historical record of all reconstruction activity in Iraq, including those projects funded by CERP. Because of significant congressional interest, we conducted this work under the authority of the Comptroller General to undertake work at his own initiative and examined the following questions regarding the CERP program in Iraq: (1) To what extent does DOD guidance establish selection criteria for CERP projects? (2) To what extent do commanders in Iraq coordinate CERP with other U. S. government agencies and with the government of Iraq? and (3) To what extent do DOD and MNC-I exercise oversight of CERP projects in Iraq?
DOD has established broad selection criteria for CERP projects, which gives significant discretion to commanders in determining the types of projects to undertake. CERP is intended to provide commanders a source of funds that allow them to respond to urgent, small-scale humanitarian relief and reconstruction needs that will immediately assist the local Iraqi population. However, DOD guidance provides no definition for small-scale or urgent, which leaves commanders with the responsibility of developing their own definitions. Commanders we interviewed had varying definitions for small-scale. Our review of the quarterly reports to Congress demonstrated the wide spectrum in size and costs of projects. For instance, projects ranged from a waterline repair costing slightly more than $100 to an electrical distribution system costing more than $11 million. In addition, during our visit to Iraq, we observed three projects: a multimillion-dollar sewage lift station, a several hundred thousand dollar sports center and community complex, and a fruit and vegetable stand that had been renovated with a $2,500 grant. Commanders typically defined urgent as restoring a basic human need, such as water and electricity, or projects identified by the local Iraqi government as its most pressing requirement for the area. As a result, the scale, complexity, and duration of projects selected vary across commands. While the majority of CERP projects have cost less than $500,000, the number of projects costing more than $500,000 has increased significantly. According to DOD officials, factors contributing to the increasing number of CERP projects costing more than $500,000 include the lack of other available reconstruction money, improved security in the region and the fact that many of the immediate needs of the Iraq people were addressed during the initial phases of CERP. Commanders reported that they generally coordinated projects with the appropriate U.S. and Iraqi officials, as required by guidance. The officials include Iraqi government personnel as well as military and nonmilitary U.S. officials. MNC-I guidance further states that coordination with local officials is critical to ensure that a project meets a need and will be maintained and that numerous projects have been built that did not meet their intended purpose because of lack of coordination. MNC-I guidance notes that coordination efforts may include synchronizing CERP projects with complementary programs funded by United States Agency for International Development or other nongovernmental organizations within the commander's area of responsibility. While the MNC-I project approval process provides some oversight, the Offices of the Under Secretary of Defense (Comptroller), the Army and MNC-I have limited oversight of CERP in Iraq because they (1) do not require units executing projects to monitor them, (2) have not established performance metrics, and (3) have limited knowledge of projects under $500,000. Neither DOD nor MNC-I guidance establishes a requirement for units executing projects to monitor them. MNC-I guidance has a broad requirement for the MNC-I engineer to monitor reconstruction projects, but does not include a requirement for units executing projects to monitor them. No performance metrics exist for CERP. As we have previously reported, federal agencies should develop plans that establish objective, quantifiable, and measurable performance goals that should be achieved by a program. Although MNC-I officials have some visibility over projects costing more than $500,000 because they approve these projects, they have limited visibility and oversight for projects costing less than $500,000. The quarterly reports do not provide information about the number of projects completed during a quarter, the number of projects that have been started but not completed, or the number of projects that have not been sustained or maintained by the Iraqi government or the local population.
RecommendationsOur recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.
Director: Team: Phone:GAO-08-736R, Military Operations: Actions Needed to Better Guide Project Selection for Commander's Emergency Response Program and Improve Oversight in Iraq
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June 23, 2008:
Congressional Committees:
Subject: Military Operations: Actions Needed to Better Guide Project
Selection for Commander's Emergency Response Program and Improve
Oversight in Iraq:
Since fiscal year 2003, Congress has appropriated more than $46 billion
dollars for relief and reconstruction efforts in Iraq. The Department
of Defense (DOD) is one of several U.S. agencies that administer U.S.-
funded relief and reconstruction programs in Iraq. In particular, DOD
manages the Commander's Emergency Response Program (CERP), which is
designed to enable local commanders in Iraq and Afghanistan to respond
to urgent humanitarian relief and reconstruction requirements within
their areas of responsibility by carrying out programs that will
immediately assist the indigenous population[Footnote 1]. Thus far,
Congress has appropriated more than $3 billion for CERP in Iraq and
Afghanistan. Since the program's inception, DOD has steadily increased
its funding requests in response to theater conditions, and reported
obligations have also grown substantially. DOD's funding requests have
increased by more than a billion dollars from fiscal years 2004 through
2008. For fiscal year 2008, DOD requested $1.2 billion to fund CERP
projects in Iraq and Afghanistan and plans to request an additional
$507 million, primarily for CERP in Iraq. Furthermore, DOD's reported
obligations for Iraq and Afghanistan have grown from about $179 million
in fiscal year 2004 to more than $1.1 billion in fiscal year 2007. In
addition, over the same period of time, the number of projects in both
countries has grown from about 6,450 to about 8,700. In particular, the
number of projects costing more than $500,000 has increased from 13 in
fiscal year 2004 to 276 in fiscal year 2007 and in fiscal year 2007
accounted for about 46 percent of the reported obligations in Iraq and
Afghanistan.
According to DOD regulations, CERP is intended for small-scale, urgent
humanitarian relief and reconstruction projects for the benefit of
Iraqi people. The guidance issued by the Undersecretary of Defense
(Comptroller) establishes 19 authorized uses for CERP funds, including
transportation, electricity, and condolence payments. In addition, the
regulation identifies 10 unauthorized uses of CERP funds, such as a use
that directly or indirectly benefits U.S., coalition, or other
supporting military personnel.[Footnote 2] CERP funds can be used for
both construction and non-construction projects. In Iraq, commanders
follow Multinational Corps-Iraq (MNC-I) standard operating procedures
for CERP, which expand upon DOD regulations. MNC-I guidance states that
the keys to project selection are to (1) execute quickly, (2) employ
many Iraqis, (3) benefit the Iraqi people, and (4) be highly visible.
In addition, according to MNC-I guidance, projects estimated to cost
more than $500,000 must be approved by the MNC-I commander. Major
subordinate commanders have approval authority for less costly projects
and may further delegate this authority to the brigade level. MNC-I is
the tactical unit responsible for command and control of operations
throughout Iraq. MNC-I officials, including engineers, civil affairs
officers, and finance officers, administer CERP in Iraq. CERP projects
are generally identified and executed at the brigade and battalion
levels in Iraq.
DOD regulations identify the roles and responsibilities that different
offices play in managing CERP. For example, the Under Secretary of
Defense (Comptroller) establishes and supervises the execution of
principles, policies, and procedures to be followed in connection with
CERP. The Secretary of the Army serves as the executive agent and is
responsible for ensuring that commanders carry out CERP in a manner
that is consistent with applicable laws, regulations and guidance. The
Commander of U.S. Central Command (CENTCOM) is responsible for
allocating CERP resources.[Footnote 3]
Public Law No. 108-106 and subsequent laws require DOD to provide
Congress with quarterly reports on the source, allocation, and use of
CERP funds. The reports are compiled based on information about the
projects that was entered by unit officials into the Iraq
Reconstruction Management System, a database that tracks projects'
status and maintains a historical record of all reconstruction activity
in Iraq, including those projects funded by CERP.
Because of significant congressional interest, we conducted this work
under the authority of the Comptroller General to undertake work at his
own initiative and examined the following questions regarding the CERP
program in Iraq: (1) To what extent does DOD guidance establish
selection criteria for CERP projects? (2) To what extent do commanders
in Iraq coordinate CERP with other U. S. government agencies and with
the government of Iraq? and (3) To what extent do DOD and MNC-I
exercise oversight of CERP projects in Iraq?
To address the objectives, we identified and reviewed guidance for
CERP. We interviewed officials from the Offices of the Under Secretary
of Defense (Comptroller) and the Assistant Secretary of the Army
(Financial Management and Comptroller). We traveled to Iraq to speak
with officials at MNC-I and its parent command Multinational Force-Iraq
(MNF-I) and at the brigade and battalion levels. We also interviewed
officials from selected units that returned recently from Iraq about
their experiences implementing, executing, and assessing CERP. In order
to evaluate the extent of coordination activities, we interviewed
officials at the Department of State, the United States Agency for
International Development, and the U.S. Army Corps of Engineers, both
in Washington, D.C. and in Iraq. In addition, we performed a trend
analysis of reported obligations for CERP projects in Iraq and
interviewed officials about information contained in the reports to
Congress. Based on interviews with officials about data contained in
the reports to Congress, we believe that the data is sufficiently
reliable for the purposes of this report. The focus of this report is
the use of CERP in Iraq. We plan to issue a report looking at the
implementation of CERP in Afghanistan at a later date. A more detailed
discussion of our scope and methodology is located in enclosure I. We
conducted this performance audit from May 2007 to April 2008 in
accordance with generally accepted government auditing standards. Those
standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that
the evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objectives.
On May 2, 2008, we briefed congressional staff on our observations.
This report summarizes the information discussed at that briefing. We
are attaching slides from the briefing in enclosure II.
Summary:
DOD has established broad selection criteria for CERP projects, which
gives significant discretion to commanders in determining the types of
projects to undertake. CERP is intended to provide commanders a source
of funds that allow them to respond to urgent, small-scale humanitarian
relief and reconstruction needs that will immediately assist the local
Iraqi population. However, DOD guidance provides no definition for
small-scale or urgent, which leaves commanders with the responsibility
of developing their own definitions. Commanders we interviewed had
varying definitions for small-scale. For example, one commander told us
that he would not execute projects that cost more than $200,000,
whereas another commander told us that he executed projects that cost
more than $1 million. Another commander focused on projects that cost
from $20,000 to $100,000 that would immediately provide drinking water
to the local population, while other CERP-financed water projects have
cost more than $5 million. Yet another commander chose to execute
projects that would be completed while his unit was deployed.
Furthermore, our review of the quarterly reports to Congress
demonstrated the wide spectrum in size and costs of projects. For
instance, projects ranged from a waterline repair costing slightly more
than $100 to an electrical distribution system costing more than $11
million. In addition, during our visit to Iraq, we observed three
projects: a multimillion-dollar sewage lift station, a several hundred
thousand dollar sports center and community complex, and a fruit and
vegetable stand that had been renovated with a $2,500 grant. Commanders
typically defined urgent as restoring a basic human need, such as water
and electricity, or projects identified by the local Iraqi government
as its most pressing requirement for the area. As a result, the scale,
complexity, and duration of projects selected vary across commands.
While the majority of CERP projects have cost less than $500,000, the
number of projects costing more than $500,000 has increased
significantly. Some of these projects cost millions of dollars and are
estimated to take more than 1 year to complete (see table 1). According
to DOD officials, factors contributing to the increasing number of CERP
projects costing more than $500,000 include the lack of other available
reconstruction money, improved security in the region and the fact that
many of the immediate needs of the Iraq people were addressed during
the initial phases of CERP.
Table 1: Trends in CERP Projects in Iraq:
Number of projects [A];
4,101;
FY 2005: 7,266;
FY 2006: 3,811;
FY 2007: 6,915.
Number of projects costing $500,000 or more;
FY 2004: 10;
FY 2005: 181;
FY 2006: 151;
FY 2007: 228.
Reported funds obligated (in millions);
FY 2004: $139.3;
FY 2005: $716.4;
FY 2006: $509.7[B];
FY 2007: $897.9[B].
Source: GAO analysis of DOD data.
[A] This number includes projects that are not reconstruction but
involve cash payouts, such as condolence, battle damage, detainee, and
grant payments.
[B] According To DOD Officials, Additional Projects Valued At $400,000
In Fiscal Year 2006 And $16.7 Million in fiscal year 2007 were reported
in the Army's financial management system but were not captured in the
Iraq Reconstruction Management System due to units being in remote
locations and not having access to the database. As a result, these
projects and their costs were not included in the detailed quarterly
reports but were included in the summary report to Congress.
[End of table]
DOD officials told us that they are satisfied with the broad CERP
guidance and that any modification, specifically defining small-scale
and urgent, might affect the program's flexibility, which is a large
part of what makes it such an attractive tool for commanders to use.
However, without a clearer definition of small-scale and urgent,
commanders are developing a wide range of interpretations such that it
is difficult to determine whether the projects being selected by the
commanders in fact are consistent with DOD's intent for the program.
Commanders reported that they generally coordinated projects with the
appropriate U.S. and Iraqi officials, as required by guidance. MNC-I
guidance requires commanders to coordinate CERP projects with various
elements, including the local Iraqi government agencies, civil affairs
elements, and Provincial Reconstruction Teams (PRT).[Footnote 4] The
officials include Iraqi government personnel as well as military and
nonmilitary U.S. officials. MNC-I guidance further states that
coordination with local officials is critical to ensure that a project
meets a need and will be maintained and that numerous projects have
been built that did not meet their intended purpose because of lack of
coordination. Unit officials we interviewed said that they coordinated
projects through the appropriate PRT or embedded PRT element, and also
coordinated with the appropriate Iraqi government officials before
beginning the construction of a project. For instance, commanders told
us that they met with the local leader, such as the local sheik or
mayor, to learn of the types of projects needed in the area and to gain
buy-in for the sustainment of projects. Many commanders told us that
they had a good working relationship with the PRT or the embedded PRT
and believed that personality played a role in the effectiveness of the
relationship between commanders and the PRT or embedded PRT.
Furthermore, Army officials told us that they coordinated with
representatives from the national ministries on projects costing more
than $500,000. For example, a CERP-funded hospital would be coordinated
with the Ministry of Health. MNC-I guidance does not require commanders
to coordinate with Department of State or United States Agency for
International Development officials who are not part of the PRT or
embedded PRT. However, MNC-I guidance notes that coordination efforts
may include synchronizing CERP projects with complementary programs
funded by United States Agency for International Development or other
nongovernmental organizations within the commander's area of
responsibility. Military, Department of State, and United States Agency
for International Development officials we interviewed in Iraq said
that the presence of the PRTs and embedded PRTs had improved
coordination between programs funded by these agencies and they were
generally satisfied with the coordination that was taking place.
Commanders also stated that they only coordinated with the U.S. Army
Corps of Engineers on CERP projects that were very costly or very
complex.
While the MNC-I project approval process provides some oversight, the
Offices of the Under Secretary of Defense (Comptroller) , the Army and
MNC-I have limited oversight of CERP in Iraq because they (1) do not
require units executing projects to monitor them, (2) have not
established performance metrics, and (3) have limited knowledge of
projects under $500,000. The Office of the Under Secretary of Defense
(Comptroller) limits its oversight to developing CERP guidance,
reviewing the CERP quarterly reports, and submitting the CERP budget
request to Congress. The Office of the Assistant Secretary of the Army
(Financial Management and Comptroller) reviews both the quarterly
report submitted to Congress and the CERP budget request before it is
submitted to Congress. According to officials from the Offices of the
Under Secretary of Defense (Comptroller) and Assistant Secretary of the
Army (Financial Management and Comptroller), CERP is a commanders'
program that should retain maximum flexibility and therefore limit
their oversight of CERP although they noted that both offices have
access to the Iraq Reconstruction Management System database. MNC-I
develops implementing guidance for CERP in Iraq and approves all
projects costing $500,000 or more, but has no role in the approval
process for projects costing less than $500,000 and only limited
visibility of projects under $500,000. The MNC-I approval process
requires extensive documentation prior to approval, such as a detailed
scope of work that clearly identifies the work that the contractors
need to perform as well as the estimated costs for the projects,
documentation that those handling the funds are authorized to do so,
and a purchase request and commitment document authorizing the release
of funds. Additionally, although not required, many commanders we spoke
with reported having proposed projects reviewed by their legal staff.
* Project monitoring: Neither DOD nor MNC-I guidance establishes a
requirement for units executing projects to monitor them. MNC-I
guidance has a broad requirement for the MNC-I engineer to monitor
reconstruction projects, but does not include a requirement for units
executing projects to monitor them. Project monitoring is included in
the CERP guidance for Afghanistan and, as we recently reported, is a
generally accepted quality assurance principle[Footnote 5]. Although
DOD's and MNC-I's guidance does not require project monitoring by units
that execute the projects, unit-level officials we interviewed stated
that they, or their representatives, generally conducted site visits of
ongoing construction projects, but often lacked the knowledge to ensure
that contractors built projects to the correct specifications. Some
said that they were not subject matter experts, and unless something
was blatantly erroneous with the construction, they may not be able to
determine whether the projects were built to contractual
specifications. In a recent testimony, we noted that the capacity to
properly manage and oversee contractor performance was one of the
essential elements for achieving good acquisition outcomes, and if any
of the elements were missing, it could lead to unmet expectations.
Having the right people with the right skills to oversee contractor
performance is crucial to ensuring that DOD receives the best value for
the money spent on CERP projects[Footnote 6]. In conducting site
visits, commanders told us that they found projects that were executed
by previous units in various states, for example, completed but not
sustained by the Iraqi government, vandalized, or nonexistent. The lack
of formal project monitoring guidance to units that are executing
projects leaves it to the discretion of commanders to conduct site
visits. In the absence of such a requirement for regular monitoring,
commanders and ultimately MNC-I officials miss the opportunity to
gather information that could be useful in assessing future uses of
CERP funds, including helping them to decide the success rates of
projects and whether certain types of projects should be undertaken in
the future and whether CERP funds are being used in a fiscally
responsible manner. Also, the lack of subject matter experts puts DOD
at risk of being unable to identify and correct poor contractor
performance, which could affect the cost, completion, and
sustainability of CERP projects.
* Performance metrics: No performance metrics exist for CERP. As we
have previously reported, federal agencies should develop plans that
establish objective, quantifiable, and measurable performance goals
that should be achieved by a program. We have also noted that as
agencies align their activities to support mission-related goals, they
should also make better linkages between levels of funding and their
anticipated results.[Footnote 7] Performance metrics might include
quantitative data, such as the number of projects sustained by the
government of Iraq or the number of people employed as a result of a
CERP project, or qualitative data obtained from the surveys
periodically conducted of the Iraqi people. In the absence of such
metrics, commanders, as they move through their areas of
responsibility, sometimes develop their own indicators or use anecdotal
information to assess the impact of CERP funds. For example, in
addition to forming their own views, commanders may talk to Iraqis who
have benefited from the projects, talk to Iraqis who operate the
projects, or speak with members of the local Iraqi government about the
impact of the CERP projects. The Secretary of the Army serves as the
executive agent and is responsible for developing procedures to ensure
that commanders carry out CERP in a manner that is consistent with
applicable laws, regulations and guidance. The CENTCOM Commander is
responsible for allocating CERP resources. We believe that parameters
for information gathering could be established, which then could be
incorporated into commanders' current interactions with the local Iraqi
leaders. This would provide a more consistent basis for assessing the
impact of CERP projects. Without performance measures or indicators,
MNC-I and DOD do not have the necessary data to assess the results or
outcomes of the CERP projects, and therefore lack information that
would be useful in evaluating and validating commanders' requests for
CERP funding needs.
* Limited knowledge of projects under $500,000: Although MNC-I
officials have some visibility over projects costing more than $500,000
because they approve these projects, they have limited visibility and
oversight for projects costing less than $500,000. Our analysis
indicates that about 97 percent of CERP projects in Iraq cost less than
$500,000 in fiscal year 2007. This equates to more than $507 million,
or 56 percent, of reported obligated funds for CERP projects in Iraq.
Currently, MNC-I officials receive the same information that is
included in the quarterly reports to Congress on all CERP projects in
Iraq, including those costing less than $500,000. The information in
these reports is limited--project number, project location, a brief
description of the project, and the reported obligation amount. MNC-I
officials said that they do not review the projects listed in the
reports for appropriateness and only become involved with projects
costing less than $500,000 if a problem is brought to their attention.
The quarterly reports do not provide information about the number of
projects completed during a quarter, the number of projects that have
been started but not completed, or the number of projects that have not
been sustained or maintained by the Iraqi government or the local
population. Program managers need operational and financial data to
determine whether they are meeting their agencies' goals and utilizing
resources effectively and efficiently.[Footnote 8] Without greater
visibility, MNC-I does not have a basis for assessing the outcomes of
projects costing less than $500,000, evaluating commanders' funding
requests, or assessing the effective and efficient usage of CERP
resources in meeting the program's intent.
Recommendations for Executive Action:
As DOD continues to request funding for CERP projects in Iraq, it is
important that DOD and commanders at all levels have the information
needed to determine whether projects are meeting the intent of the
program, assess program outcomes, and be better informed about their
funding requests. Therefore, to improve the program and management, we
recommend that the Secretary of Defense direct the Under Secretary of
Defense (Comptroller) to revise DOD's CERP guidance to include:
* definitions of small-scale and urgent and:
* a requirement that units that execute CERP projects provide project
monitoring to ensure that contractors have met the contract
specifications.
Furthermore we recommend that the Secretary of Defense direct
Undersecretary of Defense (Comptroller) in conjunction with others to
develop performance measures or indicators for CERP and use these
indicators as well as other information to evaluate project
effectiveness and sustainability as well as the program's budget
requests.
In addition, we recommend that the Chairman of the Joint Chiefs of
Staff direct the Commander of CENTCOM to direct the Commander of MNF-I
to take steps to gain greater visibility of projects costing less than
$500,000, such as obtaining and reviewing summary information on the
status of projects, completion rates, and impact of projects on the
community.
Agency Comments and Our Evaluation:
In written comments to a draft report DOD generally agreed with our
recommendations. DOD also stated that CERP is an important tool that
military commanders are using effectively in Iraq and Afghanistan and
noted that they welcomed our findings as another opportunity to improve
operations in Iraq. DOD's comments are reprinted in enclosure III. In
addition, DOD provided technical comments which we incorporated as
appropriate.
In commenting on the draft report, DOD concurred with our
recommendations to revise DOD's CERP guidance to include definitions of
small-scale and urgent and require that units that execute CERP
projects provide project monitoring to ensure that contractors have met
the contract specifications. According to DOD officials, the Department
has revised its CERP guidance to reflect these changes.
DOD partially concurred with our recommendation to develop performance
measures or indicators for CERP and use these indicators as well as
other information to evaluate project effectiveness and sustainability
as well as the program's budget requests. DOD noted that the department
has revised its CERP guidance to require the development of performance
indicators for projects and agreed that processes must be established
that will help guarantee the successful completion of projects.
However, DOD did not agree that past projects are a primary factor in
determining future projects. In our report, we did not indicate that
past projects should be a primary factor in determining future projects
and understand that CERP is intended to meet the immediate needs of the
local population. As we noted in the report, we believe that agencies
should make linkages between levels of funding and their anticipated
results. Performance metrics would provide data that would allow DOD to
evaluate overall program effectiveness and use this information as one
factor in evaluating and validating commander's project proposals and
related budget requests for CERP.
DOD partially concurred with our recommendation to direct the Commander
of MNF-I to take steps to gain greater visibility of projects costing
less than $500,000, such as obtaining and reviewing summary information
on the status of projects, completion rates, and impact of projects on
the community. However, DOD noted that MNC-I would be the appropriate
organization to receive this recommendation. As we noted in our report,
MNF-I relies on MNC-I to administer CERP in Iraq. Hence, our
recommendation is directed to MNF-I because it is CENTCOM's overarching
authority for military operations in Iraq and MNC-I reports to it.
Furthermore, DOD noted that MNC-I tracks all projects and monitors
their progress using the Iraq Reconstruction Management System and
participates in division coordination meetings. MNC-I officials were
not able to provide us with basic program information such as how many
projects had been started but not completed and what the status of
projects were after completion. Although this information may exist in
the Iraq Reconstruction Management System database, it appears that it
is not being evaluated. Moreover, while MNC-I regularly participates in
division-level coordination meetings, at which subordinate units
present significant projects, our recommendation is geared toward
having greater visibility over projects costing less than $500,000. As
we noted in our report, MNC-I officials stated that they do not become
involved in these projects unless a problem is brought to their
attention.
We are sending copies of this report to other interested congressional
committees and the Secretary of Defense. Copies of this report will
also be made available to others upon request. In addition, this report
will be available at no charge on GAO's Web site at [hyperlink,
http://www.gao.gov].
If you or your staff have any questions on the matters discussed in
this report, please contact me at (202) 519-9619 or at pickups@gao.gov.
Contact points for our Offices of Congressional Relations and Public
Affairs may be found on the last page of this report. Key contributors
to this report are listed in enclosure IV.
Signed by:
Sharon L. Pickup, Director:
Defense Capabilities and Management:
Enclosures - 4:
List of Committees:
The Honorable Carl Levin:
Chairman:
The Honorable John McCain:
Ranking Member:
Committee on Armed Services:
United States Senate:
The Honorable Daniel K. Inouye:
Chairman:
The Honorable Ted Stevens:
Ranking Member:
Subcommittee on Defense:
Committee on Appropriations:
United States Senate:
The Honorable Ike Skelton:
Chairman:
The Honorable Duncan L. Hunter:
Ranking Member:
Committee on Armed Services:
House of Representatives:
The Honorable John P. Murtha:
Chairman:
The Honorable C.W. Bill Young:
Ranking Member:
Subcommittee on Defense:
Committee on Appropriations:
House of Representatives:
Enclosure I: Scope and Methodology:
To determine the project selection criteria for the Commander's
Emergency Response Program (CERP) in Iraq, we obtained and reviewed
guidance from the Department of Defense (DOD), Multinational Corps-Iraq
(MNC-I), and the Combined Joint Task Force and assessed changes in
guidance over time. We also traveled to Iraq to interview officials at
higher commands, including those responsible for the overall management
of CERP at MNC-I as well as commanders, staff judge advocates,
comptrollers, civil affairs officers, and project purchasing officers
from Multinational Division-Baghdad (MND-B) about how program
objectives are developed and what criteria exist for project selection.
Additionally, we interviewed officials at the Office of the Under
Secretary of Defense (Comptroller) and the Office of the Assistant
Secretary of the Army (Financial Management and Comptroller) as well as
military officials at the division, brigade, and battalion levels,
including commanders, staff and brigade judge advocates, civil affairs
officers, paying agents, project purchasing officers, executive
officers, finance officers, effects officers, and targeting officers at
selected units that redeployed from Iraq from January 2007 through
December 2007, regarding what guidance and criteria were used to select
projects. We selected these units (1) based on their redeployment dates
from Iraq; (2) to ensure that we obtained information from officials at
the division, brigade, and battalion levels who had direct experience
with CERP; and (3) because unit officials had not yet been transferred
to other locations within the United States or abroad.
To assess the extent to which commanders coordinate CERP projects with
other U.S. reconstruction programs, such as those funded by the
Department of State, the United States Agency for International
Development (USAID), and the U.S. Army Corps of Engineers, and with the
Iraqi provincial government, we reviewed and analyzed current
applicable guidance to determine what coordination, if any, was
required. We also interviewed officials at selected returned units that
had redeployed from Iraq from January through December 2007, and
officials at the Department of State, USAID, and the U.S. Army Corps of
Engineers in Washington, D.C., to determine the extent of their
coordination activities. Additionally, we traveled to Iraq and
interviewed officials at higher commands, including officials at MNC-I
and MND-B such as commanders, judge advocates, comptrollers, civil
affairs officers, and project purchasing officers from MND-B and
officials based in Iraq from the Department of State, USAID, and the
U.S. Army Corps of Engineers-Gulf Region Division about what
coordination takes place and what, if any, mechanisms were in place to
ensure coordination between agencies and with the Iraqi government.
In order to determine the extent to which DOD provides oversight,
including reviews of annual funding requests, we obtained and reviewed
applicable guidance to ascertain what type of oversight is required and
what oversight and monitoring procedures are in place. We also
interviewed officials at the Office of the Secretary of Defense
(Comptroller) and the Office of the Assistant Secretary of the Army
(Financial Management and Comptroller) as well as officials at selected
returned units, and we traveled to Iraq to interview officials at
higher commands, including officials at MNC-I and MND-B, as well as
commanders, judge advocates, comptrollers, and civil affairs officers
from MND-B about the type of oversight that exists, including the
project approval and project monitoring processes. In addition, while
in Iraq, we spoke with officials at Multinational Force-Iraq and MNC-I
involved in the budgeting process about how annual funding requests are
developed and subsequently reviewed. To determine how DOD assesses the
impact of program activities, including the use of performance
measures, we reviewed and analyzed applicable guidance to see if any
measures of effectiveness were required or specified. We also
interviewed officials at the Office of the Secretary of Defense
(Comptroller) and the Assistant Secretary of the Army (Financial
Management and Comptroller) as well as military officials at selected
units who had redeployed from Iraq. Additionally, we traveled to Iraq
to interview officials at higher commands, including officials at MNC-
I and MND-B, such as commanders, judge advocates, comptrollers, and
civil affairs officers about what measures or indicators they used to
determine the effectiveness of the program. To gain a further
understanding of the impact of projects, we visited selected CERP
projects in MND-B.
In addition, we performed a trend analysis of the reported obligations
in the quarterly CERP reports to Congress and interviewed officials
about information contained in the reports. Based on interviews with
officials and our review of a limited number of CERP projects, we
believe that these data are sufficiently reliable for the purposes of
this report. In addition, we reviewed a small number of fiscal year
2008 CERP project files to become familiar with the documents
maintained in the files. We requested a sample of fiscal year 2006 and
fiscal year 2007 CERP project files for our audit work, but military
officials could not locate the files during the time of our review:
We visited or contacted the following organizations during our review:
Department of Defense: Office of the Under Secretary of Defense
(Comptroller), Pentagon, Virginia:
Department of the Army: Assistant Secretary of the Army (Financial
Management and Comptroller):
United States Army Forces Command, Fort McPherson, Georgia:
United States Army Central Command, Fort McPherson, Georgia:
National Guard Bureau, Arlington, Virginia:
United States Army Corps of Engineers, Washington, D.C.:
United States Army Corps of Engineers, Gulf Region Division, Baghdad,
Iraq:
Multinational Force-Iraq, Baghdad, Iraq:
Multinational Corps-Iraq, Camp Victory, Iraq:
Multinational Division-Baghdad, Camp Liberty, Iraq:
4TH Infantry Division, Camp Liberty, Iraq:
1ST/34TH Brigade Combat Team, Minnesota Army National Guard, Rosemont,
Minnesota:
3RD Stryker Brigade Combat Team, 2ND Infantry Division, Fort Lewis,
Washington:
3RD/ 82ND Brigade Combat Team, Airborne Division, Fort Bragg, North
Carolina:
25TH Infantry Division, Honolulu, Hawaii:
Other government agencies: United States Agency for International
Development, Washington, D.C.:
United States Agency for International Development, Baghdad, Iraq:
Department of State, Washington, D.C.
Department of State, Baghdad, Iraq:
We conducted this performance audit from May 2007 to April 2008 in
accordance with generally accepted government auditing standards. Those
standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that
the evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objectives.
[End of section]
Enclosure II: Briefing to Congressional Committee:
Commander‘s Emergency Response Program (CERP) In Iraq:
Briefing to Congressional Committees:
Objectives:
To what extent does DOD guidance establish selection criteria for CERP
projects?
To what extent do commanders in Iraq coordinate CERP projects with
other U. S. government agencies and with the Government of Iraq? and:
To what extent do DOD and MNC-I exercise oversight of CERP projects in
Iraq?
Scope and Methodology:
To meet our objectives, we:
* Reviewed legislation and guidance for CERP projects in Iraq and
Afghanistan;
* Interviewed DOD officials, Army units in Iraq, Army units returning
from Iraq, Department of State, United States Agency for International
Development (USAID), and Army Corps of Engineers officials both in Iraq
and Washington, D.C.;
* Reviewed and analyzed quarterly CERP reports to Congress;
* Reviewed audit reports from other agencies;
GAGAS standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on audit objectives. We believe that the
evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objectives.
Background:
The Commander‘s Emergency Response Program (CERP) is intended to
provide commanders a source of funds to respond to urgent, small-scale
humanitarian relief and reconstruction needs that will immediately
assist the local Iraqi population.
In FY 04, Congress appropriated CERP funds as part of the Emergency
Supplemental Appropriations Act for Defense and for the Reconstruction
of Iraq and Afghanistan, 2004, Public Law 108-106, section 1110.
In fiscal year 2008, DOD requested $1.2 billion for CERP and Congress
appropriated about $500 million to fund the CERP program. DOD is
requesting an additional $480 million for Iraq.
Figure: Trends in Reported CERP Obligations in Iraq for FY 2004-FY
2007:
This figure is a vertical bar graph showing trends in reported CERP
obligations in Iraq for FY 2004-FY 2007. The X axis represents the
fiscal year, and the Y axis represents the dollars obligated (in
millions).
Fiscal year: 2004;
Dollars obligated (in millions): $139.3.
Fiscal year: 2005;
Dollars obligated (in millions): $716.4.
Fiscal year: 2006;
Dollars obligated (in millions): $509.7.
Fiscal year: 2007;
Dollars obligated (in millions): $897.9.
[See PDF for image]
Source: GAO analysis of DOD data.
[End of figure]
Figure: FY 2007 CERP Reported Obligations Breakout by Category in Iraq:
This figure is a vertical bar graph showing FY 2007 CERP reported
obligations breakout by category in Iraq. The X axis represents the
category, and the Y axis represents the dollars obligated (in
millions).
Category: Agriculture;
Dollars obligated (in millions): $22.1.
Category: Civic cleanup;
Dollars obligated (in millions): $64.7.
Category: Civic support vehicles;
Dollars obligated (in millions): $13.2.
Category: Condolence payments;
Dollars obligated (in millions): $11.3.
Category: Economic, financial, and management improvements;
Dollars obligated (in millions): $36.5.
Category: Education;
Dollars obligated (in millions): $115.2.
Category: Electricity;
Dollars obligated (in millions): $124.3.
Category: Food protection;
Dollars obligated (in millions): $5.6.
Category: Healthcare;
Dollars obligated (in millions): $28.6.
Category: Irrigation;
Dollars obligated (in millions): $19.5.
Category: Other;
Dollars obligated (in millions): $35.3.
Category: Detainee payments;
Dollars obligated (in millions): $0.6.
Category: Protective measures;
Dollars obligated (in millions): $49.6.
Category: Repair to civic and cultural facilities;
Dollars obligated (in millions): $67.5.
Category: Battle damage;
Dollars obligated (in millions): $7.0.
Category: Rule of law;
Dollars obligated (in millions): $28.4.
Category: Telecommunications;
Dollars obligated (in millions): $4.1.
Category: Transportation;
Dollars obligated (in millions): $98.6.
Category: Water and sanitation;
Dollars obligated (in millions): $163.1.
[See PDF for image]
Source: GAO analysis of DOD data.
[End of figure]
Objective 1:
1. To what extent does DOD guidance establish selection criteria for
CERP?
Authorized uses for CERP funds Identified by DOD Guidance:
1. water and sanitation:
2. food production and distribution:
3. agriculture:
4. electricity:
5. healthcare:
6. education:
7. telecommunications:
8. economic, financial and management improvements:
9. transportation:
10. rule of law and governance:
11. irrigation:
12. civic cleanup activities:
13. civic support vehicles:
14. repair of civic and cultural facilities:
15. condolence payments to individual civilians for death or physical
injury resulting from U.S., coalition, or supporting military
operations:
16. repair, or payment for repair of property damage that results from
U.S., coalition, or supporting military operations:
17. payments to individuals upon release from detention:
18. protective measures, such as fencing, lights, barrier materials,
berming over pipelines, guard towers, temporary civilian guards, etc.:
19. other urgent humanitarian or reconstruction projects:
Figure: Examples of CERP projects:
This figure is a combination of photographs showing CERP projects.
Photo #1:
This sewage lift station in the Ghazaliya neighborhood in Baghdad, Iraq
is a multimillion dollar CERP project that is being managed by the Army
Corps of Engineers-Gulf Regional Division. The lift station will help
the sewer system operate correctly and alleviate standing sewage and
storm runoff.
Photo #2:
The sports complex and community center is a CERP project that cost
several hundred thousand dollars and is located along a Sunni-Shi'a
fault line in the Mansour district in Baghdad, Iraq. Military officials
hope that the project will help bring the divided community together.
Photo #3:
The owner of this market stall was the recipient of a $2,500 CERP
grant, which was used to renovate his produce stand in Baghdad, Iraq.
[See PDF for image]
Source: GAO.
[End of figure]
Unauthorized uses for CERP funds Identified by DOD Guidance:
1. Direct or indirect benefit to U.S., coalition or supporting military
personnel:
2. Providing goods, services, or funds to national guard forces, border
security forces, civil defense forces, infrastructure protection
forces, highway patrol units, police, special police, or intelligence
or other security forces:
3. Except as authorized by law and separate implementing guidance,
weapons buy-back programs, or other purchases of firearms or
ammunition:
4. Entertainment:
5. Reward Programs:
6. Removal of unexploded ordinance:
7. Duplication of services available through municipal governments:
8. Salaries, bonus or pensions of Iraqi or Afghan military or civilian
government personnel:
9. Training, equipping or operating costs of Iraqi or Afghan military
or security forces:
10. Conducting psychological operations, information operations, or
other US, coalition, or Iraqi/Afghanistan Security Force Operations
Unauthorized uses of CERP funds Identified by DOD guidance:
Selection Criteria is Subject to Interpretation:
CERP guidance gives commanders considerable leeway in the approval of
projects as long as they meet the intent of the CERP program.
DOD guidance states that CERP is to be used for small scale, urgent
humanitarian and reconstruction needs. However, DOD guidance does not
define ’small-scale“ or ’urgent“.
* DOD officials (Comptroller and Army Budget Office) explained that a
finite definition for the terms might impact the program‘s flexibility.
Units we visited had varying definitions for ’small scale“ and
’urgent“.
* ’Small scale“ was defined by commanders as one of the following:
- A dollar amount, or:
- Project type, or:
- Time to complete a project:
* ’Urgent“ was defined by commanders as one of the following:
- As restoring basic human needs, or:
- By what the local Iraqi population said they needed most (e.g.
school, clinic, etc.)
CERP Guidance and Criteria:
Projects may be both construction and non-construction. The type of
projects that commanders approve varies and depends upon strategy of
the commander, needs of the area, and security in the area.
MNC-I guidance states the keys to project selection are 1) execute
quickly; 2) employ many Iraqis; 3) benefit the Iraqi people; and 4) be
highly visible.
Over time, as conditions change, the type of projects that commanders
executed evolved. Some projects cost millions of dollars and are
estimated to take more than one year to complete. The number of
projects costing over $500,000 has generally increased and Sons of Iraq
(temporary civilian guards who protect critical infrastructure in Iraq)
has become a high priority for CERP funds. For instance, a Baghdad
military division estimates it will spend about 40 percent of its CERP
budget on Sons of Iraq.
Objective 2:
To what extent do commanders in Iraq coordinate CERP projects with
other U.S. government agencies and with the Government of Iraq?
Guidance requires coordination with various elements in Iraq
Coordination occurs at the local level in Iraq:
Guidance for Iraq requires commanders to coordinate with the following:
1. Local Iraqi government agencies,
2. Civil affairs elements,
3. Engineers,
4. Provincial reconstruction and development councils,
5. Provincial Reconstruction Teams (PRTs). PRTs consist of civil-
military officials, including Department of State and United States
Agency for International Development officials, and primarily focus on:
1. Improving governance,
2. Increasing security,
3. Developing the economy, and:
4. Reconstruction:
Coordination with the Department of State and United States Agency for
International Development is not required by guidance, except at the
PRT level, but MNC-I guidance notes that coordination may include
complementary programs provided by USAID and other non-governmental
agencies.
Coordination occurs at the local level in Iraq:
Commanders reported coordinating CERP projects with the appropriate PRT
and with the local Iraqi governance; however the extent of coordination
with PRTs was a function of the rapport between the entities.
Some PRTs in Iraq are embedded (ePRT) with the brigades; while others
are larger individual organizations. Army officials in Iraq stated that
they had an excellent relationship with ePRTs and believe the presence
of PRTs and ePRTs have led to improved coordination between military,
Department of State, and United States Agency for International
Development efforts.
Army officials told us that projects costing over $500,000 were
coordinated with appropriate officials within the Iraqi government,
including ministry representatives.
Units that we visited generally stated that coordination with Army
Corps of Engineers was limited to larger or more complex projects.
Objective 3:
To what extend do DOD and MNC-1 exercise oversight of CERP projects in
Iraq?
Approval levels for CERP:
Guidance establishes the approval levels for projects thereby providing
some level of oversight in theater.
Although MNC-I has some visibility over projects costing more than
$500,000 because they approve these, they have limited visibility and
oversight for projects costing less than $500,000. MNC-I is not
involved in the approval process for projects that cost less than
$500,000. Our analysis indicates that about 97 percent of CERP projects
in Iraq cost less than $500,000 in FY 07. This equates to more than
$507 million, or 56 percent, of reported obligated funds for CERP
projects.
Iraq;
CERP Project Amount: Over $500,000;
Approval Authority: Multinational Corps-Iraq Commander;
Can be Delegated?: No.
Iraq;
CERP Project Amount: Less than $500,000;
Approval Authority: Major Subordinate Command Commander;
Can be Delegated?: Yes.
Oversight in Iraq varied:
Oversight is an element of the project approval and project monitoring
processes. These two phases of the CERP process receive varying levels
of oversight.
Project Approval:
* Commanders we spoke with reported vetting projects through the
appropriate approval authorities including Brigade commanders and Staff
Judge Advocates who checked to ensure that the projects fell within
CERP guidelines.
* Many commanders that we visited told us that the approval process was
too bureaucratic and cumbersome which impacted their ability to respond
quickly to the needs of the local population. For example, one
commander told us that it took 30-45 days between identifying a project
and getting the project started.
* One division has established an automated approval system for CERP
projects. Subordinate units scan in the CERP documentation required for
project approval and can then track where the projects stands in the
approval process through a web portal.
Project Monitoring:
DOD and MNC-I guidance directs strict control over the fiscal tracking
for CERP projects, but does not require units who execute the projects
to conduct project monitoring, such as site visits, to ensure that
projects meet specifications.
Commanders or their representatives we visited stated that they
conducted site visits to determine the status of project completion.
However, they told us that often they did not possess the proper skill
sets to determine if a project was built to specifications.
Afghanistan guidance could serve as a model for Iraq guidance in terms
of oversight:
Afghanistan guidance requires oversight of CERP projects. Specifically,
units must provide a quality assurance and quality control mechanism
for all CERP projects.
Afghanistan guidance also requires that technical engineering support
be used for construction project design and development as well as
quality assurance during execution.
No CERP performance indicators exist:
GAO has previously reported that federal agencies develop performance
measures for a program.
Multiple commanders said they believe CERP is an effective program.
However, no formal performance indicators have been established to
assess the impact of CERP projects in Iraq. Commanders collected some
anecdotal information about the impact that CERP had on the local
populace.
* Some commanders reported that they tracked direct and indirect fire
attacks as well as improvised explosive device attacks to determine
whether attacks increase or decrease after a CERP project is executed
in an area. Commanders stated that attacks usually decreased in areas
where CERP projects were executed but cannot definitively tie the
decrease to the CERP project.
* Some commanders also cited increased information sharing and greater
cooperation from the local Iraqi populace as a positive result of CERP
projects.
Performance metrics might include quantitative data such as the number
of projects the Government of Iraq sustained or the number of people
employed as a result of a CERP project or qualitative data gathered by
surveys of Iraqi people.
DOD‘s oversight is limited in scope:
DOD officials, specifically OSD Comptroller and Army Budget Office,
view CERP as a commander‘s program which should retain maximum
flexibility and therefore limit their oversight to reviewing the CERP
quarterly reports to Congress.
* Army Budget Office reviews the quarterly CERP reports to Congress for
completeness and to ensure that project descriptions match the project
category. OSD Comptroller then reviews the quarterly CERP reports to
Congress for completeness, accuracy of calculations, and whether the
project‘s description is assigned to the appropriate CERP category.
Additionally, the OSD Comptroller‘s General Counsel reviews the reports
to Congress.
* OSD Comptroller and Army Budget Office officials informed us that
they rely on commanders and those administering CERP in theater to
determine what CERP projects are appropriate.
Multinational Force-Iraq said that they do not have responsibility for
CERP because it is a Title 10 function, and rely on MNC-I to administer
CERP.
MNC-I receives the quarterly CERP reports to Congress that contains all
CERP projects, including those costing less than $500,000 and reviews
the reports to ensure that projects are correctly categorized, but does
not review them for the appropriate use of CERP funds. MNC-I typically
only becomes involved with projects that cost less than $500,000 when
they are notified that there is a problem with the project or there
could be a problem with it.
DOD‘s review of CERP budget request is limited:
MNC-I develops the budget request for CERP based on such things as
information received from Multinational Divisions on planned projects
and historical execution. However, they do not review and prioritize
planned projects from the Multinational Divisions prior to sending the
request to U.S. Central Command (CENTCOM).
CENTCOM sends the annual budget request to the Army Budget Office. It
is a line item request for the entire program and no supporting
justification is required.
The Army Budget Office reviews the request and the funding level for
the previous year, then adds a percentage increase for inflation prior
to the request being sent to Congress. Their review of the CERP funding
request includes coordinating with the Army officials in charge of
operations to ascertain anticipated deployed strengths and force
rotations, and with CENTCOM finance officials to obtain CERP
requirements for Iraq and Afghanistan. If the operational command does
not provide a specific requirement for increased CERP funding, the Army
Budget Office holds CERP funding constant and adds an inflation factor,
and then forwards the request to OSD Comptroller and the Office of
Management and Budget for review and subsequent release to Congress.
CENTCOM determines the funding level between Iraq and Afghanistan.
[End of section]
Enclosure III: Comments from the Department of Defense:
Under Secretary Of Defense:
1100 Defense Pentagon:
Washington. DC 20301-1 100:
Comptroller:
June 6, 2008:
Sharon L. Pickup:
Director, Defense Capabilities and Management:
U.S. Government Accountability Office:
441 G Street, N.W.:
Washington, DC 20548:
Dear Ms. Pickup:
This is the Department of Defense response to the Government
Accountability Office (GAO) draft report, GAO-08-736R, "Military
Operations: Actions Needed to Better Guide Project Selection for
Commander's Emergency Response Program and Improve Oversight in Iraq, "
dated May 2, 2008 (GAO Code 351054). By providing authority for the
Commanders' Emergency Response Program, Congress has made available an
important tool that our military commanders are using effectively in
Iraq and Afghanistan. We welcome the GAO findings as another
opportunity to improve operations in Iraq. The Department's responses
to the recommendations included in draft report are enclosed. Technical
comments have been provided to your staff separately.
Thank you for the opportunity to respond to this draft report.
Sincerely,
Signed by:
Tina W. Jonas:
Enclosure:
As stated:
GAO Draft Report - Dated MAY 2, 2008:
GAO Code 351054 /GAO-08-736R:
"Military Operations: Actions Needed to Better Guide Project Selection
for Commander's Emergency Response Program and Improve Oversight in
Iraq"
Department Of Defense Comments To The Recommendations:
Recommendation 1: The GAO recommends that the Secretary of Defense
direct the Under Secretary of Defense (Comptroller) to revise its
Commander's Emergency Response Program (CERP) guidance to include:
* a definition of small-scale and urgent, and:
* a requirement that units that execute CERP projects provide project
monitoring to ensure that contractors have met the contract
specifications.
DOD Response: Concur. DoD has issued revised guidance to incorporate
these recommendations.
Recommendation 2: The GAO recommends that the Secretary of Defense
direct the Under Secretary of Defense (Comptroller), in conjunction
with others, to develop performance measures or indicators for the
Commander's Emergency Response Program and use these indicators as well
as other information to evaluate project effectiveness and
sustainability as well as the program's budget requests.
DOD Response: Partially Concur. DoD has amended the Commander's
Emergency Response Program (CERP) guidance to require performance
indicators for CERP-funded projects. The revised guidance will require
that performance indicators be developed and submitted as part of a
project proposal package in theater and used to evaluate it through
project close-out.
We agree with the GAO that CERP projects must be established with
processes that will help guarantee successful completion. However,
given the fact that CERP is directly linked to the immediate warfight
and is, by design, focused on projects that will meet the needs of the
immediate situation, we do not concur that past projects are a primary
factor in determining future projects. CERP funding is driven by the
security situation in theater and that is the environment that the
local commanders use in prioritizing projects. It is this influence of
CERP in the irregular warfare of counter-insurgency that the military
commanders identify as its intrinsic value.
Recommendation 3: The GAO recommends that the Chairman of the Joint
Chiefs of Staff direct the Commander, U.S. Central Command to direct
the commander, Multi-National Forces-Iraq to take steps to gain greater
visibility of projects costing less than $500,000, such as obtaining
and reviewing summary information on the status of projects, completion
rates, and impact of projects on the community.
DOD Response: Partially Concur. DoD has revised the guidance
accordingly. However, we note that the Multi-National Corps-Iraq (MNC-
I) would be the appropriate organization for this recommendation. In
addition, MNC-I currently tracks all projects and monitors their
progress. The MNC-I regularly participates (in person or via video-
teleconference) in division-level coordination meetings at which
subordinate units present significant projects and status information.
Enclosure IV: GAO Contacts and Staff Acknowledgments:
GAO Contact: Sharon Pickup, (202) 512-9619 or pickups@gao.gov:
Acknowledgments:In addition to the contact named above, Carole Coffey,
Assistant Director; James Ashley; Grace Coleman; Joel Grossman; Nicole
Harms; Melissa Hermes; Larry Junek; Ron La Due Lake; Gregory Marchand;
Leo Sullivan; Sonja Ware; and Karen Werner made key contributions to
this report.
[End of section]
Footnotes:
[1] CERP was established by the Coalition Provisional Authority in 2003
and was originally funded by seized Iraqi assets and monies from the
Development Fund for Iraq. However, in November 2003, Congress
appropriated $180 million for CERP as part of the Emergency
Supplemental Appropriations Act for Defense and for the Reconstruction
of Iraq and Afghanistan, Pub. L. No.108-106 (2003).
[2] DOD Financial Management Regulation 7000.14-R, vol. 12, ch. 27,
Commander's Emergency Response Program (CERP) (Nov. 2007).
[3] CENTCOM is one of DOD's six regional combatant commands. Its area
of responsibility includes Iraq and Afghanistan. Combatant commanders
are responsible for overseeing U.S. military operations that take place
in their geographic area. CENTCOM determines the allocation of funds
between Iraq and Afghanistan.
[4] PRTs are a joint civilian-military interagency effort that serve as
the primary interface for U.S. and coalition partners and provincial
and local governments throughout Iraq. Embedded PRTs are civilian-led
teams that work in concert with the brigade combat teams.
[5] GAO, Defense Logistics: The Army Needs to Implement an Effective
Management and Oversight Plan for the Equipment Maintenance Contract in
Iraq, GAO 08-316R (Washington, D.C.: Jan. 22, 2008).
[6] GAO, Stabilizing and Rebuilding Iraq: Actions Needed to Address
Inadequate Accountability over U.S. Efforts and Investment, GAO-08-568T
(Washington, D.C.: March 11, 2008).
[7] GAO, Executive Guide: Effectively Implementing the Government
Performance and Results Act, GAO/GGD-96-118 (Washington, D.C.: June
1996).
[8] GAO, Internal Control: Standards for Internal Control in the
Federal Government, GAO/AIMD-00-21.3.1 (Washington, D.C.: Nov. 1999).
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