State Department

In the wake of the U.S. embassy bombings in Kenya and Tanzania in 1998, Congress provided the State Department with $1.5 billion in emergency supplemental funding to strengthen security worldwide. GAO found that State has made progress in implementing the program funded by the emergency supplemental appropriation. State has reestablished embassy operations in interim office buildings in Nairobi and Dar es Salaam and signed a contract to build new embassy compounds. Projects to relocate several other embassies and consulates are also underway. However, the costs to build new embassies in Uganda, Croatia, and Qatar are about $45 million higher than originally estimated, mainly because of upgraded security requirements. State has also made progress in implementing many of its planned security upgrades, including enhancing vehicle inspection and security guard programs, hiring additional special agents and other security staff, and instituting a new surveillance detection program designed to identify hostile surveillance activities and potential attackers. However, major construction upgrades to strengthen security at more than 100 posts are over budget and behind schedule, according to State.

GAO noted that: (1) State has made progress in implementing the program funded by the emergency supplemental appropriations to improve security overseas; (2) State has reestablished embassy operations in interim office buildings in Nairobi, Kenya, and Dar es Salaam, Tanzania, and signed a contract for construction of new embassy compounds that are scheduled for completion in 2003 at a cost of about $119 million; (3) projects to relocate several other embassies and consulates are also underway; (4) however, the cost estimates for the construction of new embassies in Kampala, Uganda, Zagreb, Croatia, and Doha, Qatar, are about $122 million, or about $45 million higher than original estimates due mainly to upgraded security requirements; (5) State has also made progress in implementing many of its planned security upgrades, including enhanced vehicle inspection and security guard programs, hiring additional special agents, and other security staff, and instituting a new surveillance detection program designed to identify hostile surveillance activities and potential attackers; (6) however, projects involving major construction upgrades to improve security at over 100 posts are, according to State's estimates, costing more than was originally estimated and are behind schedule; (7) State estimates that major security construction upgrades and the installation of electronic equipment, originally funded at $181 million, are at least 1 year behind schedule and could potentially cost about $800 million more to complete than originally envisioned due to an increase in requirements and other factors; (8) to address these additional requirements, State says it plans to: (a) request additional funds in its fiscal year 2001 and future budgets; (b) realign funds from other projects; (c) stretch the program over several years; and (d) where possible, use less costly contracting methods to achieve project objectives; and (9) as of December 31, 1999, State had obligated $972 million and expended $445 million of the $1.5 billion emergency supplemental appropriations.