High-Level Leadership Needed to Help Guam Address Challenges Caused by DOD-Related Growth
Gao ID: GAO-09-500R April 9, 2009In an effort to improve the U.S. military's flexibility to address conventional and terrorist threats worldwide, the Department of Defense (DOD) plans to relocate more than 8,000 Marines and an estimated 9,000 dependents from Okinawa, Japan, to Guam as well as expand other U.S. force capabilities on the island at an estimated cost of more than $13 billion. Guam is an integral part of DOD's logistical support system and serves as an important forward operational hub for a mix of military mission requirements. According to DOD, Guam provides strategic flexibility, freedom of action, and prompt global action for the Global War on Terrorism, peace and wartime engagement, and crisis response. DOD plans to begin construction on Guam during fiscal year 2010 in order to meet the desired buildup deadline of fiscal year 2014 indicated in the agreement reached by the U.S.-Japan Security Consultative Committee on October 29, 2005. As a result of the military buildup, Guam's current population of 171,000 will increase by an estimated 25,000 active duty military personnel and dependents (or 14.6 percent), to 196,000. In addition, the realignment will require additional workers to move to the island, including non-defense personnel, DOD contractors, and transient military personnel. As such, the U.S. military realignment and buildup will substantially impact Guam's community and infrastructure. DOD and representatives for Guam have expressed concern that Guam's infrastructure and social services will not be prepared to handle the impacts of the buildup by the 2014 completion date because of the compressed timeline and the extensive impact of the buildup. Further, GAO previously reported that the Government of Guam faces significant challenges in addressing the impacts of the buildup and realignment. Although DOD plans to fund infrastructure requirements directly related to the military buildup and realignment as well as contribute some funds toward civilian infrastructure requirements such as utilities and roads, the Government of Guam is largely responsible for obtaining funding for civilian requirements related to the buildup. In a May 2008 hearing before the Senate Committee on Energy and Natural Resources, the Governor of Guam stated that approximately $6.1 billion would be requested for fiscal year 2010 to help fund Guam's needs in support of the military buildup. GAO has reported that most communities affected by such defense actions, with far lower requirements than Guam, were likely to incur significant costs for infrastructure and were seeking federal assistance. Guam is similarly seeking extensive federal aid across many federal agencies. Both DOD and the Department of the Interior have worked to raise awareness across the federal government of the need to address the systemic challenges to support both the construction effort and the long-term impact of stationing additional forces on Guam as well as to coordinate interagency budgets by identifying Guam's core requirements and matching up those requirements with potential federal agencies that may be able to provide the necessary resources to address Guam's critical social services and infrastructure needs. Section 2822(b) of the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 required us to report on the status of interagency coordination through the Interagency Group on Insular Areas (IGIA) of budgetary requests to assist the Government of Guam with its budgetary requirements related to the realignment of U.S. military forces on Guam. Our objective was to determine the status of interagency coordination including the status of the IGIA's participation in that coordination.
The IGIA has made some efforts at federal collaboration; however, it will be unable to affect interagency budgets to help ensure that the realignment of military forces on Guam will be completed by the fiscal year 2014 completion date because it does not have the authority to direct other federal agencies' budget or other resource decisions. However, based on a series of executive orders dating back to 1978, it has been long-standing DOD policy that DOD take the leadership role within the federal government in helping communities respond to the effects of defense-related activities. The current version of the executive order, Executive Order 12788, establishes an Economic Adjustment Committee made up of 22 federal departments and agencies, including the Department of the Interior, and requires the committee to, among other duties, advise, assist, and support the Defense Economic Adjustment Program. This program is to assist substantially and seriously affected communities from the effects of major defense closures and realignments. Moreover, the program is also to serve as a clearinghouse to exchange information among federal, state and community officials involved in the resolution of community economic adjustment problems, including identifying sources of public and private financing to meet identified needs. While DOD, through the Economic Adjustment Committee, does not have the authority to direct member executive agencies' budget or other resource decisions, Executive Order 12788 does specify that all executive agencies are to give priority consideration to requests from defense-affected communities for financial resources and other assistance. However, as we previously reported, the Office of the Secretary of Defense has not provided the high-level leadership on the Economic Advisory Committee that is necessary to help ensure interagency and intergovernmental coordination at levels that can make policy and budgetary decisions to better leverage resources through the committee. Although other federal assistance has been provided to Guam from organizations such as the Navy's Joint Guam Program Office and Interior's Office of Insular Affairs, these organizations do not have the authority to direct other federal agencies to provide resources to defense-affected communities or ensure that Guam's budget requests related to the military buildup become a priority across the federal government. Only high-level leadership from the Secretary of Defense can marshal the resources of the Economic Adjustment Committee's member agencies, and only high-level federal officials from these agencies can affect possible policy and budget decisions that may be required to better assist the communities.
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: Brian J. Lepore Team: Government Accountability Office: Defense Capabilities and Management Phone: (202) 512-4523GAO-09-500R, High-Level Leadership Needed to Help Guam Address Challenges Caused by DOD-Related Growth
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GAO-09-500R:
United States Government Accountability Office:
Washington, DC 20548:
April 9, 2009:
Congressional Committees:
Subject: High-Level Leadership Needed to Help Guam Address Challenges
Caused by DOD-Related Growth:
In an effort to improve the U.S. military's flexibility to address
conventional and terrorist threats worldwide, the Department of Defense
(DOD) plans to relocate more than 8,000 Marines and an estimated 9,000
dependents from Okinawa, Japan, to Guam as well as expand other U.S.
force capabilities on the island at an estimated cost of more than $13
billion. Guam is an integral part of DOD's logistical support system
and serves as an important forward operational hub for a mix of
military mission requirements. According to DOD, Guam provides
strategic flexibility, freedom of action, and prompt global action for
the Global War on Terrorism, peace and wartime engagement, and crisis
response. DOD plans to begin construction on Guam during fiscal year
2010 in order to meet the desired buildup deadline of fiscal year 2014
indicated in the agreement reached by the U.S.-Japan Security
Consultative Committee on October 29, 2005. As a result of the military
buildup, Guam's current population of 171,000 will increase by an
estimated 25,000 active duty military personnel and dependents (or 14.6
percent), to 196,000. In addition, the realignment will require
additional workers to move to the island, including non-defense
personnel, DOD contractors, and transient military personnel. As such,
the U.S. military realignment and buildup will substantially impact
Guam's community and infrastructure.
DOD and representatives for Guam have expressed concern that Guam's
infrastructure and social services will not be prepared to handle the
impacts of the buildup by the 2014 completion date because of the
compressed timeline and the extensive impact of the buildup. Further,
GAO previously reported that the Government of Guam faces significant
challenges in addressing the impacts of the buildup and realignment.
[Footnote 1] For example, construction demands will exceed local
capacity and the availability of workers on Guam. In addition, Guam's
infrastructure is inadequate to meet the increased demand because of
the military buildup. The buildup requires double the existing port
capacity, and Guam's major highways may not have enough capacity to
accommodate the increased traffic since the two major highways on Guam,
which the military will use to transport supplies, need major
improvements. In addition, Guam's electric grid may be inadequate to
fully support the buildup. Further, Guam's water and waste-water
systems are near capacity, and demand may increase by 25 percent.
Guam's solid-waste facilities also face capacity and environmental
challenges as they have reached the end of their projected useful life.
Although DOD plans to fund infrastructure requirements directly related
to the military buildup and realignment as well as contribute some
funds toward civilian infrastructure requirements such as utilities and
roads, the Government of Guam is largely responsible for obtaining
funding for civilian requirements related to the buildup. In a May 2008
hearing before the Senate Committee on Energy and Natural Resources,
the Governor of Guam stated that approximately $6.1 billion would be
requested for fiscal year 2010 to help fund Guam's needs in support of
the military buildup.[Footnote 2] GAO has reported that most
communities affected by such defense actions, with far lower
requirements than Guam, were likely to incur significant costs for
infrastructure and were seeking federal assistance.[Footnote 3] Guam is
similarly seeking extensive federal aid across many federal agencies.
Both DOD and the Department of the Interior have worked to raise
awareness across the federal government of the need to address the
systemic challenges to support both the construction effort and the
long-term impact of stationing additional forces on Guam as well as to
coordinate interagency budgets by identifying Guam's core requirements
and matching up those requirements with potential federal agencies that
may be able to provide the necessary resources to address Guam's
critical social services and infrastructure needs.
Section 2822(b) of the Duncan Hunter National Defense Authorization Act
for Fiscal Year 2009 required us to report on the status of interagency
coordination through the Interagency Group on Insular Areas (IGIA) of
budgetary requests to assist the Government of Guam with its budgetary
requirements related to the realignment of U.S. military forces on
Guam.[Footnote 4] Our objective was to determine the status of
interagency coordination including the status of the IGIA's
participation in that coordination.
To determine the status of interagency coordination and to what extent
and how the IGIA is coordinating interagency budgets, including its
processes to ensure coordination, we interviewed officials from the
Department of the Interior's Office of Insular Affairs, the Navy's
Joint Guam Program Office (JGPO), the Federal Regional Council--Region
IX, and DOD's Office of Economic Adjustment. In addition, we observed
interagency meetings, including the 2009 Interagency Group on Insular
Areas Plenary session and a federal funding strategy meeting on the
Guam military buildup that discussed efforts to identify funding for
programs and projects on Guam related to the realignment. We also
reviewed these organizations' responsibilities and goals and/or mission
to identify their respective roles with regard to the military buildup.
Moreover, we reviewed meeting minutes from the Federal Interagency Task
Force on the Guam Military Buildup (Interagency Task Force). To gain a
fuller understanding of the interagency coordination process, we also
reviewed documentation to gain the Government of Guam's perspective and
opinions on the process used in conjunction with the military buildup.
We conducted this performance audit from January 2009 through March
2009, 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.
Summary:
The IGIA has made some efforts at federal collaboration; however, it
will be unable to affect interagency budgets to help ensure that the
realignment of military forces on Guam will be completed by the fiscal
year 2014 completion date because it does not have the authority to
direct other federal agencies' budget or other resource decisions.
However, based on a series of executive orders dating back to 1978, it
has been long-standing DOD policy that DOD take the leadership role
within the federal government in helping communities respond to the
effects of defense-related activities.[Footnote 5] The current version
of the executive order, Executive Order 12788, establishes an Economic
Adjustment Committee made up of 22 federal departments and agencies,
including the Department of the Interior, and requires the committee
to, among other duties, advise, assist, and support the Defense
Economic Adjustment Program. This program is to assist substantially
and seriously affected communities from the effects of major defense
closures and realignments. Moreover, the program is also to serve as a
clearinghouse to exchange information among federal, state and
community officials involved in the resolution of community economic
adjustment problems, including identifying sources of public and
private financing to meet identified needs. While DOD, through the
Economic Adjustment Committee, does not have the authority to direct
member executive agencies' budget or other resource decisions,
Executive Order 12788 does specify that all executive agencies are to
give priority consideration to requests from defense-affected
communities for financial resources and other assistance. However, as
we previously reported, the Office of the Secretary of Defense has not
provided the high-level leadership on the Economic Advisory Committee
that is necessary to help ensure interagency and intergovernmental
coordination at levels that can make policy and budgetary decisions to
better leverage resources through the committee. Although other federal
assistance has been provided to Guam from organizations such as the
Navy's Joint Guam Program Office and Interior's Office of Insular
Affairs, these organizations do not have the authority to direct other
federal agencies to provide resources to defense-affected communities
or ensure that Guam's budget requests related to the military buildup
become a priority across the federal government. Only high-level
leadership from the Secretary of Defense can marshal the resources of
the Economic Adjustment Committee's member agencies, and only high-
level federal officials from these agencies can affect possible policy
and budget decisions that may be required to better assist the
communities. Therefore, we are making a recommendation that DOD
continue to implement our previous recommendation to provide the high-
level leadership necessary to promote interagency coordination, as well
as requiring that the Economic Adjustment Committee includes Guam's
needs in its routine activities supporting defense-affected communities
for the military buildup on Guam.
In commenting on a draft of this report, DOD and the Department of the
Interior agreed with our recommendation. We discuss DOD and the
Department of the Interior's comments later in this report. DOD also
provided technical comments on a draft of this report, which we
incorporated where appropriate. DOD's comments are reprinted in
enclosure II and the Department of the Interior's comments are
reprinted in enclosure III.
Background:
Although several federal agencies assist the Government of Guam to meet
civilian needs to support the military buildup, no single federal
agency or organization is authorized to direct other federal agencies
to make resource allocation decisions. As a result, the Government of
Guam has been independently collaborating with various federal agencies
within DOD, the Department of the Interior, and the Federal Regional
Council--Region IX. We have reported in the past that fragmentation of
federal efforts contributes to difficulties in addressing crosscutting
issues and that interagency coordination is important for ensuring that
crosscutting efforts are mutually reinforcing and efficiently
implemented.[Footnote 6] Figure 1 provides a brief overview of the
different federal agencies and organizations working with the
Government of Guam to help identify and address buildup requirements.
Figure 1: Federal Organizations Assisting Guam:
[Refer to PDF for image: illustration]
* Federal Regional Council, Region IX:
* Department of Defense:
- Office of Economic Adjustment;
- Joint Guam Program Office.
* Department of the Interior:
- Office of Insular Affairs.
* Interagency Group on Insular Areas:
* Guam Interagency Task Force:
Co-chairs:
Joint Guam Program Office (DOD);
Office of Insular Affairs (DOI).
Source: Copyright © Corel Corp. All rights reserved (map); GAO analysis
of information provided by DOD, Department of the Interior, and the
Federal Regional Council.
[End of figure]
The Secretary of the Interior has administrative responsibility for
coordinating federal policy for the insular areas. The Office of
Insular Affairs executes these responsibilities over the insular areas
on behalf of the Secretary of the Interior. The office's involvement in
the military buildup stems from this responsibility. Executive Order
13299 established the IGIA within the Department of the Interior to
provide advice to the President or the Secretary of the Interior
regarding the establishment or implementation of policies concerning
the insular areas including Guam, American Samoa, United States Virgin
Islands, and the Commonwealth of Northern Mariana Islands.[Footnote 7]
The IGIA is comprised of the heads of the executive departments. The
Secretary of the Interior or his designee presides over the IGIA,
determines its agenda, directs its work, and establishes and directs
subgroups of the IGIA.
The IGIA established the Interagency Task Force to bring together the
federal agencies that have a role in supporting Guam. Members of the
Interagency Task Force include representatives of the departments of
State, Agriculture, Health and Human Services, Labor, Justice,
Transportation, Housing and Urban Development, Education, and Veterans
Affairs as well as the Navy, the Small Business Administration, the
Office of Management and Budget, and others. In addition,
representatives from the Government of Guam and several Guam agencies
also participate in some Interagency Task Force meetings. The
Interagency Task Force is co-chaired by the Office of Insular Affairs
and JGPO. The Interagency Task Force consists of five subgroups that
focus on key issue areas including: 1) the environment, 2) socio-
economic factors, 3) infrastructure, 4) labor, and 5) health and human
services. JGPO has thus far provided staffing and oversight of these
subgroups.
DOD has tasked JGPO with the primary responsibility for developing and
implementing the military buildup plans. JGPO is a Navy field office
directed by DOD to facilitate, manage, and execute requirements
associated with the rebasing of Marine Corps assets from Okinawa to
Guam. The office falls under the direct oversight of the Assistant
Secretary of the Navy for Installations and Environment. JGPO's
responsibilities include integration of operational support
requirements; development, program, and budget synchronization;
oversight of the construction; and coordination of government and
business activities. Specifically, JGPO was tasked to lead the
coordinated planning efforts among the DOD components and other
stakeholders to consolidate, optimize, and integrate the existing DOD
infrastructure capabilities on Guam.
The Office of Economic Adjustment is a DOD field activity that reports
to the Deputy Under Secretary of Defense for Installations and
Environment, under the Under Secretary of Defense for Acquisition,
Technology, and Logistics. The office is responsible for facilitating
DOD resources in support of local programs and providing direct
planning and financial assistance to communities and states seeking
assistance to address the impacts of DOD's actions. The Office of
Economic Adjustment's assistance to growth communities is primarily
focused on assisting these communities with organizing and planning for
population growth because of DOD activities, commonly referred to as
"defense-affected" communities.
The Federal Regional Council--Region IX is a consortium of several
separate federal departments which oversee federal activities in
Arizona, California, Hawaii, Nevada, and the Outer Pacific Islands
including Guam. Membership includes regional representatives from the
departments of Agriculture, Commerce, Education, Energy, Health and
Human Services, Homeland Security, Housing and Urban Development,
Justice, Labor, the Interior, Transportation, and Veteran Affairs. The
goal of the Federal Regional Council is for federal departments in
Region IX to work in a coordinated manner in order to make federal
programs more effective and efficient.
Executive Order 12788, as amended, requires the Secretary of Defense,
through the Economic Adjustment Committee, to establish the Defense
Economic Adjustment Program to, in part, assist substantially and
seriously affected communities from the effects of major defense base
closures and realignments and to identify problems of states, regions,
metropolitan areas or communities that result from major defense base
closures and realignments. Executive Order 12788 also states that the
Economic Adjustment Committee shall advise, assist, and support the
program, among other duties (enclosure I contains a copy of the
Executive Order).[Footnote 8] The Secretary of Defense, or his
designee, is the chair of the Economic Adjustment Committee. The
committee is made up of representatives from 22 federal agencies but
the Executive Order gives DOD a leadership role in coordinating
interagency efforts in support of defense-affected communities. The
committee is to ensure, among other things, that communities that are
substantially and seriously affected by DOD actions are aware of
available federal economic adjustment programs; assure coordinated
interagency and intergovernmental adjustment assistance; and serve as a
clearinghouse to exchange information among federal, state, regional,
and community officials involved in the resolution of community
economic problems. Specifically, this Executive Order requires Economic
Adjustment Committee member agencies to support, to the extent
permitted by law, the economic adjustment assistance activities of the
Secretary of Defense, and to afford priority consideration to requests
from defense-affected communities for federal technical assistance and
financial resources.
Interagency Coordination Is Under Way, but the IGIA Is Not Positioned
to Effectively Affect Interagency Budgets:
Although the IGIA has made some efforts at federal collaboration, it is
not well positioned to affect interagency budgets to help ensure that
the realignment of military forces on Guam will meet the fiscal year
2014 completion date because it does not have the authority to direct
other federal agencies' budget decisions. At the same time, while DOD
also does not have the authority to direct other federal agencies'
budget decisions, DOD is positioned to provide high-level leadership on
an interagency basis by virtue of Executive Order 12788, which provides
the department with certain interagency leadership coordination
authorities. For example, under Executive Order 12788, all executive
agencies are to support the economic adjustment assistance activities
of the Secretary of Defense to the extent permitted by law. Other
federal agencies have also provided some assistance to Guam.
The IGIA Has Made Some Efforts to Coordinate Interagency Budgets to
Assist Guam with Its Budgetary Requirements but Cannot Compel Other
Federal Agencies to Act:
The IGIA has made some efforts to coordinate interagency budget
requests to assist Guam with its budgetary requirements related to the
military realignment and buildup through the Interagency Task Force.
The Interagency Task Force has met formally on three occasions since
August 2007 in large, general sessions. The purpose of the Interagency
Task Force is to bring together the federal agencies that have a role
in assisting Guam with the intent to identify Guam's requirements that
extend beyond DOD's responsibilities and authorities and to match these
requirements with appropriate federal resources. JGPO officials stated
that these Interagency Task Force meetings have raised awareness of
potential socio-economic issues in the Guam civilian community that pre-
date the military realignment as well as issues stemming from the
military buildup, and have provided an opportunity for the Government
of Guam to present its requirements to federal agencies. In addition,
according to JGPO officials, the Interagency Task Force subgroups have
met regularly. As a result of this subgroup coordination, JGPO
indicated that the Maritime Administration, the Government of Guam, and
the Port Authority of Guam signed a memorandum of understanding to
solidify a partnership to pursue port improvements critical to enable
construction and support of Guam's long-term needs. In addition, the
Department of the Interior announced $6 million in grants for
improvements to the Guam Community College, the Guam Department of
Public Health and Human Services, and the Guam Memorial Hospital.
Further, JGPO, the Department of the Interior, and the Department of
Labor are working toward a $1 million initiative to build
infrastructure for an apprenticeship program on Guam. The Guam
Department of Labor also received $15,000 in funding from Department of
the Interior to hire a consultant to assist the pursuit of a $250,000
grant from the Department of Labor to address issues of data
collection, needs assessment, and regional workforce leadership
outreach.
While the IGIA can provide some guidance to promote effective
interagency support to Guam, Executive Order 13299 does not compel
executive agency heads to support, to the extent permitted by law,
economic adjustment assistance activities with their available
technical expertise and financial resources in order to assist defense-
affected communities, nor does it direct agencies to afford priority
consideration to such communities' requests for assistance. Rather, the
IGIA is a forum where federal agencies come together and listen to
concerns brought up by the insular areas including Guam. Similarly, an
official from the Office of Insular Affairs noted that high-level
leadership should be provided to ensure interagency coordination since
no single federal organization in the government tracks Guam's needs
stemming from the buildup. In addition, an official of DOD's Office of
Economic Adjustment stated that the administration should support
interagency coordination and whatever mechanism is chosen for such
coordination, whether it is the Interagency Task Force or some other
form, to guarantee that interagency coordination is effective.
DOD Is Positioned to Lead Federal Activities to Assist Defense-Affected
Communities:
Based on a series of presidential executive orders dating back to 1978
and amended as recently as May 2005, it has been long-standing DOD
policy[Footnote 9] that DOD take the leadership role within the federal
government in helping communities respond to the effects of defense-
related activities. The current version of the executive order,
Executive Order 12788, establishes the Economic Adjustment Committee,
which includes the Department of the Interior. It also requires the
Secretary of Defense, through the Economic Adjustment Committee, to
establish a Defense Economic Adjustment Program to, among other things,
assist substantially and seriously affected communities from the
effects of major defense closures and realignments and serve as a
clearinghouse to exchange information among federal, state, and
community officials involved in the resolution of community economic
adjustment problems, including sources of public and private financing.
The Secretary of Defense, or his designee, chairs the committee.
Moreover, the Executive Order requires executive agencies to afford
priority consideration to requests from defense-affected communities
for financial and other assistance. However, the full committee has met
only once since November 2006.
In June 2008, we reported that the Office of the Secretary of Defense
had not provided the leadership necessary to help ensure interagency
and intergovernmental coordination at levels that can make policy and
budgetary decisions to better leverage resources through the Economic
Adjustment Committee. We also reported that in the absence of high-
level leadership from the Office of the Secretary of Defense, DOD's
Office of Economic Adjustment had been proactive in working with
defense-affected communities.[Footnote 10] However, as with the IGIA,
the Office of Economic Adjustment also cannot effectively guide
interagency operations at a high enough level to promote effective
interagency cooperation. Also, in our June 2008 report, we pointed out
that only high-level leadership from the Office of the Secretary of
Defense can marshal the resources of the federal executive departments
and agencies that are members of the Economic Adjustment Committee and
only these high-level federal officials can affect possible policy and
budget decisions that may be required to better assist defense-affected
communities. As a result of this absence of high-level DOD leadership,
we recommended that the Secretary of Defense direct the Under Secretary
of Defense for Acquisition, Technology, and Logistics to implement
Executive Order 12788 by holding regular committee meetings at the full
executive level and serving as a clearinghouse of information for
identifying expected community impacts and problems as well as
identifying resources for providing economic assistance to defense-
affected communities. DOD concurred with the recommendation.
Other Federal Assistance to Address Guam Budgetary Requirements:
In addition to interagency coordination efforts through the IGIA, other
federal offices and organizations have been collaborating with the
Government of Guam to discuss both military and civilian challenges
stemming from the military buildup. DOD has been working with the
Government of Guam mainly through two organizations--JGPO and the
Office of Economic Adjustment. At the same time, the Department of the
Interior's Office of Insular Affairs provides the Government of Guam
with technical assistance, such as providing training opportunities on
how to improve Guam's management of funding as well as some financial
assistance that has primarily been aimed at expediting the buildup
planning process. Moreover, the Federal Regional Council--Region IX is
working with the Government of Guam to identify funding sources in
order to address civilian needs associated with the military buildup.
JGPO, as DOD's coordination point for and co-chair of the Interagency
Task Force, has worked with other federal agencies to identify and
address issues expected to affect Guam as the result of the military
buildup. JGPO and the Department of the Interior have established a
financial stakeholders working group outside of the Interagency Task
Force to help address needs related to the military buildup, identified
by the Government of Guam, with loans and grants available from various
federal agencies. JGPO also held a forum on public safety in Guam in
June 2008 to address concerns over the impacts of the population
increase because of the military buildup. JGPO officials noted that DOD
has attempted to make the Guam buildup a funding priority at the
Cabinet level and across agencies, but, as with the IGIA and DOD's
Office of Economic Adjustment, JGPO cannot guide interagency operations
at a high enough level to promote effective interagency cooperation.
Only high-level leadership from the Secretary of Defense can marshal
the resources of the executive federal agency Economic Adjustment
Committee members and only these high-level federal officials can
affect possible policy and budget decisions.
The Office of Economic Adjustment has provided both technical
assistance and financial assistance to the Government of Guam. Thus
far, the office has provided about $4.5 million in total financial
assistance to help the Government of Guam form a sustainable governance
structure to address the needs arising from the buildup over the next
10 to12 years. In 2007, the office approved grants totaling almost
$590,000 to help sustain the progress and modernization of the Port of
Guam as well as provide logistical support to Government of Guam
officials. In 2008, the office approved around $4 million in grants to
enable the Government of Guam to hire an advisory services firm to
supplement the limited resources within the Office of the Governor, and
develop a Port Implementation Plan. Further, the Government of Guam has
worked through the Office of Economic Adjustment to engage the Federal
Regional Council--Region IX in order to identify other potential
sources of funding to assist with needs stemming from the military
buildup.
As we noted, the Office of Insular Affairs established the Interagency
Task Force, which it co-chairs with JGPO. At the same time, this office
provides the Government of Guam with technical assistance, such as
providing training opportunities on how to improve Guam's management of
funding as well as some financial assistance that has primarily been
aimed at expediting the buildup planning process. Officials from this
office noted that they have assisted the Government of Guam by
reviewing its fiscal year 2010 budget request in anticipation of the
military buildup in order to ensure that the included information was
accurate. In addition, the office also provides financial assistance on
an annual basis to help Guam with issues outside of the military
buildup. For instance, in 2008, the office provided the Guam Department
of Health and Social Services with $500,000 and the Guam Memorial
Hospital Authority with around $5 million.
The Federal Regional Council--Region IX has helped to identify funding
opportunities that may be of assistance to the Government of Guam in
meeting its domestic needs. Federal Regional Council members told us
they have met with representatives from the Government of Guam on four
occasions to discuss issues related to the military buildup. The
Federal Regional Council has developed an "Action Plan for Guam" that
outlines an approach for communication and resource identification for
Guam's funding among member agencies regarding matters related to the
military buildup. Moreover, the Federal Regional Council annually
provides information on the amount of grants it has awarded to the
Government of Guam outside of military buildup requirements. Recently,
the Federal Regional Council established a Guam-Commonwealth of the
Northern Mariana Islands Buildup Task Force focused specifically on
addressing issues related to the military buildup.
Conclusions:
Interagency coordination is important to effectively leverage resources
across agencies and organizations, and our prior work has concluded
that successful collaboration requires commitment by senior officials
in their respective federal agencies.[Footnote 11] The IGIA and federal
departments that make up the Federal Regional Council--Region IX have
had some success in providing assistance to Guam. However, it is only
Executive Order 12788 that directs executive agencies to support, to
the extent permitted by law, the economic adjustment assistance
activities of the Secretary of Defense with their available technical
expertise and financial resources, and to afford priority consideration
to such communities' requests for assistance. Thus, we are not making
any recommendations to the Department of the Interior at this time. On
the other hand, implementation of Executive Order 12788 provides an
interagency approach to coordinating assistance for defense-affected
communities from across the federal government, but ineffective
implementation can risk allowing the needs of defense-affected
communities to go unfulfilled. As a result, quality of life for
military and civilian residents, along with military readiness, could
be degraded. Thus, we recommended in June 2008 that the Secretary of
Defense direct the Under Secretary of Defense for Acquisition,
Technology, and Logistics to implement Executive Order 12788 by holding
regular meetings of the full executive-level Economic Adjustment
Committee, and DOD concurred.
Recommendation for Executive Action:
As DOD implements our June 2008 recommendation, we further recommend
that the Secretary of Defense direct the Under Secretary of Defense for
Acquisition, Technology, and Logistics to ensure that as the Economic
Adjustment Committee meets, as mandated by Executive Order 12788, the
committee should routinely consider Guam's requests for assistance to
support the challenges arising from the military buildup or other
requests as appropriate.
Agency Comments and Our Evaluation:
In written comments on a draft of this report, the Deputy Under
Secretary of Defense (Installations and Environment) agreed with our
recommendation and will ensure Guam's local economic adjustment
requirements, as they are known at the time, are provided for the
Economic Adjustment Committee member agencies' consideration at the
next committee meeting. DOD also provided technical comments, which we
have incorporated where appropriate. The Deputy Under Secretary of
Defense's comments are reprinted in enclosure II.
The Acting Deputy Assistant Secretary for Insular Affairs within the
Department of the Interior strongly supported the purpose and
recommendation of this report. The Acting Deputy Assistant Secretary
also stated that the Department's Office of Insular Affairs does not
have the authority to direct other federal agencies to provide
resources to defense-affected communities or ensure that Guam's budget
requests related to the military buildup become a priority across the
federal government. The official further indicated that he would ensure
the Department of the Interior is able to provide useful information if
called upon by DOD to participate in the Economic Adjustment Committee.
The Acting Deputy Assistant Secretary's comments are reprinted in
enclosure III.
We are sending copies of this report to the appropriate congressional
committees. We are also sending copies to the Secretaries of Defense,
the Interior, Army, Navy, and Air Force; the Commandant of the Marine
Corps; and the Director of the Office of Management and Budget. In
addition, this report will be available at no charge on our Web site at
[hyperlink, http://www.gao.gov]. If you or your staff have any
questions, about this report, please contact me at (202) 512-4523 or
leporeb@gao.gov. Contact points for our Offices of Congressional
Affairs may be found on the last page of this report. GAO staff who
made major contributions to this report are listed in enclosure IV.
Signed by:
Brian J. Lepore, Director:
Defense Capabilities and Management:
List of Committees:
The Honorable Carl Levin:
Chairman:
The Honorable John McCain:
Ranking Member:
Armed Services Committee:
United States Senate:
The Honorable Daniel Inouye:
Chairman:
The Honorable Thad Cochran:
Ranking Member:
Subcommittee on Defense:
Committee on Appropriations:
United States Senate:
The Honorable Ike Skelton:
Chairman:
The Honorable John McHugh:
Ranking Member:
Armed Services Committee:
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:
[End of section]
Enclosure I: Executive Order 12788 As Amended:
Defense Economic Adjustment Program:
By the authority vested in me as President by the Constitution and the
laws of the United States of America, including 10 U.S.C. 2391 and the
Defense Economic Adjustment, Diversification, Conversion, and
Stabilization Act of 1990, enacted as Division D, section 4001 et seq.,
of the National Defense Authorization Act for Fiscal Year 1991, Public
Law 101-510, and to provide coordinated Federal economic adjustment
assistance necessitated by changes in Department of Defense activities,
it is hereby ordered as follows:
Section 1. Function of the Secretary of Defense. The Secretary of
Defense shall, through the Economic Adjustment Committee, design and
establish a Defense Economic Adjustment Program.
Sec. 2. The Defense Economic Adjustment Program shall (1) assist
substantially and seriously affected communities, businesses, and
workers from the effects of major Defense base closures, realignments,
and Defense contract-related adjustments, and (2) assist State and
local governments in preventing the encroachment of civilian
communities from impairing the operational utility of military
installations.
Sec. 3 Functions of the Defense Economic Adjustment Program. The
Defense Adjustment Program shall:
(a) Identify problems of States, regions, metropolitan areas, or
communities that result from major Defense base closures, realignments,
and Defense contract-related adjustments, and the encroachment of the
civilian community on the mission of military installations and that
require Federal assistance;
(b) Use and maintain a uniform socioeconomic impact analysis to justify
the use of Federal economic adjustment resources prior to particular
realignments;
(c) Apply consistent policies, practices, and procedures in the
administration of Federal programs that are used to assist Defense-
affected States, regions, metropolitan areas, communities, and
businesses;
(d) Identify and strengthen existing agency mechanisms to coordinate
employment opportunities for displaced agency personnel;
(e) Identify and strengthen existing agency mechanisms to improve
reemployment opportunities for dislocated Defense industry personnel;
(f) Assure timely consultation and cooperation with Federal, State,
regional, metropolitan, and community officials concerning Defense-
related impacts on Defense-affected communities' problems;
(g) Assure coordinated interagency and intergovernmental adjustment
assistance concerning Defense impact problems;
(h) Prepare, facilitate, and implement cost-effective strategies and
action plans to coordinate interagency and intergovernmental economic
adjustment efforts;
(i) Encourage effective Federal, State, regional, metropolitan, and
community cooperation and concerted involvement of public interest
groups and private sector organizations in Defense economic adjustment
activities;
(j) Serve as a clearinghouse to exchange information among Federal,
State, regional, metropolitan, and community officials involved in the
resolution of community economic adjustment problems. Such information
may include, for example, previous studies, technical information, and
sources of public and private financing;
(k) Assist in the diversification of local economies to lessen
dependence on Defense activities;
(l) Encourage and facilitate private sector interim use of lands and
buildings to generate jobs as military activities diminish;
(m) Develop ways to streamline property disposal procedures to enable
Defense-impacted communities to acquire base property to generate jobs
as military activities diminish; and:
(n) Encourage resolution of regulatory issues that impede encroachment
prevention and local economic adjustment efforts.
Sec. 4. Economic Adjustment Committee.
(a) Membership. The Economic Adjustment Committee ("Committee") shall
be composed of the following individuals or a designated principal
deputy of these individuals, and such other individuals from the
executive branch as the President may designate. Such individuals shall
include the:
(1) Secretary of Agriculture;
(2) Attorney General;
(3) Secretary of Commerce;
(4) Secretary of Defense;
(5) Secretary of Education;
(6) Secretary of Energy;
(7) Secretary of Health and Human Services;
(8) Secretary of Housing and Urban Development;
(9) Secretary of Interior;
(10) Secretary of Labor;
(11) Secretary of State;
(12) Secretary of Transportation;
(13) Secretary of Treasury;
(14) Secretary of Veterans Affairs;
(15) Secretary of Homeland Security;
(16) Chairman, Council of Economic Advisers;
(17) Director of the Office of Management and Budget;
(18) Director of the Office of Personnel Management;
(19) Administrator of the Environmental Protection Agency;
(20) Administrator of General Services;
(21) Administrator of the Small Business Administration; and:
(22) Postmaster General.
(b) The Secretary of Defense, or the Secretary's designee, shall chair
the Committee.
(c) The Secretaries of Labor and Commerce shall serve as Vice Chairmen
of the Committee. The Vice Chairmen shall co-chair the Committee in the
absence of both the Chairman and the Chairman's designee and may also
preside over meetings of designated representatives of the concerned
executive agencies.
(d) Executive Director. The head of the Department of Defense's Office
of Economic Adjustment shall provide all necessary policy and
administrative support for the Committee and shall be responsible for
coordinating the application of the Defense Economic Adjustment Program
to Department of Defense activities.
(e) Duties. The Committee shall:
(1) Advise, assist, and support the Defense Economic Adjustment
Programs;
(2) Develop procedures for ensuring that State, regional, and community
officials, and representatives of organized labor in those States,
municipalities, localities, or labor organizations that are
substantially and seriously affected by changes in Defense
expenditures, realignments or closures, or cancellation or curtailment
of major Defense contracts, are notified of available Federal economic
adjustment programs; and:
(3) Report annually to the President and then to the Congress on the
work of the Economic Adjustment Committee during the preceding fiscal
year.
Sec. 5. Responsibilities of Executive Agencies.
(a) The head of each agency represented on the Committee shall
designate an agency representative to:
(1) Serve as a liaison with the Secretary of Defense's economic
adjustment staff;
(2) Coordinate agency support and participation in economic adjustment
assistance projects; and:
(3) Assist in resolving Defense-related impacts on Defense-affected
communities.
(b) All executive agencies shall:
(1) Support, to the extent permitted by law, the economic adjustment
assistance activities of the Secretary of Defense. Such support may
include the use and application of personnel, technical expertise,
legal authorities, and available financial resources. This support may
be used, to the extent permitted by law, to provide a coordinated
Federal response to the needs of individual States, regions,
municipalities, and communities adversely affected by necessary Defense
changes; and:
(2) Afford priority consideration to requests from Defense-affected
communities for Federal technical assistance, financial resources,
excess or surplus property, or other requirements, that are part of a
comprehensive plan used by the Committee.
Sec. 6. Judicial Review. This order shall not be interpreted to create
any right or benefit, substantive or procedural, enforceable at law by
a party against the United States, its agencies, its officers, its
agents, or any person.
Sec. 7. Construction. (a) Nothing in this order shall be construed as
subjecting any function vested by law in, or assigned pursuant to law
to, any agency or head thereof to the authority of any other agency or
officer or as abrogating or restricting any such function in any
manner.
(b) This order shall be effective immediately and shall supersede
Executive Order No 12049.
George Bush:
The White House:
January 15, 1992.
[Amended 2/28/03 by President George W. Bush, E.O. 13286]
[Amended 5/12/05 by President George W. Bush, E.O. 13378]
[End of section]
Enclosure II: Comments from the Department of Defense:
Office Of The Under Secretary Of Defense:
Acquisition Technology And Logistics:
3000 Defense Pentagon:
Washington, DC 20301-3000:
April 8, 2009:
Mr. Brian J. Lepore:
Director, Defense Capabilities and Management:
U.S. Government Accountability Office:
441 G Street, N.W.
Washington, DC 20548:
Dear Mr. Lepore:
This is the Department of Defense (DoD) response to the GAO draft
report, GAO-09-500R, "Defense Infrastructure: High-Level Leadership
Needed to Help Guam Address Challenges Caused by DoD-Related Growth,"
dated March 31, 2009 (GAO Code 351301). Detailed comments on the report
recommendations are enclosed.
The Department appreciates the opportunity to comment on this draft
report and concurs with the GAO's recommendations concerning the
Economic Adjustment Committee (EAC), specifically at the next EAC
meeting, the Department will ensure Guam's local economic adjustment
requirements, as they are known at the time, are provided for the EAC
member agencies' consideration.
The Interagency Group on Insular Areas (IGIA) is responsible for
coordination of budgetary requests to assist the Government of Guam.
Additionally, the Federal Interagency Task Force on the Guam Military
Buildup which is co-chaired by the Joint Guam Program Office (JGPO) and
the Office of Insular Affairs has been established to address these
issues and will continue to be the focal point for the Department.
We continue to appreciate audit work performed by the GAO but note the
compressed time it provided for the Department's review of this report.
Sincerely,
Signed by:
Wayne Arny:
Deputy Under Secretary of Defense (Installations and Environment):
Enclosure: As stated:
GAO Draft Report - Dated March 31, 2009:
GAO Code 351301/GAO-09-500R:
"Defense Infrastructure: High-Level Leadership Needed to Help Guam
Address Challenges Caused by DoD-Related Growth"
Department Of Defense Comments To The Recommendation:
Recommendation 1: The GAO recommends that the Secretary of Defense
direct the Under Secretary for Acquisition, Technology, and Logistics
to ensure that as the Economic Adjustment Committee meets, as mandated
by Executive Order 12788, the committee should routinely consider
Guam's requests for assistance to support the challenges arising from
the military buildup or other requests as appropriate.
DOD Response: Concur. At the next EAC meeting, the Department will
ensure Guam's local economic adjustment requirements, as they are known
at the time, are provided for the EAC member agencies' considerations.
[End of section]
Enclosure III: Comments from the Department of the Interior:
United States Department of the Interior:
Office Of The Secretary:
Washington, DC 20240:
April 2, 2009:
Brian J. Lepore:
Director, Defense Capabilities and Management:
U.S. Government Accountability Office:
Washington, DC 20548:
Dear Mr. Lepore:
Thank you for the opportunity to respond to the U.S. Government
Accountability Office (GAO) draft report entitled Defense
Infrastructure: High-Level Leadership Needed to Help Guam Address
Challenges Caused by DOD-Related Growth" (GAO-09-500R) (Report).
I strongly support the purpose and recommendation of this Report, and
look forward to receiving it in its final form. Your acknowledgment of
the assistance that the Department of the Interior has provided is
appreciated, and I concur that the Department's Office of Insular
Affairs does not have the authority to direct other federal agencies to
provide resources to defense-affected communities or ensure that Guam's
budget requests related to the military buildup become a priority
across the federal government.
I will help ensure that, if called upon by the Department of Defense to
participate in the Economic Adjustment Committee, the Department of the
Interior is able to provide useful information.
If you wish to discuss the Report, please communicate with me at (202)
208-6816. Or you may wish to have your staff communicate with Joseph
McDermott, OIA's Director of Policy, at 202-208-4736.
Sincerely,
Signed by:
Nikolao I. Pula, Jr.
Acting Deputy Assistant Secretary for Insular Affairs:
[End of section]
Enclosure IV: GAO Contact and Staff Acknowledgments:
GAO Contact:
Brian Lepore, (202) 512-4523 or leporeb@gao.gov:
Acknowledgments:
In addition to the person named above, Harold Reich, Assistant
Director; Jerome Brown; Amy Frazier; Katherine Lenane; Josh Margraf;
and Richard Meeks made key contributions to this report.
[End of section]
Related GAO Products:
Defense Infrastructure: Opportunity to Improve the Timeliness of Future
Overseas Planning Reports and Factors Affecting the Master Planning
Effort for the Military Buildup on Guam. [hyperlink,
http://www.gao.gov/products/GAO-08-1005]. Washington, D.C.: September
17, 2008.
Defense Infrastructure: High-Level Leadership Needed to Help
Communities Address Challenges Caused by DOD-Related Growth.
[hyperlink, http://www.gao.gov/products/GAO-08-665]. Washington, D.C.:
June 17, 2008.
Defense Logistics: Navy Needs to Develop and Implement a Plan to Ensure
that Voyage Repairs are Available to Ships Operating Near Guam When
Needed. [hyperlink, http://www.gao.gov/products/GAO-08-427].
Washington, D.C.: May 12, 2008.
Defense Infrastructure: Planning Efforts for the Proposed Military
Buildup on Guam Are in Their Initial Stages, with Many Challenges Yet
to Be Addressed. [hyperlink, http://www.gao.gov/products/GAO-08-722T].
Washington, D.C.: May 1, 2008.
Defense Infrastructure: Challenges Increase Risks for Providing Timely
Infrastructure Support for Army Installations Expecting Substantial
Personnel Growth. [hyperlink, http://www.gao.gov/products/GAO-07-1007].
Washington, D.C.: September 13, 2007.
Defense Infrastructure: Overseas Master Plans Are Improving, but DOD
Needs to Provide Congress Additional Information about the Military
Buildup on Guam. [hyperlink, http://www.gao.gov/products/GAO-07-1015].
Washington, D.C.: September 12, 2007.
U.S. Insular Areas: Economic, Fiscal, and Financial Accountability
Challenges. [hyperlink, http://www.gao.gov/products/GAO-07-119].
Washington, D.C.: December 12, 2006.
DOD's Overseas Infrastructure Master Plans Continue to Evolve.
[hyperlink, http://www.gao.gov/products/GAO-06-913R]. Washington, D.C.:
August 22, 2006.
U.S. Insular Areas: Multiple Factors Affect Federal Health Care
Funding. [hyperlink, http://www.gao.gov/products/GAO-06-75].
Washington, D.C.: October 14, 2005.
Results-Oriented Government: Practices That Can Help Enhance and
Sustain Collaboration among Federal Agencies. [hyperlink,
http://www.gao.gov/products/GAO-06-15]. Washington, D.C.: Oct. 21,
2005.
Opportunities Exist to Improve Future Comprehensive Master Plans for
Changing U.S. Defense Infrastructure Overseas. [hyperlink,
http://www.gao.gov/products/GAO-05-680R]. Washington, D.C.: June 27,
2005.
Results-Oriented Government: GPRA Has Established a Solid Foundation
for Achieving Greater Results. [hyperlink,
http://www.gao.gov/products/GAO-04-38]. Washington, D.C.: March 10,
2004.
Environmental Cleanup: Better Communication Needed for Dealing with
Formerly Used Defense Sites in Guam. [hyperlink,
http://www.gao.gov/products/GAO-02-423]. Washington, D.C.: April 11,
2002.
Compact of Free Association: Negotiations Should Address Aid
Effectiveness and Accountability and Migrants' Impact on U.S. Areas.
[hyperlink, http://www.gao.gov/products/GAO-02-270T]. Washington, D.C.:
December 6, 2001.
Foreign Relations: Migration From Micronesian Nations Has Had
Significant Impact on Guam, Hawaii, and the Commonwealth of the
Northern Mariana Islands. [hyperlink,
http://www.gao.gov/products/GAO-02-40]. Washington, D.C.: October 5,
2001.
Overseas Presence: Issues Involved in Reducing the Impact of the U.S.
Military Presence on Okinawa. [hyperlink,
http://www.gao.gov/products/GAO/NSIAD-98-66]. Washington, D.C.: March
2, 1998.
U.S Insular Areas: Development Strategy and Better Coordination Among
U.S. Agencies Are Needed. [hyperlink,
http://www.gao.gov/products/GAO/NSIAD-94-62]. Washington, D.C.:
February 7, 1994.
[End of section]
Footnotes:
[1] GAO, Defense Infrastructure: Planning Efforts for the Proposed
Military Buildup on Guam Are in Their Initial Stages, with Many
Challenges Yet to Be Addressed, [hyperlink,
http://www.gao.gov/products/GAO-08-722T] (Washington, D.C.: May 1,
2008).
[2] Military Buildup on Guam: Hearing before the Senate Committee on
Energy and Natural Resources, 110th Congress, 2nd Session (2008)
(Statement of Felix P. Camacho, Governor of Guam).
[3] [hyperlink, http://www.gao.gov/products/GAO-08-722T].
[4] Pub. L. No. 110-417, § 2822(b) (2008). Specifically, section
2822(b) requires our report to address the extent to which and how the
IGIA will be able to coordinate interagency budgets so the realignment
of military forces on Guam will meet the fiscal year 2014 completion
date.
[5] Exec. Order No. 12049, 43 Fed. Reg. 13363 (Mar. 27, 1978), as
superseded by Exec. Order No. 12788, 57 Fed. Reg. 2213 (Jan. 21, 1992),
as amended.
[6] GAO, Results-Oriented Government: GPRA Has Established a Solid
Foundation for Achieving Greater Results, [hyperlink,
http://www.gao.gov/products/GAO-04-38] (Washington, D.C.: Mar. 10,
2004).
[7] Other responsibilities of the IGIA include obtaining information
and advice from governors of the insular areas, other elected officials
in the insular areas, and other entities in a manner that seeks their
individual advice and does not involve collective judgment or consensus
advice or deliberation, and holding meetings at least once each year of
the governors of the insular areas who may wish to attend.
[8] Exec. Order No. 12049, 43 Fed. Reg. 13363 (Mar. 27, 1978), as
superseded by Exec. Order No. 12788, 57 Fed. Reg. 2213 (Jan. 21, 1992),
as amended.
[9] With the issuance of Executive Order 12049 in March 1978, the
President recognized that changes in DOD activities necessitated a
coordinated approach for federal economic assistance. The order
specified that DOD, working with the Economic Adjustment Committee
(EAC), had the lead role in conducting various efforts designed to
assist in the alleviation of serious economic adjustment impacts that
result from major defense realignments. Executive Order 12788, issued
in January 1992, subsequently superseded the prior order but continued
the intent for the federal government to play a role through the EAC in
providing assistance to defense-impacted communities. Executive Order
13286 was issued in February 2003 to update the membership while
Executive Order 13378 was issued in May 2005 to change the EAC chair
from rotating among DOD, Labor, and Commerce to only be chaired by DOD.
[10] GAO, Defense Infrastructure: High-Level Leadership Needed to Help
Communities Address Challenges Caused by DOD-Related Growth,
[hyperlink, http://www.gao.gov/products/GAO-08-665] (Washington, D.C.:
June 17, 2008).
[11] GAO, Results-Oriented Government: Practices That Can Help Enhance
and Sustain Collaboration among Federal Agencies, [hyperlink,
http://www.gao.gov/products/GAO-06-15] (Washington, D.C.: Oct. 21,
2005).
[End of section]
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