TSA's Management of Secure 1000SP Advanced Imaging
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Department of Homeland Security 2IÀFH RI ,QVSHFWRU *HQHUDO TSA’s Management of Secure 1000SP Advanced Imaging Technology Units OIG-14-138 September 2014
Transcript of TSA's Management of Secure 1000SP Advanced Imaging
Department of Homeland Security2IAgraveFHRIQVSHFWRUHQHUDO
TSArsquos Management of Secure 1000SP Advanced Imaging Technology Units
OIG-14-138 September 2014
September 10 2014
TableofContents ExecutiveSummary 1 Background 2 ResultsofReview 3
CostsforSecure1000SPUnitsandSupportServicesTotaled$416537023 CoststoDeploySecure1000SPUnitsCouldNotBeDetermined3 RapiscanSystemsPaidtoRemoveSanitizeandWarehouseTSArsquosSecure 1000SPInventory 4 TSACompliedwithPropertyTransferRegulations5 TSAHasDonated165Secure1000SPUnitstoOtherGovernmentEntities6 VerificationofTSArsquosSecure1000SPInventory7
Appendixes
AppendixAObjectivesScopeandMethodology10 AppendixBManagementCommentstotheDraftReport11 AppendixCSecure1000SPUnitsDonatedtoStatePropertySurplus AgenciesandLocalLawEnforcementAgencieshelliphelliphellip12 AppendixDMajorContributorstoThisReport14 AppendixEReportDistribution15
Abbreviations
AIT advancedimagingtechnology ATR automatictargetingrecognition DHS DepartmentofHomelandSecurity GSA GeneralServicesAdministration OIG OfficeofInspectorGeneral TSA TransportationSecurityAdministration TSIF TransportationSecurityIntegrationFacility
wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ExecutiveSummary ThemissionoftheTransportationSecurityAdministration(TSA)istosecurethenationrsquos transportationsystemandensurethefreedomofmovementforpeopleandcommerce In2007TSAbegandeployingadvancedimagingtechnologytoscreenairlinepassengers forweaponsexplosivesandotherconcealedobjectsIn2009and2010TSAused AmericanRecoveryandReinvestmentActfundstopurchase251Secure1000SP advancedimagingtechnologyunitsfromRapiscanSystemsByJune2013TSAhad removedtheunitsfromservicebecausethecompanycouldnotdevelopenhanced softwaretoenabletheunitstocomplywiththeprivacyrequirementsoftheFAA ModernizationandReformActof2012RapiscanSystemsassumedallcostsassociated withtheirremovalandstorage InMay2013RepresentativeBennieThompsonrequestedthatwereviewTSArsquos managementofitsadvancedimagingtechnologyinventorySpecificallyMrThompson requestedthatwereviewtheremovalandpotentialredistributionofthenoncompliant unitsandrelatedcosts TSApurchased251unitsandtechnicalsupportservicesfor$41653702HoweverTSA wasunabletodeterminethedeploymentcostfortheunitsbecausethetaskorders useddonotsegregateindividualcostsTSAcompliedwithpropertytransferregulations forthe251unitsAsofAugust292014TSAtransferred165unitstootherFederal stateandlocallawenforcementagencies DuringourfieldworkwedeterminedthatTSAandRapiscanSystemsmaynothave sanitizedsensitivesecurityinformationfromoneunitrsquoscomputersystempriorto donatingittoastateagencyWepromptlyinformedTSAprogramofficialsaboutthe possiblesecurityconcernOneweeklateraTSAofficialtraveledtothestateagencyrsquos warehouseandremovedtheunitrsquosharddrive
1 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Background TSArsquosmissionistosecurethenationrsquostransportationsystemandensurethefreedomof movementforpeopleandcommerceTSAconductscheckpointscreeningoperationsat federalizedairportsIn2007TSAbegandeployingadvancedimagingtechnology(AIT)to screenairlinepassengersforweaponsexplosivesandotherconcealedobjectswithout physicalcontactfromaTransportationSecurityOfficer OneAITmodelTSAdeployedforpassengerscreeningwastheSecure1000SP manufacturedbyRapiscanSystems(seefigure1)TheseunitsuselowͲlevelxͲraybeams toprojectadetailedimageofapassengerrsquosbodyonamonitorThiscreatedprivacy concernsamongtravelersandmembersofCongress Figure1Secure1000SPUnit
SourceRapiscanSystems InAugust2010TSAorderedautomatictargetingrecognition(ATR)softwarefrom RapiscanSystemsforalltheSecure1000SPunitsThissoftwareenhancesprivacyby interpretingtheimageofapassengerrsquosbodyanddisplayingtheresultsonageneric bodyfigureTSAbegantestingRapiscanSystemsrsquoATRsoftwareinOctober2010 TheFAAModernizationandReformActof2012privacyrequirementsmandatedthat TSAensureAITusedforpassengerscreeningbeequippedwithATRsoftwareHowever thecompanyrsquosATRsoftwaredidnotpassTSArsquostestingandevaluationprocessIn
2 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
January2013theTSAAdministratordirectedtheremovalofallSecure1000SPunits fromairportsbecausetheycouldnotcomplywiththeFAAModernizationandReform ActrsquosprivacyrequirementsBecauseitwasunabletodevelopandsuccessfullytestATR RapiscanSystemsagreedtoassumeallcostsassociatedwiththeremovalshipping sanitizationofsensitiveinformationandstorageoftheunits ResultsofReview
CostsforSecure1000SPUnitsandSupportServicesTotaled$41653702
TitleVIoftheAmericanRecoveryandReinvestmentActauthorizedprocurement andinstallationofcheckedbaggageexplosivesdetectionsystemsandcheckpoint explosivesdetectionequipmentIn2009and2010TSAusedfundsunderthis authoritytopurchase251Secure1000SPunitsfromRapiscanSystemsfor $40077571TSAalsopurchasedtechnicalsupportservicestotaling$1576131 Thesupportservicesincluded
x anoperatortrainingcourse x aninstructortrainingcourse x anAITtrainingsimulator x engineeringandtechnicalsupportand x AITinstallationandmaintenance
CostsToDeploySecure1000SPUnitsCouldNotBeDetermined
TSAusesgovernmentcontractorstodeployairportsecurityequipmentTSA enteredintoanindefinitedeliveryindefinitequantitycontracttopurchase detectionsystemsequipmentandrelateddeploymentservicesThistypeof contractprovidesforanindefinitequantityofsuppliesorservicesoverafixed periodoftimeTSAsubmittedtaskordersforvariousAITunitsandservicesto includetheSecure1000SPunitsenhancedmetaldetectorsexplosivesdetection systemsandbaggagescreeningtechnology TSAcouldnotdeterminethecosttodeploySecure1000SPunitsbecausetask ordersdidnotsegregatecostsbutincludedatotalamountforvarioustypesof airportsecurityequipmentandtechnologydeployedInadditionthecostto deploySecure1000SPunitsincludedshipmenttothedesignatedairportfrom theTSALogisticsCenterinTexasthatisusedtostorescreeningequipment
3 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Deploymentcostsalsoincludedanyrequiredmodificationstoexisting checkpointareas TSAdeployed250ofthe251unitstoairportsTSAplacedtheremainingunitat theTransportationSecurityIntegrationFacility(TSIF)atReaganNationalAirport whereTSAconductsongoingtestingandevaluationofnewsecurityscreening systems RapiscanSystemsPaidToRemoveSanitizeandWarehouseTSArsquosSecure 1000SPInventory
AfterRapiscanSystemswasunabletodevelopandsuccessfullytestATR softwareitagreedtoassumeallcostsassociatedwith(1)removingtheunits fromtheairports(2)shippingunitstoaRapiscanSystemswarehouse (3)sanitizingsensitiveinformationand(4)storingtheSecure1000SPunitsuntil December2017
FromFebruarytoJune2013RapiscanSystemsrelocatedAITunitsfromairports toitsstoragefacilitylocatedinGarnerNorthCarolinaOneunitremainedatthe TSIFforuseinaradiationstudybytheNationalAcademyofSciencesOnAugust 62014RapiscanSystemsrelocatedthisunittoitsstoragefacilityinNorth Carolina TSADidNotHaveaSanitizationCertificateforOneUnit
TheTSAInformationAssuranceHandbookDecember2011andDepartmentof HomelandSecurity(DHS)SensitiveSystemsPolicyDirective4300ArequireTSAto sanitizeinformationsystemscontainingsensitiveinformationpriortothe disposalreuserecyclingortransferofcustodytoanyentityATSAwitness mustverifythesanitizationofsensitiveinformationInadditiontheTSAwitness andtheindividualperformingthesanitizationmustcertifyonTSAForm1412 MediaSanitizationCertificatetheremovalofsensitiveinformationfromthe
equipment
WereviewedMediaSanitizationCertificatesandsupportingdocumentationfor the250unitstransferredtoRapiscanSystemsrsquostoragefacilityTSAdidnothave documentationverifyingthatRapiscanSystemssanitizedsensitiveinformation fromoneoftheSecure1000SPunitsbeforeitwasdonatedtotheStateofNorth CarolinarsquosDivisionofSurplusPropertyonSeptember52013
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OnMay142014weprovidedTSAwiththeserialnumberoftheunitforwhich itdidnothavesanitizationdocumentationTSAtookimmediateactionto mitigatethesecurityconcernandconfirmedthattheunitwasinawarehousein RaleighandthattheStateofNorthCarolinahadnotusedtheunitOnMay21 2014aTSATransportationEquipmentPropertyAdministratorandaRapiscan SystemstechnicianwenttotheNorthCarolinaDivisionofSurplusProperty warehouseandremovedtheunitrsquosharddrivefordestructionTSAprovidedthe MediaSanitizationCertificateconfirmingthatithadsanitizedtheunit TSACompliedwithPropertyTransferRequirements
TSArsquosdirectivesandregulationsthatgovernthetransferofpropertyarebased on41CFR101FederalPropertyManagementRegulationsand41CFR102 FederalManagementRegulationSpecificallyTSAManagementDirective20057 andDHSManagementDirective0565containpoliciesandprocedurestoprocess anddisposeofexcesspersonalproperty1WefoundthatTSAcompliedwith federalpropertytransferregulations TheGeneralServicesAdministration(GSA)hasdiscretionaryauthorityto prescribethenecessaryguidelinesforFederalagenciestoproperlydisposeof excesspersonalpropertyGSArsquosguidelinesrequirethatTSAdisposeofexcess personalpropertyby
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
x conductinganinternalscreeningandtransferringpropertytoanother
componentwithinTSAorDHS x transferringexcesspersonalpropertytoanotherFederalagencywithout
GSAapprovaliftotalacquisitioncostisnomorethan$10000perline item
x reportingexcesspersonalpropertytoGSA x conducting21Ͳdayscreening x offeringpersonalpropertytostateandlocalagenciesandorganizations x sellingittothepublic(ifeligible)and x abandoningdestroyingorrecyclingexcesspersonalproperty
1TSAdefinesexcesspersonalpropertyaspropertythatisnolongerrequiredtoaccomplishitsmission TSAdefinespersonalpropertyasalltangibleassetswiththeexceptionofrecordsandrealproperty whichareownedcontrolledorheldbytheagency
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OnFebruary282013TSApostedtheunitsontheDHSAssetManagement SystemgivingDHScomponentspriorityandtheopportunitytosearchandselect theequipmentTSAlistedtheunitsontheDepartmentrsquosAssetManagement Systemfor15days OnMarch152013TSAreportedtheunitsasexcesspropertytoGSAthrough GSAXcessGSAXcessisawebsitethatprovidesagencieswithameansof reportingtoandprocuringexcesspersonalpropertyfromGSAelectronically OnceTSAreportedtheunitstoGSAFederalagenciesotherthanDHShad21 daystoselectanyunitsAttheendofthe21ͲdayperiodGSAdeclaredany unclaimedunitsassurpluspersonalproperty2 GSAofferedtheunitstostateandlocalagenciesfordonationStateandlocal agencieshad5daystosearchandallocateunitsasneededNormallyifnostate orlocalgovernmentagencyexpressesinterestinthepropertyafterthe5Ͳday allocationperiodexpiresGSAoffersthepropertyforsaletootherqualified recipientsForsecurityreasonsTSAchosenottooffertheSecure1000SPunits forsaletothegeneralpublicInsteadTSAaskedGSAtocontinueofferingthe unitstostateandlocalagenciesbyrepostingonGSAXcess SinceMay2013theSecure1000SPunitshavebeenavailabletostateandlocal governmentagenciesTSAwillcontinuetooffertheunitsonGSAXcessWhen TSAdeterminesthatthereisnofurtherdemandorRapiscanSystemsrsquoobligation tostoretheunitsendsTSAwilldestroytheremainingunits TSADonated165Secure1000SPUnitstoOtherGovernmentEntities
AsofAugust292014TSAdonated165Secure1000SPunitstootherFederal agenciesandstateandlocalentitiesTheUnitedStatesSecretServiceandthe NationalInstituteofStandardsandTechnologyeachacquiredoneunitThe UnitedStatesMintacquiredtwounitsStatepropertysurplusagenciesandlocal lawenforcementagenciesacquiredatotalof161units(seeappendixC)
TSApublicizedtheavailabilityoftheexcesspropertyForexampleTSAinformed allFederalNationalUtilizationOfficersandtheNationalAssociationforState AgenciesforSurplusPropertythatTSArsquosSecure1000SPunitswereavailablefor
2SurpluspersonalpropertymeansexcesspropertynolongerrequiredbyFederalagenciesasdetermined byGSA
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OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
donation3AdditionallyatTSArsquosrequestGSApostedtheunitsonthefrontpage oftheGSAXcesssystemforincreasedvisibility RapiscanSystemshasinformedothergovernmentagenciesabouttheavailable unitsRapiscanexecutivesreportedthatthecompanyutilizesitssalesstaffto advisestateandlocalgovernmentcustomersaboutacquiringSecure1000SP unitsthroughGSAXcessRapiscanalsooffersdiscountedmaintenancepackages VerificationofTSArsquosSecure1000SPInventory
ToverifyTSArsquoscurrentSecure1000SPinventorywecomparedlistsofserial numbersprovidedbyTSAandRapiscanSystemsforallunitsTSApurchasedWe crossͲcheckedthesewithpurchaseordersandshippingdocumentsand determinedthattheserialnumberswereaccurateAdditionallyTSAprovideda listofserialnumbersfor144unitsthatweredonatedtootherFederalstate andlocallawenforcementagencies OnMarch192014wevisitedtheTSIFtoreconciletheserialnumberforone unitAsnotedearliertheNationalAcademyofScienceswasusingthisunitina radiationstudyOnMarch272014wevisitedaRapiscanSystemsproduction facilitytoinventorySecure1000SPunitsatthelocationandverifytheirserial numbersThefacilityhadcontrolledaccessand24ͲhoursecurityTheunitswere storedinafencedinareaasshowninfigure2ThefencewasinstalledonMarch 262014
3FederalNationalUtilizationOfficersarepropertyofficerswithineachFederalagencywhocoordinate withGSAtoprovideuseraccessibilitytotheGSAXcessFederaldisposalandscreeningsystem
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OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure2Secure1000SPunitsinRapiscanSystemsrsquostoragefacility
Weaccountedforall106Secure1000SPunitsandfoundnodiscrepancieswith theserialnumbersRapiscanSystemspersonnelunpackedtheunitssowecould verifytheserialnumbersFigure3showsthetwolargecratesandonesmall cratethatmakeuponecompleteunit
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OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
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AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
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OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
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AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
September 10 2014
TableofContents ExecutiveSummary 1 Background 2 ResultsofReview 3
CostsforSecure1000SPUnitsandSupportServicesTotaled$416537023 CoststoDeploySecure1000SPUnitsCouldNotBeDetermined3 RapiscanSystemsPaidtoRemoveSanitizeandWarehouseTSArsquosSecure 1000SPInventory 4 TSACompliedwithPropertyTransferRegulations5 TSAHasDonated165Secure1000SPUnitstoOtherGovernmentEntities6 VerificationofTSArsquosSecure1000SPInventory7
Appendixes
AppendixAObjectivesScopeandMethodology10 AppendixBManagementCommentstotheDraftReport11 AppendixCSecure1000SPUnitsDonatedtoStatePropertySurplus AgenciesandLocalLawEnforcementAgencieshelliphelliphellip12 AppendixDMajorContributorstoThisReport14 AppendixEReportDistribution15
Abbreviations
AIT advancedimagingtechnology ATR automatictargetingrecognition DHS DepartmentofHomelandSecurity GSA GeneralServicesAdministration OIG OfficeofInspectorGeneral TSA TransportationSecurityAdministration TSIF TransportationSecurityIntegrationFacility
wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ExecutiveSummary ThemissionoftheTransportationSecurityAdministration(TSA)istosecurethenationrsquos transportationsystemandensurethefreedomofmovementforpeopleandcommerce In2007TSAbegandeployingadvancedimagingtechnologytoscreenairlinepassengers forweaponsexplosivesandotherconcealedobjectsIn2009and2010TSAused AmericanRecoveryandReinvestmentActfundstopurchase251Secure1000SP advancedimagingtechnologyunitsfromRapiscanSystemsByJune2013TSAhad removedtheunitsfromservicebecausethecompanycouldnotdevelopenhanced softwaretoenabletheunitstocomplywiththeprivacyrequirementsoftheFAA ModernizationandReformActof2012RapiscanSystemsassumedallcostsassociated withtheirremovalandstorage InMay2013RepresentativeBennieThompsonrequestedthatwereviewTSArsquos managementofitsadvancedimagingtechnologyinventorySpecificallyMrThompson requestedthatwereviewtheremovalandpotentialredistributionofthenoncompliant unitsandrelatedcosts TSApurchased251unitsandtechnicalsupportservicesfor$41653702HoweverTSA wasunabletodeterminethedeploymentcostfortheunitsbecausethetaskorders useddonotsegregateindividualcostsTSAcompliedwithpropertytransferregulations forthe251unitsAsofAugust292014TSAtransferred165unitstootherFederal stateandlocallawenforcementagencies DuringourfieldworkwedeterminedthatTSAandRapiscanSystemsmaynothave sanitizedsensitivesecurityinformationfromoneunitrsquoscomputersystempriorto donatingittoastateagencyWepromptlyinformedTSAprogramofficialsaboutthe possiblesecurityconcernOneweeklateraTSAofficialtraveledtothestateagencyrsquos warehouseandremovedtheunitrsquosharddrive
1 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Background TSArsquosmissionistosecurethenationrsquostransportationsystemandensurethefreedomof movementforpeopleandcommerceTSAconductscheckpointscreeningoperationsat federalizedairportsIn2007TSAbegandeployingadvancedimagingtechnology(AIT)to screenairlinepassengersforweaponsexplosivesandotherconcealedobjectswithout physicalcontactfromaTransportationSecurityOfficer OneAITmodelTSAdeployedforpassengerscreeningwastheSecure1000SP manufacturedbyRapiscanSystems(seefigure1)TheseunitsuselowͲlevelxͲraybeams toprojectadetailedimageofapassengerrsquosbodyonamonitorThiscreatedprivacy concernsamongtravelersandmembersofCongress Figure1Secure1000SPUnit
SourceRapiscanSystems InAugust2010TSAorderedautomatictargetingrecognition(ATR)softwarefrom RapiscanSystemsforalltheSecure1000SPunitsThissoftwareenhancesprivacyby interpretingtheimageofapassengerrsquosbodyanddisplayingtheresultsonageneric bodyfigureTSAbegantestingRapiscanSystemsrsquoATRsoftwareinOctober2010 TheFAAModernizationandReformActof2012privacyrequirementsmandatedthat TSAensureAITusedforpassengerscreeningbeequippedwithATRsoftwareHowever thecompanyrsquosATRsoftwaredidnotpassTSArsquostestingandevaluationprocessIn
2 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
January2013theTSAAdministratordirectedtheremovalofallSecure1000SPunits fromairportsbecausetheycouldnotcomplywiththeFAAModernizationandReform ActrsquosprivacyrequirementsBecauseitwasunabletodevelopandsuccessfullytestATR RapiscanSystemsagreedtoassumeallcostsassociatedwiththeremovalshipping sanitizationofsensitiveinformationandstorageoftheunits ResultsofReview
CostsforSecure1000SPUnitsandSupportServicesTotaled$41653702
TitleVIoftheAmericanRecoveryandReinvestmentActauthorizedprocurement andinstallationofcheckedbaggageexplosivesdetectionsystemsandcheckpoint explosivesdetectionequipmentIn2009and2010TSAusedfundsunderthis authoritytopurchase251Secure1000SPunitsfromRapiscanSystemsfor $40077571TSAalsopurchasedtechnicalsupportservicestotaling$1576131 Thesupportservicesincluded
x anoperatortrainingcourse x aninstructortrainingcourse x anAITtrainingsimulator x engineeringandtechnicalsupportand x AITinstallationandmaintenance
CostsToDeploySecure1000SPUnitsCouldNotBeDetermined
TSAusesgovernmentcontractorstodeployairportsecurityequipmentTSA enteredintoanindefinitedeliveryindefinitequantitycontracttopurchase detectionsystemsequipmentandrelateddeploymentservicesThistypeof contractprovidesforanindefinitequantityofsuppliesorservicesoverafixed periodoftimeTSAsubmittedtaskordersforvariousAITunitsandservicesto includetheSecure1000SPunitsenhancedmetaldetectorsexplosivesdetection systemsandbaggagescreeningtechnology TSAcouldnotdeterminethecosttodeploySecure1000SPunitsbecausetask ordersdidnotsegregatecostsbutincludedatotalamountforvarioustypesof airportsecurityequipmentandtechnologydeployedInadditionthecostto deploySecure1000SPunitsincludedshipmenttothedesignatedairportfrom theTSALogisticsCenterinTexasthatisusedtostorescreeningequipment
3 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Deploymentcostsalsoincludedanyrequiredmodificationstoexisting checkpointareas TSAdeployed250ofthe251unitstoairportsTSAplacedtheremainingunitat theTransportationSecurityIntegrationFacility(TSIF)atReaganNationalAirport whereTSAconductsongoingtestingandevaluationofnewsecurityscreening systems RapiscanSystemsPaidToRemoveSanitizeandWarehouseTSArsquosSecure 1000SPInventory
AfterRapiscanSystemswasunabletodevelopandsuccessfullytestATR softwareitagreedtoassumeallcostsassociatedwith(1)removingtheunits fromtheairports(2)shippingunitstoaRapiscanSystemswarehouse (3)sanitizingsensitiveinformationand(4)storingtheSecure1000SPunitsuntil December2017
FromFebruarytoJune2013RapiscanSystemsrelocatedAITunitsfromairports toitsstoragefacilitylocatedinGarnerNorthCarolinaOneunitremainedatthe TSIFforuseinaradiationstudybytheNationalAcademyofSciencesOnAugust 62014RapiscanSystemsrelocatedthisunittoitsstoragefacilityinNorth Carolina TSADidNotHaveaSanitizationCertificateforOneUnit
TheTSAInformationAssuranceHandbookDecember2011andDepartmentof HomelandSecurity(DHS)SensitiveSystemsPolicyDirective4300ArequireTSAto sanitizeinformationsystemscontainingsensitiveinformationpriortothe disposalreuserecyclingortransferofcustodytoanyentityATSAwitness mustverifythesanitizationofsensitiveinformationInadditiontheTSAwitness andtheindividualperformingthesanitizationmustcertifyonTSAForm1412 MediaSanitizationCertificatetheremovalofsensitiveinformationfromthe
equipment
WereviewedMediaSanitizationCertificatesandsupportingdocumentationfor the250unitstransferredtoRapiscanSystemsrsquostoragefacilityTSAdidnothave documentationverifyingthatRapiscanSystemssanitizedsensitiveinformation fromoneoftheSecure1000SPunitsbeforeitwasdonatedtotheStateofNorth CarolinarsquosDivisionofSurplusPropertyonSeptember52013
4 wwwoigdhsgov OIGͲ14Ͳ138
OnMay142014weprovidedTSAwiththeserialnumberoftheunitforwhich itdidnothavesanitizationdocumentationTSAtookimmediateactionto mitigatethesecurityconcernandconfirmedthattheunitwasinawarehousein RaleighandthattheStateofNorthCarolinahadnotusedtheunitOnMay21 2014aTSATransportationEquipmentPropertyAdministratorandaRapiscan SystemstechnicianwenttotheNorthCarolinaDivisionofSurplusProperty warehouseandremovedtheunitrsquosharddrivefordestructionTSAprovidedthe MediaSanitizationCertificateconfirmingthatithadsanitizedtheunit TSACompliedwithPropertyTransferRequirements
TSArsquosdirectivesandregulationsthatgovernthetransferofpropertyarebased on41CFR101FederalPropertyManagementRegulationsand41CFR102 FederalManagementRegulationSpecificallyTSAManagementDirective20057 andDHSManagementDirective0565containpoliciesandprocedurestoprocess anddisposeofexcesspersonalproperty1WefoundthatTSAcompliedwith federalpropertytransferregulations TheGeneralServicesAdministration(GSA)hasdiscretionaryauthorityto prescribethenecessaryguidelinesforFederalagenciestoproperlydisposeof excesspersonalpropertyGSArsquosguidelinesrequirethatTSAdisposeofexcess personalpropertyby
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
x conductinganinternalscreeningandtransferringpropertytoanother
componentwithinTSAorDHS x transferringexcesspersonalpropertytoanotherFederalagencywithout
GSAapprovaliftotalacquisitioncostisnomorethan$10000perline item
x reportingexcesspersonalpropertytoGSA x conducting21Ͳdayscreening x offeringpersonalpropertytostateandlocalagenciesandorganizations x sellingittothepublic(ifeligible)and x abandoningdestroyingorrecyclingexcesspersonalproperty
1TSAdefinesexcesspersonalpropertyaspropertythatisnolongerrequiredtoaccomplishitsmission TSAdefinespersonalpropertyasalltangibleassetswiththeexceptionofrecordsandrealproperty whichareownedcontrolledorheldbytheagency
5 wwwoigdhsgov OIGͲ14Ͳ138
OnFebruary282013TSApostedtheunitsontheDHSAssetManagement SystemgivingDHScomponentspriorityandtheopportunitytosearchandselect theequipmentTSAlistedtheunitsontheDepartmentrsquosAssetManagement Systemfor15days OnMarch152013TSAreportedtheunitsasexcesspropertytoGSAthrough GSAXcessGSAXcessisawebsitethatprovidesagencieswithameansof reportingtoandprocuringexcesspersonalpropertyfromGSAelectronically OnceTSAreportedtheunitstoGSAFederalagenciesotherthanDHShad21 daystoselectanyunitsAttheendofthe21ͲdayperiodGSAdeclaredany unclaimedunitsassurpluspersonalproperty2 GSAofferedtheunitstostateandlocalagenciesfordonationStateandlocal agencieshad5daystosearchandallocateunitsasneededNormallyifnostate orlocalgovernmentagencyexpressesinterestinthepropertyafterthe5Ͳday allocationperiodexpiresGSAoffersthepropertyforsaletootherqualified recipientsForsecurityreasonsTSAchosenottooffertheSecure1000SPunits forsaletothegeneralpublicInsteadTSAaskedGSAtocontinueofferingthe unitstostateandlocalagenciesbyrepostingonGSAXcess SinceMay2013theSecure1000SPunitshavebeenavailabletostateandlocal governmentagenciesTSAwillcontinuetooffertheunitsonGSAXcessWhen TSAdeterminesthatthereisnofurtherdemandorRapiscanSystemsrsquoobligation tostoretheunitsendsTSAwilldestroytheremainingunits TSADonated165Secure1000SPUnitstoOtherGovernmentEntities
AsofAugust292014TSAdonated165Secure1000SPunitstootherFederal agenciesandstateandlocalentitiesTheUnitedStatesSecretServiceandthe NationalInstituteofStandardsandTechnologyeachacquiredoneunitThe UnitedStatesMintacquiredtwounitsStatepropertysurplusagenciesandlocal lawenforcementagenciesacquiredatotalof161units(seeappendixC)
TSApublicizedtheavailabilityoftheexcesspropertyForexampleTSAinformed allFederalNationalUtilizationOfficersandtheNationalAssociationforState AgenciesforSurplusPropertythatTSArsquosSecure1000SPunitswereavailablefor
2SurpluspersonalpropertymeansexcesspropertynolongerrequiredbyFederalagenciesasdetermined byGSA
6 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
donation3AdditionallyatTSArsquosrequestGSApostedtheunitsonthefrontpage oftheGSAXcesssystemforincreasedvisibility RapiscanSystemshasinformedothergovernmentagenciesabouttheavailable unitsRapiscanexecutivesreportedthatthecompanyutilizesitssalesstaffto advisestateandlocalgovernmentcustomersaboutacquiringSecure1000SP unitsthroughGSAXcessRapiscanalsooffersdiscountedmaintenancepackages VerificationofTSArsquosSecure1000SPInventory
ToverifyTSArsquoscurrentSecure1000SPinventorywecomparedlistsofserial numbersprovidedbyTSAandRapiscanSystemsforallunitsTSApurchasedWe crossͲcheckedthesewithpurchaseordersandshippingdocumentsand determinedthattheserialnumberswereaccurateAdditionallyTSAprovideda listofserialnumbersfor144unitsthatweredonatedtootherFederalstate andlocallawenforcementagencies OnMarch192014wevisitedtheTSIFtoreconciletheserialnumberforone unitAsnotedearliertheNationalAcademyofScienceswasusingthisunitina radiationstudyOnMarch272014wevisitedaRapiscanSystemsproduction facilitytoinventorySecure1000SPunitsatthelocationandverifytheirserial numbersThefacilityhadcontrolledaccessand24ͲhoursecurityTheunitswere storedinafencedinareaasshowninfigure2ThefencewasinstalledonMarch 262014
3FederalNationalUtilizationOfficersarepropertyofficerswithineachFederalagencywhocoordinate withGSAtoprovideuseraccessibilitytotheGSAXcessFederaldisposalandscreeningsystem
7 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure2Secure1000SPunitsinRapiscanSystemsrsquostoragefacility
Weaccountedforall106Secure1000SPunitsandfoundnodiscrepancieswith theserialnumbersRapiscanSystemspersonnelunpackedtheunitssowecould verifytheserialnumbersFigure3showsthetwolargecratesandonesmall cratethatmakeuponecompleteunit
8 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
9 wwwoigdhsgov OIGͲ14Ͳ138
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
11 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
TableofContents ExecutiveSummary 1 Background 2 ResultsofReview 3
CostsforSecure1000SPUnitsandSupportServicesTotaled$416537023 CoststoDeploySecure1000SPUnitsCouldNotBeDetermined3 RapiscanSystemsPaidtoRemoveSanitizeandWarehouseTSArsquosSecure 1000SPInventory 4 TSACompliedwithPropertyTransferRegulations5 TSAHasDonated165Secure1000SPUnitstoOtherGovernmentEntities6 VerificationofTSArsquosSecure1000SPInventory7
Appendixes
AppendixAObjectivesScopeandMethodology10 AppendixBManagementCommentstotheDraftReport11 AppendixCSecure1000SPUnitsDonatedtoStatePropertySurplus AgenciesandLocalLawEnforcementAgencieshelliphelliphellip12 AppendixDMajorContributorstoThisReport14 AppendixEReportDistribution15
Abbreviations
AIT advancedimagingtechnology ATR automatictargetingrecognition DHS DepartmentofHomelandSecurity GSA GeneralServicesAdministration OIG OfficeofInspectorGeneral TSA TransportationSecurityAdministration TSIF TransportationSecurityIntegrationFacility
wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ExecutiveSummary ThemissionoftheTransportationSecurityAdministration(TSA)istosecurethenationrsquos transportationsystemandensurethefreedomofmovementforpeopleandcommerce In2007TSAbegandeployingadvancedimagingtechnologytoscreenairlinepassengers forweaponsexplosivesandotherconcealedobjectsIn2009and2010TSAused AmericanRecoveryandReinvestmentActfundstopurchase251Secure1000SP advancedimagingtechnologyunitsfromRapiscanSystemsByJune2013TSAhad removedtheunitsfromservicebecausethecompanycouldnotdevelopenhanced softwaretoenabletheunitstocomplywiththeprivacyrequirementsoftheFAA ModernizationandReformActof2012RapiscanSystemsassumedallcostsassociated withtheirremovalandstorage InMay2013RepresentativeBennieThompsonrequestedthatwereviewTSArsquos managementofitsadvancedimagingtechnologyinventorySpecificallyMrThompson requestedthatwereviewtheremovalandpotentialredistributionofthenoncompliant unitsandrelatedcosts TSApurchased251unitsandtechnicalsupportservicesfor$41653702HoweverTSA wasunabletodeterminethedeploymentcostfortheunitsbecausethetaskorders useddonotsegregateindividualcostsTSAcompliedwithpropertytransferregulations forthe251unitsAsofAugust292014TSAtransferred165unitstootherFederal stateandlocallawenforcementagencies DuringourfieldworkwedeterminedthatTSAandRapiscanSystemsmaynothave sanitizedsensitivesecurityinformationfromoneunitrsquoscomputersystempriorto donatingittoastateagencyWepromptlyinformedTSAprogramofficialsaboutthe possiblesecurityconcernOneweeklateraTSAofficialtraveledtothestateagencyrsquos warehouseandremovedtheunitrsquosharddrive
1 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Background TSArsquosmissionistosecurethenationrsquostransportationsystemandensurethefreedomof movementforpeopleandcommerceTSAconductscheckpointscreeningoperationsat federalizedairportsIn2007TSAbegandeployingadvancedimagingtechnology(AIT)to screenairlinepassengersforweaponsexplosivesandotherconcealedobjectswithout physicalcontactfromaTransportationSecurityOfficer OneAITmodelTSAdeployedforpassengerscreeningwastheSecure1000SP manufacturedbyRapiscanSystems(seefigure1)TheseunitsuselowͲlevelxͲraybeams toprojectadetailedimageofapassengerrsquosbodyonamonitorThiscreatedprivacy concernsamongtravelersandmembersofCongress Figure1Secure1000SPUnit
SourceRapiscanSystems InAugust2010TSAorderedautomatictargetingrecognition(ATR)softwarefrom RapiscanSystemsforalltheSecure1000SPunitsThissoftwareenhancesprivacyby interpretingtheimageofapassengerrsquosbodyanddisplayingtheresultsonageneric bodyfigureTSAbegantestingRapiscanSystemsrsquoATRsoftwareinOctober2010 TheFAAModernizationandReformActof2012privacyrequirementsmandatedthat TSAensureAITusedforpassengerscreeningbeequippedwithATRsoftwareHowever thecompanyrsquosATRsoftwaredidnotpassTSArsquostestingandevaluationprocessIn
2 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
January2013theTSAAdministratordirectedtheremovalofallSecure1000SPunits fromairportsbecausetheycouldnotcomplywiththeFAAModernizationandReform ActrsquosprivacyrequirementsBecauseitwasunabletodevelopandsuccessfullytestATR RapiscanSystemsagreedtoassumeallcostsassociatedwiththeremovalshipping sanitizationofsensitiveinformationandstorageoftheunits ResultsofReview
CostsforSecure1000SPUnitsandSupportServicesTotaled$41653702
TitleVIoftheAmericanRecoveryandReinvestmentActauthorizedprocurement andinstallationofcheckedbaggageexplosivesdetectionsystemsandcheckpoint explosivesdetectionequipmentIn2009and2010TSAusedfundsunderthis authoritytopurchase251Secure1000SPunitsfromRapiscanSystemsfor $40077571TSAalsopurchasedtechnicalsupportservicestotaling$1576131 Thesupportservicesincluded
x anoperatortrainingcourse x aninstructortrainingcourse x anAITtrainingsimulator x engineeringandtechnicalsupportand x AITinstallationandmaintenance
CostsToDeploySecure1000SPUnitsCouldNotBeDetermined
TSAusesgovernmentcontractorstodeployairportsecurityequipmentTSA enteredintoanindefinitedeliveryindefinitequantitycontracttopurchase detectionsystemsequipmentandrelateddeploymentservicesThistypeof contractprovidesforanindefinitequantityofsuppliesorservicesoverafixed periodoftimeTSAsubmittedtaskordersforvariousAITunitsandservicesto includetheSecure1000SPunitsenhancedmetaldetectorsexplosivesdetection systemsandbaggagescreeningtechnology TSAcouldnotdeterminethecosttodeploySecure1000SPunitsbecausetask ordersdidnotsegregatecostsbutincludedatotalamountforvarioustypesof airportsecurityequipmentandtechnologydeployedInadditionthecostto deploySecure1000SPunitsincludedshipmenttothedesignatedairportfrom theTSALogisticsCenterinTexasthatisusedtostorescreeningequipment
3 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Deploymentcostsalsoincludedanyrequiredmodificationstoexisting checkpointareas TSAdeployed250ofthe251unitstoairportsTSAplacedtheremainingunitat theTransportationSecurityIntegrationFacility(TSIF)atReaganNationalAirport whereTSAconductsongoingtestingandevaluationofnewsecurityscreening systems RapiscanSystemsPaidToRemoveSanitizeandWarehouseTSArsquosSecure 1000SPInventory
AfterRapiscanSystemswasunabletodevelopandsuccessfullytestATR softwareitagreedtoassumeallcostsassociatedwith(1)removingtheunits fromtheairports(2)shippingunitstoaRapiscanSystemswarehouse (3)sanitizingsensitiveinformationand(4)storingtheSecure1000SPunitsuntil December2017
FromFebruarytoJune2013RapiscanSystemsrelocatedAITunitsfromairports toitsstoragefacilitylocatedinGarnerNorthCarolinaOneunitremainedatthe TSIFforuseinaradiationstudybytheNationalAcademyofSciencesOnAugust 62014RapiscanSystemsrelocatedthisunittoitsstoragefacilityinNorth Carolina TSADidNotHaveaSanitizationCertificateforOneUnit
TheTSAInformationAssuranceHandbookDecember2011andDepartmentof HomelandSecurity(DHS)SensitiveSystemsPolicyDirective4300ArequireTSAto sanitizeinformationsystemscontainingsensitiveinformationpriortothe disposalreuserecyclingortransferofcustodytoanyentityATSAwitness mustverifythesanitizationofsensitiveinformationInadditiontheTSAwitness andtheindividualperformingthesanitizationmustcertifyonTSAForm1412 MediaSanitizationCertificatetheremovalofsensitiveinformationfromthe
equipment
WereviewedMediaSanitizationCertificatesandsupportingdocumentationfor the250unitstransferredtoRapiscanSystemsrsquostoragefacilityTSAdidnothave documentationverifyingthatRapiscanSystemssanitizedsensitiveinformation fromoneoftheSecure1000SPunitsbeforeitwasdonatedtotheStateofNorth CarolinarsquosDivisionofSurplusPropertyonSeptember52013
4 wwwoigdhsgov OIGͲ14Ͳ138
OnMay142014weprovidedTSAwiththeserialnumberoftheunitforwhich itdidnothavesanitizationdocumentationTSAtookimmediateactionto mitigatethesecurityconcernandconfirmedthattheunitwasinawarehousein RaleighandthattheStateofNorthCarolinahadnotusedtheunitOnMay21 2014aTSATransportationEquipmentPropertyAdministratorandaRapiscan SystemstechnicianwenttotheNorthCarolinaDivisionofSurplusProperty warehouseandremovedtheunitrsquosharddrivefordestructionTSAprovidedthe MediaSanitizationCertificateconfirmingthatithadsanitizedtheunit TSACompliedwithPropertyTransferRequirements
TSArsquosdirectivesandregulationsthatgovernthetransferofpropertyarebased on41CFR101FederalPropertyManagementRegulationsand41CFR102 FederalManagementRegulationSpecificallyTSAManagementDirective20057 andDHSManagementDirective0565containpoliciesandprocedurestoprocess anddisposeofexcesspersonalproperty1WefoundthatTSAcompliedwith federalpropertytransferregulations TheGeneralServicesAdministration(GSA)hasdiscretionaryauthorityto prescribethenecessaryguidelinesforFederalagenciestoproperlydisposeof excesspersonalpropertyGSArsquosguidelinesrequirethatTSAdisposeofexcess personalpropertyby
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
x conductinganinternalscreeningandtransferringpropertytoanother
componentwithinTSAorDHS x transferringexcesspersonalpropertytoanotherFederalagencywithout
GSAapprovaliftotalacquisitioncostisnomorethan$10000perline item
x reportingexcesspersonalpropertytoGSA x conducting21Ͳdayscreening x offeringpersonalpropertytostateandlocalagenciesandorganizations x sellingittothepublic(ifeligible)and x abandoningdestroyingorrecyclingexcesspersonalproperty
1TSAdefinesexcesspersonalpropertyaspropertythatisnolongerrequiredtoaccomplishitsmission TSAdefinespersonalpropertyasalltangibleassetswiththeexceptionofrecordsandrealproperty whichareownedcontrolledorheldbytheagency
5 wwwoigdhsgov OIGͲ14Ͳ138
OnFebruary282013TSApostedtheunitsontheDHSAssetManagement SystemgivingDHScomponentspriorityandtheopportunitytosearchandselect theequipmentTSAlistedtheunitsontheDepartmentrsquosAssetManagement Systemfor15days OnMarch152013TSAreportedtheunitsasexcesspropertytoGSAthrough GSAXcessGSAXcessisawebsitethatprovidesagencieswithameansof reportingtoandprocuringexcesspersonalpropertyfromGSAelectronically OnceTSAreportedtheunitstoGSAFederalagenciesotherthanDHShad21 daystoselectanyunitsAttheendofthe21ͲdayperiodGSAdeclaredany unclaimedunitsassurpluspersonalproperty2 GSAofferedtheunitstostateandlocalagenciesfordonationStateandlocal agencieshad5daystosearchandallocateunitsasneededNormallyifnostate orlocalgovernmentagencyexpressesinterestinthepropertyafterthe5Ͳday allocationperiodexpiresGSAoffersthepropertyforsaletootherqualified recipientsForsecurityreasonsTSAchosenottooffertheSecure1000SPunits forsaletothegeneralpublicInsteadTSAaskedGSAtocontinueofferingthe unitstostateandlocalagenciesbyrepostingonGSAXcess SinceMay2013theSecure1000SPunitshavebeenavailabletostateandlocal governmentagenciesTSAwillcontinuetooffertheunitsonGSAXcessWhen TSAdeterminesthatthereisnofurtherdemandorRapiscanSystemsrsquoobligation tostoretheunitsendsTSAwilldestroytheremainingunits TSADonated165Secure1000SPUnitstoOtherGovernmentEntities
AsofAugust292014TSAdonated165Secure1000SPunitstootherFederal agenciesandstateandlocalentitiesTheUnitedStatesSecretServiceandthe NationalInstituteofStandardsandTechnologyeachacquiredoneunitThe UnitedStatesMintacquiredtwounitsStatepropertysurplusagenciesandlocal lawenforcementagenciesacquiredatotalof161units(seeappendixC)
TSApublicizedtheavailabilityoftheexcesspropertyForexampleTSAinformed allFederalNationalUtilizationOfficersandtheNationalAssociationforState AgenciesforSurplusPropertythatTSArsquosSecure1000SPunitswereavailablefor
2SurpluspersonalpropertymeansexcesspropertynolongerrequiredbyFederalagenciesasdetermined byGSA
6 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
donation3AdditionallyatTSArsquosrequestGSApostedtheunitsonthefrontpage oftheGSAXcesssystemforincreasedvisibility RapiscanSystemshasinformedothergovernmentagenciesabouttheavailable unitsRapiscanexecutivesreportedthatthecompanyutilizesitssalesstaffto advisestateandlocalgovernmentcustomersaboutacquiringSecure1000SP unitsthroughGSAXcessRapiscanalsooffersdiscountedmaintenancepackages VerificationofTSArsquosSecure1000SPInventory
ToverifyTSArsquoscurrentSecure1000SPinventorywecomparedlistsofserial numbersprovidedbyTSAandRapiscanSystemsforallunitsTSApurchasedWe crossͲcheckedthesewithpurchaseordersandshippingdocumentsand determinedthattheserialnumberswereaccurateAdditionallyTSAprovideda listofserialnumbersfor144unitsthatweredonatedtootherFederalstate andlocallawenforcementagencies OnMarch192014wevisitedtheTSIFtoreconciletheserialnumberforone unitAsnotedearliertheNationalAcademyofScienceswasusingthisunitina radiationstudyOnMarch272014wevisitedaRapiscanSystemsproduction facilitytoinventorySecure1000SPunitsatthelocationandverifytheirserial numbersThefacilityhadcontrolledaccessand24ͲhoursecurityTheunitswere storedinafencedinareaasshowninfigure2ThefencewasinstalledonMarch 262014
3FederalNationalUtilizationOfficersarepropertyofficerswithineachFederalagencywhocoordinate withGSAtoprovideuseraccessibilitytotheGSAXcessFederaldisposalandscreeningsystem
7 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure2Secure1000SPunitsinRapiscanSystemsrsquostoragefacility
Weaccountedforall106Secure1000SPunitsandfoundnodiscrepancieswith theserialnumbersRapiscanSystemspersonnelunpackedtheunitssowecould verifytheserialnumbersFigure3showsthetwolargecratesandonesmall cratethatmakeuponecompleteunit
8 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
9 wwwoigdhsgov OIGͲ14Ͳ138
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
11 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ExecutiveSummary ThemissionoftheTransportationSecurityAdministration(TSA)istosecurethenationrsquos transportationsystemandensurethefreedomofmovementforpeopleandcommerce In2007TSAbegandeployingadvancedimagingtechnologytoscreenairlinepassengers forweaponsexplosivesandotherconcealedobjectsIn2009and2010TSAused AmericanRecoveryandReinvestmentActfundstopurchase251Secure1000SP advancedimagingtechnologyunitsfromRapiscanSystemsByJune2013TSAhad removedtheunitsfromservicebecausethecompanycouldnotdevelopenhanced softwaretoenabletheunitstocomplywiththeprivacyrequirementsoftheFAA ModernizationandReformActof2012RapiscanSystemsassumedallcostsassociated withtheirremovalandstorage InMay2013RepresentativeBennieThompsonrequestedthatwereviewTSArsquos managementofitsadvancedimagingtechnologyinventorySpecificallyMrThompson requestedthatwereviewtheremovalandpotentialredistributionofthenoncompliant unitsandrelatedcosts TSApurchased251unitsandtechnicalsupportservicesfor$41653702HoweverTSA wasunabletodeterminethedeploymentcostfortheunitsbecausethetaskorders useddonotsegregateindividualcostsTSAcompliedwithpropertytransferregulations forthe251unitsAsofAugust292014TSAtransferred165unitstootherFederal stateandlocallawenforcementagencies DuringourfieldworkwedeterminedthatTSAandRapiscanSystemsmaynothave sanitizedsensitivesecurityinformationfromoneunitrsquoscomputersystempriorto donatingittoastateagencyWepromptlyinformedTSAprogramofficialsaboutthe possiblesecurityconcernOneweeklateraTSAofficialtraveledtothestateagencyrsquos warehouseandremovedtheunitrsquosharddrive
1 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Background TSArsquosmissionistosecurethenationrsquostransportationsystemandensurethefreedomof movementforpeopleandcommerceTSAconductscheckpointscreeningoperationsat federalizedairportsIn2007TSAbegandeployingadvancedimagingtechnology(AIT)to screenairlinepassengersforweaponsexplosivesandotherconcealedobjectswithout physicalcontactfromaTransportationSecurityOfficer OneAITmodelTSAdeployedforpassengerscreeningwastheSecure1000SP manufacturedbyRapiscanSystems(seefigure1)TheseunitsuselowͲlevelxͲraybeams toprojectadetailedimageofapassengerrsquosbodyonamonitorThiscreatedprivacy concernsamongtravelersandmembersofCongress Figure1Secure1000SPUnit
SourceRapiscanSystems InAugust2010TSAorderedautomatictargetingrecognition(ATR)softwarefrom RapiscanSystemsforalltheSecure1000SPunitsThissoftwareenhancesprivacyby interpretingtheimageofapassengerrsquosbodyanddisplayingtheresultsonageneric bodyfigureTSAbegantestingRapiscanSystemsrsquoATRsoftwareinOctober2010 TheFAAModernizationandReformActof2012privacyrequirementsmandatedthat TSAensureAITusedforpassengerscreeningbeequippedwithATRsoftwareHowever thecompanyrsquosATRsoftwaredidnotpassTSArsquostestingandevaluationprocessIn
2 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
January2013theTSAAdministratordirectedtheremovalofallSecure1000SPunits fromairportsbecausetheycouldnotcomplywiththeFAAModernizationandReform ActrsquosprivacyrequirementsBecauseitwasunabletodevelopandsuccessfullytestATR RapiscanSystemsagreedtoassumeallcostsassociatedwiththeremovalshipping sanitizationofsensitiveinformationandstorageoftheunits ResultsofReview
CostsforSecure1000SPUnitsandSupportServicesTotaled$41653702
TitleVIoftheAmericanRecoveryandReinvestmentActauthorizedprocurement andinstallationofcheckedbaggageexplosivesdetectionsystemsandcheckpoint explosivesdetectionequipmentIn2009and2010TSAusedfundsunderthis authoritytopurchase251Secure1000SPunitsfromRapiscanSystemsfor $40077571TSAalsopurchasedtechnicalsupportservicestotaling$1576131 Thesupportservicesincluded
x anoperatortrainingcourse x aninstructortrainingcourse x anAITtrainingsimulator x engineeringandtechnicalsupportand x AITinstallationandmaintenance
CostsToDeploySecure1000SPUnitsCouldNotBeDetermined
TSAusesgovernmentcontractorstodeployairportsecurityequipmentTSA enteredintoanindefinitedeliveryindefinitequantitycontracttopurchase detectionsystemsequipmentandrelateddeploymentservicesThistypeof contractprovidesforanindefinitequantityofsuppliesorservicesoverafixed periodoftimeTSAsubmittedtaskordersforvariousAITunitsandservicesto includetheSecure1000SPunitsenhancedmetaldetectorsexplosivesdetection systemsandbaggagescreeningtechnology TSAcouldnotdeterminethecosttodeploySecure1000SPunitsbecausetask ordersdidnotsegregatecostsbutincludedatotalamountforvarioustypesof airportsecurityequipmentandtechnologydeployedInadditionthecostto deploySecure1000SPunitsincludedshipmenttothedesignatedairportfrom theTSALogisticsCenterinTexasthatisusedtostorescreeningequipment
3 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Deploymentcostsalsoincludedanyrequiredmodificationstoexisting checkpointareas TSAdeployed250ofthe251unitstoairportsTSAplacedtheremainingunitat theTransportationSecurityIntegrationFacility(TSIF)atReaganNationalAirport whereTSAconductsongoingtestingandevaluationofnewsecurityscreening systems RapiscanSystemsPaidToRemoveSanitizeandWarehouseTSArsquosSecure 1000SPInventory
AfterRapiscanSystemswasunabletodevelopandsuccessfullytestATR softwareitagreedtoassumeallcostsassociatedwith(1)removingtheunits fromtheairports(2)shippingunitstoaRapiscanSystemswarehouse (3)sanitizingsensitiveinformationand(4)storingtheSecure1000SPunitsuntil December2017
FromFebruarytoJune2013RapiscanSystemsrelocatedAITunitsfromairports toitsstoragefacilitylocatedinGarnerNorthCarolinaOneunitremainedatthe TSIFforuseinaradiationstudybytheNationalAcademyofSciencesOnAugust 62014RapiscanSystemsrelocatedthisunittoitsstoragefacilityinNorth Carolina TSADidNotHaveaSanitizationCertificateforOneUnit
TheTSAInformationAssuranceHandbookDecember2011andDepartmentof HomelandSecurity(DHS)SensitiveSystemsPolicyDirective4300ArequireTSAto sanitizeinformationsystemscontainingsensitiveinformationpriortothe disposalreuserecyclingortransferofcustodytoanyentityATSAwitness mustverifythesanitizationofsensitiveinformationInadditiontheTSAwitness andtheindividualperformingthesanitizationmustcertifyonTSAForm1412 MediaSanitizationCertificatetheremovalofsensitiveinformationfromthe
equipment
WereviewedMediaSanitizationCertificatesandsupportingdocumentationfor the250unitstransferredtoRapiscanSystemsrsquostoragefacilityTSAdidnothave documentationverifyingthatRapiscanSystemssanitizedsensitiveinformation fromoneoftheSecure1000SPunitsbeforeitwasdonatedtotheStateofNorth CarolinarsquosDivisionofSurplusPropertyonSeptember52013
4 wwwoigdhsgov OIGͲ14Ͳ138
OnMay142014weprovidedTSAwiththeserialnumberoftheunitforwhich itdidnothavesanitizationdocumentationTSAtookimmediateactionto mitigatethesecurityconcernandconfirmedthattheunitwasinawarehousein RaleighandthattheStateofNorthCarolinahadnotusedtheunitOnMay21 2014aTSATransportationEquipmentPropertyAdministratorandaRapiscan SystemstechnicianwenttotheNorthCarolinaDivisionofSurplusProperty warehouseandremovedtheunitrsquosharddrivefordestructionTSAprovidedthe MediaSanitizationCertificateconfirmingthatithadsanitizedtheunit TSACompliedwithPropertyTransferRequirements
TSArsquosdirectivesandregulationsthatgovernthetransferofpropertyarebased on41CFR101FederalPropertyManagementRegulationsand41CFR102 FederalManagementRegulationSpecificallyTSAManagementDirective20057 andDHSManagementDirective0565containpoliciesandprocedurestoprocess anddisposeofexcesspersonalproperty1WefoundthatTSAcompliedwith federalpropertytransferregulations TheGeneralServicesAdministration(GSA)hasdiscretionaryauthorityto prescribethenecessaryguidelinesforFederalagenciestoproperlydisposeof excesspersonalpropertyGSArsquosguidelinesrequirethatTSAdisposeofexcess personalpropertyby
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
x conductinganinternalscreeningandtransferringpropertytoanother
componentwithinTSAorDHS x transferringexcesspersonalpropertytoanotherFederalagencywithout
GSAapprovaliftotalacquisitioncostisnomorethan$10000perline item
x reportingexcesspersonalpropertytoGSA x conducting21Ͳdayscreening x offeringpersonalpropertytostateandlocalagenciesandorganizations x sellingittothepublic(ifeligible)and x abandoningdestroyingorrecyclingexcesspersonalproperty
1TSAdefinesexcesspersonalpropertyaspropertythatisnolongerrequiredtoaccomplishitsmission TSAdefinespersonalpropertyasalltangibleassetswiththeexceptionofrecordsandrealproperty whichareownedcontrolledorheldbytheagency
5 wwwoigdhsgov OIGͲ14Ͳ138
OnFebruary282013TSApostedtheunitsontheDHSAssetManagement SystemgivingDHScomponentspriorityandtheopportunitytosearchandselect theequipmentTSAlistedtheunitsontheDepartmentrsquosAssetManagement Systemfor15days OnMarch152013TSAreportedtheunitsasexcesspropertytoGSAthrough GSAXcessGSAXcessisawebsitethatprovidesagencieswithameansof reportingtoandprocuringexcesspersonalpropertyfromGSAelectronically OnceTSAreportedtheunitstoGSAFederalagenciesotherthanDHShad21 daystoselectanyunitsAttheendofthe21ͲdayperiodGSAdeclaredany unclaimedunitsassurpluspersonalproperty2 GSAofferedtheunitstostateandlocalagenciesfordonationStateandlocal agencieshad5daystosearchandallocateunitsasneededNormallyifnostate orlocalgovernmentagencyexpressesinterestinthepropertyafterthe5Ͳday allocationperiodexpiresGSAoffersthepropertyforsaletootherqualified recipientsForsecurityreasonsTSAchosenottooffertheSecure1000SPunits forsaletothegeneralpublicInsteadTSAaskedGSAtocontinueofferingthe unitstostateandlocalagenciesbyrepostingonGSAXcess SinceMay2013theSecure1000SPunitshavebeenavailabletostateandlocal governmentagenciesTSAwillcontinuetooffertheunitsonGSAXcessWhen TSAdeterminesthatthereisnofurtherdemandorRapiscanSystemsrsquoobligation tostoretheunitsendsTSAwilldestroytheremainingunits TSADonated165Secure1000SPUnitstoOtherGovernmentEntities
AsofAugust292014TSAdonated165Secure1000SPunitstootherFederal agenciesandstateandlocalentitiesTheUnitedStatesSecretServiceandthe NationalInstituteofStandardsandTechnologyeachacquiredoneunitThe UnitedStatesMintacquiredtwounitsStatepropertysurplusagenciesandlocal lawenforcementagenciesacquiredatotalof161units(seeappendixC)
TSApublicizedtheavailabilityoftheexcesspropertyForexampleTSAinformed allFederalNationalUtilizationOfficersandtheNationalAssociationforState AgenciesforSurplusPropertythatTSArsquosSecure1000SPunitswereavailablefor
2SurpluspersonalpropertymeansexcesspropertynolongerrequiredbyFederalagenciesasdetermined byGSA
6 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
donation3AdditionallyatTSArsquosrequestGSApostedtheunitsonthefrontpage oftheGSAXcesssystemforincreasedvisibility RapiscanSystemshasinformedothergovernmentagenciesabouttheavailable unitsRapiscanexecutivesreportedthatthecompanyutilizesitssalesstaffto advisestateandlocalgovernmentcustomersaboutacquiringSecure1000SP unitsthroughGSAXcessRapiscanalsooffersdiscountedmaintenancepackages VerificationofTSArsquosSecure1000SPInventory
ToverifyTSArsquoscurrentSecure1000SPinventorywecomparedlistsofserial numbersprovidedbyTSAandRapiscanSystemsforallunitsTSApurchasedWe crossͲcheckedthesewithpurchaseordersandshippingdocumentsand determinedthattheserialnumberswereaccurateAdditionallyTSAprovideda listofserialnumbersfor144unitsthatweredonatedtootherFederalstate andlocallawenforcementagencies OnMarch192014wevisitedtheTSIFtoreconciletheserialnumberforone unitAsnotedearliertheNationalAcademyofScienceswasusingthisunitina radiationstudyOnMarch272014wevisitedaRapiscanSystemsproduction facilitytoinventorySecure1000SPunitsatthelocationandverifytheirserial numbersThefacilityhadcontrolledaccessand24ͲhoursecurityTheunitswere storedinafencedinareaasshowninfigure2ThefencewasinstalledonMarch 262014
3FederalNationalUtilizationOfficersarepropertyofficerswithineachFederalagencywhocoordinate withGSAtoprovideuseraccessibilitytotheGSAXcessFederaldisposalandscreeningsystem
7 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure2Secure1000SPunitsinRapiscanSystemsrsquostoragefacility
Weaccountedforall106Secure1000SPunitsandfoundnodiscrepancieswith theserialnumbersRapiscanSystemspersonnelunpackedtheunitssowecould verifytheserialnumbersFigure3showsthetwolargecratesandonesmall cratethatmakeuponecompleteunit
8 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
9 wwwoigdhsgov OIGͲ14Ͳ138
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
11 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Background TSArsquosmissionistosecurethenationrsquostransportationsystemandensurethefreedomof movementforpeopleandcommerceTSAconductscheckpointscreeningoperationsat federalizedairportsIn2007TSAbegandeployingadvancedimagingtechnology(AIT)to screenairlinepassengersforweaponsexplosivesandotherconcealedobjectswithout physicalcontactfromaTransportationSecurityOfficer OneAITmodelTSAdeployedforpassengerscreeningwastheSecure1000SP manufacturedbyRapiscanSystems(seefigure1)TheseunitsuselowͲlevelxͲraybeams toprojectadetailedimageofapassengerrsquosbodyonamonitorThiscreatedprivacy concernsamongtravelersandmembersofCongress Figure1Secure1000SPUnit
SourceRapiscanSystems InAugust2010TSAorderedautomatictargetingrecognition(ATR)softwarefrom RapiscanSystemsforalltheSecure1000SPunitsThissoftwareenhancesprivacyby interpretingtheimageofapassengerrsquosbodyanddisplayingtheresultsonageneric bodyfigureTSAbegantestingRapiscanSystemsrsquoATRsoftwareinOctober2010 TheFAAModernizationandReformActof2012privacyrequirementsmandatedthat TSAensureAITusedforpassengerscreeningbeequippedwithATRsoftwareHowever thecompanyrsquosATRsoftwaredidnotpassTSArsquostestingandevaluationprocessIn
2 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
January2013theTSAAdministratordirectedtheremovalofallSecure1000SPunits fromairportsbecausetheycouldnotcomplywiththeFAAModernizationandReform ActrsquosprivacyrequirementsBecauseitwasunabletodevelopandsuccessfullytestATR RapiscanSystemsagreedtoassumeallcostsassociatedwiththeremovalshipping sanitizationofsensitiveinformationandstorageoftheunits ResultsofReview
CostsforSecure1000SPUnitsandSupportServicesTotaled$41653702
TitleVIoftheAmericanRecoveryandReinvestmentActauthorizedprocurement andinstallationofcheckedbaggageexplosivesdetectionsystemsandcheckpoint explosivesdetectionequipmentIn2009and2010TSAusedfundsunderthis authoritytopurchase251Secure1000SPunitsfromRapiscanSystemsfor $40077571TSAalsopurchasedtechnicalsupportservicestotaling$1576131 Thesupportservicesincluded
x anoperatortrainingcourse x aninstructortrainingcourse x anAITtrainingsimulator x engineeringandtechnicalsupportand x AITinstallationandmaintenance
CostsToDeploySecure1000SPUnitsCouldNotBeDetermined
TSAusesgovernmentcontractorstodeployairportsecurityequipmentTSA enteredintoanindefinitedeliveryindefinitequantitycontracttopurchase detectionsystemsequipmentandrelateddeploymentservicesThistypeof contractprovidesforanindefinitequantityofsuppliesorservicesoverafixed periodoftimeTSAsubmittedtaskordersforvariousAITunitsandservicesto includetheSecure1000SPunitsenhancedmetaldetectorsexplosivesdetection systemsandbaggagescreeningtechnology TSAcouldnotdeterminethecosttodeploySecure1000SPunitsbecausetask ordersdidnotsegregatecostsbutincludedatotalamountforvarioustypesof airportsecurityequipmentandtechnologydeployedInadditionthecostto deploySecure1000SPunitsincludedshipmenttothedesignatedairportfrom theTSALogisticsCenterinTexasthatisusedtostorescreeningequipment
3 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Deploymentcostsalsoincludedanyrequiredmodificationstoexisting checkpointareas TSAdeployed250ofthe251unitstoairportsTSAplacedtheremainingunitat theTransportationSecurityIntegrationFacility(TSIF)atReaganNationalAirport whereTSAconductsongoingtestingandevaluationofnewsecurityscreening systems RapiscanSystemsPaidToRemoveSanitizeandWarehouseTSArsquosSecure 1000SPInventory
AfterRapiscanSystemswasunabletodevelopandsuccessfullytestATR softwareitagreedtoassumeallcostsassociatedwith(1)removingtheunits fromtheairports(2)shippingunitstoaRapiscanSystemswarehouse (3)sanitizingsensitiveinformationand(4)storingtheSecure1000SPunitsuntil December2017
FromFebruarytoJune2013RapiscanSystemsrelocatedAITunitsfromairports toitsstoragefacilitylocatedinGarnerNorthCarolinaOneunitremainedatthe TSIFforuseinaradiationstudybytheNationalAcademyofSciencesOnAugust 62014RapiscanSystemsrelocatedthisunittoitsstoragefacilityinNorth Carolina TSADidNotHaveaSanitizationCertificateforOneUnit
TheTSAInformationAssuranceHandbookDecember2011andDepartmentof HomelandSecurity(DHS)SensitiveSystemsPolicyDirective4300ArequireTSAto sanitizeinformationsystemscontainingsensitiveinformationpriortothe disposalreuserecyclingortransferofcustodytoanyentityATSAwitness mustverifythesanitizationofsensitiveinformationInadditiontheTSAwitness andtheindividualperformingthesanitizationmustcertifyonTSAForm1412 MediaSanitizationCertificatetheremovalofsensitiveinformationfromthe
equipment
WereviewedMediaSanitizationCertificatesandsupportingdocumentationfor the250unitstransferredtoRapiscanSystemsrsquostoragefacilityTSAdidnothave documentationverifyingthatRapiscanSystemssanitizedsensitiveinformation fromoneoftheSecure1000SPunitsbeforeitwasdonatedtotheStateofNorth CarolinarsquosDivisionofSurplusPropertyonSeptember52013
4 wwwoigdhsgov OIGͲ14Ͳ138
OnMay142014weprovidedTSAwiththeserialnumberoftheunitforwhich itdidnothavesanitizationdocumentationTSAtookimmediateactionto mitigatethesecurityconcernandconfirmedthattheunitwasinawarehousein RaleighandthattheStateofNorthCarolinahadnotusedtheunitOnMay21 2014aTSATransportationEquipmentPropertyAdministratorandaRapiscan SystemstechnicianwenttotheNorthCarolinaDivisionofSurplusProperty warehouseandremovedtheunitrsquosharddrivefordestructionTSAprovidedthe MediaSanitizationCertificateconfirmingthatithadsanitizedtheunit TSACompliedwithPropertyTransferRequirements
TSArsquosdirectivesandregulationsthatgovernthetransferofpropertyarebased on41CFR101FederalPropertyManagementRegulationsand41CFR102 FederalManagementRegulationSpecificallyTSAManagementDirective20057 andDHSManagementDirective0565containpoliciesandprocedurestoprocess anddisposeofexcesspersonalproperty1WefoundthatTSAcompliedwith federalpropertytransferregulations TheGeneralServicesAdministration(GSA)hasdiscretionaryauthorityto prescribethenecessaryguidelinesforFederalagenciestoproperlydisposeof excesspersonalpropertyGSArsquosguidelinesrequirethatTSAdisposeofexcess personalpropertyby
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
x conductinganinternalscreeningandtransferringpropertytoanother
componentwithinTSAorDHS x transferringexcesspersonalpropertytoanotherFederalagencywithout
GSAapprovaliftotalacquisitioncostisnomorethan$10000perline item
x reportingexcesspersonalpropertytoGSA x conducting21Ͳdayscreening x offeringpersonalpropertytostateandlocalagenciesandorganizations x sellingittothepublic(ifeligible)and x abandoningdestroyingorrecyclingexcesspersonalproperty
1TSAdefinesexcesspersonalpropertyaspropertythatisnolongerrequiredtoaccomplishitsmission TSAdefinespersonalpropertyasalltangibleassetswiththeexceptionofrecordsandrealproperty whichareownedcontrolledorheldbytheagency
5 wwwoigdhsgov OIGͲ14Ͳ138
OnFebruary282013TSApostedtheunitsontheDHSAssetManagement SystemgivingDHScomponentspriorityandtheopportunitytosearchandselect theequipmentTSAlistedtheunitsontheDepartmentrsquosAssetManagement Systemfor15days OnMarch152013TSAreportedtheunitsasexcesspropertytoGSAthrough GSAXcessGSAXcessisawebsitethatprovidesagencieswithameansof reportingtoandprocuringexcesspersonalpropertyfromGSAelectronically OnceTSAreportedtheunitstoGSAFederalagenciesotherthanDHShad21 daystoselectanyunitsAttheendofthe21ͲdayperiodGSAdeclaredany unclaimedunitsassurpluspersonalproperty2 GSAofferedtheunitstostateandlocalagenciesfordonationStateandlocal agencieshad5daystosearchandallocateunitsasneededNormallyifnostate orlocalgovernmentagencyexpressesinterestinthepropertyafterthe5Ͳday allocationperiodexpiresGSAoffersthepropertyforsaletootherqualified recipientsForsecurityreasonsTSAchosenottooffertheSecure1000SPunits forsaletothegeneralpublicInsteadTSAaskedGSAtocontinueofferingthe unitstostateandlocalagenciesbyrepostingonGSAXcess SinceMay2013theSecure1000SPunitshavebeenavailabletostateandlocal governmentagenciesTSAwillcontinuetooffertheunitsonGSAXcessWhen TSAdeterminesthatthereisnofurtherdemandorRapiscanSystemsrsquoobligation tostoretheunitsendsTSAwilldestroytheremainingunits TSADonated165Secure1000SPUnitstoOtherGovernmentEntities
AsofAugust292014TSAdonated165Secure1000SPunitstootherFederal agenciesandstateandlocalentitiesTheUnitedStatesSecretServiceandthe NationalInstituteofStandardsandTechnologyeachacquiredoneunitThe UnitedStatesMintacquiredtwounitsStatepropertysurplusagenciesandlocal lawenforcementagenciesacquiredatotalof161units(seeappendixC)
TSApublicizedtheavailabilityoftheexcesspropertyForexampleTSAinformed allFederalNationalUtilizationOfficersandtheNationalAssociationforState AgenciesforSurplusPropertythatTSArsquosSecure1000SPunitswereavailablefor
2SurpluspersonalpropertymeansexcesspropertynolongerrequiredbyFederalagenciesasdetermined byGSA
6 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
donation3AdditionallyatTSArsquosrequestGSApostedtheunitsonthefrontpage oftheGSAXcesssystemforincreasedvisibility RapiscanSystemshasinformedothergovernmentagenciesabouttheavailable unitsRapiscanexecutivesreportedthatthecompanyutilizesitssalesstaffto advisestateandlocalgovernmentcustomersaboutacquiringSecure1000SP unitsthroughGSAXcessRapiscanalsooffersdiscountedmaintenancepackages VerificationofTSArsquosSecure1000SPInventory
ToverifyTSArsquoscurrentSecure1000SPinventorywecomparedlistsofserial numbersprovidedbyTSAandRapiscanSystemsforallunitsTSApurchasedWe crossͲcheckedthesewithpurchaseordersandshippingdocumentsand determinedthattheserialnumberswereaccurateAdditionallyTSAprovideda listofserialnumbersfor144unitsthatweredonatedtootherFederalstate andlocallawenforcementagencies OnMarch192014wevisitedtheTSIFtoreconciletheserialnumberforone unitAsnotedearliertheNationalAcademyofScienceswasusingthisunitina radiationstudyOnMarch272014wevisitedaRapiscanSystemsproduction facilitytoinventorySecure1000SPunitsatthelocationandverifytheirserial numbersThefacilityhadcontrolledaccessand24ͲhoursecurityTheunitswere storedinafencedinareaasshowninfigure2ThefencewasinstalledonMarch 262014
3FederalNationalUtilizationOfficersarepropertyofficerswithineachFederalagencywhocoordinate withGSAtoprovideuseraccessibilitytotheGSAXcessFederaldisposalandscreeningsystem
7 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure2Secure1000SPunitsinRapiscanSystemsrsquostoragefacility
Weaccountedforall106Secure1000SPunitsandfoundnodiscrepancieswith theserialnumbersRapiscanSystemspersonnelunpackedtheunitssowecould verifytheserialnumbersFigure3showsthetwolargecratesandonesmall cratethatmakeuponecompleteunit
8 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
9 wwwoigdhsgov OIGͲ14Ͳ138
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
11 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
January2013theTSAAdministratordirectedtheremovalofallSecure1000SPunits fromairportsbecausetheycouldnotcomplywiththeFAAModernizationandReform ActrsquosprivacyrequirementsBecauseitwasunabletodevelopandsuccessfullytestATR RapiscanSystemsagreedtoassumeallcostsassociatedwiththeremovalshipping sanitizationofsensitiveinformationandstorageoftheunits ResultsofReview
CostsforSecure1000SPUnitsandSupportServicesTotaled$41653702
TitleVIoftheAmericanRecoveryandReinvestmentActauthorizedprocurement andinstallationofcheckedbaggageexplosivesdetectionsystemsandcheckpoint explosivesdetectionequipmentIn2009and2010TSAusedfundsunderthis authoritytopurchase251Secure1000SPunitsfromRapiscanSystemsfor $40077571TSAalsopurchasedtechnicalsupportservicestotaling$1576131 Thesupportservicesincluded
x anoperatortrainingcourse x aninstructortrainingcourse x anAITtrainingsimulator x engineeringandtechnicalsupportand x AITinstallationandmaintenance
CostsToDeploySecure1000SPUnitsCouldNotBeDetermined
TSAusesgovernmentcontractorstodeployairportsecurityequipmentTSA enteredintoanindefinitedeliveryindefinitequantitycontracttopurchase detectionsystemsequipmentandrelateddeploymentservicesThistypeof contractprovidesforanindefinitequantityofsuppliesorservicesoverafixed periodoftimeTSAsubmittedtaskordersforvariousAITunitsandservicesto includetheSecure1000SPunitsenhancedmetaldetectorsexplosivesdetection systemsandbaggagescreeningtechnology TSAcouldnotdeterminethecosttodeploySecure1000SPunitsbecausetask ordersdidnotsegregatecostsbutincludedatotalamountforvarioustypesof airportsecurityequipmentandtechnologydeployedInadditionthecostto deploySecure1000SPunitsincludedshipmenttothedesignatedairportfrom theTSALogisticsCenterinTexasthatisusedtostorescreeningequipment
3 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Deploymentcostsalsoincludedanyrequiredmodificationstoexisting checkpointareas TSAdeployed250ofthe251unitstoairportsTSAplacedtheremainingunitat theTransportationSecurityIntegrationFacility(TSIF)atReaganNationalAirport whereTSAconductsongoingtestingandevaluationofnewsecurityscreening systems RapiscanSystemsPaidToRemoveSanitizeandWarehouseTSArsquosSecure 1000SPInventory
AfterRapiscanSystemswasunabletodevelopandsuccessfullytestATR softwareitagreedtoassumeallcostsassociatedwith(1)removingtheunits fromtheairports(2)shippingunitstoaRapiscanSystemswarehouse (3)sanitizingsensitiveinformationand(4)storingtheSecure1000SPunitsuntil December2017
FromFebruarytoJune2013RapiscanSystemsrelocatedAITunitsfromairports toitsstoragefacilitylocatedinGarnerNorthCarolinaOneunitremainedatthe TSIFforuseinaradiationstudybytheNationalAcademyofSciencesOnAugust 62014RapiscanSystemsrelocatedthisunittoitsstoragefacilityinNorth Carolina TSADidNotHaveaSanitizationCertificateforOneUnit
TheTSAInformationAssuranceHandbookDecember2011andDepartmentof HomelandSecurity(DHS)SensitiveSystemsPolicyDirective4300ArequireTSAto sanitizeinformationsystemscontainingsensitiveinformationpriortothe disposalreuserecyclingortransferofcustodytoanyentityATSAwitness mustverifythesanitizationofsensitiveinformationInadditiontheTSAwitness andtheindividualperformingthesanitizationmustcertifyonTSAForm1412 MediaSanitizationCertificatetheremovalofsensitiveinformationfromthe
equipment
WereviewedMediaSanitizationCertificatesandsupportingdocumentationfor the250unitstransferredtoRapiscanSystemsrsquostoragefacilityTSAdidnothave documentationverifyingthatRapiscanSystemssanitizedsensitiveinformation fromoneoftheSecure1000SPunitsbeforeitwasdonatedtotheStateofNorth CarolinarsquosDivisionofSurplusPropertyonSeptember52013
4 wwwoigdhsgov OIGͲ14Ͳ138
OnMay142014weprovidedTSAwiththeserialnumberoftheunitforwhich itdidnothavesanitizationdocumentationTSAtookimmediateactionto mitigatethesecurityconcernandconfirmedthattheunitwasinawarehousein RaleighandthattheStateofNorthCarolinahadnotusedtheunitOnMay21 2014aTSATransportationEquipmentPropertyAdministratorandaRapiscan SystemstechnicianwenttotheNorthCarolinaDivisionofSurplusProperty warehouseandremovedtheunitrsquosharddrivefordestructionTSAprovidedthe MediaSanitizationCertificateconfirmingthatithadsanitizedtheunit TSACompliedwithPropertyTransferRequirements
TSArsquosdirectivesandregulationsthatgovernthetransferofpropertyarebased on41CFR101FederalPropertyManagementRegulationsand41CFR102 FederalManagementRegulationSpecificallyTSAManagementDirective20057 andDHSManagementDirective0565containpoliciesandprocedurestoprocess anddisposeofexcesspersonalproperty1WefoundthatTSAcompliedwith federalpropertytransferregulations TheGeneralServicesAdministration(GSA)hasdiscretionaryauthorityto prescribethenecessaryguidelinesforFederalagenciestoproperlydisposeof excesspersonalpropertyGSArsquosguidelinesrequirethatTSAdisposeofexcess personalpropertyby
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
x conductinganinternalscreeningandtransferringpropertytoanother
componentwithinTSAorDHS x transferringexcesspersonalpropertytoanotherFederalagencywithout
GSAapprovaliftotalacquisitioncostisnomorethan$10000perline item
x reportingexcesspersonalpropertytoGSA x conducting21Ͳdayscreening x offeringpersonalpropertytostateandlocalagenciesandorganizations x sellingittothepublic(ifeligible)and x abandoningdestroyingorrecyclingexcesspersonalproperty
1TSAdefinesexcesspersonalpropertyaspropertythatisnolongerrequiredtoaccomplishitsmission TSAdefinespersonalpropertyasalltangibleassetswiththeexceptionofrecordsandrealproperty whichareownedcontrolledorheldbytheagency
5 wwwoigdhsgov OIGͲ14Ͳ138
OnFebruary282013TSApostedtheunitsontheDHSAssetManagement SystemgivingDHScomponentspriorityandtheopportunitytosearchandselect theequipmentTSAlistedtheunitsontheDepartmentrsquosAssetManagement Systemfor15days OnMarch152013TSAreportedtheunitsasexcesspropertytoGSAthrough GSAXcessGSAXcessisawebsitethatprovidesagencieswithameansof reportingtoandprocuringexcesspersonalpropertyfromGSAelectronically OnceTSAreportedtheunitstoGSAFederalagenciesotherthanDHShad21 daystoselectanyunitsAttheendofthe21ͲdayperiodGSAdeclaredany unclaimedunitsassurpluspersonalproperty2 GSAofferedtheunitstostateandlocalagenciesfordonationStateandlocal agencieshad5daystosearchandallocateunitsasneededNormallyifnostate orlocalgovernmentagencyexpressesinterestinthepropertyafterthe5Ͳday allocationperiodexpiresGSAoffersthepropertyforsaletootherqualified recipientsForsecurityreasonsTSAchosenottooffertheSecure1000SPunits forsaletothegeneralpublicInsteadTSAaskedGSAtocontinueofferingthe unitstostateandlocalagenciesbyrepostingonGSAXcess SinceMay2013theSecure1000SPunitshavebeenavailabletostateandlocal governmentagenciesTSAwillcontinuetooffertheunitsonGSAXcessWhen TSAdeterminesthatthereisnofurtherdemandorRapiscanSystemsrsquoobligation tostoretheunitsendsTSAwilldestroytheremainingunits TSADonated165Secure1000SPUnitstoOtherGovernmentEntities
AsofAugust292014TSAdonated165Secure1000SPunitstootherFederal agenciesandstateandlocalentitiesTheUnitedStatesSecretServiceandthe NationalInstituteofStandardsandTechnologyeachacquiredoneunitThe UnitedStatesMintacquiredtwounitsStatepropertysurplusagenciesandlocal lawenforcementagenciesacquiredatotalof161units(seeappendixC)
TSApublicizedtheavailabilityoftheexcesspropertyForexampleTSAinformed allFederalNationalUtilizationOfficersandtheNationalAssociationforState AgenciesforSurplusPropertythatTSArsquosSecure1000SPunitswereavailablefor
2SurpluspersonalpropertymeansexcesspropertynolongerrequiredbyFederalagenciesasdetermined byGSA
6 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
donation3AdditionallyatTSArsquosrequestGSApostedtheunitsonthefrontpage oftheGSAXcesssystemforincreasedvisibility RapiscanSystemshasinformedothergovernmentagenciesabouttheavailable unitsRapiscanexecutivesreportedthatthecompanyutilizesitssalesstaffto advisestateandlocalgovernmentcustomersaboutacquiringSecure1000SP unitsthroughGSAXcessRapiscanalsooffersdiscountedmaintenancepackages VerificationofTSArsquosSecure1000SPInventory
ToverifyTSArsquoscurrentSecure1000SPinventorywecomparedlistsofserial numbersprovidedbyTSAandRapiscanSystemsforallunitsTSApurchasedWe crossͲcheckedthesewithpurchaseordersandshippingdocumentsand determinedthattheserialnumberswereaccurateAdditionallyTSAprovideda listofserialnumbersfor144unitsthatweredonatedtootherFederalstate andlocallawenforcementagencies OnMarch192014wevisitedtheTSIFtoreconciletheserialnumberforone unitAsnotedearliertheNationalAcademyofScienceswasusingthisunitina radiationstudyOnMarch272014wevisitedaRapiscanSystemsproduction facilitytoinventorySecure1000SPunitsatthelocationandverifytheirserial numbersThefacilityhadcontrolledaccessand24ͲhoursecurityTheunitswere storedinafencedinareaasshowninfigure2ThefencewasinstalledonMarch 262014
3FederalNationalUtilizationOfficersarepropertyofficerswithineachFederalagencywhocoordinate withGSAtoprovideuseraccessibilitytotheGSAXcessFederaldisposalandscreeningsystem
7 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure2Secure1000SPunitsinRapiscanSystemsrsquostoragefacility
Weaccountedforall106Secure1000SPunitsandfoundnodiscrepancieswith theserialnumbersRapiscanSystemspersonnelunpackedtheunitssowecould verifytheserialnumbersFigure3showsthetwolargecratesandonesmall cratethatmakeuponecompleteunit
8 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
9 wwwoigdhsgov OIGͲ14Ͳ138
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
11 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
Deploymentcostsalsoincludedanyrequiredmodificationstoexisting checkpointareas TSAdeployed250ofthe251unitstoairportsTSAplacedtheremainingunitat theTransportationSecurityIntegrationFacility(TSIF)atReaganNationalAirport whereTSAconductsongoingtestingandevaluationofnewsecurityscreening systems RapiscanSystemsPaidToRemoveSanitizeandWarehouseTSArsquosSecure 1000SPInventory
AfterRapiscanSystemswasunabletodevelopandsuccessfullytestATR softwareitagreedtoassumeallcostsassociatedwith(1)removingtheunits fromtheairports(2)shippingunitstoaRapiscanSystemswarehouse (3)sanitizingsensitiveinformationand(4)storingtheSecure1000SPunitsuntil December2017
FromFebruarytoJune2013RapiscanSystemsrelocatedAITunitsfromairports toitsstoragefacilitylocatedinGarnerNorthCarolinaOneunitremainedatthe TSIFforuseinaradiationstudybytheNationalAcademyofSciencesOnAugust 62014RapiscanSystemsrelocatedthisunittoitsstoragefacilityinNorth Carolina TSADidNotHaveaSanitizationCertificateforOneUnit
TheTSAInformationAssuranceHandbookDecember2011andDepartmentof HomelandSecurity(DHS)SensitiveSystemsPolicyDirective4300ArequireTSAto sanitizeinformationsystemscontainingsensitiveinformationpriortothe disposalreuserecyclingortransferofcustodytoanyentityATSAwitness mustverifythesanitizationofsensitiveinformationInadditiontheTSAwitness andtheindividualperformingthesanitizationmustcertifyonTSAForm1412 MediaSanitizationCertificatetheremovalofsensitiveinformationfromthe
equipment
WereviewedMediaSanitizationCertificatesandsupportingdocumentationfor the250unitstransferredtoRapiscanSystemsrsquostoragefacilityTSAdidnothave documentationverifyingthatRapiscanSystemssanitizedsensitiveinformation fromoneoftheSecure1000SPunitsbeforeitwasdonatedtotheStateofNorth CarolinarsquosDivisionofSurplusPropertyonSeptember52013
4 wwwoigdhsgov OIGͲ14Ͳ138
OnMay142014weprovidedTSAwiththeserialnumberoftheunitforwhich itdidnothavesanitizationdocumentationTSAtookimmediateactionto mitigatethesecurityconcernandconfirmedthattheunitwasinawarehousein RaleighandthattheStateofNorthCarolinahadnotusedtheunitOnMay21 2014aTSATransportationEquipmentPropertyAdministratorandaRapiscan SystemstechnicianwenttotheNorthCarolinaDivisionofSurplusProperty warehouseandremovedtheunitrsquosharddrivefordestructionTSAprovidedthe MediaSanitizationCertificateconfirmingthatithadsanitizedtheunit TSACompliedwithPropertyTransferRequirements
TSArsquosdirectivesandregulationsthatgovernthetransferofpropertyarebased on41CFR101FederalPropertyManagementRegulationsand41CFR102 FederalManagementRegulationSpecificallyTSAManagementDirective20057 andDHSManagementDirective0565containpoliciesandprocedurestoprocess anddisposeofexcesspersonalproperty1WefoundthatTSAcompliedwith federalpropertytransferregulations TheGeneralServicesAdministration(GSA)hasdiscretionaryauthorityto prescribethenecessaryguidelinesforFederalagenciestoproperlydisposeof excesspersonalpropertyGSArsquosguidelinesrequirethatTSAdisposeofexcess personalpropertyby
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
x conductinganinternalscreeningandtransferringpropertytoanother
componentwithinTSAorDHS x transferringexcesspersonalpropertytoanotherFederalagencywithout
GSAapprovaliftotalacquisitioncostisnomorethan$10000perline item
x reportingexcesspersonalpropertytoGSA x conducting21Ͳdayscreening x offeringpersonalpropertytostateandlocalagenciesandorganizations x sellingittothepublic(ifeligible)and x abandoningdestroyingorrecyclingexcesspersonalproperty
1TSAdefinesexcesspersonalpropertyaspropertythatisnolongerrequiredtoaccomplishitsmission TSAdefinespersonalpropertyasalltangibleassetswiththeexceptionofrecordsandrealproperty whichareownedcontrolledorheldbytheagency
5 wwwoigdhsgov OIGͲ14Ͳ138
OnFebruary282013TSApostedtheunitsontheDHSAssetManagement SystemgivingDHScomponentspriorityandtheopportunitytosearchandselect theequipmentTSAlistedtheunitsontheDepartmentrsquosAssetManagement Systemfor15days OnMarch152013TSAreportedtheunitsasexcesspropertytoGSAthrough GSAXcessGSAXcessisawebsitethatprovidesagencieswithameansof reportingtoandprocuringexcesspersonalpropertyfromGSAelectronically OnceTSAreportedtheunitstoGSAFederalagenciesotherthanDHShad21 daystoselectanyunitsAttheendofthe21ͲdayperiodGSAdeclaredany unclaimedunitsassurpluspersonalproperty2 GSAofferedtheunitstostateandlocalagenciesfordonationStateandlocal agencieshad5daystosearchandallocateunitsasneededNormallyifnostate orlocalgovernmentagencyexpressesinterestinthepropertyafterthe5Ͳday allocationperiodexpiresGSAoffersthepropertyforsaletootherqualified recipientsForsecurityreasonsTSAchosenottooffertheSecure1000SPunits forsaletothegeneralpublicInsteadTSAaskedGSAtocontinueofferingthe unitstostateandlocalagenciesbyrepostingonGSAXcess SinceMay2013theSecure1000SPunitshavebeenavailabletostateandlocal governmentagenciesTSAwillcontinuetooffertheunitsonGSAXcessWhen TSAdeterminesthatthereisnofurtherdemandorRapiscanSystemsrsquoobligation tostoretheunitsendsTSAwilldestroytheremainingunits TSADonated165Secure1000SPUnitstoOtherGovernmentEntities
AsofAugust292014TSAdonated165Secure1000SPunitstootherFederal agenciesandstateandlocalentitiesTheUnitedStatesSecretServiceandthe NationalInstituteofStandardsandTechnologyeachacquiredoneunitThe UnitedStatesMintacquiredtwounitsStatepropertysurplusagenciesandlocal lawenforcementagenciesacquiredatotalof161units(seeappendixC)
TSApublicizedtheavailabilityoftheexcesspropertyForexampleTSAinformed allFederalNationalUtilizationOfficersandtheNationalAssociationforState AgenciesforSurplusPropertythatTSArsquosSecure1000SPunitswereavailablefor
2SurpluspersonalpropertymeansexcesspropertynolongerrequiredbyFederalagenciesasdetermined byGSA
6 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
donation3AdditionallyatTSArsquosrequestGSApostedtheunitsonthefrontpage oftheGSAXcesssystemforincreasedvisibility RapiscanSystemshasinformedothergovernmentagenciesabouttheavailable unitsRapiscanexecutivesreportedthatthecompanyutilizesitssalesstaffto advisestateandlocalgovernmentcustomersaboutacquiringSecure1000SP unitsthroughGSAXcessRapiscanalsooffersdiscountedmaintenancepackages VerificationofTSArsquosSecure1000SPInventory
ToverifyTSArsquoscurrentSecure1000SPinventorywecomparedlistsofserial numbersprovidedbyTSAandRapiscanSystemsforallunitsTSApurchasedWe crossͲcheckedthesewithpurchaseordersandshippingdocumentsand determinedthattheserialnumberswereaccurateAdditionallyTSAprovideda listofserialnumbersfor144unitsthatweredonatedtootherFederalstate andlocallawenforcementagencies OnMarch192014wevisitedtheTSIFtoreconciletheserialnumberforone unitAsnotedearliertheNationalAcademyofScienceswasusingthisunitina radiationstudyOnMarch272014wevisitedaRapiscanSystemsproduction facilitytoinventorySecure1000SPunitsatthelocationandverifytheirserial numbersThefacilityhadcontrolledaccessand24ͲhoursecurityTheunitswere storedinafencedinareaasshowninfigure2ThefencewasinstalledonMarch 262014
3FederalNationalUtilizationOfficersarepropertyofficerswithineachFederalagencywhocoordinate withGSAtoprovideuseraccessibilitytotheGSAXcessFederaldisposalandscreeningsystem
7 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure2Secure1000SPunitsinRapiscanSystemsrsquostoragefacility
Weaccountedforall106Secure1000SPunitsandfoundnodiscrepancieswith theserialnumbersRapiscanSystemspersonnelunpackedtheunitssowecould verifytheserialnumbersFigure3showsthetwolargecratesandonesmall cratethatmakeuponecompleteunit
8 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
9 wwwoigdhsgov OIGͲ14Ͳ138
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
11 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OnMay142014weprovidedTSAwiththeserialnumberoftheunitforwhich itdidnothavesanitizationdocumentationTSAtookimmediateactionto mitigatethesecurityconcernandconfirmedthattheunitwasinawarehousein RaleighandthattheStateofNorthCarolinahadnotusedtheunitOnMay21 2014aTSATransportationEquipmentPropertyAdministratorandaRapiscan SystemstechnicianwenttotheNorthCarolinaDivisionofSurplusProperty warehouseandremovedtheunitrsquosharddrivefordestructionTSAprovidedthe MediaSanitizationCertificateconfirmingthatithadsanitizedtheunit TSACompliedwithPropertyTransferRequirements
TSArsquosdirectivesandregulationsthatgovernthetransferofpropertyarebased on41CFR101FederalPropertyManagementRegulationsand41CFR102 FederalManagementRegulationSpecificallyTSAManagementDirective20057 andDHSManagementDirective0565containpoliciesandprocedurestoprocess anddisposeofexcesspersonalproperty1WefoundthatTSAcompliedwith federalpropertytransferregulations TheGeneralServicesAdministration(GSA)hasdiscretionaryauthorityto prescribethenecessaryguidelinesforFederalagenciestoproperlydisposeof excesspersonalpropertyGSArsquosguidelinesrequirethatTSAdisposeofexcess personalpropertyby
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
x conductinganinternalscreeningandtransferringpropertytoanother
componentwithinTSAorDHS x transferringexcesspersonalpropertytoanotherFederalagencywithout
GSAapprovaliftotalacquisitioncostisnomorethan$10000perline item
x reportingexcesspersonalpropertytoGSA x conducting21Ͳdayscreening x offeringpersonalpropertytostateandlocalagenciesandorganizations x sellingittothepublic(ifeligible)and x abandoningdestroyingorrecyclingexcesspersonalproperty
1TSAdefinesexcesspersonalpropertyaspropertythatisnolongerrequiredtoaccomplishitsmission TSAdefinespersonalpropertyasalltangibleassetswiththeexceptionofrecordsandrealproperty whichareownedcontrolledorheldbytheagency
5 wwwoigdhsgov OIGͲ14Ͳ138
OnFebruary282013TSApostedtheunitsontheDHSAssetManagement SystemgivingDHScomponentspriorityandtheopportunitytosearchandselect theequipmentTSAlistedtheunitsontheDepartmentrsquosAssetManagement Systemfor15days OnMarch152013TSAreportedtheunitsasexcesspropertytoGSAthrough GSAXcessGSAXcessisawebsitethatprovidesagencieswithameansof reportingtoandprocuringexcesspersonalpropertyfromGSAelectronically OnceTSAreportedtheunitstoGSAFederalagenciesotherthanDHShad21 daystoselectanyunitsAttheendofthe21ͲdayperiodGSAdeclaredany unclaimedunitsassurpluspersonalproperty2 GSAofferedtheunitstostateandlocalagenciesfordonationStateandlocal agencieshad5daystosearchandallocateunitsasneededNormallyifnostate orlocalgovernmentagencyexpressesinterestinthepropertyafterthe5Ͳday allocationperiodexpiresGSAoffersthepropertyforsaletootherqualified recipientsForsecurityreasonsTSAchosenottooffertheSecure1000SPunits forsaletothegeneralpublicInsteadTSAaskedGSAtocontinueofferingthe unitstostateandlocalagenciesbyrepostingonGSAXcess SinceMay2013theSecure1000SPunitshavebeenavailabletostateandlocal governmentagenciesTSAwillcontinuetooffertheunitsonGSAXcessWhen TSAdeterminesthatthereisnofurtherdemandorRapiscanSystemsrsquoobligation tostoretheunitsendsTSAwilldestroytheremainingunits TSADonated165Secure1000SPUnitstoOtherGovernmentEntities
AsofAugust292014TSAdonated165Secure1000SPunitstootherFederal agenciesandstateandlocalentitiesTheUnitedStatesSecretServiceandthe NationalInstituteofStandardsandTechnologyeachacquiredoneunitThe UnitedStatesMintacquiredtwounitsStatepropertysurplusagenciesandlocal lawenforcementagenciesacquiredatotalof161units(seeappendixC)
TSApublicizedtheavailabilityoftheexcesspropertyForexampleTSAinformed allFederalNationalUtilizationOfficersandtheNationalAssociationforState AgenciesforSurplusPropertythatTSArsquosSecure1000SPunitswereavailablefor
2SurpluspersonalpropertymeansexcesspropertynolongerrequiredbyFederalagenciesasdetermined byGSA
6 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
donation3AdditionallyatTSArsquosrequestGSApostedtheunitsonthefrontpage oftheGSAXcesssystemforincreasedvisibility RapiscanSystemshasinformedothergovernmentagenciesabouttheavailable unitsRapiscanexecutivesreportedthatthecompanyutilizesitssalesstaffto advisestateandlocalgovernmentcustomersaboutacquiringSecure1000SP unitsthroughGSAXcessRapiscanalsooffersdiscountedmaintenancepackages VerificationofTSArsquosSecure1000SPInventory
ToverifyTSArsquoscurrentSecure1000SPinventorywecomparedlistsofserial numbersprovidedbyTSAandRapiscanSystemsforallunitsTSApurchasedWe crossͲcheckedthesewithpurchaseordersandshippingdocumentsand determinedthattheserialnumberswereaccurateAdditionallyTSAprovideda listofserialnumbersfor144unitsthatweredonatedtootherFederalstate andlocallawenforcementagencies OnMarch192014wevisitedtheTSIFtoreconciletheserialnumberforone unitAsnotedearliertheNationalAcademyofScienceswasusingthisunitina radiationstudyOnMarch272014wevisitedaRapiscanSystemsproduction facilitytoinventorySecure1000SPunitsatthelocationandverifytheirserial numbersThefacilityhadcontrolledaccessand24ͲhoursecurityTheunitswere storedinafencedinareaasshowninfigure2ThefencewasinstalledonMarch 262014
3FederalNationalUtilizationOfficersarepropertyofficerswithineachFederalagencywhocoordinate withGSAtoprovideuseraccessibilitytotheGSAXcessFederaldisposalandscreeningsystem
7 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure2Secure1000SPunitsinRapiscanSystemsrsquostoragefacility
Weaccountedforall106Secure1000SPunitsandfoundnodiscrepancieswith theserialnumbersRapiscanSystemspersonnelunpackedtheunitssowecould verifytheserialnumbersFigure3showsthetwolargecratesandonesmall cratethatmakeuponecompleteunit
8 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
9 wwwoigdhsgov OIGͲ14Ͳ138
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
11 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OnFebruary282013TSApostedtheunitsontheDHSAssetManagement SystemgivingDHScomponentspriorityandtheopportunitytosearchandselect theequipmentTSAlistedtheunitsontheDepartmentrsquosAssetManagement Systemfor15days OnMarch152013TSAreportedtheunitsasexcesspropertytoGSAthrough GSAXcessGSAXcessisawebsitethatprovidesagencieswithameansof reportingtoandprocuringexcesspersonalpropertyfromGSAelectronically OnceTSAreportedtheunitstoGSAFederalagenciesotherthanDHShad21 daystoselectanyunitsAttheendofthe21ͲdayperiodGSAdeclaredany unclaimedunitsassurpluspersonalproperty2 GSAofferedtheunitstostateandlocalagenciesfordonationStateandlocal agencieshad5daystosearchandallocateunitsasneededNormallyifnostate orlocalgovernmentagencyexpressesinterestinthepropertyafterthe5Ͳday allocationperiodexpiresGSAoffersthepropertyforsaletootherqualified recipientsForsecurityreasonsTSAchosenottooffertheSecure1000SPunits forsaletothegeneralpublicInsteadTSAaskedGSAtocontinueofferingthe unitstostateandlocalagenciesbyrepostingonGSAXcess SinceMay2013theSecure1000SPunitshavebeenavailabletostateandlocal governmentagenciesTSAwillcontinuetooffertheunitsonGSAXcessWhen TSAdeterminesthatthereisnofurtherdemandorRapiscanSystemsrsquoobligation tostoretheunitsendsTSAwilldestroytheremainingunits TSADonated165Secure1000SPUnitstoOtherGovernmentEntities
AsofAugust292014TSAdonated165Secure1000SPunitstootherFederal agenciesandstateandlocalentitiesTheUnitedStatesSecretServiceandthe NationalInstituteofStandardsandTechnologyeachacquiredoneunitThe UnitedStatesMintacquiredtwounitsStatepropertysurplusagenciesandlocal lawenforcementagenciesacquiredatotalof161units(seeappendixC)
TSApublicizedtheavailabilityoftheexcesspropertyForexampleTSAinformed allFederalNationalUtilizationOfficersandtheNationalAssociationforState AgenciesforSurplusPropertythatTSArsquosSecure1000SPunitswereavailablefor
2SurpluspersonalpropertymeansexcesspropertynolongerrequiredbyFederalagenciesasdetermined byGSA
6 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
donation3AdditionallyatTSArsquosrequestGSApostedtheunitsonthefrontpage oftheGSAXcesssystemforincreasedvisibility RapiscanSystemshasinformedothergovernmentagenciesabouttheavailable unitsRapiscanexecutivesreportedthatthecompanyutilizesitssalesstaffto advisestateandlocalgovernmentcustomersaboutacquiringSecure1000SP unitsthroughGSAXcessRapiscanalsooffersdiscountedmaintenancepackages VerificationofTSArsquosSecure1000SPInventory
ToverifyTSArsquoscurrentSecure1000SPinventorywecomparedlistsofserial numbersprovidedbyTSAandRapiscanSystemsforallunitsTSApurchasedWe crossͲcheckedthesewithpurchaseordersandshippingdocumentsand determinedthattheserialnumberswereaccurateAdditionallyTSAprovideda listofserialnumbersfor144unitsthatweredonatedtootherFederalstate andlocallawenforcementagencies OnMarch192014wevisitedtheTSIFtoreconciletheserialnumberforone unitAsnotedearliertheNationalAcademyofScienceswasusingthisunitina radiationstudyOnMarch272014wevisitedaRapiscanSystemsproduction facilitytoinventorySecure1000SPunitsatthelocationandverifytheirserial numbersThefacilityhadcontrolledaccessand24ͲhoursecurityTheunitswere storedinafencedinareaasshowninfigure2ThefencewasinstalledonMarch 262014
3FederalNationalUtilizationOfficersarepropertyofficerswithineachFederalagencywhocoordinate withGSAtoprovideuseraccessibilitytotheGSAXcessFederaldisposalandscreeningsystem
7 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure2Secure1000SPunitsinRapiscanSystemsrsquostoragefacility
Weaccountedforall106Secure1000SPunitsandfoundnodiscrepancieswith theserialnumbersRapiscanSystemspersonnelunpackedtheunitssowecould verifytheserialnumbersFigure3showsthetwolargecratesandonesmall cratethatmakeuponecompleteunit
8 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
9 wwwoigdhsgov OIGͲ14Ͳ138
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
11 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
donation3AdditionallyatTSArsquosrequestGSApostedtheunitsonthefrontpage oftheGSAXcesssystemforincreasedvisibility RapiscanSystemshasinformedothergovernmentagenciesabouttheavailable unitsRapiscanexecutivesreportedthatthecompanyutilizesitssalesstaffto advisestateandlocalgovernmentcustomersaboutacquiringSecure1000SP unitsthroughGSAXcessRapiscanalsooffersdiscountedmaintenancepackages VerificationofTSArsquosSecure1000SPInventory
ToverifyTSArsquoscurrentSecure1000SPinventorywecomparedlistsofserial numbersprovidedbyTSAandRapiscanSystemsforallunitsTSApurchasedWe crossͲcheckedthesewithpurchaseordersandshippingdocumentsand determinedthattheserialnumberswereaccurateAdditionallyTSAprovideda listofserialnumbersfor144unitsthatweredonatedtootherFederalstate andlocallawenforcementagencies OnMarch192014wevisitedtheTSIFtoreconciletheserialnumberforone unitAsnotedearliertheNationalAcademyofScienceswasusingthisunitina radiationstudyOnMarch272014wevisitedaRapiscanSystemsproduction facilitytoinventorySecure1000SPunitsatthelocationandverifytheirserial numbersThefacilityhadcontrolledaccessand24ͲhoursecurityTheunitswere storedinafencedinareaasshowninfigure2ThefencewasinstalledonMarch 262014
3FederalNationalUtilizationOfficersarepropertyofficerswithineachFederalagencywhocoordinate withGSAtoprovideuseraccessibilitytotheGSAXcessFederaldisposalandscreeningsystem
7 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure2Secure1000SPunitsinRapiscanSystemsrsquostoragefacility
Weaccountedforall106Secure1000SPunitsandfoundnodiscrepancieswith theserialnumbersRapiscanSystemspersonnelunpackedtheunitssowecould verifytheserialnumbersFigure3showsthetwolargecratesandonesmall cratethatmakeuponecompleteunit
8 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
9 wwwoigdhsgov OIGͲ14Ͳ138
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
11 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure2Secure1000SPunitsinRapiscanSystemsrsquostoragefacility
Weaccountedforall106Secure1000SPunitsandfoundnodiscrepancieswith theserialnumbersRapiscanSystemspersonnelunpackedtheunitssowecould verifytheserialnumbersFigure3showsthetwolargecratesandonesmall cratethatmakeuponecompleteunit
8 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
9 wwwoigdhsgov OIGͲ14Ͳ138
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
11 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
SourceOIG
Figure3ASecure1000SPunitinstoragepackingcrates
RapiscanSystemsofficialssaidTSAmustauthorizethereleaseofeachunitTSA providesRapiscanSystemswithatransferorderspecifyingthequantityand serialnumbersoftheunitsselectedforreleaseaswellasthenameofthe intendedrecipient
SinceourinventoryofRapiscanSystemsrsquofacilityinMarch2014TSAhasdonated 15unitstotheStateofArkansas3unitstotheStateofCalifornia1unittothe StateofLouisiana1unittotheStateofOhioand1unittotheStateof WashingtonInadditionRapiscanSystemsreceivedauthorizationfromTSAto relocatetheunitstoaleasedwarehouseinRaleighNorthCarolinaAsofApril 262014RapiscanSystemshasmovedalloftheunitstothisnewlocationOn August62014RapiscanSystemsrelocatedtheSecure1000SPattheTSIFtothis location
9 wwwoigdhsgov OIGͲ14Ͳ138
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
11 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
AppendixA ObjectivesScopeandMethodology TheDepartmentofHomelandSecurity(DHS)OfficeofInspectorGeneral(OIG)was establishedbytheHomelandSecurityActof2002(PublicLaw107о296)byamendment totheInspectorGeneralActof1978Thisisoneofaseriesofauditinspectionand specialreportspreparedaspartofouroversightresponsibilitiestopromoteeconomy efficiencyandeffectivenesswithintheDepartment WeconductedthisreviewinresponsetoarequestfromRepresentativeBennieG ThompsonRankingMemberCommitteeonHomelandSecurityOurobjectiveswereto determine(1)thecosttopurchasedeployandremovetheSecure1000SPunits(2)the totalstoragecostfortheunitsandanytransportationcostsassociatedwiththeir transfertoandremovalfromairports(3)thenumberofunitsthatwereremovedfrom theairports(4)whethertheunitswerepurchasedwithAmericanRecoveryand ReinvestmentActfunding(5)whetherTSAhasidentifiedcustomersfortheunitsno longerinuseatairportsand(6)whetherTSAcompliedwithallregulationsgoverning thetransferofpropertybysaleordonationtoothergovernmentagencies Wereviewedapplicablelawsregulationsandguidanceconcerningthemanagementof TSArsquosSecure1000SPunitsWereviewedacquisitiondeploymentandcontract documentationaswellasinventoryandsanitationrecordsfortheunitsInadditionwe reviewedourpriorreportsandUSGovernmentAccountabilityOfficereportson advancedimagingtechnology WeinterviewedTSAheadquartersstaffresponsiblefortheacquisitiondeployment removalanddisposaloftheSecure1000SPunitsWeinterviewedofficialsfrom RapiscanSystemsconcerningtheirroleinthelifecycleoftheunitsfromthetimethey werepurchasedtotheirstorageordonationInadditionweinterviewedGSAofficials concerningtheirroleinthedisposaloftheunitsWevisitedtheTransportationSecurity IntegrationFacilitytoverifytheserialnumberoftheunitlocatedthereWetraveledto GarnerNorthCarolinatointerviewRapiscanSystemsofficialsconcerningthestorage oftheunitsandtoverifythequantityandserialnumbersoftheunitswarehoused thereWeconductedourfieldworkfromFebruary2014toJuly2014 WeconductedthisreviewundertheauthorityoftheInspectorGeneralActof1978as amendedandaccordingtotheQualityStandardsforInspectionsissuedbytheCouncil oftheInspectorsGeneralonIntegrityandEfficiency
10 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
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OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixB ManagementCommentstotheDraft
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OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
12 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
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OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixC Secure1000SPUnitsDonatedtoStatePropertySurplusAgencies andLocalLawEnforcementAgencies
RecipientName Number Received
BerrienCountySheriffrsquosOfficeMichigan 1 BranchCountySheriffrsquosOfficeMichigan 1 CassCountySheriffrsquosOfficeMichigan 1 DoolyCountySheriffrsquosOfficeGeorgia 1
GrandTraversCountySheriffrsquosOfficeMichigan 1 InghamCountySheriffrsquosOfficeMichigan 1
IowaFederalSurplusProperty 14 JacksonCountySheriffrsquosOfficeMichigan 1
KalamazooCountySheriffrsquosOfficeMichigan 2 KentCountySheriffrsquosOfficeMichigan 1 LapeerCountySheriffrsquosOfficeMichigan 1
LivingstonCountySheriffrsquosOfficeMichigan 2 LivingstonCountySheriffrsquosOfficeNewYork 5
LivoniaPoliceDepartmentMichigan 2 MackinacCountySheriffrsquosOfficeMichigan 1 MonroeCountySheriffrsquosOfficeMichigan 2
MontmorencyCountySheriffrsquosOfficeMichigan 1 MuskegonCountySheriffrsquosOfficeMichigan 2 NewaygoCountySheriffrsquosOfficeMichigan 1
NewHampshireSurplusDistribution(Brentwood) 1 NewHampshireSurplusDistribution(Dover) 1
NewHampshireSurplusDistribution(Manchester) 1 NorthvilleTownshipPoliceDepartmentMichigan 1
OaklandCountySheriffrsquosOfficeMichigan 2 OceanaCountySheriffrsquosOfficeMichigan 1 StClairCountySheriffrsquosOfficeMichigan 2
StateofArkansas 15 StateofCalifornia 3 StateofKansas 1
StateofLouisiana 1 StateofMichigan 2
StateofMississippi(Leakman) 6 StateofMississippi(Parchman) 6
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OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
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OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
RecipientName Number
Received StateofMississippi(Pearl) 5 StateofNorthCarolina 35 StateofSouthCarolina 17
StateofTexasFederalSurplusPropertyDivision 8 StateofVirginiaSurplusPropertyAgency 8 StateofWashingtonSurplusOperations 1 SteubenCountySheriffrsquosOfficeNewYork 2
SummitCountySheriffrsquosOfficeOhio 1 Total 161
13 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
AppendixD MajorContributorstoThisReport WilliamJMcCarronChiefInspector WayneAEkbladLeadInspector MichaelABrooksInspector NicholasPKetterInspector
14 wwwoigdhsgov OIGͲ14Ͳ138
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
AppendixE ReportDistribution
DepartmentofHomeland Secretary DeputySecretary ChiefofStaff DeputyChiefofStaff GeneralCounsel ExecutiveSecretary DirectorGAOOIGLiaisonOffice AssistantSecretaryforOfficeofPolicy AssistantSecretaryforOfficeofPublicAffairs AssistantSecretaryforOfficeofLegislativeAffairs RespectiveComponentHeadifnottheAddressee DHSComponentLiaison DirectorofLocalAffairsOfficeofIntergovernmentalAffairs ChiefPrivacyOfficer OfficeofManagementandBudget ChiefHomelandSecurityBranch DHSOIGBudgetExaminer Congress TheHonorableBennieGThompsonRankingMemberCommitteeonHomeland
Security CongressionalOversightandAppropriationsCommitteesasappropriate
15 wwwoigdhsgov OIGͲ14Ͳ138
OFFICE OF INSPECTOR GENERAL Department of Homeland Security
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
ADDITIONAL INFORMATION To view this and any of our other reports please visit our website at wwwoigdhsgov For further information or questions please contact Office of Inspector General (OIG) Office of Public Affairs at DHS-OIGOfficePublicAffairsoigdhsgov or follow us on Twitter at dhsoig OIG HOTLINE To expedite the reporting of alleged fraud waste abuse or mismanagement or any other kinds of criminal or noncriminal misconduct relative to Department of Homeland Security (DHS) programs and operations please visit our website at wwwoigdhsgov and click on the red tab titled Hotline to report You will be directed to complete and submit an automated DHS OIG Investigative Referral Submission Form Submission through our website ensures that your complaint will be promptly received and reviewed by DHS OIG Should you be unable to access our website you may submit your complaint in writing to
Department of Homeland Security Office of Inspector General Mail Stop 0305 Attention Office of Investigations Hotline 245 Murray Drive SW Washington DC 20528-0305
You may also call 1(800) 323-8603 or fax the complaint directly to us at (202) 254-4297 The OIG seeks to protect the identity of each writer and caller
