F-35 Joint Strike Fighter: DOD Needs to Update Modernization Schedule and Improve Data on Software Development

What GAO Found

The Department of Defense (DOD) delayed the completion of key testing until problems with the F-35 aircraft simulator are resolved, which GAO also reported last year, and will again delay its full-rate production decision. In August 2020, the program office determined the aircraft simulator—to be used to replicate complex test scenarios that could not be accomplished in real-world environment testing—did not fully represent F-35 capabilities and could not be used for further testing until fixed. Since then, program officials have been developing a new plan to ensure the simulator works as intended. Until they finalize the plan and fix the simulator, the next production milestone date—which would formally authorize DOD’s transition from development to full production—remains undetermined (see figure).

F-35 Operational Test Schedule and Key Events through 2021, as of November 2020

DOD is now in its third year of its modernization effort, known as Block 4, to upgrade the hardware and software of the aircraft. While DOD added another year to the schedule, GAO found the remaining development time frame is not achievable. The program routinely underestimated the amount of work needed to develop Block 4 capabilities, which has resulted in delays, and has not reflected historical performance into its remaining work schedule. Unless the F-35 program accounts for historical performance in the schedule estimates, the Block 4 schedule will continue to exceed estimated time frames and stakeholders will lack reliable information on when capabilities will be delivered.

GAO found the F-35 program office collects data on many Block 4 software development metrics, a key practice from GAO’s Agile Assessment Guide, but has not met two other key practices for monitoring software development progress. Specifically, the F-35 program office has not implemented tools to enable automated data collection on software development performance, a key practice. The program’s primary reliance on the contractor’s monthly reports, often based on older data, has hindered program officials’ timely decision-making. The program office has also not set software quality performance targets, inconsistent with another key practice. Without these targets, the program office is less able to assess whether the contractor has met acceptable quality performance levels.

Why GAO Did This Study

The F-35 Lightning II Joint Strike Fighter program remains DOD’s most expensive weapon system program. DOD is 3 years into a development effort that is loosely based on Agile software development processes to modernize the F-35 aircraft’s capabilities. With this approach, DOD intends to incrementally develop, test, and deliver small groups of new capabilities every 6 months. Congress included provisions in two statutes for GAO to review the F-35 program.

This report addresses the F-35 operational testing status, DOD’s Block 4 modernization development schedule, and how the F-35 program office implements key practices for evaluating Agile software development progress. To assess cost and schedule concerns identified in prior years, GAO selected three key practices that focus on evaluating Agile software development progress. GAO reviewed DOD and contractor documentation and interviewed DOD officials and contractor representatives.

More from:

Hits: 0

News Network

  • Man Purchased Lamborghini After Receiving $3.9 Million in PPP Loans
    In Crime News
    A Florida man pleaded guilty today for fraudulently obtaining approximately $3.9 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase a $318,000 Lamborghini sports car for himself. Authorities seized the Lamborghini and $3.4 million from the bank accounts of David T. Hines, 29, of Miami, at the time of his arrest. Hines pleaded guilty today to one count of wire fraud and is scheduled to be sentenced on April 14.
    [Read More…]
  • Readout of Attorney General William P. Barr’s Visits to Chicago and Phoenix
    In Crime News
    This week, Attorney General William P. Barr traveled to Chicago, Illinois, and Phoenix, Arizona, to announce updates on Operation Legend and the results of Operation Crystal Shield, respectively.
    [Read More…]
  • Cameroonian Operator Charged in Fraudulent Online “Puppy Scam” that Exploited the COVID-19 Pandemic
    In Crime News
    A criminal complaint unsealed Friday in federal court in Pittsburgh charges Desmond Fodje Bobga for his alleged involvement in a puppy fraud scheme perpetrated against American consumers.  Fodje Bobga, 27, is a citizen of Cameroon who is in Romania on a visa to attend a university there. 
    [Read More…]
  • Four Individuals Plead Guilty to RICO Conspiracy Involving “Bulletproof Hosting” for Cybercriminals
    In Crime News
    Four Eastern European nationals have pleaded guilty to conspiring to engage in a Racketeer Influenced Corrupt Organization (RICO) arising from their providing “bulletproof hosting” services between 2008 and 2015, which were used by cybercriminals to distribute malware and attack financial institutions and victims throughout the United States.
    [Read More…]
  • Justice Department Settles with Transportation and Logistics Company to Resolve Immigration-Related Discrimination Claims
    In Crime News
    The Justice Department announced today that it reached a settlement with IAS Logistics DFW LLC, d/b/a Pinnacle Logistics (Pinnacle Logistics), a transportation and logistics company headquartered in Fort Worth, Texas.  
    [Read More…]
  • Organ Donation and Transplantation: We’re All Needed
    In Human Health, Resources and Services
    As the Nation’s Doctor, [Read More…]
  • Australia Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • Cayman Islands Travel Advisory
    In Travel
    Reconsider travel to the [Read More…]
  • DA investigator indicted on drug and money laundering charges
    In Justice News
    An investigator with the [Read More…]
  • Naturalized U.S. Citizen from Ethiopia Arrested on Charge of Fraudulently Obtaining Citizenship
    In Crime News
    A Georgia man has been arrested on criminal charges related to allegations that he lied to obtain U.S. citizenship.
    [Read More…]
  • Opening Remarks by Secretary of State Antony J. Blinken Before the House Committee on Foreign Affairs
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Norwegian National Day
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Russia Travel Advisory
    In Travel
    Do not travel to Russia [Read More…]
  • Public Designation of Oligarch and Former Ukrainian Public Official Ihor Kolomoyskyy Due to Involvement in Significant Corruption
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Maine Man Sentenced for Federal Hate Crime Convictions
    In Crime News
    The Justice Department today announced the sentencing of Maurice Diggins, 36, of Biddeford, Maine, in federal court for his role in a series of racially motivated assaults against black men in Maine.
    [Read More…]
  • Secretary Blinken’s Call with Tajikistan Foreign Minister Muhriddin
    In Crime Control and Security News
    Office of the [Read More…]
  • Federal Contracting: Actions Needed to Improve Department of Labor’s Enforcement of Service Worker Wage Protections
    In U.S GAO News
    The Department of Labor (DOL) completed over 5,000 Service Contract Act (SCA) cases, which for many resulted in the awarding of back wages to federally contracted security guards, janitors, and other service workers, in fiscal years 2014 through 2019, according to available data. DOL enforces the SCA, which was enacted to protect workers on certain types of federal service contracts. DOL found SCA violations—primarily of wage and benefit protections—in 68 percent of cases. Employers across a range of service industries agreed to pay around $224 million in back wages (see figure for examples). Sixty cases resulted in debarment—a decision to prevent an employer from being awarded new federal contracts for 3 years. DOL's strategic plan emphasizes optimizing resources for resolving cases using all available enforcement tools. However, DOL does not analyze its use of enforcement tools, such as debarment or employer compliance agreements. Therefore, DOL may lack a complete picture of how it uses resources on different strategies for resolving SCA cases, as well as the effectiveness of these enforcement strategies. Back Wages Paid for SCA Cases in Example Industries, Fiscal Years 2014-2019 Note: Mail haul refers to surface mail transportation by contract carriers. Values are adjusted for inflation and expressed in fiscal year 2019 dollars using the Gross Domestic Product Price Index from the U.S. Department of Commerce, Bureau of Economic Analysis. DOL reported various challenges to enforcing the SCA, including difficulty communicating with contracting agencies. For example, DOL officials told GAO that poor communication with contracting agencies—particularly with the U.S. Postal Service (USPS)—can affect and delay cases, though USPS officials told GAO they were unaware of any communication gaps. Without addressing communication issues between USPS and DOL, USPS's implementation and DOL's enforcement of the SCA may be weakened. GAO found that contracting agencies may face SCA implementation challenges, including not having key information about SCA debarments and violations from DOL. When recording SCA debarments, DOL does not always include the unique identifier for an employer so that contracting agencies can accurately identify debarred firms. DOL also does not have a process that consistently or reliably informs contracting agencies about SCA violations by employers. Without improved information sharing by DOL, an agency may award a contract to an employer without being aware of or considering its past SCA violations. The SCA ensures that service workers on certain federal contracts receive pay and benefits that reflect current employment conditions in their locality. From fiscal years 2014 through 2019, the U.S. government obligated over $720 billion on service contracts covered under the SCA. GAO was asked to review SCA implementation and enforcement. This report examines (1) what available data reveal about past SCA cases, (2) what challenges DOL reports facing in enforcing the SCA, and (3) how contracting agencies implement the SCA. GAO analyzed DOL and federal procurement data for fiscal years 2014 through 2019, the most recent years available; reviewed a nongeneralizable sample of contract performance assessments; examined practices at three agencies selected to represent a range of contracting services and agency size; interviewed DOL officials; and reviewed relevant federal laws, policy, and guidance. GAO is making six recommendations, including that DOL analyze its use of enforcement tools; that DOL and USPS implement written protocols to improve communication with each other; and that DOL improve its information sharing with contracting agencies on SCA debarments and investigation outcomes. DOL and USPS generally concurred with the recommendations. For more information, contact Thomas M. Costa at (202) 512-7215 or costat@gao.gov.
    [Read More…]
  • NASA’s AIRS Monitors Tropical Storm Fay as It Deluges the East Coast
    In Space
    From its vantage point [Read More…]
  • Medical Device Maker Merit Medical To Pay $18 Million To Settle Allegations Of Improper Payments To Physicians
    In Crime News
    Medical device maker Merit Medical Systems Inc. (MMSI), of South Jordan, Utah, has agreed to pay $18 million to resolve allegations that the company caused the submission of false claims to the Medicare, Medicaid, and TRICARE programs by paying kickbacks to physicians and hospitals to induce the use of MMSI products, the Department of Justice announced today. 
    [Read More…]
  • Defendant Pleads Guilty In Multi-Million Dollar Prize Notification Scam Affecting Elderly Victims
    In Crime News
    A Las Vegas area resident charged with perpetrating a prize-notification scheme that bilked victims out of more than $10 million pleaded guilty today, the Department of Justice announced.
    [Read More…]
  • Some Courts Slow Reopening Plans as COVID Cases Rise
    In U.S Courts
    At a time when some states are backtracking on plans to restore business and government operations, a number of federal courts also are slowing plans to reopen courthouse doors as coronavirus (COVID-19) case numbers escalate in many states. In recent weeks, federal courts, especially in Sun Belt “hot spot” states, have issued orders extending courthouse closures, postponement of jury trials, and the use of video and teleconferencing for most or all proceedings. Most of the orders cited rising COVID-19 numbers.
    [Read More…]
  • Justice Department Settles Retaliation Claim Against Florida Electrician Company
    In Crime News
    The Justice Department today announced that it reached a settlement agreement with Service Minds Inc., dba Mister Sparky (Service Minds), a company that provides contract electrical services to residential customers in Florida and Alabama. The settlement resolves a claim that the company retaliated against a work-authorized job applicant, in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA), when he and his wife challenged a U.S. citizens-only hiring rule that a recruiter had wrongly claimed was the company’s policy.
    [Read More…]
  • Alaska Defendant Pleads Guilty for Threatening Los Angeles Synagogue
    In Crime News
    An Alaska defendant pleaded guilty today to making threats to a synagogue and attempting to obstruct the free exercise of religious beliefs in Los Angeles, California.
    [Read More…]
  • 2021 Investment Climate Statements Released
    In Crime Control and Security News
    Office of the [Read More…]
  • The United States Announces New Assistance to Respond to the Rohingya Humanitarian Crisis
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Fake Title – Maintenance (4/18)
    In U.S GAO News
    GAO Email Notification Test We are testing our notification distribution process for GAO reports. If you are able to read this information the link contained in the email notification link worked. Please confirm that you received the email notification from GAOReports@gao.gov and used the link to access the prepublication site by contacting Andrea Thomas at thomasa@gao.gov (202) 512-3147 John Miller at millerj@gao.gov (202) 512-3672 Thank you
    [Read More…]
  • Indonesian Company Admits To Deceiving U.S. Banks In Order To Trade With North Korea, Agrees To Pay A Fine Of More Than $1.5 Million
    In Crime News
    A global supplier of cigarette paper products, PT Bukit Muria Jaya (“BMJ”), has agreed to pay a fine of $1,561,570 and enter into a deferred prosecution agreement with the Justice Department for conspiring to commit bank fraud in connection with the shipment of products to North Korean customers. BMJ, which is incorporated in Indonesia, has also entered into a settlement agreement with the Treasury Department’s Office of Foreign Assets Control (“OFAC”).
    [Read More…]
  • History, Ambition, and Technology: The Chinese Communist Party’s Challenges to U.S. Export Control Policy
    In Crime Control and Security News
    Dr. Christopher Ashley [Read More…]
  • United States Reaches Proposed Settlement with Ranch Owner to Restore Creek and Wetlands and Pay Damages for Trespass
    In Crime News
    The U.S. Department of Justice, U.S. Environmental Protection Agency (EPA) and Bureau of Land Management (BLM) announced that they have reached a proposed settlement with John Raftopoulos, Diamond Peak Cattle Company LLC and Rancho Greco Limited LLC (collectively, the defendants) to resolve violations of the Clean Water Act (CWA) and the Federal Land Policy and Management Act (FLPMA) involving unauthorized discharges of dredged or fill material into waters of the United States and trespass on federal public lands in northwest Moffat County, Colorado.
    [Read More…]
  • Iceland Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • North Carolina Man Sentenced for COVID-19 Relief Fraud Schemes
    In Crime News
    A North Carolina man was sentenced today to 63 months in prison for perpetrating three fraud schemes between March and July 2020 connected to the COVID-19 pandemic, through which he defrauded consumers and the federal government’s Economic Injury Disaster Loan program (EIDL), created to assist small business owners during the pandemic.
    [Read More…]
  • Canadian National Sentenced for Human Smuggling Conspiracy
    In Crime News
    A Canadian national was sentenced to 32 months in prison for conspiracy to bring undocumented immigrants to the United States for private financial gain in connection with his role in a scheme to smuggle undocumented immigrants from Sri Lanka through the Caribbean and into the United States.
    [Read More…]
  • Sexual Harassment: NNSA Could Improve Prevention and Response Efforts in Its Nuclear Security Forces
    In U.S GAO News
    What GAO Found The National Nuclear Security Administration (NNSA)—within the Department of Energy (DOE)—and its contractors may have limited information on the prevalence of sexual harassment within the nuclear security forces. NNSA's nuclear security forces include federal agents in NNSA's Office of Secure Transportation (OST), which is responsible for transporting nuclear materials, and contracted guard forces at four of its sites. Federal officials at NNSA and contractor representatives at four NNSA sites that process weapons-usable nuclear material reported very few cases of sexual harassment from fiscal years 2015 through 2020. Research shows that the least common response to harassment is to report it or file a complaint. The U.S. Equal Employment Opportunity Commission (EEOC)—which enforces federal laws prohibiting harassment—suggests organizations survey employees to assess the extent to which harassment is a problem in their organization. NNSA does not survey employees on this topic, nor does NNSA call for such surveys in its contracts for security forces. Because NNSA relies solely on reported incidents, it may not have full knowledge into the nature or extent of sexual harassment in OST or by its contractors at its sites. Surveying employees would better position them to identify actions to effectively prevent and respond to harassment. To varying degrees, NNSA and its contractors follow EEOC's recommended practices to prevent and respond to sexual harassment in their nuclear security forces. For example, with respect to recommended training practices, NNSA and its contractors provide antiharassment training to all employees, but only one force offers workplace-specific training that addresses sexual harassment risk factors relevant to the security forces. Because NNSA has not formally reviewed EEOC's practices and considered which to adopt for its nuclear security forces, or made similar considerations for its security force contractors, the agency may be missing opportunities to prevent and respond to sexual harassment. Selected EEOC Practices for Effective Training to Prevent and Respond to Sexual Harassment and Number of NNSA's Nuclear Security Forces That Reflect Those Practices in Training EEOC Promising Practice Number of forces that reflect the practice Provided to employees at every level and location of the organization 5 of 5 Tailored to the specific workplace and workforce 1 of 5 Explains the complaint process, as well as any voluntary alternative dispute resolution processes 2 of 5 Explains the range of possible consequences for engaging in prohibited conduct 1 of 5 Source: GAO comparison of National Nuclear Security Administration (NNSA) and protective force contractor information with the U.S. Equal Employment Opportunity Commission's (EEOC) November 2017 Promising Practices for Preventing Harassment . | GAO-21-307 EEOC has found that NNSA and DOE do not meet all EEOC requirements relevant to preventing and responding to sexual harassment. For example, NNSA does not have an antiharassment program or a compliant antiharassment policy. According to EEOC officials, NNSA and DOE efforts to date have improved some aspects of their EEO programs, but because the agencies have not fully implemented their plans to address deficiencies identified by EEOC, DOE and NNSA may be missing opportunities to establish and maintain effective programs that include protection from and response to sexual harassment. Why GAO Did This Study Federal law prohibits sexual harassment in the workplace. Besides being harmful to those harassed, sexual harassment can decrease organizational performance and increase turnover. In January 2019, public allegations of sexual harassment in NNSA's nuclear security forces drew attention to this issue. House Report 116-120 provided that GAO review sexual harassment in NNSA's nuclear security force. This report examines (1) what NNSA and its contractors know about the prevalence of sexual harassment in their nuclear security forces, (2) the extent to which NNSA and its contractors implement EEOC recommendations to prevent and respond to sexual harassment, and (3) the extent to which EEOC found that NNSA and DOE meet its requirements relevant to sexual harassment. GAO reviewed information on sexual harassment and programs to address such harassment at DOE and NNSA from fiscal years 2015 through 2020. GAO analyzed documents and data, conducted a literature review, interviewed NNSA officials, and compared NNSA and contractor actions with EEOC-recommended practices for preventing harassment.
    [Read More…]
  • Statement of Attorney General Merrick B. Garland on World Elder Abuse Awareness Day
    In Crime News
    U.S. Attorney General Merrick B. Garland today made the following statement in honor of World Elder Abuse Awareness Day:
    [Read More…]
  • COVID-19: HHS Should Clarify Agency Roles for Emergency Return of U.S. Citizens during a Pandemic
    In U.S GAO News
    What GAO Found At the beginning of the COVID-19 pandemic, the U.S. returned, or repatriated, about 1,100 U.S. citizens from abroad and quarantined them domestically to prevent the spread of COVID-19. The Department of Health and Human Services (HHS) experienced coordination and safety issues that put repatriates, HHS personnel, and nearby communities at risk. This occurred because HHS component agencies—the Administration for Children and Families, the Office of the Assistant Secretary for Preparedness and Response, and the Centers for Disease Control and Prevention—did not follow plans or guidance delineating their roles and responsibilities for repatriating individuals during a pandemic—an event these agencies had never experienced. While they had general repatriation plans, there was disagreement as to whether the effort was in fact a repatriation. This led to fundamental problems for HHS agencies and their federal partners, including at the March Air Reserve Base quarantine facility in California where the first repatriated individuals were quarantined prior to widespread transmission of COVID-19 in the U.S. These problems included the following: Lack of clarity as to which agency was in charge when the first repatriation flight from Wuhan, China, arrived at the quarantine facility, which caused confusion among the HHS component agencies. Coordination issues among HHS component agencies resulted in component agencies operating independently of each other, and led to frustration and complications. HHS's delay in issuing its federal quarantine order, during which time a repatriate tried to leave the quarantine facility. HHS personnel's inconsistent use of personal protective equipment (PPE), and HHS officials' disagreement on which agency was responsible for managing infection prevention and control. An HHS official also directed personnel to remove their PPE as it created “bad optics,” according to an HHS report that examined the repatriation effort. The National Response Framework, a guide to how the U.S. responds to disasters and emergencies, instructs agencies to understand their respective roles and responsibilities, know what plans apply, and develop appropriate guidance for emergency responses. Until HHS revises or develops new plans that clarify agency roles and responsibilities during a repatriation in response to a pandemic, it will be unable to prevent the coordination and health and safety issues it experienced during the COVID-19 repatriation response in future pandemic emergencies. HHS also did not include repatriation in its pandemic planning exercises. As a result, agencies lacked experience deploying together to test repatriation plans during a pandemic, which contributed to serious coordination issues. GAO has previously reported that exercises play an important role in preparing for an incident by providing opportunities to test response plans and assess the clarity of roles and responsibilities. Until HHS conducts such exercises, it will be unable to test its repatriation plans during a pandemic and identify areas for improvement. Why GAO Did This Study HHS provides temporary assistance to U.S. citizens repatriated by the Department of State (State) from a foreign country because of destitution, illness, threat of war, or similar crises through the U.S. Repatriation Program. In January and February 2020, HHS assisted State in repatriating individuals from Wuhan, China, and the Diamond Princess cruise ship in Yokohama, Japan, to the U.S. HHS quarantined repatriates at five Department of Defense (DOD) installations to ensure they did not infect others with COVID-19. GAO was asked to examine HHS's COVID-19 repatriation efforts to ensure the health and safety of those involved in the response. This report examines HHS's coordination and management of its COVID-19 repatriation response. GAO reviewed relevant documentation from HHS, State, and DOD related to repatriation planning, including documentation on pandemic planning exercises. GAO also interviewed officials from HHS, State, and DOD.
    [Read More…]
  • Two Former Louisiana Correctional Officers Sentenced for Cover Up Following Death of an Inmate
    In Crime News
    Two Louisiana women, former jail deputies, were sentenced today to over a year in prison and six months in prison respectively for their roles in covering up a civil rights violation arising out of an inmate’s death at the St. Bernard Parish Prison (SBPP).
    [Read More…]
  • Two Individuals Charged for their Roles in Massive Cattle Ponzi Scheme
    In Crime News
    A federal grand jury in Colorado returned an indictment that was unsealed Tuesday charging an Illinois woman and a Georgia man with running a Ponzi scheme that raised approximately $650 million from investors across the country.
    [Read More…]
  • Justice Department Issues Statement on the U.S. Department of Agriculture’s Proposed Rules to Support Enforcement of the Packers and Stockyards Act
    In Crime News
    Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division issued the following statement today after the U.S. Department of Agriculture’s (USDA) announcement concerning their proposed rules to support enforcement of the Packers and Stockyards Act:
    [Read More…]
  • United States Obtains Final Judgment and Permanent Injunction Against Edward Snowden
    In Crime News
    On Sept. 29, 2020, the [Read More…]
  • Michigan Man Pleads Guilty to Conspiring to Defraud the IRS and to Steal Crash Reports from the Detroit Police Department
    In Crime News
    A Birmingham, Michigan, resident pleaded guilty today to conspiring to defraud the IRS and to steal from an organization receiving federal funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
    [Read More…]
  • Chief Justice Names Conference Committee Chairs
    In U.S Courts
    Chief Justice John G. Roberts, Jr. has named eight new chairs of Judicial Conference committees and extended the term of a current chair by one year. 
    [Read More…]
  • Woman Arrested for Fake COVID-19 Immunization and Vaccination Card Scheme
    In Crime News
    A California-licensed homeopathic doctor was arrested today for her alleged scheme to sell homeoprophylaxis immunization pellets and to falsify COVID-19 vaccination cards by making it appear that customers had received the U.S. Food and Drug Administration (FDA) authorized Moderna vaccine.
    [Read More…]
  • Florida Man Charged with Federal Hate Crime
    In Crime News
    A Florida man was charged with federal hate crime in Ocala for setting fire to a church.
    [Read More…]
  • Home Foreclosure Sales: FHA, Rural Housing Service, and VA Could Better Align Program Metrics with Their Missions
    In U.S GAO News
    By 2019, the number of foreclosed properties—known as real estate-owned (REO) properties—that federal entities owned declined to historically low levels because of the housing market recovery and the sale of many of the properties (see figure). Real Estate-Owned Properties of Selected Federal Entities, 2004–2019 Note: Fannie Mae and Freddie Mac are the government-sponsored enterprises shown here. Data for the enterprises and FHA are calendar year; for VA and RHS, fiscal year ending September 30. The entities GAO reviewed each have processes to oversee their REO maintenance contractors' activities and performance, including internal and external performance reviews and on-site inspections. Entities generally have standardized maintenance policies for REO properties across the country, such as emergency repairs for broken windows and routine maintenance requirements for the frequency of cutting grass. GAO found that the performance of contractors whose documentation GAO reviewed generally met entities' standards and requirements. However, entities' oversight of contractors identified instances of underperformance in maintenance. For instance, the Federal Housing Administration (FHA) recouped almost $3 million from seven property maintenance contractors for work below quality standards from 2017 to 2020. The REO program metrics of FHA, the Department of Veterans Affairs (VA), and the Rural Housing Service (RHS) focus on required financial goals, such as minimizing losses, but do not always align fully with other program goals or agency missions. For example, FHA does not collect comprehensive information on REO property sales to public-sector homeowners or local nonprofits—missing an opportunity to measure the extent to which its REO program supports its goal to strengthen neighborhoods and communities. Similarly, VA and RHS lack metrics that would show whether their REO programs align with their broader agency missions to serve veterans and rural homebuyers, respectively. Incorporating additional metrics could help FHA, VA, and RHS ensure that their REO programs assist in meeting their agencies' missions. Poor maintenance of foreclosed properties can negatively affect communities and threaten neighborhood stability. FHA, VA, RHS, and Freddie Mac are among the federal entities owning foreclosed properties through REO programs. GAO was asked to review how these federal entities monitor REO property conditions. The objectives this report examines include trends in the number of REO properties; oversight of maintenance contractors; and whether metrics used to assess REO program performance align with entities' missions. GAO reviewed and analyzed reports and data on the number of REO properties and documentation on FHA, Freddie Mac, VA, and RHS oversight of REO property maintenance from 2017 to 2020. GAO also analyzed data on REO reimbursements to contractors for maintenance activities. GAO recommends that FHA, VA, and RHS consider additional REO program metrics that measure how the programs support their respective missions of strengthening communities and serving veterans and rural homeowners. The entities generally agreed with the recommendation. For more information, contact John H. Pendleton at (202) 512-8678 or pendletonj@gao.gov.
    [Read More…]
  • New Bankruptcy Filings Plummet 38.1 Percent
    In U.S Courts
    Bankruptcy filings dropped 38.1 percent for the 12-month period ending March 31, 2021, a dramatic fall that coincided with the coronavirus (COVID-19), which first disrupted the economy in March 2020. 
    [Read More…]
  • Compounding Pharmacy Mogul Sentenced for Multimillion-Dollar Health Care Fraud Scheme
    In Crime News
    A Mississippi businessman was sentenced today for his role in a multimillion-dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans, and their respective family members, as well as private health care benefit programs.
    [Read More…]
  • Brazil’s Signing of the Artemis Accords
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Global Entry for UK Citizens
    In Travel
    How to Apply for Global [Read More…]
  • Secretary Blinken’s Call with Afghanistan High Council for National Reconciliation Chair Dr. Abdullah
    In Crime Control and Security News
    Office of the [Read More…]
  • Puerto Rico: Perspectives on the Potential to Expand Air Cargo Operations
    In U.S GAO News
    Cargo was flown by air between more than 97 countries within the selected regions of Africa, Europe, Latin America, and the U.S. that may affect air cargo expansion in Puerto Rico. However, according to Department of Transportation (DOT) and European Union data, most international air cargo transportation was concentrated at a handful of countries and at airports in these regions. For example, four countries in Europe accounted for 72 percent of the U.S.-European Union air cargo transported, by weight. Likewise for airports, Miami International Airport accounted for 70 percent of air cargo transported between the U.S. and Latin America. Worldwide, cargo-only carriers transported on average 13.8 billion pounds of air cargo to and from the U.S. from 2016 through 2018. Of that cargo, two of the selected regions—Latin America and Europe—when combined accounted for 46 percent. Air Cargo Transported by Cargo-Only Airlines between the U.S. and Global Regions, Average Weight in Millions of Pounds, 2016 through 2018 Based on interviews with industry stakeholders and studies reviewed. GAO identified four factors that are generally associated with an airport's ability to attract air cargo traffic: (1) an airport's geographical location; (2) its proximity to transportation networks; (3) its supporting airport infrastructure and resources; and (4) the governmental and regulatory environments. For example, an airport located near businesses that generate large volumes of both inbound and outbound cargo that could be transported by air may be an important geographic factor for air carriers. Puerto Rican government and industry stakeholders GAO spoke with said that increased air cargo would benefit its airports and lead to positive effects on the Puerto Rican economy. For example, officials noted that expansion of air cargo operations could increase the use of underutilized airports and create opportunities for existing industry—such as the pharmaceutical, medical device, and aerospace industries—and help develop new ones. Puerto Rican and industry stakeholders had varying perspectives on the potential for Puerto Rico's expanding its air cargo operations. For example, some stakeholders said Puerto Rico's geographic location may allow it to serve as a refueling and cargo distribution point, particularly for flights between Europe and Latin America, while others said the island may be too close to some Latin American destinations to serve that purpose. Whether and to what extent Puerto Rico can increase air cargo operations depends on how air carriers weigh the various factors discussed above. Puerto Rico's economy has been in decline for much of the last 15 years and was devastated by hurricanes in 2017. Puerto Rico has sought to increase air cargo and passenger traffic at its international airports as a means to bolster and diversify its economy. Specifically, Puerto Rico seeks to serve as a transshipment point for transferring cargo between air carriers flying from Europe to Latin America. Air cargo, whether carried in the holds of passenger aircraft or by cargo-only aircraft, is an important component of global trade. The FAA Reauthorization Act of 2018 includes a provision for GAO to study the international air cargo transportation services among the United States and the African, Latin American, and European regions and the potential expansion of air cargo operations in Puerto Rico. This report addresses (1) what is known about air cargo operations between these world regions; (2) factors affecting the development of air cargo markets; and (3) Puerto Rican officials' and selected industry stakeholders' views on the economic effect and potential of expanding air cargo operations in Puerto Rico. GAO analyzed DOT and European air cargo data for flights between the U.S. and the selected regions for 2016 through 2018 (the latest available data). GAO also interviewed officials from DOT, and stakeholders from Puerto Rico and the air-cargo industry, selected based on prior GAO work and stakeholder mission. For more information, contact Heather Krause at (202) 512-2834 or krauseh@gao.gov.
    [Read More…]
  • Financial Stability: Agencies Have Not Found Leveraged Lending to Significantly Threaten Stability but Remain Cautious Amid Pandemic
    In U.S GAO News
    In the years before the economic shock from the COVID-19 pandemic, the Financial Stability Oversight Council (FSOC) and others assessed the potential risks to financial stability that leveraged loans and collateralized loan obligation (CLO) securities may pose. Generally, leveraged loans are those made to businesses with poor credit and high debt, and CLO securities are backed by these loans. FSOC and others found that riskier borrower profiles and looser underwriting standards left leveraged lending market participants vulnerable to losses in the event of a downturn. After the COVID-19 shock in March 2020, loans suffered record downgrades and increased defaults, but the highest-rated CLO securities remained resilient. Although regulators monitoring the effects of the pandemic remain cautious, as of September 2020, they had not found that leveraged lending presented significant threats to financial stability. Based on regulators' assessments, leveraged lending activities had not contributed significantly to the distress of any large financial entity whose failure could threaten financial stability. Large banks' strong capital positions have allowed them to manage their leveraged lending exposures, and the exposure of insurers and other investors also appeared manageable. Mutual funds experienced redemptions by investors but were able to meet them in part by selling leveraged loan holdings. While this may have put downward pressure on already-distressed loan prices, based on regulators' assessments, distressed leveraged loan prices did not pose a potential threat to financial stability. Present-day CLO securities appear to pose less of a risk to financial stability than did similar securities during the 2007–2009 financial crisis, according to regulators and market participants. For example, CLO securities have better investor protections, are more insulated from market swings, and are not widely tied to other risky, complex instruments. FSOC monitors leveraged-lending-related risks primarily through its monthly Systemic Risk Committee meetings, but opportunities exist to enhance FSOC's abilities to respond to financial stability threats. FSOC identified leveraged lending activities as a source of potential risk to financial stability before the COVID-19 shock and recommended continued monitoring and analysis. However, FSOC does not conduct tabletop or similar scenario-based exercises where participants discuss roles and responses to hypothetical emergency scenarios. As a result, FSOC is missing an opportunity to enhance preparedness and test members' coordinated response to financial stability risks. Further, as GAO reported in 2016, FSOC does not generally have clear authority to address broader risks that are not specific to a particular financial entity, such as risks from leveraged lending. GAO recommended that Congress consider better aligning FSOC's authorities with its mission to respond to systemic risks, but Congress had not done so as of September 2020. GAO maintains that changes such as broader designation authority would help FSOC respond to risks from activities that involve many regulators, such as leveraged lending. The market for institutional leveraged loans grew from an estimated $0.5 trillion in 2010 to $1.2 trillion in 2019, fueled largely by investor demand for CLO securities. Some observers and regulators have drawn comparisons to the pre-2008 subprime mortgage market, noting that loan origination and securitization may similarly spread risks to the financial system. These fears are being tested by the COVID-19 pandemic, which has significantly affected leveraged businesses. This report examines assessments by regulators, FSOC, and others—both before and after the COVID-19 shock to the economy—of the potential risks to financial stability stemming from leveraged lending activities, and the extent to which FSOC monitors and responds to risks from broad-based activities like leveraged lending, among other objectives. GAO examined agency and private data on market size and investor exposures; reviewed agency, industry, and international reports; and interviewed federal financial regulators and industry participants. GAO recommends that the Secretary of the Treasury, as Chairperson of FSOC, conduct scenario-based exercises intended to evaluate capabilities for responding to crises. GAO also reiterates its 2016 recommendation (GAO-16-175) that Congress consider legislative changes to align FSOC's authorities with its mission. FSOC neither agreed nor disagreed with the recommendation, but said that it would take further actions if it determined necessary. For more information, contact Michael E. Clements at (202) 512-8678 or ClementsM@gao.gov.
    [Read More…]
  • Secretary Pompeo to Deliver Remarks to the Media in the Press Briefing Room
    In Crime Control and Security News
    Office of the [Read More…]
  • Bankruptcy Filings Fall 11.8 Percent for Year Ending June 30
    In U.S Courts
    Despite a sharp rise in unemployment related to the coronavirus (COVID-19) pandemic, personal and business bankruptcy filings fell 11.8 percent for the 12-month period ending June 30, 2020, according to statistics released by the Administrative Office of the U.S. Courts.
    [Read More…]
  • Medicaid: Data Completeness and Accuracy Have Improved, Though Not All Standards Have Been Met
    In U.S GAO News
    GAO found that the completeness and accuracy of Transformed Medicaid Statistical Information System (T-MSIS) data have improved. Over the past decade, the Centers for Medicare & Medicaid Services (CMS) has been implementing T-MSIS, which is the agency's initiative to improve state-reported data available for overseeing Medicaid. CMS's assessment of two key T-MSIS data sources reflect these improvements. I. Priority items. Priority items are areas of data CMS identified as critical for program oversight, such as beneficiary eligibility and managed care. CMS's assessment of states' data submissions for the first 12 priority items identified significant improvement in meeting CMS data standards over a 22-month period. CMS's assessments of additional priority items similarly indicate improved completeness and accuracy. Improvements in the Number of States Meeting CMS Standards for Transformed Medicaid Statistical Information System Priority Items One through 12 Number of priority items that met standards Number of states as of October 2018 Number of states as of August 2020 10 or more 6 41 7 to 9 26 10 6 or less 18 0 Source: GAO analysis of the Centers for Medicare & Medicaid Services (CMS) priority item data. │ GAO-21-196 Note: CMS assessed data from all 50 states and the District of Columbia. CMS excluded Wisconsin from its October 2018 assessment, because the state had not submitted sufficient data. II. Analytic files. Analytic files are publicly available, research-ready T-MSIS data. GAO's review of CMS's assessments found that all states submitted some data for 67 of the 69        topics relevant to their Medicaid programs. This is an improvement from what GAO found in 2017, when none of the six states reviewed submitted all T-MSIS data applicable to their programs. GAO also found that states' data for 52 of the 69 topics were acceptable—meaning that CMS determined most states' data did not have significant problems that would affect their usability. While CMS's assessments of priority item and analytic file data indicate improvement in the completeness and accuracy of T-MSIS data, GAO also found that these assessments highlight areas where data do not meet the agency's standards. For example, 30 states did not submit acceptable data for inpatient managed care encounters. Accurate encounter data are critical to ensuring that Medicaid managed care beneficiaries obtain covered services and that payments to managed care organizations are appropriate. GAO has made at least 13 recommendations related to improving T-MSIS data and expediting their use for program oversight. CMS has addressed five of these recommendations, and has not fully addressed eight—including recommendations to improve data for overseeing payments to providers and managed care organizations. Implementing these recommendations would help CMS strengthen program oversight through improved T-MSIS data. Since adding Medicaid to its High Risk List in 2003, GAO has identified multiple limitations in program data affecting CMS's ability to ensure beneficiaries' access to care and proper payments to health care providers. CMS intends T-MSIS be a national repository of data to manage and oversee Medicaid, which served approximately 77 million individuals at an estimated cost of $673 billion in fiscal year 2020. Prior GAO work found issues with the completeness and accuracy of T-MSIS data and recommended that CMS expedite efforts to improve T-MSIS data and to use them for program oversight. CMS has taken steps to improve T-MSIS data and has made some T-MSIS data publicly available. Yet, questions remain about the usability of T-MSIS data for program oversight. Under the Comptroller General's authority, GAO initiated this review to examine what is known about the completeness and accuracy of T-MSIS data. GAO reviewed CMS's assessments of two T-MSIS data sources: (1) states' submissions of T-MSIS priority items; and (2) the 2016 T-MSIS analytic files, which was the most recent analytic file data available when GAO began this work. GAO also reviewed CMS documents, prior GAO reports, and reports published by others examining T-MSIS data. GAO interviewed officials from CMS and seven states selected based on variation in their progress submitting complete and accurate priority item data, among other factors. The Department of Health and Human Services provided technical comments on a draft of this report, which GAO incorporated. For more information, contact Carolyn L. Yocom at (202) 512-7114 or yocomc@gao.gov.
    [Read More…]
  • Southern Colorado Man Sentenced to More Than 19 Years for Plotting to Blow Up Synagogue
    In Crime News
    A Colorado man was sentenced today in federal court in Colorado for plotting to blow up a synagogue.
    [Read More…]
  • Department Press Briefing – March 1, 2021
    In Crime Control and Security News
    Ned Price, Department [Read More…]
  • Kansas Man Indicted on Federal Child Pornography Charges
    In Crime News
    A resident of Topeka, Kansas, has been indicted by a federal grand jury in the U.S. District Court for the District of Kansas on federal child pornography charges, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division announced today.
    [Read More…]
  • Operation Legend: Case of the Day
    In Crime News
    Each weekday, the [Read More…]
  • The U.S. Reaches $1.5 Billion Settlement with Daimler AG Over Emissions Cheating in Mercedes-Benz Diesel Vehicles
    In Crime News
    The U.S. Department of Justice, Environmental Protection Agency (EPA), and California Air Resources Board (CARB) announced today a proposed settlement with German automaker Daimler AG and its American subsidiary Mercedes-Benz USA, LLC (collectively, “Daimler”) resolving alleged violations of the Clean Air Act and California law associated with emissions cheating. 
    [Read More…]
  • Three Tribal Officials Charged in Bribery Scheme
    In Crime News
    Two current tribal government officials and one former tribal government official of the Three Affiliated Tribes of the Mandan, Hidatsa, and Arikara Nation (MHA Nation) were charged by criminal complaint unsealed today for their alleged acceptance of bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation (FBIR), which is the home of the MHA Nation.
    [Read More…]