Nuclear Security Enterprise: NNSA Should Use Portfolio Management Leading Practices to Support Modernization Efforts

What GAO Found

The National Nuclear Security Administration (NNSA) has partially implemented selected leading practices to manage the work necessary to maintain and modernize the nation’s nuclear weapons stockpile. GAO found that NNSA is in the early stages of initiating its portfolio management processes and has partially implemented leading practices, such as establishing a clearly defined portfolio of work. For example, NNSA officials stated that its Weapons Activities appropriations account is a portfolio of work. However, NNSA has not developed clearly defined and appropriately empowered governance roles, such as a portfolio manager, for its Weapons Activities portfolio. As NNSA continues to develop its approach to portfolio management, establishing a portfolio management framework—consistent with selected leading practices—may allow NNSA to fully implement all leading practices, better define how program offices will pursue strategic stockpile modernization objectives, and optimize portfolio performance in the event that budget trade-offs become necessary.

NNSA’s offices have undertaken four separate efforts to identify and assess the capabilities needed across the nuclear security enterprise to meet its stockpile maintenance and modernization mission, but NNSA has not developed a comprehensive or complete capability assessment that could support its portfolio management approach (see fig.). NNSA undertook three of these four independent efforts to identify and assess capabilities in response to different legislative direction and did not incorporate information on all elements of a capability (knowledge, human capital, and infrastructure) in any of the individual efforts. Working across the agency to conduct a comprehensive, complete capability assessment would provide NNSA with a portfolio-level view of the enterprise’s capabilities and needs, allowing for planning that considers interdependencies that have been missed in the past when planning focused on individual programs or projects.

Relationship between Capability Assessment and Portfolio Management

Why GAO Did This Study

NNSA is simultaneously modernizing the nation’s nuclear weapons stockpile and the infrastructure on which weapons research and production programs depend. These efforts include multi-billion-dollar defense programs and projects that provide the capabilities needed for maintenance and modernization programs. Congress previously directed NNSA to identify its needed capabilities.

The Senate report accompanying the National Defense Authorization Act for Fiscal Year 2020 includes a provision for GAO to review NNSA’s approach to managing its defense programs and to identifying capabilities. This report examines the extent to which NNSA (1) used selected portfolio management leading practices to manage its maintenance and modernization programs and projects and (2) developed a comprehensive and complete capability assessment to support portfolio management.

GAO reviewed NNSA documentation related to portfolio management and capabilities and compared it with leading practices and legislative requirements. GAO also interviewed NNSA officials from six agency offices.

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    A Las Vegas, Nevada, man was sentenced to 70 months in prison for conspiracy to commit mail and wire fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Internal Revenue Service-Criminal Investigation Special Agent in Charge Tara Sullivan.
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  • Joint Statement on the Japan-United States Strategic Energy Partnership (JUSEP)
    In Crime Control and Security News
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  • Justice Department Reaches Agreement with the Board of Election Commissioners for the City of St. Louis to Ensure Polling Place Accessibility for Voters with Disabilities
    In Crime News
    The Justice Department today reached a settlement under Title II of the Americans with Disabilities Act (ADA) with the Board of Election Commissioners for the City of St. Louis to ensure that St. Louis polling places are accessible during elections to individuals with mobility and vision impairments. 
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    In Travel
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  • Deputy Assistant Attorney General Okuliar Delivers Remarks to the Telecommunications Industry Association
    In Crime News
    Good afternoon. It’s a pleasure to join you today, thank you for the invitation. I’d like to begin with some prepared remarks addressing the importance of predictability and transparency to antitrust enforcement, particularly as it relates to standards-essential patents, give an overview of the Division’s recent activity in this space, and then turn to some questions.
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  • Justice Department Settles Claims Against City of Meriden, Connecticut, Involving Denial of Mosque
    In Crime News
    The Justice Department and the U.S. Attorney’s Office for the District of Connecticut today announced an agreement with the City of Meriden, Connecticut to resolve allegations that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) by denying the application of the Omar Islamic Center to establish a mosque in March 2019, and by maintaining a zoning code that treats religious assemblies and institutions on less than equal terms with nonreligious assemblies and institutions in nine zoning districts.
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  • New York Donut Shop Operators Indicted for Tax Evasion
    In Crime News
    A federal grand jury in Syracuse, New York, returned an indictment charging the operators of three donut shops with conspiracy to defraud the IRS, tax evasion, and aiding and assisting in the filing of false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney Antoinette T. Bacon for the Northern District of New York.
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  • On the Occasion of Eid al-Fitr
    In Crime Control and Security News
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  • Assassination of Lebanese Activist Lokman Slim
    In Crime Control and Security News
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  • Crude Oil Markets: Effects of the Repeal of the Crude Oil Export Ban
    In U.S GAO News
    GAO's analysis of U.S. Energy Information Administration (EIA) data and interviews with industry stakeholders shows that the repeal of the U.S. crude oil export ban is associated with increased crude oil exports—from less than half a million barrels per day in 2015 to almost 3 million barrels per day in 2019. The repeal of the ban expanded the market for U.S. crude oil to overseas buyers and, along with other market factors, allowed U.S. crude oil producers to charge higher prices relative to comparable foreign crude oil. Higher prices and an expanded market for U.S. crude oil further incentivized domestic crude oil production, which had been growing since the shale oil boom began around 2009 (see figure). During the period after the repeal, total U.S. imports of crude oil remained largely unchanged. Annual Production and Exports of U.S. Crude Oil, 2009-2019 GAO's analysis found limited effects associated with the repeal of the ban on the production, export, and import of domestic refined petroleum products, such as gasoline. However, profit margins—which are determined in part by the costs a refiner pays for the crude oil and the earnings a refiner receives from the sale of refined products—likely decreased as the prices refiners paid for domestic crude oil increased relative to international prices. Because gasoline prices are largely determined on the global market, U.S. refiners could not pass on to consumers the additional costs associated with the increase in crude oil prices, resulting in decreased profit margins for U.S. refiners. Finally, after the repeal of the crude oil export ban, the U.S. shipping industry experienced a decline as demand fell for U.S. tankers—known as Jones Act tankers—used to move domestic crude oil between U.S. ports. The increase in the relative price of domestic crude oils associated with the repeal of the export ban may have resulted in some U.S. refineries deciding to use more foreign crude oil. Foreign crude oil is typically transported by foreign tankers, reducing the demand for Jones Act tankers compared to what it would have been if the export ban had remained in place, according to six of the seven shipping industry stakeholders GAO interviewed. Between 1975 and the end of 2015, the Energy Policy and Conservation Act directed a ban on nearly all exports of U.S. crude oil. This ban was not considered a significant policy issue when U.S. oil production was declining and import volumes were increasing. However, U.S. crude oil production roughly doubled from 2009 to 2015, due in part to a boom in shale oil production made possible by advancements in drilling technologies. In December 2015, Congress effectively repealed the ban, allowing the free export of U.S. crude oil worldwide. GAO was asked to provide information on the effects of repealing the crude oil export ban. This report describes the effects of the repeal of the crude oil export ban on the domestic crude oil production, petroleum refining, and related sectors of the U.S. shipping industry. GAO analyzed data from EIA and other federal databases to determine the effects of repealing the export ban. GAO also interviewed a nongeneralizeable sample of economists, market analysts, and stakeholders from the oil and gas, refining, and shipping industries. GAO's analysis focused on the repeal of the crude oil export ban and any effects of the repeal on U.S. crude oil and related industries through March 2020. For more information, contact Frank Rusco at (202) 512-3841 or ruscof@gao.gov.
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  • United States Unseals Superseding Indictment Charging Nationwide Money Laundering Network
    In Crime News
    The Justice Department today announced the unsealing of a superseding indictment charging six individuals with participating in a conspiracy to launder millions of dollars of drug proceeds on behalf of foreign cartels.  This superseding indictment is the result of a nearly four-year investigation into the relationship between foreign drug trafficking organizations and Asian money laundering networks in the United States, China, and elsewhere.
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  • Honoring the Contributions of the Citizens of the Republic of the Marshall Islands
    In Crime Control and Security News
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  • Canadian Man Extradited from Spain to Face Charges for Massive Psychic Mail Fraud Scheme
    In Crime News
    A Canadian citizen accused of operating a decades-long psychic mail fraud scheme was extradited to the United States and made his initial appearance today in federal court in Central Islip, New York, the Department of Justice and the U.S. Postal Inspection Service announced.
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  • Natural Disasters: Economic Effects of Hurricanes Katrina, Sandy, Harvey, and Irma
    In U.S GAO News
    Between January 1980 and July 2020, the United States experienced 273 climate and weather disasters causing more than $1 billion in damages each, according to NOAA. The total cost of damages from these disasters exceeded $1.79 trillion, with hurricanes and tropical storms accounting for over 50 percent of these damages, according to NOAA. Across the regions affected by these hurricanes over the period from 2005 to 2015, CBO estimated that federal disaster assistance covered, on average, 62 percent of the damage costs. GAO has reported that the rising number of natural disasters and reliance on federal disaster assistance is a key source of federal fiscal exposure. GAO was asked to review the costs of natural disasters and their effects on communities. This report examines (1) estimates of the costs of damages caused by hurricanes and hurricanes' effects on overall economic activity and employment in the areas they affected, and (2) actions subsequently taken in those areas to improve resilience to future natural disasters. GAO conducted case studies of Hurricanes Katrina, Sandy, Harvey, and Irma, selected for two reasons. First, they were declared a major disaster by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which establishes key programs through which the federal government provides disaster assistance, primarily through FEMA. Second, they had sizable effects on the 50 U.S. states and the District of Columbia during the period from 2004 through 2018. GAO analyzed federal agency and other data on costs, economic activity, employment, and recovery and mitigation projects in selected areas affected by these hurricanes. GAO also visited selected recovery and mitigation project sites; interviewed experts and federal, state, and local government officials; and reviewed federal, state, and local government reports and academic studies. Hurricanes Katrina, Sandy, Harvey, and Irma (selected hurricanes) caused costly damages and challenges for some populations in affected communities. In these communities, the National Oceanic and Atmospheric Administration (NOAA) estimated the cost of damages to be approximately $170 billion for Katrina, $74 billion for Sandy, $131 billion for Harvey, and $52 billion for Irma. These estimates include the value of damages to residential, commercial, and government or municipal buildings; material assets within the buildings; business interruption; vehicles and boats; offshore energy platforms; public infrastructure; and agricultural assets. These hurricanes were also costly to the federal government. For example, in 2016, the Congressional Budget Office (CBO) estimated that federal spending exceeded $110 billion in response to Katrina and $53 billion in response to Sandy. GAO analysis suggests that the selected hurricanes were associated with widely varying effects on overall economic activity and total employment in affected metropolitan areas and counties. Economic activity was lower than expected in the month of the hurricane or some of the three subsequent months in three of the affected metropolitan areas GAO analyzed. Within one year, average economic activity in these three metropolitan areas was similar to or greater than what it had been the year before the hurricane. Total employment was lower than expected in the month of the hurricane or some of the three subsequent months in 80 of the affected counties GAO analyzed. Total employment was higher than pre-hurricane employment on average in 47 of those counties within one year but remained below pre-hurricane employment on average in the other 33 counties for at least one year. Finally, state and local government officials said that the selected hurricanes had significant impacts on communities, local governments, households, and businesses with fewer resources and less expertise, and that challenges faced by households may have impacted local businesses. Communities affected by selected hurricanes have been taking actions to improve resilience, but multiple factors can affect their decisions. Actions taken after selected hurricanes include elevating, acquiring, and rehabilitating homes; flood-proofing public buildings; repairing and upgrading critical infrastructure; constructing flood barriers; and updating building codes. A community’s decision to take resilience actions can depend on the costs and benefits of those actions to the community. Multiple factors affect these costs and benefits, including the likelihood, severity, and location of future disasters, as well as the amount of federal assistance available after a disaster. Finally, vulnerabilities remain in areas affected by selected hurricanes. For example, state and local government officials indicated that many older homes in these areas do not meet current building codes. In reports to the Federal Emergency Management Agency (FEMA), states indicate they anticipate that the scope of damages via exposure to weather hazards, such as hurricanes, will likely remain high and could expand across regions affected by the selected hurricanes. In addition, some local governments have projected that population will grow in the regions affected by selected hurricanes. For more information, contact Oliver Richard at 202-512-8424 or richardo@gao.gov.
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  • Florida Resident Pleads Guilty to Conspiracy to Falsify Clinical Trial Data
    In Crime News
    A Florida resident pleaded guilty to conspiring to falsify clinical trial data regarding an asthma medication, the Department of Justice announced today.
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  • U.S.-India Joint Statement on Launching the “U.S.-India Climate and Clean Energy Agenda 2030 Partnership”
    In Crime Control and Security News
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  • Medicaid: Information on the Use of Electronic Asset Verification to Determine Eligibility for Selected Beneficiaries
    In U.S GAO News
    What GAO Found Individuals who receive assistance from the federal Supplemental Security Income (SSI) program may also become eligible for Medicaid. SSI provides cash assistance to eligible individuals who are over age 65, blind, or disabled; and who have limited resources (i.e., assets) and income. Medicaid programs in 42 states and the District of Columbia use the SSI asset limit of $2,000 for an individual or $3,000 for a married couple. Medicaid programs in the remaining eight states may set an asset limit that differs from the current SSI asset limit. The Social Security Administration (SSA), which administers the SSI program, and state Medicaid programs electronically verify the assets of these individuals when determining financial eligibility: In the 42 states and the District of Columbia that use the SSI asset limit, SSA is the entity that verifies applicants' assets. SSA has two data sources to detect assets among SSI beneficiaries. The first data source is the Access to Financial Institutions initiative. This initiative verifies reported bank accounts and can detect potential undisclosed accounts from financial institutions within geographic proximity of an SSI recipient's residence. The second data source is Non-home Real Property, which uses a commercial data source to help investigate potential ownership of real property other than a primary residence. In the eight states that may set their own asset limits, the state's Medicaid program must verify Medicaid eligibility for SSI recipients using an electronic asset verification system (AVS). An AVS provides a portal between state eligibility systems and banks or other third-party systems with electronic access to financial information. Once a state has an AVS in place, state eligibility workers can submit a request through the portal to perform an asset check for a Medicaid applicant. The request is sent to different financial institutions. A vendor gathers the information from the financial institutions and returns it to the state, and eligibility workers use the information to make an eligibility determination. Some states also use their AVS to check on applicants' property information, which may come from commercial data sources. Why GAO Did This Study GAO was asked to review the use of electronic asset verification to determine eligibility for selected Medicaid beneficiaries. This report provides an overview of what is known about how state Medicaid programs verify assets of applicants who are eligible because they receive SSI, and how SSA verifies assets of SSI applicants, among other issues. To describe what is known about how state Medicaid programs and SSA verify applicants' assets, GAO reviewed its prior work, as well as related research by other organizations. GAO also obtained input from officials from the Centers for Medicare & Medicaid Services and SSA; and reviewed relevant federal laws, regulations, and guidance. The Department of Health and Human Services and SSA reviewed a draft of this report and provided technical comments, which GAO incorporated as appropriate. For more information, contact Carolyn L. Yocom at (202) 512-7114 or yocomc@gao.gov.
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  • Three Florida Men Charged in $46 Million Health Care Fraud, Kickback, and Money Laundering Conspiracy
    In Crime News
    Three telemarketing company owners were charged for their alleged participation in a $47 million health care fraud, kickback, and money laundering scheme involving the referral of medically unnecessary cancer genetic tests to labs in exchange for kickbacks.
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  • Joint Statement on the Eighth U.S.-UAE Economic Policy Dialogue  
    In Crime Control and Security News
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  • Private Health Insurance: Markets Remained Concentrated through 2018, with Increases in the Individual and Small Group Markets
    In U.S GAO News
    Enrollment in private health insurance plans in the individual (coverage sold directly to individuals), small group (coverage offered by small employers), and large group (coverage offered by large employers) markets has historically been highly concentrated among a small number of issuers. GAO found that this pattern continued in 2017 and 2018. For example: For each market in 2018, at least 43 states (including the District of Columbia) were highly concentrated. Overall individual and small group markets have become more concentrated in recent years. The national median market share of the top three issuers increased by approximately 8 and 5 percentage points, respectively, from 2015 through 2018. With these increases, the median concentration was at least 94 percent in both markets in 2018. Number of States and District of Columbia Where the Three Largest Issuers Had at Least 80 Percent of Enrollment, by Market, 2011-2018 GAO found similar patterns of high concentration across the 39 states in 2018 that used federal infrastructure to operate individual market exchanges— marketplaces where consumers can compare and select among insurance plans sold by participating issuers—established in 2014 by the Patient Protection and Affordable Care Act (PPACA) and known as federally facilitated exchanges. From 2015 through 2018, states that were already highly concentrated became even more concentrated, often because the number of issuers decreased or the existing issuers accrued the entirety of the market share within a state. In 2017 and 2018 all 39 states were highly concentrated. GAO received technical comments on a draft of this report from the Department of Health and Human Services and incorporated them as appropriate. GAO previously reported that, from 2011 through 2016, enrollment in the individual, small group, and large group health insurance markets was concentrated among a few issuers in most states (GAO-19-306). GAO considered states' markets or exchanges to be highly concentrated if three or fewer issuers held at least 80 percent of the market share. GAO also found similar concentration on the health insurance exchanges established in 2014 by PPACA. A highly concentrated health insurance market may indicate less issuer competition and could affect consumers' choice of issuers and the premiums they pay for coverage. PPACA included a provision for GAO to periodically study market concentration. This report describes changes in the concentration of enrollment among issuers in the overall individual, small group, and large group markets; and individual market federally facilitated exchanges. GAO determined market share in the overall markets using enrollment data from 2017 and 2018 that issuers are required to report annually to the Centers for Medicare & Medicaid Services (CMS). GAO determined market share in the individual market federally facilitated exchanges in 2018 using enrollment data from CMS. For all analyses, GAO used the latest data available. For more information, contact John Dicken at (202) 512-7114 or dickenj@gao.gov.
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  • Remarks at the Ministerial on Climate Action
    In Climate - Environment - Conservation
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