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entitled 'Combating Nuclear Smuggling: DHS's Decision to Procure and 
Deploy the Next Generation of Radiation Detection Equipment Is Not 
Supported by Its Cost-Benefit Analysis' which was released on March 14, 
2007. 

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Testimony: 

Before the Subcommittee on Emerging Threats, Cybersecurity, and Science 
and Technology; Committee on Homeland Security; House of 
Representatives: 

United States Government Accountability Office: 

GAO: 

For Release on Delivery Expected at 2:00 p.m. EST: 

Wednesday, March 14, 2007: 

Combating Nuclear Smuggling: 

DHS's Decision to Procure and Deploy the Next Generation of Radiation 
Detection Equipment Is Not Supported by Its Cost-Benefit Analysis: 

Statement of Gene Aloise, Director: 
Natural Resources and Environment: 

GAO-07-581T: 

GAO Highlights: 

Highlights of GAO-07-581T, a testimony before the Subcommittee on 
Emerging Threats, Cybersecurity, and Science and Technology; Committee 
on Homeland Security; House of Representatives 

Why GAO Did This Study: 

The Department of Homeland Security (DHS) is responsible for addressing 
the threat of nuclear smuggling. Radiation detection portal monitors 
are key elements in our national defenses against such threats. DHS has 
sponsored R&D and testing activities to develop a “next generation” 
portal monitor, known as the advanced spectroscopic portal monitor. 
However, each one costs 6 times more than a current portal monitor. In 
March 2006, we recommended that DHS conduct a cost-benefit analysis to 
determine whether the new portal monitors are worth the additional 
cost. In June 2006, DHS issued its analysis. In October 2006, we issued 
our report that assessed the DHS study. 

GAO’s statement, based on our October 2006 report, addresses whether 
DHS’s cost-benefit analysis provides an adequate basis for its decision 
to purchase and deploy the next generation portal monitors. 

What GAO Found: 

DHS’s cost-benefit analysis does not provide a sound analytical basis 
for its decision to purchase and deploy the new portal monitor 
technology. Our review of the analysis determined that it had the 
following problems: 

Regarding the performance of the portal monitors:
* Instead of using the results of its own portal monitor tests 
conducted in 2005, DHS assumed that the new portal monitor technology 
would correctly detect and identify highly enriched uranium (HEU) 95 
percent of the time—a performance level that far exceeds the new 
technology’s current capabilities.
* To determine the performance of the current generation of portal 
monitors in detecting HEU, DHS used data from limited tests carried out 
in 2004 that test officials concluded were unreliable for such 
purposes. 
* DHS’s analysis of the new technology portal monitors was incomplete 
because the analysis focused on identifying HEU, but did not fully 
consider how well the new portal monitor technology could correctly 
detect or identify other dangerous radiological or nuclear materials. 

Regarding cost estimates:
* In comparing the costs of the new and current technologies, the 
procurement costs of the current generation portal monitors were highly 
inflated because DHS assumed a unit cost of about $131,000. However, 
the contract price at the time of the analysis was about $55,000. 
According to officials who manage the contract, it was to expire and 
they expected portal monitor prices to increase, but not nearly as much 
as DHS assumed.
* DHS stated that the primary benefit of deploying the new portal 
monitors is reducing unnecessary secondary inspections. However, DHS’s 
analysis does not fully estimate today’s baseline costs for secondary 
inspections, which makes it impossible to determine whether the use of 
the new portal monitors as currently planned, will result in 
significant cost savings for these inspections.
* The new portal monitor contract price has exceeded DHS’s total cost 
estimate by about $200 million. The cost-benefit analysis shows the 
total cost for deploying both current and new portal monitors to be 
about $1 billion. However, in July 2006, DHS announced that it had 
awarded contracts to develop and purchase up to $1.2 billion worth of 
the new portal monitors over 5 years. 
* DHS’s cost-benefit analysis omitted many factors that could affect 
the cost of new portal monitors, such as understating the life-cycle 
costs for operating and maintaining the equipment over time. 

For these reasons, DHS’s cost-benefit analysis does not meet the intent 
of our March 2006 report recommendation to fully assess the costs and 
benefits before purchasing any new equipment. 

What GAO Recommends: 

GAO’s October 2006 report included two recommendations designed to 
improve the quality and comprehensiveness of the Department’s analysis. 
DHS neither agreed nor disagreed with our recommendations, but 
continued to support its analysis as a solid basis for buying and 
deploying the new generation of radiation portal monitors 

[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-07-581T]. 

To view the full product, including the scope and methodology, click on 
the link above. For more information, contact Gene Aloise at (202) 512-
3841 or aloisee@gao.gov. 

[End of section] 

Mr. Chairman and Members of the Subcommittee: 

I am pleased to appear here today to discuss our assessment of the 
Department of Homeland Security's (DHS) May 2006 cost-benefit analysis 
used to support the purchase and deployment of next generation 
radiation portal monitors.[Footnote 1] This is an important decision 
because, if procured, these new portal monitors will be considerably 
more expensive than the portal monitors in use today. Combating nuclear 
smuggling is one of our nation's key national security objectives and 
the deployment of radiation detection equipment including portal 
monitors at U.S. ports of entry, including border crossings and 
domestic seaports, is an integral part of this system. DHS, through its 
Domestic Nuclear Detection Office (DNDO), is responsible for acquiring 
and supporting the deployment of radiation detection equipment, 
including portal monitors, within the United States. The Pacific 
Northwest National Laboratory (PNNL), one of the Department of Energy's 
(DOE) national laboratories, is under contract to manage the deployment 
of radiation detection equipment for DHS.[Footnote 2] U.S. Customs and 
Border Protection (CBP) is responsible for screening cargo as it enters 
the nation at our borders, which includes operating radiation detection 
equipment to interdict dangerous nuclear and radiological materials. 

The radiation portal monitors in use today can detect the presence of 
radiation, but they cannot distinguish between types of radiological 
material. For example, they cannot tell the difference between harmless 
products that emit radiation, such as ceramic tile, and dangerous 
materials, such as highly enriched uranium (HEU), that could be used to 
construct a nuclear weapon. Generally, CBP's standard procedures 
require incoming cargo to pass through one of these radiation portal 
monitors to screen for the presence of radiation. This "primary 
inspection" serves to alert CBP officers when a radioactive threat 
might be present. If there is a potential threat, CBP procedures 
require a "secondary inspection." To confirm the presence of radiation, 
this secondary inspection usually includes a second screening by a 
radiation portal monitor as well as a screening by CBP officers using 
radioactive isotope identification devices. These handheld devices are 
used to differentiate between types of radioactive material to 
determine if the radiation being detected is dangerous. Both the 
radiation portal monitors and handheld devices are limited in their 
abilities to detect and identify nuclear material. 

DHS would like to improve the capabilities of its portal monitors so 
that they can perform the dual roles of detecting radiation and 
identifying radiological materials. In this regard, DHS has sponsored 
research, development, and testing activities designed to create the 
next generation of portal monitors capable of performing both 
functions. These new, advanced portals are known as advanced 
spectroscopic portals (ASPs). In July 2006, DHS awarded contracts to 
three vendors for developing the advanced spectroscopic portals' 
capabilities. These awards were based mainly on performance tests 
conducted at DHS's Nevada Test Site in 2005, where ten competing 
advanced spectroscopic vendors' monitors were evaluated. At the same 
time, three current technology portal monitors were also tested. 

To ensure that DHS's substantial investment in radiation detection 
technology yields the greatest possible level of detection capability 
at the lowest possible cost, in a March 2006 GAO report,[Footnote 3] we 
recommended that once the costs and capabilities of ASPs were well 
understood, and before any of the new equipment was purchased for 
deployment, the Secretary of DHS work with the Director of DNDO to 
analyze the costs and benefits of deploying ASPs. Further, we 
recommended that this analysis focus on determining whether any 
additional detection capability provided by the ASPs was worth the 
considerable additional costs. In response to our recommendation, DNDO 
issued its cost-benefit analysis in May 2006, and an updated, revised 
version in June 2006. According to senior agency officials, DNDO 
believes that the basic conclusions of its cost-benefit analysis show 
that the new advanced spectroscopic portal monitors are a sound 
investment for the U.S. government. 

Mr. Chairman, my remarks today focus on the cost-benefit analysis DNDO 
used in support of its decision to purchase new ASP portal monitors. 
Specifically, I will discuss whether DNDO's June 2006 cost-benefit 
analysis provides an adequate basis for the substantial investment that 
acquiring and deploying ASPs will necessitate. 

My testimony is based upon our October 2006 report that evaluated 
DNDO's cost-benefit analysis.[Footnote 4] The work for our report was 
done in accordance with generally accepted government auditing 
standards. 

In summary, DNDO's 2006 cost-benefit analysis does not provide a sound 
analytical basis for its decision to purchase and deploy the new 
advanced spectroscopic portal monitor technology. 

Regarding the performance of the portal monitors: 

* Instead of using the results of its performance tests conducted in 
2005, DNDO's analysis simply assumed that ASPs could detect highly 
enriched uranium 95 percent of the time, a performance level far 
exceeding the capabilities of the new technology's current demonstrated 
capabilities. The 2005 test results showed that the best of the three 
winning vendor monitors could only identify masked HEU[Footnote 5] 
about 50 percent of the time. 

* To determine the current generation of portal monitors' performance 
in detecting HEU, DNDO used data from limited tests carried out in 2004 
that test officials concluded was unreliable for such purposes. In 
their written report, test officials explicitly stated that the data 
were not indicative of how well current technology portal monitors 
might perform in the field particularly for detecting HEU. 

* DNDO's analysis of the new technology portal monitors' performance 
was deficient because it focused on detecting and identifying HEU, but 
did not fully consider other dangerous radiological or nuclear 
materials. DNDO should have assessed the ASPs' abilities to detect 
several realistic threat materials. 

Regarding cost estimates: 

* In comparing the costs of the new and current technologies, the 
procurement costs of the current generation portal monitors were highly 
inflated because DNDO assumed a unit cost of about $131,000, while the 
contract price at the time of the analysis was about $55,000. According 
to officials who manage the contract, it was to expire and while they 
expected portal monitor prices to increase, they did not believe the 
cost would be as much as the price used in DNDO's analysis. 

* DNDO stated that the primary benefit of deploying the new portal 
monitors is reducing unnecessary secondary inspections. However, DNDO's 
analysis did not fully estimate today's baseline costs for secondary 
inspections, which makes it impossible to determine whether the use of 
the new portal monitors as currently planned will result in significant 
cost savings for these inspections. 

* The new portal monitor contract price has exceeded DNDO's total cost 
estimate by about $200 million. The cost-benefit analysis shows the 
total cost for deploying both current and new portal monitors to be 
about $1 billion. However, in July 2006, DHS announced that it had 
awarded contracts to develop and purchase up to $1.2 billion worth of 
the new portal monitors over 5 years. 

* DNDO's cost-benefit analysis omitted many factors that could affect 
the cost of new portal monitors, such as understating the life-cycle 
costs for operating and maintaining the equipment over time. 

Background: 

In general, DHS is responsible for providing radiation detection 
capabilities at U.S. ports of entry. Until April 2005, CBP managed this 
program. However, on April 15, 2005, the President directed the 
establishment of DNDO within DHS. DNDO's duties include acquiring and 
supporting the deployment of radiation detection equipment, including 
portal monitors. CBP continues its traditional screening function at 
ports of entry to interdict dangerous nuclear and radiological 
materials through the use of radiation detection equipment. The SAFE 
Port Act of 2006 formally authorizes DNDO's creation and 
operation.[Footnote 6] PNNL manages the deployment of radiation 
detection equipment for DHS. 

DHS's program to deploy radiation detection equipment at U.S. ports of 
entry has two goals. The first is to use this equipment to screen all 
cargo, vehicles, and individuals coming into the United States. The 
second is to screen this traffic without delaying its movement into the 
nation. DHS's current plans call for completing the deployment of 
radiation portal monitors at U.S. ports of entry by September 2013. The 
current technology portal monitors, known as plastic scintillators or 
PVTs, cost about $55,000 per unit, while the advanced spectroscopic 
portal monitors, known as ASPs, will cost around $377,000 per 
unit.[Footnote 7] 

In July 2006, DHS announced that it had awarded contracts to three ASP 
vendors to further develop and purchase $1.2 billion worth of ASPs over 
5 years. Congress, however, provided that none of DNDO's appropriated 
funds for systems acquisition could be obligated for full procurement 
of ASPs until the Secretary of DHS certifies through a report to the 
Committees on Appropriations for the Senate and House of 
Representatives that ASPs would result in a significant increase in 
operational effectiveness.[Footnote 8] 

DNDO Ignored Its Own Performance Test Results and Instead Relied on the 
Potential Performance of New Portal Monitors and Unreliable Estimates 
of Current Equipment Performance: 

DHS is developing new portal monitors, known as ASPs that, in addition 
to detecting nuclear or radiological material, can also identify the 
type of material. In 2005, DNDO conducted side-by-side testing at the 
Nevada Test Site (NTS)[Footnote 9] on 10 ASP systems and 3 PVT systems 
developed by private sector companies, including the PVT systems 
currently deployed. DHS requested that the National Institutes of 
Standards and Technology (NIST) provide assistance by conducting an 
independent analysis of data acquired during the last phase of 
developmental testing of ASPs to help DHS determine the performance of 
ASP portal monitors being proposed by private sector companies. NIST 
compared the 10 ASP systems, and in June 2006 submitted a report to DHS 
on the results of that testing.[Footnote 10] 

Performance tests of ASPs showed that they did not meet DNDO's main 
performance assumption in the cost-benefit analysis of correctly 
identifying HEU 95 percent of the time it passes through portal 
monitors. The 95 percent performance assumption included ASPs' ability 
to both detect bare, or unmasked, HEU in a container and HEU masked in 
a container with a more benign radiological material.[Footnote 11] 
Based on NIST's assessment of the performance data, the ASP prototypes 
(manufactured by the three companies that won DNDO's recent ASP 
procurement contract) tested at NTS identified bare HEU only 70 to 88 
percent of time. Performance tests also showed that ASPs' ability to 
identify masked HEU fell far short of meeting the 95 percent goal 
established for the cost-benefit analysis. According to DNDO, 
identifying masked HEU is the most difficult case to address. DOE 
officials told us that benign radiological materials could be used to 
hide the presence of HEU. NIST reported that the best ASP prototype 
DNDO tested in Nevada during 2005, and which won a procurement 
contract, was able to correctly identify masked HEU and depleted 
uranium (DU) only 53 percent of the time. Similarly, the ASP prototypes 
submitted by the other two companies that won DNDO ASP procurement 
contracts were able to identify masked HEU and DU only 45 percent and 
17 percent of the time. 

Despite these results, DNDO did not use the information from these 
tests in its cost-benefit analysis. Instead, DNDO officials told us 
that since the new portal monitors cannot meet the 95 percent detection 
goal, they relied on the assumption that they will reach that level of 
performance sometime in the future. DNDO officials asserted that the 
ASPs' current performance levels would improve, but they provided no 
additional information as to how the 95 percent goal will be achieved 
or an estimate of when the technology would attain this level of 
performance. 

Moreover, DNDO's cost-benefit analysis only considered the benefits of 
ASPs' ability to detect and identify HEU and did not consider the ASPs' 
ability to detect and identify other nuclear and radiological 
materials. The ability of an ASP to identify specific nuclear or 
radiological materials depends on whether the ASP contains software 
that is specific to those materials. In our view, a complete cost- 
benefit analysis would include an assessment of ASPs' ability to detect 
and identify a variety of nuclear and radiological material, not just 
HEU. By excluding radiological and nuclear materials other than HEU, 
DNDO's analysis did not consider the number of secondary inspections 
that would be related to these materials and hence it likely 
underestimated the costs of ASP use. Further, DNDO told us the 
assumptions for the ability of ASP systems to detect and identify HEU 
95 percent of the time came from the ASP performance specifications. 
However, we examined the performance specifications and found no 
specific requirement for detecting or identifying HEU with a 95 percent 
probability.[Footnote 12] While there is a requirement in the 
performance specification for the identification for HEU and other 
special nuclear material, we found no associated probability of success 
in performing this function. 

DNDO's cost-benefit analysis also may not accurately reflect the 
capabilities of PVTs to detect nuclear or radiological material. DNDO 
officials acknowledged that DNDO tested the performance of PVTs along 
with the ASPs in 2005, but did not use the results of these tests in 
its cost-benefit analysis. According to these officials and NIST staff 
who assisted in the testing, the PVT performance data were unusable 
because the PVTs' background settings were not set properly. 
Consequently, DNDO officials told us the analysis was based on the 
performance of PVT monitors that PNNL tested during 2004 in New York. 
However, the results from these field tests are not definitive because, 
as PNNL noted in its final report, the tests did not use HEU and, 
therefore, the results from the tests did not indicate how well PVT 
portal monitors would be able to detect HEU in the field.[Footnote 13] 
Moreover, the PVT portal monitors that PNNL used had only one radiation 
detection panel as opposed to the four-panel PVT monitors that DHS 
currently deploys at U.S. ports of entry. An expert at a national 
laboratory told us that larger surface areas are more likely to detect 
radiological or nuclear material. DNDO also stated that due to the 
nature of the testing at the Nevada Test Site, the tests did not 
provide the data needed for the cost-benefit analysis. According to 
DNDO officials, this data would come from analysis of the performance 
of fielded systems at U.S. ports-of-entry where the probability to 
detect threats could be compared to false alarm rates. 

DNDO's director stated twice in testimony before the House Homeland 
Security Committee, Subcommittee on Prevention of Nuclear and 
Biological Attack--once on June 21, 2005, and again on May 26, 2006-- 
that the ASP and PVT portals would be evaluated against one another in 
"extensive high-fidelity" tests. In our view, the results of such 
testing are critical to any decision by DNDO to employ new technology, 
such as ASPs, that might help protect the nation from nuclear 
smuggling. According to DNDO officials, new tests now underway at the 
DHS Nevada Test Site are comparing the performance of ASPs and PVTs 
side-by-side. 

DNDO's Cost-Benefit Analysis was Incomplete and Used Inflated Cost 
Estimates for PVT Equipment: 

DNDO officials told us they did not follow the DHS guidelines for 
performing cost-benefit analyses in conducting their own cost-benefit 
analysis.[Footnote 14] These guidelines stipulate, among other things, 
that such studies should address all of the major costs and benefits 
that could have a material effect on DHS programs. However, DNDO's 
analysis omitted many factors that could affect the cost of new 
radiation portal monitors. For example, DNDO officials told us that 
there are over 12 different types of ASP monitors, yet they only 
estimated the cost of cargo portal monitors that would be used at land 
border crossings. In reality, DNDO and CBP plan to deploy different 
types of ASPs that would have varying costs, such as portal monitors at 
seaports which would have higher costs. Additionally, DNDO did not 
capture all the costs related to developing the different types of ASP 
monitors. In our view, developing realistic cost estimates should not 
be sacrificed in favor of simplicity. 

DNDO also underestimated the life-cycle costs for operations and 
maintenance for both PVT and ASP equipment over time. DNDO's analysis 
assumed a 5-year life-cycle for both PVT and ASP equipment. However, 
DNDO officials told us that a 10-year life-cycle was a more reasonable 
expectation for PVT and ASP equipment. The analysis assumes that the 
annual maintenance costs for PVT and ASP monitors will each equal 10 
percent of their respective procurement costs. This means that 
maintenance costs for PVTs would be about $5,500 per year per unit 
based on a $55,000 purchase price and ASP maintenance costs would be 
about $38,000 per year per unit based on a $377,000 purchase price. 
Given the much higher maintenance costs for ASPs and the doubling of 
the life-cycle to 10 years, the long-term implications for these cost 
differences would be magnified. Consequently, DNDO's analysis has not 
accounted for about $181 million in potential maintenance costs for 
ASPs alone. 

Furthermore, DNDO did not assess the likelihood that radiation 
detection equipment would either misidentify or fail to detect nuclear 
and radiological materials. Rather, DNDO's cost-benefit analysis 
focuses on the ability of ASPs to reduce false alarms--alarms that 
indicate nuclear or radiological material is in a container when, in 
fact, the material is actually non-threatening, such as ceramic tile. 
Reducing false alarms would reduce the number of secondary inspections 
of non-threatening nuclear and radiological materials and therefore the 
costs of those inspections. However, as required by DHS's guide to 
performing cost-benefit analyses, DNDO's analysis did not include all 
costs. In particular, the analysis did not include the potentially much 
bigger cost of "false negatives." False negatives are instances in 
which a container possesses a threatening nuclear or radiological 
material, but the portal monitor either misidentifies the material as 
non-threatening or does not detect the material at all, thus allowing 
the material to enter the country. During the 2005 Nevada tests, the 
incidence of false negatives among the three vendors who received 
contracts ranged from about 45 percent to slightly more that 80 
percent. This raises concerns because, as explained to us by a 
scientist at a national laboratory, at this level of performance, ASPs 
could conceivably misidentify HEU as a benign nuclear or radiological 
material or not detect it at all, particularly if the HEU is placed 
side by side with a non-threatening material such as kitty litter. 

In recent testimonies before Congress, DNDO's Director has cited the 
primary benefit of deploying ASP monitors as reducing unnecessary 
secondary inspections.[Footnote 15] DNDO's cost-benefit analysis 
focused on measuring the benefits of ASP's ability to reduce false 
alarms--alarms that indicate nuclear or radiological material is 
present when, in fact, it is not or such material is actually non- 
threatening. Reducing false alarms would reduce the number of secondary 
inspections of non-threatening nuclear and radiological materials and 
therefore the costs of those inspections. Even on this point, however, 
DNDO's analysis was flawed. For example, it did not estimate the costs 
of secondary inspections as they are carried out today. DNDO's analysis 
needs these baseline costs to compare alternatives because without 
them, it is impossible to determine whether the use of ASPs, as 
planned, will result in cost savings for secondary inspections. While 
we agree that facilitating commerce at U.S. ports of entry by reducing 
unnecessary secondary inspections is an important goal, we believe that 
the primary rationale for deploying portal monitors should be to 
protect the nation from nuclear and/or radiological attack. We found 
that DNDO's analysis did not even attempt to measure the level--or 
value--of security afforded by portal monitors. 

In addition, the ASP contract award has exceeded DNDO's estimate for 
total cost by about $200 million. The cost-benefit analysis shows the 
total cost for deploying PVT and ASP monitors to be about $1 billion, 
which covers all costs related to acquisition, design, maintenance, and 
physical inspection over 5 years (for both PVT and ASP). However, in 
July 2006, DHS announced that it had awarded contracts to develop and 
purchase up to $1.2 billion worth of ASP portal monitors over 5 years. 
Furthermore, the cost-benefit analysis underestimates total deployment 
costs and does not account for other major costs, such as physical 
inspections of cargo containers, an additional procurement of 442 new 
PVT monitors, installation and integration, and maintenance. 

Finally, DNDO overstated the purchase price of PVT monitors. Although 
DHS is currently paying an average of about $55,000 per monitor, DNDO's 
cost-benefit analysis assumed the PVT would cost $130,959--the highest 
published manufacturers' price for the government.[Footnote 16] 
According to DNDO's Director, DNDO chose the highest published price 
because the current contract for portal monitors at that time was to 
expire, and the portal monitors will probably cost more in the future. 
However, the information DNDO provided us does not explain why DNDO 
assumes that the future price will be more than double what DHS was 
currently paying, as assumed in DNDO's analysis. PNNL officials told us 
that the future price will almost certainly be lower than the price 
used in DNDO's analysis. 

In conclusion, DNDO's approach to the cost-benefit analysis omitted 
many factors that could affect the cost of new radiation portal 
monitors. For these reasons, DHS's cost-benefit analysis does not meet 
the intent of our March 2006 report recommendation to fully assess the 
costs and benefits before purchasing any new equipment. 

Mr. Chairman, this concludes my prepared statement. I would be happy to 
respond to any questions that you or other members of the Subcommittee 
may have. 

GAO Contact and Staff Acknowledgements: 

For further information about this testimony, please contact me, Gene 
Aloise, at (202) 512-3841 or at aloisee@gao.gov. Contact points for our 
Offices of Congressional Relations and Public Affairs may be found on 
the last page of this statement. John Delicath, Jim Shafer, and Eugene 
Wisnoski made key contributions to this statement. 

FOOTNOTES 

[1] GAO, Combating Nuclear Smuggling: DHS's Cost-Benefit Analysis to 
Support the Purchase of New Radiation Detection Portal Monitors Was Not 
Based on Available Performance Data and Did Not Fully Evaluate All the 
Monitors' Costs and Benefits, GAO-07-133R (Washington, D.C.: Oct. 17, 
2006). GAO, Combating Nuclear Smuggling: DHS Has Made Progress 
Deploying Radiation Detection Equipment at U.S. Ports of Entry, but 
Concerns Remain, GAO-06-389 (Washington, D.C.: Mar. 22, 2006). 

[2] DOE manages the largest laboratory system of its kind in the world. 
The mission of DOE's 22 laboratories has evolved. Originally created to 
design and build atomic weapons, these laboratories have since expanded 
to conduct research in many disciplines - from high-energy physics to 
advanced computing. 

[3] GAO, Combating Nuclear Smuggling: DHS Has Made Progress Deploying 
Radiation Detection Equipment at U.S. Ports of Entry, but Concerns 
Remain, GAO-06-389 (Washington, D.C.: Mar. 22, 2006). 

[4] GAO, Combating Nuclear Smuggling: DHS's Cost-Benefit Analysis to 
Support the Purchase of New Radiation Detection Portal Monitors Was Not 
Based on Available Performance Data and Did Not Fully Evaluate All the 
Monitors' Costs and Benefits, GAO-07-133R (Washington, D.C.: Oct. 17, 
2006). 

[5] "Masking" is an attempt to hide dangerous nuclear or radiological 
material by placing it with benign radiological sources. 

[6] Pub. L. No. 109-347, tit. V, 120 Stat. 1884, 1932 (2006). 

[7] Prices include only equipment purchase. Installation costs are 
extra. 

[8] Department of Homeland Security Appropriations Act for Fiscal Year 
2007, Pub. L. No. 109-295, tit. IV, 120 Stat. 1355, 1376 (2006). 

[9] DHS and DOE are collaborating in building a new Radiological and 
Nuclear Countermeasures Test and Evaluation Complex at the Nevada Test 
Site to support the development, testing, acquisition, and deployment 
of radiation detection equipment. The facility is expected to become 
fully operational in early 2007. Currently, an interim facility at NTS 
is being used to test radiation detection equipment. 

[10] NIST did not evaluate the PVTs or compare their performance to the 
performance of the ASPs. 

[11] The ability to detect masked HEU is based on DOE guidance on 
performing the evaluation. 

[12] The performance specifications contain a requirement for 
detecting, not identifying, californium-252 with a 95 percent 
probability. Californium-252 has similar radiological properties to 
HEU. In addition, the performance specifications contain a requirement 
for detecting, but not identifying, other radiological materials such 
as cobalt-57, cobalt-60, barium-133, cesium-137, and americium-241. 

[13] Pacific Northwest National Laboratory, A Sensitivity Comparison of 
NaI and PVT Portal Monitors at a Land-Border Port-of-Entry, p. iii, 
November 2004. For Official Use Only. 

[14] DHS, Capital Planning and Investment Control, Cost-Benefit 
Analysis (CBA) Guidebook 2006, Version 2.0, February 2006. Traditional 
rules of performing cost-benefit analyses include assessing the full 
life-cycle costs for operation and maintenance, and determining the 
level of confidence in cost data. 

[15] Enlisting Foreign Cooperation in U.S. Efforts to Prevent Nuclear 
Smuggling: Hearing Before the House Committee on Homeland Security, 
Subcommittee on Prevention of Nuclear and Biological Attack, 109th 
Cong. (May 25, 2006)(statement of Mr. Vayl S. Oxford, Director, DNDO); 
Detecting Smuggled Nuclear Weapons, Hearing Before the Senate Judiciary 
Committee, Subcommittee on Terrorism, Technology, and Homeland 
Security, 109th Cong. (July 27, 2006)(statement of Mr. Vayl S. Oxford, 
Director, DNDO). 

[16] DNDO, Cost Benefit Analysis for Next Generation Passive Radiation 
Detection of Cargo an the Nation's Border Crossings, May 30, 2006. 

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