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United States Government Accountability Office: 
GAO: 

Report to Congressional Committees: 

July 2011: 

DOD Task Force for Business and Stability Operations: 

Actions Needed to Establish Project Management Guidelines and Enhance 
Information Sharing: 

GAO-11-715: 

GAO Highlights: 

Highlights of GAO-11-715, a report to congressional committees. 

Why GAO Did This Study: 

The Departments of Defense (DOD) and State (State) and the U.S. Agency 
for International Development (USAID) and others are involved in 
economic development activities in Iraq and Afghanistan. In June 2006, 
DOD established the Task Force for Business and Stability Operations 
(Task Force) to support its related efforts. The National Defense 
Authorization Act (NDAA) for Fiscal Year 2011 required that DOD, 
State, and USAID jointly develop a plan to transition Task Force 
activities to State, with a focus on potentially transitioning 
activities to USAID. 

Under the authority of the Comptroller General of the United States to 
conduct work on his own initiative and with additional congressional 
direction, GAO identified (1) factors to consider in planning any 
transition of Task Force activities and (2) the extent to which the 
Task Force established guidance to manage its activities and has 
shared information with other federal agencies. GAO analyzed documents 
and interviewed multiple agency officials in Washington, D.C., Iraq, 
and Afghanistan. 

What GAO Found: 

As of June 2011, DOD, State, and USAID officials were discussing 
options for transitioning Task Force activities and preparing a 
response to the fiscal year 2011 NDAA requirements. Based on 
interviews with senior officials and a review of available data, GAO 
identified five factors to consider in planning for any transition of 
Task Force activities to USAID, which generally relate to how these 
agencies conduct their respective activities. First, although both the 
Task Force and USAID work to promote economic development, they 
generally take different approaches. The Task Force is a small, flat, 
flexible organization that generally conducts short-term initiatives, 
while USAID is a large agency that conducts short- and long-term 
projects. USAID officials noted that in addition to other activities, 
it focuses on efforts to improve the environment for investments 
whereas the Task Force focuses on brokering specific investment deals. 
Second, as part of DOD, Task Force employees are not subject to the 
same movement restrictions as USAID employees and have greater 
flexibility to visit project sites and access to military assets. 
Third, funding and staffing plans would need to be developed. For 
example, USAID’s fiscal year 2011 budget and 2012 budget request did 
not take into account any needs to support Task Force activities. 
Fourth, while both agencies facilitate private sector investment, the 
nature and focus of their interactions with investors differ. For 
example, the Task Force actively identifies potential U.S. and non-
U.S. investors and arranges meetings and provides logistical support 
for them, whereas USAID typically sponsors conferences to provide 
opportunities for prospective investors to share information. Given 
these differences, State and USAID officials agreed that the same type 
of private investment activities conducted by the Task Force may not 
continue at USAID. Last, the timing of a transition and impact on U.S. 
objectives will need to be considered. DOD, State, and USAID officials 
noted that because Task Force activities are important to supporting 
the U.S. goal of attracting investors, a transition in the near term 
may negatively impact these efforts. 

While DOD and the Task Force have provided high-level direction for 
Task Force activities, the Task Force has not developed written 
project management guidance to be used by its personnel in managing 
Task Force projects. Such guidance could include important elements, 
such as project selection criteria, requirements to establish metrics, 
and monitoring and evaluation processes. As a result, the Task Force 
does not have the framework needed to ensure a standard operating 
approach, accountability, and consistent project management. The Task 
Force has generally focused its information-sharing efforts on senior 
officials in Afghanistan whereas efforts at the project management 
level have been more ad hoc. Mechanisms such as working groups exist 
for agencies involved in development activities to share information. 
However, the Task Force does not routinely participate, and DOD, 
State, and USAID have not identified how best to integrate the Task 
Force to share information on its activities. As a result, the U.S. 
government may not be positioned to fully leverage and coordinate its 
respective capabilities and efforts in support of achieving U.S. goals. 

What GAO Recommends: 

GAO recommends that the Task Force develop written project management 
guidance and that DOD, State, and USAID develop an approach to 
integrate the Task Force into information-sharing mechanisms. DOD 
partially concurred with the first recommendation. The three agencies 
generally concurred with the second. 

View GAO-11-715 or key components. For more information, contact 
Sharon Pickup at (202) 512-9619 or pickups@gao.gov. 

[End of section] 

Contents: 

Letter: 

Background: 

Factors to Consider in Planning Any Transition of Task Force 
Capabilities from DOD to USAID. 

The Task Force Has Not Documented Specific Guidelines for Managing 
Activities, and Its Information-Sharing Efforts in Afghanistan Are 
Focused on Senior-Level Officials and Are Not Integrated into Existing 
Mechanisms: 

Conclusions: 

Recommendations for Executive Action: 

Agency Comments and Our Evaluation: 

Appendix I: Scope and Methodology: 

Appendix II: Comments from the Department of Defense: 

Appendix III: Comments from the U.S. Agency for International 
Development: 

Appendix IV: GAO Contact and Staff Acknowledgments: 

Table: 

Table 1: Funding Available to the Task Force (Fiscal Years 2007 
through 2011): 

Abbreviations: 

DOD: Department of Defense: 

CERP: Commander's Emergency Response Program: 

NDAA: National Defense Authorization Act: 

USAID: U.S. Agency for International Development: 

[End of section] 

United States Government Accountability Office: 
Washington, DC 20548: 

July 29, 2011: 

Congressional Committees: 

U.S. federal agencies, including the Department of Defense (DOD), the 
Department of State (State), and the U.S. Agency for International 
Development (USAID), are involved in stabilization, reconstruction, 
and development efforts in Iraq and Afghanistan. In June 2006, as part 
of its counterinsurgency strategy, DOD created the Task Force for 
Business and Stability Operations (Task Force) to support economic 
stabilization efforts in Iraq. In July 2009, the Task Force also began 
to operate in Afghanistan. From fiscal year 2007 through fiscal year 
2011, the Task Force received about $753 million for its activities. 
Officials in DOD, State, and USAID have questioned whether the Task 
Force and its capabilities should continue to reside in DOD or be 
transitioned to another federal agency, such as USAID. To that end, 
the Ike Skelton National Defense Authorization Act (NDAA) for Fiscal 
Year 2011[Footnote 1] required, among other things, that State, DOD, 
and USAID jointly develop a plan to transition the activities of the 
Task Force in Afghanistan to State, with the focus on potentially 
transitioning activities to USAID. 

We began a review of Task Force management and information-sharing 
activities under the authority of the Comptroller General of the 
United States to conduct work on his own initiative. The Joint 
Explanatory Statement accompanying the fiscal year 2011 NDAA 
recognized GAO's ongoing review and directed GAO to include some 
additional information in its report. This report (1) identifies 
factors to be considered in planning any transfer of Task Force 
capabilities to USAID and (2) evaluates the extent to which the Task 
Force had established guidance for its personnel to manage its 
activities and shared information about its activities with other U.S. 
civilian agencies. In our discussion of factors, we included 
information on the relationship between Task Force activities and the 
U.S. Integrated Civilian-Military Campaign Plan for Support to 
Afghanistan. 

For our review, we reviewed documentation and interviewed key 
officials at DOD, the Department of Agriculture, the Department of 
Commerce, State, the Department of the Treasury, and USAID in 
headquarters locations and at the U.S. embassies and military commands 
in Iraq and Afghanistan. To identify factors to consider in planning 
any transition of Task Force capabilities to USAID, we interviewed 
cognizant DOD, State, and USAID senior-level policy officials. 
Specifically, we obtained their views on the respective capabilities 
and operational approaches of the Task Force and USAID and reviewed 
relevant and available documentation. To evaluate the extent to which 
the Task Force had established guidance to manage its activities, we 
reviewed documents describing the Task Force's operating approach, 
projects, and activities; performance goals and measures; as well as 
budget submissions and security protocols. We compared this 
information to requirements for documentation contained in GAO's 
internal control standards and prior work related to management and 
evaluation.[Footnote 2] To evaluate the extent to which the Task Force 
had shared information with other civilian federal agencies involved 
with economic stabilization efforts in Afghanistan, we reviewed DOD 
guidance, such as DOD Instruction 3000.05, as well as National 
Security Presidential Directive 44, to determine coordination 
requirements. We also interviewed agency officials and analyzed 
documents from multiple agencies to identify the types of information 
shared and any processes used to share information. We focused this 
portion of our review on information-sharing practices in Afghanistan 
because the Task Force ceased its operations in Iraq in January 2011. 
More detailed information on our scope and methodology can be found in 
appendix I. 

We conducted this performance audit from August 2010 through July 2011 
in accordance with generally accepted government auditing standards. 
Those standards require that we plan and perform the audit to obtain 
sufficient, appropriate evidence to provide a reasonable basis for our 
findings and conclusions based on our audit objectives. We believe 
that the evidence obtained provides a reasonable basis for our 
findings and conclusions based on our audit objectives. 

Background: 

In 2006, the Deputy Secretary of Defense created the Task Force for 
Business and Stability Operations. Its initial focus was to improve 
DOD's contracting processes as a means to increase the number of DOD 
contracts awarded to Iraqi firms and therefore help to develop 
businesses and create jobs. Soon thereafter, the Task Force's scope of 
operations expanded to include efforts intended to restart Iraqi state-
owned factories, attract foreign investment, improve private banking, 
and revitalize Iraq's agriculture and energy sectors. For Iraqi state-
owned factories, the Task Force procured spare parts, production 
equipment, and raw materials and provided training to employees. 
Additionally, the Task Force reported that it established temporary 
office space to provide accommodation for companies seeking to invest 
and establish a permanent presence in Iraq. To improve banking in 
Iraq, the Task Force reported that it helped establish capacity to 
transfer funds electronically. 

In July 2009, the Task Force began shifting its focus to Afghanistan 
at the request of the International Security Assistance Force, U.S. 
Central Command, and the U.S. Embassy in Kabul. Task Force officials 
and subject matter experts conducted a 3-month assessment to develop a 
strategy and plan for activities in Afghanistan. As a result, they 
identified several areas of the Afghan economy that they believed were 
viable for investment, such as minerals, indigenous industries, and 
agriculture. According to Task Force documentation, the Task Force 
completed a project in December 2010 with the Afghanistan government 
to rehabilitate an oil well to demonstrate the commercial feasibility 
of oil production in Afghanistan. It also has several activities 
ongoing in other areas, such as assisting the Afghan Ministry of Mines 
with collecting and collating geological data with the U.S. Geological 
Survey to complete tender packages for investment, building carpet 
finishing facilities to allow domestically finished carpets to be sold 
through an international outlet, and planning to construct 
agricultural colleges at Afghan universities that will serve farmers 
and agribusiness. In addition, the Task Force has ongoing activities 
in banking and finance, energy, software industry development, and 
information and communication technology development in Afghanistan. 

The Task Force uses a variety of approaches to conduct its work, 
including arranging visits for U.S. and non-U.S. investors to meet 
with business leaders and undertaking specific development projects 
that could involve building facilities or conducting assessments to 
identify potential opportunities. To implement its projects, the Task 
Force may use contractors to build facilities or provide assistance to 
host government ministries or organizations. While the Task Force 
undertakes some projects by itself, in other cases it works with other 
organizations, for example USAID, State, or other DOD organizations. 
In these cases, the Task Force may provide support to other agencies 
or complete a portion of a project. For example, the Task Force has 
worked with USAID on the rehabilitation and electrification of a 
cement plant in Parwan. As of June 2011, the Task Force consists of 51 
government employees and 28 subject matter experts from private firms. 

Since its inception, the Task Force has received funds from a variety 
of sources, including the Army's Operations and Maintenance 
appropriation account, the Iraq Freedom Fund,[Footnote 3] and the 
Office of the Secretary of Defense's Emergency and Extraordinary 
Expense Fund.[Footnote 4] In January 2011, Congress passed the NDAA 
for Fiscal Year 2011, which authorized the Task Force to use up to 
$150 million of operations and maintenance funds available to the Army 
for overseas contingency operations for its activities in Afghanistan. 
Table 1 shows the funding available for the Task Force from fiscal 
year 2007 through fiscal year 2011.[Footnote 5] 

Table 1: Funding Available to the Task Force (Fiscal Years 2007 
through 2011): 

Source: Operations and Maintenance (Army); 
FY 2007: $68,700,000; 
FY 2008: $90,300,000; 
FY 2009: $152,000,000; 
FY 2010: $189,400,000; 
FY 2011: $150,000,000; 
Total: $650,400,000. 

Source: Iraq; 
FY 2007: 68,700,000; 
FY 2008: 90,300,000; 
FY 2009: 137,000,000; 
FY 2010: 114,200,000; 
FY 2011: [Empty]; 
Total: $410,200,000. 

Source: Afghanistan; 
FY 2007: [Empty]; 
FY 2008: [Empty]; 
FY 2009: 15,000,000; 
FY 2010: 75,200,000; 
FY 2011: 150,000,000; 
Total: $240,200,000. 

Source: Iraqi Freedom Fund; 
FY 2007: 50,000,000; 
FY 2008: 50,000,000; 
FY 2009: [Empty]; 
FY 2010: [Empty]; 
FY 2011: [Empty]; 
Total: $100,000,000. 

Source: Emergency and Extraordinary Expense Fund; 
FY 2007: [Empty]; 
FY 2008: 3,000,000; 
FY 2009: [Empty]; 
FY 2010: 495,000; 
FY 2011: [Empty]; 
Total: $3,495,000. 

Source: Total; 
FY 2007: $118,700,000; 
FY 2008: $143,300,000; 
FY 2009: $152,000,000; 
FY 2010: $189,895,000; 
FY 2011: $150,000,000; 
Total: $753,895,000. 

Source: DOD. 

Note: Numbers may not sum to totals because of rounding. 

[End of table] 

The NDAA for fiscal year 2011[Footnote 6] required that State, DOD, 
and USAID jointly develop a plan to transition the activities of the 
Task Force to State, with a focus on potentially transitioning 
activities to USAID. The plan, which was to be submitted to Congress 
at the same time as the President's fiscal year 2012 budget, was to 
describe (1) the Task Force's activities in Afghanistan in fiscal year 
2011; (2) the Task Force's activities in fiscal year 2011 that USAID 
will continue in fiscal year 2012, including those activities that may 
be merged with similar USAID efforts; (3) any of the Task Force's 
fiscal year 2011 activities that USAID will not continue and the 
reasons; and (4) those actions that may be necessary to transition 
Task Force activities that will be continued by USAID in fiscal year 
2012. The NDAA also required the President, acting through the 
Secretary of Defense and the Secretary of State, to submit a report on 
an economic strategy for Afghanistan by July 6, 2011. Furthermore, the 
NDAA required the Secretary of Defense to submit a report describing 
the Task Force's activities and how these activities support the long-
term stabilization of Afghanistan by October 31, 2011. 

Factors to Consider in Planning Any Transition of Task Force 
Capabilities from DOD to USAID: 

The fiscal year 2011 NDAA[Footnote 7] required that State, DOD, and 
USAID jointly develop a plan to transition the activities of the Task 
Force in Afghanistan to State. As of June 2011, the plan had not been 
submitted. Officials from DOD, State, and USAID told us that they are 
continuing to discuss the options for and timing of any transition and 
developing a response to satisfy the requirement for a plan in the 
fiscal year 2011 NDAA. According to USAID officials, to plan for any 
transition, they would need detailed information about the Task Force 
activities, such as project objectives, timelines, costs, contracting, 
and actual results. To identify factors to consider in planning for 
any transition of Task Force capabilities from DOD to USAID, we 
interviewed DOD, State, and USAID senior-level policy officials in 
Afghanistan and Washington, D.C. We obtained their views on the 
respective capabilities and operational approaches of the Task Force 
and USAID and reviewed relevant and available documentation. As a 
result, we identified five factors to consider in planning for any 
transition, which generally relate to how these agencies conduct their 
respective activities. 

Approaches to economic development. Although we identified some 
overlap in the roles of the Task Force and USAID, since both entities 
work to promote economic development in Afghanistan, they generally 
take different approaches to achieve their goals. In particular, USAID 
officials noted that in addition to other activities, USAID focuses 
more broadly on efforts to improve the environment for investments 
whereas the Task Force focuses on brokering specific investment deals. 
Specifically, the Task Force was designed to be a small, flat, 
flexible organization that generally conducts short-term initiatives 
in various sectors of the Afghan economy. For example, the Task Force 
is building a raisin processing facility in Kandahar to process 
raisins for export. It also facilitated meetings for Sweet Dried 
Fruit, the largest U.S. importer of raisins, to purchase Afghan 
raisins for the U.S. market. USAID is a larger development agency 
operating in many sectors ranging from infrastructure construction to 
capacity building as well as promotion of private sector development, 
both in the short and long term. For example, USAID worked with 
ministries to develop public administration and management capacity to 
foster government reform and establish the conditions for economic 
development. In addition, USAID generally focuses on both small and 
large infrastructure projects, ranging from small health clinics to 
agricultural colleges to roads and power plants. Furthermore, in some 
cases, USAID and the Task Force work in the same sectors of 
Afghanistan, but U.S. development officials in Afghanistan do not 
consider Task Force projects to be duplicative of USAID efforts. For 
example, USAID officials noted that USAID and the Task Force are both 
involved in the Afghan mining sector. USAID is focused on improving 
the regulatory policies to promote mining sector development and 
attract private sector investment through conferences, while the Task 
Force is focused on collecting and collating mining data with the U.S. 
Geological Survey, developing detailed investment proposals, and 
identifying and attracting investors. 

Freedom of movement. According to USAID, State, and DOD officials, 
Task Force employees have greater freedom of movement than USAID 
employees because the Task Force employees operate outside of Chief of 
Mission[Footnote 8] authority and therefore are not required to follow 
the security protocols of the U.S. Embassy in Kabul's Regional 
Security Officer.[Footnote 9] In addition, the Task Force maintains 
its own security detail and is a DOD entity. As a result, Task Force 
employees have an increased ability to directly implement and oversee 
its projects, greater access to military assets, and flexibility to 
host potential investors. USAID employees operate under Chief of 
Mission authority and are subject to more restrictions on their 
movements. As GAO has previously reported, movement restrictions 
affect the ability of USAID employees to directly implement and 
oversee USAID's projects.[Footnote 10] USAID headquarters officials 
noted that USAID uses implementing partners[Footnote 11] to carry out 
some of its projects and that they operate outside Chief of Mission 
authority. Senior State headquarters and USAID and State embassy 
officials said that lessening restrictions on USAID movement would 
require an exemption from the Regional Security Officer's policy by 
the Ambassador and State's Under Secretary for Management and would be 
challenging in the current security environment in Afghanistan. 
Furthermore, given the location and security requirements related to 
some of the Task Force's work, such as mining, a memorandum of 
understanding between USAID and DOD might be necessary to provide 
USAID employees greater access to military security and transportation 
assets if Task Force activities are transitioned to USAID. 

USAID funding and staffing. USAID's fiscal year 2011 budget and fiscal 
year 2012 budget request did not take into account any needs to 
support Task Force activities. However, USAID headquarters officials 
noted that if a transition were to occur they have flexibility to 
reprogram funds to accommodate the Task Force projects selected for 
transition. To continue Task Force activities, senior-level embassy 
and USAID officials in Afghanistan also identified potential staffing 
challenges. For example, the Task Force consists of individuals with 
private sector expertise and business contacts who have agreed to live 
and work under the Task Force's current security arrangement in 
Afghanistan (e.g., outside Chief of Mission authority) and are 
comfortable with the way the Task Force operates. According to USAID 
officials, many of its employees also have private sector experience 
and business contacts, but they live and work under a different 
security arrangement (e.g., under Chief of Mission authority). Embassy 
personnel stated that because of differences in the way the two 
agencies approach their activities, it may prove challenging for USAID 
to attract employees with the same expertise to broker investment 
deals as currently exists within the Task Force. 

Facilitating private investment in Afghanistan. While both USAID and 
the Task Force facilitate private investment, the nature and focus of 
their interactions with investors differ. For example, the Task Force 
identifies and provides direct logistical and consultative support to 
U.S. and non-U.S. potential investors. Such support includes advising 
companies on investment opportunities, arranging access to Afghan 
business leaders and officials, and providing temporary housing, 
transportation, and office space while investors evaluate 
opportunities and set up their own operations. The Task Force has 
hosted major international corporations and investors in Afghanistan, 
including Citibank, IBM, JP Morgan, Sweet Dried Fruit, Case New 
Holland, and Harrods of London. With respect to facilitating private 
investment, USAID typically hosts conferences that are designed to 
attract businesses or share information. Given their differences in 
approach, interaction with investors, and flexibility to move around, 
as previously discussed, senior USAID and State officials in 
Afghanistan agreed that these investment activities currently 
conducted by the Task Force may not continue if a transition to USAID 
occurs. 

Timing of transition and linkage to U.S. objectives in Afghanistan. 
Task Force activities in Afghanistan are intended to support 
objectives associated with the revised U.S Integrated Civilian-
Military Campaign Plan for Support to Afghanistan. The plan has 
several objectives associated with U.S. goals and with the 
International Security Assistance Force's lines of operations, 
including "Advancing Livelihoods and Sustainable Jobs." Under this 
objective, the United States seeks to increase the productivity of 
small and medium-sized enterprises and promote domestic and foreign 
private sector investment in Afghanistan into 2012. Because the Task 
Force is involved in various efforts to spur private investment, 
senior-level DOD, State, and USAID officials in Afghanistan have 
stated that a transition in the near term may negatively impact these 
efforts, which are deemed essential for the transition of U.S. forces 
out of Afghanistan. 

The Task Force Has Not Documented Specific Guidelines for Managing 
Activities, and Its Information-Sharing Efforts in Afghanistan Are 
Focused on Senior-Level Officials and Are Not Integrated into Existing 
Mechanisms: 

To guide Task Force activities, DOD's senior leadership and the Task 
Force Director have provided high-level, general direction to Task 
Force activities; however, the Task Force has not developed written 
guidance to be used by its personnel in managing Task Force projects. 
In addition, while interagency information-sharing mechanisms exist in 
Afghanistan, the Task Force does not routinely participate in these 
mechanisms, nor have DOD, State, and USAID determined how to integrate 
the Task Force into these information-sharing efforts. 

The Task Force Lacks Formal Written Guidance to Manage Its Activities: 

DOD's senior leadership and the Task Force Director have provided high-
level, general direction for Task Force activities, such as broad 
goals, an operating philosophy, and management practices. However, the 
Task Force has not developed written guidance to be used by its 
personnel in managing Task Force projects. Such guidance could include 
elements such as project selection criteria, requirements to establish 
project metrics, monitoring and evaluation processes, and the type of 
project information that should be collected and documented. 

DOD and the Task Force have issued various memorandums that have 
broadly guided the Task Force's activities. For example, the Task 
Force's mission and goals were established through three memorandums 
issued by the Deputy Secretary of Defense and Secretary of Defense 
over the time period from 2006 to 2010. The June 2006 memorandum 
stated, for example, that the Task Force was to accelerate DOD's 
stabilization and reconstruction operations through economic 
development activities in Iraq and Afghanistan. Additionally, in 
December 2009, the Director of the Task Force issued a management 
memorandum outlining the Task Force's operational model, which 
mentioned that the Task Force has been successful because it is 
designed to flexibly respond to the dynamic operating environments of 
Iraq and Afghanistan while combat operations were ongoing and 
emphasized the necessity of field-based project management. 

Task Force officials stated that they use various practices to manage 
activities, such as holding periodic internal management meetings to 
review plans and monitor project implementation. In addition, we found 
that Task Force officials also maintain some project information. 
Based on our discussion with Task Force officials and our review of 
Task Force documentation, we confirmed that some of the information 
contained in the project files included project descriptions, goals, 
objectives and metrics, contract information, and financial 
information. We found that the level of detail on the project 
information maintained by the Task Force varied, such as for data on 
cost, status, and metrics. For example, the Task Force's project files 
on its factory restart efforts in Iraq included detailed information 
such as cost and project status, and such data were updated 
periodically. In contrast, project files on the Task Force's project 
documentation on its agricultural assessment activities contained 
related final reports, but the documentation did not contain 
information on cost and only one report contained schedule 
information. Furthermore, the Task Force's electronic fund transfer 
assistance center in Iraq tracked metrics such as the number of 
problems reported and the causes of the problems. In contrast, Task 
Force project documentation on its private investment facilitation 
efforts in Iraq did not have clearly defined metrics. 

Neither DOD memorandums nor the Director's memorandum describing the 
Task Force's operational model outline specific guidelines for project 
management, such as project selection criteria, requirements to 
establish project metrics, monitoring and evaluation processes, or how 
program managers should maintain project information. Standards for 
Internal Control in the Federal Government requires agencies to 
document guidance to help manage agency activities but allows agencies 
to tailor control activities.[Footnote 12] According to the standards, 
written guidance that directs project management is an integral part 
of an agency's planning, implementing, reviewing, and accountability 
for stewardship of government resources and achieving effective 
results. We also note that two assessments of the Task Force's 
activities have identified a need for project guidance. First, in 
2009, the Task Force appointed an assessment team to evaluate its 
activities to restart state-owned factories in Iraq. This assessment 
team stated, among other things, that the lack of project 
documentation made it difficult to gain a clear understanding of the 
Task Force's operating environment. In addition, the assessment team 
noted that the Task Force should consider developing standard 
processes and procedures for internal controls and a standard 
repository for project reporting. Second, the Task Force conducted an 
internal assessment and released the findings in February 2009, which 
noted that basic managerial structure and processes were lacking to 
ensure continuity of operations and that it would issue new guidelines 
for operational management. According to Task Force officials, the 
December 2009 memorandum outlining the Task Force's operational 
philosophy was issued in response to this internal review. However, it 
did not contain specific management guidelines, and no other guidance 
has been issued. 

Senior Task Force officials told us that they have recognized the need 
to establish project management guidance; however, they stated that 
taking this action was not a priority because at times the future of 
the Task Force was uncertain. For example, from late 2008 through 
March 2009, it was unclear whether the Task Force would be 
reauthorized by the Secretary of Defense to continue activities in 
Iraq. As a result, a large number of Task Force staff left the 
organization, and when the Task Force was reauthorized in March 2009, 
senior Task Force officials stated that it only had three permanent 
staff members and had to recruit additional staff. During the time of 
organizational uncertainty, members of the Task Force were focused on 
completing projects in Iraq and were not, according to Task Force 
officials, focused on developing and documenting guidance and policies. 

Task Force Information-Sharing Efforts Are Focused on Senior-Level 
Officials in Afghanistan and Not Formally Integrated into Existing 
Coordination Mechanisms: 

DOD Instruction 3000.05 states that integrated civilian and military 
efforts are essential to conducting successful stability operations 
[Footnote 13] and requires DOD and its components to collaborate with 
other U.S. government agencies, among other organizations, involved 
with the planning, preparation, and conduct of stability operations. 
[Footnote 14] The 2010 DOD Task Force memorandum also requires it to 
coordinate with relevant U.S. government agencies for executing 
assignments in theater, as appropriate. In addition, according to the 
DOD Joint Publication on counterinsurgency operations, coordination 
and/or integration of military efforts with other governmental or 
nongovernmental efforts to achieve a whole of government approach is 
essential for successful counterinsurgency operations, which include 
stabilization efforts to foster economic stability and development. 
[Footnote 15] 

The Task Force has generally focused its information-sharing efforts 
on the senior U.S. official level in Afghanistan. According to Task 
Force officials, they regularly brief senior-level U.S. military and 
civilian officials, such as the Commander of the International 
Security Assistance Force and U.S. Forces-Afghanistan, the Ambassador 
to Afghanistan, and the Special Representative for Afghanistan and 
Pakistan, on the activities and projects of the Task Force in 
Afghanistan. Senior Task Force officials stated that they have also 
shared information on their activities and projects with the USAID 
Mission Director and the Coordinating Director of Development and 
Economic Affairs at the U.S. Embassy in Kabul, Afghanistan. 

While the Task Force regularly shares information with senior leaders, 
its information sharing at the project management level in Afghanistan 
has been more ad hoc. Several civilian development officials in 
Afghanistan expressed concerns about the inconsistency of information 
sharing by the Task Force. For example, according to USAID officials 
in Afghanistan information sharing between USAID and the Task Force 
has generally been limited and irregular. However, development 
officials also stated that coordination with the Task Force was 
generally better on joint projects, such as on a cement factory 
revitalization project in Parwan province. Task Force officials agreed 
that information sharing below the senior level is on an ad hoc basis 
and noted that they expected senior leaders they briefed to share 
information from the Task Force with appropriate staff within their 
own organizations. Task Force officials believe that they have 
interacted frequently below the senior level but acknowledged that 
there have been gaps in the Task Force's information sharing and 
improvements could be made. 

While mechanisms such as interagency working groups exist in 
Afghanistan for agencies involved in development activities to share 
information, the Task Force does not routinely participate in these 
mechanisms nor have DOD, State, and USAID determined how to integrate 
the Task Force into these information-sharing efforts. The Task Force 
has been required to more formally share information on its projects 
and activities through other processes in the past, but these 
processes were either onetime requirements or are no longer 
applicable. For example, the NDAA for fiscal year 2011 required the 
Task Force to obtain the concurrence of the Secretary of State for its 
planned fiscal year 2011 projects in Afghanistan.[Footnote 16] State 
officials said that the concurrence process generally improved the 
visibility of Task Force activities in Afghanistan. The Task Force was 
also required to share information on its activities and projects in 
Afghanistan as part of the Commander's Emergency Response Program 
(CERP). The Task Force used the program to implement some of its 
fiscal year 2010 projects in Afghanistan and had to meet the program's 
requirements, which included a review process that involved USAID and 
U.S. military officials. However, pursuant to the NDAA for fiscal year 
2011, the Task Force is no longer able to use CERP to implement its 
projects. Currently, a number of interagency working groups have been 
established to share information regarding various aspects of 
development. For example, there are interagency working groups 
directed by the Coordinating Director of Development and Economic 
Affairs at the U.S. Embassy in Kabul that are involved with 
development in Afghanistan. For example, the Economic and Financial 
Policy Working Group is responsible for implementing the U.S. economic 
growth strategy for Afghanistan.[Footnote 17] Embassy, USAID, and Task 
Force officials have stated that the Task Force does not regularly 
attend the working group's biweekly meetings. Another mechanism 
mentioned in our prior work is the Combined Information Data Network 
Exchange used by the U.S. military to track CERP projects.[Footnote 
18] This database included information on CERP projects; an 
unclassified version of the database is accessible by USAID and other 
organizations. However, agency officials have not agreed on the most 
appropriate mechanisms to use and the level of participation for the 
Task Force. 

Senior embassy officials stated that improved information sharing by 
the Task Force would help with unity of effort and that a mechanism to 
facilitate information sharing would be useful. Development officials 
have also noted the importance of improving information sharing by the 
Task Force to ensure that all U.S. government development projects in 
Afghanistan are coordinated to support the U.S. economic strategy. 
Furthermore, our prior work has highlighted the need to improve 
information sharing between agencies working on development in 
Afghanistan, particularly USAID and DOD, to improve coordination. 
[Footnote 19] 

Conclusions: 

Strengthening the Afghan economy through stabilization and development 
assistance efforts is critical to the counterinsurgency strategy and a 
key part of the U.S. Integrated Civilian-Military Campaign Plan for 
Support to Afghanistan. To support U.S. goals in Afghanistan, DOD's 
Task Force and USAID both undertake efforts that promote economic 
development, including facilitating private sector investment. While 
the two organizations are similarly focused on stabilizing and 
developing Afghanistan's economy, some differences exist in the way 
they carry out their projects and activities. Therefore, factors such 
as their respective approaches to economic development, ability to 
move around, and the types of activities they undertake to identify 
investment opportunities and interact with potential U.S. and non-U.S. 
investors are important considerations in planning for any transition. 

Written guidance is a key element that can help agencies manage their 
activities and establish internal controls. Without formally defined 
project management guidance, the Task Force does not have the 
framework needed to ensure a standard operating approach and 
consistent project management. In addition, the absence of such 
guidance makes it more difficult to ensure accountability among its 
employees, minimize the potential for waste and abuse, monitor and 
evaluate project effectiveness, and ensure a smooth transition as 
personnel join or leave the Task Force. Finally, whereas the Task 
Force, like other agencies operating in Afghanistan, has projects and 
activities that focus on economic development, improving efforts to 
share information could identify opportunities for synergy and to 
avoid duplication. Without an agreed-upon approach to more fully 
integrate the Task Force into existing information-sharing mechanisms 
in Afghanistan, DOD, State, USAID, and other agencies will not be in a 
position to fully leverage and coordinate their respective 
capabilities and efforts in support of achieving U.S. economic 
development goals. 

Recommendations for Executive Action: 

To ensure effective project management, oversight, and accountability, 
we recommend that the Secretary of Defense direct the Task Force to 
develop written guidance that documents, as appropriate, its 
management processes and practices, including elements such as 
criteria for project selection, requirements for establishing metrics 
and project documentation, and project monitoring and evaluation 
processes. 

To improve information sharing among the Task Force and other federal 
agencies involved with stabilization and economic development efforts 
in Afghanistan, we recommend that the Secretary of Defense in 
consultation with the Secretary of State and the Administrator of 
USAID determine the most appropriate mechanism for integrating Task 
Force participation. Such mechanisms could include formalizing the 
process previously used to obtain State concurrence on Task Force 
projects, participating in appropriate working groups in Afghanistan, 
and/or including Task Force project and activity information in 
existing databases. 

Agency Comments and Our Evaluation: 

We provided a draft of this report to the DOD, State, and USAID. DOD 
and USAID provided written comments, which are reprinted in appendixes 
II and III, respectively. State provided oral comments on the draft. 
DOD and USAID also provided technical comments, which we incorporated 
where appropriate. 

In its comments, DOD partially concurred with our recommendation that 
the Secretary of Defense direct the Task Force to develop written 
guidance that documents, as appropriate, its management processes and 
practices. DOD stated that it encourages this practice and noted that 
the Secretary of Defense has issued the necessary directives and 
instructions to DOD components, including the Task Force, on the 
development of project management guidelines. DOD further stated that 
the Task Force is reviewing its program management processes and will 
consider how to implement our recommendation, to the extent 
practicable. Both DOD and State concurred with our recommendation that 
the Secretary of Defense in consultation with the Secretary of State 
and the Administrator of USAID determine the most appropriate 
mechanism for integrating Task Force participation in information-
sharing efforts in Afghanistan. DOD stated that it has reached 
agreement with the senior leadership of State and USAID to enhance 
coordination and information sharing of Task Force activities. 
According to a Task Force official, the details of this agreement are 
being finalized and will be discussed in the forthcoming response to 
the fiscal year 2011 NDAA requirements. State noted that we had 
adequately captured the need for increased coordination, 
communication, and information sharing. 

In its comments, USAID expressed its view that overall the report 
contained inaccuracies and misrepresentations that need to be 
corrected. USAID also made several statements regarding the objectives 
of our report. Specifically, USAID asserted that our report addressed 
the issue of whether Task Force activities should continue to reside 
in DOD or be transferred to another agency. USAID further noted that 
the report makes no recommendation as to a transfer of activities, but 
believed our recommendation to strengthen internal Task Force 
procedures and processes seemed to acknowledge the continued existence 
of the Task Force, and our reluctance to recommend consolidation of 
Task Force activities stems from a lack of understanding of how USAID 
operates. It believed this lack of understanding was reflected in our 
discussion of the five factors to be considered in planning for any 
transition. Specifically, USAID cited our discussion of the differing 
approaches of the Task Force and USAID to economic development, 
stating that our report describes USAID as focusing on improving the 
environment for investments while the Task Force focuses on brokering 
specific investment deals. USAID stated that it does not focus only on 
improving the environment for investments, noting that it has one 
project with this goal and several projects that focus on other areas 
of investment, including brokering specific deals. In addition, USAID 
stated that our report notes that the Task Force has an advantage over 
USAID because it has greater flexibility to visit project sites and 
access to the military. USAID noted that both USAID and the Task Force 
use contractors to implement projects, who have different and fewer 
security and movement restrictions than U.S. government employees. It 
specifically stated that USAID-employed Afghans and contractors can 
access all areas. 

We disagree that our report contains inaccuracies and 
misrepresentations, and believe that USAID has mischaracterized the 
intent of our work. Our objectives, as stated in the report, were to 
identify factors that should be considered in planning for any 
potential transition of Task Force capabilities to USAID. We did not 
evaluate whether such a transfer should occur, and therefore make no 
recommendation to that effect. We disagree that our recommendation 
regarding the need for the Task Force to develop project management 
guidelines suggests the continued existence of the Task Force. Rather, 
such a framework will be necessary regardless of whether the Task 
Force continues to reside in DOD or transfers to another agency. We 
also disagree with USAID's description of certain information in our 
report. Specifically, with respect to USAID's approach to economic 
development, our report does not state that USAID only focuses on 
improving the environment for investment. Rather, we specifically 
discuss that USAID operates in many sectors in Afghanistan ranging 
from infrastructure construction to capacity building as well as 
promotion of private sector development, both in the short and long 
term. In particular, we note that USAID activities include sponsoring 
conferences where prospective investors have the opportunity to gather 
information about potential investment opportunities. Finally, we do 
not pass judgment on whether the Task Force has an advantage over 
USAID with respect to freedom of movement, but rather point out the 
conditions under which employees of the two agencies conduct their 
activities, such as whether they are subject to Chief of Mission 
authority. We also specifically discuss that USAID uses contractors to 
help implement its projects, and that these contractors have access to 
project sites. In light of USAID's comments, we have clarified the 
report text to more clearly identify the instances in which we are 
referring to direct employees compared to contractors. 

USAID also commented on our recommendation that the Secretary of 
Defense in consultation with the Secretary of State and the 
Administrator of USAID determine the most appropriate mechanism for 
integrating Task Force participation in information-sharing efforts in 
Afghanistan. Specifically, it agreed with the need for more and more 
effective information sharing but believed that our recommendation 
fell short of addressing the need for full integration of 
stabilization and development activities across the federal 
government. USAID noted that information sharing is not enough if the 
U.S. government is to efficiently plan, manage, and integrate multiple 
development projects from different agencies in overlapping sectors or 
ministries. It emphasized that active senior management direction and 
support from the Task Force, along with State and USAID, are required 
for effective integration of planning and project execution, and that 
consolidation of Task Force and USAID activities would go even further 
to ensure that activities are fully integrated and that gaps or 
duplication do not occur. In particular, USAID proposed that we expand 
our recommendation on information sharing to require that the Task 
Force's project portfolio management become more institutionalized and 
integrated into State and USAID planning and project reporting 
processes. 

We agree with USAID's comments regarding the need for greater 
integration of U.S. activities, and believe that our recommendation 
supported by other information contained in our report specifically 
conveys this intent. In particular, our conclusions state that without 
an agreed-upon approach to more fully integrate the Task Force into 
existing information-sharing mechanisms in Afghanistan, DOD, State, 
USAID, and other agencies will not be in a position to fully leverage 
and coordinate their respective capabilities and efforts in support of 
achieving U.S. economic development goals. We also note that in 
presenting our recommendation, we identify various options for DOD, 
State, and USAID to consider for achieving better information sharing 
and integration, including formalizing the process used to obtain 
State concurrence on Task Force activities. We note that this process, 
when used in the past, has involved both State and USAID review of 
Task Force activities. 

We are sending copies of this report to the Secretary of Defense, the 
Secretary of State, and the Administrator of the U.S. Agency for 
International Development. The report also is available at no charge 
on the GAO Web site at [hyperlink, http://www.gao.gov]. 

If you or your staff have any questions about this report, please 
contact me at (202) 512-9619 or pickups@gao.gov. Contact points for 
our Offices of Congressional Relations and Public Affairs may be found 
on the last page of this report. GAO staff who made major 
contributions to this report are listed in appendix IV. 

Signed by: 

Sharon Pickup: 
Director, Defense Capabilities and Management: 

List of Committees: 

The Honorable Carl Levin: 
Chairman The Honorable John McCain: 
Ranking Member: 
Committee on Armed Services: 
United States Senate: 

The Honorable John F. Kerry: 
Chairman: 
The Honorable Richard G. Lugar: 
Ranking Member: 
Committee on Foreign Relations: 
United States Senate: 

The Honorable Daniel K. Inouye: 
Chairman: 
The Honorable Thad Cochran: 
Ranking Member: 
Subcommittee on Defense: 
Committee on Appropriations: 
United States Senate: 

The Honorable Patrick J. Leahy: 
Chairman: 
The Honorable Lindsey O. Graham: 
Ranking Member: 
Subcommittee on the Department of State, Foreign Operations, and 
Related Programs: 
Committee on Appropriations: 
United States Senate: 

The Honorable Howard P. "Buck" McKeon: 
Chairman: 
The Honorable Adam Smith: 
Ranking Member: 
Committee on Armed Services: 
House of Representatives: 

The Honorable Ileana Ros-Lehtinen: 
Chairman: 
The Honorable Howard L. Berman: 
Ranking Member: 
Committee on Foreign Affairs: 
House of Representatives: 

The Honorable C. W. Bill Young: 
Chairman: 
The Honorable Norman D. Dicks: 
Ranking Member: 
Subcommittee on Defense: 
Committee on Appropriations: 
House of Representatives: 

The Honorable Kay Granger: 
Chairwoman: 
The Honorable Nita M. Lowey: 
Ranking Member: 
Subcommittee on State, Foreign Operations, and Related Programs: 
Committee on Appropriations: 
House of Representatives: 

[End of section] 

Appendix I: Scope and Methodology: 

We began our review of the Department of Defense's (DOD) Task Force 
for Business and Stability Operations (Task Force) under the authority 
of the Comptroller General of the United States to conduct work on his 
own initiative. The Joint Explanatory Statement accompanying the Ike 
Skelton National Defense Authorization Act for Fiscal Year 2011 
recognized GAO's ongoing review and directed GAO to include some 
additional information in its report. This report (1) identifies 
factors to consider in planning any transition of Task Force 
capabilities to the U.S. Agency for International Development (USAID) 
and (2) evaluates the extent to which the Task Force had established 
guidance to manage its activities and shared information with other 
U.S. civilian agencies. In our discussion of factors, we included 
information on the relationship between Task Force activities and the 
U.S. Integrated Civilian-Military Campaign Plan for Support to 
Afghanistan. 

To identify factors to consider in planning any transfer of Task Force 
capabilities to USAID, we interviewed cognizant DOD, Department of 
State (State), and USAID senior-level policy officials, including 
officials at the U.S. Embassy in Kabul. At the U.S. Embassy in Kabul, 
we interviewed the Coordinating Director for Development and Economic 
Affairs and officials in the Economic Section, including the Economic 
Counselor; the Interagency Agriculture Team; and the Civilian-Military 
Plans and Assessments Team. We also interviewed USAID officials in 
Afghanistan, including the Mission Director in Afghanistan and 
officials in the Office of Economic Growth and Governance; the Office 
of Infrastructure, Engineering, and Energy; and the Stabilization 
Unit. During our interviews, we specifically obtained these officials' 
views on the respective capabilities and operational approaches of the 
Task Force and USAID and reviewed relevant and available 
documentation. To determine how the Task Force activities support the 
U.S. Integrated Civilian-Military Campaign Plan for Support to 
Afghanistan, we reviewed the 2009 and 2011 versions of the plan, as 
appropriate, to determine what campaign objectives Task Force 
activities support and interviewed relevant agency officials in both 
Washington, D.C., and Afghanistan. 

To evaluate the extent to which the Task Force has established 
guidance to manage its activities, we reviewed documentation 
describing the Task Force's operating approach, projects and 
activities, performance goals and measures, and budget submissions and 
security protocols. We compared this information to requirements for 
documentation contained in our internal control standards and prior 
work related to management and evaluation. To evaluate the extent to 
which the Task Force shared information on its activities with other 
civilian agencies involved with economic stabilization efforts in 
Afghanistan, we reviewed DOD guidance, such as DOD Instruction 
3000.05, and National Security Presidential Direction 44, to determine 
coordination requirements. We also interviewed officials from DOD, 
State, USAID, and the U.S. embassies in Baghdad and Kabul to identify 
the types of information shared and any processes used to share 
information. We focused this portion of our review on the information-
sharing activities and practices in Afghanistan because the Task Force 
ceased its operations in Iraq in January 2011. 

We conducted this performance audit from August 2010 through July 2011 
in accordance with generally accepted government auditing standards. 
Those standards require that we plan and perform the audit to obtain 
sufficient, appropriate evidence to provide a reasonable basis for our 
findings and conclusions based on our audit objectives. We believe 
that the evidence obtained provides a reasonable basis for our 
findings and conclusions based on our audit objectives. 

[End of section] 

Appendix II: Comments from the Department of Defense: 

Department Of Defense: 
Task Force for Business and Stability Operations: 
3600 Defense Pentagon, Pentagon Room 3C889A: 
Washington, D.C. 20301: 

July 15, 2011: 

Ms. Sharon Pickup: 
Director, Defense Capabilities and Management: 
U.S. Government Accountability Office: 
441 G Street, N.W. 
Washington, D.C. 20548: 

Dear Ms. Pickup: 

This is the Department of Defense response to the GAO draft report, 
GAO-11-715, 'Task Force for Business and Stability Operations: Actions 
Needed to Establish Project Management Guidelines and Enhance 
Information Sharing,' dated July 2011 (GAO Code 351525). The
Department generally concurs with the recommendations in the report. 
Our response to your recommendations is attached. The Department 
appreciates the opportunity to comment on the draft report. 

Respectfully, 

Signed by: 

Regina Dubey: 
SES: 
Acting Director & Director of Policy and Financial Management: 
Task Force for Business and Stability Operations: 

Enclosure: As stated: 

[End of letter] 

GAO Draft Report, 11-715, "Task. Force for Business and Stability 
Operations: Actions Needed to Establish Project Management Guidelines 
and Enhance Information Sharing." 

Dated July 2011: 

Department of Defense Comments to Recommendations Addressed to DoD: 

Recommendation 1: to ensure effective project management, oversight, and
accountability. GAO recommends that the Secretary of Defense direct 
the Task Force for Business and Stability Operations to develop 
%%titter) guidance that documents, as appropriate, its management 
processes and practices, including elements such as criteria for 
project selection, requirements for establishing metrics and project 
documentation, and project monitoring and evaluation processes. 

DoD Response: The Department partially concurs and encourages this 
practice. The Secretary of Defense has issued the necessary directives 
and instructions to DoD Components, including TFBSO, on the 
development of project management guidelines. In light of this report,
TFBSO is reviewing its program management processes and will consider 
how to implement this recommendation to the Intent practicable. 

Recommendation 2: To improve information sharing among the Task Force 
and other Federal agencies involved with stabilization and economic 
development efforts in Afghanistan, GAO recommended that the Secretary 
of Defense in consultation with the Secretary of State and the 
Administrator determine the most appropriate mechanism for integrating 
Task Force participation. 

DoD Response: The DOD concurs. The Department through the Under 
Secretary of Defense for Policy has reached agreement with the senior 
leadership of the Department of State and U.S. Agency for 
International Development to enhance coordination and information 
sharing of TFBSO activities. 

[End of section] 

Appendix III Comments from the U.S. Agency for International 
Development: 

USAID: 
From The American People: 

July 19, 2011: 

Ms. Sharon Pickup: 
Director, Defense Capability and Management Team: 
U.S. Government Accountability Office: 
Washington, DC 20548: 

Dear Ms. Pickup: 

The U.S. Agency for International Development (USAID) appreciates the  
opportunity to review the GAO draft report entitled "Task Force for 
Business and Stability Operations: Action Needed to Establish Project 
Management Guidelines and Enhance Information Sharing" (GA0-11-715). 

USAID notes that the report contains inaccuracies and 
misrepresentations that USAID believes are important to correct before 
final report issuance. The enclosed USAID comments  provide in detail 
the specific points that need clarification or correction.  These 
comments are provided for incorporation with this letter as an 
appendix  to the final report. 

Thank you for the courtesies extended by your staff in the conduct of 
this audit. 

Sincerely, 

Sean C. Carroll /s/:   
Chief Operating Officer: 
U.S. Agency for International Development: 

Enclosure: a/s. 

[End of letter] 
 
USAID Comments On GAO Draft Report No. GAO-11-715: 

General Comments: 

The Government accountability Office (GAO) report addresses the issue 
of whether the activities of the Task Force for Business and Stability 
Operation (TFBSO) should continue to reside in Department of Defense 
(DOD) or be transferred to another Federal agency in conjunction with 
the transition from a primarily military to a primarily civilian 
United States Government (USG) presence in Afghanistan. The GAO 
analysis focused on five specific areas: approaches to economic 
development, freedom of movement, USAID funding and staffing, 
facilitation of private investment in Afghanistan, and the timing of 
transition. 

While the report makes no specific recommendation as to a transfer of 
activities, its recommendation for the strengthening of internal Task 
Force procedures and processes seems to acknowledge the continued 
existence of the Task Force. The report then focuses on the need for 
greater participation by the Task Force in information-sharing efforts 
and interagency working groups to ensure the most effective use of 
available resources. 

While USAID concurs on the need for more and more-effective 
information-sharing, we also believe these recommendations fall short 
of addressing the need for full integration of stabilization and 
development activities across the federal government. As DOD reduces 
its presence in Afghanistan, and as Congress considers reductions to 
the total funding allocated to USG assistance to Afghanistan, we 
believe a joint DOD-State-USAID transition plan should be undertaken 
to identify other institutional options for TFBSO, including possible 
consolidation of some TFBSO activities into USAID in Afghanistan, with 
appropriate additional funding, to avoid duplication and to more 
effectively target the limited resources available. 

It appears some of the seeming reluctance to recommend consolidation 
stems from a lack of information about, and understanding of, how 
USAID operates. This problem is especially clear in the discussion of 
the five factors to be considered in planning for any transition. For 
example, the GAO report notes that TFBSO and USAID use different 
approaches to economic development, describing USAID as focusing on 
the broad objective of improving the environment for investments while 
the Task Force focuses on brokering specific investment "deals." But 
it is untrue that USAID focuses only on the "environment for 
investments." USAID/Afghanistan has one project that focuses on 
strengthening the investment environment (Economic Growth and 
Governance Initiative) and several projects that focus on other areas 
of investments in Afghanistan, including brokering specific investment 
deals throughout the portfolios of the Office of Economic
Growth, the Office of Agriculture, and other offices (e.g., 
Afghanistan Small- and Medium-sized Enterprise Development Project; 
Afghanistan Investment Support Agency; Incentives Driving Economic 
Alternatives for the North, East and West; Accelerating Sustainable 
Agriculture Program; Public-Private Partnerships). 

The GAO report also notes TFBSO has an advantage over US AID because 
it has "greater flexibility to visit project sites and access the 
military." But USAID and TFBSO both use contractors to implement 
projects. Contractors have different (and fewer) security and movement 
restrictions from U.S. Government employees — including military. 
True, TFBSO can travel and access any needed security. By the same 
token, USAID-employed Afghans and contractors also can access all 
areas. 

Comments on the Recommendations: 

Recommendation 1: "To improve information sharing among the Task Force 
and other federal agencies involved with stabilization and economic 
development efforts in Afghanistan, we recommend the Secretary of 
Defense in consultation with the Secretary of State and the 
Administrator of USAID determine the most appropriate mechanism for 
integrating Task Force participation. Such mechanisms could include 
formalizing the process previously used to obtain State Department 
concurrence on Task Force projects, participating in appropriate 
working groups in Afghanistan, and/or including Task Force project and 
activity information into existing databases." 

Management Comments: Based on the General Comments above, the Mission
proposes the recommendation be expanded to require TFBSO's project 
portfolio management become more institutionalized and integrated into 
the State/USAID's planning and project-reporting processes. 
"Information sharing," as currently recommended in the report, is a 
start, but does not go far enough if the USG goal is to efficiently 
plan, manage, and integrate multiple development projects from 
different agencies in overlapping sectors or ministries. Active senior 
management direction and support from TFBSO, along with Department of 
State (DOS) and USAID, are also required for effective integration of 
planning and project execution. Consolidation of TFBSO and USAID 
activities, assuming that appropriate additional funding is provided, 
would go even further to ensure that economic development activities 
are fully integrated, and that gaps or duplications do not occur. 

[End of section] 

Appendix IV GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Sharon Pickup, (202) 512-9619 or pickups@gao.gov: 

Staff Acknowledgments: 

In addition to the contact named above, Carole Coffey, Assistant 
Director; Johana Ayers; Carolynn Cavanaugh; Burns Chamberlain; Nicole 
Harms; Mae Jones; Anne McDonough-Hughes; Jamilah Moon; Marcus Oliver; 
Michael Pose; and Michael Rohrback made key contributions to this 
report. 

[End of section] 

Footnotes: 

[1] Pub. L. No. 111-383, § 1535 (2011). 

[2] GAO, Standards for Internal Control in the Federal Government, 
[hyperlink, http://www.gao.gov/products/GAO/AIMD-00-21.3.1] 
(Washington, D.C.: November 1999). 

[3] The Iraqi Freedom Fund is a special account providing funds for 
additional expenses for ongoing military operations in Iraq, and those 
operations authorized by Pub. L. No. 107-40 (Sept. 13, 2001), 
Authorization for Use of Military Force, and other operations and 
related activities in support of the Global War on Terrorism. See Pub. 
L. No. 108-11 (2003). 

[4] Section 127 of Title 10 of the United States Code allows the 
Secretary of Defense, the Inspector General of DOD, and the secretary 
of a military department within his/her own department, subject to 
certain limitations and requirements, to provide funds for any 
emergency or extraordinary expense that cannot be anticipated or 
classified. 

[5] While the Task Force received some funds in the latter part of 
fiscal year 2006, it was unable to provide information on specific 
funding amounts. 

[6] Pub. L. No. 111-383, § 1535 (2011). 

[7] Ibid. 

[8] A chief of mission is the principal officer, usually the 
ambassador, in charge of a U.S. diplomatic mission abroad, and has 
full responsibility for the direction, coordination, and supervision 
of all U.S. government executive branch employees in that country, 
except for Voice of America personnel on official assignment and those 
personnel under the control of the combatant commander. See 22 U.S.C. 
§ 3927. 

[9] The regional security officer is in charge of security for all 
Americans assigned to an embassy (or on temporary duty to post) who 
come under the authority of the chief of mission. 

[10] GAO, Afghanistan Development: Enhancements to Performance 
Management and Evaluation Efforts Could Improve USAID's Agricultural 
Programs, [hyperlink, http://www.gao.gov/products/GAO-10-368] 
(Washington, D.C.: July 14, 2010). 

[11] USAID implementing partners include U.S. businesses, 
nongovernmental organizations, private voluntary organizations, 
academic institutions, other U.S. government agencies, and 
international assistance agencies. 

[12] [hyperlink, http://www.gao.gov/products/GAO/AIMD-00-21.3.1]. 

[13] Joint doctrine defines "stability operations" as various military 
missions, tasks, and activities conducted outside the United States in 
coordination with other instruments of national power to maintain or 
reestablish a safe and secure environment and provide essential 
governmental services, emergency infrastructure reconstruction, and 
humanitarian relief. 

[14] Department of Defense Instruction 3000.05, Stability Operations 
(Sept. 16, 2009). 

[15] Department of Defense Joint Publication 3-24, Counterinsurgency 
Operations (Oct. 5, 2009). 

[16] Pub. L. No. 111-383, §1535 (2011). 

[17] The Economic and Financial Policy Working Group is a national- 
level civil-military group; is co-chaired by the Economic Counselor at 
the U.S. Embassy, the USAID Office of Economic Growth Director, and 
Department of the Treasury Attaché for Afghanistan; and is focused on 
job creation, private sector development, and fiscal sustainability in 
Afghanistan. 

[18] GAO, Military Operations: Actions Needed to Improve Oversight and 
Interagency Coordination for the Commander's Emergency Response 
Program in Afghanistan, [hyperlink, 
http://www.gao.gov/products/GAO-09-615] (Washington, D.C.: May 18, 
2009). 

[19] [hyperlink, http://www.gao.gov/products/GAO-09-615]. 

[End of section] 

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Web site: [hyperlink, http://www.gao.gov/fraudnet/fraudnet.htm]: 
E-mail: fraudnet@gao.gov: 
Automated answering system: (800) 424-5454 or (202) 512-7470: 

Congressional Relations: 

Ralph Dawn, Managing Director, dawnr@gao.gov: 
(202) 512-4400: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7125: 
Washington, D.C. 20548: 

Public Affairs: 

Chuck Young, Managing Director, youngc1@gao.gov: 
(202) 512-4800: 
U.S. Government Accountability Office: 
441 G Street NW, Room 7149: 
Washington, D.C. 20548: