PERFORMANCE REPORT

STRATEGIC AND ORGANIZATIONAL GOALS
SECURITY, PREPAREDNESS AND REPONSE STRATEGIC GOAL

BALANCE TRANSPORTATION SECURITY REQUIREMENTS WITH THE SAFETY, MOBILITY, AND ECONOMIC NEEDS OF THE NATION AND BE PREPARED TO RESPOND TO EMERGENCIES THAT AFFECT THE VIABILITY OF THE TRANSPORTATION SECTOR

Threats may emanate from nature or from acts of terrorism, but either way, the transportation system is at once a target for damage and a critical infrastructure element for response and recovery. Working with the Department of Homeland Security and the Department of Defense as appropriate, the U.S. Department of Transportation, as well as state and local transportation departments, are significant players in security, preparedness and response.

The U.S. Department of Transportation leveraged $900 million to ensure
preparedness for response to emergencies that impact the transportation system.

Key Performance Area

Strategic outcomes from the DOT Strategic Plan are indicated in blue and FY 2008 results for key DOT performance measures are marked to indicate Met Target () and Did Not Meet Target ().

Intelligence, Preparedness and Response Expert transportation sector intelligence. Preparedness for response to emergencies affecting the transportation sector. Effective response to emergencies affecting the transportation sector	Security and Readiness The DOT Operating Administrations work closely with the Departments of Homeland Security and Defense and other stakeholders to ensure the security of specific modes of transportation nationwide.
	Defense Mobilization Percentage of DOD-required shipping capacity complete with crews available within mobilization timelines. Percentage of DOD-required commercial ports available for military use within DOD established readiness timelines.

2008 Performance Highlights

• During FY 2008, seven more modern and efficient vessels were enrolled in the Maritime Security Program, which ensures that the United States will have commercial vessels along with their intermodal assets to support DOD operations, thereby improving readiness capabilities.
• DOT exceeded its target for the percentage of DOD-required shipping capacity complete with crews available within mobilization timelines through the continued implementation of its performance based service contract for the maintenance and operation of vessels.
• DOT exceeded the target for the percentage of DOD-required commercial ports available for military use within DOD established readiness timelines as a result of close coordination with the military and the Strategic Ports.

Defense Mobilization
FY 2008 Enacted Funds: $250 Million

The Department of Defense (DOD) relies on the U.S. commercial transportation industry as well as government-owned ships to deliver equipment and supplies throughout the world in order to maximize defense logistics capabilities and minimize cost.

• The DOT-owned Ready Reserve Force (RRF) is a very important component of the Department's ability to provide sealift capacity in times of emergency to DOD. These ships serve as an important asset supporting the Department's emergency preparedness and disaster response activities. The RRF is composed of 44 ships with special capabilities that can carry or offload heavy and oversized military cargoes which regular U.S.-flag commercial cargo ships cannot carry. RRF ships meet approximately half of the U.S. Transportation Command's surge (or initial) sealift requirement during a mobilization.
• DOT, through the Maritime Administration, is also responsible for establishing DOD's prioritized use of facilities at 15 U.S. commercial strategic ports during DOD mobilizations or other requirements of the nation's defense to ensure the safe, secure, and smooth flow of military cargo through the commercial U.S. transportation system while minimizing commercial cargo disruptions.
• DOT's Maritime Security Program (MSP) ensures that the United States will have U.S.-flag commercial vessels along with their intermodal assets to support DOD operations.
• The Maritime Administration also supports the education and training of new merchant marine officers by operating the U.S. Merchant Marine Academy (USMMA) and by providing partial support to the six State Maritime Schools (SMS) providing training to develop an unlimited number of licensed mariners to support DOD during national emergencies.

The availability of shipping capacity is determined by a number of different factors: availability of commercial vessels, availability of government-owned sealift vessels, availability of qualified mariners to crew these vessels, and the availability of war risk insurance coverage for vessels entering a war zone. All of these factors must be managed properly in order to support DOD's mobilization requirements.

Performance Measure Percentage of DoD-required shipping capacity complete with crews available within mobilization timelines
	2005	2006	2007	2008
Target	94	94	94	94
Actual	95	93	97	97
Associated FY 2008 Funding - $248 million

FY 2008 Results. DOT met the FY 2008 performance target. The Maritime Administration achieved these results through the successful pursuit of a number of activities. Most significantly, to assure sufficient availability of U.S. ships, the Maritime Administration maintained full enrollment in the Maritime Security Program, stable enrollment in the Voluntary Intermodal Sealift Agreement (VISA) program and Ready Reserve Force readiness levels. During FY 2008, seven more modern and efficient vessels were enrolled in the MSP to improve both MSP and VISA readiness capabilities. At the end of FY 2008, there were 125 vessels enrolled in the VISA program.

Performance-Based Contracting to Improve Performance

The Ready Reserve Force achieved above target readiness through the continued implementation of its performance based service contract. This contract maximizes the utilization of the professional services of commercial shipping companies to maintain and operate vessels. The contract is results-oriented and places great emphasis on ensuring vessels are safely maintained and operated in accordance with regulatory requirements and RRF requirements.

Improved coordination with Military Sealift Command enabled better scheduling of resources and mitigated competition between Government organizations for shipyard services to accomplish major overhauls. This enabled the RRF to maximize work performed during out of readiness periods and mitigate unscheduled repair periods. When vessels are required for operations, the Maritime Administration diligently works with our DOD partners to identify the vessel that best fits and is capable to meet mission requirements. The result has been the ability for the RRF to activate vessels on time and sustain exceptional operational reliability.

The Maritime Administration successfully operated the War Risk Insurance program for Operations Desert Shield/Desert Storm, Operation Restore Hope in Somalia, Operation Restore Democracy in Haiti and most recently for Operations Enduring Freedom and Iraqi Freedom and the continuing War on Terror.

In the interest of ensuring that sufficient numbers of highly qualified new mariners enter the U.S. workforce, Maritime Administration supported training activities resulted in the graduation of 211 licensed ship officers from the United States Merchant Marine Academy and 504 licensed officers from the six State Maritime Schools in June 2008.

Taken together, the above activities as well as those undertaken to assure the availability of strategic ports (discussed below), ensure the smooth and secure movement of deploying DOD personnel and material from origin to destination and support the Department's ability to rapidly support response and recovery efforts for domestic and international emergencies.

FY 2009 Performance Forecast. The number of RRF vessels is expected to increase from 44 to 51 ships in FY 2009. However, the Maritime Administration expects this to have minimal impact on the performance forecast, and the FY 2009 target will be met.

Performance Measure Percentage of DoD-required commercial ports available for military use within DoD estabilished readiness timelines
	2005	2006	2007	2008
Target	93	93	93	93
Actual	87	100	100	100
Associated FY 2008 Funding - $1.3 million

FY 2008 Results. DOT exceeded the 2008 performance target as a result of close coordination with the military and the Strategic Ports. The Maritime Administration participated in joint military mobilization and security exercises as well as strengthened the cooperative partnerships that ensure effective emergency planning and coordination with a variety of organizations. The Maritime Administration is working closely with the Military Surface Deployment and Distribution Command on a study on the Strategic Ports to develop and implement a plan that will optimize the use of commercial and military Strategic Ports.

The Agency continues to develop the Agile Port Concept as a possible partial solution to increase port capacity. A fully built-out agile port system consists of a marine terminal, inland intermodal facility, dedicated freight rail corridor and an information management system that links all three components to rail, ocean carrier and port stakeholders. The system increases throughput capacity of the waterfront marine terminals by moving the cargo storage and sorting components to an inland location where land development costs are less expensive and traffic congestion impacts are reduced. The information system that links the facilities and users enables direct trans-shipments where containers are removed from vessels and directly sorted and transferred to rail for immediate movement to final locations without the need for inland sorting. The military has also used components of the agile port system to deploy. Changing military deployment processes to conform to agile port processes reduces the military cargo footprint in the Strategic Ports and reduces the military costs to deploy. A smaller footprint also minimizes commercial cargo disruption in the Strategic Ports. This is an important consideration as commercial ports become increasingly congested.

FY 2009 Performance Forecast. The Maritime Administration expects to meet the FY 2009 target. DOT will continue to administer an Intelligent Transportation System Deployment Integration program that demonstrated container and chassis satellite tracking technology using the Cargo Watch System. This program is to assist in commercializing their system, which addresses cargo security, fleet management and congestion mitigation. This technology has evolved from cellular to satellite technology and into the cold food supply chain market. The current technology focus is on developing two-way communications and on board computer interface for over the road reefer trailers.

Security and Readiness
FY 2008 Enacted Funds: $642 Million

Security in the Air In FY 2008, FAA continued to enhance our ability to respond to crises rapidly and effectively, including security-related threats and natural disasters, by building and improving emergency plans and preparedness tools that will enable us to sustain essential services and provide for employee well-being during crisis events. Operational coordination, communication, and command and control capabilities needed to prepare for, respond to, and recover from crises were strengthened and the use and functionality of operational and corporate crises response structures, such as specialized hurricane coordination cells and continuity of operations programs, were improved.

Security on our Highways FHWA continued to balance the need to protect critical transportation infrastructure with the safety, mobility and economic needs of the nation. During FY 2008, FHWA enabled state departments of transportation to implement critical security enhancement activities such as response to disasters, freight and border security operations, and critical infrastructure vulnerability assessments and counter measure deployment. A major ongoing program is maintaining national defense mobility using the Strategic Highway Network (STRAHNET). The STRAHNET is a 62,791-mile system of roads deemed necessary for emergency mobilization and peacetime movement of heavy armor, fuel, ammunition, repair parts, food, and other commodities to support U.S. military operations.

The Strategic Highway Network (STRAHNET) system of public highways provides access, continuity, and emergency transportation of personnel and equipment in times of peace and war. The 61,000-mile system, designated by the Federal Highway Administration in partnership with the Department of Defense, comprises about 45,400 miles of Interstate and defense highways and 15,600 miles of other public highways. STRAHNET is complemented by about 1,700 miles of connectors-additional highway routes linking more than 200 military installations and ports to the network.

FMCSA implemented a security program for motor carriers that transport hazardous materials that checks driver identification, conducts on-site security assessments, encourages carrier security sensitivity, and communicates information about hazardous materials security threats, alerts and vulnerabilities. As the agency with primary responsibility for regulating the trucking industry, FMCSA has incorporated security sensitive visits and security contact reviews into our normal operations.

Security in Public Transit Transit is a critical, high risk and high consequence national asset. Every day, transit provides mobility to 14 million passengers on transit systems that range from very small bus-only systems in rural communities to the largest urban economic and financial centers in the nation. FTA has provided employee training, emergency preparedness, and public awareness through oversight, technical assistance, and research programs. We also provided guidance and information to state and local agencies on transit preparedness in the case of an emergency. FTA also formalized a relationship with the DHS Transportation Security Administration through the execution of the DOT/DHS Memorandum of Understanding's Public Transit Annex enabling FTA to leverage its expertise and resources to maximize effective transit security coordination.

Intelligence, Preparedness and Response
FY 2008 Enacted Funds: $8.3 Million

In FY 2008, DOT continued to make strides in meeting the requirements of the Intelligence Reform and Prevention of Terrorism Act (IRPTA), Public Law 108-458 (IRPTA), which established a new paradigm for sharing information. DOT created an Information Sharing Council which established an Information Sharing Environment (ISE) for the sharing of terrorism information among all appropriate Federal, State, local, tribal entities, and the private sector through the use of policy guidelines and technologies.

Along with our work in intelligence, DOT continued to ensure readiness to undertake its role as defined in the National Response Framework, issued in 2008. In this capacity, DOT is the lead agency for coordinating transportation response and support following a disaster and has taken a more active role working with State and local transportation officials in planning for disasters. This includes development of a system of emergency actions that define alternatives, processes, and issues to be considered during various stages of national security emergencies and identification of actions that could be taken in the early stages of a national security emergency or a pending emergency to mitigate the impact or reduce significantly the lead times associated with full emergency action implementation.

In collaboration with the Department of Homeland Security (DHS), DOT has been actively involved in actions required by Public Law 110-53: Implementation of the Recommendations of the 9/11 Commission (9/11 Act). Seventy-two sections of the 9/11 Act either directly or indirectly involved DOT. Actions required in thirty-six of the seventy-two sections have been completed. The remaining sections of the Act are being addressed by DHS and DOT as appropriate. Several do not have specific due dates or deliverable requirements, but we anticipate that a majority of the remaining requirements will be completed in FY 2009. DOT's work on this Act has helped ensure that DHS and DOT modal agencies are coordinated in their efforts to protect the US public and private transportation infrastructure. Further, the Act has expanded technical and funding assistance to state, local, and tribal authorities to ensure the success of their security efforts.

FY 2008 Results. Development of the new security performance measures did not proceed as planned. Therefore, we are unable to present baselines for the new measures. However, a model for looking across DOT's operating administrations was explored and a set of measures proposed.

FY 2009 Performance Forecast. In FY 2009, DOT will examine three sets of measures: those newly proposed, those that were previously being tracked at the DOT level, and those security-related measures that are currently only being tracked in a specific agency. A framework of measures will be assembled and preliminary data collected to determine baselines for measurement at the same time DOT revises its Strategic Plan.

Promoting Transportation Sector Security Issues in the Homeland Security Context

The Homeland Security Council established a National Exercise Program (NEP) addressing the full spectrum of emergencies and crises likely to require Executive Branch coordination. The NEP Implementation Plan defines processes and responsibilities for achieving and executing that program. Exercises in the plan are broken into priorities. Tier 2 exercises are the second highest priority for participation. Tier 2 exercises are focused on integration of Federal activities in a geographic region (overseas or domestic). Tier 3 exercises are other Federal exercises for which no support is mandated.

During Fiscal Year 2008, the Department of Transportation participated in approximately 30 exercises, including Tier 1, Tier 2 and regional exercises engaging senior, operational and regional staff. One exercise revolved around a series of radiological incidents, for example. Another example was the exercise that combined a terrorism scenario with a hurricane scenario.

During these exercises, staff at the Department of Transportation exercise their responsibilities under the national response framework; examine emerging policy issues through the conduct of exercises; incorporate current threat and vulnerability assessments into the exercise objectives and planning effort; develop a corrective action process to ensure that lessons from exercises are either sustained or improved as appropriate; and achieve national effort by involving appropriate Federal, State, local, private sector, and appropriate partner nation entities.

The objectives of the program are to: 1) train U.S, Government senior officials, 2) examine and evaluate emerging national level policy issues, 3) practice efforts to prevent, prepare for, respond to and recover from terrorist attacks, major disasters, and other emergencies in an integrated fashion from the Federal level down to state, local, and private sector level, and 4) identify and correct national level issues, by not repeating the same lessons learned. These exercises contribute to the readiness of executives, managers and staff as well as point to weaknesses in the system or in protocols that are then improved.