c. Hearings.—The Legislation and National Security Subcommittee plans to convene an oversight hearing on this subject early in 1994.

13. The B-1B Bomber.

a. Summary. Since 1991, the Legislation and National Security Subcommittee has been monitoring the B-1B bomber program to evaluate the efficiency and effectiveness of this controversial aircraft, and the wisdom of proposals to invest another $2 billion to $3 billion to correct design and manufacturing defects.

The subcommittee convened its first B-1B oversight hearing on March 6, 1991, and issued a formal report to the House on December 2, 1992, "B-1B Strategic Bomber: System Review and Recommendations" (H. Rept. No. 102-1069). The subcommittee remains concerned, however, about the adequacy of the Air Force's plans to address the B-1B deficiencies revealed in its earlier investigation.

The subcommittee's first major concern is the absence of a defensive avionics program for the B-1B. This program was intended to give the aircraft the ability to penetrate the Soviet air defenses, but it never met this objective and has now been canceled by the Air Force. It is difficult to conceive of a mission for a strategic bomber that lacks this capability. The Air Force spent over $3.2 billion on the defensive avionics program and still has not completed this crucial component of the B-1B.

The subcommittee's second major concern is the B-1B's defective anti-icing system. Without effective anti-icing, the aircraft cannot even start its engines when operating over water, slush, or melting snow while the temperature is between 20 and 47 degrees Fahrenheit. Any corrective measures will cost nearly $200 million and require 3 years of development prior to production, so that installation could not begin until approximately the year 2000.

The subcommittee's third major concern is the historical reluctance by the Air Force to fully correct the B-1B, apparently out of fear that it would then compete for funding with the B-2 Stealth Bomber. It now appears that now after Congress has limited the B-2 program to 20 aircraft, the Air Force is prepared to seek more funding into the B-1. These contrary positions are deeply troubling and are inconsistent with a rational and responsible acquisition

process.

The subcommittee's final and most significant concern is the B1B dismal state of readiness. Although the Air Force currently has 96 B-1Bs, only approximately 40 B-1Bs are flyable at any point in time. Unless better performance is secured, the value of putting billions more dollars into the B-1B is highly questionable.

b. Benefits. The subcommittee's investigation revealed several problems in 1991 that involved nearly $1 billion to correct. Now, in 1993, the Air Force is seeking an additional $2 billion to $3 billion to convert the B-1B to conventional weapons delivery.

The subcommittee's B-1B oversight is particularly important in this context, because despite the testimony of GAO and other independent experts, senior Air Force continue to deny that there are significant problems with the aircraft. In an acquisition program of this magnitude, the subcommittee's work is essential to provide the

Congress and the American taxpayer with accurate facts so that an informed judgment can be made about the future of the B-1B program.

c. Hearings.-The Legislation and National Security Subcommittee plans to convene an oversight hearing on this subject early in 1994.

14. The U.S. Role in the World Food Program.

a. Summary. Since 1991, the Legislation and National Security Subcommittee has been monitoring the World Food Program [WFP]. Each year the United States contributes over $350 million in food commodities to WFP for use in programs that provide aid for developing countries, refugees, displaced persons, and emergency relief. U.S. contributions come from three agencies-the Agency for International Development, the Department of Agriculture, and the Department of State.

The WFP is the largest source of grant assistance for developing countries in the United Nations system. It handled 60 percent of all international relief food provided in 1992. Forty-two million people benefited from WFP's food aid in 1992. WFP's total expenditures in 1992 were $1.7 billion. WFP's 3,718 staff members are assigned to 85 countries, and 90 countries worldwide benefit from their services.

The subcommittee is concerned with the adequacy of U.S. processes and procedures for assuring that resources channeled through the WFP are employed for their intended purposes and that proper accountability is maintained.

The subcommittee has learned that millions of dollars worth of food commodities contributed by the United States may have been diverted or misused. Questionable accounting practices lead the subcommittee to believe that the present system is indeed vulnerable to waste, fraud, and abuse.

The subcommittee has requested the GAO to undertake a study of the processes for identifying U.S. contributions levels to the WFP, the procedures in place for fulfilling U.S. commitments, the systems established by U.S. organizations to assure accountability over U.S. contributions, and whether opportunities exist to more efficiently administer the program. The GAO has yet to complete its investigation.

b. Benefits. The subcommittee is concerned that the World Food Program is managed efficiently and effectively. By carefully reviewing the receipt, storage, and distribution of U.S. contributed stocks with the assistance of the General Accounting Office, we can determine whether there is waste in the major program used to accomplish critical humanitarian goals.

c. Hearings.-The Legislation and National Security Subcommittee plans to convene an oversight hearing on this subject early in 1994.

15. The U.S. Presence Overseas: Is Downsizing the Answer?

a. Summary. With the dramatic changes in the former Soviet Union and Eastern Europe, and the fiscal constraints facing the U.S. Government, there have been proposals to significantly reduce the American presence overseas. In response to these proposals,

the Legislation and National Security Subcommittee has initiated an examination of the costs and rationale for maintaining 275 U.S. embassies, consulates, and other diplomatic posts around the world, with over 80,000 United States and foreign national personnel.

The subcommittee has requested that GAO analyze the costs and benefits of our overseas diplomatic posts, and assess potential savings that could be realized if reform proposals are implemented.

Specifically, the subcommittee is reviewing whether the proposals made by the prior administration to close 20 posts are justified. The underlying decision criteria and cost saving estimates will be examined to determine whether they are sound. Further, the costs and benefits of closing or reducing staff at additional posts will be explored.

The subcommittee is also reviewing the total costs and benefits of maintaining existing post size at selected locations, and the activities of post staff to determine whether their functions directly support U.S. interests in the country. Foreign national and contract staff levels will also be reviewed, as will the overseas staffing trends of the State Department and other U.S. agencies abroad over the last 10 years.

A comparison of the U.S. overseas diplomatic presence to those of other countries will be conducted, and the subcommittee will conduct a critical review of National Security Decision Directive 38 to determine whether modifications are needed to ensure that staff levels are maintained at the minimum size needed to conduct essential government business.

Finally, the subcommittee will explore the greater use of the Special Embassy Program, regional embassies, or other innovative mechanisms from which possible cost savings can be realized without sacrificing essential embassy services.

b. Benefits. The subcommittee's work will assist the Congress in determining if savings can be achieved, without sacrificing programs and activities that are essential to U.S. interests, through staff reductions abroad or consolidating overseas posts. Specific subcommittee recommendations regarding the U.S. presence overseas will greatly assist the Congress in its consideration of measures to create a more effective and efficient State Department, and to secure savings in the foreign policy arena.

c. Hearings. The Legislation and National Security Subcommittee plans to convene an oversight hearing on this subject during 1994.

16. The Activities of the Agency for International Development's Agency Center for University Cooperation in Development.

a. Summary.-Over the past several decades the Agency for International Development [AID] has been plagued by recurring management problems. Contributing to these problems are the frequently changing policy objectives in the form of new projects, programs, and approaches. The Agency Center for University Cooperation in Development [UC] was created under the former Administrator Ronald W. Roskens, to bring together all AID activities with U.S. universities. The higher education and development [HEAD] project was initiated at the UC for the purpose of establishing “a

broader and deeper involvement of the U.S. higher education system in the development process as a partner of AID." After receiving allegations that the HEAD project marked a radical departure from policies that had proven their worth at AID, the Legislation and National Security Subcommittee initiated an investigation of this project.

Specifically, the subcommittee was concerned that the planned expenditure of over $100 million on HEAD would benefit domestic universities and colleges in the United States far more than their counterparts in less developed countries [LDCs]. Such a change in priorities is not consistent with AID's primary mission of stimulating economic, political, and social development in LDCs.

Additionally, the subcommittee was concerned with the decision to devote such significant AID resources to a higher education project when study after study has demonstrated empirically that investments at the primary education level yield far greater rates of return. Congress has long identified basic education activities as a critical part of the development process, especially when most LDCs cannot sustain universities, because they lack a foundation for higher education and research. The subcommittee was also concerned by the lack of support for the HEAD project at AID bureaus and missions, where officials consider the program a burdensome imposition on already scarce resources. HEAD is just one of 2,000 AID programs and projects in over 70 countries worldwide, and despite an absence of any demand in the field for this project, it was scheduled to receive a healthy budget and upper management support.

With the assistance of the GAO, the subcommittee's investigation revealed numerous problems in the HEAD project, including irregularities in the selection of a coordinating entity for the project (the American Council on Education) and possible conflicts of interest by former AID officials who initiated the HEAD project, and led to a critical review of that project by senior AID management.

b. Benefits. With the new administration in the process of streamlining and restructuring AID, the subcommittee's concerns about the activities of the UC have received serious consideration. The HEAD project has been halted while the new Administrator conducts a critical review of it. The subcommittee has saved the taxpayer $100 million, and will continue to monitor the education goals of AID as they benefit LDCs.

c. Hearings. No hearings have been scheduled on this matter. 17. The Peace Corps' Office of Inspector General.

a. Summary. Since 1991, the Legislation and National Security Subcommittee has been monitoring the operations of the Office of Inspector General [OIG] at the Peace Corps to ensure its independence and integrity.

The Peace Corps is the only agency with a statutory inspector general [IG] whose initial appointment is for a term of 30 months, renewable for a second term at the discretion of the head of the agency. Under the Inspectors General Act of 1978, as amended, employees of the Peace Corps' OIG are subject to the so-called 5year rule, which provides that all appointments within the agency are for 30 months. Although the IG can recommend extensions be

yond that term for employees in the Office of the Inspector General, the Peace Corps Director exercises final authority to decide whether such extensions are granted.

The subcommittee received serious allegations that the Peace Corps was suffering from severe mismanagement over the past several years due to actions by senior management, which undermined the independence and integrity of the OIG. The subcommittee's investigation confirmed that OIG was in extreme disarray, and suffered from ineffective leadership and low morale.

The subcommittee was also concerned by the allegations that the OIG has not been an autonomous, independent entity within the Peace Corps. In particular, the IG's independence appeared to be undermined by the involvement of senior Peace Corps management in many day-to-day decisions affecting this office, including budgetary requests, staffing, whistleblower retaliation, revisions of OIG publications, and the conduct of OIG investigations.

In response to the subcommittee's oversight, in 1992 the Peace Corps retained an independent consultant to recruit a number of candidates for the position of IG for consideration by the Director. While this process was not totally without problems, it was an improvement over initial attempts to secure a new IG.

Under the new administration, an acting IG was appointed in early 1993, who was authorized to restructure the office, resolve pending discrimination cases, and assist in the selection process of a permanent IG.

b. Benefits. The subcommittee's oversight of the Office of Inspector General at the Peace Corps has led to a much needed restructuring of that office, and helped restore its independence. The responsibility of any inspector general is to serve as an autonomous, independent watchdog within an agency, who can vigorously identify and correct instances of fraud, waste, and abuse. In large part due to the subcommittee's work, the Peace Corps' Office of Inspector General has undergone a much needed rehabilitation over the past 10 months, which will provide that agency with the independent and responsible internal oversight which the Congress intended when it passed the Inspectors General Act of 1978.

c. Hearings. No hearings have been scheduled on this matter. 18. The Peace Corps' New Country Entry.

a. Summary.-Over the last 4 years, the Peace Corps has introduced programs in several Central and Eastern Europe and former Soviet Union countries. These programs were initiated quickly, both to demonstrate a U.S. commitment to democratic reforms and to assist the countries in transitioning to a private enterprise system.

After receiving reports during 1993 of problems in program development, coordination, volunteer assignments, and health and welfare concerns, the Legislation and National Security Subcommittee initiated an examination of these new country entries. The subcommittee is concerned that these problems may be impeding the Peace Corps' progress in these countries, and contributing to unusually high early attrition rates among the volunteers serving there.