112th Congress Report SENATE 2d Session 112-173 _______________________________________________________________________ NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2013 R E P O R T [to accompany s. 3254] COMMITTEE ON ARMED SERVICES UNITED STATES SENATE June 4, 2012.--Ordered to be printed [...] Defense Clandestine Service (sec. 932) The committee recommends a provision that would prohibit the obligation of appropriated Military Intelligence Program (MIP) funds in fiscal year 2013 to exceed the number of personnel conducting or supporting human intelligence within the Department of Defense (DOD) as of April 20, 2012. This provision would also require the Office of Cost Assessment and Program Evaluation (CAPE) to provide an estimate of the total cost of the Defense Clandestine Service (DCS) to the congressional defense and intelligence committees. This cost estimate should look at the total costs of the DCS, including whether that cost is incurred in the MIP, in the National Intelligence Program, or in other non-intelligence funding for the Department of Defense (e.g. Major Force Program 11 funding for U.S. Special Operations Command (USSOCOM)). The estimate should include costs in the out years of the future-years defense program and beyond, especially those associated with closing existing personnel basing; creating new basing arrangements; and supporting overseas deployments. The provision also would require the Under Secretary of Defense for Intelligence (USDI) to provide a report to the congressional defense and intelligence committees by February 1, 2013, that provides or explains: where DOD case officers will be deployed or based and a schedule for those deployments; certification that the prospective locations can and will accommodate these deployments; the objectives established for each military service, USSOCOM, and the Defense Intelligence Agency (DIA) to improve career management for case officers, and the plans to achieve the objectives of the DCS; and any Memoranda of Agreement or Understanding necessary to implement planned reforms with other departments and agencies and between DOD components. The committee appreciates the fact that the USDI and the Director of the DIA, in initiating the DCS, intend to make reforms to the Defense Human Intelligence (HUMINT) Service to correct longstanding problems. These problems include inefficient utilization of personnel trained at significant expense to conduct clandestine HUMINT; poor or non-existent career management for trained HUMINT personnel; cover challenges; and unproductive deployment locations. Multiple studies since the end of the Cold War document these deficiencies, and they led the Commission on the Roles and Capabilities of the United States Intelligence Community, chaired by two former Secretaries of Defense, to recommend transferring to the Central Intelligence Agency (CIA) all responsibilities for the clandestine recruitment of human sources, utilizing military personnel on detail from the DOD as necessary. The committee notes that President Bush authorized 50 percent growth in the CIA's case officer workforce, which followed significant growth under President Clinton. Since 9/ 11, DOD's case officer ranks have grown substantially as well. The committee is concerned that, despite this expansion and the winding down of two overseas conflicts that required large HUMINT resources, DOD believes that its needs are not being met. The committee concludes that DOD needs to demonstrate that it can improve the management of clandestine HUMINT before undertaking any further expansion. Furthermore, if DOD is able to utilize existing resources much more effectively, the case could be made that investment in this area could decline, rather than remain steady or grow, to assist the Department in managing its fiscal and personnel challenges. [...]