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.

[...]