Summary: GAO concludes that it may be feasible to have one central agency conduct all background investigations and adjudicative functions. However, most of the nine key federal agencies that account for 95 percent of the security clearances oppose consolidation. Moreover several impediments would have to be resolved. Potential benefits of consolidation include cost savings, fewer oversight agencies, standardized operating procedures and information systems, and more consistency in the application of standards. However, consolidation could also result in less agency control over the process, potentially reducing the extent to which an individual agency's requirements and priorities are met. GAO found that federal agencies are complying with National Security Directive 63 on single scope background investigations for top secret clearances. The purpose of the directive was to eliminate redundant investigative practices for granting persons access to top secret and sensitive information. Consistent with the directive, some agencies now require even more background information to meet their missions. For example, the U.S. Secret Service conduct polygraph tests for its agents and employees. In fiscal year 1993, executive branch agencies spent $326 million on background investigations, $20 million of which sent to private sector investigators.
