TSA Air Cargo Security Program

March 18, 2005

2 2/22/2005

Vision ~ Air Cargo Security

DHS AIR CARGO VISION: A layered air cargo security solution that denies terrorists an opportunity to exploit the system by using an optimal combination of information and technology-based solutions…

MISSION: To provide the most effective security program possible, while maintaining effective stewardship of resources and without unduly impeding the flow of commerce

GOAL: To secure the air cargo supply chain including cargo, conveyances and people through the implementation of a layered, threat-based, risk-managed security system–RISK-MANAGED = 100% (physical / electronic) inspection of

elevated-risk* cargo

* to be defined by Freight Assessment Program

3 2/22/2005

Current Air Cargo Landscape

Complex set of stakeholders operating under a myriad of different security programs….

Stakeholders– 285 air carrier (domestic/foreign, passenger/all-cargo) operators – 3,800 registered IACs (indirect air carriers, also known as freight forwarders) – 1.5M known shippers (400K currently in the database)

US Air Carriers

– Combined Passenger and Cargo Operations• Aircraft Operator Standard Security Program (AOSSP)

– All-Cargo Operations • Domestic Security Integration Program (DSIP)• Twelve Five Standard Security Program (TFSSP)

Non-US Air Carriers (Operating Flights To, From, or Over U.S.)

– Combined Passenger and Cargo Operations• Model Security Program (MSP)

– All-Cargo Operations• Air Carrier International Security Procedure (ACISP)

4 2/22/2005

“The Way Ahead”

Aviation Security Advisory Committee (ASAC) provided extensive recommendations on air cargo security (Oct 1, 2003)

The Air Cargo Strategic Plan, approved and signed by Secretary Ridge January 2, 2004, incorporates ASAC recommendations and lays out 5-year roadmap for air cargo security

Key components: – Known Shipper Program – Indirect Air Carrier Program– Freight Assessment Program– Increased Regulatory Oversight

Implementation will be via rulemaking

5 2/22/2005

NPRM Addressed….

Civil Aviation Security: General Rules (49 CFR 1540)

Airport Security (49 CFR 1542)

Foreign Air Carriers (49 CFR 1546)

Aircraft Operators (49 CFR 1544)

Indirect Air Carriers (49 CFR 1548)

6 2/22/2005

NPRM Status

Public comment period closed on January 10th

Work of summarizing and analyzing the comments is complete

Received a total of 676 comments from 134 unique commenters–Much misunderstanding surrounding TSA intent regarding SIDA

expansion and security threat assessments–Many commenters are looking for the “how” ~ which will be

addressed in revised security programs

Internal TSA team is working at a very fast pace to consider all the comments and to draft necessary changes to the regulations

TSA executive level coordination will be followed by DHS and OMB coordination and clearance

7 2/22/2005

Known Shipper Database

To strengthen the Known Shipper Program, TSA deployed a centralized Known Shipper Database [Feb 04]–Use is currently voluntary

Currently, 89 air carriers and over 500 Indirect Air Carriers participate and have contributed approximately 400,000 known shippers to the database

Total population of US known shippers estimated at 1.5 million

NPRM proposes to mandate participation in centralized database

8 2/22/2005

Freight Assessment System ~ Objectives/Timing

Freight Assessment System (FAS) is the cornerstone of the Air Cargo Strategic Plan – Goal: Reduce risk of transporting cargo on passenger and all-cargo aircraft– Pre-screening will identify “elevated risk” cargo that must be inspected by carriers– Incorporates elements of Known Shipper and Indirect Air Carrier programs combined

with shipment specific data to determine level of risk for each shipment– Reduces current reliance on random inspections

Will implement a flexible, scalable risk assessment process that will use cutting-edge technology to assist in identifying high-risk cargo for inspection

Supports the goals of the TSA Air Cargo Security Strategic Plan:

– Enhance shipper and supply chain security

– Identify elevated risk cargo through prescreeningIdentify elevated risk cargo through prescreening

– Identify technology for performing targeted air cargo inspections

– Secure all cargo aircraft through appropriate facility security measures

Planned Timeline: “Pilot” will be conducted by end of CY05, with deployment occurring during CY06 and CY07

9 2/22/2005

FAS Guiding Principles ~ and Results

Design, develop and implement a FAS that is inclusive of all relevant efforts within DHS

Reuse and incorporate solutions already identified by CBP or elsewhere within DHS to avoid duplication of effort and inefficient use of resources (i.e., “No stovepipe systems”)

Avoid requiring industry to provide same data to multiple USG agencies

------------------------

TSA is partnering with CBP to leverage capabilities being developed as part of CBP Automated Commercial Environment (ACE) modernization program

 FAS is fully aligned with the ACE schedule

As of Feb 15th, TSA developers working side-by-side with CBP developers to jointly develop software to be hosted on CBP systems  

10 2/22/2005

IAC Risk

External Factor Risk

Carrier & Flight Risk

FAS Risk Model Data Elements

Shipment Risk

Current Threat Conditions

Watch List

Country of Origin

Region of Origin

Country of Destination

System Transaction History

Region of Destination

Airport of Departure

Airport of Destination

Flight Date

Flight Time

+ + +Dimensions (LxWxH)

Weight

Origination

Destination

Insurance

Receiver Name

Receiver Address

Shipper Name

Shipper Address

Value

Content Verification(through inspection)

Multi-mode Travel Route

Number of Handlers

Classification Codes

Date

Hazmat Data

Trucking Company and Driver Data

Piece Count

Contact Name

Company Name

Address

Employee Names

3rd Party History

Typical Cargo Classification

KS and D&B Scores

Inspection Results/Vulnerabilities

System Transaction History

Shipper Profile

Data used in Pilot Risk Model

Contact Name

Company Name

Address

Employee Names

3rd Party History

Typical Cargo Classification

IAC and D&B Scores

Inspection Results/ Vulnerabilities

System Transaction History

IAC Profile

Inspection Results/Vulnerabilities

Flight Route

Cargo – PassengerRelationship

Carrier Name

Carrier Address

System Transaction History

Carrier Profile

D&B Score

Aircraft Type

+

f (current) = Random Inspection + IAC + Shipper

f (pilot)= Known Shipper

Risk

(Not currently based upon risk assessment) (Approved: Y/N) (Known: Y/N)

11 2/22/2005

FAS ArchitectureData Capture

WebPresentation

SystemsIntegration

TSA Air Cargo Management Systems

IAC MSKS PARIS

S&T

Post Processing(calculates score,

determinesindication)

Rules/CriteriaProcessing

Pre-Processing

Rules/CriteriaManagementRef. Data

SimulationHistory

Rules/Criteria

Consolidation of Shipment Lifecycle

System ofRecord

Inspection Results

WebPresentation

SystemsIntegration

InspectionResults

Risk Presentation

WebPresentation

SystemsIntegration

RiskIndicationStorage

Data Management

Data ValidationData

Aggregation/Standardization

ShipmentData Store

S&T

Mission Air Cargo Systems

TSA Air ShipmentManagement

Transaction Management

TransactionManager

TSA Development – TSA Hosted

TSA Led Development – CBP Hosted

CBP Development – CBP Hosted

Joint Development – CBP Hosted

12 2/22/2005

Freight Assessment System Pilot Timeline

Pilot Policy Author.

Simulation Prototyping

TEC

HN

OLO

GY

DEV

ELO

PMEN

TCY’05 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CY’06Q1 Q2

RIS

K

MO

DEL

Create Rules & Configure Within S&T

PRO

GR

AM

MA

NA

GEM

ENT

Integrated Project Teams Activity (TSA, Stakeholders, Contractors)

Develop Plans (Training, Communication, Support, Contingency, Risk Management, Project Charter)

Data Collected

Process Simulation

Pre. Simul.

Recommend Changes for Release 1 Deployment

Pilot

Participants Finalized

Assess Performance Data (Technology, Process, Financial)

Operational Readiness Review

Req. Ref.

Design

Development

System Testing

Development Complete

Production Readiness Review

Integrated Project Team Formation (Clearances, Contracts, Co-location)

Perform/Int Test.

Testing Readiness Review

S&T S1

Integrated Pilot Team Go-Live Decision

Conduct Training

Pilot Deployment

Pilot Participant Focus Groups

Rules/Data Monitoring

TSA Air Shipment Management

U.A. Test.

Stakeholder Pilot Participants Technology and Process Assessment and Preparation

Proc. & Stand-up H/W & S/W

Pilot Policy Author.

Simulation Prototyping

TEC

HN

OLO

GY

DEV

ELO

PMEN

TCY’05 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CY’06Q1 Q2

RIS

K

MO

DEL

Create Rules & Configure Within S&T

PRO

GR

AM

MA

NA

GEM

ENT

Integrated Project Teams Activity (TSA, Stakeholders, Contractors)

Develop Plans (Training, Communication, Support, Contingency, Risk Management, Project Charter)

Data Collected

Process Simulation

Pre. Simul.

Recommend Changes for Release 1 Deployment

Pilot

Participants Finalized

Assess Performance Data (Technology, Process, Financial)

Operational Readiness Review

Req. Ref.

Design

Development

System Testing

Development Complete

Production Readiness Review

Integrated Project Team Formation (Clearances, Contracts, Co-location)

Perform/Int Test.

Testing Readiness Review

S&T S1

Integrated Pilot Team Go-Live Decision

Conduct Training

Pilot Deployment

Pilot Participant Focus Groups

Rules/Data Monitoring

TSA Air Shipment Management

U.A. Test.

Stakeholder Pilot Participants Technology and Process Assessment and Preparation

Proc. & Stand-up H/W & S/W

13 2/22/2005

Innovative Regulatory Programs

Focus cargo inspections, Phase II (began Nov 2004)–15 airports selected monthly for focus inspections–Broad system look at air carrier and IAC compliance

Cargo strikes (began Sep 2004)–Concentrated week-long inspections of IACs at a specific airport–Typically includes about 15 TDY cargo inspectors (C-ASIs) from

HQ and field sites–Very effective ~ measures regulated party compliance and

provides superb training for C-ASIs

Special emphasis assessments (SEAs), Phase I–New program on our 2005 roadmap–SEAs target another area of potential vulnerability, acceptance of

cargo from unknown shippers for transport on passenger aircraft–Involves realistic testing

14 2/22/2005

Initial Cargo Strikes Have Targeted Highest Volume Areas

Cargo strikes target the higher-volume commercial carrier airports

Cargo strikes (conducted or planned for near-term execution) involve airports that handle almost half of total cargo volume, and 60% of the passenger air carrier cargo volume

Top 15 Commercial Cargo Airports

0%

5%

10%

15%

Airport

% o

f T

ota

l Vo

lum

es

Cargo Strike ConductedCargo Strike Planned

* - FedEx Hub** - UPS Hub

Cargo Strikes Coverage of Total Cargo Volumes

4%

6%

7%

8%

2%2%

9%

3%

1%1%

3%

4%

51%

LAXMIAJFKORDATLDFWPHXMCOSFOEWRSEADC (all 3 area airports)Unplanned Airports

Conducted 38%

Planned 11%

15 2/22/2005

Metrics ~ Overarching Conclusions

Overall inspections:

– Show that compliance is improving

– IACs represent the greatest compliance challenge, and also

– …. the greatest compliance opportunity

Cargo Strikes:

– Targeted towards passenger carrier airports with the highest cargo volume

– Utilize human resources efficiently and flexibly to target greatest vulnerabilities (IACs and violations commonly found at IACs)

– Have an immediate impact on compliance

Education and Outreach Efforts:

– Conducted with regulated parties to improve understanding of security rqm’ts

– Helps to improve compliance across-the-board

16 2/22/2005

TSA Has Developed Infrastructure To Record Inspections and Violations

TSA has electronically recorded results from more than 40,000 cargo inspections since January 2003

The overall violation rate for all inspected entities for the last two years was 11%

TSA has strategically used technology to track and target inspections. As evident in the chart, there was a sharp increase in the number of inspections recorded in PARIS beginning in January ’04. This tool dramatically enhances the organization’s ability to record, analyze, and share vital information with multiple stakeholders simultaneously.

All Cargo Inspections: Monthly Inspection Volumes & Violation Rates (All US Airports)

48 47 99 103 160 153 228448 367

181

667893

3229

2892 2941 3020 29403147

2666 2785

3373

2600 2562 2609

2113

0% 0%

22%

39%

18%

4%10%

15% 15%

26%

9%8%

16%9%12%

7%5%3%4%

38%

49%49%43%43%

48%

0

500

1000

1500

2000

2500

3000

3500

4000

Jan'03

Feb Mar Apr May June Jul Aug Sept Oct Nov Dec Jan'04

Feb Mar Apr May June Jul Aug Sept Oct Nov Dec Jan'05

# o

f In

spec

tio

ns

0%

20%

40%

60%

80%

100%

% o

f In

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Res

ult

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in

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Inspections

Violation Rate

17 2/22/2005

Cargo Inspection Volumes & Violation Rates per Inspection Type (All US Airports)12918

129

8466

8

9882213

6680

8970

37%

1% 2%3%

38%

7%

21%

5%

0

2000

4000

6000

8000

10000

12000

14000

Domestic AirCarrier Cargo

Security

Domestic SecurityIntegrationProgram

Domestic IndirectCarrier

Focus CargoInspection for

Indirect Air Carrier

Focus CargoInspection for All

Cargo Carrier

Focus CargoInspection for

Passenger Carrier

Foreign Air CarrierCargo Security

Twelve FiveCompliance

Inspection Type

# o

f In

spec

tio

ns

0%

20%

40%

60%

80%

100%

% o

f In

spec

tio

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Res

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# of Inspections

% Violations to Inspections

IACs Represent the Greatest Compliance Opportunity

IAC inspections have led to a greater incidence of violations than all other inspection types combined. Violations found from IAC inspections account for approximately 72% of total violations* while only 23% of inspections** for the last two years .

IAC inspections & violations

*3186 violations from the Domestic Indirect Carrier Inspections and Focus Cargo Inspections for Indirect Air Carriers out of 4409 total violations.

**9454 Domestic Indirect Carrier Inspections and Focus Cargo Inspections for Indirect Air Carriers out of 40372 total inspections

18 2/22/2005

Progress on Key Congressional Mandates

Tripling of inspection requirements for passenger air carriers [DHS Appropriations Act]

– Draft AOSSP change issued to passenger carriers on February 15 th

– 30-day comment period complete

Hiring 2d 100 cargo aviation security inspectors (C-ASIs) [DHS Appropriations Act]

– Approximately half of positions have already been filled by trained inspectors

– Have worked closely with HR on an accelerated competitive hiring process for remainder

– More than 7,500 applications received

– Certification lists have been issued for all remaining vacancies and local hiring managers are in final stages of interviews/selection

– Set an aggressive internal goal of having all 100 on board by March 31st

Hardened container pilot [Intelligence Reform Act]

– Detailed planning underway

– Office of Technology is lead; Air Cargo Programs Office is partnering and cost-sharing

– 2 certified vendor products (Telair and Galaxy)

– 2 potential airline partners (Continental and United)

– Pilot to commence NLT June 15th

Air Cargo final regulations [Intelligence Reform Act]

– Due within 240 days of enactment

– On track to meet that timeline