CBP's FY 2012 Budget Request Would Cut Total ACE Funding in Half but Invest in Cargo Release

February 16, 2011 by Barbara Chaves|Top News

U.S. Customs and Border Protection’s $11.8 billion budget request for fiscal year 2012 would cut Automated Commercial Environment (ACE) funding in half but focus funds on certain important ACE functionality such as cargo release. The budget request would also provide funds for maritime cargo screening pilots, border technology, Border Patrol agents, and CBP officers.

Overall, the budget request would be a 1% increase from FY 2011’s request and a .9% decrease from FY 2010 enacted funding, which is the current funding level as FY 2011 funding has yet to be approved.¹

ACE Budget Request is Half of 2010 Level, Perhaps due to “Steady State” Plan

For fiscal year 2012, CBP is requesting $364 million for automated systems, of which, not less than $170 million would be allocated for the development of ACE. This level is less thanhalf the $342 million amount allocated to ACE in FY 2010. (CBP’s FY 2011 budget request also included a significant cut to ACE funding but it has yet to be enacted. See ITT’s Online Archives or 03/05/10 news, 10030505, for BP summary of ACE funding in CBP’s FY 2011 budget request.)

CBP has previously stated that in FY 2011, it would transition ACE to a “steady state” (operations and maintenance mode). During this time, it would forgo development of enhanced modernization capabilities, and take a more focused look at its business requirements. CBP has also stated that cargo release would be the next ACE priority after M1 (e-Manifest: Ocean and Rail) and noted in October 2010 that the full deployment of Cargo Release was 2 ½ - 3 years away.

(See ITT’s Online Archives or 11/01/10, 09/13/10, and 03/05/10 news, 10110110, 10091312, and 10030505, for BP summaries.)

CBP Wants to Complete ACE Cargo Release Segment with FDA & Other PGA Requirements, Etc.

Under the proposed budget, CBP would allocate $20 million to support the design and development of Cargo Release functionality in ACE. According to CBP, this funding, combined with $15 million from carryover funds, would allow a useful segment to be completed providing ACE users with a new operational capability.

Incorporate PGA requirements. CBP states that Cargo Release functionality will incorporate the informational and operational requirements of more than 40 Participating Government Agencies (PGAs) into ACE via the International Trade Data System (ITDS) initiative. This will facilitate faster cargo processing by providing CBP officers with security screening results and streamlining the process of separating high-risk cargo from low-risk cargo.

Add querying capabilities, eliminate paper forms. It would also provide new cargo status querying capabilities, giving trade partners visibility into cargo screening results and other government agency data requirements. Cargo release will also provide new electronic messages for other government agency data requirements, allowing the elimination of paper forms.

$7.5M for Cargo Pilot(s) to Assess Alternatives to 100% Maritime Cargo Scanning

CBP is seeking $7.5 million to conduct cargo screening pilot(s) to assess alternatives to the 100% maritime cargo scanning as mandated by the Security and Accountability for Every Port (SAFE) Act of 2006. This would enable CBP to test alternatives to extend the zone of security beyond the physical borders, strengthen global supply chain security, and enhance CBP’s multi-layered security strategy.

Requests Funds for 300 New Officers, 1,000 New Border Patrol Agents

The FY 2012 budget requests an additional $43.1 million to add 300 new CBP officers and canine assets to new and expanded ports of entry (POEs). The additional CBP officers would enhance CBP’s ability to process legitimate travelers and cargo, reducing wait times at the expanded POE’s. Working in tandem, CBP believes that the additional officers and canines would increase CBP enforcement capabilities to prevent the entry of unlawful people and contraband.

The request would also annualize positions supported by the FY 2010 Emergency Border Security Supplemental for the Southwest Border, including 1,000 Border Patrol agents and 250 CBP officers.

$244M for Border Technology in Arizona, $55M for Technology/Pilots for Northern Border

CBP is requesting $242 million to support the Arizona deployment strategy for DHS’ new border security technology plan. The funds would be used to complete the first three (of five total) Integrated Fixed Tower (IFT) System deployments to Border Patrol Stations’ areas of responsibility in Arizona.

It is also seeking $55 million to support investments in technology systems which address security needs for the Northern Border maritime and cold weather environment, as well as innovative technology pilots. CBP would also deploy proven, stand-alone technology that provides immediate operational benefits. These demonstrations and deployments explore how best to integrate various sensors, border security organizations, and mission operations in order to optimize border security in this challenging environment.

Funds Requested to Support IPR Enforcement

The FY 2012 budget request includes funds to support CBP’s enforcement program to prevent trade in counterfeit and pirated goods, and enforce exclusion orders on patent-infringing and other Intellectual Property Rights violative goods.

Requests Funds for Collection of Customs Revenue

CBP is requesting funds to support its role as a revenue collector for the U.S. Treasury -- customs revenue remains the second largest source of revenue for the U.S. government. CBP has set revenue collection as a Priority Trade Issue to ensure effective internal controls that protect the duties and taxes (over $29 billion in 2009) collected for the U.S. Government.

Would Cut Air/Marine Recapitalization, Professional Services, Etc.

CBP’s proposed FY 2012 budget would also reduce certain expenditures including:

delayed acquisitions of several new and replacement platforms under the Air and Marine acquisition program (-$48M);
reduced professional services (-$30M)
cuts to mission support through efficiencies and deferring non-mission-critical expenses (-$20M); and
reduced facility spending (-$25M).

¹See ITT’s Online Archives or 01/06/11 news, 11010622, for BP summary of the President signing a short-term bill to continue Federal government funding at FY 2010 levels through March 4, 2011.

DHS “Budget in Brief” (with details of CBP budget request) available here.