January 29, 2022

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Inaugural U.S.-Taiwan Economic Prosperity Partnership Dialogue

12 min read

Office of the Spokesperson

The close relationship between the United States and Taiwan is rooted in our commitment to the defense of freedom and the promotion of democratic values. Our partnership is built on economic investment and shared people-to-people ties, and we share a vision for the world that includes the rule of law, transparency, reciprocity, prosperity, the protection of human rights, and security for all. These are the same principles that are embodied in the Clean Network, of which we both have the honor of being members.

Guided by these principles and recognizing the importance of our relationship, the United States and Taiwan, under the auspices of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office (TECRO), held the inaugural meeting of the U.S.-Taiwan Economic Prosperity Partnership (EPP) Dialogue today in Washington, DC. The EPP Dialogue was an opportunity to continue work in existing areas of economic cooperation while also forging new economic ties between the United States and Taiwan. Led by the Under Secretary of State for Economic Growth, Energy, and the Environment Keith Krach, the U.S. delegation included Assistant Secretary of State for East Asian and Pacific Affairs David Stilwell and AIT Taipei Director Brent Christensen. The Taiwan delegation included Minister without Portfolio John Deng, Minister of Economic Affairs Wang Mei-Hua, Minister of Science and Technology Wu Tsung-Tsong, and Deputy Minister of Economic Affairs C.C. Chen.

The EPP Dialogue covered a broad range of economic issues including the Clean Network, 5G networks and telecommunications security, supply chains, investment screening, clean infrastructure cooperation, renewable energy, global health, science and technology, and women’s economic empowerment, education and entrepreneurship. As a sign of continued and expanded commitment to science and technology collaboration, AIT and TECRO also announced their intention to negotiate a Science and Technology Agreement to advance joint understanding and collaboration on a broad range of science and technology topics.

Future EPP Dialogues will help strengthen the U.S.-Taiwan economic relationship, further magnify the two societies’ respect for democracy, and strengthen our shared commitment to free markets, entrepreneurship, and freedom.

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  • Defense Acquisitions: DOD Should Take Additional Actions to Improve How It Approaches Intellectual Property
    In U.S GAO News
    Why This Matters The Department of Defense (DOD) acquires and licenses intellectual property (IP)—such as computer software and technical data—for its cutting-edge weapon systems. Yet, DOD often does not acquire the IP it needs to operate and maintain those systems, which can lead to surging costs later. In 2019, DOD assigned specific IP responsibilities to organizations within the department. Key Takeaways DOD organizations are working to meet their assigned IP responsibilities. However, DOD has not fully addressed how the IP Cadre—DOD's new group of specialized experts—will fulfill all of its responsibilities. The IP Cadre faces uncertainty in these areas: Funding and staffing: DOD currently plans to provide the Director of the IP Cadre and his team in the Office of the Secretary of Defense (OSD) with funding for five positions through fiscal year 2023. IP Cadre members told us the temporary positions were a disincentive during the hiring process and could present future staffing obstacles. Program support: The members of the IP Cadre at OSD expect to tap into a larger pool of IP experts across DOD to support program offices by helping them develop IP strategies and negotiate with contractors, among other things. However, DOD has not yet detailed how the Director of the IP Cadre and the OSD team will work with these other experts. Expertise: DOD officials said the department lacks sufficient expertise in two key areas—IP valuation (determining its worth) and financial analysis. DOD is currently conducting a pilot project to study valuation strategies. However, DOD officials said more work is needed to provide this expertise. Determining the IP Cadre's staffing and resource needs will help DOD better position the IP Cadre for success. Department of Defense Intellectual Property Cadre How GAO Did This Study We reviewed guidance, reports, and documentation on IP issues; interviewed DOD personnel, military officials, and industry groups; and reviewed the existing regulatory and agency frameworks related to IP.
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    In U.S GAO News
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    In U.S GAO News
    What GAO FoundOverlap and fragmentation among government programs or activities can be harbingers of unnecessary duplication. In this report we include 81 areas for consideration drawn from GAO's prior and ongoing work. We present 34 areas where agencies, offices, or initiatives have similar or overlapping objectives or provide similar services to the same populations; or where government missions are fragmented across multiple agencies or programs. We also present 47 additional areas—beyond those directly related to duplication, overlap, or fragmentation—describing other opportunities for agencies or Congress to consider taking action that could either reduce the cost of government operations or enhance revenue collections for the Treasury. All of these areas span a range of agencies and government missions: agriculture, defense, economic development, energy, general government, health, homeland security, international affairs, and social services. Collectively, by reducing or eliminating duplication, overlap, or fragmentation and addressing these other cost savings opportunities, the federal government could potentially save billions of tax dollars annually and help agencies provide more efficient and effective services—but these actions will require some difficult decisions.Go to Report at a Glance to view the table summarizing all 81 areas we include in this report. The areas identified in this report are not intended to represent the full universe of duplication, overlap, or fragmentation within the federal government.Why GAO Did This StudyThis is GAO's first annual report to Congress in response to a new statutory requirement that GAO identify federal programs, agencies, offices, and initiatives, either within departments or governmentwide, which have duplicative goals or activities. Congress asked GAO to conduct this work and to report annually on our findings. (See Pub. L. No. 111-139, § 21, 124 Stat. 29 (2010), 31 U.S.C. § 712 Note.) This work will inform government policymakers as they address the rapidly building fiscal pressures facing our national government.Objectives(1) identify federal programs or functional areas where unnecessary duplication, overlap, or fragmentation exists, the actions needed to address such conditions, and the potential financial and other benefits of doing so(2) highlight opportunities for additional potential savings or increased revenues.
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  • Aviation Services: Information on Airports Exercising Their Right as the Sole Provider of Fuel
    In U.S GAO News
    What GAO Found Based on GAO's survey, 588 of the nearly 2,000 airports responding to the survey reported exercising their proprietary exclusive right (the right to be the sole service provider) for aviation fuel services. While airports are generally prohibited from granting an exclusive right to any party to provide aviation services, the Federal Aviation Administration (FAA) has determined that an airport can be the exclusive provider of such services, thereby precluding other parties from providing those services at the airport. Most (567) of these airports are general aviation airports—airports that have no scheduled commercial service or have scheduled service but fewer than 2,500 passenger boardings per year. The 588 airports are located in 45 of the 48 contiguous states and in all of the FAA regions covering these states. Location of Airports that Reported Using the Proprietary Exclusive Right on GAO Survey, by Federal Aviation Administration Region Note: An airport sponsor may elect to provide any or all of the aeronautical services at its airports and be the exclusive provider of those services. This is known as the proprietary exclusive right. GAO's survey and interviews with selected airports found most airports that report exercising their proprietary exclusive right do so based largely on attracting users to the airport, providing a high level of reliable customer service, and generating airport revenue. Over 90 percent of the 588 airports responded that attracting users to the airport and generating revenue were very important or somewhat important to their decision to provide fuel service. Further, officials from 17 of the 26 airports GAO interviewed explained that the resulting revenue was a main factor in their decision to provide fuel service. For example, one airport manager said the revenue allows the airport to invest in capital projects, such as building hangars, to help attract users to the airport. The revenue can also help an airport become as financially self-sustaining as possible, which is a requirement to receive federal airport grants. Airports also cited providing consistent customer service as a key factor in exercising their proprietary exclusive right. For example, one airport manager GAO spoke to said complaints about the former private fuel provider's customer service and prices prompted the airport to become the sole service provider. Why GAO Did This Study FAA, through federal airport grants, helps fund airports' capital development and is responsible for overseeing airports' compliance with federal requirements incorporated in airport grant agreements. Under these agreements, airports are generally not allowed to grant exclusive rights to any person or entity to provide aeronautical services—such as fuel—on airport grounds. FAA has determined, however, that airports themselves can opt to be the exclusive provider of such services by exercising their proprietary exclusive right. The FAA Reauthorization Act of 2018 included a provision for GAO to examine airports that have exercised their proprietary exclusive right. This report addresses what is known about the number and characteristics of airports that are currently exercising their proprietary exclusive right to provide fuel and the factors airports consider when deciding whether to exercise this right to provide fuel. GAO reviewed relevant federal statutes, FAA policies and guidance, airport documents and websites, and conducted a web survey of all 3,010 public use airports in the contiguous United States. GAO interviewed officials at a non-generalizable sample of 26 airports that self-identified as exercising their proprietary exclusive right and at 10 airports that are not exercising their proprietary exclusive right, selected based on a mix of characteristics, including the amount of fuel sales. GAO also interviewed FAA compliance staff at headquarters and regional offices. For more information, contact Heather Krause at (202) 512-2834 or krauseh@gao.gov.
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  • Contingency Contracting: Improvements Needed in Management of Contractors Supporting Contract and Grant Administration in Iraq and Afghanistan
    In U.S GAO News
    The Departments of Defense (DOD) and State and the U.S. Agency for International Development (USAID) have relied extensively on contractors in Iraq and Afghanistan, including using contractors to help administer other contracts or grants. Relying on contractors to perform such functions can provide benefits but also introduces potential risks, such as conflicts of interest, that should be considered and managed. Pursuant to the National Defense Authorization Act for Fiscal Year 2008, GAO reviewed (1) the extent to which DOD, State, and USAID rely on contractors to perform contract and grant administration in Iraq and Afghanistan; (2) the reasons behind decisions to use such contractors and whether the decisions are guided by strategic workforce planning; and (3) whether agencies considered and mitigated related risks. GAO analyzed relevant federal and agency policies and agency contract data, and conducted file reviews and interviews for 32 contracts selected for case studies.DOD, State, and USAID'suse of contractors to help administer contracts and grants was substantial, although the agencies did not know the full extent of their use of such contractors. GAO found that the agencies had obligated nearly $1 billion through March 2009 on 223 contracts and task orders active during fiscal year 2008 or the first half of fiscal year 2009 that included the performance of administration functions for contracts and grants in Iraq and Afghanistan. The specific amount spent to help administer contracts or grants in Iraq and Afghanistan is uncertain because some contracts or task orders included multiple functions or performance in various locations and contract obligation data were not detailed enough to allow GAO to isolate the amount obligated for other functions or locations. Overall, the agencies relied on contractors to provide a wide range of services, including on-site monitoring of other contractors' activities, supporting contracting or program offices on contract-related matters, and awarding or administering grants. For example, Air Force Center for Engineering and the Environment officials noted that contractors performed quality assurance for all of the center's construction projects in Iraq and Afghanistan. In another example, USAID contractors awarded and administered grants on USAID's behalf to support development efforts in Iraq and Afghanistan. Decisions to use contractors to help administer contracts or grants are largely made by individual contracting or program offices on a case-by-case basis. In doing so, the offices generally cited the lack of sufficient government staff, the lack of in-house expertise, or frequent rotations of government personnel as key factors contributing to the need to use contractors. Offices also noted that using contractors in contingency environments can be beneficial, for example, to meet changing needs or address safety concerns regarding the use of U.S. personnel in high-threat areas. GAO has found that to mitigate risks associated with using contractors, agencies have to understand when, where, and how contractors should be used, but offices' decisions were generally not guided by agencywide workforce planning efforts. DOD, State, and USAID took actions to mitigate conflict of interest and oversight risks associated with contractors helping to administer other contracts or grants, but did not always fully address these risks. For example, agencies generally complied with requirements related to organizational conflicts of interest, but USAID did not include a contract clause required by agency policy to address potential conflicts of interest in three cases. Also, some State officials were uncertain as to whether federal ethics laws regarding personal conflicts of interest applied to certain types of contractors. In almost all cases, the agencies had designated personnel to provide contract oversight. DOD, State, and USAID contracting officials generally did not, however, ensure enhanced oversight as required for situations in which contractors provided services closely supporting inherently governmental functions despite the potential for loss of government control and accountability for mission-related policy and program decisions.
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  • Areas with High Poverty: Changing How the 10-20-30 Funding Formula Is Applied Could Increase Impact in Persistent-Poverty Counties
    In U.S GAO News
    What GAO Found Some federal agencies have been statutorily required to use the “10-20-30 formula” when allocating funding for certain programs. That is, agencies must allocate at least 10 percent of designated funds to counties with poverty rates of at least 20 percent over the last 30 years (persistent-poverty counties). However, GAO found the formula has not always increased the proportion of funding awarded to those counties. The Department of Commerce's Economic Development Administration (EDA) and Department of the Treasury's Community Development Financial Institutions (CDFI) Fund both awarded at least 10 percent of designated funds to persistent-poverty counties in fiscal years 2017–2020, but generally had done so before 2017. Most of their programs subject to the formula already were required to target funds to economically distressed areas. The Department of Agriculture's (USDA) Rural Development awarded less than 10 percent of designated funds to persistent-poverty counties in at least one fiscal year for six out of 10 appropriations accounts. Rural Development set aside 10 percent of designated funds for use in those counties, which officials said met the statutory requirement to allocate these funds. Officials said some programs had not received a sufficient number of applications from these counties to meet the threshold because the programs are not well-suited to areas with severe poverty. For example, it may not be financially prudent for local governments in persistent-poverty counties to participate in a loan program to finance community facilities if the governments cannot service the debt. The purpose of the 10-20-30 formula—to increase the proportion of funding awarded to persistent-poverty counties—could be better achieved by focusing its application on programs that do not already target such areas and which can provide meaningful assistance to economically distressed communities. The three agencies GAO reviewed used different datasets and methodologies to identify persistent-poverty counties for the 10-20-30 formula. Appropriations laws for 2017–2020 required the agencies to use data from different years and sources, some outdated, to identify the counties. EDA also used a methodology that identified more than 100 additional persistent-poverty counties, than the other two agencies. Requiring each agency to identify persistent-poverty counties in this way is inefficient, and the inconsistency limits the ability to compare targeted funding across agencies. Using a uniform list of persistent-poverty counties, updated each year, would reduce administrative costs and facilitate assessments of the formula's impact across agencies. Such a measure also could help ensure more consistent investment in areas with current poverty rates of at least 20 percent. USDA's Economic Research Service has the technical capabilities to produce such a list and officials said that doing so each year would not be resource intensive because the agency already publishes other related work using the same data. Why GAO Did This Study Since 2009, the 10-20-30 formula has been applied to appropriations for certain federal programs and accounts. This includes programs and accounts administered by USDA's Rural Development, Treasury's CDFI Fund, and Commerce's EDA that averaged more than $10 billion in each fiscal year from 2017 to 2020. GAO was asked to review certain issues related to the 10-20-30 formula. This report examines (1) the proportion of funds subject to the 10-20-30 formula that these agencies awarded in persistent-poverty counties in 2017–2020 and the effects on funding levels to these areas, and (2) how agencies identify persistent-poverty counties. GAO analyzed agency budget and administrative data for fiscal years 2017—2020. GAO also reviewed documentation, such as program descriptions and funding notices, and interviewed agency officials.
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Evidence collected during the pandemic suggests the prevalence of behavioral health conditions has increased, while access to in-person behavioral health services has decreased: Centers for Disease Control and Prevention (CDC) survey data collected from April 2020 through February 2021 found that the percentage of adults reporting symptoms of anxiety or depression averaged 38 percent. In comparison, using similar questions, CDC found that about 11 percent of U.S. adults reported experiencing these symptoms from January to June 2019. An analysis of CDC data found that the share of emergency department visits for drug overdoses and suicide attempts were 36 and 26 percent higher, respectively, for the period of mid-March through mid-October 2020 compared to the same time period in 2019. In a February 2021 survey of its members, NCBH found that in the 3 months preceding the survey, about two-thirds of the member organizations surveyed reported demand for their services increasing and having to cancel or reschedule patient appointments or turn patients away. The survey also found that during the pandemic, 27 percent of member organizations reported laying off employees, 45 percent reported closing some programs, and 35 percent decreased the hours for staff. Officials GAO interviewed from provider organizations offered anecdotal examples of problems with payments for behavioral health services, including examples suggesting that denials and delays were more common for these services than they were for medical/surgical services. However, most officials were not aware of published data that could confirm their concerns, and data from reports from two states on claims denials either did not support their concerns or were inconclusive. In addition, a report in one state that examined mental health parity—requirements that behavioral health benefits are not more restrictive than medical/surgical benefits—found that the rate of complaints associated with behavioral health services was notably lower than those for medical/surgical services. The lack of available data confirming stakeholder concerns could be related to potential challenges consumers and providers face in identifying and reporting mental health parity violations, as previously reported by GAO. Specifically, in 2019, GAO found that complaints were not a reliable indicator of such violations, because consumers may not know about parity requirements or may have privacy concerns related to submitting a complaint. GAO recommended that the federal agencies involved in the oversight of mental health parity requirements evaluate the effectiveness of their oversight efforts. As of March 2021, the agencies had not yet implemented this recommendation. Why GAO Did This Study Behavioral health conditions, which include mental health and substance use disorders, affect a substantial number of adults in the United States. For example, in 2019, an estimated 52 million adults in the United States were reported to have a mental, behavioral, or emotional disorder, and 20 million people aged 12 or older had a substance use disorder. Experts have expressed concerns that the incidence of behavioral health conditions would increase as a result of stressors associated with the COVID-19 pandemic. Even before the pandemic, longstanding questions have been raised about whether coverage or claims for behavioral health services are denied or delayed at higher rates than those for other health services. GAO was asked to examine several issues about the demand for behavioral health services, as well as coverage and payment for these services. GAO examined (1) what is known about the need for and availability of behavioral health services, and how these have changed during the COVID-19 pandemic; and (2) what issues selected stakeholders identified regarding the payment of claims for behavioral health services. GAO reviewed survey data and other relevant analyses focused on the need for and availability of behavioral health services prior to and during the COVID-19 pandemic. GAO also reviewed reports from two states that compared claims for behavioral health services with those of other health services; interviewed officials from NCBH; and interviewed officials from hospital associations and insurance regulators in Oregon, Pennsylvania, Texas, and Virginia. For more information, contact John E. Dicken at 202-512-7114 or dickenj@gao.gov.
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