In the last three years, Federal agencies have conducted several successful interagency operations overseas, including some in which suspected terrorists have been returned to the United States to stand trial. Federal agencies have also deployed personnel and equipment to prepare for many special events. However, Federal agencies have not completed interagency guidance and resolved command and control issues. Proposed interagency Domestic Guidelines have not been completed or coordinated with all Federal agencies with domestic counterterrorism roles. To improve their preparedness to respond to terrorist incidents, Federal agencies have conducted over 200 exercises, of which about half included 3 or more Federal agencies and about one third included State and local participants. However, agencies have not fully achieved the interagency counterterrorism exercise program directed in a June 1995 Presidential Directive because an interagency Exercise Subgroup has not prepared and submitted, and senior agency officials have not approved, an interagency program. As a result, some complex transfers of command and control between agencies have not been exercised. In a classified report, several recommendations were made to enhance interagency guidance, command and control, exercises, and processes to capture and share lessons learned. 4 tables and 14 footnotes