In 2007, following the implementation of new document requirements for travelers entering the U.S. from within the Western Hemisphere, the Dept. of State (State) received a record number of passport applications. In June 2009 further document requirements are scheduled to go into effect and will likely lead to another surge in passport demand. This report examined: (1) the extent to which State was prepared for the surge in passport demand and how its readiness affected passport operations; (2) State¿s actions to increase passport production capacity in response to the surge; and (3) State¿s readiness for near-term surges in demand and its strategy to improve passport operations. Includes recommendations. Charts and tables.