[Senate Report 112-193]
[From the U.S. Government Publishing Office]
112th Congress
2d Session SENATE Report
112-193
_______________________________________________________________________
ACTIVITIES OF THE COMMITTEE ON
HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
and its
SUBCOMMITTEES
for the
ONE HUNDRED ELEVENTH CONGRESS
July 31, 2012.--Ordered to be printed
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware SCOTT P. BROWN, Massachusetts
MARK L. PRYOR, Arkansas JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana RON JOHNSON, Wisconsin
CLAIRE McCASKILL, Missouri ROB PORTMAN, Ohio
JON TESTER, Montana RAND PAUL, Kentucky
MARK BEGICH, Alaska JERRY MORAN, Kansas
Michael L. Alexander, Staff Director
Leslie J. Phillips, Senior Advisor and Communications Director
Nicholas A. Rossi, Minority Staff Director
Trina Driessnack Tyrer, Chief Clerk
Patricia R. Hogan, Publications Clerk
Laura W. Kilbride, Hearing Clerk
------
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS DURING THE
111TH CONGRESS
JOSEPH I. LIEBERMAN, Connecticut, Chairman
CARL LEVIN, Michigan SUSAN M. COLLINS, Maine
DANIEL K. AKAKA, Hawaii TOM COBURN, Oklahoma
THOMAS R. CARPER, Delaware SCOTT P. BROWN, Massachusetts\5\
MARK L. PRYOR, Arkansas JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana GEORGE V. VOINOVICH, Ohio
CLAIRE McCASKILL, Missouri JOHN ENSIGN, Nevada
JON TESTER, Montana LINDSEY GRAHAM, South Carolina
PAUL G. KIRK, Jr., Massachusetts\3\ ROBERT F. BENNETT, Utah\1\
EDWARD E. KAUFMAN, Delaware\4\ MARK KIRK, Illinois\8\
CHRISTOPHER A. COONS, Delaware\6\
ROLAND W. BURRIS, Illinois\7\
MICHAEL F. BENNET, Colorado\2\
------
SUBCOMMITTEES OF THE 111TH CONGRESS
OVERSIGHT OF GOVERNMENT MANAGEMENT, THE FEDERAL WORKFORCE, AND THE
DISTRICT OF COLUMBIA (OGM)
DANIEL K. AKAKA, Hawaii, Chairman
CARL LEVIN, Michigan GEORGE V. VOINOVICH, Ohio
MARY L. LANDRIEU, Louisiana SCOTT P. BROWN, Massachusetts\5\
ROLAND W. BURRIS, Illinois\7\ LINDSEY GRAHAM, South Carolina
MICHAEL F. BENNET, Colorado\2\ ROBERT F. BENNETT, Utah\1\
PAUL G. KIRK, Jr., Massachusetts\3\
EDWARD E. KAUFMAN, Delaware\4\
CHRISTOPHER A. COONS, Delaware\6\
------
FEDERAL FINANCIAL MANAGEMENT, GOVERNMENT INFORMATION, FEDERAL SERVICES,
AND INTERNATIONAL SECURITY (FFM)
THOMAS R. CARPER, Delaware, Chairman
CARL LEVIN, Michigan JOHN McCAIN, Arizona
DANIEL K. AKAKA, Hawaii TOM COBURN, Oklahoma
MARK L. PRYOR, Arkansas GEORGE V. VOINOVICH, Ohio
CLAIRE McCASKILL, Missouri JOHN ENSIGN, Nevada
ROLAND W. BURRIS, Illinois\7\
------
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS (PSI)
CARL LEVIN, Michigan, Chairman
THOMAS R. CARPER, Delaware TOM COBURN, Oklahoma
MARK L. PRYOR, Arkansas SUSAN M. COLLINS, Maine
CLAIRE McCASKILL, Missouri JOHN McCAIN, Arizona
JON TESTER, Montana JOHN ENSIGN, Nevada
MICHAEL F. BENNET, Colorado\2\
PAUL G. KIRK, Jr., Massachusetts\3\
EDWARD E. KAUFMAN, Delaware\4\
CHRISTOPHER A. COONS, Delaware\6\
------
AD HOC SUBCOMMITTEE ON STATE, LOCAL, AND PRIVATE SECTOR PREPAREDNESS
AND INTEGRATION (SLPSPI)
MARK L. PRYOR, Arkansas, Chairman
DANIEL K. AKAKA, Hawaii JOHN ENSIGN, Nevada
MARY L. LANDRIEU, Louisiana GEORGE V. VOINOVICH, Ohio
JON TESTER, Montana LINDSEY GRAHAM, South Carolina
MICHAEL F. BENNET, Colorado\2\
------
AD HOC SUBCOMMITTEE ON DISASTER RECOVERY (SDR)
MARY L. LANDRIEU, Louisiana, Chairman
CLAIRE McCASKILL, Missouri LINDSEY GRAHAM, South Carolina
ROLAND W. BURRIS, Illinois\7\ ROBERT F. BENNETT, Utah\1\
SCOTT P. BROWN, Massachusetts\5\
------
AD HOC SUBCOMMITTEE ON CONTRACTING OVERSIGHT (SCO)
CLAIRE McCASKILL, Missouri, Chairman
CARL LEVIN, Michigan SCOTT P. BROWN, Massachusetts\5\
THOMAS R. CARPER, Delaware ROBERT F. BENNETT, Utah\1\
MARK L. PRYOR, Arkansas SUSAN M. COLLINS, Maine
JON TESTER, Montana TOM COBURN, Oklahoma
PAUL G. KIRK, Jr., Massachusetts\3\ JOHN McCAIN, Arizona
EDWARD E. KAUFMAN, Delaware\4\ LINDSEY GRAHAM, South Carolina
CHRISTOPHER A. COONS, Delaware\6\
\1\Senator Robert F. Bennett served on the Committee from 7/31/2009 to
3/9/2010.
\2\Senator Michael F. Bennet left the Committee on 9/29/2009.
\3\Senator Paul G. Kirk, Jr. served on the Committee from 9/29/2009 to
3/9/2010.
\4\Senator Edward E. Kaufman served on the Committee from 3/9/2010 to
11/15/2010.
\5\Senator Scott P. Brown joined the Committee on 3/9/2010.
\6\Senator Christopher A. Coons joined the Committee on 11/15/2010.
\7\Senator Roland W. Burris left the Committee on 11/29/2010.
\8\Senator Mark Kirk joined the Committee on 12/7/2010.
CONTENTS
------
Page
I. Highlights of Activities.........................................1
Homeland Security.......................................... 3
A. Violent Islamist Extremists, Homegrown Terror, and
Counterterrorism......................................... 4
B. Fort Hood Investigation............................... 6
C. IRTPA Five Years Later/Intelligence................... 8
D. Cybersecurity......................................... 11
E. Biosecurity........................................... 13
F. Weapons of Mass Destruction........................... 15
G. Border and Travel Security............................ 17
H. Emergency Preparedness and Response................... 20
I. Federal Building Security............................. 26
J. Internal DHS Matters.................................. 27
K. Quadrennial Homeland Security Review.................. 28
Contracting Reform......................................... 28
A. Defense Contract Audit Agency......................... 28
B. Reducing Reliance on Government Contractors........... 29
C. Special Inspector General for Iraq Reconstruction..... 29
D. New Subcommittee...................................... 30
American Recovery and Reinvestment Act..................... 30
Protecting Federal Employees............................... 31
A. Domestic Partners..................................... 31
B. Retirement Equity..................................... 31
C. Whistleblowers........................................ 32
D. Relocation Expenses................................... 32
Improving Government Efficiency............................ 32
A. Information Technology................................ 32
B. E-Government.......................................... 33
C. Telecommunications.................................... 34
D. Improper Payments..................................... 34
E. Performance Measurements.............................. 34
District of Columbia....................................... 34
A. Voting Rights......................................... 34
B. Education............................................. 35
Working for Connecticut.................................... 36
A. Homeland Security Grants.............................. 36
B. H1N1.................................................. 36
Miscellaneous.............................................. 37
A. Iran Sanctions........................................ 37
B. Fiscal Balance........................................ 37
C. Payment for Rides on Corporate Jets................... 37
D. Policy Czars.......................................... 38
E. Census................................................ 38
F. Presidential Transitions.............................. 38
G. Sam Hicks............................................. 39
H. Inspectors General.................................... 39
II. Committee Jurisdiction..........................................40
III. Bills and Resolutions Referred and Considered...................43
IV. Hearings........................................................43
V. Reports, Prints, and GAO Reports................................47
Committee Reports........................................ 47
Committee Prints......................................... 50
GAO Reports.............................................. 50
VI. Official Communications.........................................58
VII. Legislative Actions.............................................58
Measures Enacted Into Law................................ 59
Postal Naming Bills...................................... 64
VIII.Presidential Nominations........................................69
IX. Activities of the Subcommittees.................................73
Federal Financial Management, Government Information, and International
Security Subcommittee (FFM)
I. Hearings........................................................73
II. Legislation.....................................................84
III. GAO Reports.....................................................90
Oversight of Government Management, the Federal Workforce, and the
District of Columbia Subcommittee (OGM)
I. Hearings........................................................93
II. Legislation....................................................109
Measures Enacted Into Law................................ 109
Measures Favorably Reported by the Subcommittee and
Passed by the Senate..................................... 111
Measures Referred to the Subcommittee on which Hearings
were held or other Legislative Action was taken.......... 113
Measures which did not advance beyond referral to
Subcommittee............................................. 113
III. GAO Reports....................................................116
Permanent Subcommittee on Investigations (PSI)
I. Historical Background..........................................119
A. Subcommittee Jurisdiction............................. 119
B. Subcommittee Investigations........................... 121
II. Subcommittee Hearings during the 111th Congress................126
III. Legislation Activities during the 111th Congress...............143
IV. Reports........................................................148
V. GAO Requested and Sponsored Reports............................154
Ad Hoc Subcommittee on State, Local, and Private Sector Preparedness
and Integration (SLPSPI)
I. Hearings.......................................................164
II. Legislation....................................................168
Ad Hoc Subcommittee on Disaster Recovery (SDR)
I. Hearings.......................................................170
II. Legislation....................................................176
Ad Hoc Subcommittee on Contracting Oversight (SCO)
I. Hearings.......................................................177
II. Legislation....................................................188
112th Congress
SENATE
Report
2d Session 112-193
======================================================================
ACTIVITIES OF THE COMMITTEE ON HOMELAND
SECURITY AND GOVERNMENTAL AFFAIRS
DURING THE 111TH CONGRESS
_______
July 31, 2012.--Ordered to be printed
_______
Mr. LIEBERMAN, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
_______
REPORT
This report reviews the legislative and oversight
activities of the Committee on Homeland Security and
Governmental Affairs and its Subcommittees during the 111th
Congress. These activities were conducted pursuant to the
Legislative Reorganization Act of 1946, as amended; by Rule
XXV(k) of the Standing Rules of the Senate; and by additional
authorizing resolutions of the Senate. See Section II,
``Committee Jurisdiction,'' for details.
Senator Lieberman was Chairman of the Committee during the
111th Congress; Senator Collins was the Ranking Member.
Major activities of the Committee during the 111th Congress
included legislation on the 9/11 Commission recommendations,
contracting reform, conducting an investigation into the Fort
Hood shootings, and holding hearings on the new
Administration's nominees. Discussion of these major activities
appears in Section I below; additional information on these and
other measures appears in Section VII, ``Legislative Actions.''
Extensive information about the Committee's history,
hearings, legislation, documents, Subcommittees, and other
matters is available at the Web site, http://hsgac.senate.gov/.
I. HIGHLIGHTS OF ACTIVITIES
The 111th Congress opened with a burst of energy borne of a
series of firsts. A new President, Barack Obama, had been
elected to lead the country. He was the first African-American
ever elected President. He was also the first Democrat to hold
the Nation's top office in 8 years. The euphoria of a Nation
hoping it had moved beyond its past racial strife was tempered,
however, by the stark reality of the worst economy since the
Great Depression. The autumn of 2008 had seen a near collapse
of the capitalist system, a collapse averted only by the
intervention of the Federal Government, which singlehandedly
propped up the financial services sector and the automobile
industry to avoid a complete economic meltdown.
Against this backdrop, the Homeland Security and
Governmental Affairs Committee (HSGAC) spent a good portion of
the year helping the new Administration move its nominees
through the lengthy and often bumpy Senate nomination process.
At the same time, the Committee launched a series of oversight
hearings to examine an outdated Federal financial regulatory
structure and to oversee the billions of dollars in stimulus
funding Congress had approved the previous fall to jumpstart
the economy.
The Committee's attention since 2003 to homeland security
issues focused early in the 111th Congress on the ever
escalating violence along the Southern border with Mexico and
the successful efforts of an al-Qaeda offshoot in Somalia to
recruit young Somali-Americans to its cause. In the latter half
of 2009, however, the Committee pivoted back to homegrown
terrorism when a plot to bomb the New York subway system was
uncovered in September and when a radicalized Muslim U.S. Army
Major opened fire at Fort Hood, Texas, in November killing 13
people.
Committee Chairman Joseph Lieberman, ID-Conn., and Ranking
Member Susan Collins, R-Me., immediately launched an
investigation into the Fort Hood shootings, which Chairman
Lieberman called the worst terrorist event in this country
since September 11, 2001. Subpoenas were served to the
Departments of Defense and Justice, and eventually, the
investigation found that two colleagues had called Major Nidal
Hasan a ``ticking time bomb.'' The Chairman's and Senator
Collins's final report, issued in the 112th Congress, concluded
that the Department of Defense and the FBI ``collectively had
the information necessary to have detected the radicalization
of Major Nidal Hasan to violent Islamist extremism but failed
to understand or act on it.''
The Committee had also begun a series of hearings in the
fall of 2009 to examine the Intelligence Reform and Terrorist
Prevention Act of 2004 (IRTPA), 5 years after it was signed
into law. When a young Nigerian botched an attempt to blow up
an airplane on Christmas Day 2009 with explosives smuggled
through security in his underwear, the Committee turned its
IRTPA hearings into a more specific look at how both Major
Hasan and the so-called ``underwear bomber,'' Umar Farouk
Abdulmutallab, had managed to break through the Nation's
homeland security and intelligence defenses and whether the
Director of National Intelligence (DNI) needed additional
authorities to carry out his responsibilities.
In other homeland security investigative work, the
Committee's inquiry into two troubled Department of Homeland
Security (DHS) programs meant to prevent the smuggling of
nuclear materials into this country led the Department to
freeze the two programs. And work began in earnest on
bipartisan legislation to remake the government's program for
securing its own cyber systems and networks and that of the
most critical infrastructure.
Within the governmental affairs realm, the Committee upheld
its record of promoting effective and efficient government
through close oversight of a variety of agencies and programs
within its jurisdiction. In addition to the previously
mentioned hearings on the American Recovery and Reinvestment
Act (ARRA), the Committee tracked the government's preparation
and response to the outbreak of the H1N1 virus through hearings
and oversight letters. When the Deepwater Horizon oil rig
exploded in the Gulf of Mexico in April 2010, the Committee
monitored the public and private sector response to what was to
become the largest oil spill in the Nation's history. The
Committee made a number of recommendations for how to prevent a
similar spill in the future.
HSGAC continued its efforts to expose waste, fraud, and
abuse, in part, through oversight of acquisition and
procurement and the government's use of contractors to carry
out ``inherently'' governmental work. The Committee worked with
the Administration to implement contracting reforms passed in
the previous Congress as part of the FY2009 National Defense
Authorization Act. HSGAC also learned, through staff inquiry,
that DHS's workforce was almost twice the size as had been
thought because of the proliferation of contractors, meaning
DHS has almost 400,000 employees rather than the previously
accepted number of 270,000. The Committee continued its decade
long work monitoring Defense Department contracting,
particularly as it pertained to the wars in Iraq and
Afghanistan. At the Chairman's request, the Government
Accountability Office (GAO) investigated the Defense Contract
Audit Agency (DCAA), finding major mismanagement and faulty
auditing. The GAO reports helped spur a change in leadership at
the top of the agency.
On top of the Committee's oversight responsibilities,
Chairman Lieberman and Senator Collins moved a number of bills
out of Committee to improve government performance across a
range of homeland security and governmental affairs issues.
Among the measures they introduced and marked up were
comprehensive, bipartisan cybersecurity legislation to protect
the Nation's most critical infrastructures from hostile attack;
legislation to reorganize the way the government secures
laboratories working with the most dangerous biological
pathogens; and legislation to reform the little known DHS
agency in charge of protecting workers and visitors at 9,000
Federal buildings nationwide, the Federal Protective Service
(FPS).
Chairman Lieberman continued his strong advocacy for
Federal workers through Committee passage of a bill to provide
benefits for the domestic partners of Federal employees and a
number of provisions in the FY2010 National Defense
Authorization Act to ensure that Federal employees and retirees
are treated fairly.
The Chairman also advocated on behalf of the citizens of
Connecticut, particularly through port, transit, and first
responder grants.
In total, the Committee reported 60 bills out of Committee
in the 111th Congress (not including postal naming bills or
nominations)--18 of which became law. The Committee also
reported out 42 nominations, all of which were confirmed by the
full Senate.
HOMELAND SECURITY
Throughout 2009-2010, the Department of Homeland Security
continued to improve the security of the American people even
as it struggled to manage its vast portfolio and its equally
vast workforce, which turned out to be twice as large as once
thought due to the high number of contractors on payroll. A
number of major procurement contracts such as SBInet continued
to be mismanaged in 2009-2010. And despite some high-profile
successes--with the help of law enforcement--in tracking down
terrorist plots, at least two terrorists--Nidal Hasan and Umar
Abdulmutallab--slipped through our homeland defenses. In 2009-
2010, the phenomenon of homegrown terrorism was no longer a
theory but the new face of terrorism in the United States.
A. Violent Islamist Extremists, Homegrown Terror, and Countertorrorism
In the 111th Congress, the Committee's 4-year-long
investigation into violent Islamist extremism shifted
dramatically from a theoretical, law enforcement discussion to
an examination of actual homegrown attacks and failed attacks.
The Committee began the year with a hearing January 8,
2009, on lessons to be learned from the November 2008 terrorist
attack on a number of soft targets in Mumbai. Department of
Homeland Security Under Secretary for Intelligence and Analysis
Charlie Allen said disrupted plots often resurface, as appeared
to be the case with the Mumbai attack, and the challenges of
disrupting plots to soft targets, such as hotels, in the United
States are enormous. The FBI's Donald Van Duyn remarked on the
cutting edge technologies the Mumbai terrorists used to
communicate with one another. And New York Police Commissioner
Ray Kelly said government officials must educate the owners and
operators of potential private sector targets that could be
attacked.
A second hearing was held on January 28, 2009, to
specifically examine how the private sector can protect itself
from terrorist attacks. ``The Mumbai terrorists attacked
hotels, an outdoor cafe, a Jewish community center and a movie
theater--places that are not traditionally subject to a high
level of security,'' Chairman Lieberman said. ``The protection
of these kinds of soft targets is a challenge in an open
society as--by definition--they are facilities that must be
easily accessible to the general public and are often used by
large number of people at one time. But that does not mean that
we can leave soft targets unguarded.''
The Committee's third hearing on violent Islamist
extremism, on March 11, 2009, focused on the radicalization and
recruitment of young Somali-Americans by an al-Qaeda linked,
Somali organization called al-Shabaab. The recruitment of these
young men--mostly from Minneapolis--posed the troubling specter
that the young men could travel back and forth between the U.S.
and Somalia unnoticed because they were American citizens and
had American passports. ``This is probably the most significant
case of homegrown American terrorism that we have found yet,''
Chairman Lieberman said.
Two men were indicted in Minneapolis on July 14, 2009, in
connection with the recruitments. The Chairman said the case
was ``a wakeup warning that violent Islamist extremism is now
spreading in America.'' On November 23, 2009, the Chairman
commended the FBI for bringing terrorism charges against eight
people in the disappearance of the young men, bringing to 14
the total number of people arrested or charged in the case. And
on August 5, 2010, the Chairman praised the FBI for arresting
two people and charging 14 more with material support for al-
Shabaab.
Events over the next several months bore out the
Committee's longstanding investigation into homegrown
terrorism. On May 21, 2009, Najibullah Zazi, a legal permanent
resident, was arrested for attempting a terror attack on the
New York subway system. The Senator called the intelligence and
police work that snagged Najibullah Zazi, ``brilliant'' and
warned we must be ``vigilant'' for the radicalization and
recruitment of people within the United States. On June 1,
2009, an Army recruiter in Little Rock, Arkansas, was shot and
killed by alleged terrorist Carlos Bledsoe (aka ``Abdulhakim
Mujahid Muhammad''), who indicated he had been trained in
Yemen. The Senator said the tragedy ``illustrates the very real
dangers posed by homegrown terrorism in the United States.''
In August and September 2009, the FBI announced the arrests
of several men in Colorado, North Carolina, Texas, and Illinois
who were involved in four separate, planned attacks. On
September 30, the Committee convened its annual terrorism
threat hearing with testimony from DHS, the FBI, and the
National Counterterrorism Center (NCTC). All of these cases,
the Senator said at the hearing, ``realize our worst fears
about homegrown Islamist terrorist attacks in America.''
Those worst fears were realized again on November 5, 2009,
when Army Major Hasan shouted ``Allahu Akbar'' before he shot
and killed 13 people at the Fort Hood Army base and wounded 43
others--the worst case of terrorism within U.S. borders since
9/11. (See below for details on the Committee's Fort Hood
investigation).
Capping off a year of increased homegrown and foreign-
influenced terrorist incidents, on Christmas Day 2009, Nigerian
Umar Abdulmutallab failed to ignite explosives smuggled through
security in his underwear on a Northwest Airlines plane that
left Amsterdam bound for Detroit, becoming the third terrorist
to slip through the layered and international homeland security
and intelligence apparatus of the U.S. Government. Fortunately,
he was unable to light his explosives, and passengers
restrained him until the plan landed, thwarting his planned
attack. Alarmingly, as it turned out, Umar Abdulmutallab's
father had warned U.S. embassy officials in Nigeria about his
son's radicalization. The young man's name was placed on a
broad terrorist database but not the more selective watch list
checked by airport officials, and so he managed to secure a
visa to visit America.
The Chairman publicly stated on December 28, 2009, that he
was ``troubled by several aspects of this case, including how
the suspect escaped the attention of the State Department and
law enforcers'' to obtain a travel visa even though his father
had alerted authorities about his son's extremist behavior.
The Chairman and Senator Collins subsequently wrote a
letter dated January 25, 2010, to the Attorney General and the
President's Assistant for Homeland Security and
Counterterrorism, urging the Administration to move Umar
Abdulmutallab from civilian to military custody as they
considered him an enemy combatant.
Terrorist incidents continued to pile up, and American
lives were spared again and again in part because of the
terrorists' incompetence. On May 1, 2010, an alert street
peddler noticed a smoking SUV in Times Square and alerted
police. The Chairman issued a statement May 3 praising the New
York City police, the vendor who ``saw something and said
something,'' and the people of New York, who remained calm
throughout the ordeal. The next day, Customs and Border
Prevention agents plucked Faisal Shazhad off a plane preparing
to leave JFK Airport for Dubai. He was charged with terrorism
related crimes, pleaded guilty, and in October 2010 was
sentenced to life in prison.
The Committee held a previously scheduled hearing on a
separate topic--banning guns sales to suspected terrorists--on
May 5, 2010. New York City Mayor Michael Bloomberg and Police
Chief Ray Kelly testified. ``Our growing understanding of the
plot to attack Times Square reminds us that Islamist extremists
have declared war on America,'' the Chairman said. ``In fact,
they have attempted attacks on Americans more than a dozen
times in just the last year. The only two since 9/11 that have
been carried out and taken American lives were with firearms.''
Those two examples were Nidal Hasan and Carlos Bledsoe.
In observance of the ninth anniversary of the 2001 terror
attacks, the Chairman issued a statement paying tribute to the
more than 3,000 people who lost their lives on September 11,
2001, decried violent Islamist extremism, and called for unity
of effort to defeat terrorism. ``As we remember . . . those who
lost their lives that day, let us do so with a renewed sense of
commitment, determination, and unity to defeat the terrorists
who struck our homeland and whose totalitarian ideology
represents a threat to all of humanity.''
The same day, the Senator issued a statement deploring the
declaration of a fringe Florida preacher to turn September 11
into an ``International Burn a Quran Day'' as ``inconsistent
with American values'' and dangerous to American troops in Iraq
and Afghanistan.
The Committee held its annual terrorist threat hearing on
September 22, 2010, under far different circumstances than it
had a year earlier. Clearly, the threat had changed in that
time. The Chairman made three observations: An increase in the
pace of homegrown and foreign-based terrorism had occurred;
more Americans were being recruited and joining the leadership
ranks of al-Qaeda and affiliated groups; and the Internet is
the preferred way for Americans to self radicalize and for
terrorists to indoctrinate and recruit.
B. Fort Hood Investigation
On November 5, 2009, the worst terrorist attack on the
United States since 9/11 occurred on the Army base in Fort
Hood, Texas--costing 13 employees of the Department of Defense
(DOD) their lives. Twelve of the victims were soldiers
preparing for deployment to Iraq. The shooter was an Army
major, an American citizen, and a Muslim who had become
radicalized with the help of the notorious radical Islamist
cleric Anwar al-Awlaki.
Three days later, on Fox News Sunday, Chairman Lieberman
announced the Committee would investigate the shootings and,
the following day, the Chairman and Senator Collins vowed the
Committee in no way would interfere with the criminal
investigation. In a public statement, the Senators specified
that they would look at ``whether the government missed warning
signs that should have led to expulsion, and what lessons we
can learn to prevent such future attacks.''
Pressure mounted over the following week from those who
thought the Administration should investigate without Congress'
intrusion. To quell these concerns, the Chairman and Senator
Collins issued an unusual Saturday, November 14 statement
reinforcing their intent to pursue an inquiry separate from the
criminal investigation. In doing so, they repeated the
President's own words, when he said in his weekly radio address
that Congress should investigate the tragedy. The Chairman and
Senator Collins responded in kind: ``We appreciate that [the
President] recognizes Congress' constitutional mandate to
conduct oversight into tragic events such as these and we want
to reiterate that our Committee will conduct a responsible,
apolitical inquiry.''
Four days later on November 18, 2009, the Chairman and
Senator Collins held a press conference to define their
investigatory goals. ``We know violent Islamist extremism is a
threat here in the U.S. and we know the military is a target.''
The Chairman said, ``We will conduct this investigation to
determine what we can do to better protect our military service
personnel and all of our citizens. We will focus on what the
Federal Government knew and what it did concerning Major Hasan
and whether action should have been taken to prevent him from
carrying out his attack.''
The next day, November 19, 2009, the Committee held its
first and only hearing in the Fort Hood inquiry. Four of the
five witnesses--a retired Army general, former homeland
security officials, a New York Police Department official, and
a think tank expert--agreed the shooting was a terrorist
attack. The fifth witness declined to comment because of the
ongoing criminal investigation. ``We look at the Fort Hood
murders not as an isolated event but as part of a larger
pattern of homegrown terrorism that has emerged over the past
several years,'' the Chairman said. ``Our purpose is to
determine whether that attack could have been prevented,
whether the Federal agencies and employees involved missed
signals or failed to connect the dots in a way that enabled
Major Hasan to carry out his deadly plan. If we find such
errors or negligence, we will make recommendations to
guarantee, as best we can, that they never occur again.''
On December 15, after a month of foot dragging by the
Departments of Defense (DOD) and Justice (DOJ) over sharing
documents and witnesses needed for the Committee's
investigation, the Chairman and Senator Collins received a
closed-door briefing from DOD officials on Army personnel and
information-sharing policies. ``The Administration has taken
its time in responding to our requests for documents and
witnesses but is moving in the right direction,'' the Chairman
said, calling the dispute a ``classic struggle between the
Executive and Legislative Branches.''
Justice Department officials came to the Hill to give the
Chairman and Senator Collins a closed-door briefing the
following week, on December 22, 2009. The Chairman said that
while the Administration was ``slowly responding to our
information requests,'' he urged greater speed so that Congress
could fulfill its constitutional duty.
On January 13, 2010, in a letter to DOD Secretary Robert
Gates, the Chairman and Senator Collins issued preliminary
policy recommendations calling for the prohibition of violent
Islamist extremism in the military and training service members
to recognize, address, and report Islamist extremism.
The DOD released its internal review of the Fort Hood
shooting 2 days later, on January 15, 2010. In response, the
Chairman said he was disappointed the review ``does not
adequately recognize the specific threat posed by violent
Islamist extremism to our military.'' The omission, Chairman
Lieberman said, underscored the need for the Committee's
investigation.
Throughout the spring of 2010, the Committee battled to
obtain the Administration's cooperation. A total of six letters
requesting documents were sent--four to DOD and two to DOJ--but
the Administration stood firm. Sharing the requested documents
and allowing witnesses to testify, it argued, would harm the
prosecution of Major Hasan. On April 15, 2010, the Chairman and
Senator Collins ratcheted up the pressure by announcing they
had prepared subpoenas and would issue them on April 19, 2010,
if they did not receive the information and witnesses they
sought. The following day, the news media reported that Defense
Secretary Robert Gates said the Pentagon would give Congress
information as long as it did not jeopardize the prosecution.
The Senators issued a press release declaring that the
Administration's refusal to provide the information they sought
was inconsistent with the standard articulated by Secretary
Gates.
On April 19, 2010, after a 5-month Committee effort to
obtain the information it needed for its investigation,
officials at DOD and DOJ were served with subpoenas. A
Committee vote followed by a full Senate vote would be needed
to enforce them.
A week later, on April 27, 2010, the Chairman and Senator
Collins received some of the documents they had requested but
insisted that if the Administration was to comply with the
subpoenas, it must turn over many more documents, as well as
witnesses.
At a Committee business meeting the next day, the Chairman
told the full Committee ``it would be a very bad precedent'' to
allow the Administration to deny the Committee the information
it had requested. ``That would haunt Congress's future ability
to conduct oversight of the Executive Branch,'' he said. ``If
we cannot reach an accommodation, Senator Collins and I will
return to the full Committee for your support to enforce the
subpoenas and then go to the full Senate.''
The Committee reinforced its case with a statement April
29, 2010, from a leading, impartial expert on military
justice--Eugene R. Fidell, President of the National Institute
of Military Justice and a senior research scholar at Yale Law
School--who declared that providing the sought-after witnesses
and documents would pose no problem at all for Major Hasan's
criminal prosecution.
Ultimately, the Committee did not vote on the subpoenas as
the first step toward enforcing them. Instead, the Committee
reached an accommodation with DOD and DOJ, receiving the
information needed to conduct its investigation.
C. IRTPA Five Years Later/Intelligence
On December 9, 2009, the Committee held the first of what
was intended to be a series of hearings examining the impact of
the Intelligence Reform and Terrorist Prevention Act of 2004
(IRTPA) 5 years after its enactment. The failed terrorist
attack on Christmas Day turned those hearings into an urgent
examination of how IRTPA's goals still remain to be realized.
The hearing focused on the status of Federal programs
designed to prevent terrorists from entering the United States
such as US-Visit, the Visa Waiver Program, and terrorist watch
lists--programs created either by IRTPA or the second 9/11
Commission recommendations implementation bill of 2007. The
Chairman indicated several weaknesses in travel security--such
as the security of primary source documents like birth
certificates, agreements to share biometric information and
watch list information with 35 visa waiver program countries,
and implementation of the US-Visit biometric exit program.
After Umar Abdulmutallab was arrested on Christmas Day, the
IRTPA hearings changed in tone--it was now clear that aspects
of the law were not working as intended--and expanded to
include interagency cooperation and information sharing between
DHS, DOJ, the State Department (DOS), and the Director of
National Intelligence (DNI). The Committee's oversight also
focused on the extent to which the DNI has or has not emerged
as the government's chief intelligence officer and whether
additional authorities for the DNI were needed to underscore
the DNI's leadership over the intelligence community to ensure
it operates effectively.
The Chairman and Senator Collins announced they would
convene a January hearing to examine the layers of security
meant to protect airline passengers from terrorist attacks--the
layers that Umar Abdulmutallab successfully evaded--and how to
strengthen them. On January 8, 2010, they announced DHS
Secretary Napolitano, DNI Dennis Blair and NCTC Director
Michael Leiter would testify at a hearing 12 days later. Each
witness conceded a series of mistakes at that hearing in
piecing together the evidence that might have prevented Umar
Abdulmutallab from boarding the plane in Amsterdam--such as the
failure to put him on a watch list after his father reported
suspicions, a failure to analyze and comprehend intelligence
that had been gathered about the young man, a failure to pull
his visa, and a failure to detect the explosives he carried.
The hearing further revealed that DOJ had not consulted any
other Federal office on interrogation of the suspect or whether
to try him in a civilian or military court. Director Leiter
revealed the substandard computer capabilities of his agency,
which although it had access to all intelligence agency
databases, could not conduct a computer search across all of
those databases.
The third hearing in the series took place on January 26,
2010, with the authors of the 9/11 Commission report as
witnesses. Tom Kean and Lee Hamilton said what everyone knew to
be true--the failure to disrupt the Fort Hood and December 25
attacks was the result of continued tensions among the
intelligence community's component agencies. For the DNI to
succeed, they said, the President must provide strong support.
The Chairman noted that the government ``must better organize
our intelligence gathering and analysis efforts so crucial
information can be mined more quickly from this vast mountain
of data we build. The President also needs to clarify the
primacy of the Director of National Intelligence, who has an
immensely difficult job integrating 16 intelligence agencies.''
The fourth hearing in the series, on March 10, 2010,
examined the terrorist watch lists and airport screening. The
Chairman said anyone with ties to terrorist activities that is
placed on the Terrorist Screening Database (TSDB), a larger
list than the no-fly list, should receive secondary screening.
He also said that the U.S. should require identity verification
documents from travelers bound for the U.S. at least 24 hours
before flight time. ``All the dots were on the table'' the
Chairman said in reference to the intelligence on the Christmas
Day bomber. ``But our government was unable to connect them--to
separate this information out of the enormous mass of
information the government collects and shares so that this
terrorist could be stopped before he acted.''
The fifth hearing in the series, on March 17, 2010, took a
closer look at the problems of intelligence community
integration, including institutional resistance to the DNI,
uncertainty about the DNI's role, and competing national
priorities that undermine support for reform. Witnesses
testified that NCTC's efforts to develop plans that integrate
military, diplomatic, law enforcement, and economic
capabilities across the government have been stymied by
department failures to participate meaningfully in NCTC
planning activity. And legal, policy, and technology challenges
to intelligence analysis remain unresolved 9 years after 9/11.
``The seemingly endless argument over authorities undermines
the unit pride that all agencies in the intelligence community
have,'' said former Central Intelligence Agency (CIA) General
Counsel Jeffrey Smith.
The sixth and last hearing of the series took place on
April 21, 2010, and focused on visa security. The Chairman
urged the State Department to expand the Visa Security Program
(VSP) beyond the 14 of 57 high-risk consular posts around the
globe that have VSP offices. ``Securing the homeland is now a
global enterprise,'' the Chairman said ``It begins well before
people come to the United States.'' The Homeland Security and
State Departments ``must work together to ensure that
prospective travelers are fully vetted before boarding a plane
bound for this country.''
Abruptly, on May 21, 2010, DNI Blair resigned. The Chairman
and Senator Collins issued a strong statement calling
intelligence reform a ``work in progress.'' The terrorist
attacks at Fort Hood and the failed attacks on Christmas Day
and in Times Square ``illustrate a need for more effective
coordination of our counterterrorism efforts . . . while the
DNI has strong authorities, those authorities may need to be
strengthened--particularly in the areas of intelligence agency
budget and the selection of the intelligence leaders. Also, any
perceived ambiguities regarding the DNI's authorities must be
resolved. . . . We also think we should make crystal clear that
the DNI has authority over the CIA and over elements of the
intelligence community within the Department of Defense and
other Cabinet agencies.''
1. National Security
The committee developed a bipartisan legislative proposal
(Senators Lieberman, Collins, and Voinovich) to strengthen
national security by improving the efficiency of how agencies
coordinate. Specifically, the legislation institutes a new
human capital policy that requires that homeland and national
security personnel do rotations in other departments in order
to receive promotions to top national security positions in
their home departments. This policy is similar to human capital
policies used routinely by corporations that require their
workers to serve in positions across different divisions in
order to be able to assume corporate leadership positions.
Senator Lieberman held a hearing February 12, 2009, to
examine whether the Homeland Security Council and the National
Security Council, both located in the Executive Office of the
President, should be merged. The Senator said he was open to a
merger but worried that the interests of homeland security
would be overshadowed by the interests of national security.
One of the witnesses, Tom Ridge, who was the first Secretary of
Homeland Security, strongly opposed the merger. Two other
witnesses were in favor, and the fourth witness, Frances Fragos
Townsend, who had been Assistant to the President for Homeland
Security and Counterterrorism gave no opinion but outlined the
pros and cons of each. Three months later, the White House
restructured the homeland and national security councils but
preserved each council as a separate body and retained access
to the President by the Assistant to the President for Homeland
Security and Counterterrorism. Senator Lieberman issued a
statement expressing his approval of the reorganization.
Senator Lieberman and a bipartisan bicameral group of
lawmakers asked the GAO to examine the coordination between the
Northern Command and the civilian agencies it supports with
regard to homeland security. GAO's report, released on
September 11, 2009, found inconsistent coordination when
exercising in collaboration with the State, local, and tribal
governments that the command was created to support. GAO said
that Northern Command (NORTHCOM) lacks sufficient experience in
dealing with States; still lacks understanding of individual
State emergency management structures; does not consistently
involve States in major command readiness endeavors; and needed
to improve its ability to share key information such as lessons
learned and other after action reports.
D. Cybersecurity
1. Protecting Cyberspace as a National Asset Act, S. 3480
While the Committee has a long history of overseeing cyber
security, the 111th Congress saw development of major
bipartisan legislation to protect the cyber networks of the
Nation's most critical infrastructures, in both the private and
public sectors. Senate Majority Leader Harry Reid, D-Nev., said
that cybersecurity was a critically important issue and he
vowed to move legislation to close the Nation's vulnerability
in the 111th Congress. Unfortunately, in part due to Senator
Harry Reid's difficult re-election campaign, time ran out
before the Senate could vote on the legislation.
The first cybersecurity hearing of the new Congress was
held on April 28, 2009, in the context of an ongoing
Administration review of its cyber security structure and
policies. The Chairman and Senator Collins used the hearing as
a platform from which to announce they would draft legislation.
A second hearing was held September 14, 2009, on the epidemic
of cybercrime in the private sector. The day before, the
Chairman and Senator Collins had issued a press release
announcing the hearing. ``The internet is now a global asset--a
new strategic high ground--that simply must be secured just as
any military commander would seize and control the high ground
of a battle field,'' the Chairman said. ``But unlike a
battlefield, securing cyberspace is much more complicated to do
since the Internet is an open, public entity. Security cannot
be achieved by the government alone. Public-private partnership
is essential. Together, business, government, law enforcement,
and our foreign allies must partner to mitigate these attacks
and bring these criminals to justice.''
On October 30, 2009, Chairman Lieberman delivered a speech
before the Chamber of Commerce Cyber Security Task Force
outlining the principles of his developing legislation. ``There
would be a Senate confirmed cyber security coordinator in the
White House,'' he said, ``as well as sufficient authority and
personnel for DHS to monitor Federal civilian networks and
defends against malicious traffic; a risk-based approach,
established by DHS, to secure the most critical infrastructure;
a supply chain that emphasized security; and incentives to hire
the best and the brightest cybersecurity employees.''
The Chairman and Senator Collins, along with Senator Tom
Carper, D-Del., introduced the Protecting Cyberspace as a
National Asset Act, S. 3480, and unveiled it at a press
conference June 10, 2010. ``The need for legislation is obvious
and urgent,'' the Chairman said. The bill ``is designed to
bring together the disjointed efforts of multiple Federal
agencies and departments to prevent cyber theft, intrusion, and
attacks across the Federal Government and the private sector,''
Senator Lieberman continued. ``Our economic security, national
security, and public safety are now all at risk from new kinds
of enemies--cyber warriors, cyber spies, cyber terrorists, and
cyber criminals.'' The bill would secure the Nation's most
critical infrastructure--the financial system, electrical grid,
and water treatment facilities--against cyber attack, and
enhance and improve the security of Federal Government
networks. By streamlining, coordinating, and improving the
Federal Government's cyber security efforts, the bill would
lead to cost savings and improved security.
On June 15, 2010, the Committee held its third
cybersecurity hearing, this time specifically on the
legislation just introduced. ``We need to reorient our thinking
about the risks inherent to our reliance on the Internet and
cyberspace,'' the Chairman said in his opening statement. ``A
sophisticated attacker could cripple our entire financial
system, take down our electric grid or cause physical
devastation equal to major conventional warfare.''
The following day, prominent House members--Jane Harman, D-
Calif., and Peter King, R-N.Y.--said they would introduce
companion cybersecurity legislation in the House.
On June 24, 2010, the Committee reported the legislation
out by unanimous voice vote with no amendments, other than the
managers' substitute, which consisted of technical changes.
Meanwhile, Senators Lieberman, Collins, and Carper launched
an aggressive campaign on behalf of the bill, initially to
counteract an erroneous report by CNET, which said the bill
called for an Internet ``kill switch.'' On June 23, 2010, the
Committee issued a ``Myth v. Reality'' document about the bill.
On July 1, the Senators announced support from Microsoft Corp.
and others for the legislation. On July 2, they responded, in a
strongly written letter to Cisco, IBM, and Oracle, to unfounded
criticisms of the bill. On July 9, the Senators outlined
numerous ways in which the bill would strengthen privacy rights
and civil liberties. On July 12, they announced support for the
legislation from a technology advocacy group, Online Trust
Alliance. And on July 16, they announced support from the
software firm SAP.
Throughout the month of July, staff negotiated with
Commerce Committee staff to merge the Lieberman-Collins-Carper
bill with a bill by Senators Jay Rockefeller, D-W.Va., and
Olympia Snowe, R-Me. The merged bill was then sent to Senator
Reid for input from other relevant committees of jurisdiction,
such as the Intelligence Committee and the Judiciary Committee.
2. Electric Grid Security
On April 30, 2009, Chairman Lieberman introduced
legislation to increase the security of the electric grid. The
Critical Electric Infrastructure Protection Act, S. 946, would
help reduce the susceptibility of the electric grid to cyber
attack by giving the Federal Energy Regulatory Commission
additional authority to develop a fix to vulnerabilities
detected and reported by DHS.
3. Google Security Breach
On January 13, 2010, Chairman Lieberman said that Google
had ``provided an enormous services to Internet users'' by
announcing that the Gmail accounts of Chinese dissidents were
breached from inside China and that 20 other companies also
were attacked. ``As a nation, and as individuals, we are
vulnerable to cyber attack from hackers, predators, foreign
competitors, and terrorists who would compromise, steal, or
cripple our cyber systems and the information that courses
through them. Educating Internet users of these threats and
vulnerabilities is key to thwarting such attacks.''
4. Declassification of Cybersecurity Plans
On March 3, 2010, the Chairman praised the Administration
for announcing it would declassify portions of the
Comprehensive National Cybersecurity Initiative (CNCI), a
multi-agency, 12-step plan primarily focused on securing the
Federal Government's cybersecurity networks and systems. In
2008, the Chairman had asked that more information about the
initiative be made public to help Congress and the public
better understand it.
E. Biosecurity
1. H1N1 Influenza Pandemic Response
The Federal response to the H1N1 virus in 2009 tested DHS's
ability to contain a biological emergency--albeit an emergency
for which there was forewarning. DHS met the test well in the
early stages of the virus but failed to deliver enough vaccine
in time to prevent the worst of the outbreak. The failure was
primarily due to outdated vaccine manufacturing technology and
overreliance on foreign vaccine suppliers.
On April 29, 2009--within days of reports of a new
influenza outbreak in Mexico and Southern United States--the
Committee held its first of four hearings to examine the
Federal response to the emergence and spread of the H1N1
influenza. ``The Federal response . . . has been strong and
reassuring,'' the Chairman said. ``But we are in the midst of a
grave public health emergency whose course is not clear. We
must remain on alert, take all possible preventative actions,
and prepare for an escalation of the outbreak.''
Those words turned out to be prophetic. As spring turned to
summer and summer turned to autumn, the pre-flu season began to
see the reemergence of H1N1 and an escalation of cases.
Eventually, world health officials declared a pandemic.
By the end of September, over 1 million people had become
sick with H1N1 and the flu season had not begun yet. In
Connecticut, 2,000 cases had been identified and nine people
had died. The Chairman called a field hearing September 21,
2009, in Hartford, Conn., to examine preparations being taken
by State public and private health officials to combat H1N1.
The Chairman concluded ``the State appears to be on track to
stay out in front of a broad H1N1 outbreak.''
A month later, on October 21, 2009, when the Committee held
its third hearing with witnesses from DHS and the Departments
of Health and Human Services (HHS) and Education, the mood was
less sanguine. HHS Secretary Kathleen Sebelius reassured the
Committee that the H1N1 vaccine developed over the summer was
safe for children and adults. And while 120-160 million
vaccines had been promised by the end of October, Secretary
Sebelius said that a glitch in manufacturing meant that 28-30
million doses would be available by the end of October and 40
million doses would be available in early November. ``There is
a significant amount of impatience, restlessness, and just
plain anxiety out there about the government's ability to deal
with this public health crisis,'' the Chairman said. ``. . . I
am concerned that the flu is spreading so rapidly and with such
intensity, that it may be getting ahead of the public health
system's ability to prevent and respond effectively to it.''
The next week, on October 27, 2009, the Chairman and
Senator Collins wrote to HHS Secretary Sebelius questioning the
Department's vaccine distribution plans, asking why HHS did not
implement a plan based on who needed the vaccine most. ``We are
. . . concerned that HHS lacks the visibility into the
production process of vaccine manufacturers, domestic and
foreign, to provide more accurate and timely information of
such a critical public health asset.''
Three days later, on October 30, 2009, Secretary Sebelius
told the Chairman an additional 100,000 doses of the H1N1
vaccine would be available in Connecticut within days. She also
said she had dispatched aides to a foreign vaccine manufacturer
to determine why production had fallen behind expectations. ``I
share the frustration of the people in Connecticut and across
the country who have been unable to get an H1N1 vaccine for
themselves of their children, even though they are at high risk
for contracting the disease,'' Senator Lieberman said.
On November 16, 2009, the Chairman and Senator Collins
wrote again to Secretary Sebelius saying they were dissatisfied
with her response to their previous letter about vaccine
distribution plans that were not transparent in their
implementation or clearly focused on those most at risk. The
next day, the Committee convened its fourth hearing to get an
update on the H1N1 vaccine's availability. ``With so many
eligible Americans still unable to get the vaccine, a good
situation has turned bad,'' the Chairman said. ``I worry that
we are undermining confidence, generally, in the public health
system, and that people most at risk are not only not getting
the vaccine but have stopped trying.'' The witnesses conceded
to poor communications leading to mistaken expectations about
vaccine availability.
The Committee pressed for faster emergency approval of
intravenous antiviral medications to care for the sickest of
patients in intensive care units, once clinical studies and
scientific reviews had been completed.
In July 2010, when the House passed H.R. 4899, the Making
Emergency Supplemental Appropriations for FY2010, it contained
a provision to cut $2 billion from the pandemic influenza and
Project BioShield special reserve funds (SRF). On July 22,
2010, Chairman Lieberman and Senators Judd Gregg, R-N.H.,
Richard Durbin, D-Ill., and Richard Burr, R-N.C., wrote to
Senate leaders, Harry Reid, D-Nev., and Mitch McConnell, R-Ky.,
criticizing the cut and asking that the Senate reject it. The
Senate passed the supplemental spending bill with all funds for
pandemic influenza and SRF intact.
The Committee continued to encourage the development of new
recombinant and cell based manufacturing techniques and an
expansion of domestic vaccine manufacturing plants that will
shorten the time needed to deliver sufficient vaccine supplies
to the Nation. The Administration has recently announced new
domestic manufacturing contracts and a plan to modernize the
vaccine development process.
F. Weapons of Mass Destruction
The Committee's work involving the risk of terrorist
attacks using weapons of mass destruction focused both on
nuclear and biological weapons.
After a 4-year Committee investigation into the
Administration's efforts to develop new technology to detect
smuggled nuclear materials in cargo arriving at the Nation's
ports, DHS announced it would end development of its Advanced
Spectroscopic Portal (ASP) monitors for primary cargo screening
because the technology failed to live up to expectations. On
March 1, 2010, Chairman Lieberman issued a statement in
response to a letter he received from Dr. William Hagan, Acting
Director of the Domestic Nuclear Detection Office (DNDO), which
was charged with developing second generation detection
technology. In his letter, Dr. Hagan told the Chairman that
DNDO would still try to develop ASPs for use at secondary
screening sites for cargo containers that had set off alarms in
primary screening.
``The threat of nuclear terrorism cannot be ignored, which
is why I'm an advocate for strategic investments to improve our
defenses against the smuggling of nuclear materials into this
country,'' the Chairman said. ``Thus it is unfortunate that 4
years have been lost on the basic DNDO mission of improving the
Nation's existing system of domestic defenses against a nuclear
terrorist attack. . . . If the Department wants to make future
generations of Americans safer from the threat of a nuclear
terrorist attack, then it needs to start getting better results
from its R&D investments.''
The Committee held it eighth hearing on the ASP program
June 30, 2010. Chairman Lieberman stated that DNDO had failed
to achieve its core mission to coordinate a global nuclear
detection architecture to protect the Nation from nuclear
terrorism and has been slow to improve the domestic layers of
defenses outside of seaports and major land ports of entry.
``Five years into its existence, based on its record, it is
inescapable to conclude that DNDO requires real retooling, and
quickly,'' Senator Lieberman said. The GAO also delivered
testimony that DNDO had failed to develop a strategic plan to
coordinate the work of other agencies to counter the threat of
nuclear terrorism, in part because it was distracted over
several years by efforts to develop the ASP. DHS has deployed
nearly two thirds of the more than 2,100 radiation portals
monitors identified in its deployment plan at established ports
of entry and on the Northern and Southern borders. In addition,
nearly 100 percent of cargo entering seaports and 100 percent
of vehicle traffic on the Southern and Northern borders are
scanned for nuclear material. But cargo coming into the country
by rail from Canada or Mexico is not scanned, only a small
percentage of international air cargo is scanned, and DNDO
still has no plans to scan commercial aviation aircraft
passengers or baggage.
The Chairman called a second hearing on the global nuclear
detection architecture on September 15, 2009, during which GAO
submitted testimony accusing DHS of ``misleading'' Congress on
the status of the Cargo Advanced Automated Radiology Systems
(CAARS) program, intended to detect shielded nuclear material
smuggled through ports of entry. CAARS, like the ASP program,
was eventually abandoned. Some $400 million over 5 years was
spent on CAARS and ASP.
On December 2, 2009, GAO released a report that found that
large, foreign ports were unable to scan anywhere near 100
percent of freight passing through them, as Congress had
required in the Security and Accountability for Every (SAFE)
Port Act of 2006. GAO found that while a majority of cargo
passing through low volume foreign ports was able to be
scanned, no more than 5 percent of freight coming into large
ports was scanned. The SAFE Port Act called for a pilot program
for scanning 100 percent of cargo entering U.S. ports. The
Committee's second bill implementing the 9/11 Commission
recommendations required 100 percent x-ray scanning at all
foreign ports by 2012. But DHS Secretary Napolitano said that
conditions had been met to extend the deadline.
The Committee's work to secure the storage and handling of
the most dangerous bio pathogens was informed by the work of
the Commission on the Prevention of Weapons of Mass Destruction
Proliferation and Terrorism, led by former Senators Bob Graham,
D-Fla., and James Talent, R-Mo., which found that a weapons of
mass destruction (WMD) terrorist attack was more likely than
not to occur by 2013, and that a biological attack was more
likely than a nuclear attack.
On September 8, 2009, the Chairman and Senator Collins
introduced S. 1649, the Weapons of Mass Destruction and
Preparedness Act of 2009 which would have implemented many of
the 9/11 Commission's recommendations. The bill contained
measures to improve the security of laboratories working with
the most dangerous pathogens and to increase the Nation's
preparedness and response capabilities to WMD terrorist
attacks.
The Committee held a hearing September 22, 2009, to discuss
the bill. Senators Graham and Talent were called as witnesses
and told the Committee that bio labs using dangerous pathogens
do not have adequate protections in place to prevent the theft
of those pathogens for use by terrorists in a WMD attack.
``Anyone who thinks we are being overly zealous, imagining
threats that don't really exist, should look to the arrest this
week of two men in the United States, who apparently were
directly tied to al-Qaeda and who apparently were planning an
attack in the New York area,'' Chairman Lieberman said.
``Terrorists want to do us great harm and they know that a
biological weapon could devastate American society.''
The WMD Prevention and Preparedness Act charted a multi-
layered approach--across the full spectrum of prevention,
preparedness, and response--to the biological threat. Among
other provisions, it would have improved biosecurity by
identifying the most dangerous pathogens and requiring DHS to
develop security standards for labs that handle those
pathogens, including risk assessments, personnel reliability
programs, and physical security. The bill also would have
supported a National Bioforensics Analysis Center to identify
the perpetrator of a WMD attack rapidly, and it would have
required communications plans to convey instructions to the
public--including whether to evacuate or shelter in place.
On November 4, 2009, the Committee approved the legislation
as amended by a manager's substitute but action on the measure
stalled due to a lack of attention from the Health, Education,
Labor and Pensions Committee, which had some jurisdiction over
the bill.
Since the Committee reported the bill, the Administration
has taken steps that correspond to provisions in the
legislation, including promulgating an Executive Order to
increase laboratory security for dangerous pathogens, enhancing
forensic capabilities for biological materials, and expanding
the U.S. Postal Service pilot program to deliver antibiotics
during a bioterrorism attack.
G. Border and Travel Security
1. Mexican Border Violence
The horrific violence just south of the Southern border
caused by Mexican drug and human trafficking cartels impelled
the Committee to hold a series of hearings in the 111th
Congress on the state of U.S. border security and the potential
for violence would spill over into U.S. territory. The first
hearing was held March 25, 2009, the day after the Obama
Administration announced a major initiative to combat the
cartels that would eventually see two cabinet secretaries and
the President himself travel to Mexico to meet with President
Felipe Calderon. Chairman Lieberman announced at the hearing
that he would work with his colleagues to increase the number
of Customs and Border Protection (CBP) officers and Immigration
and Customs Enforcement (ICE) investigators to step up
investigations and enforcement actions, and to improve
coordination of the various Federal agencies working at the
Southern border.
Six days later, on March 31, 2009, the Chairman and Senator
Collins announced they would offer an amendment to the FY2010
Budget Resolution to bolster U.S. efforts to fight violence
along the border. The amendment called for an additional $550
million for Federal agents, investigators, and resources to
stem the flow of drugs smuggled north and money and guns
smuggled south. ``The Mexican Drug cartels are a clear and
present danger to the United States that compels us to provide
our Federal law enforcement agencies with additional funding,''
the Chairman said.
On April 1, 2009, the Senate adopted a Lieberman-Collins
amendment to provide $130 million to ICE for 350 investigators;
$20 million for DHS to improve tactical communications for CBP
and ICE; $20 million for CBP to modernize its database to
identify potential criminals at ports of entry; $50 million for
Alcohol, Tobacco and Firearms Agency to hire an additional 150
investigators and 50 inspectors; $10 million for local law
enforcement; $20 million for the Human Smuggling and
Trafficking Center at DHS; $10 million for DHS's Office of
International Affairs; and $30 million to reimburse State and
local law enforcement for their participation in border
actions.
On April 20, 2009, the Committee held its second hearing on
border security in the field, in Phoenix, Ariz. The Chairman
reiterated his call for additional resources to counter the
Mexican cartels. ``DHS is redeploying resources to the border
to step up the detection of firearms and cash bound for Mexico
and drugs and undocumented aliens bound for the United
States,'' Chairman Lieberman said. ``I am determined to expand
the resources available to DHS, the Departments of Justice and
State, and local law enforcement agencies in the border region
to take on the cartels in the most forceful way we can.''
The Chairman also announced plans to push for legislation
to give Federal officials authority to investigate and
confiscate stored value cards, which can hold tens of thousands
of dollars, and are increasingly being used by cartels to
smuggle money earned from the illegal drug sales in the United
States back into Mexico. The cards do not have to be declared
at the border and border officials have little authority to
police them.
The Chairman wrote to the leaders of the Appropriations
Committee on April 29, 2009, outlining his views on border
security funding needs and proposing an additional $275 million
be added to the emergency supplemental spending bill wending
its way through Congress.
On July 24, 2009, Border Patrol Agent Robert Rosas was
murdered at the border. The Chairman conveyed his condolences
and added that the agent's death was a ``grim reminder of the
dangers'' border agents face every day. ``They are on the front
lines, just as our troops are fighting abroad, and they deserve
our appreciation and our support.''
The Committee held its third hearing on border security on
April 20, 2010--examining the troubled SBInet program--a
network of cameras and sensors that was intended to stretch
across 2,000 miles of the Southern border to help secure the
Southwest border. After 5 years and a direct cost of $770
million to taxpayers, the cameras and sensors now cover just a
23-mile test area. ``By any measure, SBInet has been a
failure,'' Chairman Lieberman said, ``A classic example of a
program that was grossly oversold and has badly under-delivered
. . . it should be brought to the point where it works or we
should scrap it.''
Shortly before the hearing, DHS Secretary Janet Napolitano
announced a funding freeze for SBInet pending an internal
review of the program and of other alternative technologies.
At the hearing, the Chairman also announced his support for
sending National Guard troops to the Southern border on a
temporary basis. The violence on the Southern border, the
Chairman said, ``is a homeland security problem.'' When the
Guards were deployed to the border at the end of May, the
Chairman issued a statement in support of the President's
decision.
2. Terrorist Travel
Secure Identification
On July 15, 2009, the Committee held a hearing on the
problems of creating secure identification for American
travelers, one of the recommendations of the 9/11 Commission
report. The REAL ID Act of 2005 contained so many onerous
mandates that States were unable or unwilling to comply by the
law's stated deadlines. The Providing for Additional Security
in States' Identification (PASS ID) Act of 2009, S. 1261, was
intended to help States achieve the goals of creating national
identification security standards. ``We cannot ignore the fact
that legislatures of 13 States have passed laws prohibiting
their States from complying with REAL ID as it presently
stands,'' the Chairman said. ``We must work with States to help
them create secure identification documents while still
protecting privacy concerns and ensuring that States can
comply.'' The PASS Act was marked up and ordered reported out
of Committee on July 29, 2009.
Electronic Travel Authorization
The Committee's oversight of border security also included
monitoring the Electronic System of Travel Authorization
(ESTA), which was intended to track terrorists attempting to
enter the United States from visa waiver countries. On January
13, 2009, Chairman Lieberman chastised DHS for trying to expand
the number of countries whose citizens may enter the United
States without a visa when the system was not yet doing what it
was supposed to do for those 35 countries already in the
program.
Traveler Enforcement Compliance System
On March 23, 2010, Chairman Lieberman and Senator Collins
pressed DHS Secretary Janet Napolitano on TECS modernization
efforts. In a letter to the Secretary, the Senators pointed out
that TECS is ``the backbone for recording, managing, and
maintaining law enforcement actions taken by Customs and Border
Protection (CBP) and Immigration and Customs Enforcement (ICE).
TECS is a critical component of our government's efforts to
stop terrorists from traveling. . . . Expanded far beyond its
original scope, TECS is in critical need of modernization.''
The Senators asked for answers to six key questions.
TSA/U.S. Marshals
On December 8, 2009, the media reported that Transportation
Security Administration (TSA) managers had posted TSA's
Standard Operating Procedure Manual on the Internet. Chairman
Lieberman issued a rebuke, saying the posting of the manual
``is an embarrassing mistake that calls into question the
judgment of agency managers. A security document, redacted or
not, is not the type of document we want to share with the
world. That it was incompetently redacted only compounds the
error. TSA must swiftly complete its investigation into this
incident, institute better controls over what it posts online,
and strengthen its security procedures to make sure this
incident has not compromised the Nation's aviations security.''
On August 19, 2010, the Chairman, Senator Collins, and four
other senators sent a letter to U.S. Marshals Service Director
John Clark asking for a full explanation of why the Service had
been storing images produced from whole body scanning machines
taken at a U.S. Courthouse in Orlando, Fla., from February
through July 2010. In addition, they asked the Service to
identify other locations where scans may have been stored from
other whole body imaging technology.
Air Cargo
On November 16, 2010, The Committee held a hearing titled
``Closing the Gaps in Air Cargo Security,'' to determine
Homeland Security officials' ability to secure air cargo
adequately in the aftermath of a shipment of explosive
materials from Yemen aboard cargo and passenger airplanes bound
for the United States.
Chairman Lieberman pressed the witnesses to obtain
identifying information for air cargo bound for the United
States early in the shipping process so that DHS can target
high-risk cargo more effectively. The Chairman voiced support
for the Transportation Security Administration's (TSA) use of
Advanced Imaging Technology (AIT) and body pat downs on air
passengers. TSA's failure to explain the need for these new
procedures to the traveling public, the Senator suggested, may
have led to a recent outcry about their intrusiveness.
``Shoe bombers. Liquid bombers. Underwear bombers. Again
and again and again, terrorists have been seeking ways to blow
up an airplane,'' Senator Lieberman said. ``In the most recent
attempt, terrorists hid bombs inside the toner cartridges of
printers and sent them to the United States as air cargo. . . .
We need to anticipate the terrorists' next move, not just react
to the last one.''
On the new passenger security practices, the Chairman said,
``Unfortunately, these are the times in which we live. We have
to do everything we can to protect the traveling public. What
you are doing with Advanced Imaging Technology and the pat down
is very difficult but it is necessary for the security of the
American public.''
H. Emergency Preparedness and Response
1. FEMA
Following passage of the Post-Katrina Emergency Management
Reform Act of 2006 to restructure the Federal Emergency
Management Agency (FEMA) so that for the first time it would be
prepared for not just a disaster, but a catastrophe, Senator
Lieberman engaged in close oversight of the agency to ensure
the Post-Katrina Act was implemented.
First and foremost, the Post-Katrina Act kept FEMA in DHS
where it was core to the Department's disaster response and
recovery efforts. Nevertheless, a contingent nostalgic for the
Clinton era FEMA under James Lee Witt sought to strip the
agency from DHS and restore its independence, which ended in
2003 when it was folded into DHS. On February 17, 2009, the
Chairman welcomed support for keeping FEMA in DHS when a new
DHS Inspector General report concluded that FEMA should remain
where it is. Chairman Lieberman also announced that eight
groups representing more than 1.7 million first responders
supported keeping FEMA in DHS. On April 22, 2009, during the
HSGAC confirmation hearing for FEMA Administrator, nominee
Craig Fugate agreed FEMA should stay within DHS. Finally, on
May 13, 2009, the Chairman thanked President Obama for voicing
his opinion that FEMA should remain in DHS, putting to rest
once and for all the questions and debates about the agency's
placement (even though DHS Secretary Napolitano had announced
previously that the Administration had no plans to strip FEMA
out of DHS.)
On March 17, 2009, the Chairman laid out his DHS budget
priorities in his annual letter to the Chairman and the Ranking
Member of the Budget Committee, advocating that funding for
homeland security grants be maintained at levels no lower than
FY2009. The Senator said FEMA's budget should be increased by
$125 million over FY2009 appropriated levels, Congress should
authorize $220 million in FY2010 for the Pre-Disaster
Mitigation Grant Program, and funding should be increased
substantially for the Emergency Food and Shelter program given
the recession that was gripping the country.
When President Obama released his FY2010 budget on May 7,
2009, Chairman Lieberman criticized the flat funding for FEMA's
operations budget as counterproductive to FEMA's steady
transformation into an agency capable of responding to
catastrophes.
On May 20, 2009, Chairman Lieberman wrote to the Chairman
and Ranking Member of the Appropriations Homeland Security
Subcommittee to make the case for increased funding for FEMA so
it could continue its transformation into an agency capable of
responding to a catastrophe.
On July 20, 2009, Chairman Lieberman and Senator Mary
Landrieu, D-La., announced the release of four new GAO reports
they had requested detailing problems with Post-Katrina
recovery efforts. Among the problems: Slow distribution of
Federal funds, barriers to receiving adequate health care, and
poorly coordinated case management programs. ``We must continue
to fight for more effective programs to help those in need,''
the Chairman said. Staff, meanwhile, was working on draft
legislation to improve disaster recovery programs and the
administration of both disaster response and recovery
operations.
On July 23, 2009, the Chairman said he was heartened to
learn from a new GAO report that FEMA had significantly
improved its fraud prevention controls, which were a central
element of the Post-Katrina Act. The Chairman and four other
HSGAC Members responded that same day to a DHS Inspector
General report that FEMA did not respond quickly or effectively
to problems caused by potentially elevated levels of
formaldehyde in trailers housing survivors of Hurricanes
Katrina and Rita. In a letter to Administrator Fugate, the
Senators criticized FEMA for its initial failure to act,
recognized that FEMA had made improvements since the time
period covered by the report, asked FEMA to quickly implement
the report's recommendations, and asked for further
information.
On August 29, 2009, the Chairman and Senator Collins wrote
to Administrator Fugate on the fourth anniversary of Hurricane
Katrina to ask him to continue moving FEMA forward to ensure
that our Nation is capable of helping survivors recover from
disasters.
But days later, Chairman Lieberman criticized FEMA for
failing to have a proper housing strategy in response to a GAO
report requested by Senators Lieberman and Landrieu and made
public September 5, 2009. The report found that the lack of
affordable rental housing has been a major challenge facing
survivors of Hurricanes Katrina and Rita and that a vital
component of disaster recovery must be repair of damaged rental
properties. Lieberman said the Nation must be prepared to
provide more rental housing in the future.
On November 5, 2009, in response to a House Committee vote
supporting stripping FEMA out of DHS, Chairman Lieberman said,
``FEMA is exactly where it belongs . . . at the center of the
Department of Homeland Security where it plays a critical role
in helping to protect Americans where they live and work from
both natural and man-made disasters.''
``Today FEMA is busy building itself into a stronger, more
accountable agency than it was in 2005, with a renewed sense of
mission, greater stature, and more resources. Rather than
splintering apart agencies that work together well, the
President and Secretary Napolitano wisely chose to allow FEMA
to rebuild itself into a world class disaster preparedness and
response agency.''
The second year of the 111th Congress began with negative
critiques of FEMA's disaster recovery capabilities. On March 1,
2010, Chairman Lieberman, Senator Collins, Disaster Recovery
Subcommittee Chairwoman Mary Landrieu, and Senator Lindsey
Graham joined in a letter to Secretary Napolitano complaining
that the agency's disaster recovery plan had many gaps. The
purpose of the Disaster Recovery Framework is to provide
guidance to communities on how the Federal Government will help
them with disaster recovery. Among the problems in the plan
were ambiguities about leadership roles, authorities and
responsibilities; undefined and vague recovery support
functions meant to bring agencies together to focus on
recovery; and a lack of emphasis on mitigation and the
voluntary private sector preparedness certification program.
The following month, on April 14, 2010, the Government
Accountability Office (GAO) released a report urging
improvements in FEMA's Long-Term Community Recovery program,
designed to help communities recovery from disasters. ``Clearly
serious problems are impeding FEMA's ability to help
communities recover from disasters,'' the Chairman said.
``These issues need to be addressed, and I am hopeful that the
National Disaster Recovery Framework, which the Administration
is working on, will do just that. I am encouraged that FEMA has
agreed with GAO's recommendations to improve this vital tool in
helping communities recover and rebuild, and I look forward to
working with them to make that a reality.''
Later that month, Chairman Lieberman and Senator Collins
introduced legislation to authorize an effective, competitive
pre-disaster mitigation grants program. The reauthorization
bill, introduced on April 22, 2010, codified the program that
had been surviving on annual appropriations through DHS since
2008. ``The benefits of working to alleviate damage before it
happens cannot be disputed,'' the Chairman said. ``If
communities are prepared for disasters and have taken measures
to lessen their impact, those communities will survive
disasters with greater resiliency. This program is a tried-and-
true way to save lives, prevent damage, and reduce post-
disaster costs.'' The measure passed the Senate 2 months later
on June 29, 2010.
The Deepwater Horizon oil drilling rig exploded in
spectacular fashion on April 20, 2010, killing 11 people.
Because the disaster was so enormous, the Federal Government
was called on to step in, and its response capabilities were
tested in real-time. The Coast Guard was essential to the
recovery effort. A month later, on May 18, Chairman Lieberman
called a hearing to examine any plans in place to deal with a
major oil spill. He concluded that neither BP nor the Federal
Government were prepared and he called for a hold on future
leases for deep water drilling until better response plans
could be developed. ``As far as I can tell, BP's response
plans, filed and approved by the Federal Government, don't
effectively deal with the enormous accumulation of oil under
water now in the Gulf. And perhaps most important, in the
approved BP response plans, there appears to be total reliance
on the blowout preventer, and no plans filed for what to do to
control and stop a spill if a blowout preventer fails in deep
water, as it did in the current case.''
The oil spill also provided Senator Lieberman with an
opportunity to promote the private sector preparedness program
that he had authored in the Post-Katrina Emergency Management
Act, approved by Congress in 2006. In a letter to DHS Secretary
Janet Napolitano dated June 3, 2010, Senator Lieberman and
House Homeland Security Committee Chairman Benny Thompson
complained that implementation was far behind schedule.
``Preparedness is a necessity not a luxury,'' they wrote.
Ten days later, on June 15, 2010, the Senators praised the
Department for moving forward to engage the private sector in
preparedness for its own property and assets. ``Time and again,
the value of being prepared for catastrophe reaps dividends in
fewer lives lost and a quicker return to business,'' Senator
Lieberman said. ``All of us share a responsibility for being
prepared, and the more we are prepared the more resilient we
will be in recovering from a catastrophe. Given that the
private sector owns 85 percent of our critical infrastructure--
communications, energy, and financial networks, for example--
the private sector needs to contribute to the preparedness
effort.''
August 29, 2010, marked the fifth anniversary of Hurricane
Katrina's landfall. The Chairman observed the anniversary by
releasing a new GAO report on the Federal Government's recovery
efforts along the Gulf coast. ``Five years after Hurricanes
Katrina and Rita, too many families along the Gulf Coast are
still struggling to recover,'' Lieberman said. ``FEMA has made
tremendous progress since 2005 and is evolving into a
competent, professional emergency management organization.''
But, he added, ``FEMA must improve its preparedness to
assist in future recoveries after a large scale disaster. . . .
The simple fact is that the distress that continues to plague
many displaced Gulf Coast families--from causes both natural
and man-made--spotlights the imperative to have world-class
recovery systems in place so that government, on all levels, as
well as individual citizens, are ready to help their
communities recover from catastrophic disaster.''
2. Fighting For First Responders
In the 111th Congress, performance standards were finally
instituted for the homeland security grants program. Introduced
in the House by Representative Henry Cuellar, the Redundancy
Elimination and Enhanced Performance for Preparedness Grants
Act, H.R. 3980, required FEMA to develop and implement
performance measures for homeland security grants, as well as
identify and eliminate redundant reporting requirements imposed
on State and local recipients of those grants. The measure
called for FEMA to develop and submit to Congress action plans
and timetables within 90 days and to report periodically
thereafter to Congress on its progress. The bill further
required FEMA to work with the National Academy of Public
Administration on the development of grants performance
measures. The bill was reported out of the Committee on April
28, 2010, and passed by Congress September, 28, 2010.
On August 2, 2009, the Chairman introduced a substitute for
the First Responder Anti-Terrorism Training Resources Act, H.R.
3978, which then passed out of Committee. The bill allowed the
Secretary of Homeland Security to accept donations that
strengthen FEMA's preparedness for and response to terrorism.
The bill gave the DHS Secretary authority to accept donations,
both of property and services, for activities of FEMA's Center
for Domestic Preparedness (CDP) that are related to
preparedness for and response to terrorism. CDP currently lacks
the authority to accept gifts and consequently has had to turn
down donations such as used buses and subway cars that could be
used for training. The bill was approved by the Senate on
August 5, 2009, and by Congress on September 15, 2009.
On April 27, 2010, the Chairman joined with Senators
Christopher Dodd, Tom Carper, Susan Collins, and John McCain to
introduce the Fire Grants Authorization Act, H.R. 3791. The
bipartisan bill would reauthorize the Assistance to
Firefighters Grant (AFG), the Staffing for Adequate Fire and
Emergency Response Grant (SAFER), and the Fire Prevention and
Safety Grant (FP&S). These grants provide critical help to
localities to buy necessary safety and prevention equipment and
to hire additional staff.
The Committee reported out the bill the following day.
``Since September 11 and the Hurricane Katrina catastrophe,
firefighters in communities, large and small, have assumed a
greater role in emergency preparedness,'' the Chairman said.
``More than ever towns and cities need the ability to hire
additional firefighters, purchase new equipment, and initiate
education and training programs, all of which is critical to
ensuring they can safely perform their dangerous jobs.''
3. D-Block Spectrum Legislation
On July 21, 2010, Chairman Lieberman and Senator John
McCain, R-Ariz., demonstrated their commitment to helping first
responders by introducing legislation that would provide them
with more broadband spectrum to help them build a 21st Century
interoperable communications network. The First Responders
Protection Act of 2010 would have given the public safety
community the 700 MHz D-Block spectrum and provide $5.5 billion
from the auction of a different block of spectrum to support
the construction of towers, transmission facilities, and
equipment for the new public safety network. Another $5.5
billion in auction proceeds would go to cover recurring
maintenance and operational costs. The legislation was referred
to the Commerce Committee where no action was taken.
4. Deepwater Horizon Oil Spill
On May 17, 2010, the Committee held a hearing titled ``Gulf
Coast Catastrophe: Assessing the Nation's Response to the
Deepwater Horizon Oil Spill.'' Unlike other hearings that were
held, which focused largely on the cause of the spill, the
Committee focused primarily on the public and private sector
preparedness for and response to the spill. The Committee
subsequently sent a letter to Senator Harry Reid (which he had
requested) listing recommendations for addressing the spill and
reducing the risks from a similar spill in the future.
5. Chemical Security
Efforts continued to strengthen the Federal Government's
security of hundreds of chemical sites around the country and
to chart a path forward to reduce the risk of widespread
casualties should a site be attacked by terrorists. The
Chemical Facilities Anti-Terrorism Standards (CFATS) guides
oversight of chemical plants but its authorization was due to
expire in 2010. The Committee held a hearing March 3, 2010, to
assess the prospects for more permanence for the security
program.
In his opening statement at the hearing, the Chairman
observed: ``Although there was intense controversy over whether
to begin a chemical security program at all--because of
opposition to government regulation in this area--there now
seems to be general agreement that CFATS is making a positive
contribution to our national and homeland security and should
be continued. So the question becomes: Should we improve it and
if so how can we improve it as we extend it?''
At a Committee markup on July 28, 2010, of Senator Collins'
chemical security legislation, H.R. 2868, Senator Lieberman
expressed his disappointment that the Committee could ``do
better'' and include waste water facilities and chemical plants
in port areas under CFATS, and include ``inherently safer
technologies'' in chemical security legislation. The measure
passed out of Committee on a 13-0 vote, with the Chairman
voting aye. The legislation was not considered on the Senate
floor, and the CFATS program was extended for another year.
6. Red Cross
On September 28, 2010, the Chairman announced final passage
of legislation he had introduced the year before--which was
passed by the Senate on May 24, 2010, and the House on
September 15, 2010--to help the Red Cross, other disaster
relief agencies, State, and local governments obtain goods and
services for disaster victims. The Federal Supply Schedules
Usage Act of 2010, S. 2868, will allow the Red Cross to
purchase goods and services from the General Services
Administration (GSA), which negotiates contracts far in advance
of a disaster and typically gets a better price than relief
agencies or State and local governments. The bill was signed
into law on October 8, 2010.
I. Federal Building Security
The Federal Protective Service (FPS), an agency within the
Department of Homeland Security, is responsible for protecting
more than 9,000 Federal buildings around the country--most of
them outside of Washington, DC--and the employees and citizens
who work within or visit those buildings. After it was absorbed
into DHS in 2003, the agency deteriorated, and eventually poor
management and budget shortfalls were threatening the agency's
mission. To try to correct the problems, Chairman Lieberman,
Senators Collins, Akaka, and Voinovich, asked the GAO in 2007
to investigate the agency. In response to the request, GAO
released four reports--the first on June 11, 2008. On April 13,
2009, GAO issued its second report, detailing the poor training
of FPS's contract guards, poor oversight of guard certification
requirements, and failure by contract guards to comply with
relevant rules and regulations.
Later in 2009, on July 8, the Committee held a hearing on a
third report--which was to be issued formally in April 2010.
That final report revealed security at Federal buildings so lax
that GAO investigators were able to smuggle bomb-making
materials through security, construct bombs in restrooms, and
walk about the building undetected. Chairman Lieberman and
Senator Collins announced that they would draft FPS reform
legislation. ``As we approach the eighth anniversary of 9/11,
and some 14 years after the bombing at the Federal building in
Oklahoma City,'' the Chairman said, ``it is outrageously
unacceptable that the Federal employees working within these
buildings and the citizens who pass through them are still so
utterly exposed to potential attack by terrorists or other
violent people.''
GAO's fourth report, issued August 5, 2010, found that FPS
did not adequately train its contract guards and that no one is
accountable for decisions made at individual building that FPS
protects.
The GAO's latest report on the Federal Protective Service
makes it clear that this agency is in ``dire need of reform,''
the Chairman said.
The following month, on September 20, 2010, the Chairman
and Senator Collins called FPS a dysfunctional agency and
introduced the Supporting Employee Competency and Updating
Readiness Enhancements for Facilities (SECURE) Act of 2010 (S.
3806). A manager's substitute to the bill was marked up and
ordered reported out of Committee on September 29, 2010. Among
other things, the measure would ensure that FPS has sufficient
personnel to carry out is mission; require FPS to maintain
testing programs to assess guard training and to establish
procedures for retraining or terminating ineffective guards;
and ensure FPS is prepared to address the threat of explosives.
J. Internal DHS Matters
1. Budget
Every year, the Chairman sends a letter to the Chairmen and
Ranking Members of the Senate Budget and Appropriations
Committees with broad recommendations for DHS's budget that
year. By March 17, 2009, when the Chairman sent his letter to
the Budget Committee, the Administration had only released a
general outline for DHS's budget in Fiscal Year 2010, rather
than detailed justifications, so the letter described
priorities broadly--including robust budgets for cybersecurity,
FEMA, and homeland security grants.
When the complete Fiscal Year 2010 budget request was made
public on May 7, 2009, the Chairman was satisfied with its 6
percent increase for homeland security spending, including
increases for border security and cybersecurity. He noted with
disappointment the flat budget for FEMA and cuts in homeland
security grants programs. The Chairman made his disappointment
known at a hearing May 12, 2009, with Secretary Napolitano as
the sole witness. On May 20, 2009, he sent a similar letter to
the Appropriations Committee
For Fiscal Year 2011, the Chairman again sent his annual
letter to the Budget Committee, on February 24, 2010, noting
the tough economic climate and the need to make hard budget
choices. He recommended small increases for aviation security
and for management programs to improve the operations of the
Department. The Administration's 2011 homeland security budget
increase was even more modest than the previous year, just
under 3 percent. Senator Lieberman sent his annual letter to
the Appropriations Committee on March 25, 2010.
2. High-Risk List
In 2009, the Department of Homeland Security was one of 30
agencies, departments, or programs placed on the GAO's biennial
list of Federal agencies most at risk of waste, fraud, abuse,
mismanagement, or in need of reform. DHS, established in 2003,
made the list in 2007 as well. The Chairman said the placement
was ``distressing but not unexpected.''
``Because of the Department of Homeland Security's
essential mission to keep the American people safe, GAO's
listing of the entire Department, once again, is distressing
but not unexpected,'' Lieberman said. ``We are acutely aware of
the Department's progress, as well as its shortcomings, and we
have put its continued improvement at the top of our to-do
list.''
3. Funding for a consolidated DHS headquarters
On January 8, 2009, the National Capital Planning
Commission (NCPC) approved a master plan for a consolidated DHS
headquarters at the St. Elizabeths Hospital Campus in Southeast
Washington. The Chairman weighed in, saying, ``A unified
headquarters, which would bring together many of the
Department's components into a single facility and allow
employees to work more efficiently and interactively is a
critical cornerstone of the efforts to improve management at
the Department of Homeland Security.''
K. Quadrennial Homeland Security Review
The Chairman and Senator Collins held a hearing July 21,
2010, to examine DHS's long range strategic plans, known as the
Quadrennial Homeland Security Review (QHSR) and the Bottom Up
Review (BUR). The Chairman told DHS Deputy Secretary Jane Holl
Lute that the plans, while helpful in setting the Department's
top priorities, were not specific enough. ``These documents
provide a broad narrative of the Department's key missions and
its goals for improving those missions, although the narrative
is too broad and the goals too vague,'' Chairman Lieberman
said. ``There has been a lot of growth in homeland security
since 9/11 and it's happened quickly . . . but we can't just
let the machine operate without control from the Executive
Branch and oversight from the Legislative Branch.''
CONTRACTING REFORM
A. Defense Contract Audit Agency
Through hearings, oversight, and an investigation conducted
by GAO at the Committee's request, the Chairman was
instrumental in spurring a change of leadership at the top of
the Defense Contract Audit Agency (DCAA) and a major reform
effort within the agency, which is responsible for auditing
approximately $500 billion dollars of contractor costs per
year. On September 23, 2009, The Chairman and Senator Collins
held a hearing to determine who within the agency was
responsible for reform. GAO released a report requested by
Senators Lieberman, Collins, and McCaskill, which found a
number of ongoing problems at DCAA. The report was the fifth in
recent years to report problems with the agency's success in
meeting its own auditing standards.
``The Committee has run out of patience,'' the Chairman
told Defense officials. ``Too much is on the line and the time
for incremental change is over. Each and every audit that GAO
reviewed failed to meet auditing standards. That is not an
aberration or a case of a few employees not knowing what to do.
That indicates systemic issues within the agency. . . . We need
to identify the root causes (of problems) and get on to the
solutions that the taxpayers demand and certainly deserve.''
Because the Committee exposed major mismanagement and
widespread auditing deficiencies within the agency, DCAA is
reforming its audit approach, metrics, and human capital
practices, and has begun the process of removing personnel who
have abused the taxpayers' trust.
HSGAC is committed to continued oversight of DCAA in order
to address systemic problems at the agency and institute
meaningful reform and will continue to have quarterly meetings
with the new Director of DCAA to oversee the progress of new
initiatives to improve the culture of the agency. Turning DCAA
around will protect billions of taxpayer dollars from waste,
fraud, and abuse.
B. Reducing Reliance on Government Contractors
The Committee worked with the Administration to oversee the
implementation of contracting reforms expected to save billions
of taxpayer dollars and with the Office of Federal Procurement
Policy as they issued draft guidance to ensure that inherently
governmental functions are carried out by government employees.
On July 29, 2009, the Office of Management and Budget (OMB)
issued new guidelines on contracting procedures--specifically
on improving acquisition, managing the multi-sector workforce,
and expanding contractor performance information. The Chairman
said the guidelines ``draw welcome attention to the need for
robust human capital planning. Contractors can--and should--
provide the government with valuable expertise and services,
but at the same time, we must ensure that each agency has the
in-house skills necessary to maintain control of its mission
and operations.''
As part of its routine oversight of DHS contracting,
Committee staff learned at a briefing that far more contractors
were employed at DHS than anyone expected. In a strongly-worded
letter to DHS Secretary Napolitano dated February 23, 2010, the
Chairman and Senator Collins expressed shock to learn that DHS
not only relies too heavily on contractors but that half of its
workforce is made up of contractors. ``The sheer number of DHS
contractors currently on board again raises the question of
whether DHS itself is in charge of its programs and policies or
whether it inappropriately has ceded core decisions to
contractors.''
The Senators asked for a unit by unit breakdown of where
the contractors work and assurances that contractors are not
performing ``inherently governmental work'' and other core
functions.
C. Special Inspector General for Iraq Reconstruction
The Chairman commented October 30, 2009, on the latest
report from the Special Inspector General for Iraq
Reconstruction (SIGIR), which showed that the contractor hired
by the Federal Government to provide support to the Iraqi Army
could not support 14 percent of costs examined by the SIGIR. In
one instance, the contractor charged the government $196 for
bags of washers that should have cost $1.22 each. SIGIR
identified $4 million in potential overbillings. The Chairman
said ``Despite volumes of audits and investigations identifying
the waste and fraud that flows from weak Department of Defense
contract oversight, the Department still doesn't have the
personnel or procedures in place to hold contractors
accountable.''
The SIGIR produced another report on the Department of
State's oversight of a $2.5 billion DynCorp contract for
support of the Iraqi police training program. The report found
repeated oversight weaknesses and untold amounts of wasted
taxpayer dollars. ``The State Department appears to be
sleepwalking through its oversight obligations,'' Senator
Lieberman said. ``It has known for years'' about the weak and
sloppy oversight of the contract and has ``repeatedly committed
to beef up'' oversight staffing. ``Yet, we still seem to be at
the starting point. . . . It is inexplicable that this has not
been done yet.''
D. New Subcommittee
The issue of Federal contracting--which costs taxpayers
over $500 billion a year, was so ripe for additional oversight
that Chairman Lieberman announced on January 29, 2009, he was
establishing a new Ad Hoc Subcommittee called Ad Hoc
Subcommittee on Contracting Oversight for that purpose. Senator
McCaskill was named to Chair the Subcommittee. For years, the
GAO has put Federal contracting on its list of agencies,
departments, or programs at risk for waste, fraud, abuse,
mismanagement, or in need of reform. ``Management of Federal
Contracts is one of the greatest operational challenges facing
the Federal Government,'' the Chairman said. ``Spending on
Federal contracts rose to an astounding $535 billion last year.
. . . This is a problem that needs as much oversight as we can
muster.''
AMERICAN RECOVERY AND REINVESTMENT ACT
Early in the new Congress, the Committee began extensive
oversight of the $787 billion American Recovery and
Reinvestment Act (ARRA), also known as the stimulus package,
enacted in February 2009 to jumpstart the weakening economy by
creating jobs and stimulating consumer spending.
Given that $499 billion would be spent directly on programs
and projects (the remaining $288 billion was intended for tax
relief), Chairman Lieberman directed the Committee to monitor
government safeguards to prevent waste, fraud, and abuse and to
ensure transparency in the spending of such a large pot of
money. The Committee held five hearings--including a field
hearing in Connecticut--to ``ensure that measures are put into
place to prevent cost overruns, provide strict oversight of
contractor performance, and ensure that fraud is promptly
prosecuted in all aspects of stimulus spending,'' the Chairman
said.
Working with Administration officials and State and local
government stakeholders, the Committee helped to resolve
potential problems in administering the stimulus funds and
promote understanding of the Act's provisions and their impact.
The first and second hearings on March 5 and April 2, 2009,
focused on the measures required by the ARRA to avoid waste and
mismanagement. The third hearing on April 8, 2009, in Hartford,
Conn., looked at how $2.9 billion in stimulus funds were being
spent in Connecticut. The fourth hearing on April 23, 2009,
concentrated on how State and local governments were spending
their stimulus money and the need for flexibility in State
spending. And the fifth hearing on September 10, 2009, looked
at how the Administration had streamlined its red tape to
ensure faster spending of stimulus dollars absent waste, fraud,
and abuse.
The day before the last hearing, Chairman Lieberman wrote a
letter to the Office of Management and Budget Director Peter
Orszag and his deputy Robert Nabors commending the positive
impact ARRA was having on the economy but urging OMB to pick up
the pace of stimulus spending to increase its impact on the
unemployed.
Ultimately, Chairman Lieberman concluded the Administration
met the levels of transparency and accountability required by
the Act, setting a worthy model for large Federal spending
programs in the future.
PROTECTING FEDERAL EMPLOYEES
A. Domestic Partners
For the third Congress in a row, Chairman Lieberman
advocated for the Domestic Partnership Benefits and Obligations
Act, S. 1102, a bill to provide the same employment benefits
to--and require the same obligations of--same sex domestic
partners of Federal employees that are available to and
required of opposite sex spouses of Federal employees. The bill
attracted 23 co-sponsors.
Senator Lieberman and Senator Collins introduced the bill
on May 20, 2009, when the Chairman delivered a floor speech
declaring, ``This legislation makes eminent sense for two
reasons: It will help the Federal Government attract the best
and the brightest and it is the fair and right thing to do from
a human rights perspective.''
On October 15, 2009, the Committee held a hearing on the
measure with Office of Personnel Management Director John Berry
testifying that the cost of the bill in 2010 would represent
one-fifth of a percent of the annual total cost of Federal
employee health insurance.
A growing majority of private sector companies extend
family benefits for their employees in same-sex domestic
partnerships to gain a competitive edge in recruitment and
retention, to foster an inclusive and productive workplace, and
because it is fair.
The Committee marked up and reported the bill out on
December 16, 2009, and has been working with the Administration
and other stakeholders to develop a winning strategy on the
Senate floor.
B. Retirement Equity
Senators Lieberman, Collins, Akaka, and Voinovich hailed
the FY2010 Department of Defense authorization conference
report October 8, 2009, for including a number of provisions
intended to ensure equity for various types of participants in
the Federal retirement system.
Three provisions--S. 507, S. 469, and S. 629--were ordered
reported out of the Committee, the first on April 1, 2009, the
latter two on May 20, 2009.
One provision helped agencies rehire experienced employees
just as the Federal Government prepares to lose one-third of
its civil service workforce to retirement over the next 5 years
(S. 629). Another provision allowed Federal employees
participating in the Federal Employee Retirement System (FERS)
to apply their unused sick leave to their length of service for
the purposes of computing the amount of retirement benefits (S.
469). A third provision replaced the cost of living increases
that Federal employees in Hawaii, Alaska, and U.S. territories
receive with locality pay that Federal employees in the
contiguous 48 States receive (S. 507).
The Senators previously had attempted to attach the
provisions to the Family Smoking Prevention and Tobacco Control
Act in June and to the National Defense Authorization Act in
July.
``A number of provisions in the DOD authorization
conference agreement would bring justice to Federal employees
who because of quirks in the law, errors, or oversight, have
lost out on retirement benefits for which they would otherwise
be eligible,'' Senator Lieberman said.
C. Whistleblowers
Federal-employee whistleblowers can help improve government
effectiveness by identifying and disclosing waste, fraud, and
abuse, enabling agencies or Congress to correct the problem.
The Whistleblower Protection Act (WPA), championed by Senator
Akaka, Chairman of the Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of
Columbia, ensures that Federal employees are not retaliation
against for disclosing that kind of information. Several court
cases, however, have misconstrued the intent of Congress and
limited the law's coverage and, therefore, its effectiveness.
And national security whistleblowers have, in fact, suffered
unfair retaliation. To resolve these misunderstandings, Senator
Akaka, Senator Lieberman, and others introduced the
Whistleblower Protection Enhancement Act of 2009 (S. 372), on
February 3, 2009. The bill extends WPA coverage to situations
involving the intelligence community and security clearances.
The bill was reported out of HSGAC in December 2009. Bipartisan
negotiators from both the Senate and the House tried
unsuccessfully to work out details.
D. Relocation Expenses
On October 21, 2009, the Chairman introduced S. 1825, a
bill to extend the authority for relocation expenses test
programs for Federal employees. The bill would give General
Services Administration (GSA) the permanent authority to test
new, more efficient ways to relocate Federal employees. This
authority was set to expire in December 2009, but S. 1825
allowed GSA to continue to expand the program, which has been
used to save more than $50 million in Federal tax dollars.
The Committee reported the bill out on November 4, and the
Senate passed it by unanimous consent on November 9. The House
agreed to the Senate version, and the President signed the bill
on November 30, 2009.
IMPROVING GOVERNMENT EFFICIENCY
A. Information Technology
The Committee has long had an active interest in
information technology (IT) and has examined a number of IT
projects across government for ways to reduce waste and
increase effectiveness. In the 111th Congress, this included
reporting out the Information Technology Investment Oversight
Enhancement and Waste Prevention Act of 2009 (S. 920), designed
to increase transparency and accountability for IT projects and
help rein in over budget and overdue projects. The bill passed
the Senate in May of 2010.
The Committee also conducted close oversight of the IT
Dashboard, which increases the transparency of and agencies
accountability for all Federal IT projects, and other Federal
Web sites. One site that is designed to streamline
the Federal grant process was found instead to make it more
difficult. On July 16, 2009, Chairman Lieberman and Senator
Voinovich released a GAO report that showed the site was
plagued by technical limitations, degraded performance, and
user difficulties.
On April 12, 2010, GAO released another report detailing
Administration problems with implementation of a series of
information technology programs. The Federal Government, GAO
concluded, needs to improve the security of its information
technology systems by fully implementing key initiatives such
as: The Einstein Program, the Trusted Internet Connections
Program, and the Federal Desktop Core Configuration Initiative.
``The security of Federal IT systems is an every growing
problem that must be confronted aggressively and with all
available means,'' the Chairman said in a statement, along with
other co-requesters of the report, Senators Collins and Carper.
B. E-Government
Rulemaking
The Committee reached out to the OMB in the fall of 2009 to
discuss the Chairman's concerns with the current status of e-
rulemaking and the findings and recommendations in a 2008
report by the American Bar Association. Following the
Committee's inquiry, the Office of Information and Regulatory
Affairs (OIRA) issued a number of memos recommending better
rulemaking practices, including the use of a Regulation
Identifier Number (RIN) to track regulations. In April 2010,
OIRA Director Cass Sunstein, as reported in the New York Times,
issued a directive allowing agencies to solicit feedback on
proposed rules and regulations through social media.
Telework
Senator Daniel Akaka introduced S. 707, the Telework
Enhancement Act, March 25, 2009, to require Federal agencies to
prepare and implement plans allowing Federal employees to
telework. Agency programs that enable employees to telework,
Senator Akaka argued, can improve recruitment, retention, and
job satisfaction, save money for the government by reducing the
need for office space and resources, be an essential component
of continuation of operations (COOP) planning, and reduce
traffic congestion and energy consumption. Senator Lieberman
co-sponsored the measure, and the full Committee reported it
out on May 3, 2010. The Senate passed S. 707 21 days later on
May 24, 2010, with amendments. After compromise legislation was
negotiated with the House, the Senate passed a modified version
as an amendment to H.R. 1722 on September 30, 2010.
C. Telecommunications
As part of its responsibility to ensure the effective and
efficient operation of government, the Committee examined the
transition of Federal telecommunications contracts from FTS2001
to Networx, pushing agencies to provide detailed plans on how
they will transition to the new contracts. On December 9, 2009,
the Chairman and Senator Collins wrote to OMB Deputy Director
of Management and Chief Performance Office Jeffrey Zients
asking him to exert stronger leadership in Federal agencies'
transitions to new telecommunications services as part of the
Networx program. The new services were expected to save the
Federal Government millions of dollars but instead are costing
taxpayers' money as agencies delay transitioning to a new
system.
On March 24, 2010, the Senators expressed concern that
several departments were not modernizing their
telecommunications systems as quickly as they should be. In
letters to the Departments of Homeland Security, Defense,
Labor, Justice, Health and Human Services, Commerce, and
Agriculture, the Senators asked the Secretaries of each
Department what actions they were taking to speed up the
transition to the Networx program.
D. Improper Payments
Authored by Senator Carper, and sponsored by Senator
Lieberman, the Improper Payments Elimination and Recovery Act,
S. 1508, was signed into law in July 2010. The legislation
requires Federal agencies to identify and recover the estimated
$100 billion of taxpayer dollars lost annually due to improper
payments and prevent future improper payments. The legislation
provides important tools to address government waste, including
requiring agencies to produce audited, corrective action plans
with targets to reduce overpayment errors; and penalizing
agencies that fail to comply with current accounting and
recovery laws.
E. Performance Measurements
The Committee worked in an expedited fashion to report out
the Government Efficiency, Effectiveness, and Performance
Improvement Act of 2010 (H.R. 2142). Sponsored by Rep. Henry
Cuellar, D-Texas, the bill would improve government performance
and reporting measures, in part by moving these measurements to
the Web rather than sending large and often unread reports to
Congress. The legislation directs OMB and agencies to work on a
Web site so the public can track agency goals and their
progress towards those goals. The bill was reported out of
Committee on December 7, 2010, passed the Senate on December
16, reconciled with the House version by December 21, and
signed by the President on January 4, 2011.
DISTRICT OF COLUMBIA
A. Voting Rights
The 111th Congress saw the Senate pass an historic voting
rights bill for District of Columbia residents for the first
time in recent memory. Working with D.C. Delegate Eleanor
Holmes Norton, Chairman Lieberman had introduced legislation to
give District residents some form of voting representation in
Congress every Congress for the past decade with little
success.
On January 2009, the first day of the new Congress, the
Chairman introduced The District of Columbia House Voting
Rights Act of 2009 (S. 160), with co-sponsor Senator Orrin
Hatch, R-Utah. Other co-sponsors included Senators Patrick
Leahy, D-Vt., Edward Kennedy, D-Mass., Hillary Clinton, D-N.Y.,
Christopher Dodd, D-Conn., Bernie Sanders, I-Vt., John Kerry,
D-Mass., Russell Feingold, D-Wis., and Richard Durbin, D-Ill.
The bill would have given District citizens voting
representation in the House by balancing out the Democratic/
Republicans ration with an additional representative from Utah,
based on the population count of the 2000 Census.
A little more than a month later, on February 11, the
Committee marked up the bill and reported it out on a vote of
11-1. ``The right to be counted, to have your voice heard by
your government is central to a functioning democracy,
fundamental to a free society, and the birthright of all
Americans, no matter where they live,'' the Chairman said.
The Chairman delivered an impassioned speech on the Senate
floor on February 24 in favor of righting the longstanding
injustice that left the residents of D.C. without voting
representation in Congress. ``Today, we have a chance to take
another historic step to enhance this great democracy by giving
voice to the very people--the hard-working men and women who
toil away in its capital,'' the Chairman said.
After 3 days of debate, the Senate voted in favor of the
measure 61-37, with six Republicans voting on final passage.
Although it was ``a moment of joy and progress,'' in the
Chairman's words, S. 160 would eventually die in the House
because of a poison pill amendment that would have lifted the
District of Columbia's gun ban.
B. Education
On May 13, 2009, the Committee held a hearing on extending
the Opportunity Scholarship Program (OSP), which allows low-
income District of Columbia students to attend private school
on scholarship. Congress established the D.C. OSP in 2004 as
part of a broader educational strategy to provide new funding
in equal parts for D.C. public schools, charter schools, and
the OSP. The program was set to expire after the 2009-2010
school year, although the Administration said it would support
allowing the children already in the program to continue until
they graduate.
``The standard for judging any education program should be
whether it works, whether it improves the performance of
students,'' Chairman Lieberman said. ``It's a factual question
based on scientific evaluations and test scores. And when we
apply that non ideological, non partisan standard to the
Opportunity Scholarship Program, my conclusion is that the
program works.''
Senate Majority Leader Harry Reid promised Senator
Lieberman a full Senate vote on reauthorizing the program. And
on March 16, 2010, that vote took place. By a vote of 42-55,
the Senate turned back the OSP reauthorization.
WORKING FOR CONNECTICUT
A. Homeland Security Grants
As Chairman of the Committee, Senator Lieberman's primary
efforts on behalf of Connecticut involved securing Federal
homeland security grants to protect the State's long coastline,
its critical infrastructure, particularly its transportation
network and nuclear power plant, and to train and equip
Connecticut first responders to assist in recovery from a major
terrorist attack or natural disaster.
In FY2009, Connecticut's share of Federal homeland security
amounted to $39,345,407 in homeland security grants,
approximately $600,000 less than the year before. And FY2010
saw an even greater drop of grants to $37,468,923, due to
accelerated efforts to cut the budget and reduce unsustainable
deficits.
B. H1N1
When the H1N1 virus broke out in force in the late summer
of 2009, Senator Lieberman held a field hearing in Hartford,
Connecticut, one of four hearings he held on how government
officials were tracking, preparing for, and responding to the
virus. Connecticut officials had identified 2,000 cases of
H1N1, with nine deaths by the time the field hearing took place
on September 21, 2009. The hearing--titled ``H1N1 Flu:
Protecting Our Community''--focused on how State and local
health officials were combating the deadly virus. The Chairman
concluded ``the State appears to be on track to stay out in
front of a broad H1N1 outbreak.'' Senator Lieberman urged
collaboration and communication among Federal, State, and local
government agencies, educational institutions, the healthcare
community, businesses, and the public.
``We are fortunate that, so far, new cases of the virus
have continued to show the same mild to moderate symptoms as we
observed last spring, but outbreaks of infectious diseases are
hard to predict, so circumstances could still change
dramatically over the coming weeks and months. Therefore, we
must remain on heightened alert, continue to take preventative
action, work together and hone communications with the public,
and--while hoping for the best--we must prepare for the
worst.''
According to the Connecticut Department of Public Health,
vaccination centers in Connecticut received 178,000 doses of
the H1N1 vaccine as of October 28. The State had been promised
500,000 doses by the end of October, which came later, in
November, for high-risk patients such as pregnant women, health
care workers, people with conditions such as asthma or diabetes
and youth ages 2 through 24.
``We are holding this hearing now because it is the
beginning of the flu season,'' Lieberman said. ``But September
is also National Preparedness Month, and therefore a good time
to remind people that they contribute to the well-being of
their own communities when they take time to inform themselves
about existing threats. Preventing the spread of the flu is
something that every single person can and must help with, and
I hope that this hearing further inspires people from all walks
of life to do their part.''
MISCELLANEOUS
A. Iran Sanctions
The Chairman called a hearing May 12, 2010, to bring
attention to the fact that the U.S. Government awarded nearly
$1 billion in Federal contracts from 2005-2009 to companies
doing business with Iran, despite the 1996 Iran Sanctions Act
which prohibits such behavior. Yet, no company has been
sanctioned under the law. The data was revealed in a GAO report
that was released at the hearing.
``The U.S. Government's market power gives us the ability
to influence the behavior of companies doing business with Iran
and to give them a choice between doing business with us or
doing business with Iran,'' Senator Lieberman said. ``We no
longer should allow businesses to do both.''
B. Fiscal Balance
On May 14, 2009, the Chairman joined Senator Voinovich in
introducing the SAFE Commission Act (S. 1056), in an effort to
get a handle on the exploding debt. The legislation would
establish the Securing America's Future Economy (SAFE)
Commission to develop legislation designed to address: (1) the
unsustainable imbalance between long-term Federal spending
commitments and projected revenues; (2) increases in net
national savings to provide for domestic investment and
economic growth; (3) the implications of foreign ownership of
federally issued debt instruments; and (4) revision of the
budget process to place greater emphasis on long-term fiscal
issues.
The Committee held a hearing December 17, 2009, on how to
deal with the $12 trillion national debt, and leading financial
experts testified that the only way Congress could tackle it
would be through a statutorily-created bipartisan commission.
Witnesses, including former Federal Reserve Chairman Alan
Greenspan, said that the commission's recommendations must then
be put on a legislation fast track and should not be subject to
amendment.
``The American people have reached a tipping point on
this,'' the Chairman said. ``They see that Washington is
incapable of dealing with the debt, ultimately, because we are
irresponsible. We like to spend and we don't like to raise
taxes. You don't have to be Alan Greenspan to know that will
lead to an unsustainable debt.
``If we continue adding to the debt . . . we put at risk
our economic and national security; we place our Nation's
economy at the mercies of foreign creditors who don't always
share our values, and we put in jeopardy generational promises
we have made to ourselves and our children, like Medicare and
Social Security.''
C. Payment for Rides on Corporate Jets
A longtime proponent of campaign finance reform, Chairman
Lieberman, along with Senators Feingold and McCain, introduced
legislation in December 2009 to overturn a Federal Election
Commission (FEC) ruling that effectively gutted Congress' work
to crack down on Senators accepting rides on corporate jets.
The Honest Leadership and Open Government Act of 2007
contained new rules on personal, official, and campaign travel
on non-commercial aircraft or corporate jets, requiring
Senators who travel on corporate jets to reimburse the jet
provider at the rate of a charter flight rather than the cost
of a first class ticket.
But the FEC, showing utter disregard for Congress' intent,
created a loophole in the statute for members' travel on
corporate jets on behalf of someone's campaign other than their
own.
D. Policy Czars
The Chairman held a hearing October 22, 2009, on the
competing interests between the President's constitutional
right to appoint his own policy advisors and Congress'
responsibility to oversee Executive Branch activities.
Estimates of current Executive Branch czars varies, so the
Committee limited its discussion to non-statutory, unconfirmed
advisors working at the White House who have made it clear they
would not testify before Congress. That limited the number to
between four and eight czars.
``The real issue today is not the number of White House
policy advisors appointed by President Obama versus his
predecessors,'' the Chairman said. ``The real issue is
accountability and whether the use of presidentially-appointed
policy czars, regardless of which President appointed them,
adversely affects congressional oversight, and government
accountability and transparency. Balancing the inherent
tensions that exist between the Legislative and Executive
Branches is a work in progress but I would like to determine if
we can achieve a balance that satisfied the legitimate demands
of both branches.''
Among the witnesses was former Homeland Security Secretary
Tom Ridge, who had served as a Special Advisor to the President
on Homeland Security.
E. Census
Chairman Lieberman issued a press release on August 10,
2010, praising the Census Bureau for bringing the 2010 Census
in well under budget. The Bureau said that it would return at
least $1.6 billion to the Treasury, or 22 percent of the
contingency budget set aside for a major natural disaster or
other operational failing. ``After a difficult lead up to the
2010 Census, the Bureau should be commended for returning $1.6
billion to taxpayers,'' the Chairman said. ``A little bit of
luck, hard work by Census employees, and the cooperation of
people who mailed back their forms means this massive
undertaking has come in under budget, a pleasant surprise.''
F. Presidential Transitions
On August 2, 2010, the Committee reported out S. 3196, Pre-
Election Presidential Transition Act, sponsored by Senator
Kaufman. The bill sought to encourage earlier transition
planning and preparations by both presidential candidates and
incumbent administrations to help ensure a smoother
presidential transition and protect national security at a time
of potential vulnerability. The bill passed the Senate by
unanimous consent on September 24, 2010, and cleared the House
on September 30. It was enacted into law on October, 15, 2010.
G. Sam Hicks
On May 25, 2009, the Committee reported out H.R. 2711, The
Special Agent Samuel Hicks Families of Fallen Heroes Act, to
allow Federal law enforcement agencies to assist families of
law enforcement officers killed on the job with relocation
costs if they want to move from a posting back to their home
communities. FBI Special Agent Sam Hicks was fatally shot while
executing a Federal search warrant on a drug distribution ring.
Prior to the law's enactment, the FBI was barred from assisting
with his family's moving costs. This legislation lifted that
restriction and allows the Federal Government to assist the
families of our fallen heroes. The Senate passed the measure on
May 14, 2010, by unanimous consent, and was signed into law
June 9, 2010.
H. Inspectors General
On June 18, 2009, Senator Lieberman commented on the
procedures used in firing Gerald Walpin as Inspector General of
the Corporation for National and Community Service. Questions
had been raised about whether the Administration had followed
the law to provide Congress with an adequate written
explanation for the firing. ``Through two letters and oral
briefings, the White House has communicated a number of
concerns with Mr. Walpin's conduct as Inspector General. . . .
I will continue to review the matter . . . to ensure that the
Administration had ample justification for its actions.'' The
next day, Senators Lieberman, Collins, and McCaskill wrote to
the President to say ``we believe you have met the letter and
spirit of the Inspector General Reform Act of 2008 with respect
to congressional notifications of removal or transfer'' and
they asked for additional information. On June 24, Committee
Communications Director Leslie Phillips sent a letter to the
editor of the Washington Times contesting an editorial that
implied the firing was political and the Senator was not
investigating sufficiently. In part, the letter said:
``Contrary to the impression left by your editorial, Senator
Lieberman and his Committee colleagues are committed to
conducting an independent review to make sure Mr. Walpin's
termination was not arbitrary, capricious, punitive, or
political. And that is what they are doing.''
The Chairman, Senator Collins, and three other Members of
the Committee expressed concern on January 21, 2010, about
allegations that an Office of Management and Budget employee
threatened the Office of Personnel Management (OPM) Inspector
General. In a letter to OMB Director Peter Orszag, the Senators
asked OMB to review the incident and report back to the
Committee on its findings.
II. COMMITTEE JURISDICTION
The jurisdiction of the Committee derives from the Rules of
the Senate and from Senate Resolutions:
RULE XXV
* * * * * * * *
(k)(1) Committee on Governmental Affairs, to which
committee shall be referred all proposed legislation, messages,
petitions, memorials, and other matters relating to the
following subjects:
1. Archives of the United States.
2. Budget and accounting measures, other than
appropriations, except as provided in the Congressional Budget
Act of 1974.
3. Census and collection of statistics, including economic
and social statistics.
4. Congressional organization, except for any part of the
matter that amends the rules or orders of the Senate.
5. Federal Civil Service.
6. Government information.
7. Intergovernmental relations.
8. Municipal affairs of the District of Columbia, except
appropriations therefore.
9. Organization and management of United States nuclear
export policy.
10. Organization and reorganization of the Executive Branch
of the Government.
11. Postal Service.
12. Status of officers and employees of the United States,
including their classification, compensation, and benefits.
(2) Such committee shall have the duty of----
(A) receiving and examining reports of the Comptroller
General of the United States and of submitting such
recommendations to the Senate as it deems necessary or
desirable in connection with the subject matter of such
reports;
(B) studying the efficiency, economy, and effectiveness of
all agencies and departments of the Government;
(C) evaluating the effects of laws enacted to reorganize
the Legislative and Executive Branches of the Government; and
(D) studying the intergovernmental relationships between
the United States and the States and municipalities, and
between the United States and international organizations of
which the United States is a member.
SENATE RESOLUTION 73, 111TH CONGRESS
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS.
Sec. 12. (a) * * *
* * * * * * * *
(e) INVESTIGATIONS----
(1) In General--The committee, or any duly authorized
subcommittee of the committee, is authorized to study or
investigate----
(A) the efficiency and economy of operations of all
branches of the Government including the possible existence of
fraud, misfeasance, malfeasance, collusion, mismanagement,
incompetence, corruption, or unethical practices, waste,
extravagance, conflicts of interest, and the improper
expenditure of Government funds in transactions, contracts, and
activities of the Government or of Government officials and
employees and any and all such improper practices between
Government personnel and corporations, individuals, companies,
or persons affiliated therewith, doing business with the
Government; and the compliance or noncompliance of such
corporations, companies, or individuals or other entities with
the rules, regulations, and laws governing the various
governmental agencies and its relationships with the public;
(B) the extent to which criminal or other improper
practices or activities are, or have been, engaged in the field
of labor-management relations or in groups or organizations of
employees or employers, to the detriment of interests of the
public, employers, or employees, and to determine whether any
changes are required in the laws of the United States in order
to protect such interests against the occurrence of such
practices or activities;
(C) organized criminal activity which may operate in or
otherwise utilize the facilities of interstate or international
commerce in furtherance of any transactions and the manner and
extent to which, and the identity of the persons, firms, or
corporations, or other entities by whom such utilization is
being made, and further, to study and investigate the manner in
which and the extent to which persons engaged in organized
criminal activity have infiltrated lawful business enterprise,
and to study the adequacy of Federal laws to prevent the
operations of organized crime in interstate or international
commerce; and to determine whether any changes are required in
the laws of the United States in order to protect the public
against such practices or activities;
(D) all other aspects of crime and lawlessness within the
United States which have an impact upon or affect the national
health, welfare, and safety; including but not limited to
investment fraud schemes, commodity and security fraud,
computer fraud, and the use of offshore banking and corporate
facilities to carry out criminal objectives;
(E) the efficiency and economy of operations of all
branches and functions of the Government with particular
reference to----
(i) the effectiveness of present national security methods,
staffing, and processes as tested against the requirements
imposed by the rapidly mounting complexity of national security
problems;
(ii) the capacity of present national security staffing,
methods, and processes to make full use of the Nation's
resources of knowledge and talents;
(iii) the adequacy of present intergovernmental relations
between the United States and international organizations
principally concerned with national security of which the
United States is a member; and
(iv) legislative and other proposals to improve these
methods, processes, and relationships;
(F) the efficiency, economy, and effectiveness of all
agencies and departments of the Government involved in the
control and management of energy shortages including, but not
limited to, their performance with respect to----
(i) the collection and dissemination of accurate statistics
on fuel demand and supply;
(ii) the implementation of effective energy conservation
measures;
(iii) the pricing of energy in all forms;
(iv) coordination of energy programs with State and local
government;
(v) control of exports of scarce fuels;
(vi) the management of tax, import, pricing, and other
policies affecting energy supplies;
(vii) maintenance of the independent sector of the
petroleum industry as a strong competitive force;
(viii) the allocation of fuels in short supply by public
and private entities;
(ix) the management of energy supplies owned or controlled
by the Government;
(x) relations with other oil producing and consuming
countries;
(xi) the monitoring of compliance by governments,
corporations, or individuals with the laws and regulations
governing the allocation, conservation, or pricing of energy
supplies; and
(xii) research into the discovery and development of
alternative energy supplies; and
(G) the efficiency and economy of all branches and
functions of Government with particular references to the
operations and management of Federal regulatory policies and
programs.
(2) EXTENT OF INQUIRIES--In carrying out the duties
provided in paragraph (1), the inquiries of this committee or
any subcommittee of the committee shall not be construed to be
limited to the records, functions, and operations of any
particular branch of the Government and may extend to the
records and activities of any persons, corporation, or other
entity.
(3) SPECIAL COMMITTEE AUTHORITY--For the purposes of this
subsection, the committee, or any duly authorized subcommittee
of the committee, or its chairman, or any other member of the
committee or subcommittee designated by the chairman, from
March 1, 2009, through February 28, 2011, is authorized, in
its, his, or their discretion----
(A) to require by subpoena or otherwise the attendance of
witnesses and production of correspondence, books, papers, and
documents;
(B) to hold hearings;
(C) to sit and act at any time or place during the
sessions, recess, and adjournment periods of the Senate;
(D) to administer oaths; and
(E) to take testimony, either orally or by sworn statement,
or, in the case of staff members of the Committee and the
Permanent Subcommittee on Investigations, by deposition in
accordance with the Committee Rules of Procedure.
(4) AUTHORITY OF OTHER COMMITTEES--Nothing contained in
this subsection shall affect or impair the exercise of any
other standing committee of the Senate of any power, or the
discharge by such committee of any duty, conferred or imposed
upon it by the Standing Rules of the Senate or by the
Legislative Reorganization Act of 1946.
(5) SUBPOENA AUTHORITY--All subpoenas and related legal
processes of the committee and its subcommittee authorized
under S. Res. 89, agreed to March 1, 2007 (110th Congress) are
authorized to continue.
III. BILLS AND RESOLUTIONS REFERRED AND CONSIDERED
During the 111th Congress, 176 Senate bills and 121 House
bills were referred to the Committee for consideration. In
addition, 6 Senate Resolutions and 5 Senate Concurrent
Resolutions were referred to the Committee.
The Committee reported 151 bills; an additional 14 measures
were discharged. Of the legislation received by the Committee,
93 measures became public laws, including 70 postal naming
bills.
IV. HEARINGS
During the 111th Congress, the Committee held 86 hearings
on legislation, oversight issues, and nominations. Hearing
titles and dates follow.
The Committee also held 19 scheduled business meetings.
Lists of hearings with copies of statements by Members and
witnesses, with archives going back to 1997, are online at the
Committee's Web site, http://hsgac.senate.gov/.
Lessons from the Mumbai Terrorist Attacks--Parts I and II.
January 8 and 28, 2009. (S. Hrg. 111-581).
Nomination of Peter R. Orszag to be Director, Office of
Management and Budget. January 14, 2009. (S. Hrg. 111-549).
Nomination of Robert L. Nabors II to be Deputy Director,
Office of Management and Budget. January 14, 2009. (S. Hrg.
111-440).
Nomination of Hon. Janet A. Napolitano to be Secretary,
U.S. Department of Homeland Security. January 15, 2009. (S.
Hrg. 111-602).
Where Were the Watchdogs? The Financial Crisis and the
Breakdown of Financial Governance. January 21, 2009. Where Were
the Watchdogs? Systemic Risk and the Breakdown of Financial
Governance. March 4, 2009. Were the Watchdogs? Financial
Regulatory Lessons from Abroad. May 21, 2009. (S. Hrg. 111-
614).
Structuring National Security and Homeland Security at the
White House. February 12, 2009. (S. Hrg. 111-654).
Follow the Money: Transparency and Accountability For
Recovery and Reinvestment Spending. March 5, 2009. Recovery and
Reinvestment Spending: Implementing a Bold Oversight Strategy.
April 2, 2009. The American Recovery and Reinvestment Act:
Making the Economic Stimulus Work for Connecticut. April 7,
2009. Follow the Money: State and Local Oversight of Stimulus
Funding. April 23, 2009. Follow the Money: An Update on
Stimulus Spending, Transparency, and Fraud Prevention.
September 10, 2009. (S. Hrg. 111-978).
Violent Islamist Extremism: Al-Shabaab Recruitment in
America. March 11, 2009. Eight Years After 9/11: Confronting
the Terrorist Threat to the Homeland. September 30, 2009. (S.
Hrg. 111-678).
Southern Border Violence: Homeland Security Threats,
Vulnerabilities, and Responsibilities. March 25, 2009. Southern
Border Violence: State and Local Perspectives. April 20, 2009.
(S. Hrg. 111-791).
Nomination of Jane Holl Lute to be Deputy Secretary, U.S.
Department of Homeland Security. March 26, 2009. (S. Hrg. 111-
979).
Nomination of Hon. M. John Berry to be Director, Office of
Personnel Management. March 26, 2009. (S. Hrg. 111-663).
Nomination of W. Craig Fugate to be Administrator, Federal
Emergency Management Agency, U.S. Department of Homeland
Security. April 22, 2009. (S. Hrg. 111-677).
Nomination of John T. Morton to be Assistant Secretary,
U.S. Department of Homeland Security. April 22, 2009. (S. Hrg.
111-573).
Cyber Security: Developing a National Strategy. April 28,
2009. Cyber Attacks: Protecting Industry Against Growing
Threats. September 14, 2009. (S. Hrg. 111-724).
Swine Flu: Coordinating the Federal Response. April 29,
2009. H1N1 Flu: Protecting Our Communities. September 21, 2009.
H1N1 Flu: Monitoring the Nation's Response. October 21, 2009.
H1N1 Flu: Getting the Vaccine to Where it is Most Needed.
November 17, 2009. (S. Hrg. 111-910)
Nominations of Ivan K. Fong to be General Counsel, U.S.
Department of Homeland Security, and Timothy W. Manning to be
Deputy Administrator (for National Preparedness), Federal
Emergency Management Agency, U.S. Department of Homeland
Security. April 30, 2009. (S. Hrg. 111-637).
Nomination of Cass R. Sunstein to be Administrator, Office
of Information and Regulatory Affairs, Office of Management and
Budget. May 12, 2009. (S. Hrg. 111-463).
The Homeland Security Department's Budget Submission for
Fiscal Year 2010. May 12, 2009. May 12, 2009. (S. Hrg. 111-
980).
The D.C. Opportunity Scholarship Program: Preserving School
Choice for All. May 13, 2009. (S. Hrg. 111-814).
Nominations of David F. Heyman to be Assistant Secretary,
U.S. Department of Homeland Security, and Marisa J. Demeo and
Florence Y. Pan to be Associate Judges, Superior Court of the
District of Columbia. May 13, 2009. (S. Hrg. 111-767).
Nomination of Robert M. Groves to be Director of the
Census, U.S. Department of Commerce. May 15, 2009. (S. Hrg.
111-803).
Nomination of Hon. Rand Beers to be Under Secretary (for
National Protection and Programs), U.S. Department of Homeland
Security. June 2, 2009. (S. Hrg. 111-676).
Nomination of Martha N. Johnson to be Administrator,
General Services Administration. June 3, 2009. (S. Hrg. 111-
460).
Nominations of Hon. Tara J. O'Toole to be Under Secretary
for Science and Technology, U.S. Department of Homeland
Security, and Jeffrey D. Zients to be Deputy Director for
Management, Office of Management and Budget. June 10, 2009. (S.
Hrg. 111-838).
Examining State Business Incorporation Practices: A
Discussion of the Incorporation Transparency and Law
Enforcement Assistance Act. June 18, 2009. Business Formation
and Financial Crime: Finding a Legislative Solution. November
5, 2009. (S. Hrg. 111-953).
Type 1 Diabetes Research: Real Progress and Real Hope for a
Cure. June 24, 2009. (S. Hrg. 111-908).
The Federal Protective Service: Time For Reform. July 8,
2009. (S. Hrg. 111-686).
Identification Security: Reevaluating the REAL ID Act. July
15, 2009. (S. Hrg. 111-981).
Nominations of Hon. Christine M. Griffin to be Deputy
Director, Office of Personnel Management, and Stuart G. Nash to
be Associate Judge, Superior Court of the District of Columbia.
July 16, 2009. (S. Hrg. 111-687).
Nomination of Alexander G. Garza to be Assistant Secretary
and Chief Medical Officer, U.S. Department of Homeland
Security. July 28, 2009. (S. Hrg. 111-574).
Nominations of Hon. Ernest W. Dubester to be Member,
Federal Labor Relations Authority; Julia Atkins Clark to be
General Counsel, Federal Labor Relations Authority; and Rafael
Borras to be Under Secretary for Management, U.S. Department of
Homeland Security. July 29, 2009. (S. Hrg. 111-882).
Nomination of Kelvin J. Cochran to be Administrator, U.S.
Fire Administration, Federal Emergency Management Agency, U.S.
Department of Homeland Security. August 5, 2009. (S. Hrg. 111-
475).
Nomination of Daniel I. Werfel to be Controller, Office of
Federal Financial Management, Office of Management and Budget.
September 16, 2009. (S. Hrg. 111-575).
Nomination of Richard A. Serino to be Deputy Administrator,
Federal Emergency Management Agency, U.S. Department of
Homeland Security. September 16, 2009. (S. Hrg. 111-454).
World At Risk: The Weapons of Mass Destruction Prevention
and Preparedness Act of 2009. September 22, 2009. (S. Hrg. 111-
757).
Defense Contract Audit Agency: Who is Responsible for
Reform? September 23, 2009. (S. Hrg. 111-945).
Nomination of David S. Ferriero to be Archivist of the
United States, National Archives and Records Administration.
October 1, 2009. (S. Hrg. 111-555).
Domestic Partner Benefits: Fair Policy and Good Business
for the Federal Government. October 15, 2009. (S. Hrg. 111-
758).
Nominations of Susan Tsui Grundmann to be Chairman, Merit
Systems Protection Board, and Anne Marie Wagner to be Member,
Merit Systems Protection Board. October 20, 2009. (S. Hrg. 111-
452).
Presidential Advice and Senate Consent: The Past, Present,
and Future of Policy Czars. October 22, 2009. (S. Hrg. 111-
805).
Nominations of Erroll G. Southers to be Assistant
Secretary, U.S. Department of Homeland Security, and Daniel I.
Gordon to be Administrator for Federal Procurement Policy,
Office of Management and Budget. November 10, 2009. (S. Hrg.
111-852).
The Fort Hood Attack: A Preliminary Assessment. November
19, 2009. (S. Hrg. 111-810).
Nomination of Alan C. Kessler to be Governor, U.S. Postal
Service. November 19, 2009. (S. Hrg. 111-567).
Nomination of Caryn A. Wagner to be Under Secretary for
Intelligence and Analysis, U.S. Department of Homeland
Security. December 3, 2009. (S. Hrg. 111-568).
Five Years After the Intelligence Reform and Terrorism
Prevention Act: Stopping Terrorist Travel. December 9, 2009.
(S. Hrg. 111-957).
Nominations of Grayling G. Williams to be Director, Office
of Counternarcotics Enforcement, U.S. Department of Homeland
Security, and Elizabeth M. Harman to be Assistant
Administrator, Federal Emergency Management Agency, U.S.
Department of Homeland Security. December 10, 2009. (S. Hrg.
111-644).
Safeguarding the American Dream: Prospects for Our Economic
Future and Proposals to Secure it. December 17, 2009. (S. Hrg.
111-969).
Intelligence Reform: The Lessons and Implications of the
Christmas Day Attack, Part I. January 20, 2010. Intelligence
Reform: The Lessons and Implications of the Christmas Day
Attack, Part II. January 26, 2010. The Lessons and Implications
of the Christmas Day Attack: Watchlisting and Pre-Screening.
March 10, 2010. The Lessons and Implications of the Christmas
Day Attack: Intelligence Reform and Interagency Integration.
March 17, 2010. The Lessons and Implications of the Christmas
Day Attack: Securing the Visa Process. April 21, 2010. (S. Hrg.
111-1070).
The Homeland Security Department's Budget Submission for
Fiscal Year 2011. February 24, 2010. (S. Hrg. 111-1019).
Chemical Security: Assessing Progress and Charting a Path
Forward. March 3, 2010. (S. Hrg. 111-1020).
Nomination of Major General Robert A. Harding, Retired, to
be Assistant Secretary, U.S. Department of Homeland Security.
March 24, 2010. (S. Hrg. 111-1032).
Border Security: Moving Beyond the Virtual Fence. April 20,
2010. (S. Hrg. 111-1051).
Nominations of Hon. Dennis P. Walsh to be Chairman, Special
Panel on Appeals; Hon. Dana Katherine Bilyeu and Michael D.
Kennedy to be Members, Federal Retirement Thrift Investment
Board; and Milton C. Lee Jr., Judith Anne Smith, and Todd E.
Edelman to be Associate Judges, Superior Court of the District
of Columbia. April 20, 2010. (S. Hrg. 111-1037).
Terrorists and Guns: The Nature of the Threat and Proposed
Reforms. May 5, 2010. (S. Hrg. 111-1079).
Iran Sanctions: Why Does the U.S. Government Do Business
With Companies Doing Business In Iran? May 12, 2010. (S. Hrg.
111-1081).
Gulf Coast Catastrophe: Assessing the Nation's Response to
the Deepwater Horizon Oil Spill. May 17, 2010. (S. Hrg. 111-
1089).
Nomination of Dennis J. Toner to be Governor, U.S. Postal
Service. June 10, 2010. (S. Hrg. 111-1045).
Protecting Cyberspace as a National Asset: Comprehensive
Legislation for the 21st Century. June 15, 2010. Securing
Critical Infrastructure in the Age of Stuxnet. November 17,
2010. (S. Hrg. 111-1103).
Nomination of John S. Pistole to be Assistant Secretary,
U.S. Department of Homeland Security. June 17, 2010. (S. Hrg.
111-1082).
Nuclear Terrorism: Strengthening Our Domestic Defenses--
Parts I and II. June 30 and September 15, 2010. (S. Hrg. 111-
1096).
Charting a Path Forward: The Homeland Security Department's
Quadrennial Homeland Security Review and Bottom-Up Review. July
21, 2010. (S. Hrg. 111-1097).
Nomination of Hon. Jacob J. Lew to be Director, Office of
Management and Budget. September 16, 2010. (S. Hrg. 111-1090).
Nomination of Maria Elizabeth Raffinan to be Associate
Judge, Superior Court of the District of Columbia. September
21, 2010. (S. Hrg. 111-1050).
Nine Years After 9/11: Confronting the Terrorist Threat to
the Homeland. September 22, 2010. (S. Hrg. 111-1104)
Closing the Gaps in Air Cargo Security. November 16, 2010.
(S. Hrg. 111-1105).
Nomination of Eugene L. Dodaro to be Comptroller General of
the Unites States, U.S. Government Accountability Office.
November 18, 2010. (S. Hrg. 111-1076).
V. REPORTS, PRINTS, AND GAO REPORTS
During the 111th Congress, the Committee prepared and
issued 48 reports and six Committee Prints. Reports issued by
Committee are listed on the following bills.
COMMITTEE REPORTS
To reauthorize and improve the Federal Financial Assistance
Management Improvement Act of 1999. S. Rept. 111-7, re. S. 303.
To provide additional personnel authorities for the Special
Inspector General for Afghanistan Reconstruction. S. Rept. 111-
15, re. S. 615.
To amend chapter 22 of title 44, United States Code,
popularly known as the Presidential Records Act, to establish
procedures for the consideration of claims of constitutionally
based privilege against disclosure of Presidential records. S.
Rept. 111-21, re. H.R. 35.
To require the Administrator of the Federal Emergency
Management Agency to quickly and fairly address the abundance
of surplus manufactured housing units stored by the Federal
Government around the country at taxpayer expense. S. Rept.
111-23, re. S. 713.
To amend the American Recovery and Reinvestment Act to
provide for enhanced State and local oversight of activities
conducted under such Act, and for other purposes. S. Rept. 111-
56, re. S. 1064.
To amend chapter 81 of title 5, United States Code, to
create a presumption that a disability or death of a Federal
employee in the fire protection activities caused by any of
certain diseases is the result of the performance of such
employee's duty. S. Rept. 111-75, re. S. 599.
To prevent abuse of Government charge cards. S. Rept. 111-
76, re. S. 942.
To provide for the establishment, administration, and
funding of Federal Executive Boards, and for other purposes. S.
Rept. 111-77, re. S. 806.
To transfer statutory entitlements to pay and hours of work
authorized by the District of Columbia Code for current members
of the United States Secret Service Uniformed Division for the
District of Columbia Code to the Unites States Code. S. Rept.
111-86, re. S. 1510.
To provide that claims of the United States to certain
documents relating to Franklin Delano Roosevelt shall be
treated as waived and relinquished in certain circumstances. S.
Rept. 111-87, re. S. 692.
To provide for retirement equity for Federal employees in
nonforeign areas outside the 48 contiguous States and the
District of Columbia, and for other purposes. S. Rept. 111-88,
re. S. 507.
To establish a Deputy Secretary of Homeland Security for
Management, and for other purposes. S. Rept. 111-91, re. S.
872.
To amend chapter 23 of title 5, United States Code, to
clarify the disclosures of information protected from
prohibited personnel practices, require a statement in
nondisclosure policies, forms, and agreements that such
policies, forms, and agreements conform with certain disclosure
protections, provide certain authority for the Special Counsel,
and for other purposes. S. Rept. 111-101, re. S. 372.
To enhance citizen access to Government information and
services by establishing that Government documents issued to
the public must be written clearly, and for other purposes. S.
Rept. 111-102, re. S. 574.
To authorize appropriations for grants to States
participating in the Emergency Management Assistance Compact,
and for other purposes. S. Rept. 111-103, re. S. 1288.
To repeal title II of the REAL ID Act of 2005 and amend
title II of the Homeland Security Act of 2002 to better protect
the security, confidentiality, and integrity of personally
identifiable information collected by States when issuing
driver's licenses and identification documents, and for other
purposes. S. Rept. 111-104, re. S. 1261.
To direct the Department of Homeland Security to undertake
a study on emergency communications. S. Rept. 111-105, re. S.
1755.
To establish a fact-finding Commission to extend the study
of a prior Commission to investigate and determine facts and
circumstances surrounding the relocation, internment, and
deportation to Axis countries of Latin Americans of Japanese
descent from December 1941 through February 1948, and the
impact of those actions by the United States, and to recommend
appropriate remedies, and for other purposes. S. Rept. 111-112,
re. S. 69.
To reauthorize the Congressional Award Act (2 U.S.C. 801 et
seq.) and for other purposes. S. Rept. 111-163, re. S. 2865.
To establish the Chief Conservation Officers Council to
improve the energy efficiency of Federal agencies, and for
other purposes. S. Rept. 111-167, re. S. 1830.
To enhance the Federal Telework Program. S. Rept. 111-177,
re. S. 707.
To amend section 11317 of title 40, United States Code, to
improve the transparency of the status of information
technology investments, to require greater accountability for
cost overruns on Federal information technology investment
projects, to improve the processes agencies implement to manage
information technology acquisition, and for other purposes. S.
Rept. 111-179, re. S. 920.
To provide for improvements in the Federal hiring process,
and for other purposes. S. Rept. 111-184, re. S. 736.
To provide increased access to the General Services
Administration's Schedules Program by the American Red Cross
and State and local governments. S. Rept. 111-192, re. S. 2868.
To require the Secretary of Homeland Security to develop a
strategy to prevent the over-classification of homeland
security and other information and to promote the sharing of
unclassified homeland security and other information, and for
other purposes. S. Rept. 111-200, re. H.R. 553.
To amend chapter 89 of title 5, United States Code, to
reform Postal Service retiree health benefits funding, and for
other purposes. S. Rept. 111-203, re. S. 1507.
To authorize appropriations for the National Historical
Publications and Records Commission through fiscal year 2014,
and for other purposes. S. Rept. 111-213, re. S. 2872.
To amend the Robert T. Stafford Disaster Relief and
Emergency Assistance Act to reauthorize the predisaster hazard
mitigation program, and for other purposes. S. Rept. 111-215,
re. S. 3249.
To provide that certain Secret Service employees may elect
to transition to coverage under the District of Columbia Police
and Fire Fighter Retirement and Disability System. S. Rept.
111-231, re. S. 1862.
To provide for the issuance of a Multinational Species
Conservation Funds Semipostal Stamp. S. Rept. 111-234, re. H.R.
1454.
To improve the provision of assistance to fire departments,
and for other purposes. S. Rept. 111-235, re. S. 3267.
To amend the Presidential Transition Act of 1963 to provide
that certain transition services shall be available to eligible
candidates before the general election. S. Rept. 111-239, re.
S. 3196.
To allow certain U.S. Customs and Border Protection
employees who serve under an overseas limited appointment for
at least 2 years, and whose services is rated fully successful
or higher throughout that time, to be converted to a permanent
appointment in the competitive service. S. Rept. 111-248, re.
H.R. 1517.
To provide for identifying and eliminating redundant
reporting requirements and developing meaningful performance
metrics for homeland security preparedness grants, and for
other purposes. S. Rept. 111-291, re. H.R. 3980.
To amend the National Children's Island Act of 1995 to
expand allowable uses for Kingman and Heritage Islands by the
District of Columbia, and for other purposes. S. Rept. 111-300,
re. H.R. 2092.
To require U.S. Customs and Border Protection to administer
polygraph examinations to all applicants for law enforcement
positions with U.S. Customs and Border Protection, to require
U.S. Customs and Border Protection to complete all periodic
background reinvestigations of certain law enforcement
personnel, and for other purposes. S. Rept. 111-338, re. S.
3243.
To amend title 5, United States Code, to eliminate the
discriminatory treatment of the District of Columbia under
provisions of law commonly referred to as the ``Hatch Act.'' S.
Rept. 111-339, re. H.R. 1345.
To amend title 31, United States Code, to enhance the
oversight authorities of the Comptroller General, and for other
purposes. S. Rept. 111-350, re. S. 2991.
To amend title 13 of the United States Code to provide for
a 5-year term of office for the Director of the Census and to
provide for authority and duties of the Director and Deputy
Director of the Census, and for other purposes. S. Rept. 111-
351, re. S. 3167.
Activities of the Committee on Homeland Security and
Governmental Affairs. S. Rept. 111-360.
To amend chapter 41 of title 5, United States Code, to
provide for the establishment and authorization of funding for
certain training programs for supervisors of Federal employees.
S. Rept. 111-364, re. S. 674.
To require Congress to establish a unified and searchable
database on a public Web site for congressional earmarks as
called for by the President in his 2010 State of the Union
Address to Congress. S. Rept. 111-365, re. S. 3335.
To amend the Homeland Security Act of 2002 and other laws
to enhance the security and resiliency of the cyber and
communications infrastructure of the United States. S. Rept.
111-368, re. S. 3480.
To amend the Homeland Security Act of 2002 to enhance
security and protect against acts of terrorism against chemical
facilities, to amend the Safe Drinking Water Act to enhance the
security of public water systems, and to amend the Federal
Water Pollution Control Act to enhance the security of
wastewater treatment works, and for other purposes. S. Rept.
111-370, re. H.R. 2868.
To require quarterly performance assessments of Government
programs for purposes of assessing agency performance and
improvement, and to establish agency performance improvement
officers and the Performance Improvement Council. S. Rept. 111-
372, re. H.R. 2142.
To amend chapter 21 of title 5, United States Code, to
provide that fathers of certain permanently disabled or
deceased veterans shall be included with mothers of such
veterans as preference eligible for treatment in the civil
service. S. Rept. 111-374, re. S. 3650.
To provide benefits to domestic partners of Federal
employees. S. Rept. 111-376, re. S. 1102.
To prevent the proliferation of weapons of mass
destruction, to prepare for attacks using weapons of mass
destruction, and for other purposes. S. Rept. 111-377, re. S.
1649.
COMMITTEE PRINTS
The Committee issued the following Committee Prints during
the 111th Congress:
Rules of Procedure. Committee on Homeland Security and
Governmental Affairs. (Printed. 36 pp. S. Prt. 111-12.)
Rules of Procedure. Permanent Subcommittee on
Investigations. (Printed. 18 pp. S. Prt. 111-13.)
Organization of Federal Executive Departments and Agencies.
Agencies and Functions of the Federal Government Established,
Abolished, Continued, Modified, reorganized, Extended,
Transferred, or Changed in Name by Legislative or Executive
Action During Calendar Years 2007 and 2008. (Prepared by the
Office of the Federal Register, National Archives and Records
Administration for the Committee on Homeland Security and
Governmental Affairs.) (Printed. 29 pp. S. Prt. 111-25)
Rules of Procedure. Committee on Homeland Security and
Governmental Affairs. (Printed. 36 pp. S. Prt. 111-31.)
(Revised)
Rules of Procedure. Permanent Subcommittee on
Investigations. (Printed. 18 pp. S. Prt. 111-32.) (Revised)
Legislative Calendar for the 111th Congress, (Printed. 174
pp. S. Prt. 111-63.) (December 31, 2011).
GAO REPORTS
Also during the 111th Congress, the Government
Accountability Office (GAO) issued 176 reports at the request
of the Committee. GAO reports requested by the Subcommittees
appear in their respective sections. Reports are listed here by
title, GAO number, and release date.
Financial Regulation: A Framework for Crafting and
Assessing Proposals to Modernize the Outdated U.S. Financial
Regulatory System. GAO-09-216. January 08, 2009.
Defense Logistics: Lack of Key Information May Impede DOD's
Ability to Improve Supply Chain Management. GAO-09-150. January
12, 2009.
Aviation Security: Federal Air Marshal Service Has Taken
Actions to Fulfill Its Core Mission and Address Workforce
Issues, but Additional Actions Are Needed to Improve Workforce
Survey. GAO-09-273. January 14, 2009.
Nuclear Detection: Domestic Nuclear Detection Office Should
Improve Planning to Better Address Gaps and Vulnerabilities.
GAO-09-257. January 29, 2009.
Military Base Realignments and Closures: DOD Faces
Challenges in Implementing Recommendations on Time and Is Not
Consistently Updating Savings Estimates. GAO-09-217. January
30, 2009.
Immigration Enforcement: Better Controls Needed over
Program Authorizing State and Local Enforcement of Federal
Immigration Laws. GAO-09-109. January 30, 2009.
Veterinarian Workforce: Actions Are Needed to Ensure
Sufficient Capacity for Protecting Public and Animal Health.
GAO-09-178. February 04, 2009.
Small Business Administration: Additional Guidance on
Documenting Credit Elsewhere Decisions Could Improve 7(a)
Program Oversight. GAO-09-228. February 12, 2009.
Bank Secrecy Act: Federal Agencies Should Take Action to
Further Improve Coordination and Information-Sharing Efforts.
GAO-09-227. February 12, 2009.
Older Workers: Enhanced Communication among Federal
Agencies Could Improve Strategies for Hiring and Retaining
Experienced Workers. GAO-09-206. February 24, 2009.
Nuclear Nonproliferation: Strengthened Oversight Needed to
Address Proliferation and Management Challenges in IAEA's
Technical Cooperation Program. GAO-09-275. March 05, 2009.
Information Technology: Census Bureau Testing of 2010
Decennial Systems Can Be Strengthened. GAO-09-262. March 05,
2009.
2008 Lobbying Disclosure: Observations on Lobbyists'
Compliance with Disclosure Requirements. GAO-09-487. April 01,
2009.
Foreign Aid Reform: Comprehensive Strategy, Interagency
Coordination, and Operational Improvements Would Bolster
Current Efforts. GAO-09-192. April 17, 2009.
Iraqi Refugee Assistance: Improvements Needed in Measuring
Progress, Assessing Needs, Tracking Funds, and Developing an
International Strategic Plan. GAO-09-120. April 21, 2009.
Recovery Act: As Initial Implementation Unfolds in States
and Localities, Continued Attention to Accountability Issues Is
Essential. GAO-09-580. April 23, 2009.
National Preparedness: FEMA Has Made Progress, but Needs to
Complete and Integrate Planning, Exercise, and Assessment
Efforts. GAO-09-36. April 30, 2009.
Financial Management: Achieving Financial Statement
Auditability in the Department of Defense. GAO-09-373. May 06,
2009.
Financial Management Systems: OMB's Financial Management
Line of Business Initiative Continues but Future Success
Remains Uncertain. GAO-09-328. May 07, 2009.
Regulation SHO: Recent Actions Appear to Have Initially
Reduced Failures to Deliver, but More Industry Guidance Is
Needed. GAO-09-483. May 12, 2009.
Aviation Security: TSA Has Completed Key Activities
Associated with Implementing Secure Flight, but Additional
Actions Are Needed to Mitigate Risks. GAO-09-29. May 13, 2009.
DOD Personnel Clearances: Comprehensive Timeliness
Reporting, Complete Clearance Documentation, and Quality
Measures Are Needed to Further Improve the Clearance Process.
GAO-09-400. May 19, 2009.
Combating Nuclear Smuggling: DHS Improved Testing of
Advanced Radiation Detection Portal Monitors, but Preliminary
Results Show Limits of the New Technology. GAO-09-655. May 21,
2009.
Federal Contracting: Guidance on Award Fees Has Led to
Better Practices but Is Not Consistently Applied. GAO-09-630.
May 29, 2009.
Rebuilding Iraq: Improved Management Controls and Iraqi
Commitment Needed for Key State and USAID Capacity-Building
Programs. GAO-09-526. June 03, 2009.
Alaska Native Villages: Limited Progress Has Been Made on
Relocating Villages Threatened by Flooding and Erosion. GAO-09-
551. June 03, 2009.
Influenza Pandemic: Increased Agency Accountability Could
Help Protect Federal Employees Serving the Public in the Event
of a Pandemic. GAO-09-404. June 12, 2009.
Hurricanes Gustav and Ike Disaster Assistance: FEMA
Strengthened Its Fraud Prevention Controls, but Customer
Service Needs Improvement. GAO-09-671. June 19, 2009.
Gulf Coast Disaster Recovery: Community Development Block
Grant Program Guidance to States Needs to Be Improved. GAO-09-
541. June 19, 2009.
Contract Management: Minimal Compliance with New Safeguards
for Time-and-Materials Contracts for Commercial Services and
Safeguards Have Not Been Applied to GSA Schedules Program. GAO-
09-579. June 24, 2009.
District of Columbia Public Schools: Important Steps Taken
to Continue Reform Efforts, But Enhanced Planning Could Improve
Implementation and Sustainability. GAO-09-619. June 26, 2009.
Information Technology: Federal Agencies Need to Strengthen
Investment Board Oversight of Poorly Planned and Performing
Projects. GAO-09-566. June 30, 2009.
Highway Trust Fund Expenditures on Purposes Other than
Construction and Maintenance of Highways and Bridges during
Fiscal Years 2004-2008. GAO-09-729. June 30, 2009.
Biosafety Laboratories: BSL-4 Laboratories Improved
Perimeter Security Despite Limited Action by CDC. GAO-09-851.
July 07, 2009.
Recovery Act: States' and Localities' Current and Planned
Uses of Funds While Facing Fiscal Stresses. GAO-09-829. July
08, 2009.
Disaster Assistance: Greater Coordination and an Evaluation
of Programs' Outcomes Could Improve Disaster Case Management.
GAO-09-561. July 08, 2009.
Hurricane Katrina: Federal Grants Have Helped Health Care
Organizations Provide Primary Care, but Challenges Remain. GAO-
09-588. July 13, 2009.
Hurricane Katrina: Barriers to Mental Health Services for
Children Persist in Greater New Orleans, Although Federal
Grants Are Helping to Address Them. GAO-09-563. July 13, 2009.
U.S. Postal Service: Mail Delivery Efficiency Has Improved,
but Additional Actions Needed to Achieve Further Gains. GAO-09-
696. July 15, 2009.
State Department: Key Transformation Practices Could Have
Helped in Restructuring Arms Control and Nonproliferation
Bureaus. GAO-09-738. July 15, 2009.
Grants Management: Grants.gov Has Systematic Weaknesses
That Require Attention. GAO-09-589. July 15, 2009.
Information Security: Agencies Continue to Report Progress,
but Need to Mitigate Persistent Weaknesses. GAO-09-546. July
17, 2009.
Project Bioshield: HHS Can Improve Agency Internal Controls
for Its New Contracting Authorities. GAO-09-820. July 21, 2009.
Improper Payments: Significant Improvements Needed in DOD's
Efforts to Address Improper Payment and Recovery Auditing
Requirements. GAO-09-442. July 29, 2009.
Homeland Security: Federal Protective Service Should
Improve Human Capital Planning and Better Communicate with
Tenants. GAO-09-749. July 30, 2009.
Disaster Recovery: Experiences from Past Disasters Offer
Insights for Effective Collaboration after Catastrophic Events.
GAO-09-811. July 31, 2009.
Contingency Contract Management: DOD Needs to Develop and
Finalize Background Screening and Other Standards for Private
Security Contractors. GAO-09-351. July 31, 2009.
Equal Employment Opportunity: Pilot Projects Could Help
Test Solutions to Long-standing Concerns with the EEO Complaint
Process. GAO-09-712. August 12, 2009.
Results-Oriented Management: Strengthening Key Practices at
FEMA and Interior Could Promote Greater Use of Performance
Information. GAO-09-676. August 17, 2009.
Emergency Communications: National Communications System
Provides Programs for Priority Calling, but Planning for New
Initiatives and Performance Measurement Could be Strengthened.
GAO-09-822. August 28, 2009.
Disaster Housing: FEMA Needs More Detailed Guidance and
Performance Measures to Help Ensure Effective Assistance after
Major Disasters. GAO-09-796. August 28, 2009.
Medicaid: Fraud and Abuse Related to Controlled Substances
Identified in Selected States. GAO-09-957. September 09, 2009.
Homeland Defense: U.S. Northern Command Has a Strong
Exercise Program, but Involvement of Interagency Partners and
States Can Be Improved. GAO-09-849. September 09, 2009.
Fannie Mae and Freddie Mac: Analysis of Options for
Revising the Housing Enterprises' Longterm Structures. GAO-09-
782. September 10, 2009.
Information Security: Concerted Effort Needed to Improve
Federal Performance Measures. GAO-09-617. September 14, 2009.
Department of State: Comprehensive Plan Needed to Address
Persistent Foreign Language Shortfalls. GAO-09-955. September
17, 2009.
Department of State: Additional Steps Needed to Address
Continuing Staffing and Experience Gaps at Hardship Posts. GAO-
09-874. September 17, 2009.
High-Containment Laboratories: National Strategy for
Oversight Is Needed. GAO-09-574. September 21, 2009.
Credit Cards: Fair Debt Collection Practices Act Could
Better Reflect the Evolving Debt Collection Marketplace and Use
of Technology. GAO-09-748. September 21, 2009.
Recovery Act: Funds Continue to Provide Fiscal Relief to
States and Localities, While Accountability and Reporting
Challenges Need to Be Fully Addressed. GAO-09-1016. September
23, 2009.
DCAA Audits: Widespread Problems with Audit Quality Require
Significant Reform. GAO-09-468. September 23, 2009.
Continuing Resolutions: Uncertainty Limited Management
Options and Increased Workload in Selected Agencies. GAO-09-
879. September 24, 2009.
Contingency Contracting: DOD, State, and USAID Continue to
Face Challenges in Tracking Contractor Personnel and Contracts
in Iraq and Afghanistan. GAO-10-1. October 01, 2009.
Homeland Defense: Planning, Resourcing, and Training Issues
Challenge DOD's Response to Domestic Chemical, Biological,
Radiological, Nuclear, and High-Yield Explosive Incidents. GAO-
10-123. October 07, 2009.
Information Technology: Agencies Need to Improve the
Implementation and Use of Earned Value Techniques to Help
Manage Major System Acquisitions. GAO-10-2. October 08, 2009.
Centers for Medicare and Medicaid Services: Deficiencies in
Contract Management Internal Control Are Pervasive. GAO-10-60.
October 23, 2009.
Human Capital: Monitoring of Safeguards and Addressing
Employee Perceptions Are Key to Implementing a Civilian
Performance Management System in DOD. GAO-10-102. October 28,
2009.
Public Safety Officers' Benefits Program: Performance
Measurement Would Strengthen Accountability and Enhance
Awareness Among Potential Claimants. GAO-10-5. October 29,
2009.
Supply Chain Security: Feasibility and Cost-Benefit
Analysis Would Assist DHS and Congress in Assessing and
Implementing the Requirement to Scan 100 Percent of U.S.-Bound
Containers. GAO-10-12. October 30, 2009.
State Department: Diplomatic Security's Recent Growth
Warrants Strategic Review. GAO-10-156. November 12, 2009.
2010 Census: Census Bureau Has Made Progress on Schedule
and Operational Control Tools, but Needs to Prioritize
Remaining System Requirements. GAO-10-59. November 13, 2009.
UN Office for Project Services: Management Reforms
Proceeding but Effectiveness Not Assessed, and USAID's
Oversight of Grants Has Weaknesses. GAO-10-168. November 19,
2009.
Recovery Act: Recipient Reported Jobs Data Provide Some
Insight into Use of Recovery Act Funding, but Data Quality and
Reporting Issues Need Attention. GAO-10-223. November 19, 2009.
Department of Homeland Security: Actions Taken Toward
Management Integration, but a Comprehensive Strategy Is Still
Needed. GAO-10-131. November 20, 2009.
Program Evaluation: A Variety of Rigorous Methods Can Help
Identify Effective Interventions. GAO-10-30. November 23, 2009.
Financial Management Systems: DHS Faces Challenges to
Successfully Consolidating Its Existing Disparate Systems. GAO-
10-76. December 04, 2009.
Formula Grants: Funding for the Largest Federal Assistance
Programs Is Based on Census-Related Data and Other Factors.
GAO-10-263. December 15, 2009.
Biosurveillance: Developing a Collaboration Strategy Is
Essential to Fostering Interagency Data and Resource Sharing.
GAO-10-171. December 18, 2009.
Disaster Assistance: Federal Assistance for Permanent
Housing Primarily Benefited Homeowners; Opportunities Exist to
Better Target Rental Housing Needs. GAO-10-17. January 14,
2010.
Results-Oriented Cultures: Office of Personnel Management
Should Review Administrative Law Judge Program to Improve
Hiring and Performance Management. GAO-10-14. January 15, 2010.
Recovery Act: IRS Quickly Implemented Tax Provisions, but
Reporting and Enforcement Improvements Are Needed. GAO-10-349.
February 10, 2010.
Recovery Act: One Year Later, States' and Localities' Uses
of Funds and Opportunities to Strengthen Accountability. GAO-
10-437. March 03, 2010.
Energy Star Program: Covert Testing Shows the Energy Star
Program Certification Process Is Vulnerable to Fraud and Abuse.
GAO-10-470. March 05, 2010.
Iraq: Iraqi Refugees and Special Immigrant Visa Holders
Face Challenges Resettling in the United States and Obtaining
U.S. Government Employment. GAO-10-274. March 09, 2010.
Information Security: Concerted Effort Needed to
Consolidate and Secure Internet Connections at Federal
Agencies. GAO-10-237. March 12, 2010.
Information Security: Agencies Need to Implement Federal
Desktop Core Configuration Requirements. GAO-10-202. March 12,
2010.
Electronic Government: Implementation of the Federal
Funding Accountability and Transparency Act of 2006. GAO-10-
365. March 12, 2010.
Homeland Defense: DOD Needs to Take Actions to Enhance
Interagency Coordination for Its Homeland Defense and Civil
Support Missions. GAO-10-364. March 30, 2010.
Homeland Defense: DOD Can Enhance Efforts to Identify
Capabilities to Support Civil Authorities during Disasters.
GAO-10-386. March 30, 2010.
Disaster Recovery: FEMA's Long-term Assistance Was Helpful
to State and Local Governments but Had Some Limitations. GAO-
10-404. March 30, 2010.
2009 Lobbying Disclosure: Observations on Lobbyists'
Compliance with Disclosure Requirements. GAO-10-499. April 01,
2010.
U.S. Postal Service: Strategies and Options to Facilitate
Progress toward Financial Viability. GAO-10-455. April 12,
2010.
Contingency Contracting: Improvements Needed in Management
of Contractors Supporting Contract and Grant Administration in
Iraq and Afghanistan. GAO-10-357. April 12, 2010.
Homeland Security: Federal Protective Service's Contract
Guard Program Requires More Oversight and Reassessment of Use
of Contract Guards. GAO-10-341. April 13, 2010.
International Security: DOD and State Need to Improve
Sustainment Planning and Monitoring and Evaluation for Section
1206 and 1207 Assistance Programs. GAO-10-431. April 15, 2010.
Domestic Food Assistance: Complex System Benefits Millions,
but Additional Efforts Could Address Potential Inefficiency and
Overlap among Smaller Programs. GAO-10-346. April 15, 2010.
Language Access: Selected Agencies Can Improve Services to
Limited English Proficient Persons. GAO-10-91. April 26, 2010.
Nuclear Safety: Convention on Nuclear Safety Is Viewed by
Most Member Countries as Strengthening Safety Worldwide. GAO-
10-489. April 29, 2010.
Contracting Strategies: Data and Oversight Problems Hamper
Opportunities to Leverage Value of Interagency and
Enterprisewide Contracts. GAO-10-367. April 29, 2010.
Streamlining Government: Opportunities Exist to Strengthen
OMB's Approach to Improving Efficiency. GAO-10-394. May 07,
2010.
Recovery Act: States' and Localities' Uses of Funds and
Actions Needed to Address Implementation Challenges and Bolster
Accountability. GAO-10-604. May 26, 2010.
Information Security: Federal Guidance Needed to Address
Control Issues with Implementing Cloud Computing. GAO-10-513.
May 27, 2010.
Department of Homeland Security: DHS Needs to
Comprehensively Assess Its Foreign Language Needs and
Capabilities and Identify Shortfalls. GAO-10-714. June 22,
2010.
Social Security Administration: Cases of Federal Employees
and Transportation Drivers and Owners Who Fraudulently and/or
Improperly Received SSA Disability Payments. GAO-10-444. June
25, 2010.
Personnel Practices: Conversions of Employees from
Political to Career Positions May 2005-May 2009. GAO-10-688.
June 28, 2010.
Foreign Assistance: USAID Needs to Improve Its Strategic
Planning to Address Current and Future Workforce Needs. GAO-10-
496. June 30, 2010.
Biosurveillance: Efforts to Develop a National
Biosurveillance Capability Need a National Strategy and a
Designated Leader. GAO-10-645. June 30, 2010.
Afghanistan Development: Enhancements to Performance
Management and Evaluation Efforts Could Improve USAID's
Agricultural Programs. GAO-10-368. July 14, 2010.
Information Technology: OMB's Dashboard Has Increased
Transparency and Oversight, but Improvements Needed. GAO-10-
701. July 16, 2010.
Border Security: CBP Lacks the Data Needed to Assess the
FAST Program at U.S. Northern Border Ports. GAO-10-694. July
19, 2010.
Military Naturalizations: USCIS Generally Met Mandated
Processing Deadlines, but Processing Applicants Deployed
Overseas Is a Challenge. GAO-10-865. July 29, 2010.
Hurricane Recovery: Federal Government Provided a Range of
Assistance to Nonprofits following Hurricanes Katrina and Rita.
GAO-10-800. July 30, 2010.
Homeland Security: Addressing Weaknesses with Facility
Security Committees Would Enhance Protection of Federal
Facilities. GAO-10-901. August 05, 2010.
Privacy: OPM Should Better Monitor Implementation of
Privacy-Related Policies and Procedures for Background
Investigations. GAO-10-849. September 07, 2010.
Financial Management Systems: Experience with Prior
Migration and Modernization Efforts Provides Lessons Learned
for New Approach. GAO-10-808. September 08, 2010.
Contractor Integrity: Stronger Safeguards Needed for
Contractor Access to Sensitive Information. GAO-10-693.
September 10, 2010.
Iraqi-U.S. Cost-Sharing: Iraq Has a Cumulative Budget
Surplus, Offering the Potential for Further Cost-Sharing. GAO-
10-304. September 13, 2010.
Recovery Act: Opportunities to Improve Management and
Strengthen Accountability over States' and Localities' Uses of
Funds. GAO-10-999. September 20, 2010.
Public Transit Security Information Sharing: DHS Could
Improve Information Sharing through Streamlining and Increased
Outreach. GAO-10-89. September 22, 2010.
Child Care and Development Fund: Undercover Tests Show Five
State Programs Are Vulnerable to Fraud and Abuse. GAO-10-1062.
September 22, 2010.
Head Start: Undercover Testing Finds Fraud and Abuse at
Selected Head Start Centers. GAO-10-1049. September 28, 2010.
Information Sharing: Federal Agencies Are Helping Fusion
Centers Build and Sustain Capabilities and Protect Privacy, but
Could Better Measure Results. GAO-10-972. September 29, 2010.
U.S. Employment in the United Nations: State Department
Needs to Enhance Reporting Requirements and Evaluate Its
Efforts to Increase U.S. Representation. GAO-10-102. September
30, 2010.
Iraq and Afghanistan: DOD, State, and USAID Face Continued
Challenges in Tracking Contracts, Assistance Instruments, and
Associated Personnel. GAO-11-1. October 01, 2010.
DOD Business Transformation: Improved Management Oversight
of Business System Modernization Efforts Needed. GAO-11-53.
October 07, 2010.
Managing For Results: Opportunities to Strengthen Agencies'
Customer Service Efforts. GAO-11-44. October 27, 2010.
Live Animal Imports: Agencies Need Better Collaboration to
Reduce the Risk of Animal-Related Diseases. GAO-11-9. November
08, 2010.
National Security: An Overview of Professional Development
Activities Intended to Improve Interagency Collaboration. GAO-
11-108. November 15, 2010.
Afghanistan Development: U.S. Efforts to Support Afghan
Water Sector Increasing, but Improvements Needed in Planning
and Coordination. GAO-11-138. November 15, 2010.
District of Columbia Public Education: Agencies Have
Enhanced Internal Controls Over Federal Payments for School
Improvement, But More Consistent Monitoring Needed. GAO-11-16.
November 18, 2010.
Border Security: Additional Actions Needed to Better Ensure
a Coordinated Federal Response to Illegal Activity on Federal
Lands. GAO-11-177. November 18, 2010.
Displaced Iraqis: Integrated International Strategy Needed
to Reintegrate Iraq's Internally Displaced and Returning
Refugees. GAO-11-12. December 02, 2010.
2010 Census: Key Efforts to Include Hard-to-Count
Populations Went Generally as Planned; Improvements Could Make
the Efforts More Effective for Next Census. GAO-11-45. December
14, 2010.
2010 Census: Follow-up Should Reduce Coverage Errors, but
Effects on Demographic Groups Need to Be Determined. GAO-11-
154. December 14, 2010.
2010 Census: Data Collection Operations Were Generally
Completed as Planned, but Longstanding Challenges Suggest Need
for Fundamental Reforms. GAO-11-193. December 14, 2010.
Recovery Act: Head Start Grantees Expand Services, but More
Consistent Communication Could Improve Accountability and
Decisions about Spending. GAO-11-166. December 15, 2010.
Federal Work/Life Programs: Agencies Generally Satisfied
with OPM Assistance, but More Tracking and Information Sharing
Needed. GAO-11-137. December 16, 2010.
Public Health Information Technology: Additional Strategic
Planning Needed to Guide HHS's Efforts to Establish Electronic
Situational Awareness Capabilities. GAO-11-99. December 17,
2010.
Border Security: Enhanced DHS Oversight and Assessment of
Interagency Coordination Is Needed for the Northern Border.
GAO-11-97. December 17, 2010.
VI. OFFICIAL COMMUNICATIONS
During the 111th Congress, 964 official communications were
referred to the Committee. Of these, 957 were Executive
Communications, six were Petitions or Memorials, and one was a
Presidential Message. Of the official communications, 440 dealt
with the District of Columbia.
VII. LEGISLATIVE ACTIONS
During the 111th Congress, the Committee reported
significant legislation that was approved by Congress and
signed into law by the President.
The following are brief legislative histories of measures
to the Committee and, in some cases, drafted by the Committee,
which (1) became public law or (2) were favorably reported from
the Committee and passed by the Senate, but did not become law.
In addition to the measures listed below, the Committee
received during the 111th Congress numerous legislative
proposals that were not considered or reported, or that were
reported but not passed by the Senate. Additional information
on these measures appear in the Committee's Legislative
Calendar for the 111th Congress, S. Prt. 111-63, (December 31,
2011).
measures enacted into law
The following measures considered by the Committee were
enacted into Public Law. The descriptions following the signing
date of each measure note selected provisions of the text, and
are not intended to serve as section-by-section summaries.
H.R. 553.--To require the Secretary of Homeland Security to
develop a strategy to prevent the over-classification of
homeland security and other information and to promote the
sharing of unclassified homeland security and other
information, and for other purposes. (Public Law 111-258).
October 7, 2010.
Amends the Homeland Security Act of 2002 (HSA) to direct
the Secretary of Homeland Security (DHS) to designate a
Classified Information Advisory Officer to develop and
disseminate educational materials and to develop and administer
training programs to assist state, local, and tribal
governments (including law enforcement agencies) and private
sector entities: (1) in developing plans and policies to
respond to requests related to classified information without
communicating such information to individuals who lack
appropriate security clearances; (2) regarding the appropriate
procedures for challenging classification designations of
information received by personnel of such entities; and (3) on
the means by which such personnel may apply for security
clearances. Directs such Officer to inform the Under Secretary
for Intelligence and Analysis on policies and procedures that
could facilitate the sharing of classified information with
such personnel.
H.R. 730.--To strengthen efforts in the Department of
Homeland Security to develop nuclear forensics capabilities to
permit attribution of the source of nuclear material, and for
other purposes. (Public Law 111-140). February 16, 2010.
Expresses the sense of Congress that the President should:
(1) pursue bilateral and multilateral international agreements
to establish an international framework for determining the
source of any confiscated nuclear or radiological material or
weapon, as well as the source of any detonated weapon and the
nuclear or radiological material used in such a weapon; (2)
develop protocols for the data exchange and dissemination of
sensitive information relating to nuclear or radiological
materials and samples of controlled nuclear or radiological
materials to the extent required by such agreements; and (3)
develop expedited protocols for the data exchange and
dissemination of sensitive information needed to publicly
identify the source of a nuclear detonation.
H.R. 1454.--To provide for the issuance of a Multinational
Species Conservation Funds Semipostal Stamp. (Public Law 111-
241). September 30, 2010.
Requires the United States Postal Service to issue and
sell, at a premium, a Multinational Species Conservation Funds
Semipostal Stamp. Requires the use of such a stamp to be
voluntary on the part of postal patrons.
H.R. 1517.--To allow certain U.S. Customs and Border
Protection employees who serve under an overseas limited
appointment for at least 2 years, and whose service is rated
fully successful or higher throughout that time, to be
converted to a permanent appointment in the competitive
service. (Public Law 111-252). October 5, 2010.
Authorizes the Commissioner of U.S. Customs and Border
Protection (CBP) to convert an employee serving under an
overseas limited appointment for at least 2 years of current
continuous service, whose service is rated at least fully
successful throughout that time, to a permanent appointment in
the competitive service.
H.R. 1722.--To require the head of each executive agency to
establish and implement a policy under which employees shall be
authorized to telework, and for other purposes. (Public Law
111-292). December 9, 2010.
Requires the head of each executive agency to: (1)
establish a policy under which eligible agency employees may be
authorized to telework; (2) determine employee eligibility to
participate in telework; and (3) notify all employees of their
eligibility to telework.
H.R. 1746.--To amend the Robert T. Stafford Disaster Relief
and Emergency Assistance Act to reauthorize the pre-disaster
mitigation program of the Federal Emergency Management Agency.
(Public Law 111-351). January 4, 2011.
Amends the Robert T. Stafford Disaster Relief and Emergency
Assistance Act to: (1) increase the amount guaranteed to each
State under the predisaster hazard mitigation program to
$575,000; (2) require the President to award financial
assistance under the program on a competitive basis; (3)
eliminate the current termination date for such program
(September 30, 2010); and (4) authorize appropriations for the
program through FY2013.
H.R. 2142.--To require quarterly performance assessments of
Government programs for purposes of assessing agency
performance and improvement, and to establish agency
performance improvement officers and the Performance
Improvement Council. (Public Law 111-352). January 4, 2011.
Requires the Director of OMB to coordinate with agencies to
develop a Federal Government performance plan, which shall be
submitted with the annual Federal budget and concurrently made
available on an OMB Web site of agency programs. Requires such
plan to: (1) establish government performance goals for the
current and next fiscal years; (2) identify activities,
entities, and policies contributing to each goal; (3) identify
a lead government official responsible for coordinating efforts
to achieve the goal; (4) establish common Federal Government
performance indicators with quarterly targets; (5) establish
clearly defined quarterly milestones; and (6) identify major
management challenges and plans to address such challenges.
Directs each agency to make its annual performance plan
available on its public Web site and notify the President and
Congress by the first Monday in February.
H.R. 2711.--An act to amend title 5, United States Code, to
provide for the transportation and moving expenses for the
immediate family of certain Federal employees who die in the
performance of their duties. (Public Law 111-178). June 9,
2010.
Authorizes the head of the concerned agency to pay the
transportation (including one privately owned motor vehicle)
and moving expenses attributable to a change of residence
within the United States of the immediate family of a covered
employee, including any Federal law enforcement officer,
Federal Bureau of Investigation employee, or customs and border
protection officer, who dies as a result of personal injury
sustained while in the performance of duties, as well as
expenses of preparing and transporting the remains of the
deceased to the place where the family will reside following
the employee's death (or another appropriate place for
interment).
H.R. 3978.--An act to amend the Homeland Security Act of
2002 to authorize the Secretary of Homeland Security to accept
and use gifts for otherwise authorized activities of the Center
for Domestic Preparedness that are related to preparedness for
a response to terrorism, and for other purposes. (Public Law
111-245). September 30, 2010.
Amends the Homeland Security Act of 2002 to: (1) authorize
the Secretary of Homeland Security (DHS) to accept gifts of
property and services for otherwise authorized activities of
the Center for Domestic Preparedness that are related to
efforts to prevent, prepare for, protect against, or respond to
a natural disaster, act of terrorism, or other man-made
disaster; (2) prohibit the Secretary from accepting a gift upon
determining that the use of the property or services would
compromise the integrity or appearance of integrity of a DHS
program or an individual involved in a DHS program; and (3)
require the Secretary to report to Congress annually disclosing
such gifts, how they contribute to the Center's mission, and
the amount of Federal savings generated.
H.R. 3980.--To provide for identifying and eliminating
redundant reporting requirements and developing meaningful
performance metrics for homeland security preparedness grants,
and for other purposes. (Public Law 111-271). October 12, 2010.
Amends the Homeland Security Act of 2002 to direct the
Administrator of the Federal Emergency Management Agency to
submit to the appropriate congressional committees not later
than 90 days after this Act's enactment a report that includes:
(1) an assessment of redundant reporting requirements imposed
by the Administrator on state, local, and tribal governments in
connection with the awarding of covered grants; (2) a plan for
eliminating any redundant and unnecessary reporting
requirements identified; and (3) a plan for promptly developing
a set of quantifiable performance measures and metrics to
assess the effectiveness of the programs under which the grants
are awarded.
H.R. 4621.--To protect the integrity of the
constitutionally-mandated United States census and prohibit
deceptive mail practices that attempt to exploit the decennial
census. (Public Law 111-155). April 7, 2010.
Declares matter that bears the term ``census'' on its
envelope, outside cover, or wrapper, but that constitutes a
solicitation by a nongovernmental entity, to be nonmailable by
the United States Postal Service, unless: (1) it satisfies one
of the exceptions specified for otherwise nonmailable matter
under existing law (such as displaying an appropriate
disclaimer); and (2) its envelope, outside cover, or wrapper
bears on its face an accurate return address including the name
of the entity that sent it.
H.R. 5148.--To amend title 39, United States Code, to
clarify the instances in which the term ``census'' may appear
on mailable matter. (Public Law 111-170). May 24, 2010.
Requires, in order to not be disposed of by the U.S. Postal
Service, any mailing soliciting the purchase of a product or
service or soliciting information or the contribution of funds
or membership fees that has the word ``census'' visible through
the envelope, or outside cover or wrapper, to include: (1) the
accurate name and return address of the entity sending the
mailing; and (2) a notice that the mailing is not affiliated
with the Federal Government.
S. 615.--A bill to provide additional personnel authorities
for the Special Inspector General for Afghanistan
Reconstruction. (Public Law 111-38). June 30, 2009.
Amends the National Defense Authorization Act for Fiscal
Year 2008 to authorize the Special Inspector General for
Afghanistan Reconstruction to exercise certain employment and
employment-related authorities currently permitted for the
heads of temporary organizations established by law or
executive order.
S. 692.--A bill to provide that claims of the United States
to certain documents relating to Franklin Delano Roosevelt
shall be treated as waived and relinquished in certain
circumstances. (Public Law 111-138). February 1, 2010.
Requires any claim of the United States to certain property
relating to Franklin Delano Roosevelt, his family, or staff to
be treated as having been waived and relinquished on the day
before any person makes a gift of such property to the National
Archives and Records Administration.
S. 1508.--A bill to amend the Improper Payments Information
Act of 2002 (31 U.S.C. 3321 note) in order to prevent the loss
of billions in taxpayer dollars. (Public Law 111-204). July 22,
2010.
Amends the Improper Payments Information Act of 2002 to
expand requirements for identifying programs and activities
susceptible to improper payments by requiring the head of each
Federal agency, during the year after the enactment of this Act
and at least once every 3 fiscal years thereafter, to review
and identify agency programs and activities that may be
susceptible to significant improper payments. Defines
``significant'' to mean: (1) improper payments in the preceding
fiscal year that may have exceeded $100 million or $10 million
of all program and activity payments and 2.5% of program
outlays; and (2) for fiscal years prior to FY2013, improper
payments that may have exceeded $100 million or $10 million of
all program and activity payments and 1.5% of program outlays.
S. 1510.--An act to transfer statutory entitlements to pay
and hours of work authorized by laws codified in the District
of Columbia Official Code for current members of the United
States Secret Service Uniformed Division from such laws to the
United States Code, and for other purposes. (Public Law 111-
282). October 15, 2010.
Transfers statutory entitlements to pay and hours of work
for members of the U.S. Secret Service Uniformed Division from
laws codified in the District of Columbia Official Code to the
United States Code. Authorizes the Secretary of Homeland
Security (DHS) to: (1) fix and adjust basic pay rates for
members of the U.S. Secret Service Uniformed Division; (2)
determine what constitutes an acceptable level of competence;
(3) establish and determine technician positions at the Officer
and Sergeant ranks; and (4) determine the rate of basic pay of
a member who is changed or demoted to a lower rank.
S. 1825.--A bill to extend the authority for relocation
expenses test programs for Federal employees, and for other
purposes. (Public Law 111-112). November 30, 2009.
Authorizes the Administrator of General Services to extend
the authority for a relocation expenses test program for
Federal employees upon the request of the agency administering
the program. Requires each such agency to annually submit a
report on the results of the program to the Administrator.
S. 1860.--A bill to permit each current member of the Board
of Directors of the Office of Compliance to serve for 3 terms.
(Public Law 111-114). December 14, 2009.
Authorizes any individual serving as a member of the Board
of Directors of the Office of Compliance as of September 30,
2009, to serve for three terms.
S. 2865.--A bill to reauthorize the Congressional Award Act
(2 U.S.C. 801 et seq.), and for other purposes. (Public Law
111-200). July 7, 2010.
Amends the Congressional Award Act to revise requirements
for appointment and reappointment of members of the
Congressional Award Board, especially the limitation of service
on the Board to two consecutive terms. Allows the Board to
accept funds to carry out its functions and make expenditures
that are awarded in any grant program administered by a Federal
agency.
S. 2868.--An Act to provide increased access to the Federal
supply schedules of the General Services Administration to the
American Red Cross, other qualified organizations, and State
and local governments. (Public Law 111-263). October 8, 2010.
Authorizes the Administrator of General Services to provide
for the use of Federal supply schedules by the American
National Red Cross and other qualified organizations (as
described in the Robert T. Stafford Disaster Relief and
Emergency Assistance Act) in furtherance of purposes determined
to be appropriate to facilitate emergency preparedness and
disaster relief. Prohibits use of such authority to purchase
supplies for resale.
S. 3196.--A bill to amend the Presidential Transition Act
of 1963 to provide that certain transition services shall be
available to eligible candidates before the general election.
(Public Law 111-283). October 15, 2010.
Amends the Presidential Transition Act of 1963 to direct
the Administrator of the General Services Administration to
provide certain presidential transition services and
facilities, including office space, equipment, and payment of
certain related expenses, to eligible presidential and vice-
presidential candidates before a presidential general election.
Directs the President, or the President's delegate, to take
necessary and appropriate actions to plan and coordinate
activities by the Executive Branch of the Federal Government to
facilitate an efficient transfer of power to a successor
President.
S. 3243.--To require U.S. Customs and Border Protection to
administer polygraph examinations to all applicants for law
enforcement positions with U.S. Customs and Border Protection,
to require U.S. Customs and Border Protection to initiate all
periodic background reinvestigations of certain law enforcement
personnel, and for other purposes. (Public Law 111-376).
January 4, 2011.
Requires the Secretary of Homeland Security (DHS) to ensure
that: (1) by not later than 2 years after enactment of this
Act, all applicants for law enforcement positions with U.S.
Customs and Border Protection receive polygraph examinations
before being hired for such positions; and (2) by not later
than 180 days after enactment of this Act, CBP initiates all
periodic background reinvestigations for all of its law
enforcement personnel.
S. 3794.--A bill to amend chapter 5 of title 40, United
States Code, to include organizations whose membership
comprises substantially veterans as recipient organizations for
the donation of Federal surplus personal property through State
agencies. (Public Law 111-338). December 22, 2010.
Authorizes the transfer of Federal surplus property to a
State agency for distribution through donation within the State
for purposes of education or public health for organizations
whose membership comprises substantially veterans and whose
representatives are recognized by the Secretary of Veterans
Affairs (VA) in the preparation, presentation, and prosecution
of claims under laws administered by the Secretary.
postal naming bills
H.R. 663.--To designate the facility of the United States
Postal Service located at 12877 Broad Street in Sparta,
Georgia, as the ``Yvonne Ingram-Ephraim Post Office Building.''
(Public Law 111-26). June 19, 2009.
H.R. 774.--To designate the facility of the United States
Postal Service located at 46-02 21st Street in Long Island
City, New York, as the ``Geraldine Ferraro Post Office
Building.'' (Public Law 111-50). August 19, 2009.
H.R. 918.--To designate the facility of the United States
Postal Service located at 300 East 3rd Street in Jamestown, New
York, as the ``Stan Lundine Post Office Building.'' (Public Law
111-27). June 19, 2009.
H.R. 955.--To designate the facility of the United States
Postal Service located at 10355 Northeast Valley Road in
Rollingbay, Washington, as the ``John `Bud' Hawk Post Office.''
(Public Law 111-99). November 30, 2009.
H.R. 987.--To designate the facility of the United States
Postal Service located at 601 8th Street in Freedom,
Pennsylvania, as the ``John Scott Challis, Jr. Post Office.''
(Public Law 111-51). August 19, 2009.
H.R. 1271.--To designate the facility of the United States
Postal Service located at 2351 West Atlantic Boulevard in
Pompano Beach, Florida, as the ``Elijah Pat Larkins Post Office
Building.'' (Public Law 111-52). August 19, 2009.
H.R. 1284.--To designate the facility of the United States
Postal Service located at 103 West Main Street in McLain,
Mississippi, as the ``Major Ed W. Freeman Post Office.''
(Public Law 111-28). June 19, 2009.
H.R. 1397.--To designate the facility of the United States
Postal Service located at 41 Purdy Avenue in Rye, New York, as
the ``Caroline O'Day Post Office Building.'' (Public Law 111-
54). August 19, 2009.
H.R. 1516.--To designate the facility of the United States
Postal Service located at 37926 Church Street in Dade City,
Florida, as the ``Sergeant Marcus Mathes Post Office.'' (Public
Law 111-100). November 30, 2009.
H.R. 1595.--To designate the facility of the United States
Postal Service located at 3245 Latta Road in Rochester, New
York, as the ``Brian K. Schramm Post Office Building.'' (Public
Law 111-29). June 19, 2009.
H.R. 1713.--To name the South Central Agricultural Research
Laboratory of the Department of Agriculture in Lane, Oklahoma,
and the facility of the United States Postal Service located at
310 North Perry Street in Bennington, Oklahoma, in honor of
former Congressman Wesley ``Wes'' Watkins. (Public Law 111-
101). November 30, 2009.
H.R. 1817.--To designate the facility of the United States
Postal Service located at 116 North West Street in Somerville,
Tennessee, as the ``John S. Wilder Post Office Building.''
(Public Law 111-128). January 29, 2010.
H.R. 2004.--To designate the facility of the United States
Postal Service located at 4282 Beach Street in Akron, Michigan,
as the ``Akron Veterans Memorial Post Office.'' (Public Law
111-102). November 30, 2009.
H.R. 2090.--To designate the facility of the United States
Postal Service located at 431 State Street in Ogdensburg, New
York, as the ``Frederic Remington Post Office Building.''
(Public Law 111-55). August 19, 2009.
H.R. 2162.--To designate the facility of the United States
Postal Service located at 123 11th Avenue South in Nampa,
Idaho, as the ``Herbert A Littleton Postal Station.'' (Public
Law 111-56). August 19, 2009.
H.R. 2215.--To designate the facility of the United States
Postal Service located at 140 Merriman Road in Garden City,
Michigan, as the ``John J. Shivnen Post Office Building.''
(Public Law 111-103). November 30, 2009.
H.R. 2325.--To designate the facility of the United States
Postal Service located at 1300 Matamoros Street in Laredo,
Texas, as the ``Laredo Veterans Post Office.'' (Public Law 111-
57). August 19, 2009.
H.R. 2422.--To designate the facility of the United States
Postal Service located at 2300 Scenic Drive in Georgetown,
Texas, as the ``Kile G. West Post Office Building.'' (Public
Law 111-58). August 19, 2009.
H.R. 2470.--To designate the facility of the United States
Postal Service located at 19190 Cochran Boulevard FRNT in Port
Charlotte, Florida, as the ``Lieutenant Commander Roy H. Boehm
Post Office Building.'' (Public Law 111-59). August 19, 2009.
H.R. 2760.--To designate the facility of the United States
Postal Service located at 1615 North Wilcox Avenue in Los
Angeles, California, as the ``Johnny Grant Hollywood Post
Office Building.'' (Public Law 111-104). November 30, 2009.
H.R. 2877.--To designate the facility of the United States
Postal Service located at 76 Brookside Avenue in Chester, New
York, as the ``1st Lieutenant Louis Allen Post Office.''
(Public Law 111-129). January 29, 2010.
H.R. 2972.--To designate the facility of the United States
Postal Service located at 115 West Edward Street in Erath,
Louisiana, as the ``Conrad DeRouen, Jr. Post Office.'' (Public
Law 111-105). November 30, 2009.
H.R. 3072.--To designate the facility of the United States
Postal Service located at 9810 Halls Ferry Road in St. Louis,
Missouri, as the ``Coach Jodie Bailey Post Office Building.''
(Public Law 111-130). January 29, 2010.
H.R. 3119.--To designate the facility of the United States
Postal Service located at 867 Stockton Street in San Francisco,
California, as the ``Lim Poon Lee Post Office.'' (Public Law
111-106). November 30, 2009.
H.R. 3250.--To designate the facility of the United States
Postal Service located at 1210 West Main Street in Riverhead,
New York, as the ``Private First Class Garfield M. Langhorn
Post Office Building.'' (Public Law 111-179). June 9, 2010.
H.R. 3319.--To designate the facility of the United States
Postal Service located at 440 South Gulling Street in Portola,
California, as the ``Army Specialist Jeremiah Paul McCleery
Post Office Building.'' (Public Law 111-131). January 29, 2010.
H.R. 3386.--To designate the facility of the United States
Postal Service located at 1165 2nd Avenue in Des Moines, Iowa,
as the ``Iraq and Afghanistan Veterans Memorial Post Office.''
(Public Law 111-107). November 30, 2009.
H.R. 3539.--To designate the facility of the United States
Postal Service located at 427 Harrison Avenue in Harrison, New
Jersey, as the ``Patricia D. McGinty-Juhl Post Office
Building.'' (Public Law 111-132). January 29, 2010.
H.R. 3547.--To designate the facility of the United States
Postal Service located at 936 South 250 East in Provo, Utah, as
the ``Rex E. Lee Post Office Building.'' (Public Law 111-108).
November 30, 2009.
H.R. 3634.--To designate the facility of the United States
Postal Service located at 109 Main Street in Swifton, Arkansas,
as the ``George Kell Post Office.'' (Public Law 111-180). June
9, 2010.
H.R. 3667.--To designate the facility of the United States
Postal Service located at 16555 Springs Street in White
Springs, Florida, as the ``Clyde L. Hillhouse Post Office
Building.'' (Public Law 111-133). January 29, 2010.
H.R. 3767.--To designate the facility of the United States
Postal Service located at 170 North Main Street in Smithfield,
Utah, as the ``W. Hazen Hillyard Post Office Building.''
(Public Law 111-134). January 29, 2010.
H.R. 3788.--To designate the facility of the United States
Postal Service located at 3900 Darrow Road in Stow, Ohio, as
the ``Corporal Joseph A. Tomci Post Office Building.'' (Public
Law 111-135). January 29, 2010.
H.R. 3892.--To designate the facility of the United States
Postal Service located at 101 West Highway 64 Bypass in Roper,
North Carolina, as the ``E.V. Wilkins Post Office.'' (Public
Law 111-181). June 9, 2010.
H.R. 3951.--To designate the facility of the United States
Postal Service located at 2000 Louisiana Avenue in New Orleans,
Louisiana, as the ``Roy Rondeno, Sr. Post Office Building.''
(Public Law 111-193). June 28, 2010.
H.R. 4017.--To designate the facility of the United States
Postal Service located at 43 Maple Avenue in Shrewsbury,
Massachusetts, as the ``Ann Marie Blute Post Office.'' (Public
Law 111-182). June 9, 2010.
H.R. 4095.--To designate the facility of the United States
Postal Service located at 9727 Antioch Road in Overland Park,
Kansas, as the ``Congresswoman Jan Meyers Post Office
Building.'' (Public Law 111-183). June 9, 2010.
H.R. 4139.--To designate the facility of the United States
Postal Service located at 7464 Highway 503 in Hickory,
Mississippi, as the ``Sergeant Matthew L. Ingram Post Office.''
(Public Law 111-184). June 9, 2010.
H.R. 4214.--To designate the facility of the United States
Postal Service located at 45300 Portola Avenue in Palm Desert,
California, as the ``Roy Wilson Post Office.'' (Public Law 111-
185). June 9, 2010.
H.R. 4238.--To designate the facility of the United States
Postal Service located at 930 39th Avenue in Greeley, Colorado,
as the ``W.D. Farr Post Office Building.'' (Public Law 111-
186). June 9, 2010.
H.R. 4425.--To designate the facility of the United States
Postal Service located at 2-116th Street in North Troy, New
York, as the ``Martin G. `Marty' Mahar Post Office.'' (Public
Law 111-187). June 9, 2010.
H.R. 4543.--To designate the facility of the United States
Postal Service located at 4285 Payne Avenue in San Jose,
California, as the ``Anthony J. Cortese Post Office Building.''
(Public Law 111-276). October 13, 2010.
H.R. 4547.--To designate the facility of the United States
Postal Service located at 119 Station Road in Cheyney,
Pennsylvania, as the ``Captain Luther H. Smith, U.S. Army Air
Forces Post Office.'' (Public Law 111-188). June 9, 2010.
H.R. 4602.--To designate the facility of the United States
Postal Service located at 1332 Sharon Copley Road in Sharon
Center, Ohio, as the ``Emil Bolas Post Office.'' (Public Law
111-355). January 4, 2011.
H.R. 4628.--To designate the facility of the United States
Postal Service located at 216 Westwood Avenue in Westwood, New
Jersey, as the ``Sergeant Christopher R. Hrbek Post Office
Building.'' (Public Law 111-189). June 9, 2010.
H.R. 4840.--An act to designate the facility of the United
States Postal Service located at 1981 Cleveland Avenue in
Columbus, Ohio, as the ``Clarence D. Lumpkin Post Office.''
(Public Law 111-208). July 27, 2010.
H.R. 4861.--To designate the facility of the United States
Postal Service located at 1343 West Irving Park Road in
Chicago, Illinois, as the ``Steve Goodman Post Office
Building.'' (Public Law 111-217). August 3, 2010.
H.R. 5051.--To designate the facility of the United States
Postal Service located at 23 Genesee Street in Hornell, New
York, as the ``Zachary Smith Post Office Building.'' (Public
Law 111-218). August 3, 2010.
H.R. 5099.--To designate the facility of the United States
Postal Service located at 15 South Main Street in Sharon,
Massachusetts, as the ``Michael C. Rothberg Post Office.''
(Public Law 111-219). August 3, 2010.
H.R. 5133.--To designate the facility of the United States
Postal Service located at 331 1st Street in Carlstadt, New
Jersey, as the ``Staff Sergeant Frank T. Carvill and Lance
Corporal Michael A. Schwarz Post Office Building.'' (Public Law
111-359). January 4, 2011.
H.R. 5278.--To designate the facility of the United States
Postal Service located at 405 West Second Street in Dixon,
Illinois, as the ``President Ronald W. Reagan Post Office
Building.'' (Public Law 111-235). August 16, 2010.
H.R. 5341.--To designate the facility of the United States
Postal Service located at 100 Orndorf Drive in Brighton,
Michigan, as the ``Joyce Rogers Post Office Building.'' (Public
Law 111-277). October 13, 2010.
H.R. 5390.--To designate the facility of the United States
Postal Service located at 13301 Smith Road in Cleveland, Ohio,
as the ``David John Donafee Post Office Building.'' (Public Law
111-278). October 13, 2010.
H.R. 5395.--To designate the facility of the United States
Postal Service located at 151 North Maitland Avenue in
Maitland, Florida, as the ``Paula Hawkins Post Office
Building.'' (Public Law 111-236). August 16, 2010.
H.R. 5450.--To designate the facility of the United States
Postal Service located at 3894 Crenshaw Boulevard in Los
Angeles, California, as the ``Tom Bradley Post Office
Building.'' (Public Law 111-279). October 13, 2010.
H.R. 5605.--To designate the facility of the United States
Postal Service located at 47 East Fayette Street in Uniontown,
Pennsylvania, as the ``George C. Marshall Post Office.''
(Public Law 111-361). January 4, 2011.
H.R. 5606.--To designate the facility of the United States
Postal Service located at 47 South 7th Street in Indiana,
Pennsylvania, as the ``James M. `Jimmy' Stewart Post Office
Building.'' (Public Law 111-362). January 4, 2011.
H.R. 5655.--To designate the Little River Branch facility
of the United States Postal Service located at 140 NE 84th
Street in Miami, Florida, as the ``Jesse J. McCrary, Jr. Post
Office.'' (Public Law 111-363). January 4, 2011.
H.R. 5758.--To designate the facility of the United States
Postal Service located at 2 Government Center in Fall River,
Massachusetts, as the ``Sergeant Robert Barrett Post Office
Building.'' (Public Law 111-300). December 14, 2010.
H.R. 5877.--To designate the facility of the United States
Postal Service located at 655 Centre Street in Jamaica Plain,
Massachusetts, as the ``Lance Corporal Alexander Scott
Arredondo, United States Marine Corps Post Office Building.''
(Public Law 111-365). January 4, 2011.
H.R. 6118.--To designate the facility of the United States
Postal Service located at 2 Massachusetts Avenue, NE, in
Washington, D.C., as the ``Dorothy I. Height Post Office.''
(Public Law 111-310). December 15, 2010.
H.R. 6237.--To designate the facility of the United States
Postal Service located at 1351 2nd Street in Napa, California,
as the ``Tom Kongsgaard Post Office Building.'' (Public Law
111-304). December 14, 2010.
H.R. 6387.--To designate the facility of the United States
Postal Service located at 337 West Clark Street in Eureka,
California, as the ``Sam Sacco Post Office Building.'' (Public
Law 111-305). December 14, 2010.
H.R. 6400.--To designate the facility of the United States
Postal Service located at 111 North 6th Street in St. Louis,
Missouri, as the ``Earl Wilson, Jr. Post Office.'' (Public Law
111-368). January 4, 2011.
S. 234.--A bill to designate the facility of the United
States Postal Service located at 2105 East Cook Street in
Springfield, Illinois, as the ``Colonel John H. Wilson, Jr.
Post Office Building.'' (Public Law 111-7). March 9, 2009.
S. 748.--A bill to redesignate the facility of the United
States Postal Service located at 2777 Logan Avenue in San
Diego, California, as the ``Cesar E. Chavez Post Office.''
(Public Law 111-109). November 30, 2009.
S. 1211.--A bill to designate the facility of the United
States Postal Service located at 60 School Street, Orchard
Park, New York, as the ``Jack F. Kemp Post Office Building.''
(Public Law 111-110). November 30, 2009.
S. 1314.--A bill to designate the facility of the United
States Postal Service located at 630 Northeast Killingsworth
Avenue in Portland, Oregon, as the ``Dr. Martin Luther King,
Jr. Post Office.'' (Public Law 111-111). November 30, 2009.
S. 3567.--A bill to designate the facility of the United
States Postal Service located at 100 Broadway in Lynbrook, New
York, as the ``Navy Corpsman Jeffrey L. Wiener Post Office
Building.'' (Public Law 111-288). November 30, 2009.
S. 3592.--A bill to designate the facility of the United
States Postal Service located at 100 Commerce Drive in Tyrone,
Georgia, as the ``First Lieutenant Robert Wilson Collins Post
Office Building.'' (Public Law 111-379). January 4, 2011.ca
VIII. PRESIDENTIAL NOMINATIONS
The Committee received a total of 60 Presidential
nominations during the 111th Congress. Of these, 39 were
reported favorably and confirmed by the Senate, 12 were
discharged from Committee and confirmed, 5 were withdrawn by
the President, and 3 were not acted upon by the Committee.
Hearing dates and reports on these nominations appear in
Section IV.
The following 41 nominations were favorably reported by the
Committee and confirmed by the Senate:
Jane Holl Lute, of New York, to be Deputy Secretary of
Homeland Security, vice Paul A. Schneider, resigned. Confirmed
April 3, 2009.
John Berry, of the District of Columbia, to be Director of
the Office of Personnel Management for a term of four years,
vice Linda M. Springer, resigned. Confirmed April 3, 2009.
John Morton, of Virginia, to be an Assistant Secretary of
Homeland Security, vice Julie L. Myers, resigned. Confirmed May
12, 2009.
Ivan K. Fong, of Ohio, to be General Counsel, Department of
Homeland Security, vice Philip J. Perry, resigned. Confirmed
May 6, 2009.
William Craig Fugate, of Florida, to be Administrator of
the Federal Emergency Management Agency, Department of Homeland
Security, vice R. David Paulison. Confirmed May 12, 2009.
Marisa J. Demeo, of the District of Columbia, to be an
Associate Judge of the Superior Court of the District of
Columbia for the term of fifteen years, vice Rufus Gunn King,
III, retired. Confirmed April 20, 2010.
Florence Y. Pan, of the District of Columbia, to be an
Associate Judge of the Superior Court of the District of
Columbia for the term of fifteen years, vice Linda Turner
Hamilton. Confirmed May 21, 2009.
Timothy W. Manning, of New Mexico, to be Deputy
Administrator for National Preparedness, Federal Emergency
Management Agency, Department of Homeland Security, vice Dennis
R. Schrader. Confirmed May 6, 2009.
Cass R. Sunstein, of Massachusetts, to be Administrator of
the Office of Information and Regulatory Affairs, Office of
Management and Budget, vice Susan E. Dudley. Confirmed
September 10, 2009.
Rand Beers, of the District of Columbia, to be Under
Secretary, Department of Homeland Security, vice Robert D.
Jamison, resigned. Confirmed June 19, 2009.
David Heyman, of the District of Columbia, to be an
Assistant Secretary of Homeland Security, vice Stewart A.
Baker, resigned. Confirmed June 4, 2009.
Robert M. Groves, of Michigan, to be Director of the
Census, vice Steven H. Murdock, resigned. Confirmed July 13,
2009.
Martha N. Johnson, of Maryland, to be Administrator of
General Services, vice Lurita Alexis Doan, resigned. Confirmed
February 4, 2010.
Tara Jeanne O'Toole, of Maryland, to be Under Secretary for
Science and Technology, Department of Homeland Security, vice
Jay M. Cohen, resigned. Confirmed November 4, 2009.
Christine M. Griffin, of Massachusetts, to be Deputy
Director of the Office of Personnel Management, vice Howard
Charles Weizmann, resigned. Confirmed July 31, 2009.
Jeffrey D. Zients, of the District of Columbia, to be
Deputy Director for Management, Office of Management and
Budget, vice Clay Johnson, III, resigned. Confirmed June 19,
2009.
Stuart Gordon Nash, of the District of Columbia, to be an
Associate Judge of the Superior Court of the District of
Columbia for the term of fifteen years, vice Rafael Diaz, term
expired. Confirmed April 20, 2010.
Richard Serino, of Massachusetts, to be Deputy
Administrator, Federal Emergency Management Agency, Department
of Homeland Security, vice Harvey E. Johnson, Jr., resigned.
Confirmed October 5, 2009.
David S. Ferriero, of North Carolina, to be Archivist of
the United States, vice Allen Weinstein, resigned. Confirmed
July 28, 2009.
Susan Tsui Grundmann, of Virginia, to be Chairman of the
Merit Systems Protection Board, vice Neil McPhie. Confirmed
November 5, 2009.
Susan Tsui Grundmann, of Virginia, to be a Member of the
Merit Systems Protection Board for the term of seven years
expiring March 1, 2016, vice Neil McPhie, term expired.
Confirmed November 5, 2009.
Anne Marie Wagner, of Virginia, to be a Member of the Merit
Systems Protection Board for the term of seven years expiring
March 1, 2014, vice Barbara J. Sapin, resigned. Confirmed
November 5, 2009.
Daniel I. Werfel, of Virginia, to be Controller, Office of
Federal Financial Management, Office of Management and Budget,
vice Linda Morrison Combs, resigned. Confirmed October 13,
2009.
Daniel I. Gordon, of the District of Columbia, to be
Administrator for Federal Procurement Policy, vice Paul A.
Denett. Confirmed November 21, 2009.
Elizabeth M. Harman, of Maryland, to be an Assistant
Administrator of the Federal Emergency Management Agency,
Department of Homeland Security, vice W. Ross Ashley, III,
resigned. Confirmed March 3, 2010.
Alan C. Kessler, of Pennsylvania, to be a Governor of the
United States Postal Service for a term expiring December 8,
2015. (Reappointment) Confirmed December 3, 2009.
Grayling Grant Williams, of Maryland, to be Director of the
Office of Counternarcotics Enforcement, Department of Homeland
Security, vice Uttam Dhillon, resigned. Confirmed December 24,
2009.
Milton C. Lee, Jr., of the District of Columbia, to be an
Associate Judge of the Superior Court of the District of
Columbia for the term of fifteen years, vice Jerry Stewart
Byrd, retired. Confirmed June 22, 2010.
Dana Katherine Bilyeu, of Nevada, to be a Member of the
Federal Retirement Thrift Investment Board for a term expiring
October 11, 2011, vice Thomas A. Fink, term expired. Confirmed
June 22, 2010.
Michael D. Kennedy, of Georgia, to be a Member of Federal
Retirement Thrift Investment Board for a term expiring
September 25, 2010, vice Gordon Whiting, term expired.
Confirmed June 22, 2010.
Michael D. Kennedy, of Georgia, to be a Member of Federal
Retirement Thrift Investment Board for a term expiring
September 25, 2014. (Reappointment) Confirmed June 22, 2010.
Dennis P. Walsh, of Maryland, to be Chairman of the Special
Panel on Appeals for a term of six years, vice John L. Howard,
term expired. Confirmed June 22, 2010.
Dennis J. Toner, of Delaware, to be a Governor of the
United States Postal Service for the remainder of the term
expiring December 8, 2012, vice Katherine C. Tobin, resigned.
Confirmed September 16, 2010.
Todd E. Edelman, of the District of Columbia, to be an
Associate Judge of the Superior Court of the District of
Columbia for the term of fifteen years, vice Cheryl M. Long,
retired. Confirmed June 22, 2010.
Judith Anne Smith, of the District of Columbia, to be an
Associate Judge of the Superior Court of the District of
Columbia for the term of fifteen years, vice Geoffrey M.
Alprin, retired. Confirmed June 22, 2010.
John S. Pistole, of Virginia, to be an Assistant Secretary
of Homeland Security, vice Edmund S. Hawley, resigned.
Confirmed June 25, 2010.
Maria Elizabeth Raffinan, of the District of Columbia, to
be an Associate Judge of the Superior Court of the District of
Columbia for the term of fifteen years, vice Odessa F. Vincent,
retired. Confirmed September 29, 2010.
Jacob J. Lew, of New York, to be Director of the Office of
Management and Budget, vice Peter R. Orszag, resigned.
Confirmed November 18, 2010.
Eugene Louis Dodaro, of Virginia, to be Comptroller General
of the United States for a term of fifteen years, vice David M.
Walker, resigned. Confirmed December 22, 2010.
The following nomination was favorably reported by the
Committee but not acted upon by the Senate. It was returned to
the President under provisions of Senate Rule XXXI, paragraph
6, of the Standing Rules of the Senate:
Jonathan Andrew Hatfield, of Virginia, to be Inspector
General, Corporation for National and Community Service, vice
Gerald Walpin, resigned. Returned December 22, 2010.
The following five nominations were withdrawn by the
President:
Paul Steven Miller, of Washington, to be a Governor of the
United States Postal Service for a term expiring December 8,
2016, vice Carolyn L. Gallagher, term expired. Withdrawn June
8, 2010.
Erroll G. Southers, of California, to be an Assistant
Secretary of Homeland Security, vice Edmund S. Hawley,
resigned. Withdrawn January 21, 2010.
Richard Serino, of Massachusetts, to be Deputy
Administrator and Chief Operating Officer, Federal Emergency
Management Agency, Department of Homeland Security, vice Harvey
E. Johnson, Jr., resigned. Withdrawn July 27, 2009.
Alexander G. Garza, of Missouri, to be Assistant Secretary
for Health Affairs and Chief Medical Officer, Department of
Homeland Security, vice Jeffrey William Runge. Withdrawn July
27, 2009.
Stuart Gordon Nash, of the District of Columbia, to be an
Associate Judge of the Superior Court of the District of
Columbia for the term of fifteen years, vice Rufus Gunn King,
III, retired. Withdrawn March 24, 2009.
The following three nominations were not acted upon by the
Committee. Each was returned to the President under provisions
of Senate Rule XXXI, paragraph 6, of the Standing Rules of the
Senate:
Carolyn N. Lerner, of Maryland, to be Special Counsel,
Office of Special Counsel, for the term of five years, vice
Scott J. Bloch, resigned. Returned 22, 2010.
Esteban Soto III, of Maryland, to be United States Marshal
for the Superior Court of the District of Columbia for the term
of four years, vice Stephen Thomas Conboy, resigned. Returned
December 22, 2010.
Rafael Borras, of Maryland, to be Under Secretary for
Management, Department of Homeland Security, vice Elaine C.
Duke, resigned, to which position he was appointed during the
last recess of the Senate. Returned December 22, 2010.
IX. ACTIVITIES OF THE SUBCOMMITTEES
SUBCOMMITTEE ON FEDERAL FINANCIAL
MANAGEMENT, GOVERNMENT INFORMATION,
FEDERAL SERVICES, AND INTERNATIONAL SECURITY
Chairman: Thomas R. Carper
Ranking Minority Member: Tom Coburn
I. HEARINGS
The Subcommittee on Federal Financial Management,
Government Information, Federal Services, and International
Security held the following hearings during the 111th Congress.
1. January 28, 2009, ``The Impact of the Economic Crisis on
the U.S. Postal Service.''
This hearing sought to understand how the Nation's current
economic crisis has affected the Postal Service. Some ideas the
Subcommittee explored to save the Postal Service money included
cutting work hours, streamlining operations, increasing postage
rates, and pre-funding health related obligations to future
retirees.
Witnesses included: Hon. John E. Potter, Postmaster General
and Chief Executive Officer, U.S. Postal Service, Hon. Dan
Blair, Chairman, U.S. Postal Regulatory Commission, and Phillip
R. Herr, Director, Physical Infrastructure Issues, U.S.
Government Accountability Office.
2. March 5, 2009, ``Lessons Learned: How the New
Administration Can Achieve an Accurate and Cost-Effective 2010
Census.''
This hearing sought to lay the groundwork for a successful
Census in 2010. Many challenges facing the Census Bureau were
discussed including: Underfunding for outreach to minority
communities and the mis-management of the contract for hand-
held computers to aid in data collection. In addition, the
Chairman brought up the need for a new nominee for Census
Director to provide essential leadership and organization.
Witnesses included: Hon. Barbara Everitt Bryant, Ph.D.,
Former Director, U.S. Census Bureau, Lawrence Brown, Ph.D.,
Chair, Committee on National Statistics, National Academy of
Sciences, Robert Goldenkoff, Director, Strategic Issues, U.S.
Government Accountability Office, Robert B. Hill, Ph.D.,
Sociologist and Former Chair of the Advisory Committee on
African American Population, U.S. Census Bureau, David Powner,
Director, Information Technology Management Issues, U.S.
Government Accountability Office, and John Thompson, President,
National Opinion Research Council.
3. April 22, 2009, ``Eliminating Waste and Fraud in
Medicare and Medicaid.''
This hearing sought to identify three things: Programs and
activities that have successfully eliminated or reduced fraud,
waste, and abuse in Medicare and Medicaid; major challenges for
CMS, OIG and States in controlling fraud, waste, and abuse; and
ways in which Congress can help to prevent fraud, waste, and
abuse.
The following witnesses appeared: Kay L. Daly, Director,
Financial Management and Assurance, U.S. Government
Accountability Office; Deborah Taylor, Acting Director and
Chief Financial Officer, U.S. Office of Financial Management,
Centers for Medicare and Medicaid Services, U.S. Department of
Health and Human Services; Lewis Morris, Chief Counsel, Office
of Inspector General, U.S. Department of Health and Human
Services; and James G. Sheehan, Medicaid Inspector General, New
York State Office of the Medicaid Inspector General.
4. April 28, 2009, ``Government 2.0: Advancing America into
the 21st Century and a Digital Future.''
This hearing examined the Obama Administration's plans to
use information technology to make government more efficient,
secure, and citizen-focused.
The following witnesses appeared: Hon. Vivek Kundra,
Federal Chief Information Officer, Administrator for Electronic
Government, Office of Management and Budget; David A. Powner,
Director, Information Technology Issues, U.S. Government
Accountability Office; Karen S. Evans, former Administrator,
Office of Electronic Government and Information Technology,
Office of Management and Budget; and Phillip J. Bond, President
and CEO, TechAmerica.
5. May 11, 2009, ``Making the Census Count in Urban
America.''
This hearing was held at the National Constitution Center
in Philadelphia, PA. Historically, large urban areas like
Philadelphia have experienced undercounts in the U.S. Census
for various reasons--lack of public awareness, limited
outreach, and the challenges in reaching such a diverse and
mobile population. In 2000, Philadelphia had a census response
rate of 56 percent, falling far below the national response
rate of 67 percent. This hearing examined the plan for outreach
strategies prior to the 2010 Census, the challenges and
opportunities facing hard-to-count communities, and what
individuals can do to ensure an accurate, responsible Census.
The following witnesses appeared: Hon. Michael A. Nutter,
Mayor, City of Philadelphia; Hon. Michael N. Castle, a U.S.
Representative in Congress from the State of Delaware; Hon.
James Baker, Mayor, City of Wilmington; Camille Cates Barnett,
Managing Director, City of Philadelphia; Thomas Mesenbourg,
Acting Director, U.S. Census Bureau, U.S. Department of
Commerce; Norman Bristol Colon, Executive Director, Governor's
Advisory Commission on Latino Affairs, Office of Governor
Edward G. Rendell; Patricia A. Coulter, President and CEO,
Urban League of Philadelphia; and Wanda M. Lopez, Executive
Director, Governor's Advisory Council on Hispanic Affairs.
6. July 7, 2009, ``From Strategy to Implementation:
Strengthening U.S.-Pakistan Relations.''
This hearing examined the Obama Administration's AfPak
policy, analyzing whether it is the most effective strategy,
and paid particular attention to the possibility of al-Qaeda
(or another terrorist group) acquiring a warhead or enough
radioactive material to create a dirty bomb.
The following witnesses appeared: Hon. Mark Udall, a U.S.
Senator from the State of Colorado; Paul W. Jones, Deputy
Special Representative for Afghanistan and Pakistan, and Deputy
Assistant Secretary of State for South and Central Asia, Office
of the special Representative for Afghanistan and Pakistan,
U.S. Department of State; Lisa Curtis, Senior Research Fellow,
Asian Studies Center, The Heritage Foundation; Nicholas
Schmidle, Fellow, New America Foundation; Shuja Nawaz,
Director, South Asia Center, The Atlantic Council; Nathaniel
Fick, Chief Executive Officer, Center for a New American
Security; and Rolf Mowatt-Larssen, Senior Fellow, Belfer Center
for Science and International Affairs, John F. Kennedy School
of Government, Harvard University.
7. August 3, 2009, ``Eliminating Wasteful Contractor
Bonuses.''
This hearing focused on whether agencies are properly using
award fee contract vehicles to align contractor profitability
with superior performance.
The following witnesses appeared: Hon. Jeffrey D. Zients,
Deputy Director for Management, Office of Management and
Budget; John Hutton, Director, Acquisition and Sourcing
Management, U.S. Government Accountability Office; Shay D.
Assad, Acting Deputy Under Secretary of Defense for Acquisition
and Technology, U.S. Department of Defense; William P. McNally,
Assistant Administrator for Procurement, and Deputy Chief
Acquisition Officer, National Aeronautics and Space
Administration; Richard K. Gunderson, Acting Chief Procurement
Officer, U.S. Department of Homeland Security; Edward R.
Simpson, Director, Office of Procurement and Assistance
Management, U.S. Department of Energy; and Alan Chvotkin,
Executive Vice President and Counsel, Professional Services
Council.
8. August 6, 2009, ``The U.S. Postal Service in Crisis.''
This hearing examined the Postal Service's financial
condition and proposals that have been made to address the
problems that have put the Service on the brink of failure. If
Congress does not step in with financial relief or a
restructuring of the Postal Service's retiree health payments,
there is a great risk that the Postal Service may have run out
of cash by the beginning of FY2010. This would likely force
postal management to cease operations.
Witnesses at this hearing were as follows: Hon. John E.
Potter, Postmaster General and Chief Executive Officer, U.S.
Postal Service; Fredric V. Rolando, President, National
Association of Letter Carriers, AFL-CIO; David C. Williams,
Inspector General, U.S. Postal Service; Phillip R. Herr,
Director, Physical Infrastructure Issues, U.S. Government
Accountability Office; William Burrus, President, American
Postal Workers Union, AFL-CIO; Dale Goff, President, National
Association of Postmasters of the United States, James E. West,
Director, Postal and Government Affairs, Williams-Sonoma, Inc.;
Mark Suwyn, Executive Chairman NewPage Corporation; Nancy H.
Kichak, Associate Director for Strategic Human Resources Policy
Division, U.S. Office of Personnel Management; and Hon. Ruth Y.
Goldway, Chairman, Postal Regulatory Commission.
9. September 24, 2009, ``Getting to Better Government:
Focusing on Performance.''
As the Government Accountability Office has pointed out,
the Federal Government's performance and the results it
achieves have a profound effect on the most important issues to
the American people-creating jobs, providing health care,
overseeing financial markets, reducing pollutants and sending
additional troops to war. Congress has a responsibility to make
sure taxpayers' investment in America is managed in the most
effective way possible. This hearing sought to examine how
performance information was being used to better manage Federal
agencies and how managers could apply it on a more consistent
basis for lasting results.
Witnesses included: Hon. Jeffrey D. Zients, Federal Chief
Performance Officer and Deputy Director for Management, Office
of Management and Budget; Bernice Steinhardt, Director for
Strategic Issues, U.S. Government Accountability Office; W.
Craig Fugate, Administrator, Federal Emergency, Management
Agency, U.S. Department of Homeland Security; Rhea S. Suh,
Assistant Secretary for Policy, Management, and Budget, U.S.
Department of the Interior; Michelle Snyder, Acting Deputy
Administrator and Deputy Chief Operating Officer, Centers for
Medicare and Medicaid Services; and Paul Posner, Director,
Public Administration Program, Department of Public and
International Affairs, George Mason University.
10. September 30, 2009, ``A Prescription for Waste:
Controlled Substance Abuse in Medicaid.''
This hearing explored the surge in fraudulent controlled
substance prescription claims. In particular, the Subcommittee
focused on a study completed by GAO which found tens of
thousands of Medicaid beneficiaries and providers involved in
fraudulent purchases of controlled substances through the
Medicaid program. The three main sources of fraud and abuse
which were discussed during this hearing include: Beneficiaries
engaged in ``doctor shopping'' substances ``received'' by dead
beneficiaries or ``written'' by dead doctors, and banned
physicians continuing to illegally write prescriptions and have
them paid for by Medicaid.
Witnesses included: Gregory D. Kutz, Managing Director,
Forensic Audits and Special Investigations, U.S. Government
Accountability Office; Penny Thompson, Deputy Director, Center
for Medicaid and State Operations, Centers for Medicare and
Medicaid Services; Ann Kohler, Executive Director, National
Association of State Medicaid Directors; and Joseph Rannazzisi,
Deputy Assistant Administrator, Office of Diversion Control,
U.S. Drug Enforcement Agency, U.S. Department of Justice.
11. October 7, 2009, ``2010 Census: A Status Update of Key
Decennial Operations.''
This hearing provided a status update of key decennial
operations to determine the Census Bureau's overall readiness
for the 2010 Census. The Subcommittee was updated on 2010
decennial operations, focusing on the results of the Bureau's
recent completion of its address canvassing operation, the
progress of the Bureau's testing of key decennial information
technology systems and interfaces, and the use of American
Reinvestment and Recovery Act (AARA) spending to enhance
outreach to hard-to-count communities.
Witnesses included: Hon. Robert Groves, Director, U.S.
Census Bureau; Robert Goldenkoff, Director, Census Issues, U.S.
Government Accountability Office; and Hon. Todd Zinser,
Inspector General, U.S. Department of Commerce.
12. October 29, 2009, ``More Security, Less Waste: What
Makes Sense for our Federal Cyber Defense.''
Despite the fact that Federal agencies spend approximately
$7 billion every year to secure their networks and protect
sensitive information, agencies continue to receive failing
reports from Inspectors General, the Government Accountability
Office, and Congress. More importantly, cyber criminals
continue to plunder our information resources and threaten to
destroy mission critical networks. To address these threats,
agencies go through a process known as certification and
accreditation to reduce the risk of cyber attack. However in a
hearing in 2008 before the FFM Subcommittee, agencies testified
that FISMA implementation has wasted millions of dollars on
ineffective paperwork compliance instead of effective security.
This hearing sought to examine ways Federal agencies and
Congress can cost-effectively invest in security and measure
the return on investment and reduced risk to mission critical
networks.
The following witnesses appeared: Hon. Tom Davis, former
U.S. Representative from the State of Virginia; Vivek Kundra,
Federal Chief Information Officer, Administrator for Electronic
Government and Information Technology, Office of Management and
Budget; Gregory C. Wilshusen, Director, Information Technology
Security Issues, U.S. Government Accountability Office; and
John Streufert, Chief Information Security Officer, and Deputy
Chief Information Officer for Information Security, Bureau of
Information Resource Management, U.S. Department of State.
13. December 16, 2009, ``Tools to Combat Deficits and
Waste: Expedited Rescission Authority.''
This hearing examined the President's rescission authority
and a variety of proposals that have been put forward to
enhance the effectiveness of this authority in combating annual
budget deficits and wasteful spending. At the time of this
hearing, the U.S. national debt was approaching $12 trillion
and the FY2010 budget deficit was expected to be more than $1
trillion. According to CBO in FY2009, total Federal spending
was equal to nearly 25 percent of GDP, which was the highest
ratio in more than 50 years. If Congress and the Administration
are to balance the budget and tackle the national debt, they
must address the accelerated growth in Federal spending. In his
FY2010 budget proposal, the President requested an enhancement
of his executive rescission authority in order to more
effectively eliminate wasteful and unnecessary spending. The
hearing sought to (1) explore the President's current
rescission authority, (2) determine whether an expedited
rescission authority will be successful in helping to reduce
unnecessary spending and close our budget deficit, and (3)
examine several proposals in Congress to provide the President
with this new authority.
Witnesses at this hearing included: Hon. Russell D.
Feingold, a U.S. Senator from the State of Wisconsin; Todd B.
Tatelman, Legislative Attorney American Law Division
Congressional Research Service, Robert L. Bixby, Executive
Director, The Concord Coalition; Thomas A. Schatz, President,
Citizens Against Government Waste; Raymond C. Scheppach, Ph.D.,
Executive Director, National Governors Association; and Susan
A. Poling, Managing Associate General Counsel, U.S. Government
Accountability Office.
14. January 27, 2010, ``Cutting the Federal Government's
Energy Bill: An Examination of the Sustainable Federal
Government Executive Order.''
During this hearing the Subcommittee examined the financial
implications of the recently signed Executive Order 13514,
directing stronger action by Federal agencies for energy
efficiency in their facilities and operations, as well as other
sustainability measures. The Federal Government is the world's
largest institutional consumer of energy, with a total annual
energy bill of about $17.7 billion (FY2006). This presents an
important opportunity for the Federal Government to lead by
example in pursuing both greater environmental and fiscal
responsibility.
The hearing focused on the recent presidential sustainable
government Executive Order's potential for financial savings by
Federal agencies. The Subcommittee reviewed the goals and
timelines of the Executive Order.
Witnesses present were as follows: Nancy Sutley, Chair,
Council on Environmental Quality; Richard Kidd, Program
Manager, Federal Energy Management Program, U.S. Department of
Energy; Dorothy Robyn, Ph.D., Deputy Under Secretary of Defense
for Installations and Environment, U.S. Department of Defense;
and Sam Pulcrano, Vice President, Office of Sustainability,
U.S. Postal Service.
15. February 19, 2010, ``Blue, Gold, and Green: How
Delaware State and Local Governments are Cutting Their Energy
Costs.''
This hearing was held in the Carvel State Office Building
in Wilmington, Delaware. The hearing explored what State and
local governments in Delaware are doing to cut energy costs in
the face of mounting budget deficits. As part of the State of
Delaware measures to increase government efficiency, Delaware
Governor Jack Markell announced he would release an Executive
Order calling for energy consumption reductions in all State
facilities soon after the hearing. The hearing explored the
similarities and differences between President Obama's
Executive Order on governmental sustainability, including
energy efficiency, issued in 2009, and Governor Markell's
Executive Order.
Witnesses included: Hon. Jack Markell, Governor, State of
Delaware; Chris Coons, County Executive, New Castle County,
Delaware; James Baker, Mayor, City of Wilmington, Delaware; and
Roy Whitaker, Chief of Buildings and Grounds, Seaford School
District, Delaware.
16. February 23, 2010, ``Countdown to Census Day: Progress
Report on the Census Bureau's Preparedness for the
Enumeration.''
This hearing provided an overview of the Census Bureau's
testing efforts for the broad array of systems in place to
support the collection, integration, and tabulation of census
data of the upcoming Census Day. As government auditors have
reported, although the Census Bureau has made commendable
progress in mitigating risks to a successful enumeration and
keeping the entire decennial on track, much work remains to be
done to ensure a thorough count. This hearing will assess the
Bureau's readiness for the headcount and its implementation of
key census-taking activities in April 2010. Specifically, the
hearing will study (1) the management and performance of key
information technology systems; (2) the preliminary results of
group quarters validation; (3) the planning and implementation
of coverage improvement and measurement operations; non-
response follow-up planning, including an update on efforts to
improve fingerprinting policies and procedures; and (4)
estimates of the costs of the 2010 Census.
Witnesses included: Robert M. Groves, Director, U.S. Census
Bureau, U.S. Department of Commerce; Todd J. Zinser, Inspector
General, U.S. Department of Commerce; and Robert Goldenkoff,
Director, Strategic Issues, U.S. Government Accountability
Office.
17. March 3, 2010, ``Oversight Challenges in the Medicare
Prescription Drug Program.''
This hearing explored the challenges of waste, fraud, and
abuse in the Medicare prescription drug program and the
possible opportunities to improve oversight. Medicare has faced
enormous challenges in combating waste, fraud, and abuse. The
Health and Human Services (HHS) Centers for Medicare and
Medicaid Services has experienced substantial challenges with
implementing effective oversight of the $60 billion Medicaid
Part D prescription drug program. The HHS Inspector General and
others have already reported on specific failures, calling into
question whether adequate oversight work was conducted during
the first 4 years of the program. However, some outside
analysts have identified steps to substantially improve
oversight.
Witnesses included: Hon. Amy Klobuchar, a U.S. Senator from
the State of Minnesota; Kathleen M. King, Director, Health
Care, U.S. Government Accountability Office; Howard B. Apple,
President, SafeGuard Services, LLC, accompanied by Doug Quave,
Program Director, Compliance and Enforcement MEDIC; Christian
Jensen, M.D., MPH, President and Chief Executive Officer,
Quality Health Strategies; Jonathan Blum, Director, Center for
Drug and Health Plan Choice, U.S. Department of Health and
Human Services; and Robert Vito, Regional Inspector General for
Evaluations and Inspections, Office of Inspector General, U.S.
Department of Health and Human Services.
18. March 23, 2010 and April 13, 2010, ``Removing the
Shroud of Secrecy: Making Government More Transparent and
Accountable--Part I and II.''
President Obama campaigned on the promise that he was going
to leverage technology to fundamentally change the way
government interacts with every American, making agencies more
efficient, transparent, and responsive. On his first day in
office, President Obama signed an ``open government'' directive
which instructs agencies to take specific actions to open their
operations to the public. The idea behind the directive is that
more open government allows members of the public to contribute
ideas and expertise to government initiatives. Collaboration
improves the effectiveness of government by encouraging
partnerships and cooperation within the Federal Government,
across levels of government, and between the government and
private institution. Further, providing more government
information by default, instead of by exception, will help
reduce the costs and backlog of FOIA requests and spur
innovation in the private sector that can leverage the
information. This hearing sought to examine President Obama's
Open Government initiative and explore what areas will lead to
improved management, accountability, and cost-savings. The
hearing helped the Subcommittee highlight areas of improvement
and steps forward on implementing the initiative.
Witnesses who appeared on March 23, 2010: Vivek Kundra,
Federal Chief Information Officer and Administrator for
electronic Government and Information Technology, Office of
Management and Budget; Hon. Aneesh chopra, chief Technology
Officer and Associate Director for Technology, Office of
Science and Technology Policy, Executive Office of the
President; Hon. David Ferriero, Archivist of the United States
of America, National Archives and Records Administration; and
Ellen Miller, Co-Founder and Executive Director, Sunlight
Foundation.
Witnesses who appeared on April 13, 2010: John Wonderlich,
Policy Director, Sunlight Foundation; Stephen W.T. O'Keeffe,
Founder, MeriTalk Online; and Thomas Blanton, Director,
National Security Archive, George Washington University.
19. April 22, 2010, ``The Future of the U.S. Postal
Service.''
This hearing examined the Postal Service's financial
condition and a series of proposals the Postal Service has made
to address the problems it faces. The Postal Service expected a
record loss in FY10. The economic slowdown, the continued
electronic diversion of the mail, and an unrealistically
aggressive retiree health pre-payment schedule have combined to
put the Postal Service in crisis. In addition, an analysis of
the future of the mail conducted on behalf of the Postal
Service has shown that mail volume is not likely to recover
along with the economy. The Postal Service is expecting
continuing volume declines and, by 2020, a cumulative deficit
of more than $230 billion.
Witnesses included: Phillip Herr, Director of Physical
Infrastructure Issues, U.S. Government Accountability Office;
Hon. John E. Potter, Postmaster General and Chief Executive
Officer, U.S. Postal Service; Hon. David C. Williams, Inspector
General, U.S. Postal Service; and Hon. Ruth Y. Goldway,
Commissioner, Postal Regulatory Commission.
20. June 16, 2010 and July 22, 2010, ``The Gulf of Mexico
Oil Spill: Ensuring a Financially Responsible Recovery, Part I
and II.''
The June 16 hearing explored how much the BP/Deepwater
Horizon oil spill has cost and may continue to cost American
taxpayers--and how we intend to get the money back from those
responsible for the spill. The points below outline the
discussions held during our hearing.
Direct Federal Costs--The government continues to
incur costs related to the direct Federal response efforts
ongoing on the Gulf and they are billing BP for those costs on
a regular basis. Witnesses will discuss the process of tracking
those costs and how the government and BP plan to move forward
to ensure every dime is reimbursed.
Independent Escrow Fund--The President is expected
to call for a independently-monitored, multi-billion dollar
escrow fund to handle claims by people and businesses affected
by the oil spill. The hearing will explore how such a fund
would work and interact with the already existing claims
process and statutory authorities.
Claims Process--The ongoing claims process for those
harmed by the oil spill remains one of the most controversial
aspects of the current incident. This hearing provided an
update on current efforts to improve transparency into the
process and how we are ensuring that citizens and businesses of
the Gulf are made whole.
Responsible Parties--While BP is the main
``responsible party.'' for this oil spill, there are three
other companies also recognized as responsible parties by the
government. This hearing explored what role they play in
ensuring a responsible financial recovery from this incident.
Ongoing risks and vulnerabilities to the Oil Spill
Liability Trust Fund--The GAO has provided testimony and
analysis detailing significant risks that remain for the
ongoing viability of the Oil Spill Liability Trust Fund, and
considerations for Congress to address these vulnerabilities.
The July 22 hearing served as a follow-up to the one held
June 16, 2010, exploring the Federal financial impacts of the
Gulf of Mexico Oil Spill. Since that initial hearing, the
President and BP officials agreed to the establishment of a
new, independent escrow fund to handle damage claims from
residents adversely affected by the oil spill. This fund is
being administered by Kenneth Feinberg. The hearing served to
examine how this new claims process is transitioning from the
one headed up by BP, and how it is ensuring the Oil Spill
Liability Trust Fund remains viable.
Witnesses who appeared on June 16, 2010 included: Hon.
Frank R. Lautenberg, a U.S. Senator from the State of New
Jersey; Darryl Willis, Vice President, Resources, B.P. America,
Inc.; Steven Newman, Chief Executive Officer, Transocean Ltd.;
Susan A. Fleming, Director, Physical Infrastructure Issues,
U.S. Government Accountability Office; and Craig Bennett,
Director, National Pollution Funds Center, U.S. Coast Guard.
Witnesses who appeared on July 22, 2010 included: Kenneth
R. Feinberg, Administrator, Gulf Coast Claims Facility; James
T. Hackett, President and CEO, Anadarko Petroleum Corporation;
and Naoki Ishii, President, MOEX Offshore 2007 LLC, accompanied
by Fuiko Sato, Interpreter.
21. June 23, 2010, ``Having Their Say: Customer and
Employee Views on the Future of the U.S. Postal Service.''
The economic slowdown and the continued electronic
diversion of mail coupled with an aggressive retiree health
pre-payment schedule have combined to put the Postal Service in
financial crisis. In addition, an analysis of the future of the
mail conducted on behalf of the Postal Service shows that mail
volume may not recover along with the economy. If the study's
predictions hold true and absolutely nothing is done, mail
volume will continue to decline, potentially resulting in a
cumulative deficit of more than $230 billion by 2020. Moreover,
in its April 12 report entitled ``U.S. Postal Service:
Strategies and Options to Facilitate Progress Toward Financial
Viability,'' the Government Accountability Office found that
the Postal Service's current business model is not viable. In
light of these findings, the hearing focused on the
difficulties facing the Postal Service and the plans postal
management and GAO have put forth to address them. The hearing
was held jointly by the Senate Committee on Homeland Security
and Governmental Affairs Federal Financial Management,
Government Information, Federal Services, and International
Security Subcommittee and the House Committee on Oversight and
Government Reform Subcommittee on Federal Workforce, Postal
Service, and the District of Columbia.
Witnesses included: H. James Gooden, Chairman, Board of
Directors, American Lung Association; Donald J. Hall Jr.,
President and CEO, Hallmark Cards, Inc.; Allen Abbott,
Executive Vice President and Chief Operating Officer, Paul
Fredrick MenStyle, Inc. and Chairman, American Catalog Mailers
Association; Keith McFalls, Vice President of Operations,
PrimeMail and Triessant, Prime Theraputics; Paul Misener, Vice
President of Global Public Policy, Amazon.com; Andrew Rendich,
Chief Service and DVD Operations Officer, Netflix, Inc.; Don
Cantriel, President, National Rural Letter Carriers
Association; Frederic V. Rolando, President, National
Association of Letter Carriers, AFL-CIO; William Burrus,
President, American Postal Workers Union, AFL-Cio; Richard
Collins, Assistant to the President, National Postal Mail
Handlers Union; Louis Atkins, Executive Vice President,
National Association of Postal Supervisors; Charles Mapa,
President, National League of Postmasters; and Robert J.
Rapoza, President, National Association of Postmasters of the
United States.
22. July 13, 2010, ``The Cost Effectiveness of Procuring
Weapon Systems in Excess of Requirements: Can We Afford More C-
17s?''
In an effort to shed light on the need to reduce Federal
expenditures on unnecessary weapon systems, this hearing
examined the implications of procuring more weapon systems than
recommended by studies and assessments from the Department of
Defense. Specifically, this hearing examined the budgetary and
national security impact of procuring more C-17s strategic
airlifter than are required by the established airlift
requirements in the ``DOD Mobility Capabilities and
Requirements Study--2016.'' During the course of this hearing
we hoped the witness's testimony would factor in the cost
effectiveness of procuring additional C-17s and whether
maintaining a buffer between capabilities and requirements is
beneficial to national security and affordable for taxpayers.
Witnesses included: Hon. Michael McCord, Principal Deputy
Under Secretary of Defense, Comptroller, U.S. Department of
Defense; Alan Estevez, Deputy Assistant Secretary of Defense
for Logistical and Materiel Readiness Acquisition, Technology
and Logistics, U.S. Department of Defense; Major General Susan
Y. Desjardins, Director, Strategic Plans, Requirements and
Programs, Headquarters Air Mobility Command, U.S. Air Force;
Jeremiah Gertler, Specialist in Military Aviation,
Congressional Research Service; and William L. Greer, Ph.D.,
Assistant Director, System Evaluation Division, Institute for
Defense Analyses.
23. July 15, 2010, ``Preventing and Recovering Medicare
Payment Errors.''
This hearing explored the history of recovery audit
contracting within the Medicare program, as well as
opportunities for expanding the use of such contracting by the
Centers for Medicare and Medicaid Services. The Subcommittee
examined lessons learned from the recovery auditing experiences
of Medicare that could prove useful to a range of agencies
throughout the Federal Government considering similar
initiatives.
Witnesses included: Kathleen M. King, Director, Health
Care, U.S. Government Accountability Office; Deborah Taylor,
Chief Financial Office and Director, Office of Financial
Management, Centers for Medicare and Medicaid Services, U.S.
Department of Health and Human Services; Robert Vito, Acting
Assistant Inspector General, Centers for Medicare and Medicaid
Audits, Office of Inspector General, U.S. Department of Health
and Human Services; Libby Alexander, Chief Executive Officer,
Connolly Healthcare, Connolly, Inc.; Lisa Im, Chief Executive
Officer, Performant Financial Corporation; Andrea Benko,
President and Chief Executive Officer, HealthDataInsights,
Inc.; Robert Rolf, Vice President for Healthcare BPO, CGI
Federal, Inc.; and Romil Bahl, President and Chief executive
Officer, PRGX Global, Inc.
24. August 3, 2010, ``Transforming Government Through
Innovative Tools and Technology.''
This hearing explored unique and innovative techniques to
transform the way government operates. Specifically, the
hearing focused on how we use creative technologies to solve
problems and cut fraud, waste, and abuse from government
programs. The American Recovery and Reinvestment Act created a
new paradigm for how traditional government bureaucracy
approaches the allocation of taxpayer funds. The Recovery Board
fosters a collaborative relationship amongst the Federal
Inspector General community to ensure taxpayer funds are being
used efficiently and effectively. In addition, the Recovery
Board employs cutting edge data analysis and Web technologies
to root out fraud, waste, and abuse and inform the American
people. This hearing explored how the example set by the
Recovery Board can be used--and is being used--throughout
government, with a specific focus on Centers for Medicare and
Medicaid Services.
Witnesses who appeared are as follows: Earl Devaney,
Chairman of the Recovery Accountability and Transparency Board;
Daniel I. Werfel, Controller, Office of Federal Financial
Management, Office of Management and Budget; Alexander Karp,
Ph.D., Co-Founder and Chief Executive Officer, Palantir
Technologies; Robert R. McEwen, Chairman and Chief Executive
Officer, U.S. Goldcorp. Inc.; and Riley Crane, Ph.D., Media
Laboratory Human Dynamics Group, Massachusetts Institute of
Technology.
25. September 29, 2010, ``Improving Financial
Accountability at the Department of Defense.''
This hearing examined the plans laid out by the Department
of Defense for improving its financial accountability. Congress
established a requirement for the Department of Defense to
become ``audit ready'' by 2017. However, past hearings and
studies by the Government Accountability Office bring into
question whether the DOD, and the military services and
agencies, will meet this deadline. Further, the GAO placed
DOD's financial management on its list of ``high risk'' areas
of concern. Key questions for the hearing included whether the
DOD's financial improvement plan is adequate, and whether DOD
can and will meet the goals of this plan.
Witnesses who appeared at the hearing: Robert F. Hale,
Under Secretary of Defense and Chief Financial Officer, U.S.
Department of Defense; Elizabeth A. McGrath, Deputy Chief
Management Officer, U.S. Department of Defense; Eric Fanning,
Deputy Under Secretary of the Navy and Deputy Chief Management
Officer, U.S. Navy; David Tillotson III, Deputy Chief
Management Officer, U.S. Air Force; Lieutenant General Robert
E. Durbin, Acting Deputy Chief Management Officer, U.S. Army;
and Asif A. Khan, Director, Financial Management and Assurance,
U.S. Government Accountability Office.
26. December 2, 2010, ``Finding Solutions to the Challenges
Facing the U.S. Postal Service.''
This hearing examined the latest challenges facing the
financial state of the Postal Service. Testimony from postal
management and other stakeholders discussed the provisions in
S. 3831.
Witnesses included: Patrick R. Donahoe, Deputy Postmaster
General and Chief Operating Officer, U.S. Postal Service;
Jonathan Foley, Director of Planning and Policy Analysis,
Office of Personnel Management; Phillip Herr, Director,
Physical Infrastructure Issues, U.S. Government Accountability
Office; and Robert J. Rapoza, National President, National
Association of Postmasters of the United States; Hon. Ruth Y.
Goldway, Chairman, Postal Regulatory Commission; Frederic
Rolando, President, National Association of Letter Carriers,
AFL-CIO; and Jerry Cerasale, Senior Vice President, Government
Affairs, Direct Marketing Association, Inc., on behalfof
Affordable Mail Alliance.
II. LEGISLATION
S. 1083--Caribbean Count Act--Requires the Secretary of
Commerce to include in any questionnaire used in a decennial
census to determine State populations an option for respondents
to indicate Caribbean extraction or descent.
S. 1084--A bill to require that, in the questionnaires used
in the taking of any decennial census of population, a checkbox
or other similar option be included so that respondents may
indicate Dominican extraction or descent.
S. 1127--Disability Data Modernization Act. Directs the
Secretary of Commerce to include the Katz basic activities of
daily living scale and the Lawton-Brody instrumental activities
of daily living scale in any questionnaire used in the
decennial census and the American Community Survey.
S. 1211--A bill to designate the facility of the United
States Postal Service located at 60 School Street, Orchard
Park, New York, as the ``Jack F. Kemp Post Office Building.''
S. 1314--A bill to designate the facility of the United
States Postal Service located at 630 Northeast Killingsworth
Avenue in Portland, Oregon, as the ``Dr. Martin Luther King,
Jr. Post Office.''
S. 1567--Multinational Species Conservation Funds
Semipostal Stamp Act of 2009
S. 1688--Fairness in Representation Act--Directs the
Secretary of Commerce, in conducting the 2010 decennial census
and every decennial census thereafter, to include in any
questionnaire used for the purpose of determining the total
population by states, a checkbox or similar option for
respondents to indicate citizenship status or lawful presence
in the United States.
Requires the Secretary to adjust census figures as
necessary so that those who are not U.S. citizens or are not
lawfully present in the United States are not counted in
tabulating population for purposes of apportioning
Representatives in Congress among the states.
S. 2945--A bill to designate the facility of the United
States Postal Service located at 1210 West Main Street in
Riverhead, New York, as the ``Private First Class Garfield M.
Langhorn Post Office Building.''
S. 3012--A bill to designate the facility of the United
States Postal Service located at 2-116th Street in North Troy,
New York, as the ``Martin G. `Marty' Mahar Post Office.''
S. 3013--A bill to designate the facility of the United
States Postal Service located at 216 Westwood Avenue in
Westwood, New Jersey, as the ``Sergeant Christopher R. Hrbek
Post Office Building.''
S. 3145--A bill to amend section 1004 of title 39, United
States Code, to include that it is a policy of the Postal
Service to ensure reasonable and sustainable workloads and
schedules for supervisory and management employees and to
clarify provisions relating to consultation and changes or
terminations in certain proposals.
S. 3167--Census Oversight Efficiency and Management Reform
Act of 2010--Requires the individual appointed as Director of
the Census to have a demonstrated ability in managing large
organizations and experience in the collection, analysis, and
use of statistical data.
Provides that: (1) the Director shall report directly to
the Secretary of Commerce; and (2) no U.S. officer or agency
shall have authority to require the Director to submit
legislative recommendations, testimony, or comments for review
prior to the submission to Congress if such submission includes
a statement indicating that the views expressed are those of
the Bureau of the Census and do not necessarily represent the
views of the President.
Requires the term of office of the Director to be 5 years
and to begin on January 1, 2012, and every fifth year
thereafter. Prohibits an individual from serving more than two
full terms as Director. Sets forth provisions governing: (1)
vacancies in and removal from office; and (2) the authorities
and duties of the Director.
Requires the Director to establish a technology advisory
committee, whose members shall be selected from the public,
private, and academic sectors, to make recommendations to the
Director and publish reports on the use of commercially
available technologies and services to improve efficiencies and
manage costs in the implementation of the census and census-
related activities, including pilot projects.
Establishes the position of Deputy Director of the Census.
Requires the Director to: (1) provide a plan to Congress on
how the Bureau will test, develop, and implement an Internet
response option for the 2020 Census and the American Community
Survey; and (2) submit to the appropriate congressional
committees, by the date of submission of the President's budget
request for a fiscal year, a comprehensive status report on the
next decennial census.
Requires each report to include: (1) a description of the
Bureau's performance goals for each significant decennial
operation; (2) an assessment of the risks associated with each
such operation; (3) detailed milestone estimates for each such
operation; (4) updated cost estimates for the life cycle of the
decennial census; and (5) a detailed description of all
contracts over $50 million entered into for each such
operation.
S. 3465--A bill to designate the facility of the United
States Postal Service located at 15 South Main Street in
Sharon, Massachusetts, as the ``Michael C. Rothberg Post
Office.''
S. 3567--A bill to designate the facility of the United
States Postal Service located at 100 Broadway in Lynbrook, New
York, as the ``Navy Corpsman Jeffrey L. Wiener Post Office
Building.''
S. 3592--A bill to designate the facility of the United
States Postal Service located at 100 Commerce Drive in Tyrone,
Georgia, as the ``First Lieutenant Robert Wilson Collins Post
Office Building.''
H.R. 22--United States Postal Service Financial Relief Act
of 2009--Reduces the amount the United States Postal Service
must pay into the Postal Service Retiree Health Benefits Fund
by September 30, 2009, from $5.4 billion to $1.4 billion.
H.R. 663--To designate the facility of the United States
Postal Service located at 12877 Broad Street in Sparta,
Georgia, as the ``Yvonne Ingram-Ephraim Post Office Building.''
H.R. 774--To designate the facility of the United States
Postal Service located at 46-02 21st Street in Long Island
City, New York, as the ``Geraldine Ferraro Post Office
Building.''
H.R. 918--To designate the facility of the United States
Postal Service located at 300 East 3rd Street in Jamestown, New
York, as the ``Stan Lundine Post Office Building.''
H.R. 955--To designate the facility of the United States
Postal Service located at 10355 Northeast Valley Road in
Rollingbay, Washington, as the ``John `Bud' Hawk Post Office.''
H.R. 987--To designate the facility of the United States
Postal Service located at 601 8th Street in Freedom,
Pennsylvania, as the ``John Scott Challis, Jr. Post Office.''
H.R. 1216--To designate the facility of the United States
Postal Service located at 1100 Town and Country Commons in
Chesterfield, Missouri, as the ``Lance Corporal Matthew P.
Pathenos Post Office Building.''
H.R. 1217--To designate the facility of the United States
Postal Service located at 15455 Manchester Road in Ballwin,
Missouri, as the ``Specialist Peter J. Navarro Post Office
Building.''
H.R. 1218--To designate the facility of the United States
Postal Service located at 112 South 5th Street in Saint
Charles, Missouri, as the ``Lance Corporal Drew W. Weaver Post
Office Building.''
H.R. 1271--To designate the facility of the United States
Postal Service located at 2351 West Atlantic Boulevard in
Pompano Beach, Florida, as the ``Elijah Pat Larkins Post Office
Building.''
H.R. 1284--To designate the facility of the United States
Postal Service located at 103 West Main Street in McLain,
Mississippi, as the ``Major Ed W. Freeman Post Office.''
H.R. 1397--To designate the facility of the United States
Postal Service located at 41 Purdy Avenue in Rye, New York, as
the ``Caroline O'Day Post Office Building.''
H.R. 1454--Multinational Species Conservation Funds
Semipostal Stamp Act of 2010--Requires the United States Postal
Service to issue and sell, at a premium, a Multinational
Species Conservation Funds Semipostal Stamp. Requires the use
of such a stamp to be voluntary on the part of postal patrons.
Requires proceeds from the sale of such stamp to be: (1)
transferred to the United States Fish and Wildlife Service
(USFWS) to help fund the operations supported by the
Multinational Species Conservation Funds; and (2) divided
equally among the African Elephant Conservation Fund, the Asian
Elephant Conservation Fund, the Great Ape Conservation Fund,
the Marine Turtle Conservation Fund, the Rhinoceros and Tiger
Conservation Fund, and other international wildlife
conservation funds authorized by Congress after the date of
this Act's enactment. Prohibits such proceeds from being taken
into account in any decision relating to the level of
appropriations or other Federal funding to be furnished to the
USFWS or such Funds.
Requires the stamp to be made available to the public for
at least 2 years.
Prohibits such proceeds from being used to fund or support
the Wildlife Without Borders Program or to supplement funds
made available for the Neotropical Migratory Bird Conservation
Fund.
H.R. 1516--To designate the facility of the United States
Postal Service located at 37926 Church Street in Dade City,
Florida, as the ``Sergeant Marcus Mathes Post Office.''
H.R. 1713--To name the South Central Agricultural Research
Laboratory of the Department of Agriculture in Lane, Oklahoma,
and the facility of the United States Postal Service located at
310 North Perry Street in Bennington, Oklahoma, in honor of
former Congressman Wesley ``Wes'' Watkins.
H.R. 1817--To designate the facility of the United States
Postal Service located at 116 North West Street in Somerville,
Tennessee, as the ``John S. Wilder Post Office Building.''
H.R. 2090--To designate the facility of the United States
Postal Service located at 431 State Street in Ogdensburg, New
York, as the ``Frederic Remington Post Office Building.''
H.R. 2162--To designate the facility of the United States
Postal Service located at 123 11th Avenue South in Nampa,
Idaho, as the ``Herbert A Littleton Postal Station.''
H.R. 2173--To designate the facility of the United States
Postal Service located at 1009 Crystal Road in Island Falls,
Maine, as the ``Carl B. Smith Post Office.''
H.R. 2174--To designate the facility of the United States
Postal Service located at 18 Main Street in Howland, Maine, as
the ``Clyde Hichborn Post Office.''
H.R. 2215--To designate the facility of the United States
Postal Service located at 140 Merriman Road in Garden City,
Michigan, as the ``John J. Shivnen Post Office Building.''
H.R. 2325--To designate the facility of the United States
Postal Service located at 1300 Matamoros Street in Laredo,
Texas, as the ``Laredo Veterans Post Office.''
H.R. 2422--To designate the facility of the United States
Postal Service located at 2300 Scenic Drive in Georgetown,
Texas, as the ``Kile G. West Post Office Building.''
H.R. 2470--To designate the facility of the United States
Postal Service located at 19190 Cochran Boulevard FRNT in Port
Charlotte, Florida, as the ``Lieutenant Commander Roy H. Boehm
Post Office Building.''
H.R. 2877--To designate the facility of the United States
Postal Service located at 76 Brookside Avenue in Chester, New
York, as the ``1st Lieutenant Louis Allen Post Office.''
H.R. 2971--To designate the facility of the United States
Postal Service located at 630 Northeast Killingsworth Avenue in
Portland, Oregon, as the ``Dr. Martin Luther King, Jr. Post
Office.''
H.R. 2972--To designate the facility of the United States
Postal Service located at 115 West Edward Street in Erath,
Louisiana, as the ``Conrad DeRouen, Jr. Post Office.''
H.R. 3072--To designate the facility of the United States
Postal Service located at 9810 Halls Ferry Road in St. Louis,
Missouri, as the ``Coach Jodie Bailey Post Office Building.''
H.R. 3119--To designate the facility of the United States
Postal Service located at 867 Stockton Street in San Francisco,
California, as the ``Lim Poon Lee Post Office.''
H.R. 3137--To amend title 39, United States Code, to
provide clarification relating to the authority of the United
States Postal Service to accept donations as an additional
source of funding for commemorative plaques.
H.R. 3250--To designate the facility of the United States
Postal Service located at 1210 West Main Street in Riverhead,
New York, as the ``Private First Class Garfield M. Langhorn
Post Office Building.''
H.R. 3319--To designate the facility of the United States
Postal Service located at 440 South Gulling Street in Portola,
California, as the ``Army Specialist Jeremiah Paul McCleery
Post Office Building.''
H.R. 3386--To designate the facility of the United States
Postal Service located at 1165 2nd Avenue in Des Moines, Iowa,
as the ``Iraq and Afghanistan Veterans Memorial Post Office.''
H.R. 3539--To designate the facility of the United States
Postal Service located at 427 Harrison Avenue in Harrison, New
Jersey, as the ``Patricia D. McGinty-Juhl Post Office
Building.''
H.R. 3547--To designate the facility of the United States
Postal Service located at 936 South 250 East in Provo, Utah, as
the ``Rex E. Lee Post Office Building.''
H.R. 3767--To designate the facility of the United States
Postal Service located at 170 North Main Street in Smithfield,
Utah, as the ``W. Hazen Hillyard Post Office Building.''
H.R. 3788--To designate the facility of the United States
Postal Service located at 3900 Darrow Road in Stow, Ohio, as
the ``Corporal Joseph A. Tomci Post Office Building.''
H.R. 3892--To designate the facility of the United States
Postal Service located at 101 West Highway 64 Bypass in Roper,
North Carolina, as the ``E.V. Wilkins Post Office.''
H.R. 4095--To designate the facility of the United States
Postal Service located at 9727 Antioch Road in Overland Park,
Kansas, as the ``Congresswoman Jan Meyers Post Office
Building.''
H.R. 4139--To designate the facility of the United States
Postal Service located at 7464 Highway 503 in Hickory,
Mississippi, as the ``Sergeant Matthew L. Ingram Post Office.''
H.R. 4214--To designate the facility of the United States
Postal Service located at 45300 Portola Avenue in Palm Desert,
California, as the ``Roy Wilson Post Office.''
H.R. 4238--To designate the facility of the United States
Postal Service located at 930 39th Avenue in Greeley, Colorado,
as the ``W.D. Farr Post Office Building.''
H.R. 4495--To designate the facility of the United States
Postal Service located at 100 North Taylor Lane in Patagonia,
Arizona, as the ``Jim Kolbe Post Office.''
H.R. 4543--To designate the facility of the United States
Postal Service located at 4285 Payne Avenue in San Jose,
California, as the ``Anthony J. Cortese Post Office Building.''
H.R. 4547--To designate the facility of the United States
Postal Service located at 119 Station Road in Cheyney,
Pennsylvania, as the ``Captain Luther H. Smith, U.S. Army Air
Forces Post Office.''
H.R. 4624--To designate the facility of the United States
Postal Service located at 125 Kerr Avenue in Rome City,
Indiana, as the ``SPC Nicholas Scott Hartge Post Office.''
H.R. 4628--To designate the facility of the United States
Postal Service located at 216 Westwood Avenue in Westwood, New
Jersey, as the ``Sergeant Christopher R. Hrbek Post Office
Building.''
H.R. 4861--To designate the facility of the United States
Postal Service located at 1343 West Irving Park Road in
Chicago, Illinois, as the ``Steve Goodman Post Office
Building.''
H.R. 5051--To designate the facility of the United States
Postal Service located at 23 Genesee Street in Hornell, New
York, as the ``Zachary Smith Post Office Building.''
H.R. 5099--To designate the facility of the United States
Postal Service located at 15 South Main Street in Sharon,
Massachusetts, as the ``Michael C. Rothberg Post Office.''
H.R. 5133--To designate the facility of the United States
Postal Service located at 331 1st Street in Carlstadt, New
Jersey, as the ``Staff Sergeant Frank T. Carvill and Lance
Corporal Michael A. Schwarz Post Office Building.''
H.R. 5278--To designate the facility of the United States
Postal Service located at 405 West Second Street in Dixon,
Illinois, as the ``President Ronald W. Reagan Post Office
Building.''
H.R. 5341--To designate the facility of the United States
Postal Service located at 100 Orndorf Drive in Brighton,
Michigan, as the ``Joyce Rogers Post Office Building.''
H.R. 5390--To designate the facility of the United States
Postal Service located at 13301 Smith Road in Cleveland, Ohio,
as the ``David John Donafee Post Office Building.''
H.R. 5395--To designate the facility of the United States
Postal Service located at 151 North Maitland Avenue in
Maitland, Florida, as the ``Paula Hawkins Post Office
Building.''
H.R. 5450--To designate the facility of the United States
Postal Service located at 3894 Crenshaw Boulevard in Los
Angeles, California, as the ``Tom Bradley Post Office
Building.''
H.R. 5873--To designate the facility of the United States
Postal Service located at 218 North Milwaukee Street in
Waterford, Wisconsin, as the ``Captain Rhett W. Schiller Post
Office.''
S. Con. Res. 32--A bill expressing the sense of Congress on
health care reform legislation.
S. Con. Res. 33--A concurrent resolution expressing the
sense of Congress that a commemorative postage stamp should be
issued to honor the crew of the USS Mason DE-529 who fought and
served during World War II.
S. Con. Res. 34--A concurrent resolution expressing the
sense of Congress that a commemorative postage stamp should be
issued to honor the crew of the USS Mason DE-529 who fought and
served during World War II.
S. Con. Res. 44--A concurrent resolution expressing the
sense of Congress that a postage stamp should be issued to
commemorate the War of 1812 and that the Citizens' Stamp
Advisory Committee should recommend to the Postmaster General
that such a stamp be issued.
S. Con. Res. 49--A concurrent resolution expressing the
sense of Congress that a commemorative postage stamp should be
issued to honor the life of Elijah Parish Lovejoy.
S. Con. Res. 68--A concurrent resolution expressing the
sense of Congress that the United States Postal Service should
issue a commemorative postage stamp honoring civil rights
workers Andrew Goodman, James Chaney, and Michael Schwerner,
and the ``Freedom Summer'' of 1964, and that the Citizens'
Stamp Advisory Committee should recommend to the Postmaster
General that such a stamp be issued.
III. GAO REPORTS
GAO-09-228, Small Business Administration: Additional
Guidance on Documenting Credit Elsewhere Decisions Could
Improve 7(a) Program Oversight, (02/12/2009)
GAO-09-262, Information Technology: Census Bureau Testing
of 2010 Decennial Systems Can Be Strengthened, (03/05/2009)
GAO-09-373, Financial Management: Achieving Financial
Statement Auditability in the Department of Defense, (05/06/
2009)
GAO-09-328, Financial Management Systems: OMB's Financial
Management Line of Business Initiative Continues but Future
Success Remains Uncertain, (05/07/2009)
GAO-09-630, Federal Contracting: Guidance on Award Fees Has
Led to Better Practices but Is Not Consistently Applied, (05/
29/2009)
GAO-09-671, Hurricanes Gustav and Ike Disaster Assistance:
FEMA Strengthened Its Fraud Prevention Controls, but Customer
Service Needs Improvement, (06/19/2009)
GAO-09-566, Information Technology: Federal Agencies Need
to Strengthen Investment Board Oversight of Poorly Planned and
Performing Projects, (06/30/2009)
GAO-09-696, U.S. Postal Service: Mail Delivery Efficiency
Has Improved, but Additional Actions Needed to Achieve Further
Gains, (07/15/2009)
GAO-09-442, Improper Payments: Significant Improvements
Needed in DOD's Efforts to Address Improper Payment and
Recovery Auditing Requirements, (07/29/2009)
GAO-09-676, Results-Oriented Management: Strengthening Key
Practices at FEMA and Interior Could Promote Greater Use of
Performance Information, (08/17/2009)
GAO-09-957, Medicaid: Fraud and Abuse Related to Controlled
Substances Identified in Selected States, (09/09/2009)
GAO-09-617, Information Security: Concerted Effort Needed
to Improve Federal Performance Measures, (09/14/2009)
GAO-10-2, Information Technology: Agencies Need to Improve
the Implementation and Use of Earned Value Techniques to Help
Manage Major System Acquisitions, (10/08/2009)
GAO-10-59, 2010 Census: Census Bureau Has Made Progress on
Schedule and Operational Control Tools, but Needs to Prioritize
Remaining System Requirements, (11/13/2009)
GAO-10-76, Financial Management Systems: DHS Faces
Challenges to Successfully Consolidating Its Existing Disparate
Systems,( 12/04/2009)
GAO-10-263, Formula Grants: Funding for the Largest Federal
Assistance Programs Is Based on Census-Related Data and Other
Factors, (12/15/2009)
GAO-10-237, Information Security: Concerted Effort Needed
to Consolidate and Secure Internet Connections at Federal
Agencies, (03/12/2010)
GAO-10-202, Information Security: Agencies Need to
Implement Federal Desktop Core Configuration Requirements, (03/
12/2010)
GAO-10-455, U.S. Postal Service: Strategies and Options to
Facilitate Progress toward Financial Viability, (04/12/2010)
GAO-10-394, Streamlining Government: Opportunities Exist to
Strengthen OMB's Approach to Improving Efficiency, (05/07/2010)
GAO-10-513, Information Security: Federal Guidance Needed
to Address Control Issues with Implementing Cloud Computing,
(05/27/2010)
GAO-10-444, Social Security Administration: Cases of
Federal Employees and Transportation Drivers and Owners Who
Fraudulently and/or Improperly Received SSA Disability
Payments, (06/25/2010)
GAO-10-701, Information Technology: OMB's Dashboard Has
Increased Transparency and Oversight, but Improvements Needed,
(07/16/2010)
GAO-10-808, Financial Management Systems: Experience with
Prior Migration and Modernization Efforts Provides Lessons
Learned for New Approach, (09/08/2010)
GAO-10-693, Contractor Integrity: Stronger Safeguards
Needed for Contractor Access to Sensitive Information, (09/10/
2010)
GAO-11-53, DOD Business Transformation: Improved Management
Oversight of Business System Modernization Efforts Needed, (10/
07/2010)
GAO-11-45, 2010 Census: Key Efforts to Include Hard-to-
Count Populations Went Generally as Planned; Improvements Could
Make the Efforts More Effective for Next Census, (12/14/2010)
GAO-11-154, 2010 Census: Follow-up Should Reduce Coverage
Errors, but Effects on Demographic Groups Need to Be
Determined, (12/14/2010)
GAO-11-193, 2010 Census: Data Collection Operations Were
Generally Completed as Planned, but Long-standing Challenges
Suggest Need for Fundamental Reforms, (12/14/2010)
SUBCOMMITTEE ON OVERSIGHT OF GOVERNMENT
MANAGEMENT, THE FEDERAL WORKFORCE,
AND THE DISTRICT OF COLUMBIA
Chairman: Daniel K. Akaka
Ranking Minority Member: George V. Voinovich
I. HEARINGS
The Senate Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of Columbia
held the following hearings during the 111th Congress:
Protecting Animal and Public Health: Homeland Security and the Federal
Veterinarian Workforce, February 26, 2009
This hearing focused on a number of issues identified in a
U.S. Government Accountability Office review of the Federal
veterinarian workforce. At the request of the Subcommittee, GAO
examined the Federal Government's efforts in assessing the
sufficiency of this workforce for routine program activities
and catastrophic events, including pandemic outbreaks, as well
as the workforce challenges Federal and State agencies
encountered during four recent zoonotic outbreaks.
The Federal veterinarian workforce defends against
naturally and intentionally introduced diseases that could harm
human and animal health. A number of Federal departments and
agencies employ veterinarians who perform critical food safety,
research, and public health functions. The U.S. Department of
Agriculture has over 1,700 veterinarians, the most of any
department. The Departments of Defense and Health and Human
Services also have sizable Federal veterinarian workforces.
Within these and other departments, subordinate agencies
specialize in various functions, such as ensuring the humane
treatment of animals at slaughterhouses, monitoring wildlife
for illness, researching animal disease outbreaks, and
coordinating disease response plans.
At the hearing, Chairman Akaka highlighted the growing
threat of animal and zoonotic disease outbreaks and the need
for more strategic human capital planning for agencies with
Federal veterinarians. The witnesses provided recommendations
to strengthen this workforce, including increasing the capacity
of veterinary institutions and providing retention incentives.
The witnesses were: Lisa R. Shames, Director, Natural
Resources and Environment, U.S. Government Accountability
Office; Nancy H. Kichak, Associate Director, Strategic Human
Resources Policy Division, U.S. Office of Personnel Management;
Gerald W. Parker, DVM, Ph.D., MS, Principal Deputy Assistant
Secretary, Office of the Assistant Secretary for Preparedness
and Response, U.S. Department of Health and Human Services;
Jill M. Crumpacker, Director, Office of Human Capital
Management, U.S. Department of Agriculture; Thomas J. McGinn,
III, DVM, Chief Veterinarian and Director, Food, Agriculture,
and Veterinary Defense Division, Office of Health Affairs and
Office of the Chief Medical Officer, U.S. Department of
Homeland Security; W. Ron DeHaven, DVM, MBA, Chief Executive
Officer, American Veterinary Medical Association; Michael
Gilsdorf, DVM, Executive Vice President, National Association
of Federal Veterinarians; and Marguerite Pappaioanou, DVM,
MPVM, Ph.D., DIP/ACVPM, Executive Director, Association of
American Veterinary Medical Colleges.
Stability Through Scandal: A Review of the Office of the Chief
Financial Officer, March 31, 2009
The hearing examined challenges facing the Office of the
Chief Financial Officer, including projected revenue shortfalls
in the coming fiscal years and financial management weaknesses
that led to various scandals, such as the November 2007 fraud
scheme that resulted in approximately $48 million being
misappropriated from the Office of Tax and Revenue.
The Subcommittee found that the OCFO has made steady
progress, posting 12 consecutive balanced budgets and
rebuilding the District's reputation amongst lenders. However,
the OCFO must continue to improve its internal controls to
enable it to detect, deter, and prevent fraud.
The witnesses were: Natwar M. Gandhi, Chief Financial
Officer, Office of the Chief Financial Officer, District of
Columbia; Charles J. Willoughby, Inspector General, District of
Columbia Office of the Inspector General.
The Federal Government's Role in Empowering Americans to Make Informed
Financial Decisions, April 29, 2009
This hearing reviewed the progress of the Financial
Literacy and Education Commission and examined the
effectiveness of Federal financial education programs.
Government and private studies indicate that far too many
Americans of all ages lack the knowledge and skills necessary
to make informed decisions regarding their personal finances.
As a way to address this problem, Congress created the
Financial Literacy and Education Commission in 2003, composed
of the head of 20 individual Federal agencies and tasked with
reviewing financial literacy and education efforts throughout
the Federal Government; identifying and eliminating duplicate
financial literacy efforts; and coordinating the promotion of
Federal financial literacy efforts.
The U.S. Government Accountability Office issued a report
in December 2006, and testified before the Subcommittee in
April 2007, reviewing the Commission's effectiveness. GAO found
that the National Strategy for Financial Literacy was a useful
first step, but that it was more descriptive rather than
strategic and lacked certain key characteristics that are
needed in a national strategy. Furthermore, GAO observed that
the National Strategy's effect on public and private entities
that conduct financial education may be limited. GAO conducted
an updated assessment of the Commission's progress in
implementing its recommendations and released its findings at
this hearing. GAO found that the Commission's National Strategy
still did not serve as a functional strategy; the Commission
has made progress in fostering partnerships with the private
and nonprofits sectors to promote financial literacy; and that
the Commission continues to face challenges of having limited
resources and coordinating 20 individual agencies. This hearing
also highlighted work by organizations and agencies, such as
the Excellence in Economic Education, American Savings
Education Council, and the Office of Personnel Management, to
improve financial literacy by promoting financial education
programs.
Witnesses: Hon. John Berry, Director, U.S. Office of
Personnel Management, accompanied by Dr. Raymond J. Kirk,
Manager of Benefits Officers Training and Development Group,
U.S. Office of Personnel Management; James H. Shelton, III,
Assistant Deputy Secretary for Innovation and Improvement, U.S.
Department of Education; Arthur J. Myers, Principal Director
and Acting Under Secretary of Defense for Military Community
and Family Policy, U.S. Department of Defense; Sandra F.
Braunstein, Director, Division of Consumer and Community
Affairs, Board of Governors of the Federal Reserve System;
Richard J. Hillman, Managing Director, Financial Markets and
Community Investment, U.S. Government Accountability Office;
Dr. Robert F. Duvall, President and CEO, Council for Economic
Education; and Dallas L. Salisbury, President and CEO, Employee
Benefit Research Institute and Chairman, American Savings
Education Council.
National Security Reform: Implementing a National Security Service
Workforce, April 30, 2009
This hearing examined the existing and proposed efforts to
develop national security professionals, particularly civilian
joint duty rotation programs; the implementation challenges
associated with these programs; and recommendations to improve
on existing efforts. Additionally, this hearing explored
findings and recommendations from recent reports that have
examined aspects of the national security workforce.
In 1986, the Goldwater-Nichols Act was enacted to develop
officers from the military services who are prepared to handle
complex, joint warfare challenges. To be eligible for promotion
to the rank of brigadier general or equivalent, officers are
required to complete joint education and assignments. To many
observers, this Act has created more capable military officers.
The Federal workforce, specifically the civil service, may also
benefit from a similar program to develop its national security
workforce. Catastrophic incidents such as the terrorist attacks
of September 11, 2001, and Hurricane Katrina, along with
operational challenges in stabilizing and reconstructing
countries such as Iraq and Afghanistan, have illustrated a need
for a national security workforce with greater interagency
expertise.
Witnesses testified about the need to create greater
interagency expertise in the Federal workforce, the success of
the Intelligence Community's joint duty program, and potential
challenges standing in the way of implementing an interagency
national security workforce.
The witnesses were: Nancy H. Kichak, Associate Director,
Strategic Human Resources Policy Division, U.S. Office of
Personnel Management; Major General William A. Navas, Jr., USA
(Ret.), Executive Director, National Security Professional
Development Integration Office; Ronald P. Sanders, Ph.D.,
Associate Director of National Intelligence, for Human Capital,
and Intelligence Community Chief Human Capital Officer, Office
of the Director of National Intelligence; Hon. Bob Graham,
Former Senator from the State of Florida, and Chairman,
Commission on the Prevention of Weapons of Mass Destruction,
Proliferation, and Terrorism; Ambassador Thomas R. Pickering,
Former Under Secretary of State for Political Affairs, U.S.
Department of State, and Guiding Coalition Member, Project on
National Security Reform; and James R. Thompson, Ph.D.,
Associate Professor, and Head, Department of Public
Administration, University of Illinois-Chicago.
Uncle Sam Wants You! Recruitment in the Federal Government, May 7, 2009
The hearing was the second hearing held by the Subcommittee
to examine Federal recruitment efforts and processes. The
Subcommittee also sought recommendations on the Federal Hiring
Process Improvement Act of 2009 (S. 736) from the witnesses.
The hearing focused on job postings, candidate outreach, and
communication with applicants in the hiring process.
The Subcommittee reviewed improvements made in Federal
recruitment and hiring, such as the Office of Personnel
Management's ``End to End Hiring Roadmap.'' Notwithstanding
this progress, vague job postings, lengthy applications, and
insufficient applicant notification during the hiring process
continue to be problems, and witnesses testified that S. 736,
if enacted, will address these problems. Additionally, Director
Berry testified that government-wide reform had yet to take
root.
The witnesses were: Hon. John Berry, Director, U.S. Office
of Personnel Management; Susan L. Duncan, Director, Civilian
Personnel Management, Office of the Deputy Chief of Staff, U.S.
Department of the Army; Gail T. Lovelace, Chief Human Capital
Officer, U.S. General Services Administration; Max Stier,
President and Chief Executive Officer, Partnership for Public
Service; Linda E.B. Rix, Co-Chief Executive Officer, Avue
Technologies Corporation.
Public Health Challenges in Our Nation's Capital, May 19, 2009
The hearing reviewed the major public health threats facing
the District of Columbia, including an HIV/AIDS epidemic,
kidney disease, and unsafe drinking water. The Subcommittee
reviewed steps Mayor Adrian Fenty has taken to address these
risks, such as creating the HIV/AIDS Administration and the
Community Health Administration. In particular, the hearing
examined the District's outreach initiatives and the progress
it has made toward curbing its chronic health epidemics.
The Subcommittee examined efforts to increase testing and
community outreach to District residents for HIV/AIDS and
chronic diseases. The District has improved collaboration
between its agencies to ensure children have access to
healthier foods and make healthier life choices. While there
has been progress, the hearing highlighted the need for
continued improvement in communication between the agencies and
further work to ensure that more residents have access to
testing and health care.
The witnesses were: Pierre N.D. Vigilance, M.D., MPH,
Director, District of Columbia Department of Health; Shannon L.
Hader, M.D., MPH, Senior Deputy Director, HIV/AIDS
Administration, District of Columbia Department of Health; and
Raymond C. Martins, M.D., Chief Medical Officer, Whitman-Walker
Clinic and Clincial Professor of Medicine, George Washington
University.
S. 372--The Whistleblower Protection Enhancement Act of 2009, June 11,
2009
The purpose of the hearing was to examine shortcomings in
Federal employee whistleblower protections and the pending
Whistleblower Protection Enhancement Act of 2009 (S. 372). The
hearing also addressed differences between S. 372 and the House
companion bill H.R. 1507.
Federal employees are encouraged to disclose government
waste, fraud, and abuse, also referred to as
``whistleblowing.'' The Civil Service Reform Act of 1978
created statutory protections for Federal employees to
encourage disclosure of government illegality, waste, fraud,
and abuse. Over the years, Congress determined that the CSRA
did not protect whistleblowers from reprisals as intended.
Thus, in 1989, Congress enacted the Whistleblower Protection
Act, which amended the CSRA and enhanced protections for
employees who disclose wrongdoing in the Federal Government.
However, the Merit Systems Protection Board and Federal Circuit
have continued to narrowly interpret the WPA.
Since 2000, Senator Akaka and other Members have introduced
several bills to strengthen the WPA, including S. 372 in the
111th Congress. This hearing reviewed the impact S. 372 and
H.R. 1507, or alternate proposals, would have on Federal
whistleblowers, Federal agencies, national security, and the
public interest. Specifically, the hearing focused on whether
whistleblower protections should be expanded for the
intelligence community and whether Federal employees should be
permitted to bring whistleblower cases to the District Court
under certain circumstances.
Witnesses: Rajesh De, Deputy Assistant Attorney General,
Office of Legal Policy, U.S. Department of Justice; William L.
Bransford, General Counsel, Senior Executives Association;
Danielle Brian, Executive Director, Project on Government
Oversight; Thomas Devine, Legal Director, Government
Accountability Project; and Robert G. Vaughn, Professor of Law,
Washington College of Law, American University.
Protecting Our Employees: Pandemic Influenza Preparedness and the
Federal Workforce, June 16, 2009
The hearing examined the preparedness of Federal agencies
to protect the Federal workforce and continue their essential
functions in the event of a pandemic influenza. In particular,
the hearing focused on issues identified by the U.S. Government
Accountability Office in a report on that subject requested by
the Subcommittee.
GAO found that while all of the agencies it surveyed are
taking steps to protect their workers in the event of a
pandemic influenza, the progress is uneven, and some agencies
are only in the early stages of developing their pandemic
plans. Moreover, according to the GAO report, there is no
mechanism in place to track the Federal agencies' progress in
workforce preparedness efforts.
The hearing reviewed the work that the Department of
Homeland Security, the Department of Health and Human Services,
the Office of Personnel Management, and the White House
Security Council are doing to ensure that Federal agencies are
prepared to continue their essential functions in the event of
a pandemic influenza. However, it became clear from the
witnesses' testimony that there was no ``lead agency'' on this
matter. Moreover, witnesses from both the American Federation
of Government Employees and the National Treasury Employees
Union testified that Federal employees were receiving
conflicting guidance from the Department of Homeland Security
and on-site supervisors regarding steps that they were
permitted to take to protect themselves from influenza
infection at the workplace.
The witnesses were: Hon. Elaine C. Duke, Under Secretary
for Management, U.S. Department of Homeland Security; W. Craig
Vanderwagen, M.D., Assistant Secretary for Preparedness and
Response, U.S. Department of Health and Human Services; Nancy
H. Kichak, Associate Director, Strategic Human Resource Policy
Division, U.S. Office of Personnel Management; Bernice
Steinhardt, Director for Strategic Issues, U.S. Government
Accountability Office; T.J. Bonner, President, National Border
Patrol Council, American Federation of Government Employees
AFL-CIO; and Maureen Gilman, Legislative Director, National
Treasury Employees Union.
D.C. Public Schools: Taking Stock of Education Reform, July 23, 2009
The hearing was the third in a series of hearings held by
the Subcommittee to examine the reforms of D.C. Public Schools
that have resulted from the D.C. Public Education Reform
Amendment Act of 2007. The Reform Act permitted Mayor Fenty to
assume control of DCPS, established DCPS as a cabinet-level
agency administered by a Chancellor, and created an Office of
the Deputy Mayor of Education, headed by the Deputy Mayor for
Education.
The hearing examined the findings of the U.S. Government
Accountability Office long-term study on the status of those
DCPS reforms titled, District of Columbia Public Schools:
Important Steps Taken to Continue Reform Efforts, But Enhanced
Planning Could Improve Implementation and Sustainability. In
particular, the Subcommittee examined efforts to increase and
measure student achievement, improve teacher and principal
quality, increase strategic planning and systematic stakeholder
involvement, and improve accountability in both the DCPS and
State Superintendent's central offices. The hearing highlighted
the need for the District of Columbia to increase stakeholder
involvement in DCPS reforms and to link individual performance
evaluations to the agency's goals in order to effectively
implement the reforms.
The witnesses were: Michelle Rhee, Chancellor, D.C. Public
Schools; Victor Reinoso, Deputy Mayor for Education, District
of Columbia; Kerri L. Briggs, Ph.D., Acting State
Superintendent of Education for the District of Columbia;
Cornelia M. Ashby, Director of Education, Workforce, and Income
Security Issues, U.S. Government Accountability Office.
Strengthening the Federal Acquisition Workforce: Government-wide
Leadership and Initiatives, August 5, 2009
The hearing reviewed the status of efforts to strengthen
the Federal acquisition workforce against the backdrop of
dramatic growth in contracting spending, a static size of the
Federal acquisition workforce, and an expected wave of
retirements within that workforce. In particular, the hearing
examined whether the Administration is providing effective
government-wide leadership and coordination on acquisition
workforce issues and whether agencies with significant contract
expenditures have the tools they need to build sufficient
internal capacity to oversee mission-critical contracts.
The Subcommittee found that the Office of Management and
Budget, the Office of Personnel Management, and the General
Services Administration are working to address these workforce
challenges, including developing OMB guidance to require
agencies to address the weaknesses of their acquisition
workforces. However, the Subcommittee found some agencies with
significant contracting expenditures lack coordination between
their acquisition and human resources offices, which results in
a lack of awareness of the tools available to them to hire and
retain the acquisition workforce needed to achieve their
missions. The hearing witnesses were supportive of efforts to
improve the Federal hiring process and the purposes of Senator
Akaka's Federal Hiring Process Improvement Act of 2009 (S.
736).
The witnesses were: Hon. Jeffrey D. Zients, Deputy Director
for Management and Chief Performance Officer, Office of
Management and Budget; Nancy H. Kichak, Associate Director,
Strategic Human Resource Policy, U.S. Office of Personnel
Management; David A. Drabkin, Acting Chief Acquisition Officer,
U.S. General Services Administration; Hon. Elaine C. Duke,
Under Secretary for Management, U.S. Department of Homeland
Security; William P. McNally, Assistant Administrator for
Procurement and Deputy Chief Acquisition Officer, National
Aeronautics and Space Administration; John R. Bashista, Deputy
Director, Office of Procurement and Assistance Management, U.S.
Department of Energy; and Deidre A. Lee, Executive Vice
President of Federal Affairs and Operations, Professional
Services Council.
Security Clearance Reform: Moving Forward on Modernization, September
15, 2009
This hearing updated the Subcommittee on progress made to
reform the security clearance process in response to
recommendations and initiatives of the Joint Security and
Suitability Reform Team over the past year. This was the
Subcommittee's sixth hearing on the clearance process.
In 2005, the U.S. Government Accountability Office placed
the Department of Defense Security Clearance process on the GAO
High-Risk List due to a mounting backlog of clearance requests,
as well as DoD's inability to manage the backlog. Shortly
thereafter, DoD transferred the investigative role for
clearances to the U.S. Office of Personnel Management. Since
then, GAO has testified that there are overarching problems
with the government-wide personnel security clearances.
In a 2008 memo from President Bush, a Joint Reform Team was
created and instructed, under the direction of OMB, to submit
an initial report outlining how to improve the security
clearance process along with executive and legislative actions
to implement such reforms. The group submitted its initial
report and recommendations on April 30, 2008. On June 30, 2008,
President Bush issued Executive Order 13467, which formalized
the Joint Reform Team's recommended reforms and established a
Suitability and Security Clearance Performance Accountability
Council to lead government-wide reform efforts.
Since the creation of the PAC, through increased effort and
a surge in investigative capacity, clearance backlogs
diminished greatly and timeliness has improved. As of the
hearing, OPM was on track to meet the 2009 benchmark of
completing 90 percent of investigations within an average of 40
days. However, there has been relatively little change in the
technology in use in the clearance process since it was placed
on the High-Risk List. Many of the systems are last generation
technologies that do not have modern capabilities that could
speed the clearance process and take advantage of electronic
investigation sources.
The witnesses were: Hon. Jeffrey D. Zients, Deputy Director
for Management, Office of Management and Budget; Hon. John
Berry, Director, U.S. Office of Personnel Management; Hon.
James R. Clapper, Under Secretary of Defense for Intelligence,
U.S. Department of Defense; David R. Shedd, Deputy Secretary of
National Intelligence for Policy, Plans and Requirements, U.S.
Office of the Director of National Intelligence; and Brenda S.
Farrell, Director, Defense Capabilities and Management, U.S.
Government Accountability Office.
A Review of U.S. Diplomatic Readiness: Addressing the Staffing and
Foreign Language Challenges Facing the Foreign Service,
September 24, 2009
At the request of this Subcommittee, the U.S. Government
Accountability Office undertook two reviews of diplomatic
readiness at the U.S. Department of State. First, GAO analyzed
experience and staffing gaps that may complicate the Department
of State's efforts in conducting foreign policy at its overseas
posts. Second, GAO reviewed language proficiency shortfalls at
the Department's missions abroad. This hearing focused on the
findings and recommendations from those reviews.
The State Department's diplomats help formulate and lead
the implementation of the Nation's foreign policy, and they
represent the United States abroad through public outreach,
consular services, economic relations, and other activities.
Diplomatic readiness, which the Department defines as ``its
ability to get the right people in the right place at the right
time with the right skills to carry out America's foreign
policy,'' provides the U.S. these capabilities. Over the past
decade, many challenges have confronted U.S. diplomatic
readiness, including significant staffing challenges such as
language proficiency gaps among Foreign Service officers in
regions vital to U.S. interests, the reassignment of diplomats
from lower- to higher-priority missions, and experience gaps at
hardship posts.
Witnesses discussed ongoing language gaps within the
Foreign Service, obstacles to improving language proficiency,
the impact of having junior FSOs filling more senior roles,
plans to increase the number of FSOs, and the need for a
strategic plan to address State Department language proficiency
shortfalls.
The witnesses were: Ambassador Nancy J. Powell, Director
General of the Foreign Service and Director of Human Resources,
U.S. Department of State; Jess T. Ford, Director, International
Affairs and Trade, U.S. Government Accountability Office;
Ambassador Ronald E. Neumann (Ret.), President, American
Academy of Diplomacy; and Susan R. Johnson, President, American
Foreign Service Association.
The Diplomat's Shield: Diplomatic Security in Today's Word, December 9,
2009
At the request of the Subcommittee, the U.S. Government
Accountability Office reviewed the U.S. Department of State's
Bureau of Diplomatic Security. This hearing examined GAO's
findings and recommendations, and built upon relevant findings
from the September 2009 Subcommittee hearing on diplomatic
readiness and the September 2008 Subcommittee hearing on U.S.
public diplomacy efforts.
The State Department's Bureau of Diplomatic Security is
responsible for the protection of people, property, and
information at more than 285 State Department missions overseas
and 122 domestic facilities. Since the attacks on the U.S.
Embassies in Kenya and Tanzania in 1998 and the September 11,
2001, terrorist attacks on the United States, Diplomatic
Security's mission, resources, and personnel have grown
significantly.
The hearing focused on DS's preparation for an increased
diplomatic presence in Afghanistan, language proficiency
shortfalls among Regional Security Officers, experience gaps at
key domestic and international posts, the balance of security
and diplomacy, and recommendations to improve the security of
diplomats in the field.
The witnesses were: Ambassador Eric J. Boswell, Assistant
Secretary of State for Diplomatic Security, U.S. Department of
State; Jess T. Ford, Director, International Affairs and Trade,
U.S. Government Accountability Office; Ambassador Ronald E.
Neumann (Ret.), President, American Academy of Diplomacy; and
Susan R. Johnson, President, American Foreign Service
Association.
One DHS, One Mission: Efforts to Improve Management Integration at the
Department of Homeland Security, December 15, 2009
The hearing reviewed the status of the U.S. Department of
Homeland Security's efforts to integrate and effectively manage
the Department given the significant challenges remaining from
the merger of 22 former agencies and offices into one
organization with critical missions to the safety of our
Nation. In particular, the hearing examined the results of a
U.S. Government Accountability Office report, Department of
Homeland Security: Actions Taken Toward Management Integration,
But a Comprehensive Strategy Still Needed, which was released
in conjunction with the hearing, as well as recent DHS Office
of Inspector General reports on functional management
weaknesses of the Department.
The Subcommittee found that DHS continues to face
significant management challenges despite some measurable
progress. The DHS OIG testified that all four key functional
management areas (acquisitions, information technology, grants,
and financial management) have ongoing weaknesses, with most
areas making only modest or moderate progress in all areas
measured during fiscal year 2009. These weaknesses directly
affect the Department's ability to perform its mission and are
exacerbated by the lack of management integration identified by
the GAO.
The GAO testified that, despite its recommendation in 2005
and a statutory requirement enacted in 2007, DHS has yet to
create a comprehensive strategy for management integration.
Without such a plan, DHS does not systematically prioritize and
identify trade-offs and links between initiatives, or establish
specific implementation goals and a timeline to monitor
progress of the initiatives. GAO again recommended that DHS
create a comprehensive strategic plan for management
integration, along with performance measures that can be
incorporated and communicated to all levels of management. GAO
also noted that the Under Secretary for Management may have
inadequate authority and suggested support for the Effective
Security Management Act (S. 872), which Senators Voinovich and
Akaka introduced to elevate the Under Secretary for Management
to a Deputy Secretary with a term appointment to ensure
management continuity. Under Secretary Duke highlighted the
management accomplishments of the Department, most recently
increasing its acquisition workforce and improving contracting
processes. The Under Secretary committed to creating a
strategic management integration plan. Toward that end, she
promised to identify the key elements of the plan before the
end of 2009, and to meet with GAO in February 2010 to gather
input, discuss progress, and report on the status of
implementing GAO's recommendations.
The witnesses were: Hon. Elaine C. Duke, Under Secretary
for Management, U.S. Department of Homeland Security; Anne L.
Richards, Assistant Inspector General for Audits, U.S.
Department of Homeland Security; Bernice Steinhardt, Director
for Strategic Issues, U.S. Government Accountability Office.
Assessing Foster Care and Family Services in the District of Columbia:
Challenges and Solutions, March 16, 2010
This hearing assessed the status of ongoing initiatives to
reform the child welfare system in the District of Columbia and
examined proposals to improve foster care and adoption
practices in the District. Senator Landrieu, Co-Chair of the
Senate Caucus on Foster Youth, joined the Subcommittee for the
hearing. In addition to dealing with challenges facing the
child welfare system, youth witnesses highlighted the
importance and urgency of this issue by sharing their personal
experiences as foster youth within the system.
Panel 1 Witnesses: Roque R. Gerald, Psy.D., Director,
District of Columbia Child and Family Services Agency; Chief
Judge Lee F. Satterfield, Superior Court of the District of
Columbia; Judith W. Meltzer, Deputy Director, Center for the
Study of Social Policy.
Panel 2 Witnesses: Judith Sandalow, Executive Director,
Children's Law Center; Sarah M. Ocran, Vice President, Foster
Care Campaign, Young Women's Project; and Dominique Jacqueline
Davis, Former District of Columbia Foster Youth.
Deployed Federal Civilians: Advancing Security and Opportunity in
Afghanistan, April 14, 2010
Federal civilian employees carry out critical functions
internationally that support combat operations and
stabilization efforts and aid in reconstruction efforts. Just
as military personnel readiness is crucial in meeting mission
requirements, it is important to support the readiness of these
civilians.
This hearing reviewed key agencies' efforts to strengthen
their support for Federal civilians serving in conflict zones,
with a particular focus on current and future initiatives
related primarily to the deployment of civilians to
Afghanistan. Areas that need focused attention include their
pre-deployment training, in theater support and assignments,
and medical care and compensation provided for service while in
harm's way.
Witnesses: Hon. John Berry, Director, U.S. Office of
Personnel Management; Ambassador Patrick F. Kennedy, Under
Secretary for Management, U.S. Department of State; Hon.
Clifford L. Stanley, Under Secretary for Personnel and
Readiness, U.S. Department of Defense; and Janet St. Laurent,
Managing Director, Defense Capabilities and Management, U.S.
Government Accountability Office.
After the Dust Settles: Examining Challenges and Lessons Learned in
Transitioning the Federal Government, April 22, 2010
The 2008-2009 presidential transition took place as the
Federal Government faced unprecedented economic challenges,
national security threats, and major management challenges. In
September 2008, the Subcommittee held two hearings in examining
these challenges to ensure that the Administration was
prepared.
The first panel of this hearing provided the Subcommittee
with the General Services Administration's views on the
transition, due to its role of facilitating logistics and
administrative support during the transition. GSA testified
that it facilitates a ``hit the ground running'' mentality in
which the incoming Administration is able to effectively take
on their governing responsibilities.
The second panel provided additional insight into the
workings of the transition by providing the views of key
leaders for the incoming transition team and the outgoing
Administration. The hearing also discussed the Pre-Election
Presidential Transition Act of 2010 (S. 3196), which encouraged
advanced transition planning and provided additional resources
for incoming and outgoing Administrations.
Panel 1 Witness: Gail T. Lovelace, Chief Human Capital
Officer, U.S. General Services Administration.
Panel 2 Witnesses: Hon. Clay Johnson, III, Former Deputy
Director for Management, U.S. Office of Management and Budget
(2003-2009); Hon. John D. Podesta, President and Chief
Executive Officer, Center for American Progress Action Fund;
and Max Stier, President and Chief Executive Officer,
Partnership for Public Service.
Developing Federal Employees and Supervisors: Mentoring, Internships,
and Training in the Federal Government, April 29, 2010
The Federal Government is expected to face one of the
largest retirement waves in the Nation's history within the
next 5 years, during which more than half of the Federal
employees will be eligible to retire. These expected
retirements increase the importance of providing Federal
employees and supervisors the training they need to effectively
and efficiently carry out government programs.
This hearing addressed the Federal Government's efforts to
train and develop Federal employees and supervisors, including
efforts to recruit and mentor recent college graduates.
Panel 1 Witnesses: Nancy H. Kichak, Associate Director and
Chief Human Capital Officer, U.S. Office of Personnel
Management; and Marilee Fitzgerald, Director, Workforce Issues
and International Programs, U.S. Department of Defense.
Panel 2 Witnesses: Colleen M. Kelley, National President,
National Treasury Employees Union; J. David Cox, Sr., National
Secretary-Treasurer, American Federation of Government
Employees, AFL-CIO, (AFGE); John Palguta, Vice President for
Policy, Partnership for Public Service; and Laura K. Mattimore,
Ph.D., Director of Leadership Development, Proctor & Gamble.
Work-life Programs: Attracting, Retaining and Empowering the Federal
Workforce, May 4, 2010
This hearing coincided with Public Service Recognition
Week, and built upon the year's theme of ``Innovation and
Opportunity,'' by examining how the Federal Government can use
best-practice work-life programs to improve Federal employee
engagement and satisfaction. The hearing focused on programs
that may improve work-life balance, including alternative work
schedules, telework, the Office of Personnel Management's
Results Only Work Environment programs, paid parental leave,
and workplace wellness programs.
Witnesses discussed current Federal work-life programs and
their importance for retaining current employees, attracting
high-performing new employees, and increasing the health and
productivity of our Federal workforce. Testimony also included
a discussion of industry and government best practices, the
economic benefits of work-life flexibility arrangements, and
barriers to wider use of these programs at Federal agencies.
Panel 1 Witnesses: Cecilia E. Rouse, Member, Council of
Economic Advisers; and Jonathan Foley, Senior Advisor to the
Director, U.S. Office of Personnel Management.
Panel 2 Witnesses: Kathleen M. Lingle, Executive Director,
Alliance for Work-Life Progress at WorldatWork; Max Stier,
President and CEO, Partnership for Public Service; Colleen M.
Kelley, National President, National Treasury Employees Union;
and Jonathan P. Flynn, Vice President, American Federation of
Government Employees, AFL-CIO.
Balancing Act: Efforts to Right-Size the Federal Employee-to-Contractor
Mix, May 20, 2010
Although the Federal Government has long relied on the
private sector for needed commercial services, in recent years
it has been widely criticized for contracting out services that
may be inherently governmental functions. Efforts are underway
to have Federal agencies re-balance their Federal employee-to-
contractor workforce. To assist in this process, the
Administration began reexamining the definition of an
``inherently governmental function'' and what jobs or functions
should be insourced.
Witnesses testified that some agencies had contracted out
functions that should be performed by Federal employees, and
that the line between work that may be contracted out and work
that must be performed by Federal employees had been blurred.
The Administration was in the process of clarifying the rules,
evaluating contracted positions, and remedying imbalances.
Panel 1 Witnesses: Hon. Daniel I. Gordon, Administrator,
Office of Federal Procurement Policy, Office of Management and
Budget; Jeffrey R. Neal, Chief Human Capital Officer, U.S.
Department of Homeland Security; Charles D. Grimes, III, Deputy
Associate Director, Employee Services, U.S. Office of Personnel
Management; and John K. Needham, Director, Acquisition and
Sourcing Management, U.S. Government Accountability Office.
Panel 2 Witnesses: Maureen Gilman, Legislative Director,
National Treasury Employees Union; Alan Chvotkin, Executive
Vice President and Counsel, Professional Services Council; and
Mark Whetstone, President, National Citizenship and Immigration
Services Council, American Federation of Government Employees,
AFL-CIO.
The National Security Personnel System and Performance Management in
the Federal Government, June 9, 2010
The National Defense Authorization Act for Fiscal Year 2010
repealed the National Security Personnel System at the
Department of Defense. Under the law, DOD employees must be
transitioned back to a personnel system in which they were
previously enrolled, or would have been enrolled had NSPS never
existed, by no later than January 1, 2012. In addition to
repealing NSPS, the NDAA provided DOD with certain personnel
flexibilities, including the authority to create a new
performance management system at DOD in coordination with the
Office of Personnel Management. This hearing addressed the
transition of approximately 226,000 DOD employees out of NSPS
and the steps DOD plans to take in coordination with OPM
regarding its performance management system.
Panel 1 Witnesses: John H. James, Jr., Director, National
Security Personnel System Transition Office, U.S. Department of
Defense; and Charles D. Grimes, III, Deputy Associate Director
for Employee Services, U.S. Office of Personnel Management.
Panel 2 Witnesses: Gregory J. Junemann, President,
International Federation of Professional and Technical
Engineers AFL-CIO, CLC; Patricia Niehaus, National President,
Federal Managers Association; and Patricia Viers, President,
Local 1148, American Federation of Government Employees, AFL-
CIO.
The Federal Government's Role in Empowering Americans to Make Informed
Financial Decisions, July 15, 2010
This hearing reviewed the progress of the Financial
Literacy and Education Commission and examined the
effectiveness of Federal financial literacy programs. The
hearing also focused on preparations for implementation of
several investor financial literacy and investor protection
provisions that Chairman Akaka successfully sought to include
in the Dodd-Frank Wall Street Reform and Consumer Protection
Act.
Panel 1 Witnesses: Michael Barr, Assistant Secretary for
Financial Institutions, U.S. Department of the Treasury;
Christine Griffin, Deputy Director, U.S. Office of Personnel
Management; Brenda Dann-Messier, Assistant Secretary, Office of
Vocational and Adult Education, U.S. Department of Education;
Marianna LaCanfora, Assistant Deputy Commissioner, Retirement
and Disability Policy, Social Security Administration; and
Sandra L. Thompson, Director, Division of Supervision and
Consumer Protection, Federal Deposit Insurance Corporation.
Panel 2 Witnesses: Barbara Roper, Director of Investor
Protection, Consumer Federation of America; and Lynne Egan,
Deputy Securities Commissioner, Montana Office of State
Auditor, on behalf of the North American Securities
Administrators Association.
High-Risk Logistics Planning: Progress on Improving Department of
Defense Supply Chain Management, July 27, 2010
This was the fourth hearing the Subcommittee has held on
Department of Defense supply chain management, which has been
listed on the Government Accountability Office's High-Risk List
of Federal Government programs since 1990. Although DOD has
demonstrated progress at improving supply chain management, it
continues to face many challenges to effectively and
efficiently supplying our warfighters.
DOD testified that it has made substantial and measurable
improvements that have mitigated the high-risk designation, and
that DOD's Logistics Strategic Plan serves as a framework for
continued improvement. However, GAO concluded that the
Strategic Plan fell short of providing a comprehensive and
integrated strategy to address logistics problems department-
wide. According to GAO, the Strategic Plan did not identify the
scope of logistics problems or gaps in logistics capabilities,
include clear and specific performance measures to assess
progress made, or clearly define how the Strategic Plan would
be integrated into the Department's logistics decision-making
processes.
Witnesses: Alan F. Estevez, Principal Deputy Assistant
Secretary of Defense for Logistics and Materiel Readiness, U.S.
Department of Defense; and Jack E. Edwards and William Solis,
Directors, Defense Capabilities and Management, U.S. Government
Accountability Office.
Closing the Language Gap: Improving the Federal Government's Foreign
Language Capabilities, July 29, 2010
This hearing reviewed the current and future capabilities
and needs for foreign languages at Federal agencies,
particularly at the Department of Homeland Security and the
Department of Defense. The hearing also reviewed the findings
and recommendations from two U.S. Government Accountability
Office reports on DHS's current language capabilities and
access to government programs and services for limited English
proficient persons.
Changing national security threats and economic
globalization have greatly increased Federal agencies' needs
for personnel proficient in foreign languages. Since 2002, GAO
has repeatedly highlighted language proficiency shortfalls at
agencies with critical national and homeland security missions.
At the hearing, GAO reported that DHS has done little to
address its foreign language shortfalls and recommended that
DHS conduct a comprehensive assessment of its foreign language
needs and capabilities. Additionally, GAO testified that DOD
has taken significant steps to enhance its language
capabilities, but it does not have a comprehensive strategic
plan to guide its efforts.
Other witnesses provided recommendations on improving
Federal agencies' foreign language capacity, including
increased interagency coordination of foreign language efforts
and increased funding for language education programs.
Panel 1 Witnesses: David C. Maurer, Director, Homeland
Security and Justice Issues, U.S. Government Accountability
Office; Jeffrey R. Neal, Chief Human Capital Officer, U.S.
Department of Homeland Security; and Nancy Weaver, Director,
Defense Language Office, U.S. Department of Defense.
Panel 2 Witnesses: Hon. David S. Chu, Former Under
Secretary for Personnel and Readiness, U.S. Department of
Defense; Richard D. Brecht, Executive Director, Center for
Advanced Study of Language, University of Maryland; and Dr. Dan
E. Davidson, President, American Councils for International
Education ACTR/ACCESS, and Elected President of the Joint
National Council for Languages (JNCL).
Implementation, Improvement, and Sustainability: Management Matters at
the Department of Homeland Security, September 30, 2010
This hearing examined the continued efforts to implement
and transform the Department of Homeland Security, which has
been on the Government Accountability Office's High-Risk List
since 2003.
Witnesses discussed efforts to improve integration and
management at DHS, including the results of the Quadrennial
Homeland Security Review, which examines long-term strategy and
priorities for homeland security and guidance for DHS
capabilities, programs, and policies. DHS also discussed the
Bottom-up Review, undertaken by the Deputy Secretary, which
outlined priorities for DHS going forward.
The Subcommittee found that DHS has made progress, but more
must be done to strengthen and integrate DHS acquisition
management, information technology management, and strategic
human capital management.
Panel 1 Witnesses: Hon. Jane Holl Lute, Ph.D., Deputy
Secretary, U.S. Department of Homeland Security.
Panel 2 Witness: Cathleen A. Berrick, Managing Director,
Homeland Security and Justice Team, U.S. Government
Accountability Office.
Improving Social Security: Disability Insurance Claim Processing in
Ohio, November 15, 2010
The field hearing was held in Akron, Ohio, and explored
challenges posed in the processing of Social Security
Disability Insurance claims, focusing on initiatives in the
Ohio Office of Disability Adjudication and Review to improve
processing of both initial disability claims and appeals
claims. The hearing also focused on workforce and
administrative challenges within the Social Security
Administration, ways to continue to improve SSDI claims
processing, and challenges that could jeopardize the progress
that has been made.
Panel 1 Witnesses: Hon. Michael J. Astrue, Commissioner,
Social Security Administration; and Hon. Patrick P. O'Carroll,
Jr., Inspector General, Social Security Administration.
Panel 2 Witnesses: Richard Warsinskey, Manager, Cleveland
Downtown District Office Manager and Past President, National
Council of Social Security Management Associations; and D.
Randall Frye, President, Association of Administrative Law
Judges.
Security Clearance Reform: Setting a Course for Sustainability,
November 16, 2010
This was the seventh in a series of Subcommittee hearings
on the Federal Government's security clearance process.
Comprehensive reform efforts over the past several years
have led to considerable progress in improving the security
clearance process. Witnesses discussed efforts over the past
year to improve clearance timeliness and quality,
institutionalize government-wide clearance oversight, sustain
progress, and further improve the clearance process in the
future. At the request of the Chairman and Senator Collins
earlier in 2010, agencies involved in the security clearance
process had worked to develop metrics to measure various
aspects of the clearance process, including investigation
quality. The Government Accountability Office's witness
testified that steady progress had been made in improving the
process, bringing it closer to removal from GAO's High-Risk
List.
Despite the progress, the Chairman noted slow progress in
modernizing infrastructure related to the clearance process,
which could provide even greater efficiencies.
Witnesses: Hon. Jeffrey D. Zients, Deputy Director for
Management and Chief Performance Officer, U.S. Office of
Management and Budget; Hon. James R. Clapper, Director of
National Intelligence, Office of the Director of National
Intelligence; Hon. John Berry, Director, U.S. Office of
Personnel Management; Hon. Elizabeth A. McGrath, Deputy Chief
Management Officer, U.S. Department of Defense; Brenda A.
Farrell, Managing Director, Defense Capabilities and
Management, U.S. Government Accountability Office.
II. LEGISLATION
The following bills were considered by the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia during the 111th Congress:
measures enacted into law
P.L. 111-283, S. 3196--The Pre-Election Presidential
Transition Act of 2010 amends the Presidential Transition Act
of 1963 to direct the Administrator of the General Services
Administration to provide certain presidential transition
services and facilities, including office space, equipment, and
payment of certain related expenses, to eligible presidential
and vice-presidential candidates before a presidential general
election. It also directs the President, or the President's
delegate, to take necessary and appropriate actions to plan and
coordinate activities by the Executive Branch of the Federal
Government to facilitate an efficient transfer of power to a
successor President. Introduced by Senator Kaufman on April 13,
2010, and referred to the Committee on Homeland Security and
Governmental Affairs. Passed the Senate by Unanimous Consent on
September 24, 2010. Passed the House by voice vote on September
30, 2010. Became Public Law No. 111-283 on October 15, 2010.
P.L. 111-328, H.R. 2092--The Kingman Heritage Islands Act
of 2009 amends the National Children's Island Act of 1995 to
allow the District of Columbia to use the lands conveyed
(Kingman and Heritage Islands) and the related easements
granted under such Act in accordance with a specified Anacostia
Waterfront Framework Plan and a Comprehensive Plan. (Thus
expands allowable uses for them by the District.) The bill also
revises the terms of the reversionary interest of the United
States in such properties and easements. Repeals the conditions
for reversion with respect to: (1) failure to commence
improvements in or operation of the recreational park; or (2)
abandonment or nonuse of the park after completion of
construction and commencement of operation. States that title
in the Islands and the related easements shall revert back to
the United States 60 days after the Secretary of Interior
notifies the District in writing that a portion of the District
is not using them for the recreational, environmental, or
educational purposes of the National Children's Island, in
accordance with the Anacostia Waterfront Framework Plan or the
Comprehensive Plan.
H.R. 2092 was introduced on April 23, 2009 by Delegate
Norton. Passed House on October 7, 2009 and referred to the
Committee on Homeland Security and Governmental Affairs.
Reported favorably with an Akaka amendment in the nature of a
substitute on September 22, 2010, and passed the Senate on
September 27, 2010. Modified version of the bill, H.R. 6278,
with the same title, introduced on September 29, 2010, by
Delegate Norton, passed the House on November 16, 2010, and
passed the Senate on December 13, 2010. Became Public Law 111-
328 on December 22, 2010.
P.L. 111-292, H.R. 1722, S. 707--The Telework Enhancement
Act of 2010 requires each executive agency to establish a
telework policy, determine and notify eligible employees,
provide an interactive telework training program for eligible
employees and their managers, and ensure that teleworkers and
nonteleworkers are treated the same for purposes of performance
appraisals, training, retention, work requirements, or other
acts involving managerial discretion. Such policies are
required to: (1) ensure that telework does not diminish
employee performance or agency operations; (2) require a
written agreement between the agency manager and the employee;
(3) exclude employees whose performance does not comply with
the terms of such agreement or whose official duties require
daily direct handling of secure materials or on-site activity
that cannot be handled remotely or at an alternate worksite,
except in emergency situations; and (4) be incorporated as part
of the agency's continuity of operations plans. Introduced on
March 25, 2009, and referred to the Committee on Homeland
Security and Governmental Affairs. Committee on Homeland
Security and Governmental Affairs ordered to be reported with
an amendment on May 20, 2009. Passed Senate by Unanimous
Consent on May 24, 2010. S. AMDT. 4689 to House companion bill,
H.R. 1722, agreed to in House, which became Public Law No. 111-
292 on December 9, 2010.
P.L. 111-84, S. 469--S. 469 amends chapter 83 of title 5,
United States Code, and requires part-time service performed by
a Federal employee before April 7, 1986, to be credited as
full-time service for purposes of annuity computation under the
Civil Service Retirement System (currently, the annuity benefit
for such part-time service is prorated). Introduced by Senator
Voinovich on February 25, 2009, and referred to the Committee
on Homeland Security and Governmental Affairs. Ordered to be
reported without amendment on May 20, 2009, and included in
H.R. 2647, National Defense Authorization Act for Fiscal Year
2010, conference report, which became Public Law No. 111-84 on
October 28, 2009.
P.L. 111-84, S. 507--The Non-Foreign Area Retirement Equity
Assurance Act of 2009 revises Federal employee locality-based
comparability payments provisions to include U.S. territories
and possessions, including the Commonwealth of Puerto Rico and
the Commonwealth of the Northern Mariana Islands, within a pay
locality. This bill sets forth freezes Cost of Living
Allowances for pay of employees stationed outside the
continental United States or in Alaska as of December 31, 2009
and provides a formula for reducing such rates as locality-
based comparability payments are increased. Locality-based
comparability payments are phased in using a transition
schedule for calendar years 2010-2012. The Non-Foreign AREA Act
of 2009 also requires adjustment of special rates of pay
determined to be necessary to obtain or retain the services of
persons specified by statute in such a cost-of-living area in
accordance with regulations to be prescribed by the Director of
the Office of Personnel Management under this Act. The bill
further allows a temporarily raised limitation on the amount of
special rates during the transition period of January 1, 2010,
to January 1, 2012. Introduced by Senator Akaka on March 2,
2009, referred to the Committee on Homeland Security and
Governmental Affairs, and ordered to be reported with a
clarifying amendment on April 1, 2009. Included in conference
report for H.R. 2647, National Defense Authorization Act for
Fiscal Year 2010, which became Public Law No. 111-84 on October
28, 2009.
P.L. 111-84, S. 674--The Federal Supervisor Training Act of
2010 revises provisions relating to specific training programs
for Federal agency supervisors. The bill requires the head of
each Federal agency to establish: (1) a program to provide
training to supervisors on developing and discussing relevant
goals and objectives with the employee, communicating and
discussing progress on performance goals and objectives and
conducting performance appraisals, mentoring and motivating
employees and improving employee performance and productivity,
fostering a work environment characterized by fairness,
respect, equal opportunity, and attention paid to the merit of
the work of employees, effectively managing employees with
unacceptable performance, and addressing reports of a hostile
work environment, reprisal, or harassment; (2) a program to
provide training to supervisors on prohibited personnel
practices, employee collective bargaining and union
participation rights, and processes to enforce employee rights;
and (3) a program under which experienced supervisors mentor
new supervisors. S. 674 also requires supervisors to complete
such programs every 3 years. The legislation further requires
the Director of the Office of Personnel Management to issue
guidance to Federal agencies on competencies supervisors are
expected to meet in order to effectively manage, and be
accountable for managing, the performance of employees. Lastly,
each agency is required to: (1) develop competencies to assess
the performance of each supervisor; (2) assess the overall
capacity of the supervisors in the agency to meet such
guidance; (3) develop and implement a supervisor training
program to strengthen issues identified during such assessment;
and (4) measure the effectiveness of that program in improving
supervisor competence. Introduced on March 24, 2009, and
referred to the Committee on Homeland Security and Governmental
Affairs. Ordered to be reported favorably on June 24, 2010.
Some provisions of S. 674 were included in conference report
for H.R. 2647, National Defense Authorization Act for Fiscal
Year 2010, which became Public Law No. 111-84 on October 28,
2009.
measures favorably reported by the subcommittee and passed by the
senate
S. 372--The Whistleblower Protection Enhancement Act of
2010 amends Federal personnel law relating to whistleblower
protections to provide that such protections shall apply to a
disclosure of any violation of law, except for an alleged
violation that is a minor, inadvertent violation that occurs
during the conscientious carrying out of official duties. S.
372 provides that a disclosure shall not be excluded from
whistleblower protections because: (1) the disclosure was made
during the normal course of the employee's duties; (2) the
disclosure was made to a person, including a supervisor, who
participated in the activity; (3) the disclosure revealed
information that had been previously disclosed; (4) of the
employee or applicant's motive for making the disclosure; (5)
the disclosure was not made in writing; (6) the disclosure was
made while the employee was off duty; or (7) of the amount of
time which has passed since the occurrence of the events
described in the disclosure. Introduced on February 2, 2009,
referred to the Committee on Homeland Security and Governmental
Affairs, and ordered to be reported with an amendment in the
nature of a substitute on July 29, 2009. Passed Senate with an
Akaka amendment by unanimous consent on December 10, 2010.
Passed the House with amendments by unanimous consent on
December 22, 2010, but differences were not resolved before the
Congress adjourned.
S. 736--The Federal Hiring Process Improvement Act of 2010
requires the head of each executive agency (excluding the
Government Accountability Office) to develop a strategic
workforce plan as part of the agency performance plan, to
include: (1) hiring projections; (2) strategic human capital
planning to address critical skills deficiencies; (3)
recruitment strategies to attract highly qualified candidates
from diverse backgrounds; (4) streamlining the hiring process;
and (5) a specific analysis of the contractor workforce, the
need to adjust the balance between work being performed by the
Federal workforce and the contractor workforce, and the
capacity of the agency to manage employees who are not Federal
employees and are doing the work of the government. Further,
each agency's strategic workforce plan is required to be
submitted to the Office of Personnel Management; and (2) OPM is
required to develop a government-wide strategic workforce plan
based on such agency plans, update it annually, and make it
available to the President, Congress, and the public.
Introduced on March 30, 2009, and referred to the Committee on
Homeland Security and Governmental Affairs. Ordered to be
reported with an amendment in the nature of a substitute on
July 29, 2009. Passed Senate with an amendment by Unanimous
Consent on May 18, 2010. Some provisions of S. 736 required
under Presidential Memorandum, ``Improving the Federal
Recruitment and Hiring Process, issued on May 11, 2010.''
S. 806--The Federal Executive Board Authorization Act of
2009 statutorily authorizes Federal Executive Boards, which are
defined as interagency entities established in a geographic
area with a high concentration of Federal employees outside the
Washington, D.C. metropolitan area, to strengthen the
management and Administration of agency activities and
coordination among local Federal officers to implement national
initiatives in that area. S. 806 requires each FEB to consist
of a senior officer for each agency in that area. Each FEB is
required to: (1) serve as an instrument of outreach for the
national headquarters of agencies relating to agency activities
in the geographic area; (2) provide a forum for the exchange of
information relating to programs and management methods and
problems between the national headquarters of agencies and the
field; (3) develop local coordinated approaches to the
development and operation of programs that have common
characteristics; (4) communicate management initiatives and
other concerns from Federal officers and employees in the
Washington, D.C. area to Federal officers and employees in the
geographic area to achieve better mutual understanding and
support; (5) develop relationships with State and local
governments and nongovernmental organizations to help fulfill
the roles and responsibilities of that FEB; and (6) facilitate
communication, collaboration, and training to prepare the
Federal workforce for emergencies and continuity of operations.
Further, the bill requires the Office of Personnel Management
to: (1) establish a fund within OPM for financing essential FEB
functions, into which contributions from the headquarters of
each participating agency shall be deposited; (2) submit annual
reports to Congress and agencies on FEB program outcomes and
budget matters; and (3) report to specified congressional
committees on essential FEB functions, staffing requirements,
and staffing and operating expenses. Introduced by Senator
Voinovich on April 2, 2009. Passed the Senate with an amendment
by Unanimous Consent on November 5, 2009. Received in the House
and referred to the House Committee on Oversight and Government
Reform on November 16, 2009. Ordered to be reported favorably
on April 14, 2010.
measures referred to the subcommittee on which hearings were held or
other legislative action was taken
H.R. 1345--The District of Columbia Hatch Act Reform Act of
2010 amends the Federal law commonly referred to as the ``Hatch
Act'' (concerning political activities of Federal, State, and
local employees) to: (1) include the District of Columbia or an
agency or department thereof within the definition of a ``State
or local agency'' under such Act; (2) ensure that individuals
employed by an educational or research institution,
establishment, agency, or system supported in whole or in part
by the District are exempt from Hatch Act restrictions; (3)
exempt the duly elected head of an executive department of the
District who is not classified under the District's merit or
civil-service system from the prohibition against being a
candidate for elective office; and (4) direct the Merit Systems
Protection Board to issue an order to withhold Federal funds
upon finding that a District employee ordered removed for
violating the Hatch Act has been reappointed in the District
within 18 months. Passed House on September 8, 2009 and
referred to the Homeland Security and Governmental Affairs
Committee. Reported favorably with an Akaka amendment in the
nature of a substitute on May 17, 2010.
S. 599--The Federal Firefighters Fairness Act of 2009
amends chapter 81 of title 5, United States Code, to create a
presumption that a disability or death of a Federal employee in
fire protection activities caused by any certain diseases is
the result of the performance of such employee's duty. On March
25, 2009, S. 599 was referred to the Committee on Homeland
Security and Governmental Affairs, Subcommittee on Oversight of
Government Management, the Federal Workforce, and the District
of Columbia. Reported favorably with a Coburn amendment on May
20, 2009.
measures which did not advance beyond referral to subcommittee
H.R. 626--The Federal Employees Paid Parental Leave Act of
2009 allows Federal employees to substitute any available paid
leave for any leave without pay available for the birth of a
child or placement of a child with the employee for either
adoption or foster care. It further provides that four of the
12 weeks of parental leave made available to a Federal employee
shall be paid leave. H.R. 626 also authorized the Director of
the Office of Personnel Management to promulgate regulations to
increase the amount of paid parental leave available to such an
employee to a total of eight administrative workweeks, based on
the consideration of: (1) the benefits to the Federal
Government, including enhanced recruitment and employee
retention; (2) the cost to the government; (3) trends in the
private sector and in State and local governments; (4) the
Federal Government's role as a model employer; and (5) the
impact of increased paid parental leave on lower-income and
economically disadvantaged employees and their children. The
bill also amends the Congressional Accountability Act of 1995
and the Family and Medical Leave Act of 1993 to allow the same
substitution for covered congressional employees, Government
Accountability Office employees, and Library of Congress
employees. Counts certain service by an employee of the
Executive Branch, Congress, GAO, or the Library of Congress
while on active duty as a member of the National Guard or
Reserves as service for that branch or agency for purposes of
determining such employee's eligibility to take or substitute
leave as provided under this Act. Introduced by Representative
Maloney on January 22, 2009, and passed the House of
Representatives on June 4, 2009. On October 19, 2009, the bill
was referred to the Committee on Homeland Security and
Governmental Affairs, Subcommittee on Oversight of Government
Management, the Federal Workforce, and the District of
Columbia.
H.R. 3913--H.R. 3913 amends the District of Columbia Code
to direct the Mayor of the District of Columbia, in
coordination with the commanding general of the District of
Columbia National Guard, to establish a program that allows the
Mayor to provide educational assistance to members of the
District of Columbia National Guard who have satisfactorily
completed their initial active duty service and agree to serve
for at least 6 years. Introduced by Representative Norton on
October 22, 2009, and passed the House of Representatives on
June 28, 2010. On July 26, 2010, H.R. 3913 was referred to the
Committee on Homeland Security and Governmental Affairs,
Subcommittee on Oversight of Government Management, the Federal
Workforce, and the District of Columbia.
S. 50--The Clinical Social Workers' Recognition Act of 2009
amends Federal law concerning Federal workers' compensation to
authorize the use of clinical social workers to conduct
evaluations to determine work-related emotional and mental
illnesses. On March 20, 2009, S. 50 was referred to the
Committee on Homeland Security and Governmental Affairs,
Subcommittee on Oversight of Government Management, the Federal
Workforce, and the District of Columbia.
S. 354--The Federal Employees Paid Parental Leave Act of
2009 allows Federal employees to substitute any available paid
leave for any leave without pay available for either the: (1)
birth of a child; or (2) placement of a child with the employee
for either adoption or foster care. Makes available (subject to
specified requirements) for any of the 12 weeks of leave an
employee is entitled to for such purposes: (1) four eight
administrative weeks of paid parental leave in connection with
the birth or placement involved; and (2) any accumulated annual
or sick leave. Furthermore, the bill authorizes the Director of
the Office of Personnel Management to promulgate regulations to
increase the amount of paid parental leave available to such an
employee to a total of eight administrative workweeks, based on
the consideration of: (1) the benefits to the Federal
Government, including enhanced recruitment and employee
retention; (2) the cost to the government; (3) trends in the
private sector and in State and local governments; and (4) the
Federal Government's role as a model employer. S. 354 amends
the Congressional Accountability Act of 1995 and the Family and
Medical Leave Act of 1993 to allow the same substitution for
covered congressional employees, Government Accountability
Office employees, and Library of Congress employees. On March
20, 2009, S. 354 was referred to the Committee on Homeland
Security and Governmental Affairs, Subcommittee on Oversight of
Government Management, the Federal Workforce, and the District
of Columbia.
S. 763--The Mortgage and Rental Disaster Relief Act of 2009
amends the Robert T. Stafford Disaster Relief and Emergency
Assistance Act to authorize the President to provide temporary
assistance in the form of mortgage or rental payments to or on
behalf of individuals and households who, as a result of
financial hardship caused by a major disaster, have received
written notice of dispossession or eviction from a residence
because of a foreclosure of mortgage or lien, cancellation of
sales contract, or lease termination, entered into before such
disaster. S. 763 was referred to the Committee on Homeland
Security and Governmental Affairs, Subcommittee on Oversight of
Government Management, the Federal Workforce, and the District
of Columbia on April 23, 2009.
S. 1180--The Senior Executive Service Diversity Assurance
Act of 2009 requires the Director of the Office of Personnel
Management to establish within OPM the Senior Executive Service
Resource Office. The legislation makes it the mission of the
SES Resource Office to: (1) improve the efficiency,
effectiveness, and productivity of the Senior Executive Service
through policy formulation and oversight; (2) advance the
professionalism of the SES; and (3) recruit qualified
individuals from appropriate sources to ensure that the SES is
reflective of the nation's diversity. The bill also sets forth
the functions of the SES Resource Office with respect to the
management, training, oversight, and recruitment activities of
the SES. S. 1180 further revises the career appointments
recruiting process to require agency heads to ensure diversity
of executive resources boards and any subgroup or other
evaluation panel related to the merit staffing process for
career appointees by including members of racial and ethnic
minority groups, women, and individuals with disabilities.
Lastly, the legislation requires each Federal agency to submit
to OPM a plan to enhance and maximize opportunities for the
advancement and appointment of minorities, women, and
individuals with disabilities to the SES. The bill was referred
to the Committee on Homeland Security and Governmental Affairs,
Subcommittee on Oversight of Government Management, the Federal
Workforce, and the District of Columbia on July 16, 2009.
S. 1228--S. 1228 modifies the rate of accrual of annual
leave for administrative law judges, contract appeals board
members, and immigration judges to accrue at the same rate as
Senior Executive Service employees. S. 1228 was referred to the
Committee on Homeland Security and Governmental Affairs,
Subcommittee on Oversight of Government Management, the Federal
Workforce, and the District of Columbia on July 16, 2009.
S. 3341--The FEHBP Dependent Coverage Extension Act extends
eligibility for coverage under the Federal Employees Health
Benefits Program to a Federal employee's, annuitant's, or
former spouse's dependent child who is under age 26, or
incapable of self-support because of mental or physical
disability which existed before age 26. The bill was referred
to the Committee on Homeland Security and Governmental Affairs,
Subcommittee on Oversight of Government Management, the Federal
Workforce, and the District of Columbia on June 30, 2010.
S. 3365--S. 3365 is a bill to amend section 5542 of title
5, United States Code, to provide that any hours worked by
Federal firefighters under a qualified trade-of-time
arrangement shall be excluded for purposes of determinations
relating to overtime pay. The bill was referred to the
Subcommittee on Oversight of Government Management, the Federal
Workforce, and the District of Columbia, Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia on June 30, 2010.
III. GAO Reports
The following reports were issued by the Government
Accountability Office at the request of the Chairman, and
Senator Akaka, the Ranking Member of the Subcommittee on
Oversight of Government Management, the Federal Workforce, and
the District of Columbia during the 111th Congress:
Defense Logistics: Lack of Key Information May Impede DOD's
Ability to Improve Supply Chain Management, GAO-09-150, January
12, 2009.
Veterinarian Workforce: Actions are Needed to Ensure
Sufficient Capacity for Protecting Public and Animal Health,
GAO-09-178, February 4, 2009.
Nuclear Nonproliferation: Strengthened Oversight Needed to
Address Proliferation and Management Challenges in IAEA's
Technical Cooperation Program, GAO-09-275, March 5, 2009.
Department of Defense: Additional Actions and Data Are
Needed to Effectively Manage and Oversee DOD's Acquisition
Workforce, GAO-09-342, March 25, 2009.
Foreign Aid Reform: Comprehensive Strategy, Interagency
Coordination, and Operational Improvements Would Bolster
Current Efforts, GAO-09-192, April 17, 2009.
DOD Personnel Clearances: Comprehensive Timeliness
Reporting, Complete Clearance Documentation, and Quality
Measures are needed to Further Improve the Clearance Process,
GAO-09-400, May 19, 2009.
Influenza Pandemic: Increased Agency Accountability Could
Help Protect Federal Employees Serving the Public in the Event
of a Pandemic, GAO-09-404, June 12, 2009.
District of Columbia Public Schools: Important Steps Taken
to Continue Reform Efforts, But Enhanced Planning Could Improve
Implementation and Sustainability, GAO-09-619, June 26, 2009.
Department of State: Key Transformation Practices Could
Have Helped in Restructuring Arms Control and Nonproliferation
Bureaus, GAO-09-738, July 15, 2009.
Homeland Security: Federal Protective Service Should
Improve Human Capital Planning and Better Communicate with
Tenants, GAO-09-749, July 30, 2009.
Contingency Contract Management: DOD Needs to Develop and
Finalize Background Screening and Other Standard for Private
Contractors, GAO-09-351, July 31, 2009.
Equal Employment Opportunity: Pilot Projects Could Help
Test Solutions to Long Standing Concern with EEO Complain
Process, GAO-09-712, August 12, 2009.
Emergency Communications: National Communications System
Provides Programs for Priority Calling, but Planning for New
Initiatives and Performance Measurement Could be Strengthened,
GAO-09-822, August 28, 2009.
Department of State: Additional Steps Needed to Address
Continuing Staffing and Experience Gaps at Hardship Posts, GAO-
09-874, September 17, 2009.
Department of State: Comprehensive Plan Needed to Address
Persistent Foreign Language Shortfalls, GAO-09-955, September
17, 2009.
Department of State: Diplomatic Security's Recent Growth
Warrants Strategic Review, GAO-10-156, November 12, 2009.
Department of Homeland Security: Actions Taken Toward
Management Integration, but a Comprehensive Strategy Is Still
Needed, GAO-10-131, November 20, 2009.
Defense Acquisitions: Further Actions Needed to Address
Weaknesses in DOD's Management of Professional and Management
Support Contracts, GAO-10-39, November 20, 2009.
Homeland Security: Federal Protective Service's Contract
Guard Program Requires More Oversight and Reassessment of Use
of Contract Guards, GAO-10-341, April 13, 2010.
International Security: DOD and State need to Improve
Sustainment Planning and Monitoring and Evaluation for Section
1206 and 1207 Assistance Programs, GAO-10-431, April 15, 2010.
Language Access: Selected Agencies Can Improve Services to
Limited English Proficient Persons, GAO-10-91, April 26, 2010.
Nuclear Safety: Convention on Nuclear Safety is Viewed by
Most Member Countries as Strengthening Safety Worldwide, GAO-
10-489, April 29, 2010.
Department of Homeland Security: DHS Needs to
Comprehensively Assess Its Foreign Language Needs and
Capabilities and Identify Shortfalls, GAO-10-714, June 22,
2010.
Foreign Assistance: USAID Needs to Improve Its Strategic
Planning to Address Current and Future Workforce Needs, GAO-10-
496, June 30, 2010.
Personnel Practices: Conversion of Employees from Political
to Career Positions May 2005-2009, GAO-10-688, June 28, 2010.
Homeland Security: Addressing Weaknesses with Facility
Security Committees Would Enhance Protection of Federal
Facilities, GAO-10-901, August 5, 2010.
Privacy: OPM Should Better Monitor Implementation of
Privacy-Related Policies and Procedures for Background
Investigation, GAO-10-849, September 7, 2010.
U.S. Employment in the United Nations: State Department
Needs to Enhance Reporting Requirements and Evaluate Its
Efforts to Increase U.S. Representation, GAO-10-1028, September
30, 2010.
Managing For Results: Opportunities to Strengthen Agencies'
Customer Service Efforts, GAO-11-44, October 27, 2010.
National Security: An Overview of Professional Development
Activities Intended to Improve Interagency Collaboration, GAO-
11-108, November 15, 2010.
Federal Work/Life Programs: Agencies Generally Satisfied
with OPM Assistance, but More Tracking and Information Sharing
Needed, GAO-11-137, December 16, 2010.
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS
Chairman: Carl Levin
Ranking Minority Member: Tom Coburn
The following is the Activities Report of the Permanent
Subcommittee on Investigations during the 111th Congress:
I. HISTORICAL BACKGROUND
A. Subcommittee Jurisdiction
The Permanent Subcommittee on Investigations was originally
authorized by Senate Resolution 189 on January 28, 1948. At its
creation in 1948, the Subcommittee was part of the Committee on
Expenditures in the Executive Departments. The Subcommittee's
records and broad investigative jurisdiction over government
operations and national security issues, however, actually
antedate its creation, since it was given custody of the
jurisdiction of the former Special Committee to Investigate the
National Defense Program (the so-called ``War Investigating
Committee'' or ``Truman Committee''), chaired by Senator Harry
S. Truman during the Second World War and charged with exposing
waste, fraud, and abuse in the war effort and war profiteering.
Today, the Subcommittee is part of the Committee on Homeland
Security and Governmental Affairs.\1\
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\1\In 1952, the parent committee's name was changed to the
Committee on Government Operations. It was changed again in early 1977,
to the Committee on Governmental Affairs, and again in 2005, to the
Committee on Homeland Security and Governmental Affairs, its present
title.
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The Subcommittee has had 10 chairmen: Senators Homer
Ferguson of Michigan (1948), Clyde R. Hoey of North Carolina
(1949-1952), Joseph R. McCarthy of Wisconsin (1953-1954), John
L. McClellan of Arkansas (1955-1972), Henry M. Jackson of
Washington (1973-1978), Sam Nunn of Georgia (1979-1980 and
1987-1994), William V. Roth of Delaware (1981-1986 and 1995-
1996), Susan M. Collins of Maine (1997-2001); Norm Coleman of
Minnesota (2003-2007); and Carl Levin of Michigan (2001-2002
and 2007-present).
Until 1957, the Subcommittee's jurisdiction focused
principally on waste, inefficiency, impropriety, and illegality
in government operations. Its jurisdiction then expanded over
time, today encompassing investigations within the broad ambit
of the parent committee's responsibility for matters relating
to the efficiency and economy of operations of all branches of
the government, including matters related to: (a) waste, fraud,
abuse, malfeasance, and unethical practices in government
contracting and operations; (b) organized criminal activities
affecting interstate or international commerce; (c) criminal
activity affecting the national health, welfare, or safety,
including investment fraud, commodity and securities fraud,
computer fraud, and offshore abuses; (d) criminality or
improper practices in labor-management relations; (e) the
effectiveness of present national security methods, staffing
and procedures, and U.S. relationships with international
organizations concerned with national security; (f) energy
shortages, energy pricing, management of government-owned or
controlled energy supplies; and relationships with oil
producing and consuming countries; and (g) the operations and
management of Federal regulatory policies and programs. While
retaining the status of a subcommittee of a standing committee,
the Subcommittee has long exercised its authority on an
independent basis, selecting its own staff, issuing its own
subpoenas, and determining its own investigatory agenda.
The Subcommittee acquired its sweeping jurisdiction in
several successive stages. In 1957--based on information
developed by the Subcommittee--the Senate passed a Resolution
establishing a Select Committee on Improper Activities in the
Labor or Management Field. Chaired by Senator McClellan, who
also chaired the Subcommittee at that time, the Select
Committee was composed of eight Senators--four of whom were
drawn from the Subcommittee on Investigations and four from the
Committee on Labor and Public Welfare. The Select Committee
operated for 3 years, sharing office space, personnel, and
other facilities with the Permanent Subcommittee. Upon its
expiration in early 1960, the Select Committee's jurisdiction
and files were transferred to the Subcommittee on
Investigations, greatly enlarging the latter body's
investigative authority in the labor-management area.
The Subcommittee's jurisdiction expanded further during the
1960s and 1970s. In 1961, for example, it received authority to
make inquiries into matters pertaining to organized crime and,
in 1963, held the famous Valachi hearings examining the inner
workings of the Italian Mafia. In 1967, following a summer of
riots and other civil disturbances, the Senate approved a
Resolution directing the Subcommittee to investigate the causes
of this disorder and to recommend corrective action. In January
1973, the Subcommittee acquired its national security mandate
when it merged with the National Security Subcommittee. With
this merger, the Subcommittee's jurisdiction was broadened to
include inquiries concerning the adequacy of national security
staffing and procedures, relations with international
organizations, technology transfer issues, and related matters.
In 1974, in reaction to the gasoline shortages precipitated by
the Arab-Israeli war of October 1973, the Subcommittee acquired
jurisdiction to investigate the control and management of
energy resources and supplies as well as energy pricing issues.
In 1997, the full Committee on Governmental Affairs was
charged by the Senate to conduct a special examination into
illegal or improper activities in connection with Federal
election campaigns during the 1996 election cycle. The
Permanent Subcommittee provided substantial resources and
assistance to this investigation, contributing to a greater
public understanding of what happened, to subsequent criminal
and civil legal actions taken against wrongdoers, and to
enactment of campaign finance reforms in 2001.
In 1998, the Subcommittee marked the 50th anniversary of
the Truman Committee's conversion into a permanent subcommittee
of the U.S. Senate.\2\ Since then, the Subcommittee has
developed particular expertise in complex financial matters,
examining the key causes of the 2008 financial crisis,
structured finance abuses, financial fraud, unfair credit
practices, money laundering, commodity speculation, and a wide
range of offshore and tax haven abuses. It has also focused on
issues involving health care fraud, foreign corruption, and
waste, fraud and abuse in government programs. In the half-
century of its existence, the Subcommittee's many successes
have made clear to the Senate the importance of retaining a
standing investigatory body devoted to keeping government not
only efficient and effective, but also honest and accountable.
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\2\This anniversary also marked the first date upon which internal
Subcommittee records generally began to become available to the public.
Unlike most standing committees of the Senate whose previously
unpublished records open after a period of 20 years has elapsed, the
Permanent Subcommittee on Investigations, as an investigatory body, may
close its records for 50 years to protect personal privacy and the
integrity of the investigatory process. With this 50th anniversary, the
Subcommittee's earliest records, housed in the Center for Legislative
Archives at the National Archives and Records Administration, began to
open seriatim. The records of the predecessor committee--the Truman
Committee--were opened by Senator Nunn in 1980.
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B. Subcommittee Investigations
Armed with its broad jurisdictional mandate, the
Subcommittee has conducted investigations into a wide variety
of topics of public concern, ranging from corporate misconduct,
including the Senate's most in-depth investigation of the Enron
Corporation, to unfair energy prices, predatory lending, and
tax evasion. Over the years, the Subcommittee has also
conducted investigations into criminal wrongdoing, including
money laundering, the narcotics trade, child pornography, labor
racketeering, and organized crime activities. In addition, the
Subcommittee has investigated a wide range of allegations of
waste, fraud, and abuse in government programs and consumer
protection issues, addressing problems ranging from unfair
credit card practices to health care fraud. Most recently, the
Subcommittee conducted Congress' most in-depth examination of
the 2008 financial crisis, holding four hearings and issuing a
750-page bipartisan report.
(1) Historical Highlights
The Subcommittee's investigatory record as a permanent
Senate body began under the Chairmanship of Republican Senator
Homer Ferguson and his Chief Counsel (and future Attorney
General and Secretary of State) William P. Rogers, as the
Subcommittee inherited the Truman Committee's role in
investigating fraud and waste in U.S. Government operations.
This investigative work became particularly colorful under the
chairmanship of Senator Clyde Hoey, a North Carolina Democrat
who took the chair from Senator Ferguson after the 1948
elections. The last U.S. Senator to wear a long frock coat and
wing-tipped collar, Mr. Hoey was a distinguished Southern
gentleman of the old school. Under his leadership, the
Subcommittee won national attention for its investigation of
the so-called ``five percenters,'' notorious Washington
lobbyists who charged their clients 5 percent of the profits
from any Federal contracts they obtained on the client's
behalf. Given the Subcommittee's jurisdictional inheritance
from the Truman Committee, it is perhaps ironic that the ``five
percenters'' investigation raised allegations of bribery and
influence-peddling that reached right into the White House and
implicated members of President Truman's staff. In any event,
the fledgling Subcommittee was off to a rapid start.
What began as colorful soon became contentious. When
Republicans returned to the Majority in the Senate in 1953,
Wisconsin's junior Senator, Joseph R. McCarthy, became the
Subcommittee's Chairman. Two years earlier, as Ranking Minority
Member, Senator McCarthy had arranged for another Republican
Senator, Margaret Chase Smith of Maine, to be removed from the
Subcommittee. Senator Smith's offense, in Senator McCarthy's
eyes, was her issuance of a ``Declaration of Conscience''
repudiating those who made unfounded charges and used character
assassination against their political opponents. Although
Senator Smith had carefully declined to name any specific
offender, her remarks were universally recognized as criticism
of Senator McCarthy's accusations that communists had
infiltrated the State Department and other government agencies.
Senator McCarthy retaliated by engineering Senator Smith's
removal from the Subcommittee, replacing her with the newly-
elected Senator from California, Richard M. Nixon.
Upon becoming Subcommittee Chairman, Senator McCarthy
staged a series of highly publicized anti-communist
investigations, culminating in an inquiry into communism within
the U.S. Army, which became known as the Army-McCarthy
hearings. During the latter portion of those hearings, in which
the parent Committee examined the Wisconsin Senator's attacks
on the Army, Senator McCarthy recused himself, leaving South
Dakota Senator Karl Mundt to serve as Acting Chairman of the
Subcommittee. Gavel-to-gavel television coverage of the
hearings helped turn the tide against Senator McCarthy by
raising public concern about his treatment of witnesses and
cavalier use of evidence. In December 1954, in fact, the Senate
censured Senator McCarthy for unbecoming conduct. In the
following year, the Subcommittee adopted new rules of procedure
that better protected the rights of witnesses. The Subcommittee
also strengthened the rules ensuring the right of both parties
on the Subcommittee to appoint staff, initiate and approve
investigations, and review all information in the
Subcommittee's possession.
In 1955, Senator John McClellan of Arkansas began 18 years
of service as Chairman of the Permanent Subcommittee on
Investigations. Senator McClellan appointed a young Robert F.
Kennedy as the Subcommittee's Chief Counsel. That same year,
Members of the Subcommittee were joined by Members of the
Senate Labor and Public Welfare Committee on a special
committee to investigate labor racketeering. Chaired by Senator
McClellan and staffed by Robert Kennedy and other Subcommittee
staff members, this special committee directed much of its
attention to criminal influence over the Teamsters Union, most
famously calling Teamsters' leaders Dave Beck and Jimmy Hoffa
to testify. The televised hearings of the special committee
also introduced Senators Barry Goldwater and John F. Kennedy to
the nation, as well as leading to passage of the Landrum-
Griffin Labor Act.
After the special committee completed its work, the
Permanent Subcommittee on Investigations continued to
investigate organized crime. In 1962, the Subcommittee held
hearings during which Joseph Valachi outlined the activities of
La Cosa Nostra, or the Mafia. Former Subcommittee staffer
Robert Kennedy--who had by then become Attorney General in his
brother's Administration--used this information to prosecute
prominent mob leaders and their accomplices. The Subcommittee's
investigations also led to passage of major legislation against
organized crime, most notably the Racketeer Influenced and
Corrupt Organizations (RICO) provisions of the Crime Control
Act of 1970. Under Chairman McClellan, the Subcommittee also
investigated fraud in the purchase of military uniforms,
corruption in the Department of Agriculture's grain storage
program, securities fraud, and civil disorders and acts of
terrorism. In addition, from 1962 to 1970, the Subcommittee
conducted an extensive probe of political interference in the
awarding of government contracts for the Pentagon's ill-fated
TFX (``tactical fighter, experimental'') aircraft. In 1968, the
Subcommittee also examined charges of corruption in U.S.
servicemen's clubs in Vietnam and elsewhere around the world.
In 1973, Senator Henry ``Scoop'' Jackson, a Democrat from
Washington, replaced Senator McClellan as the Subcommittee's
Chairman. During his tenure, recalled Chief Clerk Ruth Young
Watt--who served in this position from the Subcommittee's
founding until her retirement in 1979--Ranking Minority Member
Charles Percy, an Illinois Republican, became more active on
the Subcommittee than Chairman Jackson, who was often
distracted by his Chairmanship of the Interior Committee and
his active role on the Armed Services Committee.\3\ Senator
Percy also worked closely with Georgia Democrat Sam Nunn, a
Subcommittee member who subsequently succeeded Senator Jackson
as Subcommittee Chairman in 1979. As Chairman, Senator Nunn
continued the Subcommittee's investigations into the role of
organized crime in labor-management relations and also
investigated pension fraud.
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\3\It had not been uncommon in the Subcommittee's history for the
Chairman and Ranking Minority Member to work together closely despite
partisan differences, but Senator Percy was unusually active while in
the Minority--a role that included his chairing an investigation of the
hearing aid industry.
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Regular reversals of political fortunes in the Senate
during the 1980s and 1990s saw Senator Nunn trade the
chairmanship three times with Delaware Republican William Roth.
Senator Nunn served from 1979 to 1980 and again from 1987 to
1995, while Senator Roth served from 1981 to 1986, and again
from 1995 to 1996. These 15 years saw a strengthening of the
Subcommittee's bipartisan tradition in which investigations
were initiated by either the Majority or Minority and fully
supported by the entire Subcommittee. For his part, Senator
Roth led a wide range of investigations into commodity
investment fraud, offshore banking schemes, money laundering,
and child pornography. Senator Nunn led inquiries into Federal
drug policy, the global spread of chemical and biological
weapons, abuses in Federal student aid programs, computer
security, airline safety, and health care fraud. Senator Nunn
also appointed the Subcommittee's first female counsel,
Eleanore Hill, who served as Chief Counsel to the Minority from
1982 to 1986 and then as Minority Chief Counsel from 1987 to
1995.
(2) More Recent Investigations
In January 1997, Republican Senator Susan Collins of Maine
became the first woman to chair the Permanent Subcommittee on
Investigations. Senator John Glenn of Ohio became the Ranking
Minority Member. After Senator Glenn's retirement, Michigan
Democrat Carl Levin succeeded him in January 1999, as the
Ranking Minority Member. During Senator Collins' chairmanship,
the Subcommittee conducted a number of investigations affecting
Americans in their day-to-day lives, including investigations
into mortgage fraud, deceptive mailings and sweepstakes
promotions, phony credentials obtained through the Internet,
day trading of securities, and securities fraud on the
Internet. Senator Levin, while Ranking Minority Member,
initiated an investigation into money laundering. At his
request, the Subcommittee held hearings in 1999 on money
laundering issues affecting private banking services provided
to wealthy individuals, and in 2001, on how major U.S. banks
providing correspondent accounts to offshore banks were being
used to advance money laundering and other criminal schemes.
Senator Collins chaired the Subcommittee until June 2001, when
the Senate Majority party changed hands, and Senator Levin
assumed the chairmanship. Senator Collins, in turn, became the
Ranking Minority Member.
During the 107th Congress, both Senator Collins and Senator
Levin chaired the Subcommittee. In her first 6 months chairing
the Subcommittee at the start of the 107th Congress, Senator
Collins held hearings examining issues related to cross border
fraud, the improper operation of tissue banks, and Federal
programs designed to fight diabetes. Senator Levin then assumed
the chairmanship and, as his first major effort, led an 18-
month bipartisan investigation into the Enron Corporation,
which had recently collapsed into bankruptcy. As part of that
investigation, the Subcommittee reviewed over 2 million pages
of documents, conducted more than 100 interviews, held four
hearings, and issued three bipartisan reports focusing on the
role played by Enron's Board of Directors, Enron's use of tax
shelters and structured financial instruments, and how major
U.S. financial institutions contributed to Enron's accounting
deceptions, corporate abuses, and ultimate collapse. The
Subcommittee's investigative work contributed to passage of the
Sarbanes-Oxley Act which enacted accounting and corporate
reforms in July 2002. In addition, Senator Levin continued the
money laundering investigation initiated while he was Ranking
Minority Member, and the Subcommittee's work contributed to
enactment of landmark reforms strengthening U.S. anti-money
laundering laws in the 2001 PATRIOT Act. Also during the 107th
Congress, the Subcommittee opened new investigations into
offshore tax abuses, border security, and abusive practices
related to the pricing of gasoline and other fuels.
In January 2003, at the start of the 108th Congress, after
the Senate Majority party again changed hands, Senator Collins
was elevated to Chairman of the full Committee on Governmental
Affairs, and Republican Senator Norm Coleman of Minnesota
became Subcommittee Chairman. Over the next 2 years, Senator
Coleman held hearings on topics of national and global concern
including illegal file sharing on peer-to-peer networks,
abusive practices in the credit counseling industry, the
dangers of purchasing pharmaceuticals over the Internet,
Federal contractors with billions of dollars in unpaid taxes,
SARS preparedness, border security, and how Saddam Hussein
abused the United Nations Oil for Food Program. At the request
of Senator Levin, then Ranking Minority Member, the
Subcommittee also examined how some U.S. accounting firms,
banks, investment firms, and tax lawyers were designing,
promoting, and implementing abusive tax shelters across the
country; and how some U.S. financial institutions were failing
to comply with anti-money laundering controls mandated by the
PATRIOT Act, using as a case history Riggs Bank accounts
involving Augusto Pinochet, the former President of Chile, and
Equatorial Guinea, an oil-rich country in Africa.
During the 109th Congress, Senator Coleman held additional
hearings on abuses associated with the United Nation's Oil for
Food Program, and initiated a series of hearings on Federal
contractors who were paid with taxpayer dollars but failed to
pay their own taxes, resulting in billions of dollars in unpaid
taxes. He also held hearings on border security issues,
securing the global supply chain, Federal travel abuses, and
consumers hurt by abusive tax refund loans or unfair energy
pricing. At Senator Levin's request, the Subcommittee held
hearings on offshore tax abuses responsible for $100 billion in
unpaid taxes each year, and on U.S. vulnerabilities caused by
States forming 2 million companies each year with hidden
owners.
During the 110th Congress, in January 2007, Senator Levin
once again became Subcommittee Chairman. He focused on
investigations into complex financial and tax topics, including
unfair credit card practices, tax and accounting mismatches
involving executive stock options, excessive speculation in the
natural gas and crude oil markets, and offshore tax abuses
involving tax haven banks and non-U.S. persons dodging payment
of U.S. taxes on U.S. stock dividends. The Subcommittee's work
contributed to enactment of two landmark bills, the Credit Card
Accountability Responsibility and Disclosure Act (Credit CARD
Act) which reformed credit card practices, and the Foreign
Account Tax Compliance Act (FATCA) which tackled offshore tax
issues. At the request of Senator Coleman, then Ranking
Minority Member, the Subcommittee also conducted investigations
into Medicare and Medicaid health care providers who cheat on
their taxes, fraudulent Medicare claims involving deceased
doctors or inappropriate diagnosis codes, U.S. dirty bomb
vulnerabilities, Federal payroll tax abuses, abusive practices
involving transit benefits, and problems involving the United
Nations Development Program.
During the 111th Congress, Senator Levin continued as
Chairman of the Subcommittee, while Senator Tom Coburn joined
the Subcommittee as its Ranking Minority Member. During the
111th Congress, the Subcommittee dedicated much of its
resources to a bipartisan investigation into key causes of the
2008 financial crisis, looking in particular at the role of
high-risk home loans, regulatory failures, inflated credit
ratings, and high-risk, conflicts-ridden financial products
designed and sold by investment banks. The Subcommittee held
four hearings, released thousands of documents, and produced
bipartisan findings of fact and recommendations. In addition,
the Subcommittee held hearings on excessive speculation in the
wheat market, tax haven banks that helped U.S. clients evade
U.S. taxes, keeping foreign corruption out of the United
States, and social security disability fraud.
II. Subcommittee Hearings During the 111th Congress
A. Tax Haven Banks and U.S. Tax Compliance--Obtaining the Names of U.S.
Clients with Swiss Accounts (March 4, 2009)
The Subcommittee's first hearing in the 111th Congress
focused on the issue of tax haven banks that facilitate U.S.
tax evasion. The Subcommittee has estimated that U.S. taxpayers
using offshore tax schemes cost an estimated revenue loss of
$100 billion in unpaid taxes each year. Offshore tax abuses
also undermine the integrity of the Federal tax system and
shift the tax burden from high income taxpayers onto the middle
class. In the previous Congress, in 2008, the Subcommittee held
2 days of hearings and released a bipartisan staff report
demonstrating how two offshore banks, UBS of Switzerland and
LGT Bank of Liechtenstein, had actively facilitated tax dodging
by U.S. taxpayers and used offshore secrecy laws to hide the
actions of both their clients and their own personnel.
In March 2009, the Subcommittee continued its tax haven
bank investigation by holding a hearing on what the U.S.
Government was doing to stop UBS from aiding and abetting U.S.
tax evasion and to obtain the names of U.S. taxpayers with
hidden UBS accounts in Switzerland. At the hearing, the
Subcommittee released a number of UBS documents showing the
extent of the bank's efforts to help U.S. clients evade U.S.
taxes. One 2004 UBS internal report indicated that 32 UBS Swiss
bankers had traveled to the United States and made 3,800 client
visits in a single year, and that the bank then had a total of
52,000 Swiss account relationships with U.S. residents who had
not disclosed their accounts to the Internal Revenue Service
(IRS).
The hearing took testimony from two panels of witnesses. On
the first panel, John A. DiCicco, Acting Assistant Attorney
General for the Tax Division at the Department of Justice
(DOJ), and Douglas H. Shulman, IRS Commissioner, described the
criminal and civil legal actions taken by the U.S. Government
with respect to UBS. They explained that criminal proceedings
had led UBS, in February 2009, to enter into a deferred
prosecution agreement with DOJ, admit to participation in a
scheme to defraud the United States of tax revenue, pay a fine
of $780 million, and turn over the names of 250-300 U.S.
clients who had participated in the fraud. Mr. DiCicco and IRS
Commissioner Shulman also described ongoing civil proceedings
in which the U.S. Government was attempting to enforce a court-
approved John Doe summons to obtain from UBS the names and
account documentation for all remaining U.S. clients with
undisclosed Swiss accounts.
The second panel took testimony from the Chief Financial
Officer of UBS Global Wealth Management and Swiss Bank, Mark
Branson, who had traveled from Zurich, Switzerland to testify.
Mr. Branson acknowledged and expressed regret for the bank's
past conduct and repeated the pledge made by UBS at an earlier
Subcommittee hearing that it would close the offending accounts
and no longer open Swiss accounts for U.S. clients without
notifying the IRS. This pledge represented the first time a
major bank in a tax haven jurisdiction promised to no longer
open accounts for U.S. clients without alerting the IRS. While
UBS also promised to cooperate with the U.S. investigation into
its actions, Mr. Branson testified that, due to Swiss bank
secrecy laws, it might not be able to disclose any additional
U.S. client names to the United States. He explained that the
Swiss government had intervened in the John Doe proceedings to
prevent any additional disclosure of client information and had
asserted that, instead of the John Doe summons, the United
States ought to be using the procedures set up under the U.S.-
Swiss tax treaty to obtain the information it wanted.
The witnesses agreed, however, that the U.S.-Swiss tax
treaty, like other tax treaties and tax information exchange
agreements around the world, was not designed to handle
inquiries into taxpayers whose names were unknown. As the IRS
explained in a court pleading, the Swiss have consistently
applied the tax treaty ``to provide the [IRS] assistance only
in response to specific requests that name a particular
taxpayer.'' In the UBS case, for example, after the United
States made a request under the treaty for the names of the
52,000 UBS Swiss account relationships with U.S. clients, the
Swiss government determined that only 12 accountholders met the
treaty standards and could be disclosed to the United States.
In addition, the Swiss allowed those 12 to appeal its
determination, leading to lengthy proceedings in Swiss courts.
The IRS stated in a court pleading 7 months after making its
request: ``The Swiss Government has not provided any records
sought under the Treaty Request, and it is not clear when, if
ever, it will.'' The Swiss government was invited to appear at
the Subcommittee hearing to discuss the UBS matter and the
pending U.S. treaty request, but it declined to send a
representative.
Later in 2009, after the hearing, Switzerland and the
United States reached agreement on a new tax treaty with
slightly broader terms and, in August 2009, the Swiss agreed to
turn over the names of an additional, estimated 4,400 UBS
clients. In return, the United States agreed to forgo obtaining
the names of the remaining tens of thousands of U.S. clients
with undisclosed UBS accounts in Switzerland. Over the
following 2 years, the 4,400 names were slowly provided by the
Swiss to the United States.
The Subcommittee's work on abusive practices by tax haven
banks contributed to enactment by Congress, in 2010, of the
Foreign Account Tax Compliance Act (FATCA) which, among other
provisions, requires foreign banks to disclose all accounts
opened by U.S. persons or pay a 30 percent tax on income
generated by U.S. investments held by those banks. In addition,
the Subcommittee's work contributed to a world or wide effort
to pressure tax havens to stop using secrecy laws to facilitate
tax evasion. In response to this worldwide campaign, by 2010,
virtually all offshore jurisdictions around the world,
including Switzerland, stated publicly they would no longer use
secrecy laws to facilitate tax evasion and committed to
adopting international standards on tax information exchange.
Implementation of those pledges continues.
B. Excessive Speculation in the Wheat Market (July 21, 2009)
Since 2001, the Subcommittee has investigated the pricing
of energy commodities, such as crude oil, natural gas, and
gasoline; allegations of price manipulation and excessive
speculation; and actions taken by the Commodity Futures Trading
Commission (CFTC) and the commodity exchanges to police
commodity markets. In 2009, the Subcommittee extended its
investigation of commodity markets by releasing a 270-page
bipartisan staff report and holding a hearing on pricing and
speculation issues involving wheat.
As part of its investigation, the Subcommittee compiled and
examined millions of trading records from the Chicago
Mercantile Exchange, Kansas City Exchange, Minneapolis Grain
Exchange, the CFTC, and others to track and analyze trends in
wheat prices. The data showed that commodity index traders--
traders who are not producers or consumers of wheat, but buy
wheat futures to help offset their financial exposure from
selling commodity index instruments to third parties--had
injected billions of dollars, in the aggregate, into the wheat
futures market over 6 years. The data also showed that
commodity index traders had increased their holdings from a
total of about 30,000 wheat contracts in 2004, up to 220,000
contracts in 2008, enlarging their market share so that, in
each year since 2006, commodity index traders held between 35
percent and 50 percent of all outstanding wheat futures
contracts on the Chicago Mercantile Exchange. The investigation
concluded that, as a result, commodity index traders had, in
the aggregate, pushed up futures prices, disrupted the normal
relationship between futures prices and cash prices for wheat,
and caused farmers, grain elevators, grain processors,
consumers, and others to experience significant unwarranted
costs and price risks. The excessive speculation engaged in by
index traders had also made it more difficult to use the
futures market to protect against price changes.
The report released by the Subcommittee on June 24, 2009,
included bipartisan findings of fact and recommendations. One
of the key findings was that significant and persuasive
evidence indicated that one of the major reasons for the recent
wheat market problems was the unusually high level of
speculation in the Chicago wheat futures market due to
purchases of futures contracts by index traders offsetting
sales of commodity index instruments. To diminish and prevent
this type of excessive speculation in the Chicago wheat futures
market, the investigation recommended that the CFTC phase out
exemptions and waivers that had allowed some index traders to
operate outside of the trading limits designed to prevent
excessive speculation. That action would then enable the CFTC
to impose on index traders the same position limits for wheat
contracts that apply to other speculators, and rein in the
excessive speculation disrupting wheat prices. In addition, the
investigation recommended that the CFTC analyze the impact of
commodity index trading on other commodities, including crude
oil, to determine if excessive speculation was distorting
prices.
The hearing took testimony from three panels of witnesses
who reacted to the Subcommittee's investigation and report, and
described their own wheat market experiences and analysis of
wheat prices. The first witness was CFTC Chairman Gary Gensler
who described the CFTC's concern with preventing excessive
speculation from distorting commodity prices and commercial
hedging efforts. The second panel heard from four witnesses
with expertise on commodity issues, including a wheat producer,
wheat user, wheat trader, and consumer protection group. The
panelists were Thomas Coyle, Vice President and General Manager
of Chicago and Illinois River Marketing LLC, Nidera, Inc., and
Chairman of the National Grain and Feed Association; Hayden
Wands, Director of Procurement for the Sara Lee Corporation and
Chairman of the Commodity and Agricultural Policy of the
American Bakers Association; Steven H. Strongin, head of the
Global Investment Research Division for Goldman Sachs Group,
Inc.; and Mark Cooper, Director of Research for the Consumer
Federation of America. The third and final panel heard from
Charles P. Carey, Vice Chairman of the CME Group, which manages
the Chicago Mercantile Exchange, the largest wheat futures
market in the world.
The witnesses generally agreed that commodity index traders
had an increased presence in the wheat market, the wheat market
was experiencing increased price volatility and hedging
failures, and recent trends showed an ongoing disconnect
between wheat futures and cash prices, but they often disagreed
on the causes of those problems. The wheat producer, user and
consumer witnesses saw commodity index traders as responsible
for excessive speculation and price distortions, while the
wheat trader and exchange operator did not. The CFTC chairman
promised additional study.
In response to the Subcommittee's work, the CFTC
intensified its review of wheat price convergence problems and
revoked some position limit waivers and exemptions that had
been granted to wheat index traders. The CME Group tried other
remedies as well, but index traders continued to dominate the
wheat markets and wheat pricing problems continued to plague
its market. In 2010, Congress enacted the Dodd-Frank Wall
Street Reform and Consumer Protection Act which, among other
provisions, mandated stronger regulation of all commodity
markets and related commodity derivatives, provided stronger
tools to restrain excessive speculation, and mandated the
imposition of position limits on commodity traders.
C. Keeping Foreign Corruption out of the United States: Four Case
Histories (February 4, 2010)
Since 2003, the Subcommittee has conducted a series of
investigations into U.S. practices that may contribute,
wittingly or unwittingly, to corruption in foreign countries.
In February 2010, the Subcommittee held a hearing and released
a 330-page bipartisan staff report showing how politically
powerful foreign officials, their relatives, and close
associates--referred to as Politically Exposed Persons (PEPs)
in international agreements--have funneled millions of dollars
in illicit money into the United States using the services of
U.S. lawyers, real estate and escrow agents, lobbyists, and
other professionals. During the course of this investigation,
the Subcommittee reviewed millions of pages of documents,
conducted more than 100 interviews, and traced millions of
dollars in suspect funds.
The investigation developed four case histories, involving
PEPs from Equatorial Guinea, Gabon, Nigeria, and Angola, to
expose some of the tactics being used to bring suspect funds
into the United States. The case histories showed, for example,
how PEPs used U.S. shell corporation, law office, trust, and
family bank accounts to bring suspect funds into the United
States; used U.S. real estate and escrow agents to purchase
lavish residences and aircraft with suspect funds; and used a
U.S. lobbyist to distribute suspect funds across the country
and around the globe. Another case history showed how U.S.
banks allowed PEPs to wire transfer suspect funds into the
United States, including funds from around the globe from a
known arms dealer and felon; millions of dollars that the head
of a central bank attempted to transfer from the central bank
to a private account in the United States; and funds from a
private bank that catered to PEPs in a country known for
corruption.
The investigation also showed that many of the U.S.
professionals assisting PEPs, including lawyers, real estate
and escrow agents, and lobbyists, were exempt from anti-money
laundering (AML) laws which would require them to know their
customers, evaluate the source of funds transferred into the
United States, and report suspicious activity to law
enforcement. The investigation offered a number of
recommendations to help keep foreign corruption out of the
United States, including by revoking the AML exemptions granted
to real estate and escrow agents, identifying the owners of
U.S. shell corporations, and tightening controls on shell
company and law office accounts.
The hearing took testimony from three panels of witnesses.
The first panel called two lawyers and a lobbyist who assisted
PEPs in Equatorial Guinea and Gabon to bring suspect funds into
the United States. At the hearing, all three panelists asserted
their Fifth Amendment rights under the Constitution and
declined to testify.
The two lawyers, Michael Jay Berger and George I. Nagler,
had each worked for Teodoro Obiang, the 40-year-old son of the
President of Equatorial Guinea who was under investigation by
the Justice Department for corruption and other misconduct. He
was also an Equatorial Guinea Cabinet Minister and a PEP in his
own right. Although they did not work together, the two
attorneys formed five California shell corporations for Mr.
Obiang's use, with names like Beautiful Vision, Unlimited
Horizon, and Sweetwater. The lawyers then opened accounts for
those shell corporations at multiple banks, and allowed Mr.
Obiang to transfer funds into and out of them to advance his
interests. In addition, each attorney allowed Mr. Obiang to
wire millions of dollars into the attorney's law office or
attorney-client bank accounts and forwarded the funds to other
accounts controlled by Mr. Obiang, thereby disguising the
origin of the funds as from Equatorial Guinea, a country many
banks viewed as high risk.
The remaining panelist, Jeffrey C. Birrell, served as a
registered lobbyist for the Republic of Gabon. From 2003 until
at least 2007, he worked closely with Omar Bongo, the now
deceased President of Gabon, to buy U.S.-made armored vehicles
and obtain U.S. Government permission to buy six C-130 military
cargo aircraft from Saudi Arabia to support the Bongo regime.
In connection with those projects, more than $18 million was
wire transferred from Gabon into Mr. Birrell's U.S. corporate
bank accounts. Part of that money came from President Bongo's
personal account; most came from an entity in Gabon called
``Ayira.'' At President Bongo's direction, Mr. Birrell spent
millions of dollars of the Gabon money on the armored car and
aircraft projects, including wiring more than $1 million to
various ``consultants'' around the world and at least another
$4 million to a Bongo advisor with accounts in Brussels and
Paris. When the aircraft deal fell through, Mr. Birrell wired
over $9 million of the Ayira money to an account in President
Bongo's name--not in Gabon--but in the country of Malta. Mr.
Birrell's corporate bank accounts became conduits for multi-
million-dollar suspicious wire transfers directed by President
Omar Bongo through the U.S. financial system.
The second panel of witnesses heard from a U.S. real estate
agent, escrow agent, and two banks that facilitated suspect PEP
transactions in the United States. The real estate agent, Neal
Baddin, helped Teodoro Obiang purchase a $30 million mansion in
Malibu, in part by accepting multiple wire transfers from
Equatorial Guinea into an escrow account at a U.S. bank. Mr.
Baddin testified that he had no legal obligation to inquire
into the source of those funds or evaluate whether they might
be the proceeds of crime. Mr. Obiang also bought a $38.5
million U.S.-built Gulfstream jet. After one U.S. escrow agent,
as an AML precaution, refused to proceed with the aircraft
purchase without more information about the source of the
funds, another escrow agent, Insured Aircraft Title Services
Inc. (IATS), stepped in and completed the transaction with no
questions asked. The second panelist, Brenda K. Cobb, an IATS
Vice President, explained that U.S. regulations currently
exempted escrow agents from any AML obligations and so did not
require the company to screen client funds. Both Mr. Baddin and
Ms. Cobb testified that, if the law had required their firms to
take AML precautions, their firms would have complied with the
law.
The second panel also heard from two banks that facilitated
PEP transactions in the United States. William J. Fox was
Senior Vice-President and Global Anti-Money, Laundering and
Economic Sanctions Executive of Bank of America; Wiecher H.
Mandemaker was the Director of General Compliance, Personal
Financial Services, Anti-Money Laundering Compliance, for HSBC
Bank USA. Mr. Fox expressed regret that for a period of 18
years, from 1989 to 2007, a Bank of America branch in
Scottsdale, Arizona provided more than 30 accounts to Pierre
Falcone, a notorious arms dealer who supplied weapons during
Angola's civil war in violation of a U.N. arms embargo. Mr.
Falcone had a long history of run-ins with the law, was
incarcerated for a year in 2000, was a fugitive from a 2004
global arrest warrant, and at the time of the hearing was
serving a 6-year prison term in France. Bank of America
documents indicated that the bank knew who he was, yet never
designated him a PEP despite his being an Angolan Ambassador,
never designated his accounts as high-risk despite deposits of
substantial sums of offshore money, and never closed his
accounts until contacted by the Subcommittee. Mr. Mandemaker
acknowledged that, for over a decade, HSBC provided U.S.
banking services to Banco Africano de Investimentos (BAI), a $7
billion Angolan private bank whose largest shareholder was
Angola's State-owned oil company and which catered to PEP
clients. Despite PEPs in BAI's management and clientele, and
HSBC's inability despite multiple requests to get clear
information about BAI's owners or a copy of its AML procedures,
HSBC continued to provide the BAI bank with ready access to the
U.S. financial system.
The third and final panel heard from three Federal
Government representatives: David T. Johnson, Assistant
Secretary for International Narcotics and Law Enforcement
Affairs at the U.S. Department of State; Janice Ayala,
Assistant Director, Office of Investigations, Immigration and
Customs Enforcement (ICE) at the U.S. Department of Homeland
Security; and James H. Freis, Jr., Director of the Financial
Crimes Enforcement Network (FinCEN) at the U.S. Department of
Treasury. All three expressed concern about U.S. professionals
facilitating foreign corruption through the United States and
reacted to proposals to strengthen U.S. barriers to foreign
corruption, including implementing stronger PEP controls at
banks to identify and monitor PEP clients; requiring persons
setting up U.S. shell companies to identify their beneficial
owners; revoking AML exemptions for real estate and escrow
agents; preventing misuse of law office and attorney-client
bank accounts; and strengthening U.S. visa and immigration
policies to make foreign corruption a legal basis for excluding
or removing a foreign PEP from the United States.
D. Wall Street and the Financial Crisis: The Role of High-Risk Home
Loans (April 13, 2010)
In November 2008, the Subcommittee initiated a bipartisan
investigation into key causes of the 2008 financial crisis
which cost millions of jobs, caused the loss of millions of
homes, destroyed savings, shuttered good businesses, and put
the United States into the worst economic tailspin since the
Great Depression. The investigation's goals were threefold: To
construct a public record of the facts to deepen public
understanding of what happened; identify some of the root
causes of the crisis; and provide a factual foundation for the
ongoing effort to fortify the country against the recurrence of
a similar crisis in the future. As part of its investigation,
the Subcommittee conducted over 150 interviews and depositions,
consulted with dozens of experts, and subpoenaed and reviewed
millions of pages of documents.
In April 2010, the Subcommittee held four hearings
examining how high-risk mortgage lending, regulatory failures,
inflated credit ratings that misled investors, and high-risk,
conflicts-ridden financial products designed and sold by
investment banks contributed to the financial crisis, using
case histories in each hearing to illustrate the problems.
The first hearing, on April 13, 2010, focused on the role
of high-risk home loans and the mortgage backed securities that
those loans produced, using as a case history the lending and
securitization practices of Washington Mutual Bank. Washington
Mutual Bank, the largest U.S. thrift with more than $300
billion in assets, issued billions of dollars in high-risk
mortgage loans, packaged them into securities that later
experienced a high rate of delinquency or loss, and then
collapsed in the largest bank failure in U.S. history.
Washington Mutual securitized over $77 billion in subprime home
loans as well as billions of dollars of other high-risk home
loans, including interest-only, home equity, and ``Option
Adjustable Rate Mortgages (ARM)'' loans. Many of those loans
used initial low ``teaser'' interest rates that, unless the
loan was refinanced, were later replaced with much steeper
rates and higher monthly payments. The Option ARM loans also
allowed borrowers, for a specified period, to pay less than the
interest they owed each month, resulting in a larger rather
than reduced mortgage debt, a feature called negative
amortization. When home prices stopped increasing, many
borrowers were unable to refinance their loans, defaulted on
their mortgages, and lost their homes while the related
mortgage securities plummeted in value.
At the hearing, the Subcommittee released thousands of
pages of hearing exhibits documenting Washington Mutual's role
in the 2008 financial crisis. The hearing exhibits
demonstrated, for example, that the reason that Washington
Mutual executives embarked upon a high-risk lending strategy
was because they had projected that high-risk home loans, which
generally charged higher interest rates and produced higher
sales prices on Wall Street, would be more profitable for the
bank than lower risk home loans. The documents also showed that
Washington Mutual and its affiliate, Long Beach Mortgage
Company, used shoddy lending practices riddled with credit,
compliance, and operational deficiencies. Those practices
included issuing loans with erroneous or fraudulent borrower
information, ``stated income loans'' in which borrowers stated
their income with no supporting documentation, loans with
inaccurate appraisals, and loans in which the borrowed amount
equaled 90 percent or more of the value of the home. The
hearing exhibits also showed that Washington Mutual and Long
Beach steered many borrowers into loans they could not afford
when the higher monthly payments built into those loans took
effect. Those high-risk loans were nevertheless packaged into
mortgage-backed securities sold to investors worldwide,
saturating financial markets with mortgage-backed securities
that later incurred high rates of delinquency and loss.
The hearing exhibits also showed that, at times, Washington
Mutual securitized loans that it had identified as likely to go
delinquent, without disclosing its analysis to investors who
bought the securities, and securitized loans tainted by
fraudulent information, without notifying purchasers of the
fraud that had been discovered. In addition, the documents
showed that Washington Mutual's compensation system rewarded
loan officers and loan processors for speed and volume in
issuing loans, rather than for issuing high quality loans. The
compensation system also paid extra to loan officers who
overcharged borrowers or added stiff prepayment penalties, and
awarded bank executives millions of dollars even when their
high-risk lending strategy placed the bank in financial
jeopardy.
The hearing took testimony from two panels of former bank
personnel. The first panel consisted of two former Washington
Mutual risk management officers and the chief auditor who were
employed by the bank during the run up to its collapse in 2008.
The witnesses were James Vanasek, former Chief Risk Officer
from 2004 to 2005; Ronald Cathcart, former Chief Risk Officer
from 2006 to 2008; and Randy Melby, former General Auditor from
2004 to 2008. All three witnesses acknowledged the bank's high-
risk lending practices, poorly performing loans and mortgage-
backed securities, and weak oversight of loan personnel and the
third party mortgage brokers that provided loans to the bank.
All three described how they alerted bank management to the
risks and other problems, but were ignored or marginalized by
the bank's senior officers.
The second panel of witnesses heard from four senior
Washington Mutual officers, the bank's Chief Executive Officer
(CEO), President, Home Loans Division head, and head of the
Capital Markets Division. The witnesses were Kerry Killinger,
former President, CEO, and Chairman of the Board of Washington
Mutual; Stephen Rotella, former President and Chief Operating
Officer of the bank; David Schneider, former President of the
Home Loans Division; and David Beck, Former Division Head of
Capital Markets. These four bank officers also acknowledged the
bank's dismal performance, but claimed they worked hard to
reduce the bank's risk and address other problems. They
portrayed the bank as a victim of, rather than a contributor
to, the financial crisis and denied their practices contributed
to the bank's downfall.
In April 2011, the Subcommittee issued a 750-page
bipartisan staff report summarizing its investigation into
high-risk lending practices discussed at the hearing and
offering recommendations to prevent similar problems in the
future. The Subcommittee's work contributed to the enactment of
the Dodd-Frank Wall Street Reform and Consumer Protection Act
of 2010 (``Dodd-Frank Act''). Among other provisions, the Dodd-
Frank Act prohibited stated income loans; imposed restrictions
on loans using low teaser rates or negative amortization; and
required banks to retain a portion of the credit risk of each
mortgage-backed security they issued.
E. Wall Street and the Financial Crisis: The Role of Bank Regulators
(April 16, 2010)
The second in the series of Subcommittee hearings on key
causes of the 2008 financial crisis, on April 16, 2010, focused
on the role of Federal bank regulators charged with ensuring
the safety and soundness of the U.S. banking system. The
Subcommittee used as a case study regulatory oversight of
Washington Mutual, focusing on the Office of Thrift Supervision
(OTS), which was the bank's primary regulator, and the Federal
Deposit Insurance Corporation (FDIC), which was its backup
regulator.
At the hearing, the Subcommittee released thousands of
pages of hearing exhibits documenting actions taken by OTS and
the FDIC, from 2004 to 2008, to ensure the safety and soundness
of Washington Mutual, the sixth largest bank in the United
States and OTS's largest institution. Together, the documents
demonstrated that feeble oversight by the regulators, combined
with weak regulatory standards and agency infighting, allowed
Washington Mutual Bank to engage in high-risk and shoddy
lending practices and the sale of poor quality and sometimes
fraudulent mortgages that contributed to both the bank's demise
and the 2008 financial crisis.
The hearing exhibits showed that over a 5-year period, from
2003 to 2008, OTS identified over 500 serious deficiencies in
Washington Mutual's lending practices, risk management, and
asset quality, but failed to force adequate corrective action
to prevent the bank's failure. The documents demonstrated that
OTS was aware of, yet tolerated, Washington Mutual and its
affiliate Long Beach Mortgage Company's engaging in year-after-
year of shoddy lending and securitization practices, including
the origination and sale of loans and mortgage-backed
securities with notoriously high rates of delinquency and loss.
The hearing exhibits also demonstrated that OTS allowed
Washington Mutual to originate hundreds of billions of dollars
in high-risk loans, knowing that the bank used unsafe and
unsound teaser rates, qualified borrowers using those teaser
rates rather than the higher interest rates that would later
take effect, permitted borrowers to make minimum payments
resulting in negatively amortizing loans, relied on rising
house prices and refinancing to avoid payment shock and loan
defaults, had unsafe concentrations of loans in particular
States, and had no realistic data to calculate loan losses in
markets with flat or declining house prices. The documents show
that, due in part to the short-term profits obtained by the
bank from its lending activities, OTS repeatedly failed to take
enforcement action to stop Washington Mutual's unsafe and
unsound practices or strengthen its portfolio of high-risk,
poor-quality loans and securities.
In addition, the hearing exhibits disclosed agency
infighting in which OTS actively impeded FDIC oversight of
Washington Mutual by blocking the FDIC's access to bank data,
refusing to allow it to participate in bank examinations, and
rejecting requests to review bank loan files. OTS also rejected
FDIC recommendations for stronger enforcement action.
The documents also demonstrated that Federal bank
regulators were hobbled in their efforts to end unsafe and
unsound mortgage practices at U.S. banks by weak regulatory
standards, use of guidance instead of enforceable regulations
to limit bank practices, and the failure to set clear deadlines
for bank compliance. The case history exposed an ineffective
regulatory culture at OTS in which bank examiners were
demoralized by their inability to stop unsafe practices, their
supervisors' reluctance to take formal enforcement actions even
after years of recorded bank deficiencies, and an agency
culture that treated banks as ``constituents'' rather than
regulated entities. In addition, the case history showed how
OTS and the FDIC allowed Washington Mutual to reduce its risks
by selling its high-risk assets, without concern that those
assets might saturate the financial system, contribute to
investor losses, and undermine investor confidence in the U.S.
mortgage market.
The hearing heard from three panels of witnesses. The first
panel consisted of two Federal Inspectors General who had
prepared a joint report on the regulatory failures associated
with Washington Mutual. The witnesses were Eric Thorson,
Inspector General for the U.S. Treasury Department, and Jon T.
Rymer, Inspector General for the FDIC. Both testified that the
OTS had identified numerous serious deficiencies at the bank,
but failed to take needed enforcement actions to change the
bank's conduct. Both agreed that OTS allowed short-term profits
to excuse high-risk practices and poor quality assets. Both
also agreed that OTS and the FDIC failed to provide accurate
ratings of the bank's management and financial condition; and
OTS engaged in unacceptable tactics to impede FDIC oversight.
The second panel took testimony from five regulators who
helped oversee Washington Mutual prior to its collapse, three
from OTS and two from the FDIC. The witnesses were John Reich,
former Director of OTS; Darrel Dochow, former OTS West Regional
Director; Lawrence Carter, former OTS Examiner-in-Charge at
Washington Mutual from 2004 to 2006; John Corston, Acting FDIC
Deputy Director of the Large Institutions and Analysis Branch;
and J. George Doerr, FDIC Deputy Regional Director for the
Division of Supervision and Consumer Protection in San
Francisco. The witnesses generally agreed that the bank's
activities were high risk, but asserted they did not violate
regulatory standards. The FDIC witnesses criticized the extent
to which OTS allowed Washington Mutual's loan practices to
layer risks and gave the bank more time to comply with bank
guidance limiting high-risk activities.
The third panel took testimony from the heads of OTS and
the FDIC, Sheila C. Bair, FDIC Chairman, and John E. Bowman,
OTS Acting Director. Both acknowledged the regulatory failures
underlying the collapse of Washington Mutual, testifying among
other matters that regulators had been too tolerant of risk,
and the regulatory standards should have banned stated income
loans and limited other risky products and practices.
In April 2011, the Subcommittee issued a 750-page
bipartisan staff report summarizing its investigation into the
regulatory failures discussed at the hearing and offering a
number of recommendations to prevent similar problems in the
future. The Subcommittee's work contributed to the enactment of
the Dodd-Frank Act which, among other provisions, abolished OTS
and moved its regulatory responsibilities to another bank
regulator; prohibited a number of high-risk lending practices;
strengthened the FDIC's oversight role; and created a Financial
Oversight Stability Council to detect and prevent systemic
risks to the U.S. financial system.
F. Wall Street and the Financial Crisis: The Role of Credit Rating
Agencies (April 23, 2010)
The third in the series of Subcommittee hearings examining
key causes of the financial crisis, on April 23, 2010, focused
on the role of the credit rating agencies that rated
residential mortgage backed securities (RMBS) and collateral
debt obligations (CDOs) from 2004 to 2008. The Subcommittee's
investigation used as a case history the two largest U.S.
credit rating agencies, Moody's and Standard & Poor's
(``S&P''), which together rated tens of thousands of RMBS and
CDO securities in the years prior to the financial crisis.
Those ratings proved to be both inaccurate and inflated, as
evidenced by studies showing that over 90 percent of the RMBS
securities given AAA ratings in 2006 and 2007, were later
downgraded to junk status, subjecting investors to unusually
high rates of delinquency and loss.
At the hearing, the Subcommittee released thousands of
pages of hearing exhibits documenting actions taken by Moody's
and S&P during the period 2004 to 2007. Those documents showed
how some investment bankers pressured the credit rating
agencies to provide favorable ratings for the RMBS and CDO
products they designed and planned to sell, and how Moody's and
S&P--which were paid by those firms--repeatedly gave into that
pressure. The hearing exhibits also disclosed how competitive
pressures, including the drive for market share and the need to
accommodate investment bankers bringing in business, caused
Moody's and S&P to weaken their standards for issuing favorable
ratings. The documents also showed that Moody's and S&P made
record profits rating structured finance products during this
period, primarily from rating complex RMBS and CDO products.
The documents showed that Moody's and S&P issued AAA and
other investment grade credit ratings for the vast majority of
RMBS and CDO securities they rated, deeming them safe
investments even though many relied on high-risk home loans. In
late 2006, high-risk mortgages began incurring delinquencies
and defaults at an alarming rate. Despite signs of a
deteriorating mortgage market, Moody's and S&P continued for 6
months to issue investment grade ratings for numerous RMBS and
CDO securities.
The hearing exhibits showed that Moody's and S&P were aware
of the increasing risks associated with the subprime, interest-
only, and adjustable rate mortgages being issued by lenders,
including their increasing use of stated income loans that did
not document a borrower's ability to repay debt, loans
containing fraudulent borrower or appraisal information, and
loans with initial teaser rates that relied on the borrower
refinancing the debt before higher interest rates took effect.
The documents also showed that Moody's and S&P were aware of
housing prices leveling out, delinquency rates climbing, and
related MBS and CDO securities incurring increased losses,
despite their AAA ratings. One S&P analyst told a superior in
early 2007, that he did not expect the ratings to ``hold''
through the year.
The documents also showed that in July 2007, within days of
each other, Moody's and S&P suddenly announced mass downgrades
of hundreds of RMBS and CDO securities. Those mass downgrades
shocked the financial markets, triggered sales of assets that
had lost their investment grade status, and contributed to the
collapse of first the RMBS and then the CDO secondary markets.
Financial firms and investors were left holding billions of
dollars of suddenly unmarketable securities whose value began
plummeting. The Subcommittee's investigation concluded that the
2007 mass downgrades, which were unique in U.S. financial
history and which made it clear that RMBS and CDO securities
were no longer safe investments, were the most immediate
trigger of the financial crisis.
The hearing exhibits also showed that, from 2004 to 2007,
Moody's and S&P used credit rating models with data that was
inadequate to predict how high-risk home loans would perform.
In addition, they showed that Moody's and S&P failed to factor
into their models increased credit risks due to mortgage fraud,
lax underwriting standards, and unsustainable housing price
appreciation. By 2006, Moody's and S&P knew their RMBS and CDO
ratings were inaccurate, revised their rating models to produce
more accurate ratings, but then failed to use the revised
models to re-evaluate their existing RMBS and CDO ratings,
delaying thousands of rating downgrades and allowing those
securities to carry inflated ratings that could mislead
investors. In addition, despite record profits, Moody's and S&P
failed to assign sufficient resources to adequately rate new
products and test the accuracy of their existing ratings.
At the hearing, three panels of witnesses reacted to the
Subcommittee's investigation and hearing exhibits. The first
panel took testimony from four former Moody's and S&P employees
involved with rating RMBS and CDO securities. The witnesses
were Frank Raiter, former Managing Director of Mortgage-Backed
Securities at S&P; Richard Michalek, former Vice President and
Senior Credit Officer in the Structured Derivative Products
Group at Moody's; Eric Kolchinsky, former Team Managing
Director in the Structured Derivative Products Group at
Moody's; and Arturo Cifuentes, Ph.D., former Senior Vice-
President at Moody's and currently Director of the Finance
Center at the University of Chile. These former Moody's and S&P
employees described multiple instances of competitive
pressures, inadequate resources, and conflicts of interest that
weakened the credit rating process and criticized their
employers for issuing inaccurate ratings.
The second panel took testimony from three senior credit
rating officials who oversaw RMBS and CDO ratings in the run up
to the 2008 financial crisis. The witnesses were Susan Barnes,
Managing Director of Mortgage-Backed Securities at S&P; Peter
D'Erchia, Managing Director of U.S. Public Finance and former
Global Practice Leader for Surveillance at S&P; and Yuri
Yoshizawa, Group Managing Director for Structured Finance at
Moody's Investors Service. These senior officers essentially
defended their firms and denied that competitive pressures or
conflicts of interest affected the ratings process.
The third and final panel took testimony from the heads of
Moody's and S&P during the years proceeding the financial
crisis. The witnesses were Raymond W. McDaniel, Jr., Chairman
and Chief Executive Officer of Moody's Corporation; and
Kathleen A. Corbet, President of S&P from 2004 to 2007. Both
witnesses expressed dissatisfaction with their companies'
ratings performance and acknowledged taking steps to strengthen
their ratings process. Both also essentially denied any
breakdown in their ratings process, and portrayed their firms
as victims of an unexpected widespread decline in housing price
appreciation which rendered their credit ratings inaccurate.
In April 2011, the Subcommittee issued a 750-page
bipartisan staff report summarizing its investigation into the
inaccurate and inflated credit ratings and mass rating
downgrades discussed at the hearing. The report also provided
bipartisan recommendations to prevent similar problems in the
future. The Subcommittee's work contributed to the enactment of
the Dodd-Frank Act which, among other provisions, strengthened
SEC oversight of the credit rating agencies, instituted new
controls to improve the credit rating process, banned Federal
regulations requiring reliance on credit ratings, and initiated
a study to determine how to address the conflicts of interest
inherent when credit rating agencies are paid by the firms
whose financial products are being rated.
G. Wall Street and the Financial Crisis: The Role of Investment Banks
(April 27, 2010)
The fourth and final hearing in the Subcommittee series of
hearings on key causes of the 2008 financial crisis took place
on April 27, 2010. It focused on the role of investment banks,
using as a case history Goldman Sachs, a Wall Street investment
bank that was a leader in developing RMBS and CDO products and
the secondary mortgage market, and then profited from the
collapse of that same market during the crisis. In addition,
the hearing examined actions taken by Goldman indicating that
it had engaged in troubling and sometimes abusive practices
raising multiple conflict of interest concerns.
At the hearing, the Subcommittee released thousands of
pages of hearing exhibits documenting actions taken by Goldman
during the run up to the financial crisis. These documents
showed that, from 2004 to 2007, in exchange for lucrative fees,
Goldman helped lenders notorious for issuing high-risk, poor
quality loans securitize them, obtain favorable credit ratings
for them, and sell the resulting RMBS securities to investors,
injecting billions of dollars of risky loans into the financial
system. The hearing exhibits also showed how Goldman Sachs
magnified the risks associated with subprime mortgages by re-
securitizing related RMBS securities in CDOs, referencing them
in synthetic CDOs, and selling the CDO securities to investors
worldwide. In addition, Goldman promoted standardized credit
default swaps and other products to enable investors to bet on
the failure as well as the success of RMBS and CDO securities.
The hearing exhibits also showed how, as high-risk home
loans began to default, loan delinquency rates increased, and
RMBS and CDO securities began to incur losses in late 2006,
Goldman suddenly reversed course and began to bet against the
mortgage market. The documents detailed how Goldman sold its
mortgage investments, used a variety of tactics to build a very
large net short position, and either locked in or cashed out
its profits during 2007, generating billions of dollars in
gain. One internal Goldman email characterized this 2007 effort
as the ``big short.'' As a result, during the financial crisis,
while other investment banks incurred large losses, Goldman
showcased its mortgage profits, citing its net short position.
The hearing exhibits also provided detailed information
about Goldman's efforts during late 2006 and the first half of
2007, to originate and sell four mortgage-related CDOs known as
Hudson, Anderson, Timberwolf, and Abacus. Goldman designed
those CDOs, underwrote them, and recommended the CDO securities
to clients. In three of the CDOs, Goldman also secretly bet
against the securities, either in whole or in part. In the
fourth, Goldman allowed a favored client to help select the
assets and then bet against the CDO. Goldman did not inform the
investors to whom it marketed and sold the CDO securities that
it had a negative view of the mortgage market at the same time,
that it was shorting the mortgage market, or that Goldman or a
favored client had bet against the same CDO securities that
Goldman was selling to them.
The hearing took testimony from three panels of witnesses,
all of whom were former or current Goldman employees. The first
panel consisted of four former or current Goldman employees
involved with trading mortgage products. The witnesses were
Daniel L. Sparks, former head of Goldman's Mortgage Department;
Michael J. Swenson, Managing Director with the Structured
Products Group Trading Desk; Joshua S. Birnbaum, former
Managing Director of Structured Products Group Trading Desk;
and Fabrice P. Tourre, Executive Director of the Structured
Products Group Trading Desk in London, England. The second
panel consisted of two senior Goldman officers, David A.
Viniar, Goldman's Chief Financial Officer; and Craig W.
Broderick, Goldman's Chief Risk Officer. The third panel took
testimony from Lloyd C. Blankfein, Goldman's Chairman and Chief
Executive Officer.
The witnesses responded to questions about Goldman's
actions during the financial crisis and information in the
hearing exhibits. Goldman's senior officers essentially denied
that Goldman had accumulated a large short position in the
mortgage market or bet against the mortgage assets that it had
marketed and sold to its clients. They also denied that Goldman
had engaged in troubling conduct when it failed to tell clients
that it held the short side of the CDO securities that Goldman
was recommending they buy. When confronted with emails showing
that Goldman personnel had sharply negative views of the CDOs
the firm was selling to its clients, the witnesses contended
that Goldman was acting as a market-maker rather than an
underwriter of those securities, it had no legal obligation to
disclose material adverse information to its clients, and its
clients were sophisticated investors who would have been
uninterested in Goldman's views. The witnesses also took the
position that the firm had no fiduciary duty to the clients to
whom Goldman recommended and sold the CDO securities. When
asked whether the firm had been engaged in proprietary trading
when shorting the mortgage market and selling the CDO
securities, the witnesses avoided answering the question and
testified that Goldman had put its clients' interests first.
In April 2011, the Subcommittee issued a 750-page
bipartisan staff report summarizing its investigation into the
Goldman case history discussed at the hearing. The report also
offered bipartisan recommendations to address some of the
issues raised. The Subcommittee's work contributed to the
enactment of the Dodd-Frank Act which, among other provisions,
bars banks and certain other financial firms from engaging in
high-risk proprietary trading, prohibits them from engaging in
proprietary trades involving conflicts of interest, and
prohibits sponsors of asset-backed securities from engaging in
conflicts of interest such as betting against the securities
they sponsor.
H. Social Security Disability Fraud: Case Studies in Federal Employees
and Commercial Drivers Licenses (August 4, 2010)
In 2010, the Subcommittee began examining waste, fraud, and
abuse issues associated with Federal disability programs. In
August 2010, the Subcommittee held a hearing and released a GAO
report examining questionable disability payments made by the
Social Security Disability Insurance (DI) program, which
provides benefits to disabled individuals who can no longer
work, and by the Supplemental Security Income (SSI) program,
which in part supports disabled persons and their families
based upon financial need. In 2009, these two programs provided
disabled Americans with financial benefits totaling nearly $160
billion. While the DI overpayment rate was about 1 percent in
FY2008, the SSI overpayment rate reached 10 percent that year,
followed by 8 percent in FY2009.
The hearing focused on a Federal program that allows
disabled individuals to undertake a 9-month trial work period,
without losing their benefits, to see if they can return to
work. Disability recipients are required to notify the Social
Security Administration when they begin employment and if they
earn in excess of program limits. GAO used data matching and
specific case studies to examine the extent to which disability
recipients may be abusing that work program. A data match
examining 4.5 million Federal employees identified about 24,500
who received disability payments while also earning Federal
paychecks; 1,500 of whom were paid more than the program limit
of about $1,000 per month and together received disability
benefits totaling $1.7 million per month. Another data match
examining 600,000 persons with a commercial drivers license as
well as another database together found 62,000 individuals who
received a commercial drivers license after their disability
start date, raising questions about whether they were
improperly receiving disability payments worth millions of
dollars.
The hearing took testimony from two witnesses. Gregory D.
Kutz, Managing Director of Forensic Audits and Special
Investigations at the Government Accountability Office (GAO),
described the GAO investigation, its findings, and
recommendations. Michael J. Astrue, Commissioner of the Social
Security Administration (SSA), described the disability
programs, their complex requirements, and SSA's efforts to
detect, prevent, and punish fraud. After the hearing, GAO and
SSA discussed continued use of the data matches to detect and
prevent Social Security disability fraud committed by employed
persons.
I. Examining the Efficiency, Stability, and Integrity of the U.S.
Capital Markets (Joint hearing with the Subcommittee on
Securities, Insurance, and Investment of the Committee on
Banking, Housing, and Urban Affairs) (December 8, 2010)
As part of its inquiry into the financial crisis and
financial markets, in December 2010, the Subcommittee held a
joint hearing with the Senate Banking Subcommittee on
Securities, Insurance, and Investment to examine stock market
dysfunctions and trading abuses that threaten market stability
and investor confidence. The hearing examined challenges posed
by modern trading practices in which U.S. stocks are now traded
on 13 public exchanges and over 240 less transparent, off-
exchange trading venues. In particular, the hearing examined
how U.S. trading markets have been victims of, and remain
vulnerable to, system-wide problems, and how Federal regulators
do not have the necessary tools to police the markets for
trading abuses.
At the hearing, the two Subcommittees released hearing
exhibits documenting the issues. On May 6, 2010, U.S. capital
markets suffered a systemic collapse when one futures order,
placed at the wrong time and in the wrong way, set off a chain
reaction that affect the futures market, U.S. stock markets,
and dragged the Dow Jones Industrial Average down nearly 700
points, wiping out billions of dollars of value in a few
minutes for no apparent reason. Both the futures and stock
markets recovered in about 20 minutes, but left investors and
traders in shock. After 5 months of study, a joint CFTC-SEC
report concluded that the crash was essentially triggered by
one large sell order placed in a volatile futures market using
an algorithm that set off a cascade of out-of-control
computerized trading in futures, equities, and options. Using
the events of May 6, 2010, as an example, the hearing examined
risks to U.S. capital trading venues and potential tools for
regulators to combat those risks.
In addition, the hearing examined issues related to trading
abuses. Traders today buy and sell stock on and off exchange,
simultaneously trading in multiple venues. Evidence indicates
that orders in some stock venues are being used to affect
prices in other stock venues; and that futures trades on CFTC-
regulated markets are being used to affect prices on SEC-
regulated options and stock markets. Some traders also use
high-speed trading programs to execute their strategies,
sometimes submitting and then cancelling thousands of phony
orders to affect prices. The hearing discussed some of the
tactics that sophisticated traders could use to manipulate
prices, and potential tools for regulators to detect and stop
those abuses.
The hearing took testimony from two panels. The first panel
consisted of SEC Chairman Mary Schapiro and CFTC Chairman Gary
Gensler. The second panel heard from stock traders, an academic
expert, and the self-regulatory authority for stock exchanges.
The panelists were Dr. James J. Angel, Ph.D., CFA, Associate
Professor of Finance at Georgetown University McDonough School
of Business; Thomas Peterffy, CEO of Interactive Brokers; Manoj
Narang, CEO of Tradeworx; and Kevin Cronin, Global Head of
Equity Trading at Invesco Ltd. The final panelist was Stephen
Luparello, Vice Chairman of the Financial Industry Regulatory
Authority (FINRA) which oversees multiple stock exchanges in
the United States.
The witnesses generally agreed that the current market
structure lacked transparency, and that a better system to
identify orders, cancellations, and trading activity was
needed. Mr. Peterffy testified about his concerns that U.S.
financial markets may be susceptible to an intentional,
malicious attack that could create a system-wide failure.
Regulatory coordination was identified as a critical
priority, and implementing a comprehensive ``consolidated audit
trail'' as soon as practically possible was suggested, although
some concerns were raised about the timing and costs of those
efforts. During the hearing, SEC Chairman Schapiro stated that
the SEC's expected time frame was shorter and costs lower for
the consolidated audit trail than originally proposed.
Regulators have also introduced ``circuit breakers'' to stop
market trading in emergency conditions, including events
similar to the May 6, 2010 market crash. Financial regulators,
including the SEC and CFTC, have continued to work to enhance
their abilities to detect and prevent market dysfunctions and
trading abuses.
III. Legislative Activities During the 111th Congress
The Permanent Subcommittee on Investigations does not have
legislative authority, but because its investigations play an
important role in bringing issues to the attention of Congress
and the public, the Subcommittee's work frequently contributes
to the development of legislative initiatives. The
Subcommittee's activity during the 111th Congress was no
exception, with Subcommittee hearings and Members playing
prominent roles in the development of several legislative
initiatives.
A. Credit Card Accountability Responsibility and Disclosure Act (Public
Law 111-24)
On May 22, 2009, partly in response to Subcommittee
hearings on abusive credit card practices, Congress enacted the
Credit Card Accountability Responsibility and Disclosure Act
(Credit CARD Act). This bill included provisions taken from a
2007 bill, S. 1395, the Stop Unfair Practices in Credit Cards
Act, introduced by Senator Levin to put an end to the credit
card abuses examined during the Subcommittee's 2007 hearings.
It also included provisions from a 2009 bill, S. 414,
introduced by Senator Chris Dodd, Chairman of the Committee on
Banking, Housing, and Urban Affairs, and cosponsored by Senator
Levin and others. The Dodd-Levin bill incorporated almost all
of the provisions from the Levin bill, added provisions from an
earlier Dodd bill, and produced the strongest consumer
protections of any credit card reform bill then in Congress.
The Dodd-Levin bill provided the foundation for the final bill
enacted into law.
Among other provisions, the law prohibits interest charges
on any portion of a credit card debt which the cardholder paid
on time during a grace period; prohibits interest rate hikes
for cardholders who pay on time and meet their credit card
obligations; prohibits the charging of over-the-limit fees
unless the cardholder selects a card allowing the credit limit
to be exceeded; limits the number of over-the-limit fees that
can be charged for a single instance of exceeding a credit card
limit; prohibits charging a fee to allow a cardholder to make a
payment on a credit card debt; strengthens protections related
to gift cards; and strengthens protections for underage
cardholders.
B. Foreign Account Tax Compliance Act (FATCA), included as Subtitle A
of Title V of the Hiring Incentives to Restore Employment
(HIRE) Act (Public Law 111-147)
On March 18, 2010, partly in response to Subcommittee
hearings on actions taken by tax haven banks to facilitate U.S.
tax evasion by providing U.S. taxpayers with hidden offshore
bank accounts, Congress enacted the Foreign Account Tax
Compliance Act (FATCA), included as Subtitle A of Title V of
the Hiring Incentives to Restore Employment (HIRE) Act. FATCA
was sponsored by Congressman Charles Rangel and Senator Max
Baucus.
Among other provisions, the law requires foreign financial
institutions to disclose all accounts opened by U.S. persons or
pay a 30 percent tax on any investment income generated by an
institution's U.S. investments. It covers a broad range of
foreign accounts, U.S. persons, and foreign financial
institutions. The law also includes several provisions
addressing offshore tax abuses identified in earlier
Subcommittee hearings, including provisions to prevent misuse
of foreign trusts by tax dodgers, and to stop non-U.S. persons
from using complex financial transactions to dodge payment of
U.S. taxes on U.S. stock dividends.
C. Dodd-Frank Wall Street Reform and Consumer Protection Act (Public
Law 111-203)
On July 21, 2010, partly in response to Subcommittee
hearings on key causes of the financial crisis, Congress
enacted the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act). Prior to the bill's approval
by the Senate, Banking Committee Chairman Chris Dodd stated
that the Subcommittee's final hearing on the financial crisis,
featuring Goldman Sachs, was ``a critical hearing just days
before we brought this bill to the floor which highlighted many
of the problems that have persisted in the financial services
sector.''
The law addresses many of the problems identified in the
Subcommittee investigation into the financial crisis. Among
other provisions, it bars mortgage lenders from issuing stated
income loans that fail to document the borrower's ability to
repay the debt; restricts the use of loans with low teaser
rates and negative amortization; and requires banks to retain a
portion of the credit risk of each mortgage-backed security
they issue. It also dissolves the Office of Thrift Supervision;
and creates a Financial Oversight Stability Council to detect
and prevent systemic risks to the U.S. financial system. In
addition, it strengthens SEC oversight of credit rating
agencies; imposes new restrictions on the credit rating
process; and bans Federal regulations requiring reliance on
credit ratings. The law also sharply limits high-risk
proprietary trading by banks and other systemically significant
firms; and bars them from engaging in conflicts of interest. In
addition, the law addresses a number of problems identified in
earlier Subcommittee hearings on commodity speculation and
financial engineering. Among other provisions, the law mandates
stronger regulation of all commodity markets and related
commodity derivatives, provides stronger tools to restrain
excessive speculation, and mandates the imposition of position
limits in both futures and commodity swaps markets. It also
repeals the statutory ban on regulating swaps and, for the
first time, imposes a set of safeguards and oversight
requirements for regulating all swaps and swap dealers. It also
establishes the Consumer Financial Protection Bureau.
D. Hedge Fund Transparency Act (S. 344)
On January 29, 2009, to address issues related to hedge
funds, some of which control billions of dollars and were
active in mortgage markets during the financial crisis,
Senators Grassley and Levin introduced the Hedge Fund
Transparency Act. This bill sought to clarify the authority of
the SEC to require hedge funds to register with the agency,
disclose basic information about their ownership and
operations, and comply with SEC information requests.
The bill also sought to require hedge funds to comply with
the same anti-money laundering (AML) obligations as other
financial institutions, including by establishing an AML
program and reporting suspicious activity. Prior Subcommittee
hearings had disclosed how some hedge funds bring millions of
offshore dollars into the United States without any AML
screening of the funds. Although the Grassley-Levin bill was
not enacted into law, a year later, Title IV of the Dodd-Frank
Wall Street Reform and Consumer Protection Act mandated hedge
fund registration with the SEC, established an extensive system
of hedge fund requirements, and gave the SEC broad authority to
oversee and regulate these financial institutions. It did not,
however, address the hedge fund AML exemption.
E. Authorizing the Regulation of Swaps Act (S. 961)
On May 4, 2009, to address issues related to the inability
of the SEC and CFTC to regulate swap transactions, including
credit default swaps that played a major role in the financial
crisis, Senators Levin and Collins introduced the Authorizing
the Regulation of Swaps Act. This bill sought to repeal
statutory prohibitions that barred Federal regulators from
overseeing or imposing capital, liquidity, disclosure, or other
safeguards on swap transactions, including credit default
swaps. The bill also sought to give Federal financial
regulators immediate, clear authority to regulate the trillions
of dollars in swap transactions taking place in the United
States. Although this bill was not enacted into law, a year
later, the Dodd-Frank Wall Street Reform and Consumer
Protection Act included a similar repeal and provided broad
authority for Federal financial regulators to oversee swap
transactions, swap dealers, and swap markets.
F. Protect Our Recovery Through Oversight of Proprietary Trading Act
(S. 3098)
On March 10, 2010, to address issues raised in the
Subcommittee's hearing on the role of investment banks in the
financial crisis, Senators Jeff Merkley and Levin, together
with other cosponsors, introduced the Protect Our Recovery
Through Oversight of Proprietary Trading Act (PROP Trading
Act). Among other provisions, this bill sought to prohibit
banks from engaging in proprietary trading; holding certain
interests in, engaging in certain relationships with, or
bailing out hedge funds or other private funds; and engaging in
high-risk activities or material conflicts of interest. It also
sought to restrict systemically significant financial firms
from engaging in similar conduct without adequate capital and
liquidity safeguards. These provisions sought to codify the
``Volcker Rule,'' named after former Federal Reserve Chairman
Paul Volcker who was the original proponent of these types of
prohibitions and restrictions. In addition, the bill sought to
ban conflicts of interest in asset-backed securitizations, such
as when the sponsor of asset-backed securities bets against the
securities it has sponsored. Provisions based upon the Merkley-
Levin bill were included in Sections 619 and 620 of the Dodd-
Frank Wall Street Reform and Consumer Protection Act, which has
since been enacted into law.
G. Prevent Excessive Speculation Act (S. 447)
On Feb. 13, 2009, to address issues related to commodity
speculation examined in past Subcommittee hearings, Senator
Levin introduced the Prevent Excessive Speculation Act. This
bill was similar to a bill with the same name introduced in the
prior Congress by Senators Levin, Harkin, and Bingaman. Its
objectives were to close loopholes in the U.S. commodities laws
that impeded U.S. oversight of U.S. commodity trades on foreign
exchanges and in the over-the-counter (OTC) markets and ensure
that large commodity traders could not use those markets to
avoid CFTC oversight or trading limits. Among other provisions,
the bill sought to require the CFTC, rather than individual
exchanges, to set position limits on the amount of futures
contracts any trader could hold on regulated exchanges to
prevent excessive speculation and price manipulation; close the
so-called ``London loophole'' by giving the CFTC the same
authority to police traders in the United States who trade U.S.
futures contracts on a foreign exchange as it has to police
trades on U.S. exchanges; and require foreign exchanges that
want to install trading terminals in the United States to
impose comparable position limits as the CFTC imposes on
domestic exchanges to prevent excessive speculation and price
manipulation. The bill also sought to strengthen disclosure,
market oversight, and enforcement authority to protect U.S.
consumers, businesses, and the economy from further energy and
other pricing shocks. Although the Levin bill was not enacted
into law, a year later, Title VII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act provided the CFTC with
similar authority, while also extending its authority over all
commodity swaps.
H. Stop Tax Haven Abuse Act (S. 506)
On March 2, 2009, to address a myriad of tax abuses
examined in past Subcommittee hearings, Senators Levin, Sheldon
Whitehouse, McCaskill, and Bill Nelson from Florida introduced
the Stop Tax Haven Abuse Act. This legislation was based upon 6
years of Subcommittee investigations into offshore tax havens,
abusive tax shelters, and the professionals who design, market,
and implement tax dodges. The Subcommittee has estimated that
the loss to the Treasury from offshore tax abuses alone
approaches $100 billion per year.
Among other measures, the bill would establish rebuttable
presumptions in tax enforcement cases that offshore companies
and trusts are controlled by the U.S. persons who send or
receive assets from them; authorize Treasury to take special
measures against foreign jurisdictions and financial
institutions that impede U.S. tax enforcement; and strengthen
penalties on tax shelter promoters. It would also close
offshore trust loopholes; require U.S. financial institutions
to report certain offshore activities to the IRS; and require
hedge funds and company formation agents to understand the
identity of their offshore clients and report suspicious
activity to U.S. law enforcement. In addition, it would prevent
companies that are managed and controlled from the United
States from claiming foreign status for tax purposes; close a
loophole that enables non-U.S. persons to dodge payments of
U.S. taxes on U.S. stock dividends; and ban tax patents. A
companion bill was introduced in the House (H.R. 1265). While
the bills were not enacted into law, a year later, the Foreign
Account Tax Compliance Act (FATCA) established an extensive new
system to require foreign financial institutions to disclose
all offshore accounts opened by U.S. persons. In addition,
FATCA enacted into law provisions similar to those in the Stop
Tax Havens Abuse Act to prevent misuse of foreign trusts by tax
dodgers, and to stop non-U.S. persons from using complex
financial transactions to dodge payment of U.S. taxes on U.S.
stock dividends.
I. Ending Excessive Corporate Deductions for Stock Options Act (S.
1491)
On July 22, 2009, to close a tax loophole examined in a
2007 Subcommittee hearing showing that, each year, corporations
claim tens of billions of dollars in stock option tax
deductions in excess of the stock option expenses shown on
their books, Senators Levin and McCain introduced S. 1491, the
Ending Excessive Corporate Deductions for Stock Options Act.
IRS data shows that, each year from 2005 to 2009,
corporations as a whole took U.S. tax deductions for stock
options that were billions of dollars greater than the expenses
shown on their financial statements. The total amount of excess
tax deductions ranged from $12 billion to $61 billion per year.
The IRS data also showed that a relatively small number of
corporations took the majority of those excess deductions: 250
out of the millions of corporations that filed corporate tax
returns each year.
The bill would amend the tax code to require that corporate
tax deductions for stock option compensation not exceed the
stock option expenses shown on the corporate books. It would
also allow corporations to deduct stock option compensation in
the same year it is recorded on the company books, without
waiting for the options to be exercised; and ensure research
tax credits use the same stock option deduction. The bill would
also subject stock option pay for top corporate executives to
the existing $1 million cap on the tax deductions that publicly
traded corporations can claim for executive pay, in order to
prevent taxpayer subsidies of outsized executive compensation.
The bill was referred to the Finance Committee which took no
further action.
J. Incorporation Transparency and Law Enforcement Assistance Act (S.
569)
On March 11, 2009, Senators Levin, Grassley, and McCaskill
introduced S. 569, the Incorporation Transparency and Law
Enforcement Assistance Act, to protect the United States from
U.S. corporations with hidden owners being misused to commit
crimes, including terrorism, drug trafficking, money
laundering, tax evasion, financial fraud, and corruption. The
bill is based upon past Subcommittee investigations which found
that the 50 States establish nearly two million U.S. companies
each year without knowing who is behind them, the lack of
ownership information requirements invite wrongdoers to
incorporate in the United States, and that same lack of
ownership information impedes U.S. law enforcement efforts.
Among other provisions, the bill would require the States
to obtain beneficial ownership information for the corporations
or limited liability companies formed within their borders;
require States to provide that information to law enforcement
in response to a subpoena or summons; and impose civil and
criminal penalties for persons who knowingly submit false
ownership information. The bill would also exempt all publicly
traded corporations, since they already provide ownership
information to the SEC. The bill was referred to the Committee
on Homeland Security and Governmental Affairs which took no
further action.
IV. Reports
In connection with its investigations, the Subcommittee
frequently issues lengthy and detailed reports. During the
111th Congress, the Subcommittee released two such reports,
listed below, both of which have been partly described in
connection with Subcommittee hearings.
A. Excessive Speculation in the Wheat Market, July 21, 2009 (Report
prepared by the Majority and Minority staffs, and printed in
the record of the related Subcommittee hearing on July 21,
2009.)
On June 24, 2009, Subcommittee Chairman Levin and then
Acting Ranking Minority Member Coburn released a 261-page
bipartisan staff report entitled, ``Excessive Speculation in
the Wheat Market.'' This report, the result of a year-long
Subcommittee investigation, examined how commodity index
traders, in the aggregate, made such large purchases on the
Chicago wheat futures market that they pushed up futures
prices, disrupted the normal relationship between futures
prices and cash prices for wheat, and caused farmers, grain
elevators, grain processors, consumers, and others to
experience significant unwarranted costs and price risks.
The report's conclusions were based upon a review of
millions of trading records from the Chicago Mercantile
Exchange (CME), Kansas City Exchange, Minneapolis Grain
Exchange, the Commodity Futures Trading Commission (CFTC), and
others, which the Subcommittee used to track and analyze wheat
prices. The data showed that commodity index traders--traders
who are not producers or consumers of wheat, but buy wheat
futures to help offset their financial exposure from selling
commodity index instruments to third parties--injected billions
of dollars, in the aggregate, into the wheat futures market
over the last 6 years. Commodity index traders increased their
holdings from a total of about 30,000 wheat contracts in 2004,
up to 220,000 contracts in 2008. That sevenfold increase
dramatically enlarged the market share of commodity index
trading so that, in each year since 2006, commodity index
traders held between 35 percent and 50 percent of all
outstanding wheat futures contracts on the Chicago exchange.
The report determined that there was substantial and
persuasive evidence that, by purchasing so many futures
contracts, commodity index traders, in the aggregate, pushed up
futures prices, created an unprecedented, large, and persistent
gap between futures and cash wheat prices in the Chicago
market, and impeded the two prices from converging at contract
expiration. The report presented evidence, for example, that
the average gap between futures and cash prices on the
expiration of futures contracts on the Chicago exchange, called
the ``basis,'' grew from about 13 cents per bushel in 2005, to
34 cents in 2006, to 60 cents in 2007, to $1.53 in 2008, a
tenfold increase in 4 years. The Levin-Coburn report found that
the large number of wheat futures contracts purchased by index
traders on the Chicago exchange created additional demand for
those contracts and was a major contributing factor in the
increasing difference between wheat futures prices and cash
prices from 2006 to 2008.
The report also determined that these unwarranted price
changes imposed an undue burden on wheat farmers, grain
elevators, grain merchants, grain processors, consumers, and
others by making it difficult to use the futures market to
protect against price changes and by generating significant
unanticipated costs. Those costs included higher margin calls
due to higher futures prices; failed hedges; and disruption of
normal pricing patterns and relationships. The Levin-Coburn
report concluded that the large number of wheat futures
contracts purchased and held by commodity index traders on the
Chicago futures exchange over the last 5 years constituted
excessive speculation.
The Commodity Exchange Act requires the key Federal
commodities regulator, the CFTC, to prevent excessive
speculation by imposing position limits on commodity traders.
But the report found that, in the wheat market, instead of
restricting traders to no more than 6,500 wheat contracts at a
time, its standard position limit for wheat, the CFTC had
allowed some commodity index traders to hold up to 10,000,
26,000, or even 53,000 contracts at a time. The report also
disclosed that, at the time of the inquiry, six commodity index
traders were authorized to hold a total of up to 130,000 wheat
contracts at a time, instead of up to 39,000 contracts, or one-
third less if the standard position limits had been applied.
The Levin-Coburn report concluded that the CFTC actions to
waive position limits for commodity index traders facilitated
excessive speculation in the Chicago wheat futures market, and
that waiving position limits for those index traders was
inconsistent with the CFTC's statutory mandate to maintain
position limits to prevent excessive speculation.
The report also examined the impact of inflated futures
prices on Federal crop insurance, which is backed with taxpayer
dollars. The report explained that the Federal crop insurance
program uses settlement prices from certain futures contracts
to determine how much money should be paid to a farmer who has
purchased coverage and to set insurance premiums. Futures
prices that are higher than justified by supply and demand
fundamentals in the cash market increase the cost of purchasing
crop insurance for farmers as well as for Federal taxpayers who
share in the cost. The report explained that the increasing
lack of predictability as to the difference between the futures
price and the cash price for wheat--the ``basis''--also
undermines the reliability and effectiveness of the formulas
used to calculate insurance payouts. The report concluded that,
because Federal crop insurance uses futures prices in its
calculations, inflated futures prices can inflate insurance
premiums, whose cost is shared by farmers and taxpayers, and
impair the accuracy of the formulas used to determine the
payouts to farmers, resulting in either overpayments or
underpayments.
To stop excessive speculation in the wheat market, the
Levin-Coburn report recommended that the CFTC phase out
existing waivers that permitted commodity index traders to
exceed the standard limit of 6,500 wheat contracts per trader
at any one time, and apply the standard position limit to all
commodity index traders in the wheat market. If pricing
problems persisted on the Chicago exchange, the report
recommended lowering the position limit further, such as to the
5,000 contract limit that applied to wheat traders until 2005.
In addition, the report recommended that the CFTC undertake an
analysis of the impact of commodity index trading on other
commodities, including crude oil, to determine if excessive
speculation was distorting prices, and whether position limit
waivers for index traders should be phased out to eliminate
excessive speculation. The report also urged the CFTC to
develop reliable data on the extent to which commodity index
traders purchase non-agricultural commodity futures contracts,
especially for crude oil and other energy commodities, so that
data could be analyzed to detect and prevent excessive
speculation.
This report was the fifth in a series released by the
Subcommittee on commodity pricing issues since 2003. The first
four focused on energy prices, including for gasoline, crude
oil, and natural gas. This report was the first by the
Subcommittee to examine agricultural prices.
B. Keeping Foreign Corruption Out of the United States: Four Case
Histories, February 4, 2010 (Report prepared by the Majority
and Minority staffs, and released in conjunction with and
reprinted in the record of a related Subcommittee hearing on
February 4, 2010.)
On February 4, 2010, Subcommittee Chairman Levin and
Ranking Minority Member Coburn released a 386-page bipartisan
staff report entitled, ``Keeping Foreign Corruption Out of the
United States: Four Case Histories.'' The report examined how
politically powerful foreign officials, their relatives, and
close associates--referred to in international agreements as
``Politically Exposed Persons'' (PEPs)--used the services of
U.S. professionals and financial institutions to bring large
amounts of suspect funds into the United States to advance
their interests. It is the latest in a series of Subcommittee
hearings and reports examining how foreign corruption affects
the United States.
During the course of its investigation, the Subcommittee
staff conducted over 100 interviews, issued over 50 subpoenas,
and reviewed millions of pages of documents. Using four case
histories, the report exposed how some PEPs used U.S. lawyers,
real estate and escrow agents, lobbyists, bankers, and even
university officials, to circumvent U.S. anti-money laundering
(AML) and anti-corruption safeguards. It also identified some
of the legal gaps, poor due diligence practices, and inadequate
PEP controls that, at times, made these tactics possible.
Obiang Case History. The first case history focused on
Teodoro Obiang, son of the President of Equatorial Guinea (EG)
and an EG cabinet minister who, from 2004 to 2008, used U.S.
professionals and financial institutions to move over $110
million in suspect funds into the United States. At the time of
the report, Mr. Obiang was the subject of an ongoing U.S.
criminal investigation, had been identified in corruption
complaints filed in France, and was a focus of a 2004
Subcommittee hearing showing how Riggs Bank facilitated EG
officials in opening accounts and engaging in suspect
transactions.
The report detailed how two U.S. lawyers, Michael Berger
and George Nagler, helped Mr. Obiang circumvent U.S. AML and
PEP controls at U.S. financial institutions by allowing him to
use attorney-client, law office, and shell company accounts as
conduits for his funds and without alerting the bank to his use
of those accounts. If a bank later uncovered Mr. Obiang's use
of an account and closed it, the lawyers helped him open
another. The lawyers also formed five U.S. shell companies for
Mr. Obiang, with names that included Beautiful Vision,
Unlimited Horizon, and Sweetwater Malibu. In addition, two U.S.
real estate agents, Neal Baddin and John Kerrigan, helped Mr.
Obiang buy and sell high-end real estate in California
including the purchase of a $30 million Malibu residence with
funds wire transferred from Equatorial Guinea. Mr. Obiang also
used a U.S. escrow agent to purchase a $38.5 million U.S.-built
Gulfstream jet. When one escrow agent, McAfee and Taft, as a
voluntary AML precaution, refused to proceed without
information about the source of the funds for the purchase,
another escrow agent, International Airline Title Services
Inc., stepped in and completed the transaction with no
questions asked. U.S. law currently exempts attorneys, real
estate agents, and escrow agents from the PATRIOT Act's
requirement to establish AML programs. Mr. Obiang also brought
large amounts of suspect funds into the United States by taking
advantage of U.S. wire transfer systems that were not
programmed to block wire transfers bearing his name.
Bongo Case History. The second case history focused on Omar
Bongo, President of Gabon for 41 years until his death in June
2009. President Omar Bongo was a focus of a 1999 Subcommittee
hearing showing how he used offshore shell companies to move
over $100 million in suspect funds through accounts at Citibank
Private Bank. He was also mentioned in connection with the ELF
oil scandal and recent corruption complaints filed in France.
The case history focused on several examples of how President
Bongo used lobbyists and bank accounts belonging to family
members to bring suspect funds into the United States.
The report detailed how, from 2003 through at least 2007,
Mr. Bongo employed a U.S. lobbyist, Jeffrey Birrell, to
purchase six U.S.-built armored vehicles and obtain U.S.
Government permission to buy six U.S.-built C-130 military
cargo aircraft from Saudi Arabia to support the Bongo regime.
As part of the armored car and C-130 transactions, over $18
million was wire transferred from Gabon into U.S. corporate
bank accounts controlled by Mr. Birrell. Mr. Birrell received
the funds primarily from President Omar Bongo and an entity
called Ayira. He later transferred $9.2 million of the funds
provided by Ayira to a foreign account held in the name of
President Omar Bongo in Malta. He also wire transferred over
$4.2 million to foreign bank accounts opened in the name of a
senior Bongo adviser, and over $1 million in payments to
foreign bank accounts held in the name of various
``consultants.'' Mr. Birrell's corporate accounts served as a
conduit for those Bongo funds.
In addition, President Bongo provided large amounts of cash
to his daughter, Yamilee Bongo-Astier, who deposited the cash
into bank accounts and safe deposit boxes at U.S. financial
institutions in New York from 2000 to 2007. Ms. Bongo-Astier
made multiple large dollar deposits into her accounts at banks
that were unaware of her PEP status, but knew she was an
unemployed student. One bank closed her account after receiving
an $183,500 wire transfer from Gabon; another did so after
discovering she had $1 million in $100 bills in her safe
deposit box, which she said her father had brought into the
United States using his diplomatic status and without declaring
the cash to U.S. authorities. Another member of the Bongo
family, Inge Lynn Collins Bongo, was the wife of Ali Bongo, the
current President of Gabon and its former Minister of Defense.
In 2000, she formed a U.S. trust, the Collins Revocable Trust,
and opened accounts in the name of that Trust at banks in
California. For 3 years, from 2000 to 2003, Mrs. Bongo accepted
multiple large offshore wire transfers into the Trust accounts
and used the funds to support a lavish lifestyle and move money
among a network of bank and securities accounts benefitting her
and her husband. Due to inadequate PEP lists prepared by third
party vendors, the financial institutions administering the
Bongo accounts were, more often than not, unaware of their
clients' PEP status and did not subject their accounts to
enhanced monitoring.
Douglas-Abubakar Case History. The third case history
focused on Jennifer Douglas, a U.S. citizen and fourth wife of
Atiku Abubakar, former Vice President and former candidate for
President of Nigeria. The report detailed how, from 2000 to
2008, Ms. Douglas helped her husband bring over $40 million in
suspect funds into the United States through wire transfers
sent by offshore corporations to U.S. bank accounts. In a 2008
civil complaint, the SEC alleged that Ms. Douglas received over
$2 million in bribe payments in 2001 and 2002, from Siemens AG,
a major German corporation. While Ms. Douglas denied
wrongdoing, Siemens had already pled guilty to U.S. criminal
charges, settled civil charges related to bribery, and told the
Subcommittee that it had sent the payments to one of her U.S.
accounts. In 2007, Mr. Abubakar was the subject of corruption
allegations in Nigeria related to the Petroleum Technology
Development Fund.
Of the $40 million in suspect funds, $25 million was wire
transferred by offshore corporations into more than 30 U.S.
bank accounts opened by Ms. Douglas, primarily by Guernsey
Trust Company Nigeria Ltd., LetsGo Ltd. Inc., and Sima Holding
Ltd. The U.S. banks maintaining those accounts were, at times,
unaware of her PEP status, and they allowed multiple, large
offshore wire transfers into her accounts. As each bank began
to question the offshore wire transfers, Ms. Douglas indicated
that all of the funds came from her husband and professed
little familiarity with the offshore corporations actually
sending her money. When one bank closed her account due to the
offshore wire transfers, her lawyer helped convince other banks
to provide new accounts. In addition, two of the offshore
corporations wire transferred about $14 million over 5 years to
American University in Washington, DC, to pay for consulting
services related to the development of a Nigerian university
founded by Mr. Abubakar. American University accepted the wire
transfers without asking about the identity of the offshore
corporations or the source of their funds, because under
current law, the University had no legal obligation to inquire.
Angola Case History. The fourth and final case history
examined three Angolan PEP accounts, involving an Angolan arms
dealer, an Angolan government official, and a small Angolan
private bank that catered to PEP clients, to show how the
accountholders gained access to the U.S. financial system and
attempted to exploit weak U.S. AML and PEP safeguards.
First, the report examined Pierre Falcone, a notorious arms
dealer who supplied weapons during the Angolan civil war in
violation of a U.S. arms embargo, was a close associate of
Angolan President Jose Eduardo Dos Santos, and was the target
of criminal investigations resulting in his imprisonment in
France. The report detailed how he used personal, family, and
U.S. shell company accounts at Bank of America in Arizona to
bring millions of dollars in suspect funds into the United
States and move those funds among a worldwide network of
accounts. Bank of America maintained nearly 30 accounts for the
Falcone family from 1989 to 2007, did not treat Mr. Falcone as
a PEP, and did not consider his accounts to be high risk, even
after learning in 2005 that he was an arms dealer and had been
imprisoned in the past. In 2007, after receiving a Subcommittee
inquiry about the Falcone accounts, the bank conducted a new
due diligence review, closed the accounts, and expressed regret
at providing Mr. Falcone with banking services for years.
Next, the report examined Dr. Aguinaldo Jaime, a senior
Angolan government official, who was head of Banco Nacional de
Angola (BNA), the Angolan Central Bank, when he attempted, on
two occasions in 2002, to transfer $50 million in government
funds to a private account in the United States, only to have
the transfers reversed by the U.S. financial institutions
involved. Dr. Jaime invoked his authority as BNA Governor to
wire transfer the funds to a private bank account in California
during the first attempt and, during the second attempt, to
purchase $50 million in U.S. Treasury bills for transfer to a
private securities account in California. Both transfers were
initially allowed, then reversed by bank or securities firm
personnel who became suspicious of the transactions. Partly as
a result of those transfers and the corruption concerns they
raised, in 2003, Citibank closed not only the accounts it had
maintained for BNA, but all other Citibank accounts for Angolan
government entities, and closed its office in Angola. The
report observed that, in contrast, HSBC continued to provide
banking services to BNA in the United States and elsewhere, and
may be providing the Central Bank with offshore accounts in the
Bahamas.
Finally, the report examined Banco Africano de
Investimentos (BAI), a $7 billion private Angolan bank whose
largest shareholder was Sonangol, the Angolan State-owned oil
company. The report detailed how BAI offered banking services
to Sonangol, Angolans in the oil and diamond industries, and
Angolan government officials. It noted that, over the last 10
years, BAI gained entry to the U.S. financial system through
accounts at HSBC in New York, using HSBC wire transfer
services, foreign currency exchange, and U.S. dollar credit
cards for BAI clients, despite providing troubling answers
about its ownership and failing to provide a copy of its AML
procedures to HSBC after repeated requests. Despite the
presence of PEPs in BAI's management and clientele, HSBC
decided against designating BAI as a ``Special Category of
Client'' requiring additional oversight until November 2008,
years after the account was first opened.
The Levin-Coburn report contained a number of
recommendations to stop PEPs from misusing U.S. professionals
and financial institutions to bring illicit funds into the
United States. Among other measures, the report urged Congress
to enact a law and the U.S. Treasury Department to issue rules
implementing the PEP controls identified in a World Bank study,
including by requiring banks to use reliable PEP databases to
screen clients, use account beneficial ownership forms that ask
for PEP information, obtain financial declaration forms filed
by PEP clients with their governments, and conduct annual
reviews of PEP account activity to detect and stop suspicious
transactions. The report also recommended that Treasury repeal
all of the exemptions it granted in 2002, from the PATRIOT Act
requirement to establish AML programs, including for real
estate and escrow agents. The report also recommended that
Treasury require U.S. financial institutions to institute
stronger controls on attorney-client and law office accounts to
prevent circumvention of U.S. AML and PEP controls. In
addition, the Levin-Coburn report recommended that Congress
enact legislation requiring persons forming U.S. corporations
to disclose the names of the beneficial owners of those U.S.
corporations. Finally, the report recommended strengthening
U.S. immigration and visa provisions to keep foreign corruption
out of the United States.
V. GAO Requested and Sponsored Reports
In connection with its investigations, the Subcommittee
makes extensive use of the resources and expertise of the
Government Accountability Office (GAO), the Offices of
Inspectors General (OIGs) at various Federal agencies, and
other entities. During the 111th Congress, the Subcommittee
requested a number of reports and studies on issues of
importance to Congress and to U.S. consumers. Most of these
reports have already been described in connection with
Subcommittee hearings. Several additional reports that were of
particular interest, and that were not covered by Subcommittee
hearings, are the following:
A. Bank Secrecy Act: Federal Agencies Should Take Action to Further
Improve Coordination and Information-Sharing Efforts (GAO-09-
227), February 12, 2009
Since 1999, the Subcommittee has conducted multiple
investigations into money laundering vulnerabilities affecting
the United States and worked to strengthen U.S. anti-money
laundering (AML) laws. In 2009, in response to a bipartisan
request from Subcommittee Chairman Levin and Ranking Minority
Member Coleman, later replaced by Senator Coburn, GAO issued a
report providing an overview of Federal AML programs designed
to protect the United States from terrorists, criminals, and
other wrongdoers. The GAO report disclosed that, while AML
programs at U.S. banks are well developed, AML programs at
securities firms, commodity traders, and money service
businesses are only partially in place, while AML programs at
hedge funds, private equity funds, and other covered businesses
have yet to be mandated or implemented.
The Federal legal framework for combating money laundering
began with the Bank Secrecy Act of 1970, has been repeatedly
amended over the years, and was substantially strengthened by
the USA PATRIOT Act of 2001 (Patriot Act). The PATRIOT Act, for
the first time, required AML safeguards to be required for
business sectors other than banking. The lead Federal agency
charged with administering AML requirements is the Financial
Crimes Enforcement Network (FinCEN), a bureau of the U.S.
Department of the Treasury. FinCEN works with and relies on
multiple Federal and State agencies to develop AML regulations,
oversee AML compliance, and take AML enforcement actions. GAO
was asked to describe how AML responsibilities were
distributed; describe how FinCEN and other agencies were
implementing their AML responsibilities; and evaluate their
coordination efforts. GAO concluded that, while Federal
agencies had enhanced their AML compliance programs over the
years, more work was needed to strengthen coordination and
information-sharing efforts.
The GAO report explained that FinCEN, with a staff of about
300 and an annual budget of about $73 million, provided general
oversight of U.S. AML programs and was charged by Treasury with
issuing AML regulations and enforcing compliance. The report
also explained that FinCEN had delegated primary AML
regulatory, examination, and enforcement authority to other
Federal agencies. For example, FinCEN had delegated AML
oversight of the banking sector to the five Federal banking
agencies, the Federal Reserve System, Federal Deposit Insurance
Corporation (FDIC), Office of the Comptroller of the Currency
(OCC), Office of Thrift Supervision (OTS), and National Credit
Union Administration (NCUA). FinCEN delegated AML oversight of
securities firms to the Securities and Exchange Commission
(SEC) and of commodity firms to the Commodity Futures Trading
Commission (CFTC), both which, in turn, delegated day-to-day
oversight to certain self-regulatory organizations (SROs), such
as the Financial Industry Regulatory Agency (FINRA), National
Futures Association, and Chicago Mercantile Exchange. FinCEN
had delegated AML oversight of all other types of covered
financial institutions, including money service businesses,
casinos, and insurance companies--sometimes referred to as
nonbank financial institutions or NBFIs--to the Internal
Revenue Service (IRS). Many of these agencies also had
independent statutory authority to impose AML requirements.
GAO determined that FinCEN worked with each of the agencies
to develop appropriate regulations, examination standards, and
enforcement actions to ensure compliance with Federal AML laws.
Key AML obligations include implementing written AML policies
and procedures, appointing an AML compliance officer, providing
AML training to personnel, and auditing AML compliance. Most
covered institutions are also required to file suspicious
activity reports with FinCEN. GAO determined that FinCEN also
retained enforcement authority for AML violations, and could
take enforcement actions independently or concurrently with the
functional regulators.
The GAO report identified significant discrepancies among
the agencies in the number of examiners with AML expertise and
the frequency of AML examinations. The report showed that
banking institutions underwent a higher rate of AML
examinations compared to other covered firms, including broker-
dealers, mutual funds, and commodity firms. The report also
showed that the number of AML examinations performed by Federal
agencies had declined in recent years, with a corresponding
decrease in the number of AML violations identified and in the
number of enforcement actions taken. With respect to the IRS,
the GAO report explained that the IRS has no independent AML
enforcement authority and referred its cases to FinCEN for
enforcement actions. The GAO report found that, from 2006 to
2008, the IRS had referred about 50 cases to FinCEN which took
an average of 485 days--more than 1 year--to review the
referrals. The GAO report did not specify how any enforcement
actions were actually taken by FinCEN on the IRS-referred
cases. GAO reported that FinCEN and the IRS had accepted a GAO
recommendation to strengthen FinCEN procedures for handling
enforcement referrals.
The GAO report also stated that, while banking and IRS
examiners used AML examination materials available to the
public, securities and commodity examiners use examination
materials which were not publicly available and could not be
discussed in a public setting. The GAO report did not provide
any rationale for keeping the manuals secret and pointed out
the benefits of Federal regulators developing and applying
consistent AML examination standards across business sectors.
GAO also noted that while FinCEN and the IRS had issued an
examination manual for money services businesses, no such
manual existed for other types of NBFIs with AML obligations.
GAO also found that the IRS had not fully coordinated its
examinations of money service businesses with the States,
potentially missing opportunities to reduce duplication and
leverage resources.
The GAO report contained a number of criticisms of FinCEN.
GAO noted, for example, that FinCEN took years to conclude AML
memorandums of understanding with the key Federal agencies
charged with AML oversight. It also took over a year to review
cases referred by the IRS for enforcement actions. The report
noted that FinCEN took until 2006, to replace a paper-based
system for tracking case referrals with an electronic case
management system. GAO also noted that, despite a 2001 PATRIOT
Act requirement for all covered businesses to institute AML
programs to prevent terrorist financing and money laundering,
FinCEN had yet to issue regulations requiring several of these
firms to set up AML programs, including hedge funds and private
equity funds that funnel billions of dollars in offshore funds
into the United States. In 2002, FinCEN proposed a rule to
cover those investment firms, but never finalized it. The GAO
report also highlighted and recommended reversing an ongoing
FinCEN policy that denied direct access to its database of
suspicious activity and currency reports for SEC and CFTC self-
regulatory organizations and some State regulators.
GAO also recommended that all of the Federal and State
agencies involved with AML oversight establish a nonpublic
forum in which they could discuss and strengthen coordination
of regulatory, examination, and enforcement issues.
B. Securities and Exchange Commission: Oversight of U.S. Equities
Market Clearing Agencies (GAO-09-318R), February 26, 2009
In response to a joint request by Subcommittee Chairman
Levin and Finance Committee Ranking Minority Member Grassley,
GAO released a report analyzing the clearing and settlement
process for U.S. equities markets, with a particular focus on
transactions in which one party fails to deliver the security
promised. Failures to deliver (FTDs) had become a focus of
market participants complaining of manipulative short selling.
The report observed that the prompt, accurate, and
efficient settlement of trades is essential to the smooth
functioning of any equities market. When investors agree to
trade an equity security, the purchaser promises to deliver
cash to the seller, and the seller promises to deliver the
security to the purchaser. The process by which the seller
receives payment and the buyer receives the security is known
as the clearance and settlement process and is carried out by a
clearing agency. The report noted that, in U.S. equities
markets, a centralized clearance and settlement system had been
established to reduce risks and increase market efficiencies.
Trades were typically cleared and settled through self-
regulatory organizations (SRO) that register with and are
subject to oversight by the Securities and Exchange Commission
(SEC). GAO reported that, in the United States, virtually all
equity securities trades were cleared and settled through the
National Securities Clearing Corporation (NSCC) or the
Depository Trust Company (DTC), both of which were clearing
agency subsidiaries of the Depository Trust and Clearing
Corporation (DTCC).
The GAO report provided a detailed description of the NSCC
and DTC processes for clearing and settling equities trades, as
well as the SEC's oversight efforts through its examination
program for clearing agencies. The report included an
explanation of how the NSCC and DTC systems handled FTDs.
GAO explained that the U.S. clearance and settlement
process for equity securities operated on a standard 3-day
settlement cycle. The GAO report stated that, according to
DTCC, 99.9 percent of daily equities transactions by dollar
value cleared and settled within the standard 3-day settlement
period. In the remaining transactions, the seller failed to
deliver the securities on time, resulting in an FTD. GAO
reported that, as of December 31, 2007, the value of aggregated
FTDs was $7.5 billion.
GAO reported that, due to the volume and value of trading
in U.S. equity markets, NSCC netted trades and payments among
its participants using a Continuous Net Settlement System. GAO
explained that this system was a book entry accounting system,
whereby each NSCC participant's daily purchases and sales of
securities, based on trade date, were automatically netted into
one long position (right to receive) or one short position
(obligation to deliver) for each security purchased or sold.
The participant's corresponding payment obligations were,
similarly, netted into one obligation to pay or one obligation
to receive money.
GAO explained that, for each participant with a short
position on settlement date, NSCC instructed the securities
depository designated by the participant, typically DTC, to
deliver securities from the participant's account at the
depository to the NSCC's account. NSCC then instructed the
depository to deliver those securities from NSCC's account to
participants with net long positions in the security. If a
participant failed to deliver the total number of securities
that they owed NSCC on a particular settlement date, NSCC might
be unable to meet its delivery obligations, resulting in FTDs
for participants with net long positions.
GAO reported that, according to the SEC, many FTDs were
caused by processing delays or mechanical errors, and were
typically resolved within a few days. GAO observed that FTDs
could also result from naked short selling. While not defined
in the Federal securities laws, GAO explained that, according
to the SEC, ``naked'' short selling generally referred to
selling a security without having purchased or borrowed it to
make delivery, potentially resulting in a FTD. The GAO report
explained that FTDs may deprive shareholders of the benefits of
ownership, such as voting and lending. In addition, GAO
reported that, in recent years, investors, publicly traded
companies, and others had expressed concerns that FTDs may be
indicative of an illegal trading strategy known as manipulative
naked short selling, in which short sellers attempt to profit
by inundating the market with sales of a security to
artificially drive down its stock price. GAO reported that, to
facilitate and monitor industry compliance with rules and
emergency orders to curb FTDs and potential manipulative naked
short selling, NSCC electronically submitted FTD data on a
daily basis to the SEC and U.S. stock exchanges.
The GAO report also explained that, to minimize FTDs, if a
participant's account did not have the required amount of
securities to be delivered, NSCC used an automated Stock Borrow
Program to borrow the shares to meet as many of the
participant's delivery obligations as possible. Under this
program, NSCC participants could instruct NSCC on the specific
securities from their DTC account that were available for
borrowing to cover NSCC's Continuous Net Settlement System
delivery shortfalls. Any shares that NSCC borrowed were debited
from the lending participant's DTC account, delivered to NSCC,
and, subsequently, delivered to a NSCC participant with a net
short position. NSCC created a right to receive a (net long)
position for the lender in the Continuous Net Settlement System
to show that it was owed securities. Until the securities were
returned, the lending participant no longer had ownership
rights in them and, therefore, could not re-lend them. The GAO
report also explained that any delivery made using the Stock
Borrow Program did not relieve the NSCC participant that failed
to deliver of its obligation to deliver the relevant securities
to the NSCC.
In addition to describing the clearance and settlement
process in U.S. stock markets, the GAO report reviewed the
examination program constructed by the SEC for clearing
agencies. GAO explained that the SEC Office of Compliance
Inspections and Examinations (OCIE) administered the SEC's
nationwide examination and inspection program, including for
clearing agencies. GAO determined that the OCIE conducted both
regular cycle and special examinations for clearing agencies.
GAO reported that the largest clearing agencies, including NSCC
and DTC, were examined every other year, while smaller clearing
agencies were examined on a 2- or 3-year cycle, depending on
OCIE resources. GAO explained that these examinations included
reviewing the clearing agency's process for handling FTDs.
C. Regulation SHO: Recent Actions Appear to Have Initially Reduced
Failures to Deliver, but More Industry Guidance Is Needed (GAO-
09-483), May 12, 2009
In response to a joint request by Subcommittee Chairman
Levin, Finance Committee Ranking Minority Member Grassley, and
Judiciary Subcommittee on Crime and Drugs Chairman Specter, GAO
released a report analyzing recent actions taken by the
Securities and Exchange Commission (SEC) to curb failures to
deliver securities and manipulative naked short selling.
A ``short sale'' occurs when a person sells a borrowed
stock. A ``naked'' short sale refers to selling short without
having actually borrowed the securities needed to make
delivery. After making the sale, the seller then ``covers'' the
position by actually buying the stock and returning it to the
lender. If the stock price falls in value in the interim, then
the short seller profits by selling the stock for more than it
cost to repurchase the shares, in other words by selling high
and then buying low. The GAO report explained, ``In general,
short selling is used to profit from an expected downward price
movement, provide liquidity in response to unanticipated
demand, or hedge the risk of a long position . . . in the same
or related security.''
Because short sellers may profit on the decline in a
company's stock price, they may seek ways to drive down the
stock prices of the companies in which they invest. In
addition, while most short selling is legal, some is not. The
GAO report observed that ``short selling also may be used to
illegally manipulate the prices of securities,'' by depressing
the price of a security to induce others to buy or sell it.
Naked short selling is of particular concern since it may be
used to create an artificial downward pressure on a stock price
by flooding the market with sales.
Failures to deliver (FTD) occur when the seller of a stock
does not deliver the stock to the purchaser within the required
settlement period, which is typically 3 days. Although FTDs can
be caused by mechanical errors and processing delays, they also
result from naked short selling. The GAO report observed that
FTDs ``may undermine the confidence of investors, making them
reluctant to commit capital to an issuer that they believe to
be subject to such manipulative conduct.''
In 2004, the SEC issued Regulation SHO to, among other
things, address large and persistent FTDs and curb the
potential for manipulative naked short selling in equity
securities. In July 2008, in the midst of the financial crisis,
the SEC issued an emergency order that restricted short sales
in the publicly traded securities of 19 large financial
institutions, unless the seller had borrowed, or arranged to
borrow, the security prior to the sale, and required delivery
of the security on the settlement date. Almost immediately, the
order was amended to exempt market makers engaged in market
making transactions and the sales of restricted securities.
This ``pre-borrow'' requirement expired in August 2008. In
September 2008, the SEC issued another emergency order that,
among other measures, temporarily increased delivery
requirements on all short sales, implemented an anti-fraud rule
regarding short sales, and temporarily banned all short sales
involving approximately 800 financial institutions. The
enhanced delivery requirement in this temporary order was
scheduled to expire on July 31, 2009.
GAO was asked to provide an overview of Regulation SHO and
related SEC actions; regulators' and market participants' views
on the effectiveness of the rule; and regulators' efforts to
enforce the rule. As part of its inquiry, GAO analyzed FTD data
from January 2005 through December 2008. The GAO report found
that the SEC's actions in September 2008, had resulted in a
significant decrease in the number of securities with large
FTDs. GAO also found that the staff of the SEC and Financial
Industry Regulatory Authority (FINRA) agreed that, in
connection with short selling, market manipulation ``is
difficult to detect and successfully prosecute, and the
potential damage to an individual company could be severe.''
The SEC and FINRA staff also agreed that the potential for
market manipulation continued even under the temporary rule.
Some of the market participants interviewed by GAO
recommended that the SEC issue a final rule requiring all short
sellers to borrow securities before any short sale. The SEC
staff said the Commission was considering imposing a pre-borrow
requirement to curb FTDs and market manipulation related to
naked short selling. The SEC staff said that the Commission was
also considering, however, whether the costs of a pre-borrow
requirement might outweigh the benefits because, among other
factors, FTDs represented only 0.01 percent of the dollar value
of trades. The GAO report also recommended that the SEC improve
industry guidance regarding the steps that should be taken to
implement a pre-borrow requirement.
D. Credit Cards: Fair Debt Collection Practices Act Could Better
Reflect the Evolving Debt Collection Marketplace and Use of
Technology (GAO-09-748), September 21, 2009
To advance the Subcommittee's longstanding concerns about
credit card and debt collection abuses, four Subcommittee
members, Chairman Levin, Ranking Minority Member Coleman, later
replaced by Senator Coburn, and Senator McCaskill, asked GAO to
conduct an investigation into credit card debt collection
practices. The resulting GAO report provided a detailed
description of the credit card debt collection industry and
abusive debt collection practices; found that the key Federal
law, the Fair Debt Collection Practices Act (FDCPA), was
outdated and ineffective; reported Federal enforcement cases to
stop abusive practices were infrequent; and demonstrated that
consumer protections against abusive debt collection practices
needed to be modernized and strengthened.
To conduct its inquiry, GAO analyzed documents and
interviewed representatives from six large credit card issuers,
six third-party debt collection agencies, six debt buyers, two
law firms, Federal and State agencies, and attorneys and
organizations representing consumers and collectors.
GAO presented evidence indicating that credit card
delinquency rates had spiked since 2007, with more than $23
billion in nonsecuritized debt 30 to 180 days late in 2008.
According to Federal Reserve data cited in the report, about
6.6 percent of credit cards were 30 or more days past due in
the first quarter of 2009, the highest rate in 18 years.
To collect this debt, GAO determined that credit card
issuers typically used their own personnel, in internal
collection departments, to collect on credit card debt that is
less than 6 months old, but often hired third-party collection
agencies or law firms to collect older debt. GAO noted that
contracts between the credit card issuers and debt collectors
often specified the collection policies and practices that
should be used. In addition, credit card issuers sometimes sold
portfolios of delinquent credit card debt to third party debt-
buyers, trading potential long-term cash flows for the short-
term proceeds of a sale.
GAO reported that, according to the U.S. Census Bureau, in
2006, more than 4,400 debt collection companies in the United
States employed approximately 143,000 people. Many of those
companies were very small, while a few debt collection firms
were extremely large: 43 percent employed 4 or fewer people,
while about 3 percent employed 500 or more. GAO also reported
that the debt buying industry had grown, by one industry
estimate, from $57 billion of purchased debt in 2003, to $100
billion in 2006.
The GAO report described how different types of credit card
debt were categorized and sold. GAO observed that credit card
accounts could be resold multiple times, and that several
factors influenced the price of these accounts, including their
age, location, and number of times previously placed for
collection. The report also presented evidence that the price
of delinquent debt had declined in recent years. According to
one industry source, ``fresh'' debt--debt that is 6 to 9 months
past due and never placed with a collection agency--sold for
about 15 cents on the dollar in March 2007; in January 2009, it
sold for about 6 cents on the dollar. ``Tertiary'' debt--debt
that is more than 2 years past due or previously placed with
two collection agencies--sold for about 4 cents on the dollar
in March 2007; in January 2009, it sold for between 1 and 2
cents.
GAO also reported on how credit card issuers and third-
party debt collectors attempted to collect debt, citing
evidence of a rising volume of debt collection court cases
placing increasing burdens on State courts. GAO noted that the
Federal Trade Commission has reported that the majority of
cases on many State court dockets on any given day are debt
collection cases. GAO also reported that a study by the Urban
Justice Center estimated, for example, that in 2006, 320,000
debt collection cases were filed just in New York City's Civil
Court. That study also estimated that, in Chicago's Cook County
Circuit Court, more than 119,000 civil debt collection lawsuits
were pending as of June 2008, and that municipal court judges
in Ohio handle as many as 1,000 debt collection cases per week.
GAO also cited a review by the Boston Globe which found that at
least 60 percent of small claims cases filed in Massachusetts
in 2005, were filed by debt collectors. GAO reported that
consumer groups, attorneys, and the FTC all agree that the
number of debt collection State court cases had increased in
recent years and was putting a strain on State court systems.
The GAO report explained that the primary Federal law
governing third-party debt collection, FDCPA, prohibited debt
collectors from using abusive, deceptive, and unfair collection
practices. GAO also explained that the Federal Trade Commission
(FTC), the lead Federal agency for detecting and taking
enforcement actions involving FDCPA violations, received more
complaints about the debt collection industry than any other
industry, logging about 79,000 complaints on third-party debt
collectors in 2008 alone, which was almost 19 percent of all of
the complaints the FTC received.
The GAO report explained that the FTC was not the only
agency charged with stopping debt collection abuses. Since most
large credit card issuers are nationally-chartered banks,
Federal banking regulators were also responsible for overseeing
their debt collection practices and protecting consumers from
unfair practices. In addition, States enforced State fair debt
collection laws, some of which provided protections additional
to those of FDCPA.
The GAO report described a variety of abusive practices
engaged in by some debt collectors. They included trying to
collect debt that is not owed or is beyond the statute of
limitations, making harassing telephone calls prohibited by
law, threatening to make arrests that the debt collector had no
authority to make, and collecting debt that had been discharged
in bankruptcy. GAO observed that the extent of abusive
practices could not be determined due to the lack of data. GAO
also noted that debt buyers and collection agencies often may
not have adequate information about the accounts they have
purchased or access to the billing statements or other
documentation needed to verify the debt, sometimes leading a
debt collector to try to collect from the wrong consumer or for
the wrong amount. In addition, GAO noted that, as credit card
debts were sold and resold, verification of the facts became
more difficult as the owner of the debt became farther removed
from the original creditor.
The GAO report determined that, despite receiving tens of
thousands of complaints, Federal agencies took only 32 formal
enforcement actions over the last decade related to abusive
debt collection activities. Those formal enforcement actions
included 24 enforcement actions by the FTC against debt
collectors, at least 13 of which involved credit card debt; and
three formal enforcement actions by the FDIC against banks
involved in collecting credit card debt. These infrequent
enforcement actions were dwarfed by the number of complaints of
abusive practices and the volume of debt collection activity
documented in the report.
The GAO report also found that the law had not kept up with
new technologies and evolving debt collection practices. GAO
noted that communication technologies that have become common
involving mobile telephones, email, caller identification,
answering machines, and fax machines were not prevalent when
FDCPA was enacted in 1977. In addition, GAO noted that the FTC
was not given rulemaking authority to implement the FDCPA,
which limited the FTC's ability to address such basic issues as
how debt collectors should use email, cell telephone numbers,
and answering machines in their debt collection efforts and
what efforts they should undertake to verify account and debt
information. GAO indicated that most stakeholders involved in
the process of debt collection with whom GAO spoke, including
consumer protection groups, State and Federal agencies, credit
card issuers, debt collectors, and debt buyers, expressed
support for updating the FDCPA. GAO explicitly recommended that
Congress amend the law to update its provisions.
AD HOC SUBCOMMITTEE ON STATE, LOCAL, AND PRIVATE SECTOR PREPAREDNESS
AND INTEGRATION
Chairman: Mark L. Pryor, Chairman
Ranking Minority Member: John Ensign
I. HEARINGS
1. Counternarcotics Enforcement: Coordination at the Federal, State,
and Local Level (April 21, 2009)
Witnesses: John Leech, Acting Director, Office of
Counternarcotics Enforcement, U.S. Department of Homeland
Security; Frances Flener, Arkansas State Drug Director, State
of Arkansas; Douglas C. Gillespie, Sheriff, on behalf of Major
Cities' Chiefs Association, Major County Sheriffs' Association
and Las Vegas Metropolitan Police Department, Las Vegas,
Nevada.
The purpose of this hearing was to assess the role and
mission of DHS's Office of Counternarcotics Enforcement (OCNE)
and its coordination with other Federal drug enforcement
programs.
Mr. Leech discussed the mission, goals and programs of
OCNE, and its cooperation with other Federal programs. Ms.
Flener spoke on the topic of the State's counter-drug efforts
and its collaboration with High Intensity Drug Trafficking Area
program activities. Sheriff Gillespie described his role in the
Southern Nevada Counterterrorism Center and how it relates to
violent crime and drug trafficking. He also analyzed Federal
participation in this sector and suggested areas for
improvement.
2. Pandemic Flu: Closing the Gaps (June 3, 2009)
Witnesses: Bernice Steinhardt, Director, Strategic Issues,
U.S. Government Accountability Office; John Thomasian,
Director, National Governors Association Center for Best
Practices; Paul E. Jarris, M.D., Executive Director,
Association of State and Territorial Health Officials; Stephen
M. Ostroff, M.D., Director, Bureau of Epidemiology and Acting
Physician General, Pennsylvania Department of Health.
The purpose of this hearing was to examine the steps State
and local governments and communities can take to detect and
treat pandemic flu.
Ms. Steinhardt discussed her report, Influenza Pandemic:
Sustaining Focus on the Nation's Planning and Preparedness
Efforts and key steps to aid in preparation, response, and
recovery efforts in the event of an influenza pandemic. Mr.
Thomasian addressed the Nation's response to the H1N1 influenza
virus and discussed outstanding requirements needed to form an
efficient national response to pandemics.
On the second panel, Dr. Jarris spoke about the State and
territorial reaction to the novel H1N1 epidemic and the health
agencies' abilities to provide a timely response in a future
influenza pandemic. He also described State and Federal
collaboration with the private sector on response plans. Dr.
Ostroff represented the voice of public health practitioners
and epidemiologists and their experiences with national
epidemic response processes.
3. The Next Big Disaster: Is the Private Sector Prepared? (March 4,
2010)
Witnesses: Stephen C. Jordan, Senior Vice President and
Executive Director, Business Civic Leadership Center; John R.
Harrald, Ph.D., Research Professor, Center for Technology,
Security and Policy, Virginia Polytechnic Institute and State
University, Co-Director and Professor Emeritus, Institute for
Crisis, Disaster and Risk Management, The George Washington
University, and Chair, Disaster Roundtable, The National
Academies; Stephen E. Flynn, Ph.D., President, Center for
National Policy.
The purpose of this hearing was to consider lessons learned
from previous disasters and how to better integrate the private
sector's preparations with government preparations.
Mr. Jordan scrutinized the escalating costs of disasters
and the need for more funding from the private sector. He also
discussed the business benefits of preparedness. Mr. Harrald
provided recommendations for better utilizing the private
sector in disaster preparation. Mr. Flynn examined the need for
improved communal resilience. He stressed that non-government
corporations have plausible assets that would be extremely
beneficial to disaster stricken areas, and because these
corporations are often leaders in helping damaged areas
recover, the integration of these businesses should be a
priority of the Subcommittee.
4. New Border War: Corruption of U.S. Officials by Drug Cartels (March
11, 2010)
Witnesses: Kevin L. Perkins, Assistant Director, Criminal
Investigative Division, Federal Bureau of Investigation, U.S.
Department of Justice; Thomas M. Frost, Assistant Inspector
General for Investigations, Office of Inspector General, U.S.
Department of Homeland Security; James F. Tomsheck, Assistant
Commissioner, Office of Internal Affairs, Customs and Border
Protection U.S. Department of Homeland Security.
The purpose of this hearing was to review the growing
numbers of corrupt law enforcement personnel and how cartels
rely on them to move and distribute illegal substances and
other contraband throughout the United States. The witnesses
also highlighted the need for policy changes to diminish this
trend.
Mr. Perkins discussed the FBI's efforts to combat public
corruption. Mr. Frost recommended future actions that should be
taken by the Subcommittee to reinforce the success and
efficiency of DHS's investigation and oversight activities,
which in turn will fortify departmental programs. Mr. Tomsheck
focused on his experiences with CBP and defended the integrity
of its workforce.
5. Deep Impact: Assessing the Effects of the Deepwater Horizon Oil
Spill on States, Localities and the Private Sector (June 10,
2010)
Witnesses: Hon. Bill Nelson, U.S. Senator from the State of
Florida; Hon. David Camarelle, Mayor, Grand Isle, Louisiana;
Billy Nungesser, President, Plaquemines Parish, Louisiana; Mark
A. Cooper, Director, Louisiana Governor's Office of Homeland
Security and Emergency Preparedness; Hon. Juliette Kayyem,
Assistant Secretary for Intergovernmental Affairs, U.S.
Department of Homeland Security; Rear Admiral Roy Nash, Deputy
Director, Federal On-Scene Commander, Deputy Unified Area
Commander, U.S. Coast Guard; Ray Dempsey, Vice President of
Strategy, BP America, Inc., accompanied by Darryl Willis, Vice
President for Resources, BP America, Inc.
The purpose of this hearing was to discuss the impact of
the Deepwater Horizon oil spill on Gulf Coast States and
regions. It also assessed the efficiency of the synchronized
Federal, State, local, and private sector response.
The first panel examined the effects of the oil spill on
the lives and commerce of local fisherman. Panelists also
discussed the impact of the spill on marine life and the
environment.
The second and third panels reviewed DHS's response to the
spill, as well as State and local authorities' responses. A BP
representative shared a detailed report of BP's actions in
response to the oil spill.
6. A Review of Disaster Medical Preparedness: Improving Coordination
and Collaboration in the Delivery of Medical Assistance During
Disasters (July 22, 2010)
Witnesses: Robert J. Fenton, Deputy Assistant Administrator
for Response, Federal Emergency Management Agency, U.S.
Department of Homeland Security; Kevin Yeskey, M.D., Deputy
Assistant Secretary and Director of Preparedness and Emergency
Operations, Office of the Assistant Secretary for Preparedness
and Response Program, Department of Health and Human Services;
Paul Cunningham, Senior Vice President, Arkansas Hospital
Association.
The purpose of this hearing was to evaluate the Federal
efforts to coordinate with the private sector to ensure that
individuals affected by disasters have access to medical care.
The first panel discussed the need for future collaboration
between Federal agencies and volunteer and non-profit
organizations. The first panel also assessed the role and
response of the National Disaster Medical System (NDMS) during
catastrophic events.
The second panel reviewed flaws in the NDMS and proposed
ideas for fixing the issues within the system.
7. Flood Preparedness and Mitigation: Map Modernization, Levee
Inspection, and Levee Repairs (July 28, 2010) (Joint Hearing
with the Subcommittee on Disaster Recovery and the Subcommittee
on State, Local, and Private Sector Preparedness and
Integration)
Witnesses: Hon. Jo-Ellen Darcy, Assistant Secretary of the
Army, Civil Works, U.S. Army Corps of Engineers; Sandra K.
Knight, Ph.D., Deputy Assistant Administrator, Federal
Insurance and Mitigation Administration, Federal Emergency
Management Agency, U.S. Department of Homeland Security; Hon.
Bob Mehlhoff, District 26, Montana House of Representatives;
David R. Maidment, Ph.D., Director, Center for Research in
Water Resources and Hussein M. Alharthy Centennial Chair in
Civil Engineering, The University of Texas at Austin, and
Chair, Committee on Floodplain Mapping Technologies, and Chair,
Committee on FEMA Flood Maps, National Research Council, The
National Academies; Sam Riley Medlock, Policy Counsel,
Association of State Floodplain Managers, and Member, National
Committee on Levee Safety; Robert G. Rash, Chief Executive
Officer and Chief Engineer, St. Francis Levee District of
Arkansas; Joseph Suhayda, Ph.D., Interim Director, Louisiana
State University Hurricane Center, and Chairman, Independent
Technical Review Committee, FEMA/USACE Louisiana Storm Surge
Study.
The purpose of this hearing was to assess preparedness
among flood-prone communities and responsible Federal
organizations. The hearing witnesses evaluated the precision of
the FEMA flood map modernization process, its effect on States,
methods for dispute resolution, and the influence of levee
inspections and certifications on determinations of flood risk.
The first panel conferred about agencies such as USACE and
FEMA's role in assisting communities with flood preparation,
especially as related to the national flood plain remapping
efforts and levees.
The second panel analyzed levee construction accuracy and
recommended several solutions to the faulty structure. This
panel also suggested a collaboration of goals between various
disaster relief organizations. State and Federal agency
cooperation was also suggested.
8. Earthquake Preparedness: What the United States Can Learn from the
2010 Chilean and Haitian Earthquakes (September 30, 2010)
Witnesses: William L. Carwile, III, Associate Administrator
for Response and Recovery, Federal Emergency Management Agency,
U.S. Department of Homeland Security; Dirk W. Dijkerman, Acting
Assistant Administrator, Bureau for Democracy, Conflict, and
Humanitarian Assistance, U.S. Agency for International
Development; Cristobal Lira, Director, Committee for Earthquake
and Tsunami Emergency (March-August 2010), Reconstruction
Committee (since August 2010), Chilean Ministry of Interior;
James M. Wilkinson, Executive Director, Central United States
Earthquake Consortium; Ellis M. Stanley, Sr., Vice President,
Dewberry, and Director, Western Emergency Management and
Homeland Security Services; Reginald DesRoches, Ph. D.,
Professor and Associate Chair, Georgia Institute of Technology
School of Civil and Environmental Engineering.
The purpose of this hearing was to learn about
international earthquake response in the aftermath of the Haiti
and Chile earthquakes. The Subcommittee heard from two
witnesses who recounted their role in either the earthquakes in
Haiti on January 12, 2010 or the earthquake in Chile on
February 27, 2010. The purpose of these testimonies was to
compare the responses of the foreign governments and help
inform the U.S. Government's preparation for an earthquake on
American soil.
The first panel explained the use of the New Madrid Seismic
Zone Catastrophic Planning Project as a model for collaboration
at every level of government, the private sector, voluntary
organizations, and non-governmental businesses. This group also
reflected upon USAID responses to foreign disasters.
The second panel reviewed the hazard of an earthquake in
the central United States. This panel encouraged voluntary
programs and praised their resiliency in previous disasters
such as the Chilean earthquake. The urgency to produce more
technologies to combat natural disaster-related damages was
also stressed during this panel.
II. LEGISLATION
(1) S. 3243--Anti-Border Corruption Act of 2010--Requires
the Secretary of Homeland Security (DHS) to ensure that: (1) by
not later than 2 years after enactment of this Act, all
applicants for law enforcement positions with U.S. Customs and
Border Protection (CBP) receive polygraph examinations before
being hired for such positions; and (2) by not later than 180
days after enactment of this Act, CBP initiates all periodic
background reinvestigations for all of its law enforcement
personnel.
It also requires the Secretary to make periodic progress
reports to the House Committee on Homeland Security and the
Senate Committee on Homeland Security and Governmental Affairs
on CBP progress in complying with the requirements of this Act.
On January 4, 2011 it became Public Law No: 111-376.
(2) S. 2863--Emergency Response Act of 2009--Amends the
Robert T. Stafford Disaster Relief and Emergency Assistance Act
to redefine ``major disaster'' as any natural disaster
(including pandemics), act of terrorism, or other manmade
disaster (under current law, any natural catastrophe) in any
part of the United States that, in the determination of the
President, causes damage of sufficient severity and magnitude
to warrant major disaster assistance to supplement the efforts
and resources of States, local governments, and disaster relief
organizations.
It also directs the Secretary of Homeland Security (DHS) to
designate a representative to lead a working group with
national organizations that represent State, local, and tribal
government interests to prepare best practice recommendations
for facilitating the flow of public health information to State
fusion centers and the greater homeland security community.
On December 10, 2009 it was referred to Senate committee
and the status is that it was read twice and referred to the
Committee on Homeland Security and Governmental Affairs.
(3) S. 713--FEMA Accountability Act of 2009--Directs the
Administrator of the Federal Emergency Management Agency (FEMA)
to: (1) complete an assessment to determine the number of
temporary housing units purchased by FEMA that it needs to
maintain in stock to respond appropriately to emergencies or
major disasters; and (2) establish criteria for determining
whether individual temporary housing units stored by FEMA are
in usable condition, including appropriate criteria for
formaldehyde testing and exposure of such units.Requires the
Administrator to establish and implement a plan for: (1)
storing the number of temporary housing units that the
Administrator has determined that FEMA needs to maintain in
stock; (2) transferring, selling, or otherwise disposing of
such units in FEMA's inventory that are in excess of that
number and in usable condition; and (3) disposing of such units
that are determined not to be in usable condition.
Makes the plan subject to Robert T. Stafford Disaster
Relief and Emergency Assistance Act disposal requirements and
other applicable law.Directs the Administrator to report to the
appropriate congressional committees on the status of the
distribution, sale, transfer, or other disposal of temporary
housing units under this Act.
On May 20, 2010 it was referred to the Subcommittee on
Water Resources and Environment.
(4) S. 1288--Emergency Management Assistance Compact
Reauthorization Act of 2009--Amends the Post-Katrina Emergency
Management Reform Act of 2006 to authorize the use of Emergency
Management Assistance Compact grants to: (1) educate emergency
response providers by offering training materials and courses
relating to the Compact; (2) conduct exercises regarding
deployments under the Compact and related procedures; (3)
establish a system for tracking resources deployed under the
Compact; and (4) conduct after-action assessments, prepare
reports, and carry out recommendations in response to large-
scale activations, as determined appropriate by Compact
administrators.Authorizes appropriations for Compact grants for
FY2010-2012.
On July 15, 2010 it was held at the desk.
AD HOC SUBCOMMITTEE ON DISASTER RECOVERY
Chairman: Mary L. Landrieu, Chairman
Ranking Minority Member: Lindsey Graham
I. HEARINGS
1. A New Way Home: Findings from the Disaster Recovery Subcommittee
Special Report and Working with the New Administration on a Way
Forward--March 18, 2009
Witnesses: Nancy Ward, Acting Administrator, Federal
Emergency Management Agency, U.S. Department of Homeland
Security; Nelson Bregon, General Deputy Assistant Secretary,
Office of Community Planning and Development, U.S. Department
of Housing and Urban Development, accompanied by Milan Ozdinek,
Deputy Assistant Secretary, Office of Public Housing and
Voucher Programs; Karen Paup, Co-Director, Texas Low Income
Housing Information Service; Krystal Williams, Executive
Director, Louisiana Housing Alliance; Sheila Crowley, Ph.D.,
President and CEO, National Low Income Housing Coalition; and
Reilly Morse, Senior Attorney, Mississippi Center for Justice.
The purpose of this hearing was to assess the findings of
SDR's Special Report on disaster housing assistance entitled,
``Far From Home: Deficiencies in Federal Disaster Housing
Assistance after Hurricanes Katrina and Rita and
Recommendations for Improvement.''
Witnesses from FEMA and HUD addressed the report's
recommendations and the future of disaster housing assistance
in general.
The second panel addressed the report's findings and
recommendations and their implications on the recovery of
individuals in each State. They discussed ideas for reform
which were not included in the report, but which they believed
would lead to better outcomes in catastrophes. Finally, the
witnesses offered recommendations from their own work for
consideration by Congress and the Administration.
2. The Role of the Community Development Block Grant Program in
Disaster Recovery--May 20, 2009
Witnesses: Hon. Haley Barbour, Governor, State of
Mississippi; Dominique Duval-Diop, Senior Associate,
PolicyLink; Melanie Ehrlich, Ph.D., Member of the Louisiana
Recovery Authority Housing Task Force, and Founder, Citizens'
Road Home Action Team; Karen Paup, Co-Director, Texas Low-
Income Housing Information Services; Reilly Morse, Senior
Attorney, Mississippi Center for Justice; Hon. Roger F. Wicker,
U.S. Senator from the State of Mississippi; Hon. Haley Barbour,
Governor of the State of Mississippi; Paul Rainwater, Executive
Director, Louisiana Recovery Authority; Charles (Charlie)
Stone, Executive Director, State of Texas, Office of Rural
Community Affairs; Charlie S. Stone, Executive Director, State
of Texas, Office of Rural Community Affairs; and Frederick
Tombar III, Senior Advisor to the Secretary for Disaster and
Recovery Programs, U.S. Department of Housing and Urban
Development.
The purpose of this hearing was to examine the Gulf Coast
States' use of approximately $23.5 million in Community
Development Block Grant (CDBG) funds received from HUD after
Hurricanes Katrina, Rita, Gustav, and Ike.
The first panel consisted of housing advocates, who
discussed how their States had used CDBG funds to pay for
State-run housing programs.
The second panel examined advantages and disadvantages of
using CDBG to pay for recovery operations. Panelists also
discussed funding restrictions and controversial aspects of the
Road Home program. The panel consisted of Federal and State
officials, including a HUD official, who discussed the agency's
plans for allocation of remaining disaster CDBG funds and a
statutory prohibition on the use of funds for Federal matching
requirements.
3. Are We Ready? A Status Report on Emergency Preparedness for the 2009
Hurricane Season--June 4, 2009
Witnesses: Hon. W. Craig Fugate, Administrator, Federal
Emergency Management Agency, U.S. Department of Homeland
Security; Major General Frank Grass, Director of Operations,
U.S. Northern Command; George Foresman, Advisory Board Co-
Chairman of the ReadyCommunities Partnership, Corporate Crisis
Response Officers Association, Former Undersecretary,
Preparedness and Emergency Response, U.S. Department of
Homeland Security; Armond Mascelli, Vice President, Disaster
Operations, American Red Cross; and Janet Durden, President,
United Way of Northeast Louisiana.
The purpose of this hearing was to evaluate preparedness at
the Federal, regional, State, and local levels for the 2009
hurricane season. The hearing provided a discussion of lessons
learned from the 2008 season and how they were incorporated
into the response planning for the current year.
The first panel's witnesses discussed preparedness measures
and the U.S. Army's role in disaster response and coordination
with States' National Guards.
The second panel discussed the private sector's role in
emergency planning, activities of the American Red Cross'
Disaster Operations and the role of the 211 system during the
2005 and 2008 hurricane seasons.
4. Focusing on Children in Disasters: Evacuation Planning and Mental
Health Recovery--August 4, 2009
Witnesses: Hon. W. Craig Fugate, Administrator, Federal
Emergency Management Agency, U.S. Department of Homeland
Security; Rear Admiral Nicole Lurie, M.D., Assistant Secretary
for Preparedness, U.S. Public Health Service, U.S. Department
of Health and Human Services; Cynthia A. Bascetta, Director,
Health Care, U.S. Government Accountability Office; Mark K.
Shriver, Vice President and Managing Director of U.S. Programs
at Save the Children, and Chairperson, National Commission on
Children and Disasters; Irwin Redlener, M.D., Professor,
Clinical Population and Family Health, and Director, National
Center for Disaster Preparedness, Mailman School of Public
Health, Columbia University, and President, Children's Health
Fund; and Teri Fontenot, President and Chief Executive Officer,
Women's Hospital, Baton Rouge, Louisiana.
The purpose of this hearing was to review the increase in
the number of disasters compared with previous decades. This
increase demonstrated the need for a better evacuation plans
for children in disaster-prone areas and a post-disaster
program to ensure the mental safety of the children. Witnesses
focused on children's role in disaster preparation and
recovery.
The first panel examined the separate methods needed for
children and adults, and the requirement to prioritize child
care after disaster recovery to facilitate overall recovery in
disaster-stricken regions.
The second panel discussed the reflexive habit of lumping
children in with ``vulnerable'' and special needs populations
including pregnant women, the elderly, and the disabled.
Panelists also discussed previous disaster situations that have
been important lessons learned in disaster planning.
5. Disaster Case Management: Developing a Comprehensive National
Program Focused on Outcomes--December 2, 2009
Witnesses: Elizabeth A. Zimmerman, Assistant Administrator,
Disaster Assistance, Federal Emergency Management Agency, U.S.
Department of Homeland Security; David Hansell, Principal
Deputy Assistant Secretary, Administration for Children and
Families, U.S. Department of Health and Human Services;
Frederick Tombar, Senior Advisor, Office of the Secretary, U.S.
Department of Housing and Urban Development; Kay E. Brown,
Director, Education, Workforce, and Income Security, U.S.
Government Accountability Office; Amanda Guma, Health Services
Policy Director, Louisiana Recovery Authority; Rev. Larry
Snyder, President and Chief Executive Officer, Catholic
Charities USA; Diana Rothe-Smith, Executive Director, National
Voluntary Organizations Active in Disasters; Irwin Redlener,
M.D., Professor, Clinical Population and Family Health, and
Director, National Center for Disaster Preparedness, Columbia
University Mailman School of Public Health, and President,
Children's Health Fund; Stephen P. Carr, Program Director,
Mississippi Case Management Consortium; and Monteic A. Sizer,
M.D., President and Chief Executive Officer, Louisiana Family
Recovery Corps.
The purpose of this hearing was to discuss the Federal
Government's plans to develop a National Disaster Case
Management Program and the extent to which these plans address
the needs of disaster survivors.
The first panel explained their goals of disaster recovery
for all citizens and stressed the importance of making it a
joint effort, due to the magnitude of the project. Meeting the
overall goal of rapid response requires a national program that
is centered on results.
The second panel discussed Federal policy changes that
could aid in developing a system that will help survivors
recover more rapidly. Prior to recommending actions,
representatives from various organizations discussed how multi-
organizational partnerships will encourage cooperation amongst
other disaster relief agencies.
6. Children and Disasters: A Progress Report on Addressing Needs--
December 10, 2009
Witnesses: Mark K. Shriver, Chairperson, National
Commission on Children and Disasters; Hon. W. Craig Fugate,
Administrator, Federal Emergency Management Agency, U.S.
Department of Homeland Security; Rear Admiral Nicole Lurie,
M.D., MSPH, Assistant Secretary for Preparedness, U.S. Public
Health Service, U.S. Department of Health and Human Services;
William Modzeleski, Associate Assistant Deputy Secretary,
Office of Safe and Drug-Free Schools, U.S. Department of
Education; Paul G. Pastorek, Louisiana State Superintendent of
Education; Matt Salo, Legislative Director of the Health and
Human Services Committee, National Governors Association;
Melissa Reeves, Ph.D., Chairperson, Prevent, Reaffirm,
Evaluate, Provide, and Respond, Examine (PREPaRE) Committee,
National Association of School Psychologists; and Douglas W.
Walker, Ph.D., Project Director, Fleur de-lis Project.
The purpose of this hearing was to evaluate the Interim
Report released on October 14, 2009 by the National Commission
on Children and Disasters and the status of administrative and
legislative efforts to implement its recommendations. The
report identified shortcomings in disaster preparedness,
response, and recovery and outlined steps to better address the
needs of children throughout each phase.
The first panel examined the needs of children and disaster
preparedness. Panelists also discussed FEMA's efforts to fix
the shortcomings in response and recovery programs by better
tailoring them to the needs of children.
The second panel addressed perspectives on what is working
and what challenges continue after disasters. This panel talked
about new requirements such as each school having a crisis
management plan to minimize damage and recover swiftly. Other
topics included the State function in meeting the health care
needs of children during disasters.
7. Stafford Act Reform: Sharper Tools for a Smarter Recovery--May 12,
2010
Witnesses: Hon. W. Craig Fugate, Administrator, Federal
Emergency Management Agency, U.S. Department of Homeland
Security; Matt Jadacki, Deputy Inspector General, Office of
Emergency Management Oversight, Office of Inspector General,
U.S. Department of Homeland Security; Hon. Joseph P. Riley,
Jr., Mayor of Charleston, South Carolina, and Member, Stafford
Act Reform Task Force, U.S. Conference of Mayors; David
Maxwell, Director and Homeland Security Advisor, Arkansas
Department of Emergency Management, and President, National
Emergency Management Association; and Sheila Crowley, Ph.D.,
President and Chief Executive Officer, National Low Income
Housing Coalition.
The purpose of this hearing was to discuss concerns about
the Robert T. Stafford Disaster Relief and Emergency Assistance
Act and proposals for its reform. Hurricanes Katrina and Rita
revealed inadequacies in the Act's ability to support
comprehensive disaster recovery, so the panelists were asked to
recommend reforms.
The first panel reviewed FEMA's policies and revisions that
have been made to improve post-disaster aid. The panelists also
recommended revisions to the Stafford Act.
The second panel witnesses determined that a case
management system should be community-based and that
communities should have a reliable disaster plan before a
tragedy strikes. They also recommended changes to the Stafford
Acts which would enable more efficient recoveries in the
future.
8. Flood Preparedness and Mitigation: Map Modernization, Levee
Inspection, and Levee Repairs--July 28, 2010 (Joint Hearing
with the Subcommittee on Disaster Recovery and the Subcommittee
on State, Local, and Private Sector Preparedness and
Integration)
Witnesses: Hon. Jo-Ellen Darcy, Assistant Secretary of the
Army, Civil Works, U.S. Army Corps of Engineers; Sandra K.
Knight, Ph.D., Deputy Assistant Administrator, Federal
Insurance and Mitigation Administration, Federal Emergency
Management Agency, U.S. Department of Homeland Security; Hon.
Bob Mehlhoff, District 26, Montana House of Representatives;
David R. Maidment, Ph.D., Director, Center for Research in
Water Resources and Hussein M. Alharthy Centennial Chair in
Civil Engineering, The University of Texas at Austin, and
Chair, Committee on Floodplain Mapping Technologies, and Chair,
Committee on FEMA Flood Maps, National Research Council, The
National Academies; Sam Riley Medlock, Policy Counsel,
Association of State Floodplain Managers, and Member, National
Committee on Levee Safety; Robert G. Rash, Chief Executive
Officer and Chief Engineer, St. Francis Levee District of
Arkansas; and Joseph Suhayda, Ph.D., Interim Director,
Louisiana State University Hurricane Center, and Chairman,
Independent Technical Review Committee, FEMA/USACE Louisiana
Storm Surge Study.
The purpose of this hearing was to assess preparedness
among flood-prone communities and responsible Federal
organizations. The hearing witnesses evaluated the precision of
the FEMA flood map modernization process, its effect on States,
methods for dispute resolution, and the influence of levee
inspections and certifications on determinations of flood risk.
The first panel conferred about agencies such as USACE and
FEMA's role in assisting communities with flood preparation,
especially as related to the national flood plain remapping
efforts and levees.
The second panel analyzed levee construction accuracy and
recommended several solutions to the faulty structure. This
panel also suggested a collaboration of goals between various
disaster relief organizations. State and Federal agency
cooperation was also suggested.
9. Five Years Later: Lessons Learned, Progress Made, and Work Remaining
from Hurricane Katrina--August 26, 2010 (Field hearing was held
in Chalmette, Louisiana)
Witnesses: Gregory C. Rigamer, Chief Executive Officer, GCR
and Associates, Inc., New Orleans, Louisiana; Amy Liu, Deputy
Director and Senior Fellow, Metropolitan Policy Program, The
Brookings Institution, Washington, DC; Hon. Charlie Melancon, a
Representative in Congress from the State of Louisiana; Hon.
Steve Scalise, a Representative in Congress from the State of
Louisiana; Hon. Joseph Cao, a Representative in Congress from
the State of Louisiana; Hon. Shaun Donovan, Secretary, U.S.
Department of Housing and Urban Development; Paul Rainwater,
Commissioner of Administration, State of Louisiana, and Former
Executive Director, Louisiana Recovery Authority; Doris
Voitier, Superintendent, St. Bernard Parish Schools; Mark
Schexnayder, Agent, Louisiana State University Agriculture
Center; Lauren Anderson, Chief Executive Officer, Neighborhood
Housing Services of New Orleans; Hon. W. Craig Fugate,
Administrator, Federal Emergency Management Agency, U.S.
Department of Homeland Security; Lieutenant General Robert Van
Antwerp, Jr., Chief of Engineers, U.S. Army Corps of Engineers;
Mitchell J. Landrieu, Mayor, City of New Orleans; Kevin Davis,
President, St. Tammany Parish; and Jeff Hingle, Sheriff,
Plaquemines Parish.
The purpose of this hearing was to highlight Louisiana's
progress, setbacks and continuing needs as it worked to recover
and rebuild from the 2005 hurricane season. On August 29, 2005,
Hurricane Katrina made landfall in southeast Louisiana as a
Category 3 Hurricane. It caused severe destruction along the
Gulf Coast from central Florida to Texas, much of it due to the
storm surge. The most severe loss of life occurred in New
Orleans, which flooded when the levee system catastrophically
failed. Eventually 80 percent of the city and large tracts of
neighboring parishes flooded, and the floodwaters lingered for
weeks. Five years later, Louisiana was still working towards a
full recovery.
The first panel assessed the work that had been done by the
Federal and State Governments and provided an overview of the
remaining work to be done.
The second panel discussed the impact of Hurricane Katrina
on schools, fisheries and wetlands, and the progress made since
2005. Panelists also discussed efforts to rebuild housing and
revitalize neighborhoods.
10. Gulf Coast Recovery: An Examination of Claims and Social Services
in the Aftermath of the Deepwater Horizon Oil Spill--January
27, 2011\1\
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\1\Hearing was held in the 112th Congress but included here as this
was the last hearing of SDR before the committee reorganized. In
February 2011, the Subcommittee on State, Local, and Private Sector
Preparedness and Integration (SLPSPI) and the Subcommittee on Disaster
Recovery (SDR) combined to form the Subcommittee on Disaster Recovery
and Intergovernmental Affairs (DRIA).
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Witnesses: Kenneth R. Feinberg, Administrator, Gulf Coast
Claims Facility; Craig Bennett, Director, National Pollution
Funds Center, U.S. Coast Guard; Ve Nguyen, Member, United
Louisiana Vietnamese American Fisherfolks; Rear Admiral Eric
Broderick, D.D.S., M.P.H., Deputy Administrator, Substance
Abuse and Mental Health Services Administration, U.S.
Department of Health and Human Services; Albert L. Keller,
Executive Vice President, Gulf Coast Restoration Organization,
BP America, Inc.; Tom Costanza, Executive Director, Office of
Justice and Peace, Catholic Charities, Archdiocese of New
Orleans; and Lori R. West, Director of International Relief and
Development and Current Chairman, South Mississippi Voluntary
Organizations Active in Disasters.
The purpose of the hearing was to evaluate recovery from
the Deepwater Horizon Oil Spill by reviewing progress made and
challenges remaining for oil spill and moratorium claims as
well as nonprofit social service providers. The GCCF worked
with nearly 500,000 individuals and businesses to replace lost
wages and revenue. The Baton Rouge Area Foundation (BRAF) was
preparing for its second round of payments to rig workers and
others affected by the moratorium on offshore drilling and BP
is administering State and local government claims. Non-
governmental organizations (NGOs) were helping people to
prepare and submit their claims and also working to provide for
unmet needs, such as feeding and utility assistance, case
management, financial literacy, job training, and mental health
services. This hearing was intended to continue a constructive
dialogue between the Federal, State, and local governments, the
GCCF, BRAF, BP, and NGOs involved in providing claims
assistance and social services to families affected by the oil
spill.
The first panel discussed the State and local government
claims process as well as improvements made and challenges that
remain.
The second panel discussed outstanding needs among spill-
affected households and businesses in the affected States.
II. LEGISLATION
(1) S. 1069--Ratepayer Recovery Act of 2009--Amends Robert
T. Stafford Disaster Relief and Emergency Assistance Act of
cite conditions under which the President is authorized to make
disaster assistance contributions for the repair, restoration,
reconstruction, or replacement of private or investor-owned
power transmission and distribution facilities damaged or
destroyed by a major disaster. Cites conditions for large in-
lieu contributions to a private or investor-owned power
facility in any case in which the owner determines that the
public welfare would not be best served by repairing,
restoring, reconstruction, or replacing the facility.
On June 9, 2009, the Committee on Homeland Security and
Governmental Affairs referred to Subcommittee on Disaster
Recovery.
(2) S. 1088--A bill to authorize certain construction in
coastal high hazard areas using assistance under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act--Deems:
(1) certain activity in coastal high hazard area to be an
eligible use of assistance under provisions of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act regarding
hazard mitigation and repair, restoration, and replacement of
facilities damaged by Hurricane Katrina, Rita, Gustav, or Ike;
and (2) any new construction or substantial improvements to
structures under such an activity involving critical actions to
not be required to elevate to the 500-year floodplain if it
would be impracticable.
Makes this applicable to any assistance under such Act
relating to a major disaster declared on or after August 28,
2005, relating to such hurricanes.
On May 20, 2009, it was read twice and referred to the
Committee on Homeland Security and Governmental Affairs.
SUBCOMMITTEE ON CONTRACTING OVERSIGHT
Chairman: Claire McCaskill (D-MO)
Ranking Minority Members: Susan Collins (R-ME), Robert Bennett (R-UT),
and Scott Brown (R-MA)\1\
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\1\ Senator Susan M. Collins served as the Subcommittee's Ranking
Member from February 11, 2009 to July 30, 2009. Senator Robert F.
Bennett served as the Subcommittee's Acting Ranking Member from July
31, 2009 to March 8, 2010. Senator Scott P. Brown served as the
Subcommittee's Ranking Member from March 9, 2010 through the end of the
111th Congress.
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The Subcommittee on Contracting Oversight has broad
oversight authority over all aspects of Federal contracting.
The Subcommittee was created as an Ad Hoc Subcommittee for a
limited term to expire at the conclusion of the 111th Congress.
I. HEARINGS
During the 111th Congress, the Subcommittee on Contracting
Oversight held 15 hearings or roundtables; authorized 12
investigations; issued two subpoenas; made public seven
previously non-public sets of information; released seven
Majority Staff Analyses, Memoranda, or Fact Sheets; and
introduced, or joined as original cosponsor, seven related
pieces of legislation. Currently, the Subcommittee has five
ongoing investigations.
The following is a summary of the activities of the
Subcommittee organized by topic.
A. Administration Oversight
The Subcommittee held five hearings related to
administration oversight. The first hearing was focused on
improving Federal contracting databases and the second hearing
was focused on guidance released by the Office of Management
and Budget about combating waste, fraud, and abuse in Federal
contracting. The third and fourth hearings were focused on
improving interagency contracting. The fifth hearing was
focused on the mismanagement of contracts at the Arlington
National Cemetery, which led in part to unmarked and mislabeled
graves, and burial errors at the historical landmark.
1. Improving Transparency and Accessibility of Federal Contracting
Databases (September 29, 2009)
Witnesses: William T. Woods, Director, Acquisition and
Sourcing Management, U.S. Government Accountability Office;
Adam Hughes, Director, Federal Fiscal Policy, OMB Watch; A.R.
Trey Hodgkins III, Vice President, National Security and
Procurement Policy, TechAmerica; Mr. Vivek Kundra, Federal
Chief Information Officer and Administrator for E-Government
and Information Technology, Office of Management and Budget.
Overview: The hearing examined plans to integrate several
current and newly created databases related to Federal
procurement. In particular, the hearing examined General
Services Administration's plans for the Integrated Acquisition
Environment and the Architecture Operations Contract Support
programs.
At the hearing, officials from OMB acknowledged that
ultimate responsibility for both programs lies with OMB. They
also acknowledged existing deficiencies in the accuracy and
reliability of current databases. The Subcommittee continues to
monitor OMB's progress to correct these deficiencies.
2. Achieving the President's Objectives: New OMB Guidance to Combat
Waste, Inefficiency, and Misuse in Federal Government
Contracting (October 28, 2009)
Witnesses: Hon. Jeffrey D. Zients, Chief Performance
Officer and Deputy Director for Management, Office of
Management and Budget.
Overview: In 2009, OMB called on Federal agencies to (1)
reduce contract spending by 7 percent by FY2011, totaling
approximately $40 billion total across all agencies; (2) reduce
the number of high-risk contracts by 10 percent; and (3)
increase the acquisition workforce by 5 percent. The hearing
examined OMB's guidance. Chairman McCaskill stressed the
importance of ensuring transparency in OMB's strategy as
agencies took steps to achieve the goals established by OMB.
3. Interagency Contracts (Part I): Overview and Recommendations for
Reform (February 25, 2010)
Witnesses: Ralph C. Nash, Jr., Frederick J. Lees and E.K.
Gubin Professor Emeritus of Government Contracts Law, The
George Washington University Law School; Marshall J. Doke, Jr.,
Partner, Gardere Wynne Sewell, LLP; Steven Schooner, Associate
Professor of Law and Co-Director of the Government Procurement
Law Program, The George Washington University Law School;
Joshua Schwartz, E.K. Gubin Professor of Government Contracts
Law, Co-Director of the Government Procurement Law Program,
Faculty Chair of the Presidential Merit Scholars Program, The
George Washington University Law School.
Overview: The hearing was the first of two hearings on
interagency contracting held by the Subcommittee. During the
hearing, a panel of academic experts discussed the recent
proliferation of interagency contracts and the potential
benefits and detriments that could result.
4. Interagency Contracts (Part II): Management and Oversight (June 30,
2010)
Witnesses: John K. Needham, Director, Acquisition and
Sourcing Management, U.S. Government Accountability Office;
Hon. Daniel I. Gordon, Administrator, Office of Federal
Procurement Policy, Office of Management and Budget; Steven J.
Kempf, Acting Commissioner, Federal Acquisition Service, U.S.
General Services Administration; Richard K. Gunderson, Deputy
Chief Procurement Officer, U.S. Department of Homeland
Security; Diane J. Frasier, Director, Office of Acquisition and
Logistics Management, National Institutes of Health, U.S.
Department of Health and Human Services.
Overview: The hearing examined policy concerns raised at
the Subcommittees first hearing about interagency contracts on
February 25, 2010, including the potential problems with fees
associated with certain contract vehicles. The hearing also
examined the need for transparency in interagency contracting
and the need for reliable data.
The Subcommittee continues to explore legislation that may
help provide transparency in interagency contracting.
5. Mismanagement of Contracts at Arlington National Cemetery (July 29,
2010)
Witnesses: John C. Metzler, Jr., Former Superintendent,
Arlington National Cemetery; Thurman Higginbotham, Former
Deputy Superintendent, Arlington National Cemetery; Edward M.
Harrington, Deputy Assistant Secretary (Procurement), Office of
the Assistant Secretary of the Army (Acquisition, Logistics,
and Technology), U.S. Army; Claudia L. Tornblom, Deputy
Assistant Secretary of the Army (Management and Budget), Office
of the Assistant Secretary of the Army (Civil Works), U.S.
Army; Kathryn A. Condon, Executive Director, Army National
Cemeteries Program, U.S. Army.
Overview: After a June 2010 investigation by the Army
Inspector General into unmarked and mislabeled graves at
Arlington National Cemetery, the Subcommittee launched an
investigation in July 2010 into allegations of contract
improprieties that may have contributed to problem.
On July 29, 2010, the Subcommittee held a hearing on the
mismanagement of contracts at the Cemetery. In conjunction with
the hearing, the Subcommittee released a Majority Staff
Memorandum for Members and Staff about the results of its
investigation at the hearing. The Subcommittee's investigation
revealed that the Cemetery spent between $5.5 and $8 million on
contracts to build a system to automate its burial operations
but never obtained a working system. The Subcommittee's
investigation also found that 4,900 to 6,600 graves could be
unmarked or mislabeled, an estimation that far exceeded the
Army Inspector General's estimation.
Chairman McCaskill subpoenaed the Cemetery's former
Superintendent and Deputy Superintendent to attend the hearing
after both individuals declined the Subcommittee's invitations
to testify. During the hearing, the former Deputy
Superintendent invoked his rights under the Fifth Amendment of
the Constitution, and was dismissed from the hearing by
Chairman McCaskill.
The Subcommittee also heard testimony from Army officials
regarding the steps they were taking to correct several newly
identified errors at Arlington, including soldiers buried in
the wrong graves.
To address the issues discussed at the hearing, on
September 28, 2010, Chairman McCaskill, along with Senator
Brown, Senator Lieberman, Senator Collins, and Senator Burr as
original co-sponsors, introduced S. 3860--A Bill to Require
Reports on the Management of Arlington National Cemetery.
B. Afghanistan and Iraq
The Subcommittee held four hearings and one roundtable
related to Federal contracts in Afghanistan and Iraq. The first
hearing was focused on security contracts at the U.S. Embassy
in Kabul, the second hearing was focused on the U.S.
Government's reliance on contractors in Afghanistan, the third
hearing was focused on training contracts for Afghan National
Police Training, and the fourth hearing was focused on the work
of the Special Inspector General for Afghanistan
Reconstruction. The Subcommittee's roundtable reviewed U.S.
Agency for International Development reconstruction and
development contracts in Afghanistan.
1. Allegations of Waste, Fraud, and Abuse in Security Contracts at the
U.S. Embassy in Kabul (June 10, 2009)
Witnesses: William H. Moser, Deputy Assistant Secretary for
Logistics Management, U.S. Department of State; Samuel
Brinkley, Vice President, Homeland and International Security
Services, Wackenhut Services, Inc.
Overview: On May 19, 2009, the Subcommittee began
investigating allegations of misconduct related to private
security contracts at the U.S. Embassy in Kabul. The
Subcommittee reviewed over 5,000 pages of documents submitted
by the State and the contractor, ArmorGroup North America Inc.
(AGNA).
On June 10, 2010, the Subcommittee held a hearing to
question State and AGNA officials about the information
revealed by the Subcommittee's investigation. At the hearing,
the Subcommittee released a Majority Staff Analysis and
previously non-public documents regarding the AGNA contract.
The Subcommittee's analysis included the following troubling
revelations:
AGNA's performance under the contract was so
inadequate that the contracting officer concluded ``I consider
the contract deficiencies [. . .] to endanger performance of
the contract to such a degree that the security of the U.S.
Embassy in Kabul is in jeopardy'';
AGNA's staffing failures had ``deteriorated to a
level that . . . [the lack of personnel] gravely endanger[ed]
performance of guard services in a high-threat environment such
as Afghanistan'';
According to the government, there were
``extended periods of time when the Armorer, Radio Technician,
and Medic positions have been vacant''; and
In inspections conducted as recently as March
2009, at least 18 guards were absent from their posts at the
embassy.
The Department of State defended the Department's decision
to retain AGNA as the contractor and exercise its option to
continue the contract for a second year.
In August 2009, subsequent troubling revelations about the
misconduct of AGNA employees prompted additional inquiries. In
September 2009, Secretary of State Hillary Clinton sent a
letter to Chairman McCaskill stating that a number of AGNA
employees had been terminated and the State's Bureau of
Diplomatic Security had been tasked with providing additional
supervision over the contractor. In December 2009, the State
Department notified the Subcommittee that it would not be
renewing its contract with AGNA for a third option year and
would award a new contract for guard security at the U.S.
Embassy in Kabul by the end of 2010. The Subcommittee continues
to investigate private security contractors, inherently
governmental functions, and other related issues, including the
use of personal services contractors to perform oversight.
To address the issues discussed at the hearing, on February
24, 2010, Senator McCaskill along with Senator Feingold and
Senator Leahy as original co-sponsors, introduced S. 3037, The
Enhancing Oversight and Security at United States Missions Act
of 2010.
2. Afghanistan Contracts: An Overview (December 17, 2009)
Witnesses: Colonel William H. Campbell, III, Director of
Operations, Office of the Under Secretary of Defense
(Comptroller), U.S. Department of Defense; Edward M.
Harrington, Deputy Assistant Secretary (Procurement), U.S.
Army; Charles North, Senior Deputy Director, Afghanistan-
Pakistan Task Force, U.S. Agency for International Development;
Daniel F. Feldman, Deputy Special Representative for
Afghanistan and Pakistan, U.S. Department of State; Jeffrey
Parsons, Executive Director, Army Contracting Command, U.S.
Army, U.S. Department of Defense.
Overview: By December 2009, the United States had spent $23
billion on contracts performed in Afghanistan since 2002. In
addition, over 104,000 Defense Department contractors were in
Afghanistan by that time, with the possibility of as many as
56,000 additional contractors. Following President Obama's
December 1, 2009 announcement of increased troop levels in
Afghanistan, Chairman McCaskill held a hearing to examine
spending and reliance on contractors in Afghanistan.
Witnesses from the Defense Department and the State
Department testified regarding their plans to manage and
oversee this increase in contractors. In general, the hearing
revealed that lessons learned from contracting failures in Iraq
were not being applied in Afghanistan.
The Subcommittee released a Majority Staff Memorandum for
Members and Staff at the hearing.
3. ROUNDTABLE: Business Perspectives on United States Agency for
International Development Reconstruction and Development
Contracts in Afghanistan (February 2, 2010)
Participants: Larry Walker, President, The Louis Berger
Group, Inc.; Bill Van Dyke, President, Black and Veatch Federal
Services Division; Richard Dreiman, President, Chemonics
International, Inc.; Richard Owens, Director of Community
Stabilization, International Relief and Development Inc.; James
Boomgard, President and CEO, Development Alternatives, Inc.;
Richard McCall, Senior Vice President and Chair Council of
Senior Advisors, Creative Associates International; Asif
Shaikh, President, International Resources Group; Patrick
Bryski, Principal, Deloitte LLP.
Overview: On February 2, 2010, the Subcommittee hosted a
roundtable on USAID reconstruction and development contracts in
Afghanistan. During the roundtable, seven company presidents
and one company CEO spoke with Chairman McCaskill about USAID
contracts for road, power plant, infrastructure, agricultural,
and educational development in Afghanistan.
The roundtable was followed by a working session for
participants and Subcommittee staff. Participants agreed that
USAID's oversight of contracts was deficient. In addition,
participants agreed that a lack of central command at the U.S.
Embassy in Kabul was affecting reconstruction and development
efforts.
4. Contracts for Afghan National Police Training (April 15, 2010)
Witnesses: Hon. Gordon S. Heddell, Inspector General, U.S.
Department of Defense; Evelyn R. Klemstine, Assistant Inspector
General for Audits, U.S. Department of State; Hon. David T.
Johnson, Assistant Secretary, Bureau of International Narcotics
and Law Enforcement Affairs, U.S. Department of State; David S.
Sedney, Deputy Assistant Secretary of Defense for Afghanistan,
Pakistan, and Central Asia, Office of the Assistant Secretary
of Defense for Asian and Pacific Security Affairs, U.S.
Department of Defense.
Overview: The hearing examined problems with the Defense
Department's and State's administration of the Afghan National
Police training contract. The hearing was shaped by two
developments: (1) a February 2010 joint audit report by the
Inspectors General for the Defense Department and State
Department that found serious deficiencies in the management of
the contract; and (2) a March 2010 sustention by the Government
Accountability Office of the contractor DynCorp's protest that
the Defense Department's attempt to transfer the contract to an
existing counter-narcoterrorism contract was unauthorized.
At the hearing, the Defense Department Inspector General
Heddell testified that the training currently being provided by
contractors was inadequate. In addition, in June 2009, the
State Department had only one in-country contracting officer's
representative in Afghanistan monitoring the main Afghan
National Police task order.
After the hearing, the Defense Department officials
notified the Subcommittee that the Defense Department planned
to competitively award a new contract by December 2010.
To address the issues discussed at the hearing, Chairman
McCaskill offered an amendment, titled Sense of Congress and
Reports on Training of Afghan National Police, to the FY2011
National Defense Authorization Act.
5. Oversight of Reconstruction Contracts in Afghanistan and the Role of
the Special Inspector General (November 18, 2010)
Witnesses: Hon. Jon T. Rymer, Inspector General, Federal
Deposit Insurance Corporation, and Chair, Audit Committee,
Council of the Inspector General on Integrity and Efficiency;
Hon. Richard W. Moore, Inspector General, Tennessee Valley
Authority, and Chair, Investigation Committee, Council of the
Inspectors General on Integrity and Efficiency; Arnold Fields,
Special Inspector General for Afghanistan Reconstruction; Hon.
Gordon S. Heddell, Inspector General, U.S. Department of State;
Michael G. Carroll, Deputy Inspector General, U.S. Agency for
International Development; Stuart W. Bowen, Jr., Special
Inspector General for Iraq Reconstruction.
Overview: The hearing examined the role of the Special
Inspector General for Afghanistan Reconstruction in providing
independent oversight of contingency contracts in Afghanistan.
The hearing also assessed SIGAR's effectiveness in preventing
and identifying waste, fraud, and abuse of taxpayer dollars.
6. Investigation: The Logistics Civil Augmentation Program (LOGCAP)
The Subcommittee launched an investigation related to the
LOGCAP contract. The investigation is focused on the Department
of Defense's oversight and management lapses of the contract.
The Subcommittee requested and reviewed several hundreds of
pages of documents and received multiple briefings from the
Defense Department officials related to LOGCAP. The
Subcommittee has also moved through its procedures to release
previously non-public information related to LOGCAP.
The Subcommittee continues to investigate LOGCAP.
C. Accountability
The Subcommittee held two hearings related to
accountability. The first hearing was focused on improving the
ability of Inspectors General to combat waste, fraud, and abuse
in Federal contracting and the second hearing was focused on
holding foreign contractors accountable for harming U.S.
personnel.
1. Improving the Ability of Inspectors General to Detect, Prevent, and
Prosecute Contracting Fraud (April 21, 2009)
Witnesses: Hon. Brian D. Miller, Inspector General, General
Services Administration; Hon. Richard L. Skinner, Inspector
General, U.S. Department of Homeland Security; Charles W.
Beardall, Deputy Inspector General for Investigations, U.S.
Department of Defense; J. Anthony Ogden, Inspector General,
U.S. Governmental Printing Office, Chairman of the Legislation
Committee, Council of the Inspectors General Council on
Integrity and Efficiency.
Overview: The hearing examined additional tools needed by
Inspectors General to detect and prosecute contracting fraud.
The Subcommittee has maintained a productive working
relationship with the Inspector General community and continues
to work with individual Inspectors General and the Council of
Inspectors General for Integrity and Efficiency on policy
issues and needed legislation related to Federal contracting.
2. Accountability for Foreign Contractors: The Lieutenant Colonel
Domenic ``Rocky'' Baragona Justice for American Heroes Harmed
By Contractors Act (November 18, 2009)
Witnesses: Hon. Tim Ryan, a Representative in Congress from
the State of Ohio, Dominic Baragona, Father of Lieutenant
Colonel Dominic ``Rocky'' Baragona; Scott Horton, Professor,
Lecturer-in-Law, Columbia Law School; Ralph G. Steinhardt,
Professor of Law and International Affairs, The George
Washington University Law School; Tony West, Assistant Attorney
General, Civil Division, U.S. Department of Justice; Richard T.
Ginman, Deputy Director for Program Acquisition and Contingency
Contracting, Defense Procurement and Acquisition Policy, Office
of the Under Secretary of Defense for Acquisition, Technology,
and Logistics, U.S. Department of Defense; Uldric I. Fiore,
Jr., Suspension and Debarment Official, and Director, Soldier
and Family Legal Services, Office of the Judge Advocate
General, Department of the Army, U.S. Department of Defense.
Overview: On May 19, 2003, Lt. Col. Dominic ``Rocky''
Baragona was killed in Safwan, Iraq, when his vehicle was
struck by a truck driven by an employee of the Kuwait & Gulf
Link Transport Company--a Kuwaiti company with hundreds of
millions of dollars in U.S. contracts and subcontracts. On May
12, 2005, Lt. Col. Baragona's family brought a wrongful death
lawsuit against KGL in Federal court in Georgia and won a $4.9
million default judgment. However, after KGL contested the
judgment on the grounds of personal jurisdiction, the court
found in KGL's favor and vacated the judgment.
On November 17, 2009, Senator McCaskill along with Senator
Collins, Senator Bennett, Senator Brown, Senator Nelson,
Senator Lemieux, and Senator Casey, introduced S. 2782--The
Lieutenant Colonel Dominic ``Rocky'' Baragona Justice for
American Heroes Harmed by Contractors Act, a bill that requires
a foreign entity that enters into a contract over $5 million
with the U.S. Government to consent to personal jurisdiction in
civil suits involving serious bodily injury, rape, or sexual
assault for actions arising out of the performance of the
contract.
The hearing examined the legislation. The hearing also
examined the policy implications of current suspension and
debarment practices throughout the government and whether
agencies and departments were fully utilizing the tools
currently available to them to identify, prevent, and prosecute
wrongdoing by contractors. Finally, the hearing explored legal
ambiguities that are being exploited by foreign entities who
contract with the United States.
In conjunction with the hearing, the Subcommittee released
a review of suspension and debarments across the government.
The data showed that the Federal Government had failed to
exercise its suspension and debarment authority.
3. Investigation: Earmarks
On March 16, 2009, Chairman McCaskill sent a letter to
Secretary Robert Gates requesting information on the award of
contracts for congressional earmarks by the Defense Department.
Since then, the Subcommittee has been working with the Defense
Department to obtain information on the approximately 4,500
earmarks awarded in 2008 and 2009, but has only received
documents related to fewer than 500 earmarks. Although
information relating to both contract awards and earmark
allocations is publicly available through separate databases,
it is not readily accessible--even to the Defense Department
officials.
In the future, the Subcommittee plans to hold a hearing
that examines the extent to which the Defense Department uses
competition in the awarding of contracts for earmarks. The
hearing would also examine the lack of transparency in the
earmark process. In addition, the Subcommittee is considering
legislation that would require such information to be centrally
located in the Federal Procurement Database System.
4. Investigation: Contract Audits at Federal Agencies
On April 9, 2010, Chairman McCaskill sent an agency-wide
letter requesting information on contract audits performed by
22 Federal departments and agencies. Chairman McCaskill
specifically requested information on the costs of such audits,
the organizations performing such audits, and the frequency of
such audits for 2009. Preliminary responses to the letter
indicated a wide discrepancy in the type and number of audits
performed by various agencies. For example, some agencies
perform hundreds of audits per year while other agencies
perform as few as one audit per year.
In the future, the Subcommittee plans to hold a hearing
that would examine the variance in and results of audits
performed by various agencies. The hearing would also examine
whether sufficient oversight is being performed within the
agencies to ensure that taxpayer dollars are not being wasted
on contracts.
5. Investigation: Contractors Hired to Respond to Congress
Only July 6, 2010, Chairman McCaskill sent a second agency-
wide letter requesting information on the use of contractors to
respond to congressional requests at 19 Federal departments and
agencies. Although the Federal Acquisition Regulation prohibits
agencies from using contractors to perform inherently
governmental functions (i.e. drafting congressional testimony
and responses to Congress), information indicates that a
growing number of agencies may be using contractors for such
purposes. For example, the Department of Defense hired a
contractor to respond to the Subcommittee's request for
information on counternarcotics contracts, which raised
questions about the aforementioned FAR position.
The Subcommittee reviewed responses to Chairman McCaskill's
agency-wide letter and determined appropriate next steps.
D. Counternarcotics
The Subcommittee launched one investigation and held one
hearing related to counternarcotics. The investigation and the
hearing were focused on the failure of the Department of
Defense and the State Department to manage contractors for
counternarcotics assistance in Latin America.
1. Counternarcotics in Latin America (May 20, 2010)
Witnesses: Hon. David T. Johnson, Assistant Secretary for
International Narcotics and Law Enforcement Affairs, U.S.
Department of State; William F. Wechsler, Deputy Assistant
Secretary for Counternarcotics and Global Threats, U.S.
Department of Defense.
Overview: The hearing examined Defense Department and State
Department contracts for counternarcotics assistance in Latin
America. A major focus of the hearing was the lack of available
metrics to evaluate contract spending on counternarcotics
activities in Latin America, including both Departments' own
inability to accurately measure spending. For example, the
State Department provided annual reports to Congress which
showed that the State Department paid more than $940 million to
contractors performing work in Colombia alone from 2005 to
2008. However, documents provided to the Subcommittee by the
State Department showed that the State Department has only
spent $360 million on contracts related to counternarcotics
activities in Mexico, Colombia, Peru, Bolivia, Ecuador, Haiti,
Guatemala, and the Dominican Republic combined over the
previous 10 years.
At the hearing, Chairman McCaskill addressed both
Departments' failure to significantly comply with the
Subcommittee's requests for information and documents,
including the possibility of issuing subpoenas for
noncompliance. Witnesses from both Departments committed to
fully complying with the Subcommittee's requests. Currently,
the Subcommittee has received additional documents and
information and is preparing a staff analysis that will
summarize this information for public release.
E. Medicare and Medicaid
The Subcommittee launched one investigation and held one
hearing related to Medicare and Medicaid. The investigation was
focused on contracts with the Medicare Secondary Payer
Recovery. The hearing was focused on the Centers for Medicare
and Medicaid Services management and oversight of contracts.
1. Oversight of Contract Management at the Centers for Medicare and
Medicaid Services (April 28, 2010)
Witnesses: Kay L. Daly, Director, Financial Management and
Assurance, U.S. Government Accountability Office; Rodney L.
Benson, Director, Office of Acquisition and Grants Management,
Centers for Medicare and Medicaid Services, U.S. Department of
Health and Human Services.
Overview: In 2009, the Centers for Medicare and Medicaid
Services spent nearly $4 billion on contracts. In October 2009,
GAO released a report entitled, Centers for Medicare and
Medicaid Services: Deficiencies in Contract Management Internal
Control are Pervasive. Chairman McCaskill was a co-requester of
the report. In January 2010, Chairman McCaskill, requested that
GAO conduct additional work relating to the scope and extent of
CMS contracts.
The hearing examined problems identified with CMS's
management and oversight of these contracts. GAO found that
``pervasive deficiencies'' in CMS contract management (i.e.
weak internal controls, inadequate staffing, and unreliable
data) put CMS at increased risk of improper payments and waste.
2. Investigation: The Medicare Secondary Payer Recovery Contractor
In September 2009, the Subcommittee launched an
investigation into contracts with the Medicare Secondary Payer
Recovery program, a program that was created in 1980 to reduce
Medicare costs. The investigation revealed problems with the
performance of the Medicare Secondary Payer Recovery Contractor
during the first half of 2009. However, the MSPRC significantly
improved its performance during the second half of 2009.
Although internal weaknesses within the MSPR continued, the
MSPRC increased its rate of response to communications and
decreased its backlog of cases.
F. Small Business
The Subcommittee launched one investigation and held one
hearing related to small business. The investigation and the
hearing were focused on contracting preferences for Alaska
Native Corporations within the Small Business Administration's
8(a) program.
1. Contracting Preferences for Alaska Native Corporations (July 16,
2009)
Witnesses: Debra Ritt, Assistant Inspector General for
Auditing, Office of Inspector General, U.S. Small Business
Administration; Joseph Jordan, Associate Administrator, Office
of Government Contracting and Business Development, U.S. Small
Business Administration; Shay Assad, Acting Deputy Under
Secretary of Defense for Acquisition and Technology, U.S.
Department of Defense; Sarah L. Lukin, Executive Director,
Native American Contractors Association; Jacqueline Johnson
Pata, Executive Director, National Congress of American
Indians; Julie Kitka, President, Alaska Federation of Natives;
Mark Lumber, Senior Vice President, Federal Programs, Cirrus
Technology, Inc.; Christina Schneider, Chief Financial Officer,
Purcell Construction Corporation.
Overview: The hearing examined contracting preferences for
Alaska Native Corporations within the SBA's 8(a) program. The
hearing was based on an investigation launched by the
Subcommittee in which 20 requests for information from ANCs and
village corporations were made and over 1,800 pages of
documents submitted in response to these requests were
reviewed.
The witnesses at the hearing responded to questions based
on the findings of the Subcommittee's investigation. The
findings were made public in two Majority Staff Analyses and
included the following:
``Contract awards to Alaska Native Corporations
increased by 916 percent, from $508.4 million in 2000 to $5.2
billion in 2008'';
``Of the contract dollars awarded to ANCs in
2008, 80 percent were performed outside of Alaska in 2008'';
``The majority of the Alaska Native Corporations
surveyed by the Subcommittee exceed the size requirements
applicable to other 8(a) companies;'' 11 out of the 19
companies surveyed ``have had annual revenues higher than the
Small Business Administration's limit since 2002''; and
``The 19 Alaska Native Corporations which
provided information to the Subcommittee employ more than
45,000 individuals throughout their corporations. Of these
individuals, approximately 2,400--5.2 percent--are shareholders
or relatives of shareholders of the employing Corporation. On
average, nearly 95 percent of ANC employees are not ANC
shareholders.''
In conjunction with the Subcommittee's hearing, the
Inspector General of the SBA released a report on July 10, 2009
entitled, ``Participation in the 8(a) Program by Firms Owned by
Alaska Native Corporations.'' Representatives for ANC lobbying
groups criticized both the SBA report and the Subcommittee's
findings.
On October 28, 2009, the FY2010 National Defense
Authorization Act was signed into law and included a provision
that eliminates certain preferences for Alaska Native
Corporations. Section 811 of the law requires Federal agencies
to provide written justification and approval prior to awarding
any sole-source contract over $20 million. Chairman McCaskill
was an outspoken supporter of this provision.
On November 17, 2010, Chairman McCaskill introduced S.
3959--To eliminate the preferences and special rules for Alaska
Native Corporations under the program under section 8(a) of the
Small Business Act.
II. LEGISLATION
The Subcommittee on Contracting Oversight does not have
legislative authority. However, the Subcommittee's
investigations and hearings have revealed the absence of needed
reform in various aspects of Federal procurement law. During
the 111th Congress, Chairman McCaskill introduced the following
legislative proposals in her capacity as a Senator.
A. Enhancing Oversight and Security at United States Missions Act of
2010 (S. 3037)
On February 24, 2010, Senator McCaskill, along with Senator
Feingold and Senator Leahy, introduced S. 3037--The Enhancing
Oversight and Security at United States Missions Act of 2010.
The bill would require the Secretary of State, in coordination
with the Secretary of Defense, to establish a plan to increase
the oversight of private security contractors at Embassies
where Armed Forces are engaged in combat operations. In
particular, the bill would require the following:
A determination of the appropriate ratio of U.S.
security personnel to private security contractors;
A coordinate increase in U.S. security personnel
or decrease in private security contractors;
An establishment of practices to adequately train
personnel and assign oversight responsibility sufficient to
maintain embassy security; and
Annual reports to Congress.
Components of The Enhancing Oversight and Security at
United States Missions Act of 2010 have been adopted and
proposed in Section 842 of the FY2011 National Defense
Authorization Act Section 842 of the FY2011 NDAA amends
existing law to require the head of a contracting activity to
ensure that a ``sufficient'' number of oversight personnel are
assigned to contracts for private security functions in areas
of combat operations. Section 842 would also mandate that the
failure of contractors to comply with certain requirements be
considered in award fees, entered into past performance
databases, and, in cases of failures to comply that were severe
or prolonged, referred to suspension and debarment officials as
a basis for suspension or debarment.
B. Lieutenant Colonel Dominic ``Rocky'' Baragona Justice for American
Heroes Harmed by Contractors Act (S. 2782)
On November 17, 2009, Chairman McCaskill, along with
Senator Collins, Senator Bennett, Senator Brown, Senator Nelson
of Florida, Senator Lemieux, and Senator Casey, re-introduced
S. 2782--The Lieutenant Colonel Dominic ``Rocky'' Baragona
Justice for American Heroes Harmed by Contractors Act. The bill
requires foreign entities that enter into contracts over $5
million with the United States to consent to personal
jurisdiction in civil suits involving serious bodily injury,
rape, or sexual assault for actions arising out of the
performance of the contract. The bill also amends the Federal
Acquisition Regulation to give agencies and departments the
explicit authority to suspend or debar foreign contractors for
evasion of service of process or for failing to appear in court
to answer the covered actions in the bill.
C. Justification and Approval of Sole-Source Contracts. (FY2010
National Defense Authorization Act. Pub. L. 111-84, Sec. 811
Oct. 28, 2009)
On October 28, 2009, the FY2010 National Defense
Authorization Act was signed into law and included a provision
that eliminates certain preferences for Alaska Native
Corporations. Section 811 of the law requires Federal agencies
to provide written justification and approval prior to awarding
any sole-source contract over $20 million. In effect, the law
extends the justification and approval requirements of the
Competition in Contracting Act to sole-source contracts awarded
to ANCs and other entities under the 8(a) program. The law
required implementation of the new requirements by April 2010.
However, to date, the provision has not been implemented and
OMB has delayed further action until it engages in further
consultation with ANCs. In addition, ANC lobbying groups have
worked since the Subcommittee's hearing on the passage of the
legislation to limit the implementation of changes.
Chairman McCaskill was an outspoken supporter of this
provision. At the hearing on July 16, 2009, entitled
``Contracting Preferences for Alaska Native Corporations,'' the
Subcommittee heard testimony relating to the numerous
preferences that allow ANCs and Indian tribes to receive sole-
source contracts above the $3.5 and $5.5 million limits imposed
on other 8(a) participants, without complying with the CICA
requirements. Chairman McCaskill made repeated public requests
to OMB for an explanation as to why it has delayed
implementation of the law. The Subcommittee continues to
explore opportunities for additional legislation to address
other noncompetitive preferences for ANCs.
D. The Acquisition Workforce Improvement Act of 2009 and Federal
Acquisition Institute Improvement Act of 2009 (S. 2901 and S.
2902).
In December 2009, Senator Collins introduced two related
bills to strengthen training and performance in the acquisition
workforce. Chairman McCaskill joined as an original co-sponsor.
The Acquisition Workforce Improvement Act of 2009 would
establish an acquisition management fellows program with
academic and workforce training components. S. 2901--The
Federal Acquisition Institute Improvement Act of 2009 would
enhance acquisition training standards, certification
requirements, and guideline standards. The legislation would
also ensure that the Federal Acquisition Institute received
sufficient budgetary resources to support improved training
across the Federal Government.
The acquisition workforce increased by approximately 15
percent between 2000 and 2008 during the same time in which
contract spending increased over 160 percent to $540 billion.
The acquisition workforce has been strained throughout the
Federal Government, which the Subcommittee has called attention
to in a number of hearings.
E. FY2011 National Defense Authorization Act. S. 3454, Sections 843,
857, and 1216
Chairman McCaskill worked with Members to shape additional
provisions in the FY2011 National Defense Authorization Act
based on problems identified in Subcommittee hearings and
investigations. The following provisions all deal with issues
being investigated by the Subcommittee.
1. Enhancements of Authority of Secretary of Defense to Reduce or Deny
Award Fees to Companies Found to Jeopardize Health or Safety of
Government Personnel (Sec. 843)
Section 843 of the National Defense Authorization Act of
2011 enables the Secretary of Defense to reduce or deny award
fees to companies found to have jeopardized the health and
safety of U.S. Government personnel. Section 843 also gives the
Secretary new authorization to determine fault in cases where
he or she has reason to believe that a contractor, in the
performance of a contract, may have caused serious bodily
injury to or the death of civilian or military personnel.
Section 843 is related to concepts advanced by The Lieutenant
Colonel Dominic ``Rocky'' Baragona Justice for American Heroes
Harmed by Contractors Act.
2. Contractor Logistics Support of Contingency Operations (Sec. 857)
Section 857 of the FY2011 NDAA requires the Defense
Department to plan for the roles and responsibilities
contractors will play as well as the overall manpower and
contractor support anticipated by the military. These issues
are to be analyzed in the Quadrennial Defense Review, a review
by the Defense Science Board, and in the National Military
Strategy. The most recent QDR had almost no discussion of the
implications that reliance on contractors has for the
military's readiness, capabilities, and overall makeup.
3. Sense of Congress and Reports on Training of Afghan National Police
(Sec. 1216)
Section 1216 of the FY2011 National Defense Authorization
Act expresses the sense of Congress that the U.S. Government
should take measurable actions to improve its capacity to
advise and mentor the Afghan National Police and clarify the
law enforcement organization's roles, missions, and
responsibilities for police training and rule of law
operations. This section also requires separate reports from
the following officials and agencies:
A report from the Defense Department Inspector
General on developments in the Afghan National Police training
program;
A report from GAO on the use of U.S. Government
personnel instead of contractors for the training of the Afghan
National Police; and
A report from the Secretary of Defense on the
strategy for police training and rule of law programs in
Afghanistan, Iraq, and elsewhere abroad.
After the Subcommittee's April 15, 2010 hearing on the
Afghan National Police training contract, Chairman McCaskill
took an active role in pressing for the reporting requirements.
F. Civilian Extraterritorial Jurisdiction Act of 2010 (S. 2979)
On February 2, 2010, Senator Leahy, along with Chairman
McCaskill and other members, introduced S. 2979--The Civilian
Extraterritorial Jurisdiction Act of 2010. The bill authorizes
prosecution of civilian and contractor employees for certain
crimes committed while working overseas, and includes
contractor employees employed by or accompanying any U.S.
department or agency other than the Armed Forces. In addition,
the bill requires the Department of Justice to establish
overseas investigative units staffed by FBI and other law
enforcement officials that have the authority to investigate
and make arrests.
CEJA would extend existing law to cover all civilian and
contractor employees working overseas. The Military
Extraterritorial Jurisdiction Act, the precursor to CEJA,
explicitly covers Department of Defense contractors and
subcontractors and, as amended in 2005, all Federal agencies
and their contractors in felony criminal actions. However, MEJA
only applies to the extent that the work of such agencies and
contractors relates to ``supporting the mission of the
Department of Defense overseas.''
On December 31, 2009, U.S. v. Slough et al., a case
involving five former Blackwater employees charged with murder
for the September 2007 shooting deaths of 17 people in Nisour
Square, in Iraq, was dismissed on unrelated grounds. The case
did not address the question of whether defendants, as
contractors with the State Department, could be prosecuted
under existing Federal law, and is being appealed. CEJA would
make such contractor employees subject to future prosecution.
G. A bill to Require Reports on the Management of Arlington National
Cemetery (S. 3860)
On September 28, 2010, Chairman McCaskill introduced S.
3860--To Require Reports on the Management of Arlington
National Cemetery along with Senator Brown, Senator Lieberman,
Senator Collins, and Senator Burr as original co-sponsors. The
bill requires the Secretary of the Army to report to Congress
on the ability of the Cemetery to verify the identity,
location, and burial records for gravesites at the historical
landmark and present plans to remedy any errors found in the
review. The bill also requires the Comptroller General to
present a report to Congress on the management and oversight of
contracts at the Cemetery, including a review of feasibility
and advisability of transferring all or part of the Army's
jurisdiction over Army National Cemeteries to the Veterans
Administration.
On December 4, 2010, the Senate passed an amended version
of S. 3860 by unanimous consent. The bill was sent to the House
on December 6. On December 7, Chairman McCaskill and Senator
Brown sent a letter to Speaker Nancy Pelosi, Republican Leader
John Boehner, and the Chairmen and Ranking Members of the House
Armed Services and Veterans' Affairs Committees, requesting
that the House act to pass the legislation before the close of
the 111th Congress. On December 22, 2010, S. 3860 became Public
Law 111-339.
H. A bill to Eliminate the Preferences and Special Rules for Alaska
Native Corporations under the Program under Section 8(a) of the
Small Business Act (S. 3959)
On November 17, 2010, Chairman McCaskill introduced S.
3959--To Eliminate the Preferences and Special Rules for Alaska
Native Corporations under the Program under Section 8(a) of the
Small Business Act. This legislation will place ANC on equal
footing with other eligible 8(a) program participants.