    [Senate Hearing 108-543]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 108-543

             LEGISLATIVE BRANCH APPROPRIATIONS FOR FISCAL YEAR 2005

    =======================================================================

                                    HEARINGS

                                    before a

                              SUBCOMMITTEE OF THE

                COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE

                          ONE HUNDRED EIGHTH CONGRESS

                                 SECOND SESSION

                                       on

                               H.R. 4755/S. 2666

    AN ACT MAKING APPROPRIATIONS FOR THE LEGISLATIVE BRANCH FOR THE FISCAL
             YEAR ENDING SEPTEMBER 30, 2005, AND FOR OTHER PURPOSES

                                   __________

                 Architect of the Capitol (except House items)
                              Capitol Police Board
                          Congressional Budget Office
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                           Government Printing Office
                              Library of Congress
                                  U.S. Senate

                                   __________

             Printed for the use of the Committee on Appropriations

     Available via the World Wide Web: http://www.access.gpo.gov/congress/
                                     senate

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                     U.S. GOVERNMENT PRINTING OFFICE

    92-158                 WASHINGTON : 2004
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                          COMMITTEE ON APPROPRIATIONS

                         TED STEVENS, Alaska, Chairman
    THAD COCHRAN, Mississippi            ROBERT C. BYRD, West Virginia
    ARLEN SPECTER, Pennsylvania          DANIEL K. INOUYE, Hawaii
    PETE V. DOMENICI, New Mexico         ERNEST F. HOLLINGS, South Carolina
    CHRISTOPHER S. BOND, Missouri        PATRICK J. LEAHY, Vermont
    MITCH McCONNELL, Kentucky            TOM HARKIN, Iowa
    CONRAD BURNS, Montana                BARBARA A. MIKULSKI, Maryland
    RICHARD C. SHELBY, Alabama           HARRY REID, Nevada
    JUDD GREGG, New Hampshire            HERB KOHL, Wisconsin
    ROBERT F. BENNETT, Utah              PATTY MURRAY, Washington
    BEN NIGHTHORSE CAMPBELL, Colorado    BYRON L. DORGAN, North Dakota
    LARRY CRAIG, Idaho                   DIANNE FEINSTEIN, California
    KAY BAILEY HUTCHISON, Texas          RICHARD J. DURBIN, Illinois
    MIKE DeWINE, Ohio                    TIM JOHNSON, South Dakota
    SAM BROWNBACK, Kansas                MARY L. LANDRIEU, Louisiana
                        James W. Morhard, Staff Director
                     Lisa Sutherland, Deputy Staff Director
                  Terrence E. Sauvain, Minority Staff Director
                                     ------

                     Subcommittee on the Legislative Branch

                  BEN NIGHTHORSE CAMPBELL, Colorado, Chairman
    ROBERT F. BENNETT, Utah              RICHARD J. DURBIN, Illinois
    TED STEVENS, Alaska                  TIM JOHNSON, South Dakota
                                         ROBERT C. BYRD, West Virginia
                                           (ex officio)
                               Professional Staff
                              Carolyn E. Apostolou
                         Terrence E. Sauvain (Minority)
                            Drew Willison (Minority)

                             Administrative Support

                                  Erin McHale
                           Nancy Olkewicz (Minority)

                                C O N T E N T S

                                  ----------

                            Thursday, March 4, 2004

                                                                       Page
    General Accounting Office........................................     1
    Government Printing Office.......................................    31
    Congressional Budget Office......................................    41

                            Thursday, March 11, 2004

    Library of Congress..............................................    47

                           Wednesday, March 31, 2004

    U.S. Senate: Office of the Sergeant at Arms and Doorkeeper.......    81
    Capitol Police Board.............................................   113

                            Thursday, April 8, 2004

    U.S. Senate: Office of the Secretary.............................   135
    Architect of the Capitol.........................................   207

             LEGISLATIVE BRANCH APPROPRIATIONS FOR FISCAL YEAR 2005

                                  ----------

                            THURSDAY, MARCH 4, 2004

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 10:58 a.m., in room SD-116, Dirksen
    Senate Office Building, Hon. Ben Nighthorse Campbell (chairman)
    presiding.
        Present: Senators Campbell, Stevens, and Durbin.

                           GENERAL ACCOUNTING OFFICE

    STATEMENT OF DAVID M. WALKER, COMPTROLLER GENERAL
    ACCOMPANIED BY:
            GENE L. DODARO, CHIEF OPERATING OFFICER
            SALLYANNE HARPER, CHIEF ADMINISTRATIVE OFFICER
            STANLEY J. CZERWINSKI, CONTROLLER

              opening statement of senator ben nighthorse campbell

        Senator Campbell. The subcommittee will come to order.
    Senator Durbin is running a little late and will be here in
    just a few minutes.
        Today's hearing is the first of four hearings we plan to
    have to review the fiscal year 2005 legislative branch budget
    request which totals roughly $4 billion.
        Overall, legislative branch agencies have requested a 12
    percent increase over the current fiscal year level. Clearly
    this total level of spending will be very difficult, if not
    impossible, to accommodate in view of the overall budget
    constraints we face. We will be asking all agencies to have
    another look at their budgets to ensure that there have been no
    items requested which are not truly needed next year, and we
    will also be exploring the impact of cutting budgets back to
    current levels, if that is necessary, which it appears to be at
    this point.
        This morning we will take testimony from three agencies:
    the General Accounting Office, the Government Printing Office,
    and the Congressional Budget Office.
        We will hear first from Mr. David Walker, Comptroller
    General. Mr. Walker will be accompanied by Deputy Chief Gene
    Dodaro. Welcome, Gene. And Mr. Stan Czerwinski, GAO's budget
    officer. GAO's budget request of $486 million is a steady-state
    budget, with the exception of the request for a permanent new
    technology assessment capability.
        The GAO will be followed by the Government Printing Office:
    Mr. Bruce James, the Public Printer; accompanied by Mr. William
    Turri, the Deputy Printer; and Steve Shedd, the Chief Financial
    Officer. The GPO has many initiatives underway at this time to
    restructure their agency, including the possible relocation of
    their facility from its present North Capitol Street location.
    The budget request of $151 million includes $25 million for
    transformation efforts, but we do not have a delineation of
    what those transformation efforts involve. It might be very
    difficult to provide the funds without a detailed spending
    plan.
        And finally, we will hear from Mr. Douglas Holtz-Eakin, the
    Director of the Congressional Budget Office, accompanied by Dr.
    Elizabeth Robinson, CBO's new Deputy Director. CBO's budget
    request of $35 million is a 5.5 percent increase over the
    current fiscal year and would support the current staffing
    level of 235 FTE.
        So we welcome everyone this morning. Mr. Walker, if you
    would like to proceed. If you would like to abbreviate your
    comments, we will put your complete testimony in the record.

                        opening remarks of david walker

        Mr. Walker. Thank you, Mr. Chairman. It is a pleasure to be
    here again. On my far right is Stan Czerwinski, who is our
    Controller. To my immediate right is Sallyanne Harper, who is
    our Chief Administrative Officer and Chief Financial Officer,
    and on my immediate left is Gene Dodaro, who is our Chief
    Operating Officer.
        Mr. Chairman, we believe that our fiscal year 2005 budget
    request is both reasonable and responsible. We have asked for a
    4.9 percent increase, primarily to cover automatic pay
    increases and related costs, as well as price level increases.
    This requested level will allow us to maintain our base
    authorized FTEs, maintain operational support at fiscal year
    2004 levels, and continue to meet the needs of the Congress at
    present service levels.
        Our requested budget reflects an offset of almost $5
    million from nonrecurring fiscal year 2004 estimates, and it
    represents a baseline review approach.
        In times of tight budgets and fiscal pressures, I believe
    it is especially important for GAO to lead by example in
    connection with our budget request. We have done so as noted by
    the fact that we are requesting the smallest percentage
    increase of any legislative branch agency. In addition, we have
    helped this subcommittee in your initial efforts to assure that
    other legislative branch agencies ultimately employ a baseline
    review approach in their budget submissions.
        In the years ahead, our support to the Congress will likely
    prove even more critical because of pressures created on our
    Nation caused by large and growing fiscal imbalances. I believe
    that GAO's help will prove to be invaluable as the Congress
    seeks to review, reprioritize, and re-engineer existing
    mandatory and discretionary spending programs and tax policies.
        Maintaining a strong and adequately resourced GAO will also
    help ensure that we can continue to provide an excellent return
    on investment to the Congress and the country. Last year we
    returned $78 for every dollar invested in GAO, number one in
    the world. Nobody is even close.
        Mr. Chairman and members of the subcommittee, I
    respectfully request that you consider the modest nature of our
    request and the unparalleled return on investment the Congress
    and the country receives from your investment in GAO's work. I
    would also respectfully request you consider the fact that many
    independent sources have noted that we at GAO are leading in
    the transformation of how the Government does business, and in
    order to continue to do that, we will need your help and
    reasonable resource levels.

                               prepared statement

        Thank you, Mr. Chairman, Senator Durbin. I would be happy
    to answer any questions you might have.
        [The statement follows:]
                     Prepared Statement of David M. Walker
        Mr. Chairman and Members of the Subcommittee: I am pleased to
    appear before the subcommittee today, having recently completed my
    fifth year as the Comptroller General of the United States and head of
    the U.S. General Accounting Office. GAO exists to support the Congress
    in meeting its constitutional responsibilities and to help improve the
    performance and ensure the accountability of the federal government for
    the benefit of the American people. In the years ahead, our support to
    the Congress will likely prove even more critical because of the
    pressures created by our nation's large and growing long-term fiscal
    imbalance, which is driven primarily by known demographic and rising
    health care trends. These pressures will require the Congress to make
    tough choices regarding what the government does, how it does business,
    and who will do the government's business in the future. GAO's work
    covers virtually every area in which the federal government is or may
    become involved, anywhere in the world. Perhaps just as importantly,
    our work sometimes leads us to sound the alarm over problems looming
    just beyond the horizon--such as our nation's enormous long-term fiscal
    challenges--and help policymakers address these challenges in a timely
    and informed manner.
        My testimony today will focus on GAO's progress during my first
    five years as Comptroller General. I will highlight our (1) fiscal year
    2003 performance and results; (2) efforts to maximize our
    effectiveness, responsiveness, and value; and (3) budget request for
    fiscal year 2005 to support the Congress and serve the American people.
    Following is a summary:
      --The funding we received in fiscal year 2003 allowed us to conduct
            work that addressed many of the difficult issues confronting
            the nation, including diverse and diffuse security threats,
            selected government transformation challenges, and the nation's
            long-term fiscal imbalance. Perhaps the foremost challenge
            facing government decision makers this year was ensuring the
            security of the American people. By providing professional,
            objective, and nonpartisan information and analyses, we helped
            inform the Congress and the executive branch agencies on key
            security issues, such as the nature and scope of threats
            confronting the nation's nuclear weapons facilities, its
            information systems, and all areas of its transportation
            infrastructure, as well as the challenges involved in creating
            the Department of Homeland Security. Our work was also driven
            by changing demographic trends, which led us to focus on such
            areas as the quality of care in the nation's nursing homes and
            the risks to the government's single-employer pension insurance
            program. Our work in these and other areas covered programs
            that involve billions of dollars and touch millions of lives.
            Importantly, in fiscal year 2003, GAO generated a $78 return
            for each $1 appropriated to our agency.
      --With the Congress's support, we have demonstrated that becoming
            world class does not require a substantial increase in the
            number of staff authorized, but rather maximizing the efficient
            and effective use of the resources available to us. We have
            worked with you to obtain targeted funding for areas critical
            to GAO such as information technology, security, and human
            capital management. We are grateful to the Congress for
            supporting our efforts through pending legislation that, if
            passed, would give us additional human capital flexibilities.
            During tight budget times, these flexibilities would allow us,
            among other things, more options to deal with mandatory pay and
            related costs.
      --In keeping with my belief that the federal government needs to
            exercise a greater degree of fiscal discipline, we have kept
            our request to $486 million, an increase of only 4.9 percent
            over fiscal year 2004. I also applaud the Congress's request
            that all legislative branch agencies examine how they could
            work toward a more transparent budget presentation. In keeping
            with the Congress's intent, we are continuing our efforts to
            revamp our budget presentation to make the linkages between
            funding and program areas more clear. I hope that in the future
            the Congress will be able to use such performance information
            to make tough choices on funding, thereby enabling it to avoid
            across-the-board reductions that penalize agencies that
            exercise fiscal discipline and generate high returns on
            investment and real results.
                    fiscal year 2003 performance and results
        GAO is a key source of professional and objective information and
    analysis and, as such, plays a crucial role in supporting congressional
    decision making. For example, in fiscal year 2003, as in other years,
    the challenges that most urgently engaged the attention of the Congress
    helped define our priorities. Our work on issues such as the nation's
    ongoing battle against terrorism, Social Security and Medicare reform,
    the implementation of major education legislation, human capital
    transformations at selected federal agencies, and the security of key
    government information systems all helped congressional members and
    their staffs to develop new federal policies and programs and oversee
    ongoing ones. Moreover, the Congress and the executive agencies took a
    wide range of actions in fiscal year 2003 to improve government
    operations, reduce costs, or better target budget authority based on
    GAO's analyses and recommendations. In fiscal year 2003, GAO served the
    Congress and the American people by helping to identify steps to reduce
    improper payments and credit card fraud in government programs;
    restructure government and improve its processes and systems to
    maximize homeland security; prepare the financial markets to continue
    operations if terrorism recurs; update and strengthen government
    auditing standards; improve the administration of Medicare as it
    undergoes reform; encourage and help guide federal agency
    transformations; contribute to congressional oversight of the federal
    income tax system; identify human capital reforms needed at the
    Department of Defense, the Department of Homeland Security, and other
    federal agencies; raise the visibility of long-term financial
    commitments and imbalances in the federal budget; reduce security risks
    to information systems supporting the nation's critical
    infrastructures; oversee programs to protect the health and safety of
    today's workers; ensure the accountability of federal agencies through
    audits and performance evaluations; and serve as a model for other
    federal agencies by modernizing our approaches to managing and
    compensating our people.
        To ensure that we are well positioned to meet the Congress's future
    needs, we update our 6-year strategic plan every 2 years, consulting
    extensively during the update with our clients in the Congress and with
    other experts (see app. I for our strategic plan framework).
        The following table summarizes selected performance measures and
    targets for fiscal years 1999 through 2005. Highlights of our fiscal
    year 2003 accomplishments and their impact on the American public are
    shown in the following sections.

                        TABLE 1.--SELECTED ANNUAL MEASURES AND TARGETS FOR FISCAL YEARS 1999-2005
                                                  [Dollars in billions]
    ----------------------------------------------------------------------------------------------------------------
                                                                           Fiscal year--
                                             -----------------------------------------------------------------------
               Performance measure              1999     2000     2001     2002     2003     2003     2004     2005
                                               Actual   Actual   Actual   Actual   Target   Actual   Target   Target
    ----------------------------------------------------------------------------------------------------------------
    Financial benefits......................    $20.1    $23.2    $26.4  \1\ $37    $32.5    $35.4    $35.0    $36.0
                                                                              .7
    Other benefits..........................      607      788      799      906      800    1,043  \2\ 900      900
    Past recommendations implemented               70       78       79       79       77       82   \2\ 79       79
     (percent)..............................
    New recommendations made................      940    1,224    1,563    1,950    1,250    2,175  \2\ 1,5    1,500
                                                                                                         00
    Testimonies.............................      229      263      151      216      180      189  \2\ 190      180
    Timeliness (percent)....................       96       96       95       96       98       97       98       98
    ----------------------------------------------------------------------------------------------------------------
    \1\ Changes GAO made to its methodology for tabulating financial benefits in part caused our results to increase
      beginning with the fiscal year 2002 results.
    \2\ On the basis of past performance and expected future work, we revised these targets after we issued our
      fiscal year 2004 performance plan. The original targets were 820 for other benefits, 77 percent for past
      recommendations implemented, 1,250 for new recommendations made, and 200 for testimonies.
     Source: GAO.

    Benefits Reported
        Many of the benefits produced by our work can be quantified as
    dollar savings for the federal government (financial benefits), while
    others cannot (other benefits). Both types of benefits resulted from
    our efforts to provide information to the Congress that helped (1)
    improve services to the public, (2) provide information that resulted
    in statutory or regulatory changes, and (3) improve core business
    processes and advance governmentwide management reforms.
        In fiscal year 2003, our work generated $35.4 billion in financial
    benefits--a $78 return on every dollar appropriated to GAO. The funds
    made available in response to our work may be used to reduce government
    expenditures or reallocated by the Congress to other priority areas.
    Nine accomplishments accounted for nearly $27.4 billion, or 77 percent,
    of our total financial benefits for fiscal year 2003. Six of these
    accomplishments totaled $25.1 billion. Table 2 lists selected major
    financial benefits in fiscal year 2003 and describes the work
    contributing to financial benefits over $500 million.

     TABLE 2.--GAO'S SELECTED MAJOR FINANCIAL BENEFITS FOR FISCAL YEAR 2003
                            [In millions of dollars]
    ------------------------------------------------------------------------
                            Description                             Amount
    ------------------------------------------------------------------------
    Financial benefits exceeding $1 billion:
        Updated the Consumer Price Index (CPI): Recommended            9,200
         that the Bureau of Labor Statistics periodically
         update the expenditure weights of its market basket of
         goods and services used to calculate the CPI to make
         it more timely and representative of consumer
         expenditures. The Bureau agreed to do this every 2
         years, and the CPI for January 2002 reflected the new
         weights. The adjustments have resulted in, among other
         things, lower federal expenditures on programs like
         Social Security that use the CPI to calculate benefits
        Eliminated Medicaid's upper payment limit loophole:            5,900
         Identified a weakness in Medicaid's upper payment
         limit methodology that allowed states to make
         excessive payments to local, government-owned nursing
         facilities and then have the facilities return the
         payments to the states, creating the illusion that
         they made large Medicaid payments in order to generate
         federal matching payments. Closing the loophole
         prevented the federal government from making
         significant federal matching payments to states above
         those intended by Medicaid............................
        Made funds available for lighter-weight weapons                3,900
         systems: Identified the Crusader artillery system as a
         duplicative weapons system that was inconsistent with
         the Department of the Army's plans to transform itself
         into a lightweight combat force. The Department of
         Defense (DOD) terminated the Crusader program,
         resulting in costs avoided............................
        Reduced the cost of federal housing programs: Improved         3,400
         management of the Department of Housing and Urban
         Development's unexpended balances resulting in the
         recapture of unobligated funds........................
        Reduced the cost of DOD's services acquisition process:        1,700
         Examined the acquisition practices of leading
         commercial companies and recommended a more strategic
         approach for acquiring services at DOD, which was
         implemented...........................................
        Avoided costs associated with an increase in the               1,000
         skilled nursing facilities rate: Determined that the
         Congress's increase in the nursing component of
         Medicare's daily rate for skilled nursing facilities
         had little effect on increasing the ratios of nursing
         staff to patients in these facilities. The nursing
         component increase expired on October 1, 2002, and
         despite arguments from the nursing facility industry,
         the nursing component increase has not been reinstated
    Selected financial benefits between $500 million and $1
     billion:
        Recovered Supplemental Security Income (SSI)                     990
         overpayments: Identified weaknesses in the Social
         Security Administration's (SSA) efforts to recover SSI
         overpayments that led to the development of SSA's
         automated reconciliation process......................
        Reduced DOD's implementation risks and purchase costs            780
         for the Navy-Marine Corps intranet: Highlighted the
         need for various management controls related to the
         acquisition and implementation of the Navy-Marine
         Corps intranet. As a result, DOD modified the Navy-
         Marine Corps intranet contract and reduced contract
         amounts in fiscal year 2002 and fiscal year 2003,
         reduced program risks, and increased the likelihood
         that the program will be acquired and implemented
         successfully..........................................
        Ensured Defense Emergency Response funds are better              517
         targeted: Identified millions of dollars in
         unobligated DOD Emergency Response funding, a portion
         of which the Congress rescinded or directed DOD to
         reallocate for other fund purposes....................
    ------------------------------------------------------------------------
    Source: GAO.

        Many of the benefits that flow to the American people from our work
    cannot be measured in dollar terms. During fiscal year 2003, we
    recorded a total of 1,043 other benefits--up from 607 in fiscal year
    1999. As shown in appendix II, we documented instances where
    information we provided to the Congress resulted in statutory or
    regulatory changes, where federal agencies improved services to the
    public and where agencies improved core business processes or
    governmentwide reforms were advanced.
        These actions spanned the full spectrum of national issues, from
    securing information technology systems to improving the performance of
    state child welfare agencies. We helped improve services to the public
    by
      --Strengthening the U.S. visa process as an antiterrorism tool.--Our
            analysis of the U.S. visa-issuing process showed that the
            Department of State's visa operations were more focused on
            preventing illegal immigrants from obtaining nonimmigrant visas
            than on detecting potential terrorists. We recommended that
            State reassess its policies, consular staffing procedures, and
            training program. State has taken steps to adjust its policies
            and regulations concerning the screening of visa applicants and
            its staffing and training for consular officers.
      --Enhancing quality of care in nursing homes.--In a series of reports
            and testimonies since 1998, we found that, too often, residents
            of nursing homes were being harmed and that programs to oversee
            nursing home quality of care at the Centers for Medicare and
            Medicaid Services were not fully effective in identifying and
            reducing such problems. In 2003, we found a decline in the
            proportion of nursing homes that harmed residents but made
            additional recommendations to further improve care.
      --Making key contributions to homeland security.--Drawing on an
            extensive body of completed and ongoing work, we identified
            specific vulnerabilities and areas for improvement to protect
            aviation and surface transportation, chemical facilities, sea
            and land ports, financial markets, and radioactive sealed
            sources. In response to our recommendations, the Congress and
            cognizant agencies have undertaken specific steps to improve
            infrastructure security and improve the assessment of
            vulnerabilities.
      --Improving compliance with seafood safety regulations.--We reported
            that when Food and Drug Administration (FDA) inspectors
            identified serious violations at seafood processing firms, it
            took FDA 73 days on average, well above its 15-day target.
            Based on our recommendations, FDA now issues warning letters in
            about 20 days.
        We helped to change laws in the following ways:
      --We highlighted the National Smallpox Vaccination program
            volunteers' concerns about losing income if they sustained
            injuries from an inoculation. As a result, the Smallpox
            Emergency Personnel Protection Act of 2003 (Public Law No. 108-
            20) provides benefits and other compensation to covered
            individuals injured in this way.
      --We performed analyses that culminated in the enactment of the
            Postal Civil Service Retirement System Funding Reform Act of
            2003 (Public Law No. 108-18), which reduced USPS's pension
            costs by an average of $3 billion per year over the next 5
            years. The Congress directed that the first 3 years of savings
            be used to reduce USPS's debt and hold postage rates steady
            until fiscal 2006.
        We also helped to promote sound agency and governmentwide
    management by
      --Encouraging and helping guide agency transformations.--We
            highlighted federal entities whose missions and ways of doing
            business require modernized approaches, including the Postal
            Service and the Coast Guard. Among congressional actions taken
            to deal with modernization issues, the House Committee on
            Government Reform established a special panel on postal reform
            and oversight to work with the President's Commission on the
            Postal Service on recommendations for comprehensive postal
            reform. Our recommendations to the Coast Guard led to better
            reporting by the Coast Guard and laid the foundation for key
            revisions the agency intended to make to its strategic plan.
      --Helping to advance major information technology modernizations.--
            Our work has helped to strengthen the management of the complex
            multibillion-dollar information technology modernization
            program at the Internal Revenue Service (IRS) to improve
            operations, promote better service, and reduce costs. For
            example, IRS implemented several of our recommendations to
            improve software acquisition, enterprise architecture
            definition and implementation, and risk management and to
            better balance the pace and scope of the program with IRS's
            capacity to effectively manage it.
      --Supporting controls over DOD's credit cards.--In a series of
            reports and testimonies beginning in 2001, we highlighted
            pervasive weaknesses in DOD's overall credit card control
            environment, including the proliferation of credit cards and
            the lack of specific controls over its multibillion-dollar
            purchase and travel card programs. DOD has taken many actions
            to reduce its vulnerabilities in this area.
    Benefits to State and Local Governments
        While our primary focus is on improving government operations at
    the federal level, sometimes our work has an impact at the state and
    local levels. To the extent feasible, in conducting our audits and
    evaluations, we cooperate with state and local officials. At times, our
    work results will have local applications, and local officials will
    take advantage of our efforts. We are conducting a pilot to determine
    the feasibility of measuring the impact of our work on state and local
    governments. The following are examples we have collected during our
    pilot where our work is relevant for state and local government
    operations:
      --Identity theft.--Effective October 30, 1998, the Congress enacted
            the ``Identity Theft and Assumption Deterrence Act of 1998''
            prohibiting the unlawful use of personal identifying
            information, such as names, Social Security numbers, and credit
            card numbers. GAO report GGD-98-100BR is mentioned prominently
            in the act's legislative history. Subsequently, a majority of
            states have enacted identity theft laws. Sponsors of some of
            these state enactments--Alaska, Florida, Illinois, Michigan,
            Pennsylvania, and Texas--mentioned the federal law and/or our
            report. For example, in 1999, Texas enacted SB 46, which is
            modeled after the federal law. Justice officials said that
            enactment of state identity theft laws has multijurisdictional
            benefits to all levels of law enforcement--federal, state, and
            local.
      --Pipeline safety.--Our report GAO-RCED-00-128, Pipeline Safety: The
            Office of Pipeline Safety Is Changing How It Oversees the
            Pipeline Industry, found that the Department of
            Transportation's Office of Pipeline Safety was reducing its
            reliance on states to help oversee the safety of interstate
            pipelines. The report stated that allowing states to
            participate in this oversight could improve pipeline safety. As
            a result, the Office of Pipeline Safety modified its Interstate
            Pipeline Oversight Program for 2001-2002 to allow greater
            opportunities for state participation.
      --Temporary Assistance for Needy Families Grant Program.--We reported
            on key national and state labor market statistics and changes
            in the levels of cash assistance and employment activities in
            five selected states. We also highlighted the fact that the
            five states had faced severe fiscal challenges and had used
            reserve funds to augment their spending above the amount of
            their annual Temporary Assistance for Needy Families block
            grant from the federal government.
    GAO's High-Risk Program
        Issued to coincide with the start of each new Congress, our high-
    risk update lists government programs and functions in need of special
    attention or transformation to ensure that the federal government
    functions in the most economical, efficient, and effective manner
    possible. This is especially important in light of the nation's large
    and growing long-term fiscal imbalance. Our latest report, released in
    January 2003, spotlights more than 20 troubled areas across
    government.\1\ Many of these areas involve essential government
    services, such as Medicare, housing programs, and postal service
    operations that directly affect the lives and well-being of the
    American people.
    ---------------------------------------------------------------------------
        \1\ U.S. General Accounting Office, High Risk Series: An Update,
    GAO-03-119 (Washington, D.C.: January 2003).
    ---------------------------------------------------------------------------
        Our high-risk program, which we began in 1990, includes five high-
    risk areas added in 2003: implementing and transforming the new
    Department of Homeland Security; modernizing federal disability
    programs; federal real property, Medicaid program; and Pension Benefit
    Guaranty Corporation's (PBGC) single-employer pension insurance
    program.\2\
    ---------------------------------------------------------------------------
        \2\ We added this issue in July 2003 after we published the January
    2003 update.
    ---------------------------------------------------------------------------
        In fiscal year 2003, we also removed the high-risk designation from
    two programs: the Social Security Administration's Supplemental
    Security Income program, and Asset Forfeiture programs administered by
    the U.S. Departments of Justice and the Treasury.
        In fiscal 2003, we issued 208 reports and delivered 112 testimonies
    related to high-risk areas, and our related work resulted in financial
    benefits totaling almost $21 billion. Our sustained focus on high-risk
    problems also has helped the Congress enact a series of governmentwide
    reforms to strengthen financial management, improve information
    technology, and create a more results-oriented and accountable federal
    government. The President's Management Agenda for reforming the federal
    government mirrors many of the management challenges and program risks
    that we have reported on in our performance and accountability series
    and high-risk updates, including a governmentwide initiative to focus
    on strategic management of human capital.
        Following GAO's designation of federal real property as a high-risk
    issue, the Office of Management and Budget (OMB) has indicated its
    plans to add federal real property as a new program initiative under
    the President's Management Agenda. OMB recently issued an executive
    order on federal real property that addresses many of GAO's concerns,
    including the need to better emphasize the importance of government
    property to effective management. We have an ongoing dialog with OMB
    regarding the high-risk areas, and OMB is working with agency officials
    to address many of our high-risk areas. Some of these high-risk areas
    may require additional authorizing legislation as one element of
    addressing the problems.
        Our fiscal year 2003 high-risk list is shown in table 3.

                       TABLE 3.--GAO'S 2003 HIGH-RISK LIST
    ------------------------------------------------------------------------
                                                                   Year
                         High-risk area                         designated
                                                                 high-risk
    ------------------------------------------------------------------------
    Addressing challenges in broad-based transformations:
        Strategic human capital management \1\..............            2001
        U.S. Postal Service transformation efforts and long-            2001
         term outlook \1\...................................
        Protecting information systems supporting the                   1997
         federal government and the nation's critical
         infrastructures....................................
        Implementing and transforming the new Department of             2003
         Homeland Security..................................
        Modernizing federal disability programs \1\.........            2003
        Federal real property \1\...........................            2003
    Ensuring major technology investments improve services:
        Federal Aviation Administration (FAA) air traffic               1995
         control modernization..............................
        IRS business systems modernization..................            1995
        DOD systems modernization...........................            1995
    Providing basic financial accountability:
        DOD financial management............................            1995
        Forest Service financial management.................            1999
        FAA financial management............................            1999
        IRS financial management............................            1995
    Reducing inordinate program management risks:
        Medicare program \1\................................            1990
        Medicaid program \1\................................            2003
        Earned income credit noncompliance..................            1995
        Collection of unpaid taxes..........................            1990
        DOD support infrastructure management...............            1997
        DOD inventory management............................            1990
        HUD single-family mortgage insurance and rental                 1994
         assistance programs................................
        Student financial aid programs......................            1990
        Pension Benefit Guaranty Corporation's (PBGC) single-           2003
         employer pension insurance program.................
    Managing large procurement operations more efficiently:
        DOD weapon systems acquisition......................            1990
        DOD contract management.............................            1992
        Department of Energy contract management............            1990
        NASA contract management............................            1990
    ------------------------------------------------------------------------
    \1\ Additional authorizing legislation is likely to be required as one
      element of addressing this high-risk area.
     Source: GAO.

    Testimonies
        During fiscal year 2003 GAO executives testified at 189
    congressional hearings--sometimes with very short notice--covering a
    wide range of complex issues. Testimony is one of our most important
    forms of communication with the Congress; the number of hearings at
    which we testify reflects, in part, the importance and value of our
    expertise and experience in various program areas and our assistance
    with congressional decision making. The following figure highlights, by
    GAO's three external strategic goals for serving the Congress, examples
    of issues on which we testified during fiscal year 2003.

        While the vast majority of our products--97 percent--were completed
    on time for our congressional clients and customers in fiscal year
    2003, we slightly missed our target of providing 98 percent of them on
    the promised day. We track the percentage of our products that are
    delivered on the day we agreed to with our clients because it is
    critical that our work be done on time for it to be used by
    policymakers. Though our 97 percent timeliness rate was a percentage
    point improvement over our fiscal year 2002 result, it was still a
    percentage point below our goal. As a result, we are taking steps to
    improve our performance in the future by encouraging matrix management
    practices among the teams supporting various strategic goals and
    identifying early those teams that need additional resources to ensure
    the timely delivery of their products to our clients.
           maximizing gao's effectiveness, responsiveness, and value
        The results of our work were possible, in part, because of the
    changes we have made to maximize the value of GAO. With the Congress's
    support, we have demonstrated that becoming world class does not
    require substantial staffing increases, but rather maximizing the
    efficient and effective use of the resources available to us. Since I
    came to GAO, we have developed a strategic plan, realigned our
    organizational structure and resources, and increased our outreach and
    service to our congressional clients. We have developed and revised a
    set of congressional protocols, developed agency and international
    protocols, and better refined our strategic and annual planning and
    reporting processes. We have worked with you to make changes in areas
    where we were facing longer-term challenges when I came to GAO, such as
    in the critical human capital, information technology, and physical
    security areas. We are grateful to the Congress for supporting our
    efforts through pending legislation that, if passed, would give us
    additional human capital flexibilities that will allow us, among other
    things, to move to an even more performance-based compensation system
    and help to better position GAO for the future. As part of our ongoing
    effort to ensure the quality of our work, this year a team of
    international auditors will perform a peer review of GAO's performance
    audit work issued in calendar year 2004.
    Making GAO's Work Accessible to the American People
        We continued our policy of proactive outreach to our congressional
    clients, the press, and the public to enhance the visibility of our
    products. On a daily basis we compile and publish a list of our current
    reports. This feature has more than 18,000 subscribers, up 3,000 from
    last year. We also produced an update of our video on GAO, ``Impact
    2003.'' Our external Web site continues to grow in popularity, having
    increased the number of hits in fiscal year 2003 to an average of 3.4
    million per month, 1 million more per month than in fiscal year 2002.
    In addition, visitors to the site are downloading an average of 1.1
    million files per month. As a result, demand for printed copies of our
    reports has dramatically declined, allowing us to phase out our
    internal printing capability.
    Promoting Sound Financial Management and Improving Strategic Management
        For the 17th consecutive year, GAO's financial statements have
    received an unqualified opinion from our independent auditors. We
    prepared our financial statements for fiscal year 2003 and the audit
    was completed a month earlier than last year and a year ahead of the
    accelerated schedule mandated by OMB. For a second year in a row, the
    Association of Government Accountants awarded us a certificate of
    excellence; this year the award was for the fiscal year 2002 annual
    performance and accountability report.
    Aligning GAO's Workforce and Mission Needs
        Given our role as a key provider of information and analyses to the
    Congress, maintaining the right mix of technical knowledge and
    expertise as well as general analytical skills is vital to achieving
    our mission. Because we spend about 80 percent of our resources on our
    people, we need excellent human capital management to meet the
    expectations of the Congress and the nation. Accordingly, in the past
    few years, we have expanded our college recruiting and hiring program
    and focused our overall hiring efforts on selected skill needs
    identified during our workforce planning effort and to meet succession
    planning needs. For example, we identified and reached prospective
    graduates with the required skill sets and focused our intern program
    on attracting those students with the skill sets needed for our analyst
    positions. Our efforts in this area were recognized by Washingtonian
    magazine, which listed GAO as one of the ``Great Places to Work'' in
    its November 2003 issue. Continuing our efforts to promote the
    retention of staff with critical skills, we offered qualifying
    employees in their early years at GAO student loan repayments in
    exchange for their signed agreements to continue working at GAO for 3
    years.
        We also have begun to better link compensation, performance, and
    results. In fiscal year 2002 and 2003, we implemented a new performance
    appraisal system for our analyst, attorney, and specialist staff that
    links performance to established competencies and results. We evaluated
    this system in fiscal year 2003 and identified and implemented several
    improvements, including conducting mandatory training for staff and
    managers on how to better understand and apply the performance
    standards, and determining appropriate compensation. We will implement
    a new competency based appraisal system, pay banding and a pay for
    performance system for our administrative professional and support
    services staff this fiscal year.
        To train our staff to meet the new competencies, we developed an
    outline for a new competency-based and role- and task-driven learning
    and development curriculum that identified needed core and elective
    courses and other learning resources. We also completed several key
    steps to improve the structure of our learning organization, including
    hiring a Chief Learning Officer and establishing a GAO Learning Board
    to guide our learning policy, to set specific learning priorities, and
    to oversee the implementation of a new training and development
    curriculum.
        We also drafted our first formal and comprehensive strategic plan
    for human capital to communicate both internally and externally our
    strategy for enhancing our standing as a model professional services
    organization, including how we plan to attract, retain, motivate, and
    reward a high-performing and top-quality workforce. We expect to
    publish the final plan this fiscal year. Our Employee Advisory Council
    is now a fully democratically elected body that advises GAO's senior
    executives on matters of interest to our staff. We also established a
    Human Capital Partnership Board to gather opinions of a cross section
    of our employees about upcoming initiatives and ongoing programs. The
    15-member board will assist our Human Capital Office in hearing and
    understanding the perspectives of its customers--our staff.
        In addition, we will continue efforts to be ready to implement the
    new human capital authorities included in legislation currently pending
    before the Senate. This legislation, if passed, would give us more
    flexibility to deal with mandatory pay and related costs during tight
    budgetary times.
    Managing Our Information Technology Resources
        Our resourceful management of information technology was recognized
    when we were named one of the ``CIO (Chief Information Officer) 100''
    by CIO Magazine, recognizing excellence in managing our information
    technology (IT) resources through ``creativity combined with a
    commitment to wring the most value from every IT dollar.'' We were one
    of three federal agencies named, selected from over 400 applicants,
    largely representing private sector firms. In particular, we were cited
    for excellence in asset management, staffing and sourcing, and building
    partnerships, and for implementing a ``best practice''--staffing new
    projects through internal ``help wanted'' ads.
        We have expanded and enhanced the IT Enterprise Architecture
    program we began in fiscal year 2002. We formally established an
    Enterprise Architecture oversight group and steering committee to
    prioritize our IT business needs, provide strategic direction, and
    ensure linkage between our IT Enterprise Architecture and our capital
    investment process. We implemented a number of user friendly Web-based
    systems to improve our ability to obtain feedback from our
    congressional clients, facilitate access to our information for the
    external customer, and enhance productivity for the internal customer.
    Among the new and enhanced Web-based systems were an application to
    track and access General Counsel work by goal, team, and attorney; a
    Web site on emerging trends and issues to provide information for our
    teams and offices as they consult with the Congress; and an automated
    tracking application for our staff to monitor the status of products to
    be published.
        In addition, we developed and released a system to automate an
    existing data collection and analysis process, greatly expanding our
    annual capacity to review DOD weapons systems programs. As a result, we
    were able to increase staff productivity and efficiency and enhance the
    information and services provided to the Congress. In the past, we were
    able to complete a review annually of eight DOD weapons systems
    programs. In fiscal year 2003 we reviewed 30 programs and reported on
    26. Within the next year, that number will grow to 80 per year.
    Increasing Information Security
        We recognize the ongoing, ever present threat to our shared IT
    systems and information assets and continue to promote awareness of
    this threat, maintain vigilance, and develop practices that protect
    information assets, systems, and services. As part of our continuing
    emergency preparedness plan, we upgraded the level of
    telecommunications services between our disaster recovery site and
    headquarters, expanded our remote connectivity capability, and improved
    our response time and transmission speed. To further protect our data
    and resources, we drafted an update to our information systems security
    policy, issued network user policy statements, hardened our internal
    network security, expanded our intrusion detection capability, and
    addressed concerns raised during the most recent network vulnerability
    assessment.
        We plan to continue initiatives to ensure a secure environment,
    detect intruders in our systems, and recover in the event of a
    disaster. We are also continuing to make the investments necessary to
    enhance the safety and security of our staff, facilities, and other
    assets for the mutual benefit of GAO and the Congress. In addition, we
    plan to continue initiatives designed to further increase employees'
    productivity, facilitate knowledge sharing, and maximize the use of
    technology through tools available at the desktop and by reengineering
    the systems that support our business processes.
    Providing a Safe and Secure Workplace
        On the basis of recommendations resulting from our physical
    security evaluation and threat assessment, we continue to implement
    initiatives to improve the security and safety of our building and
    personnel. In terms of the physical plant improvements, we upgraded the
    headquarters fire alarm system and installed a parallel emergency
    notification system. We completed a study of personal protective
    equipment, and based on the resulting decision paper, we have
    distributed escape hoods to GAO staff. We have also made a concerted
    effort to secure the perimeter and access to our building. Several
    security enhancements will be installed in fiscal year 2004, such as
    vehicle restraints at the garage ramps; ballistic-rated security guard
    booths; vehicle surveillance equipment at the garage entrances; and
    state-of-the-art electronic security comprising intrusion detection,
    access control, and closed-circuit surveillance systems.
    Preparing for Peer Review
        A team of international auditors, led by the Office of the Auditor
    General of Canada, will conduct a peer review for calendar year 2004 of
    our performance audit work. This entails reviewing our policies and
    internal controls to assess the compliance of GAO's work with
    government audit standards. The review team will provide GAO with
    management suggestions to improve our quality control systems and
    procedures. Peer reviews will be conducted every 3 years.
             gao's fiscal year 2005 request to support the congress
        GAO is requesting budget authority of $486 million for fiscal year
    2005. The requested funding level will allow us to maintain our base
    authorized level of 3,269 full-time equivalent (FTE) staff to serve the
    Congress, maintain operational support at fiscal year 2004 levels, and
    continue efforts to enhance our business processes and systems. This
    fiscal year 2005 budget request represents a modest increase of 4.9
    percent over our fiscal year 2004 projected operating level, primarily
    to fund mandatory pay and related costs and estimated inflationary
    increases. The requested increase reflects an offset of almost $5
    million from nonrecurring fiscal year 2004 initiatives, including
    closure of our internal print plant, and $1 million in anticipated
    reimbursements from a planned audit of the Securities and Exchange
    Commission's (SEC) financial statements. Our requested fiscal year 2005
    budget authority includes about $480 million in direct appropriations
    and authority to use $6 million in estimated revenue from reimbursable
    audit work and rental income.
        To achieve our strategic goals and objectives for serving the
    Congress, we must ensure that we have the appropriate human capital,
    fiscal, and other resources to carry out our responsibilities. Our
    fiscal year 2005 request would enable us to sustain needed investments
    to maximize the productivity of our workforce and to continue
    addressing key management challenges: human capital, and information
    and physical security. We will continue to take steps to ``lead by
    example'' within the federal government in these and other critical
    management areas.
        If the Congress wishes for GAO to conduct technology assessments,
    we are also requesting $545,000 to obtain four additional FTEs and
    contract assistance and expertise to establish a baseline technology
    assessment capability. This funding level would allow us to conduct one
    assessment annually and avoid an adverse impact on other high priority
    congressional work.
        A summary of the requested changes between our fiscal year 2004 and
    2005 budget is reflected in table 4:

                           TABLE 4.--SUMMARY OF REQUESTED CHANGES FOR FISCAL YEAR 2005 BUDGET
    ----------------------------------------------------------------------------------------------------------------
                                                                                                        Cumulative
                            Budget category                               FTEs            Amount        percentage
                                                                                                          change
    ----------------------------------------------------------------------------------------------------------------
    Fiscal year 2004 resources: \1\
        Appropriation..............................................  ..............        $457,606   ..............
        Estimated revenue (offsetting collections).................  ..............          $5,971   ..............
                                                                    ------------------------------------------------
          Total fiscal year 2004 resources.........................           3,269        $463,577   ..............
                                                                    ================================================
    Fiscal year 2005 requested changes:
        Mandatory pay and related costs............................  ..............         $21,821              4.7
        Costs to maintain current operating levels.................  ..............          $4,007              5.5
        Nonrecurring fiscal year 2004 costs........................  ..............         ($4,499)  ..............
        New financial audit responsibility for SEC.................  ..............         ($1,000)  ..............
        Continuing improvements/new initiatives....................  ..............          $2,203   ..............
                                                                    ------------------------------------------------
          Subtotal increased funding required to support GAO         ..............         $22,532              4.9
           operations..............................................
                                                                    ================================================
    Fiscal year 2005 budget authority required to support GAO opera-          3,269        $486,109   ..............
       tions.......................................................
    Less: Estimated revenue (offsetting collections)...............           3,269         ($6,119)  ..............
                                                                    ------------------------------------------------
          Fiscal year 2005 appropriation...........................  ..............        $479,990   ..............
    Establish a baseline technology assessment capability..........               4            $545   ..............
                                                                    ------------------------------------------------
          Total fiscal year 2005 appropriation.....................           3,273        $480,535   ..............
    ----------------------------------------------------------------------------------------------------------------
    \1\ Includes rescission of 0.59 percent ($2,751).
     Source: GAO.

                               concluding remarks
        We are grateful to the Congress for providing support and resources
    that have helped us in our quest to be a world class professional
    services organization. The funding we received in fiscal year 2004 is
    allowing us to conduct work that addressed many difficult issues
    confronting the nation. By providing professional, objective, and
    nonpartisan information and analyses, we help inform the Congress and
    executive branch agencies on key issues, and covered programs that
    continue to involve billions of dollars and touch millions of lives.
        I am proud of the outstanding contributions made by GAO employees
    as they work to serve the Congress and the American people. In keeping
    with my strong belief that the federal government needs to exercise
    fiscal discipline, our budget request for fiscal year 2005 is modest,
    but would maintain our ability to provide first class, effective, and
    efficient support to the Congress and the nation to meet 21st century
    challenges in these critical times.
        This concludes my statement. I would be pleased to answer any
    questions the Members of the Subcommittee may have.
        Appendix I: Serving the Congress--GAO's Strategic Plan Framework

       Appendix II: GAO Accomplishments That Helped Change Laws, Improve
                     Services, or Promote Sound Management
    GAO Efforts That Helped to Change Laws and/or Regulations
        Consolidated Appropriations Resolution, 2003, Public Law 108-7.--
    The law includes GAO's recommended language that the administration's
    competitive sourcing targets be based on considered research and sound
    analysis.
        Smallpox Emergency Personnel Protection Act of 2003, Public Law
    108-20.--GAO's report on the National Smallpox Vaccination program
    highlighted volunteers' concerns about losing income if they sustained
    injuries from an inoculation. This statute provides benefits and other
    compensation to covered individuals injured in this way.
        Postal Civil Service Retirement System Funding Reform Act of 2003,
    Public Law 108-18.--Analyses performed by GAO and OPM culminated in the
    enactment of this law that reduces USPS's pension costs by an average
    of $3 billion per year over the next 5 years. The Congress directed
    that the first 3 years of savings be used to reduce USPS's debt and
    hold postage rates steady until fiscal 2006.
        Accountability of Tax Dollars Act of 2002, Public Law 107-289.--A
    GAO survey of selected non-CFO Act agencies demonstrated the
    significance of audited financial statements in that community. GAO
    provided legislative language that requires 70 additional executive
    branch agencies to prepare and submit audited annual financial
    statements.
        Emergency Wartime Supplemental Appropriations Act, 2003, Public Law
    108-11.--GAO assisted congressional staff with drafting a provision
    that made available up to $64 million to the Corporation for National
    and Community Service to liquidate previously incurred obligations,
    provided that the Corporation reports overobligations in accordance
    with the requirements of the Antideficiency Act.
        Intelligence Authorization Act for Fiscal Year 2003, Public Law
    107-306.--GAO recommended that the Director of Central Intelligence
    report annually on foreign entities that may be using U.S. capital
    markets to finance the proliferation of weapons, including weapons of
    mass destruction, and this statute instituted a requirement to produce
    the report.
    GAO Efforts That Helped to Improve Services to the Public
        Strengthening the U.S. Visa Process as an Antiterrorism Tool.--Our
    analysis of the U.S. visa-issuing process showed that the Department of
    State's visa operations were more focused on preventing illegal
    immigrants from obtaining nonimmigrant visas than on detecting
    potential terrorists. We recommended that State reassess its policies,
    consular staffing procedures, and training program. State has taken
    steps to adjust its policies and regulations concerning the screening
    of visa applicants and its staffing and training for consular officers.
        Enhancing Quality of Care in Nursing Homes.--In a series of reports
    and testimonies since 1998, we found that, too often, residents of
    nursing homes were being harmed and that programs to oversee nursing
    home quality of care at the Centers for Medicare and Medicaid Services
    were not fully effective in identifying and reducing such problems. In
    2003, we found a decline in the proportion of nursing homes that harmed
    residents but made additional recommendations to further improve care.
        Making Key Contributions to Homeland Security.--Drawing upon an
    extensive body of completed and ongoing work, we identified specific
    vulnerabilities and areas for improvement to protect aviation and
    surface transportation, chemical facilities, sea and land ports,
    financial markets, and radioactive sealed sources. In response to our
    recommendations, the Congress and cognizant agencies have undertaken
    specific steps to improve infrastructure security and improve the
    assessment of vulnerabilities.
        Improving Compliance with Seafood Safety Regulations.--We reported
    that when Food and Drug Administration (FDA) inspectors identified
    serious violations at seafood processing firms, it took FDA 73 days on
    average, well above its 15-day target. Based on our recommendations,
    FDA now issues warning letters in about 20 days.
        Strengthening Labor's Management of the Special Minimum Wage
    Program.--Our review of this program resulted in more accurate
    measurement of program participation and noncompliance by employees and
    prevented inappropriate payment of wages below the minimum wage to
    workers with disabilities.
        Reducing National Security Risks Related to Sales of Excess DOD
    Property.--We reported that DOD did not have systems and procedures in
    place to maintain visibility and control over 1.2 million chemical and
    biological protective suits and certain equipment that could be used to
    produce crude forms of anthrax. Unused suits (some of which were
    defective) and equipment were declared excess and sold over the
    Internet. DOD has taken steps to notify state and local responders who
    may have purchased defective suits. Also, DOD has taken action to
    restrict chemical-biological suits to DOD use only--an action that
    should eliminate the national security risk associated with sales of
    these sensitive military items. Lastly, DOD has suspended sales of the
    equipment in question pending the results of a risk assessment.
        Protecting the Retirement Security of Workers.--We alerted the
    Congress to potential dangers threatening the pensions of millions of
    American workers and retirees. The pension insurance program's ability
    to protect workers' benefits is increasingly being threatened by long-
    term, structural weaknesses in the private-defined, pension benefit
    system. A comprehensive approach is needed to mitigate or eliminate the
    risks.
        Improving Mutual Fund Disclosures.--To improve investor awareness
    of mutual fund fees and to increase price competition among funds, we
    identified alternatives for regulators to increase the usefulness of
    fee information disclosed to investors. Early in fiscal year 2003, the
    Securities and Exchange Commission issued proposed rules to enhance
    mutual fund fee disclosures using one of our recommended alternatives.
    GAO Efforts That Helped to Promote Sound Agency and Governmentwide
            Management
        Encouraging and Helping Guide Agency Transformations.--We
    highlighted federal entities whose missions and ways of doing business
    require modernized approaches, including the Postal Service, and the
    Coast Guard. Among congressional actions taken to deal with
    modernization issues, the House Committee on Government Reform
    established a special panel on postal reform and oversight to work with
    the President's Commission on the Postal Service on recommendations for
    comprehensive postal reform. We also reported this year on the Coast
    Guard's ability to effectively carry out critical elements of its
    mission, including its homeland security responsibilities. We
    recommended that the Coast Guard develop a blueprint for targeting its
    resources to its various mission responsibilities and a better
    reporting mechanism for informing the Congress on its effectiveness.
    Our recommendations led to better reporting by the Coast Guard and laid
    the foundation for key revisions the agency intended to make to its
    strategic plan.
        Helping DOD Recognize and Address Business Modernization
    Challenges.--Several times we have reported and testified on the
    challenges DOD faces in trying to successfully modernize about 2,300
    business systems, and we made a series of recommendations aimed at
    establishing the modernization management capabilities needed to be
    successful in transforming the department. DOD has implemented some key
    architecture management capabilities, such as assigning a chief
    architect and creating a program office, as well as issuing the first
    version of its business enterprise architecture in May 2003. In
    addition, DOD has revised its system acquisition guidance. By
    implementing our recommendations, DOD is increasing the likelihood that
    its systems investments will support effective and efficient business
    operations and provide for timely and reliable information for decision
    making.
        Helping to Advance Major Information Technology Modernizations.--
    Our work has helped to strengthen the management of the complex,
    multibillion-dollar information technology modernization program at the
    Internal Revenue Service (IRS) to improve operations, promote better
    service, and reduce costs. For example, IRS implemented several of our
    recommendations to improve software acquisition, enterprise
    architecture definition and implementation, and risk management and to
    better balance the pace and scope of the program with its capacity to
    effectively manage it.
        Improving Internal Controls and Accountability over Agency
    Purchases.--Our work examining purchasing and property management
    practices at FAA identified several weaknesses in the specific controls
    and overall control environment that allowed millions of dollars of
    improper and wasteful purchases to occur. Such weaknesses also
    contributed to many instances of property items not being recorded in
    FAA's property management system, which allowed hundreds of lost or
    missing property items to go undetected. Acting on our findings, FAA
    established key positions to improve management oversight of certain
    purchasing and monitoring functions, revised its guidance to strengthen
    areas of weakness and to limit the allowability of certain
    expenditures, and recorded assets into its property management system
    that we identified as unrecorded.
        Strengthening Government Auditing Standards.--Our publication of
    the Government Auditing Standards in June 2003 provides a framework for
    audits of federal programs and monies. This comes at a time of urgent
    need for integrity in the auditing profession and for transparency and
    accountability in the management of scarce resources in the government
    sector. The new revision of the standards strengthens audit
    requirements for identifying fraud, illegal acts, and noncompliance,
    and gives clear guidance to auditors as they contribute to a government
    that is efficient, effective, and accountable to the people.
        Supporting Controls over DOD's Credit Cards.--In a series of
    reports and testimonies beginning in 2001, we highlighted pervasive
    weaknesses in DOD's overall credit card control environment, including
    the proliferation of credit cards and the lack of specific controls
    over its multibillion dollar purchase and travel card programs. We
    identified numerous cases of fraud, waste, and abuse and made 174
    recommendations to improve DOD's credit card operations. DOD has taken
    many actions to reduce its vulnerabilities in this area.

        Senator Campbell. Do any of your colleagues have any
    comments or they are just resources?
        Mr. Walker. They are here to answer questions.
        Senator Campbell. Senator Durbin, do you have an opening
    statement?
        Senator Durbin. Yes, I do. Thank you, Mr. Chairman.
        [The statement follows:]

                Prepared Statement of Senator Richard J. Durbin

        Mr. Chairman, thank you for scheduling today's hearing, the
    first of four budget oversight hearings to be held by the
    Legislative Branch Subcommittee this year. I'm glad we're all
    here and ready to begin working on this year's budget. Based on
    the events of last week, this is obviously going to be a very
    challenging year. I'm very happy to see that we are moving
    ahead with the hearing over on this side of the Capitol.
        Mr. Chairman, I am happy to be working with you on this
    important bill again this year. I think we did a good job
    working together last year and finishing the bill in a timely
    manner. With any luck, we can do so again this year.
        This is an important Subcommittee. There are 12 other
    Appropriations Subcommittees that fund all of the Executive
    Branch Agencies and Departments. The Legislative Branch has
    this one Subcommittee in which we need to fund all of the tools
    and resources required of a co-equal branch of government.
        Today we are going to hear from three important Legislative
    Branch agencies, the General Accounting Office, the Government
    Printing Office, and the Congressional Budget Office. I join
    Chairman Campbell in welcoming David Walker, the Comptroller
    General of the United States, Bruce James, the U.S. Public
    Printer, and Douglas Holtz-Eakin, the Director of the
    Congressional Budget Office to today's hearing.
        Gentlemen, I know I don't have to tell you that this is
    going to be a very challenging year for this Committee. The
    budget constraints under which we are expected to work seem
    unrealistic to say the least.
        However, it is important to the Members of this
    Subcommittee that you have the resources you need to do your
    jobs effectively and efficiently.
        To the extent that any of your budget requests have holes
    in them which could negatively impact your performance during
    fiscal year 2005, I hope you will share those concerns with us.
        First, Mr. Walker, I want you to know how much I appreciate
    everything you do for us here in the Senate. I particularly
    appreciate the guidance I have received from you and your staff
    on matters relating to the Capitol Visitor Center. I know this
    has been a tremendous task, but I think it is extremely
    important for Members to have access to your external oversight
    of this project as we make decisions about how to move forward
    on the CVC. I hope you will spend several minutes today
    discussing the GAO Human Capital Reform Act, which was approved
    in the House last week and will now be voted on in the Senate.
    This legislation will certainly give you broader flexibility in
    constructing your workforce. I look forward to hearing how this
    works for you and if you think it is worth pursuing in other
    federal agencies.
        Mr. James, you are doing a tremendous job as Public
    Printer. I am looking forward to hearing your testimony about
    your plans to relocate the Government Printing Office. You
    certainly have a vision for the future of the GPO and I hope
    you will walk us through it. I would also like to hear a little
    about your voluntary separation incentive program. The 10
    percent staff reduction and savings of $21.7 million was very
    impressive, and I understand that you are about to undergo
    another voluntary separation incentive program in April.
        Mr. Holtz-Eakin, I see you have a relatively flat budget,
    consisting mainly of increases in salaries and benefits. The
    Congressional Budget Office does great work in providing
    important information to the Congress. Over the years I have
    had concerns about your experiment with the dynamic
    scorekeeping initiative and I would appreciate it if you would
    provide the subcommittee with an update on where this
    experiment stands.
        Mr. Chairman, I will conclude here and request that my
    entire statement, as well as a series of questions, be made a
    part of the record.

                       STRATEGIC HUMAN CAPITAL MANAGEMENT

        Senator Campbell. We will go to a couple of questions.
        In looking at your testimony, Mr. Walker, the GAO listed
    strategic human capital management as among its top high risk
    issues for the Federal Government. Can you tell me what that
    involves in laymen's terms?
        Mr. Walker. What it involves is making sure that we have
    the right number of people with the right skills and knowledge
    in the right agencies doing the right things. It also means
    modernizing Federal management practices for how we treat
    people. It also means civil service reforms in order to provide
    management with reasonable flexibility to make decisions while
    incorporating adequate safeguards to prevent abuse of employees
    and also making sure that we have certain principles that are
    timeless in nature that apply across Government so we do not
    have the balkanization of the civil service, among other
    things, Mr. Chairman.

                              PAY-FOR-PERFORMANCE

        Senator Campbell. That sounds commendable.
        Under your current pay-for-performance system, how do you
    determine how many people will be given pay raises, and who
    makes that decision? Are the increases all tied to performance?
        Mr. Walker. Well, first, we have several categories of
    employees at GAO.
        Senator Campbell. How many employees are there at GAO?
        Mr. Walker. About 3,260. With regard to our categories, we
    have our auditors, analysts, and investigators. That is one
    category. That comprises over 70 percent of our employees. We
    have attorneys, which is another category, and then we have our
    administrative, professional and support staff. The auditors,
    investigators, and analysts have been involved in pay-for-
    performance since the late 1980's. The attorneys have also been
    involved in pay-for-performance since the late 1980's. The
    administrative, professional and support staff are moving to a
    pay-for-performance (PFP) system. Right now they are under the
    current GS system, which provides for periodic and optional
    quality step increases. We have designed a new competency-based
    performance appraisal system for them as well as a pay-for-
    performance system. So, for next fiscal year, almost all of our
    employees will be under a pay-for-performance system. Those not
    in PFP are our wage grade individuals.
        We have a modern, effective, and credible competency-based
    performance appraisal system, which provides for a meaningful
    distinction in performance among all individuals, and is tied
    to our strategic plan. It is focused on the results that we
    want to deliver for the Congress and the country.

                               RATING PERFORMANCE

        Senator Campbell. Does the immediate supervisor do the
    rating of the performance?
        Mr. Walker. Yes, Mr. Chairman. There is a designated
    performance manager. That designated performance manager will
    come up with a proposed rating, but then there are a number of
    review processes that take place in order to provide reasonable
    assurance that there is consistency, equity and
    nondiscrimination in how we go about completing the process.
    There is reporting all the way up to the Executive Committee,
    which involves myself, my two colleagues on my immediate right
    and left, as well as our general counsel. There is also
    transparency with regard to results. We post the results,
    maintaining privacy, but the overall results, so that all of
    our employees can see what the results are.
        We are clearly leading the Government in this regard, Mr.
    Chairman. There is no doubt about it.

                        GAO HUMAN CAPITAL FLEXIBILITIES

        Now, the last thing I would mention is we do have
    legislation that has already passed the House. It has passed
    the Senate once. It is coming back to the Senate because the
    House version was slightly different. That bill would give us
    the ability to improve our pay-for-performance system. It has
    broad-based bipartisan and bicameral support. We are hoping
    that the Senate will pass it via unanimous consent in the near
    future.

                             TRAINING GAO EMPLOYEES

        Senator Campbell. Tell the committee a little bit about the
    training for fiscal year 2005, which is about a 4 percent
    increase over 2004. What does that training include? What kind
    of training is it and do you have a strategic plan for the
    training? And how much of that is directly related to
    maintaining technical skills? Just give us a little information
    about it.
        Mr. Walker. Well, as you know, Mr. Chairman, we are a
    professional services and knowledge-based organization. We are
    only as good as our people, and therefore, we have to do
    everything that we can to attract, retain, and train our
    people.
        During this past year, we hired Carol Willett, who is our
    Chief Learning Officer and who formerly was a top training
    official at the CIA. She has been working with the Executive
    Committee and all of our employees and others to modernize our
    training and learning curriculum.
        Four percent is, I think, a modest increase, but it is only
    the hard dollars. In other words, that is only the dollars that
    we actually spend on consultants or outside activities. We
    obviously invest a lot more in the way of time in helping to
    execute our training program.
        We are basically training on professional standards. We are
    training on technical matters, including subject matter
    expertise. We are training on leadership skills. We are
    training on changed management experience. So it is a very
    comprehensive curriculum. Our objective is to be world-class in
    this regard, and I think we are headed there.
        Mr. Dodaro. Senator, one additional comment on the training
    at GAO. One-third of our employees right now have been with GAO
    less than 5 years because of changing demographics and bringing
    in new people. So training this next generation of people is
    very important to build our institutional knowledge for the
    Congress. It is very important to keep that up.

                            EFFECT OF FUNDING FREEZE

        Senator Campbell. We understand about fast turnovers. We
    have them here too.
        Well, let me ask you, as I am going to ask all three
    panels. You heard me say we are going to have some limited
    funds and we might not be able to increase the amount that you
    need. What happens if we cannot? How is this going to impact
    your budget if we have to have a freeze in spending at the
    current level?
        Mr. Walker. Well, Mr. Chairman, to a great extent it
    depends upon what other actions Congress takes. For example, if
    you look at our proposed increase, which is the smallest of any
    legislative branch entity, 4.9 percent, most of that is
    mandatory increases. For example, we were told to include in
    our request a 3.5 percent increase in compensation for all of
    our employees. So if Congress ends up mandating that we have to
    give an automatic pay increase to all of our employees and
    since 81 percent of our costs represent payroll costs, then it
    is going to be extremely difficult for us to deal with a flat-
    line budget.
        There are things that we have started to look at as to what
    we might be able to defer or cancel, but the fact of the matter
    is that when 81 percent of our costs represent people costs, we
    do not have a whole lot of flexibility. We have to start
    talking about how many people we can have.
        Senator Campbell. So if we have a freeze in the budget, you
    are going to have to reduce your manpower.
        Mr. Walker. We may have to reduce our manpower. We would
    obviously only do that as a last resort, but I think it could
    be possible. If Congress mandates pay increases and does not
    fund those pay increases, it is going to make it that much
    worse.
        But I will also reinforce that our human capital
    legislation that is pending before the Senate at the present
    point in time is of critical importance not only to keep us in
    the lead in human capital reform, but to give us additional
    flexibility to deal with the difficult budget situation next
    year. It is critically important.

                              GAO TRAVEL PATTERNS

        Senator Campbell. Okay, thank you. That was my last
    question, but I would like you to provide for the record
    something about your travel which, as I understand, seems to be
    relatively high for the number of people that are employed. If
    you would send it over to us. I would like to know the number
    of people who traveled, the average cost of the trip, the
    average duration of the trip, and the number of people that
    went on each trip, and how much travel was spent on training,
    the number of trips that were made overseas and why they went
    overseas, and a number of other things.
        Mr. Walker. I will be happy to provide it, Mr. Chairman. I
    would note for the record on a preliminary basis it is my
    understanding that our per capita travel costs are actually
    down compared with where they were 10 years ago, but I will be
    happy to provide all that information and any explanations.
        [The information follows:]

        Question. It seems as though GAO's travel budget is very
    high considering the number of people employed by the agency.
    Your request for fiscal 2005 looks like it would average over
    $3,500 per person. Why is travel so high?
        Answer. Our congressional mandates and requests require us
    to follow the federal dollar no matter where it goes--across
    our expansive country or across the globe. As a world-class
    professional services organization, we rely on travel to (1)
    meet our professional standards, including generally accepted
    governmental auditing standards; (2) conduct our work in
    supporting the Congress; and (3) provide staff technical
    training needed to comply with minimum annual continuing
    professional education requirements. We collect original
    information, directly observe program activities first hand,
    and have high standards in the conduct of our work that require
    adequate standards of evidence. Travel provides the means to
    conduct first-hand research that contributes to effective
    oversight of federal programs. We conduct our work in an
    unbiased manner that usually means we take responsibility for
    gathering the relevant data, rather than relying on material
    provided by others. Our credibility is enhanced by what we
    learn on travel. The ability to ``be on the ground'' increases
    the value and credibility of our work. Also, we are often able
    to obtain various types of evidence, e.g., access to internal
    agency databases that would not be available at a distance.
    First-hand observation and data gathering also helps us make
    decisions about data reliability when we observe or talk to
    those persons who are responsible for entering the data. Also,
    travel provides developmental opportunities for inexperienced
    analysts that can only be gained from on-site work.
        GAO is committed to gaining as much as possible from
    travel. We weigh many factors before approving engagement
    travel. We strive to be as knowledgeable as possible on the
    issues before conducting fieldwork. We assess the overall cost
    of each trip, including staff time, as well as travel dollars.
    We also judiciously prioritize the use of funds and assess
    possible alternatives to travel. We actively focus on reducing
    costs by limiting the number of travelers; minimizing time
    spent on per diem; using alternative, more cost-effective
    airports and indirect flights to reduce transportation costs;
    and consolidating purposes to avoid multiple trips.
        GAO drastically reduced travel spending in the mid-1990s
    due to budget constraints. Travel spending, as a percentage of
    our total budget, has remained relatively flat since then at
    less than 3 percent. In fiscal year 1995, our travel per capita
    cost averaged $3,632 in 2004 dollars--slightly higher than our
    estimated fiscal year 2004 travel per capita cost of $3,482.
        Recently, we convened a task force of senior managers to
    further review our travel practices and identify ways to
    improve our effectiveness and efficiency. The task force will
    be making recommendations to the Comptroller General and the
    Executive Committee later this year.
        Question. For the record, can you give the committee a
    detailed analysis showing the following? The number of people
    who traveled in fiscal year 2003.
        Answer. In fiscal year 2003, 2,324 staff traveled--over 70
    percent of our staff on board at the end of the fiscal year.
    Staff that conduct fieldwork and gather data conduct the
    majority of our travel. Typically, they are recurring
    travelers.
        Question. What was the average duration of each trip?
        Answer. The average duration per trip in fiscal year 2003
    was 4 days.
        Question. What was the average number of people that went
    on each trip?
        Answer. In fiscal year 2002, the average number of staff
    per trip was 2. Generally, most engagement related trips
    require a minimum of 2 staff to ensure data integrity and the
    reliability of interview write-ups. Other travel may only
    involve 1 GAO employee.
        Question. What was the average cost per trip?
        Answer. The average cost per trip was $1,014 in fiscal year
    2003.
        Question. How much travel was spent to attend conferences
    not directly associated with a specific job? How much travel
    was spent for training?
        Answer. In fiscal year 2003, we spent 7 percent of our
    travel funds to support training and development activities,
    including conferences and speeches, many of which were related
    to specific jobs. Presently, we do not segregate the cost for
    each of these activities, but plan to do so in the future.
    These trips allow staff to attend training and professional
    conferences to gain and share information, as well as to
    represent GAO in their professional capacity.
        Question. What was the number of trips that were made
    overseas and why?
        Answer. In fiscal year 2003, 380 trips were made outside
    the contiguous United States to areas such as Afghanistan and
    Iraq. Our International Affairs and Trade team conducted travel
    to assess peacekeeping transitions, review the U.S. public
    diplomacy, monitor sensitive exports, review refugee
    protections, assess embassy conditions, review ocean container
    security, and assess the global health fund. Travel by other
    teams and offices included issues related to joint strike
    fighter allies, foreign military sales shipments, foreign
    schools, port security, force protection, contractors on the
    battlefield, plutonium production reactors and radioactive
    sources, international aviation consumer benefits, postal work-
    sharing, border security, and collaboration with the other
    Supreme Audit Institutions.
        Question. What has been the average increase over the past
    five years in per diem and transportation costs?
        Answer. Per diem costs represent about sixty-two percent of
    our total travel costs. Between fiscal years 2001 and 2003, in
    the 20 major cities that we travel to most often, per diem
    costs increased an average of 4 percent, while domestic
    airfares increased an average of almost 7 percent from
    Washington, D.C., and international airfares increased an
    average of 10 percent. Between fiscal years 2001 and 2003, per
    diem costs increased 18 percent in Atlanta, 16 percent in
    Chicago, 23 percent in Denver, 25 percent in Seattle, and 21
    percent in Washington, D.C. Since fiscal year 1999,
    transportation costs have increased almost 40 percent.

                             TECHNOLOGY ASSESSMENT

        Senator Campbell. Thank you.
        Would you mind if I yield to the chairman?
        Senator Durbin. No, of course, not.
        Senator Campbell. Before we turn to our ranking member, I
    would like to yield to the chairman of the full committee.
    Senator Stevens, do you have any comments or questions?
        Senator Stevens. Well, first to express my regret for your
    decision yesterday, Mr. Chairman.
        Senator Campbell. My granddaughter, 4 years old, is very
    happy with it.
        Senator Stevens. I was just going to say you would like to
    get to know your grandchildren before they enter college, which
    is what my experience has been.
        Mr. Walker, I note that you are going to have four
    additional staff devoted to establishing a technology
    assessment capability. Now, I am one of the few survivors of
    the Office of Technology Assessment Board. It was one of the
    most controversial boards that we ever had, and it brought in
    the private sector, it brought in Government, it brought in
    academia, and the oversight of Members of the House and the
    Senate.
        Being what you are, an office that serves the Congress,
    both the House and the Senate, and knowing the propensity for
    these issues to involve horrendous political controversies, why
    are you doing this?
        Mr. Walker. Well, Senator, first, it was not our idea. The
    fact of the matter is there are a number of parties in Congress
    and individuals on both ends of the Hill and both sides of the
    aisle who are interested in some limited technology assessment
    capability. They specifically asked us to include a proposal
    for consideration by the Congress as to whether or not if there
    was some limited technology assessment capability, what we
    thought would make sense.
        Our view, Senator, is this is a decision for the Congress
    to make. I think there was a general view that it does not
    necessarily make sense to create a new entity, and to the
    extent that there was an existing entity within the legislative
    branch that could meet this need, that GAO was the logical
    entity to do it.
        The additional FTE's and the $545,000 would be for
    additional skills that we think we would need in order to be
    able to properly address this.
        But it is really up to the Congress as to whether or not
    you want to expand our mission for us to do this.
        Senator Stevens. We have two shared staffs, the GAO and the
    Congressional Research Service. We had a meeting yesterday of
    the Joint Committee of the Library, which I am honored to be
    chairman of, and we discovered yesterday that CRS has hired
    four technology assessment scientists.
        Now, I would respectfully suggest that you should take this
    issue to the Government Affairs Committee and let both Houses
    review this. Obviously, with the loss of the Technology
    Assessment Board concept, we do need in Congress some
    substantial advice on technology assessment. Actually the old
    Board came out of the SST controversy, and we decided we did
    not have the capability. We reviewed that and created a Board
    that assisted us for some time.
        I personally favor restoring the Board and having some
    Members of Congress in constant oversight of what is going on
    on a bipartisan basis and a bicameral basis. But I do not think
    that either entity of the Congress should proceed to fill this
    gap without some direction from the Congress itself. Enough
    said on that.
        On your pay-for-performance concept, did you generate that
    or was that pursuant to an act of Congress?

                         SOURCE OF PAY-FOR-PERFORMANCE

        Mr. Walker. No. This is at our generation, Senator. We have
    been a leader in the Federal Government for years in pay-for-
    performance, and we are looking to provide additional
    flexibility for pay-for-performance. We have also been a leader
    in the Federal Government in the so-called broad-banding
    concept which is moving away from the 15 General Schedule (GS)
    levels and to have flatter and more flexible classification
    systems and pay systems. So we have been in this business for a
    while, Senator.
        Senator Stevens. Again, I remember when I was chairman of
    the Government Affairs Committee, we had China Lake and San
    Diego experiments on the whole concept of unit management
    rather than directed management by law. But we had some
    parameters from the Congress in setting it up. You do not have
    any parameters. Right?
        Mr. Walker. Well, Senator, we actually do. And the other
    thing is----
        Senator Stevens. Where do you have it from?
        Mr. Walker. Well, we had legislation in 1980 that gave us
    the authority to go to broad-banding and additional pay-for-
    performance. We had legislation in the year 2000, and now we
    have legislation pending before the Senate, the GAO Human
    Capital Reform Act of 2003. It has actually already passed the
    Senate once, but the House passed a bill that was slightly
    different, and so now we have for consideration by the Senate
    that legislation, which is of critical importance to, number
    one, help us to continue to make progress on pay-for-
    performance, and second, to give us additional flexibility if
    we have a tight budget year next year.
        Senator Stevens. All right. My memory is that the past
    performances ended up with the chiefs being able to divide the
    money for performances and the Indians sitting there at the
    desks and not having annual increases. I would be very
    interested to see how you are going to balance the rights of
    those who are permanent employees from the temporary super
    stars you have got.
        Mr. Walker. Senator, I would be happy to provide you some
    information. We have, I think, successfully addressed that
    issue. There is no such thing, as you know, as a perfect
    performance appraisal system, but I clearly believe, Senator,
    that we are in the lead in the Federal Government in this
    regard. I would be happy to provide you some additional data
    and statistics with regard to this.

                                FEDERAL DEFICIT

        Senator Stevens. My staff tells me that you have expressed
    some rather strong views on the deficit. Is that right?
        Mr. Walker. Well, Senator, let me tell you what I have
    done. As you know, I am the audit partner on the consolidated
    financial statements of the U.S. Government. My comments really
    are twofold. One, that if you look at how we keep score, both
    as it relates to financial reporting, the financial statements
    of the U.S. Government, which were just released, I might add,
    last Friday for fiscal year 2003, that it does not provide a
    full and complete picture of our true financial condition. For
    example, it does not adequately consider the difference between
    promised Social Security benefits and promised Medicare
    benefits and the resources that are there, the payroll taxes,
    et cetera. So we actually have huge unfunded commitments that
    are not given enough transparency.
        I have also noted concern about the fact that given known
    demographic trends, the retirement of the baby boom generation
    and rising health care costs, that we are likely to face a
    structural deficit in future years that is going to require the
    Congress to take a look at entitlement programs, discretionary
    spending, and tax policy in the way that you deem appropriate
    to try to address that gap.
        Senator Stevens. Have you addressed the lack of a capital
    budget for the United States?
        Mr. Walker. I have touched on that somewhat, Senator. One
    of the problems we have is the way that we keep score is
    problematic, and one of the challenges that we have, as you
    know, Senator, is we treat capital transactions the same way
    that we do operating expenses.
        There are different ways that one could approach that. You
    would not necessarily have to have a capital budget, but as you
    yourself have noted, in the case of trying to make major
    capital purchases, we need to figure out how we can go about
    doing that in a way to recognize that we need to modernize our
    platforms, we need to modernize our infrastructure, and those
    are investments that end up inuring benefits over a number of
    years rather than just in the year that you appropriate the
    money.
        Senator Stevens. I do not want to prolong this, but I
    showed to a group of Senators yesterday a chart that I had of
    the infrastructure investment by China per year and the
    increase in infrastructure investment of the United States per
    year, and it has declined. We are supposed to be involved in a
    world economy, competing globally. If we continue to take the
    position that the Federal Government should not spend for the
    infrastructure that is necessary for growth, then by definition
    we will not have any growth. And I think we face a challenge
    internationally in terms of our place in the global marketplace
    that cannot be handled unless we address the subject of a
    capital budget and, if necessary, the concept of bonding some
    of that expansion. So I would welcome your review of that.
        Again, I am still on the Government Affairs Committee. I
    hope to raise this before the Government Affairs Committee so
    that we might consider it after the election. It is not
    something we address in an election year. But clearly, we
    cannot deal with this situation, and I mentioned it this
    morning in another committee. When we have energy development
    in Alaska, we have to take our roads allowances for our
    highways and build the roads to that energy development. In any
    other place in the world, the government provides
    infrastructure. As a matter of fact, if you want to build a
    building in China, you go to one entity and get one permit and
    you outline the necessity for your infrastructure and it is
    there within literally weeks. You could not build a building in
    this town in less than 4 years. So I do think we either get on
    to the capital budget concept and infrastructure renewal--the
    bridges we have and interstate highways were built in
    Eisenhower's day, and many of them are decaying and are really
    seriously in need of replacement or modernization.
        So I would welcome your comments on these things. I do not
    think we should become deficit blind, and if we do not wake up,
    we are going to be a third class power, not only militarily but
    economically.
        Mr. Walker. Senator, I would love to meet with you sometime
    on this, and we have done work on this in the past, as you
    know. So I would welcome the opportunity.
        Senator Stevens. I would welcome the opportunity to work
    with you on the technology assessment activity, but I would
    urge you to go to Government Affairs and get some outline so
    later we do not have a political squabble over who you have
    hired and what they have done.
        Mr. Walker. We will do it.
        Senator Stevens. Mr. Dodaro?
        Mr. Dodaro. Senator, that is a good idea and we will pursue
    that, but I just want to note for the record that we were
    required to do a pilot in the technology assessment area 2
    years ago. We did one, and we were required to have an
    evaluation of it by outside parties.
        Senator Stevens. Who required it?
        Mr. Dodaro. It was required by the Congress in our
    appropriation bill. We did it on biometrics.
        Senator Stevens. I do remember that.
        Mr. Dodaro. Yes, and we were deemed to have done it
    successfully, but it required some additional changes. And we
    were kind of viewed as an interim gap for the Congress, with
    CRS providing quick turnaround using secondary research, and
    the National Academy of Sciences doing long-term studies. GAO
    was looked at as a potential option to meet an intermediary
    need.
        Senator Stevens. If we are not careful, though, we are
    going to have different arms of the Congress giving us
    different advice on the same technology.
        Mr. Dodaro. Yes, exactly, Senator. We do not dispute your
    concerns about this. I think it is important to work it
    through.
        Senator Stevens. Thank you very much, Mr. Chairman. Thank
    you, Senator Durbin.
        Senator Campbell. We will now turn to Senator Durbin.

                              RETURN ON INVESTMENT

        Senator Durbin. I just wanted to make one observation. I
    want to thank Mr. Walker and all those in the GAO. I note that
    you have, in your testimony, acknowledged that the GAO has had
    a $78 return on every dollar appropriated. Have you considered
    taking over the thrift savings plan?
        Mr. Walker. It is not in our line of business.
        Senator Durbin. If we had a G fund and it was a GAO fund,
    that return?
        Mr. Walker. Some have suggested we ought to do an IPO, but
    I do not think that is appropriate.
        Senator Durbin. Two questions I would like to ask you. One
    is related to technology. It is my impression that the
    technology of the United States Senate is two steps behind the
    world and three steps behind the House. I happen to live with
    House Members and I hear what they are doing. It just amazes me
    that there is such a dichotomy and divergence here between the
    technology that is being used on the other side of the Hill and
    what we are using in the Senate. We seem to be late to the
    party time and again. I will not dwell on that other than to
    say I am going to send you a note and ask you to please look
    into this because I think that there are things that, for some
    reason, we are very slow to come to in changes here.
        Let me ask you one specific question. I feel very strongly
    about the human capital issue and the fact that to attract the
    best and brightest of the new young men and women who are
    available requires some attentiveness to the issue of student
    loans. I have found that time and again that some of the very
    best people cannot afford to make the Government service choice
    because of their student loan indebtedness.
        Now, I created this idea a few years ago. I have to tell
    you candidly that I do not think it got off to a strong start
    in the Senate because, frankly, no one wanted to take on the
    responsibility of deciding how to establish standards. Have you
    used this program in GAO and can you tell me whether or not you
    think it has value to you in terms of human capital?

                            STUDENT LOAN REPAYMENTS

        Mr. Walker. Senator, I believe we were the first agency in
    the Federal Government to adopt the student loan repayment
    program. We are the second largest user of student loan
    repayments in the entire Federal Government as far as the
    number of student loan repayments and the amount of dollars
    involved. Number one is the State Department. Needless to say,
    we are a lot smaller than the State Department.
        To give you just some statistics off the top, last year we
    gave about $1.2 million--pardon me--last year, fiscal year
    2003, $945,000 in student loan repayments, that averaged about
    $4,000 each.
        We have criteria that we set up where we look at the nature
    of the position, what the skills and knowledge are for the
    position. As you know, there are statutory limits as to how
    much you can do in a given year and how much you can do over a
    period of time.
        One of the things that we have done is, in addition to
    trying to attract and retain critical skills, we have really
    structured our student loan repayment program to try to help us
    maximize the chance that we can keep top new talent for at
    least 3 years. And the reason I say that is that our statistics
    show over time that if we can keep people for 3 years, then
    many times we can keep them for many years because they
    understand what public service is all about. They understand
    the difference they can make at GAO. They understand that we
    are a very unique place where you will be challenged your
    entire career and you can work in different areas and yet still
    work for the same entity. And it has been extremely successful.
    It is a very popular program. It is very successful, and we are
    using it strategically to help us attract, retain, and motivate
    top talent.

                        TAX FORGIVENESS OF STUDENT LOANS

        Senator Durbin. The second thing I will be asking the GAO
    is to take a look at the student loan redemption or forgiveness
    programs across the board, which I have some pride of
    authorship. But I also want to be candid. I do not think they
    are being applied fairly and evenly in all agencies. I think we
    ought to try to establish some common standards and what you
    have just described sounds like a good start. So that will be
    my second request of you.
        Mr. Walker. Thanks, Senator. One thing I would mention that
    would be helpful and it would involve an amendment to the
    Internal Revenue Code, which obviously raises a jurisdictional
    issue, but as you know, right now the student loan repayment is
    on a taxable basis. We could really leverage these dollars
    quite a bit if these were nontaxable because actually what we
    have right now is a situation where if somebody gets a student
    loan repayment, they have to include it in their income. If
    they end up leaving within a period of time, they have to pay
    back the full gross amount, in other words, including the
    taxes. It is a way that you could end up potentially further
    leveraging the dollars without appropriating additional money,
    but it would involve an amendment to the tax code.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senator Durbin. Thanks very much. Thanks, Mr. Chairman.
        Senator Campbell. Thank you and we thank this panel for
    appearing.
        [The following questions were not asked at the hearing, but
    were submitted to the Office for response subsequent to the
    hearing:]
             Questions Submitted by Senator Ben Nighthorse Campbell
        Question. You are requesting about $4 million for training in
    fiscal year 2005. Does this include both the cost of training provided
    by GAO's internal staff or is it only training provided by contractors?
        Answer. The requested amount includes (1) contractor costs to
    develop and/or provide training, (2) tuition costs to enable GAO-
    sponsored groups or individuals to participate in job-related courses
    offered by private and public vendors, and (3) costs for training
    manuals and online tutorials. It does not include the time cost of
    training provided to or received by GAO staff.
        Question. What kind of training is provided by contractors and what
    is done by GAO's internal staff?
        Answer. Training that addresses development of core analytic
    skills, GAO policies, standards, and culture, and quality assurance
    procedures and practices are developed in-house using GAO subject
    matter experts and adjunct faculty. Professional development topics
    that are more general in nature, such as coaching, teambuilding, or
    project management, are outsourced. We seek to provide a blend of face-
    to-face classroom interaction, online learning and web-based
    performance support tools. Learning programs delivered in each of these
    ways have been developed in-house, developed jointly with outside
    contractors or consultants, and purchased from outside vendors.
        Question. How many people has GAO dedicated to its internal
    training function, and what is the cost of this effort?
        Answer. GAO has about 15 staff, at an estimated cost of $1.9
    million, assigned to its internal training function. These staff are
    responsible for overseeing contractor training development and
    delivery; developing training materials; coordinating training delivery
    to GAO staff; providing subject matter expertise, conducting training
    courses, and assessing course development and content; and working with
    GAO managers and staff to identify options for maintaining and
    enhancing course offerings.
        Question. How much of that is directly related to maintaining or
    enhancing technical skills? How much is directly related to supervisory
    and management training?
        Answer. GAO's total investment in training approximates that spent
    by comparable professional services organizations. Our request provides
    funding for development and delivery of courses in our newly revised
    curriculum not only to maintain individual professional competence, but
    also to enhance it, thus promoting a work force that continually
    improves its skills and knowledge. To this end, we require analyst and
    specialist employees complete 80 hours of continuing professional
    education credits every 2 years. The proposed new mandatory curriculum
    for analyst staff includes 256 hours to maintain or enhance technical
    skills through orientation to GAO processes and customers, core
    analytic skills training, and professional development at an estimated
    cost of about $2 million. This training is critically important because
    about 38 percent of our analyst staff have 5 years or less with GAO.
    Also, about 172 hours of training in the new mandatory curriculum will
    focus on leadership development for senior and management-level analyst
    staff at an estimated cost of $687,000. Teams and offices provide
    training on substantive professional development and subject matter
    expertise at an estimated cost of $1.6 million.
        We plan to develop a mandatory curriculum for our administrative,
    professional, and support staff which will include components for
    technical skills, as well as supervisory and management training.
        Question. Do you have a strategic plan for training in GAO? If so,
    could you supply it for the record?
        Answer. Human capital elements, such as training, have always been
    broadly reflected in our agency strategic plan. However, we felt the
    need to have a separate human capital plan due to the importance of
    human capital management as the cornerstone of GAO's management
    framework and the high interest in such a plan. During fiscal year
    2003, we made substantial progress towards finalizing our first formal
    and separate strategic plan planning document for human capital that
    communicates our strategy for becoming a model, professional
    organization, including how we plan to attract, retain, train,
    motivate, and reward a high-performing and top quality workforce.
    Management has reviewed the draft human capital strategic plan and we
    are following it in practice. We are waiting for enactment of our
    pending human capital legislation. Thereafter, we will finalize the
    plan and provide copies to the committee.
                           GOVERNMENT PRINTING OFFICE

    STATEMENT OF BRUCE R. JAMES, PUBLIC PRINTER
    ACCOMPANIED BY:
            BILL TURRI, DEPUTY PUBLIC PRINTER AND CHIEF OPERATING OFFICER
            STEVE SHEDD, CHIEF FINANCIAL OFFICER
            MARC NICHOLS, INSPECTOR GENERAL

                      SUMMARY STATEMENT OF BRUCE R. JAMES

        Senator Campbell. We will now hear from the Government
    Printing Office, Bruce James, the Public Printer; Marc Nichols,
    Inspector General; William Turri, the Deputy Printer; and Steve
    Shedd, the Chief Financial Officer.
        Mr. James, why do you not go ahead and proceed. If you
    would like to abbreviate your comments, your complete testimony
    will be in the record.
        Mr. James. Thank you, Mr. Chairman. I am pleased to be with
    you here today to offer testimony in support of the Government
    Printing Office's appropriations request and to answer any
    questions you may have. At the table with me is Bill Turri, the
    Deputy Public Printer of the United States and the Chief
    Operating Officer, and to my immediate right is Steve Shedd,
    our Chief Financial Officer, and to my far right is Marc
    Nichols, our Inspector General.
        Last year at this hearing, I discussed the importance of
    developing a strategic plan for the GPO that is aligned with
    the changing information requirements of the agencies of
    Government, the national library community, and the general
    public. I also testified about the importance of stabilizing
    GPO's finances by stopping the long string of financial losses.
        We have made great strides toward the development of a
    strategic plan that can be accepted by Congress, employees of
    GPO, the printing and information industries, and the library
    community. We are wrapping up the first phase, the fact
    finding, and are only waiting for the final reports from GAO's
    study of the future information dissemination needs of the
    Government. We expect to complete a final plan before the
    beginning of next fiscal year.
        Meantime, as you know, we have proceeded to make changes to
    our organization that will be required regardless of the final
    plan. We have taken the steps necessary to stabilize the
    financial condition of the GPO by reorganizing and streamlining
    our business units, reducing employment, and shutting
    unnecessary operations. We conducted a successful early
    retirement program last year and have another underway. By the
    summer, we will have reduced overall agency employees by 20
    percent from the time that I arrived at the GPO a little over 1
    year ago. We have changed our capital investment program to
    require faster paybacks for taxpayers. If there are no
    unanticipated setbacks as the year progresses, we should end
    this fiscal year at or near the breakeven point rather than the
    $33 million loss I inherited, all while measurably improving
    our service levels to agencies, libraries and the public.
        Next year we will begin to roll out a series of new
    printing and digital information products now being developed
    by our New Products and Revenues Group which is supported by
    our Office of Innovation and New Technology, both of which
    report directly to me.
        While I cannot bring before you a finished strategic plan
    today, I can tell you that every sign is pointing to the
    necessity of maintaining a centralized public source for
    Federal Government documents that takes into account the fact
    that more than 50 percent of our documents are born digital and
    will never be printed by the Government except on demand, as
    needed. This calls for a different type of dissemination
    system, one that can deal with multiple electronic versions of
    the same document, authenticate electronic documents as
    official and reliable, and preserve the digital record of the
    American Government in perpetuity.
        Congress is fortunate to have in place an organization for
    providing such services to the American people staffed by more
    than 2,000 printing and information professionals who together
    have more than 55,000 years of experience in collecting,
    processing, and the distribution of United States Government
    documents. The men and women of the GPO are here to serve you
    and guide our brothers and sisters throughout the Government
    into the complex world of 21st century digital information.

                               PREPARED STATEMENT

        We appreciate the trust and confidence that Congress has
    placed in us and this subcommittee in particular for your
    support of our initiatives. To continue to serve your needs and
    those of the courts and the executive branch agencies, we are
    asking for a $25 million technology investment. We will use
    this to modernize our document handling systems, which will
    reduce future costs and lead to lower appropriations for
    congressional printing and binding and other Government
    documents.
        With that, we would be pleased to entertain your questions.
        [The statement follows:]
                      Prepared Statement of Bruce R. James
        Mr. Chairman and Members of the Subcommittee: It is an honor to be
    here today to present the appropriations request of the U.S. Government
    Printing Office (GPO) for fiscal year 2005.
        2003 Results.--I'm pleased to report that 2003 was an
    extraordinarily eventful and productive year for the GPO. With funding
    from the Legislative Branch Appropriations Act for 2004 and the
    approval of the Joint Committee on Printing, we conducted a highly
    successful voluntary separation incentive program that allowed us to
    reduce our workforce level by more than 300 positions, or 10 percent,
    yielding annual savings of $21.7 million. Together with our efforts to
    shutter GPO's failing retail bookstores, which will generate savings of
    $1.5 million in the first year, and the other steps we have taken to
    better manage our operations, our finances are being restored to a
    positive basis.
        We have undertaken additional measures in recent weeks that will
    yield further financial benefits. With the approval of the Joint
    Committee on Printing, we are implementing another voluntary separation
    incentive program that is targeted at reducing an additional 250
    positions, yielding an annual savings of $16.5 million for fiscal year
    2005. This program will be financed through our revolving fund during
    the April-July period of this year. The Joint Committee has also
    approved our plan to end the financial losses at our Denver regional
    printing plant by closing it. Barring any unforeseen developments,
    these and related actions we are taking to improve efficiency and
    economy will allow us to complete fiscal year 2004 at or near the
    break-even point, halting a decade-long pattern of year-end losses and
    setting the GPO on the road to sustained financial health.
        Transforming the GPO.--Apart from restoring our finances, during
    2003 we began the transformation of the GPO into a 21st century digital
    information processing facility. We carried out a broad reorganization
    to redirect the GPO's management, expanded our workforce development
    resources, began modernizing the GPO's product lines with new offerings
    such as Public Key Infrastructure technology, and initiated planning
    for the restructuring of our Federal Depository Library Program. We
    also improved emergency preparedness for our employees and for
    continuity-of-government operations. Across the board--from our
    customers in Congress, Federal agencies, and among the public, from the
    printing industry, the library and information communities, and from
    our employee representatives--we're getting strong support for the
    direction we're heading.
        Transforming the GPO for the long term will require much more than
    the changes we've already achieved. As you know, in the coming weeks
    the General Accounting Office will be concluding its congressionally-
    mandated study of Federal printing and information policy. The study
    will establish a baseline of current operations on which we can
    confidently build a strategic plan for the GPO's future involving
    consultations with all of our stakeholders. The plan will include
    recommendations for reforming the 19th century statutes comprising
    Title 44 of the U.S. Code, the laws that authorize our programs and
    operations.
        Dealing with the GPO's building needs is a major transformational
    issue that we are also addressing. As reports in The Washington Post,
    The Washington Times, Roll Call, and The Hill have detailed recently,
    we've begun a process that we expect to culminate by 2007 in the
    relocation of the GPO from our aging, oversized quarters on North
    Capitol Street to modern, efficient facilities--preferably in the
    District of Columbia--that are sized and equipped to meet our needs in
    the 21st century. Rather than burden the taxpayers with this project,
    we want to investigate opportunities to finance it through the
    redevelopment of our current structures. In addition to benefiting the
    GPO and our customers, this approach will also generate significant
    benefits for the District. We have obtained the approval of the Joint
    Committee on Printing to proceed with the initial stages of this
    project and we will continue to consult closely with Congress as we
    proceed. As part of these efforts, we are seeking specific statutory
    approval to utilize up to $500,000 in our revolving fund to finance the
    services of experts to help us in this process.
        Beyond our planning and building efforts, the transformation of the
    GPO will require investments in new technology for collecting,
    processing, and distributing Government information. This will
    establish the GPO's leadership in using the best leading-edge digital
    technology in support of Congress, Federal agencies, and the public.
    The GPO has a vastly expanded role to play in content management,
    authentication of documents, meeting the challenges associated with
    versioning of electronic data, on-demand printing, the transfer of
    information from one generation of technology to the next, and the
    preservation of digital information in perpetuity. The 19th century is
    not coming back. These are the baseline services that the GPO must be
    prepared to provide if we are to carry out our mission effectively in
    the 21st century. In addition to our request for funding for
    continuation of services, our appropriations request for fiscal year
    2005 reflects this investment requirement, which is essential to the
    GPO's future and the future information activities of the customers we
    by law support.
        Fiscal Year 2005 Request.--Our appropriations request is designed
    to provide for the: Continuation of our congressional printing and
    binding operations at required levels; continuation of our document
    dissemination services at required levels; investment in GPO's future
    as a 21st century digital information processing facility; separate
    funding for the GPO's Office of the Inspector General; and
    modernization of business practices through appropriate legislative
    changes
        Continuation of Services.--For the Congressional Printing and
    Binding Appropriation, which covers printing and related services for
    Congress, we are requesting $88.8 million. This is a reduction of $1.8
    million, or 2 percent, from the level approved by Congress for fiscal
    year 2004.
        For the Salaries and Expenses Appropriation of the Superintendent
    of Documents, we are requesting $33 million. This is a reduction of
    $1.2 million, or about 3.6 percent, from the fiscal year 2004 approved
    level. This appropriation provides for the cataloging and indexing of
    Government publications, and the distribution of Government
    publications to Federal Depository and International Exchange libraries
    and other recipients authorized by law.
        The reductions in these two appropriations have been made possible
    by reduced printing workloads, our continued application of cost-saving
    digital information technologies, and increased efficiency in
    operations, including savings from the buyout conducted in 2003.
        Investment in the GPO's Future.--The most strategic of our fiscal
    year 2005 requests is a proposal for $25 million to be appropriated to
    our revolving fund, to remain available until expended, which will be
    used in carrying out a multi-year plan to transform the information
    technology used at the GPO in meeting Federal agency customer
    requirements for printed and digital documents as well as the public's
    increasing demand for authenticated, official Government information to
    be available from the Internet.
        Our vision is to move the GPO forward from a predominantly ink-on-
    paper distributor of printing requirements to a life-cycle manager of
    digital Government information, electronically collecting, organizing,
    processing, and protecting the flow of public documents from their
    origination in Congress and Federal agencies through their
    dissemination, in perpetuity, to depository libraries and the public.
    To make this transformation effective, our technology plan has
    identified a series of initiatives that will sustain and improve the
    GPO's current information technology (IT) baseline; consolidate data
    center capabilities; modernize the GPO's IT infrastructure; reengineer
    the GPO's business processes to synchronize with IT capabilities;
    provide effective enterprise resource management; and ensure continuing
    IT security. This vision embraces the GPO's historic role of serving as
    the gateway to the Government's public documents while utilizing
    technologies that meet the demands of the 21st century. It will
    necessarily be modified by our strategic plan, the development of which
    will depend on the conclusions reached by the GAO's study.
        The funding we are requesting today will be used to generate
    efficiency and reduce costs tomorrow. Already, Congress is seeing the
    results of investment in the GPO, as last year's appropriation to fund
    our buyout is already generating savings that are showing up in our
    reduced requests for the Congressional Printing and Binding and
    Salaries and Expenses Appropriations for fiscal year 2005. As with all
    of our initiatives undertaken since my taking office as Public Printer,
    this transformation will be conducted under the oversight and guidance
    of the Joint Committee on Printing, the Appropriations Committees, and
    our legislative oversight committees in the House of Representatives
    and the Senate, and in consultations with our customers throughout
    Congress, Federal agencies, and the library and information
    communities.
        Office of the Inspector General.--Rather than continue to finance
    the GPO's IG through our revolving fund, we are requesting that this
    function be funded annually by direct appropriations, as IG operations
    are throughout much of the Government. For fiscal year 2005, we are
    requesting $4.2 million and 25 full-time equivalent (FTE's) positions
    for this purpose.
        Financing the IG through the revolving fund requires that the fees
    for various services be increased to reimburse this cost. A direct
    appropriation will alleviate that cost burden on Congress and agency
    customers and make our services more competitively priced. It will also
    provide greater independence for the IG and his staff to monitor the
    GPO's operations.
        Legislative Changes.--In addition to our funding request, we are
    requesting several authorities to support our transformational efforts
    and further our mission:
      --Extension of our early retirement and separation incentive
            authority, which expires at the end of fiscal year 2004.
            Utilized in 2003 and again this year, this authority has been
            extremely useful in achieving orderly reductions in staffing
            that are providing significant savings to GPO operations.
      --Authorization to use up to $500,000 to contract for expert services
            to assist us in our effort to relocate the GPO and to finance
            this project through redevelopment of our existing structures.
      --Authority to accept contributions of property, equipment, and
            services to support and enhance the work of the GPO. We have
            improved the language we submitted last year by adding
            additional reporting requirements to ensure full
            accountability.
      --Elimination of the current, long-outdated limit of 25 percent on
            discounts for our sales publications. This would enable us to
            match current sales discount practices in the private sector
            and improve our documents sales practices.
      --Elimination of the current 5-year retention period for Government
            documents in selective depository libraries. This requirement,
            which would be replaced with regulations issued by the
            Superintendent of Documents in consultation with the library
            community, is imposing excessive costs for documents management
            on libraries and undermining the efficiency of program
            participation.
      --Authorization to use up to $10,000 in our Revolving Fund to support
            the activities of the Benjamin Franklin Tercentenary
            Commission, established by Public Law 107-202. The Commission
            is working on ways for the Federal Government to appropriately
            observe the tercentenary of Benjamin Franklin's birth in 2006.
            The GPO's support for this important work could involve
            printing, mailing, travel, or associated expenses. We are
            deeply committed to cooperating with the Commission and its
            private sector counterpart, the Benjamin Franklin Tercentenary
            Consortium.
      --An increase in our representation allowance to $15,000 to support
            activities promoting the GPO.
        Mr. Chairman and Members of the Subcommittee, thank you for all the
    support you have shown for our efforts to bring transformation to the
    GPO, reduce the costs of its operations, and improve the provision of
    our services to Congress, Federal agencies, and the public. This past
    year has been one of unparalleled accomplishment at the GPO, and with
    your support we can continue that record of achievement. I look forward
    to working with you and the Appropriations Committees in your review
    and consideration of our request. This concludes my prepared statement,
    and I would be pleased to answer any questions you may have.

                            BUSINESS-LIKE OPERATIONS

        Senator Campbell. You stated that you would like to run the
    GPO like a business, which around here sometimes is a buzzword.
    That is what almost candidate for office says about the Federal
    Government. You run it like a business and with most
    businesses, if they are not making a profit, you have got to
    shut it down because it is the profit margin that keeps it
    going.
        What are you going to do to make it more businesslike?
    Explain what that buzzword means.
        Mr. James. Well, Senator, I think we have taken a number of
    steps. I think we are seeing results from those steps. We have
    streamlined the organization to eliminate multiple levels of
    reporting. We have begun to build metrics to be able to predict
    and measure what it is that we are supposed to be doing. We are
    streamlining the ways that we go about dealing with Government
    agencies. I think we have taken a number of steps. I think
    those steps are paying off.
        Senator Campbell. You closed the bookstores, the outlets.
        Mr. James. We did.
        Senator Campbell. Has that saved a considerable amount?
        Mr. James. It will save millions over the years, Senator,
    about $1.5 million per year.
        Senator Campbell. And if people want a document that they
    normally would get in that bookstore, how do they get it now?
        Mr. James. Well, they get it online. They can certainly
    come online and look at our bookstore online, or they can call
    our 800 number and receive help from a real, live human being
    who will find that document and Federal Express it to them.

                               INVESTMENT REQUEST

        Senator Campbell. Good.
        Your budget includes $25 million for transformation
    efforts, and you mentioned that your final strategic plan will
    not be done until next fiscal year. Is that correct?
        Mr. James. Well, we certainly hope, Mr. Chairman, that we
    will complete that plan this summer. We are on track to
    complete it and to begin to make the investments we need
    beginning in the next fiscal year. I am a little reluctant. I
    know your staff has pushed us hard to give solid specifics.
        Senator Campbell. Yes. There is some concern about
    appropriating the money before the plan is complete.
        Mr. James. I think by the time that you would move forward
    with this, I think we will be able to give you more facts. I am
    just a little concerned about putting the cart in front of the
    horse in talking about how we are going to spend the money
    before we get the agreement on the plan not only from Congress
    but from the various stakeholders that we have.
        Senator Campbell. Do you still think you might get the
    strategic plan done by the summer, though?
        Mr. James. We will have it done.
        Senator Campbell. Your budget includes 16 new staff for the
    depository library program. Are those needed at this time?
        Mr. James. You bet. The depository library program is
    changing and it is changing because of the nature of the way
    the Government is creating information. For many years we sent
    to depositories hard copies, first in paper, then in
    microfiche, and we began to send CD-ROM's 15 years ago. It is
    now not only a combination of those products but last month, 66
    percent of all the documents we sent to our depository
    libraries were only digital. And they need a considerable
    amount of help in learning how to use digital tools to mine
    that data for their clients.
        Senator Campbell. Let me ask you the same thing I asked the
    former panel, and that is, if we have a flat budget and cannot
    increase the amount of money that you are asking for, what is
    going to get cut or hurt?
        Mr. James. Well, I think we will not come back to you in
    tears. We will manage the business. It may cause us to change
    the timing on some of the investments we are making in the
    future, but we will continue forward.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senator Campbell. I have a couple other questions too and I
    will submit those in writing, if you would get to those.
        Mr. James. Thank you.
        Senator Campbell. Thank you for appearing. I appreciate it.
        Mr. James. Thank you, Mr. Chairman.
        [The following questions were not asked at the hearing, but
    were submitted to the Office for response subsequent to the
    hearing:]
             Questions Submitted by Senator Ben Nighthorse Campbell
        Question. What would be the benefits of continuing to invest in the
    GPO, as we did last year with an appropriation of $10 million to your
    revolving fund?
        Answer. We are asking Congress to invest in the GPO only where we
    can show that savings will result. Using the $10 million appropriation
    to our revolving fund for fiscal year 2004, we conducted a retirement
    incentive program that resulted in annual savings of $21.7 million. Our
    request for $25 million for the revolving fund for fiscal year 2005
    will be used to carry out a multi-year plan to transform the
    information technology used at the GPO in meeting Federal agency
    customer requirements for printed and digital documents as well as the
    public's increasing demand for authenticated, official Government
    information to be available over the Internet. This plan, to be carried
    out in concert with the pending results of the General Accounting
    Office's study of the GPO, as requested by this Committee, will
    generate new efficiencies and significantly reduce the future costs of
    our operations to Congress, Federal agencies, and the public.
        Question. Can you tell the subcommittee about your plans for
    relocating the GPO? Have you determined GPO's specific new space
    requirements?
        Answer. The GPO's current facilities are outdated, inefficient, and
    too large to support our changing operations, particularly as we
    transform those operations to meet the demands of the 21st century. Our
    central office complex here in Washington, DC, is composed of 4 aging
    multi-story buildings totaling 1.5 million square feet of space,
    completed between 1903 and 1940. The buildings have numerous
    inefficiencies that have been well-documented. At one time housing over
    8,000 employees, they now are too big for our current workforce of less
    than 2,500. Multiple stories make it difficult and costly to handle
    materials. Deteriorating utilities and elevators require constant
    upgrading. Floor loading limitations in the older buildings have long
    restricted their use.
        The nature and age of the buildings is imposing growing costs just
    to maintain the structures in serviceable condition. These costs must
    be recovered through the rates charged to the GPO's customers.
    Currently, 12 percent of our costs, about $35 million annually, are for
    building-related expenses (including utilities, maintenance and repair,
    security). The GPO will need to spend between $275 million and $530
    million over the next 5-10 years to maintain, repair, and secure our
    current facilities. If there is no change in our situation, these costs
    will have to be recovered from Congress, Federal agencies, and the
    public through our printing rates and sales prices.
        Our objective is to secure a modern, inline production facility
    that is appropriately sized and equipped to meet the GPO's current and
    future needs, which are still in the process of being determined
    through our planning process. Optimally, this facility would be located
    conveniently in the District of Columbia to enable us to serve
    Congress, Federal agencies, and the public efficiently. We envision
    entering into an agreement with a private sector concern to redevelop
    our current buildings and use the revenue generated from the
    redevelopment to acquire, construct, and equip a new GPO facility. The
    redevelopment agreement would also be configured to provide a revenue
    stream that would be used to underwrite GPO's operations into the
    future. This financing approach should obviate the need for
    congressional appropriations to accomplish the relocation project,
    remove the burden of building-related expenses on GPO's rate and price
    structures, and ensure the continuation of the GPO's information
    production and dissemination services well into the 21st century.
        Question. How many people took the buyout with the funding we
    provided you last year? What is the annual savings from this reduction?
    Did this reduction affect your request for appropriations for 2005? How
    is your current buyout effort proceeding?
        Answer. A total of 319 employees took the buyout we conducted last
    year, resulting in annual savings of $21.7 million. These savings--more
    accurately characterized as a reduction to our costs--have been a
    primary factor in eliminating the loss pattern that the GPO sustained
    over the past several years. We are currently conducting another buyout
    with the target of reducing our current employment level by 250 by July
    1, 2004. This buyout, which has been approved by the Joint Committee on
    Printing, will be financed through the GPO's revolving fund. It will
    generate annual savings of $16.5 million beginning in fiscal year 2005.
    It is proceeding well and we expect to meet the targeted goal of
    reducing employment by 250 positions.
        Question. You've requested authority to accept contributions of
    property, equipment, and services to support and enhance the work of
    the GPO. How do you see this authority working? How would GPO avoid a
    conflict of interest in accepting gifts?
        Answer. Last year we requested authority to accept contributions of
    property and services on behalf of the GPO and to make donations of
    surplus property and equipment to specified Federal, state, local, and
    charitable entities. The authority to accept contributions of voluntary
    services, such as those provided by interns, and to make donations was
    approved in the fiscal year 2004 Legislative Branch Appropriations Act.
    For fiscal year 2005 we are renewing our request to accept
    contributions of equipment and property, which was approved by this
    Committee last year.
        Currently, GPO is not authorized by law to accept contributions of
    equipment and property. This authority would allow us to accept the
    placement of prototype equipment for beta-testing and systems trials
    without requiring a Government investment, providing us with the
    flexibility we need to evaluate new and emerging technologies onsite in
    this period of rapid technological change. It would also permit us to
    work with the private and non-profit sector on the development of
    programs designed to increase the public visibility of GPO's
    operations, such as the creation of a printing museum similar to the
    U.S. Postal Service Museum located nearby.
        The authority we are requesting is similar to donation acceptance
    authorities possessed by many Federal agencies, such as the Library of
    Congress, the U.S. Court of Veterans Appeals, the Department of Housing
    and Urban Development, the Consumer Product Safety Commission, the
    Department of Commerce, the Administrative Office of United States
    Courts, and the Department of Labor. Acceptance of contributions of
    equipment and property would be solely on behalf of the GPO and subject
    to the usual limitations covering donations to the Government. To
    assure accountability, our request this year includes additional
    language that would require reporting on all contributions to the
    Appropriations Committees and the Joint Committee on Printing.
        Question. What are the benefits from providing a direct
    appropriation for your Inspector General?
        Answer. The GPO's Office of the Inspector General, established
    under the provisions of 44 U.S.C. 3901 et. seq., is currently funded
    through the GPO's revolving fund. The costs of this office are
    distributed as overhead to the various revenue-generating operations of
    in-plant printing, printing procurement, and documents distribution.
    The rates for the GPO's products and services must be adjusted to
    recover our overhead costs, including those of the IG. Along with other
    actions we are taking to reduce costs and improve efficiency, we are
    asking Congress to provide direct appropriated funding to cover this
    mandatory expense to help reduce cost pressures on our rates and
    prices.
        Equally as important, we believe it is necessary to have direct
    funding to the GPO's IG to ensure a level of independence for this
    operation that is appropriate to its mission. The IG is responsible for
    conducting audits and investigations relating to the GPO, yet is
    dependent on the Public Printer to provide approval for the necessary
    staffing, funding, equipment, and training necessary to carry out this
    mission. By law the Public Printer has ``no authority to prevent or
    prohibit the Inspector General from initiating, carrying out, or
    completing any audit or investigation.'' However, providing the IG with
    the capability to execute its mission independent of the GPO's
    management would put this office on a par with how most Federal IG
    operations are funded today.
        Question. What efforts have you undertaken to identify and make use
    of new and emerging information technologies?
        Answer. The GPO has implemented a variety of strategies over the
    past year to identify, evaluate, and incorporate new and emerging
    information technologies into our operations. An Office of Innovation
    and New Technology (INT) was established to identify new technologies
    and practices that will help us move forward. Reporting directly to the
    Public Printer, INT also helps create associations with other public
    and private sector entities to carry out the GPO's mission. During
    2003, we announced a partnership with the National Archives and Records
    Administration in support of permanent online public access.
        Along with INT, we have expanded our participation in technology
    and trade forums and shows to gain greater exposure to new
    developments. Through management reorganization and associated
    strategic and contingency planning functions, we are also carrying out
    broader outreach to the technology community. We have begun modernizing
    the GPO's product lines with new planned offerings such as Public Key
    Infrastructure technology. We are participating in the ongoing General
    Accounting Office long-range study of Federal printing and information
    policy, and expect to be able to use the study's results to help guide
    technology evaluation and acquisitions programs at the GPO. We have
    also revised our capital acquisitions policy to establish a more
    rigorous standard for return-on-investment to ensure we gain the
    maximum value from taxpayers' technology dollar.
        Question. Tell us what you see as the future of the depository
    library program. Why are additional staff needed in fiscal year 2004?
    What will be the impact if we are unable to provide these additional
    staff?
        Answer. The ongoing transition to a more electronic Federal
    Depository Library Program (FDLP) will continue into fiscal year 2005
    and beyond. Approximately 63 percent of the new titles entering the
    FDLP in fiscal year 2003 were electronic and this percentage will
    continue to grow. Currently, there are more than 262,000 titles in the
    FDLP electronic collection and it is expected to increase substantially
    over time.
        New challenges associated with discovering, acquiring, cataloging,
    and preserving digital documents for the FDLP electronic collection,
    working through these changes with our depository library partners, and
    carrying out our cataloging and indexing responsibilities will require
    an increase of sixteen FTEs for the Salaries and Expenses (S&E)
    Appropriation in fiscal year 2005. The increase will support the
    following activities:
      --Fourteen of the additional FTEs would be dedicated to preservation
            activities associated with maintaining and providing permanent
            public access to materials in the FDLP legacy and electronic
            collections and a proactive program that emphasizes
            consultation and education and promotes best practices for our
            depository partners during this transition.
      --Two FTEs would be added to our cataloging and indexing efforts to
            ensure that the full range of in-scope electronic information
            being published by our Government is brought under
            bibliographic control and made publicly available.
        While every effort to reallocate resources from traditional
    pursuits has and will provide some of the required personnel, not
    increasing the FTE level would mean that we would not be completely
    able to carry out our program responsibilities in fiscal year 2005.
        Question. You completed a management reorganization last year. How
    has that helped your transformation efforts at the GPO? Do you
    anticipate additional realignments?
        Answer. Last year we implemented an organizational model that is
    relatively new to the Federal Government but widely used in industry,
    wherein the chief executive officer (Public Printer) focuses on
    organizational policy and long-range planning and the second in command
    (Deputy Public Printer) serves as chief operating officer focusing on
    the day-to-day operations of the business. This has streamlined
    decision-making and is designed to keep the overall GPO organization
    focused on movement forward while ensuring that the day-to-day tasks of
    the agency are fulfilled. The reorganization of the top-level
    management structure has been followed by organizational restructurings
    at lower levels. There will be further organizational change in the
    future as the result of the development and implementation of the GPO's
    strategic plan.
        Question. Last year you reached an agreement with OMB on executive
    printing. Can you tell us how that agreement is working? Where do you
    expect this to go in fiscal year 2004 and fiscal year 2005?
        Answer. The OMB/GPO Compact on printing (June 6, 2003) successfully
    resolved the longstanding controversy over executive printing by
    proposing a new system that will enable Federal agencies to choose
    their own printers, using technology and support services provided by
    the GPO. Our hope is that the volume of printing paid through the GPO
    will increase at lower costs while providing all documents for
    cataloging and entry into the GPO's Federal Depository Library Program
    and related dissemination programs. As called for by the Compact,
    during fiscal year 2004 we are operating a demonstration project at an
    agency selected by OMB, the Department of Labor. We plan to deploy the
    system established by the Compact government-wide in early fiscal year
    2005.
        Question. How important is employee workforce development to your
    transformation efforts at the GPO? What changes have you implemented in
    your workforce development program?
        Answer. Workforce development is critical to GPO's transformation
    process. It is the means by which GPO will move our current workforce
    into our future mission. Last year we doubled our workforce development
    program and increased our training budget to help us shape the staffing
    capabilities we will need for the future. We also revised our training
    policy to support mission-related training, not just job-related
    training. To guide our workforce development for GPO's future mission,
    we will conduct a systematic needs assessment across GPO and a
    corresponding skills assessment of the current workforce.
        GPO has made a number of changes in order to ensure the success of
    the workforce development. A new Director of Workforce Development
    position was established and a new Director has been selected. The
    Director works under the leadership of the Chief Human Capital Officer.
    A Workforce Development Advisory Committee, involving the key leaders
    in each major area of GPO, has been working on the critical aspects of
    the needs assessment. A working committee involving management and key
    labor representatives has also been involved in formulating a process
    for ensuring that the needs assessment and the skill assessment is
    reflective of the differences that exist in GPO across organizations
    and occupations. These efforts have been widely promoted throughout
    GPO.
        Question. What is the status of emergency planning at the GPO?
        Answer. Over the past year, the GPO has completely revised its
    Emergency Action Plan. New procedures for emergency evacuations and
    ``shelter in place'' were developed and published in an Interim Plan.
    Both plans were exercised and based on the results, adjustments to the
    procedures were made, and the final version of the Plan will be
    published this month. We also completed a number of physical security
    improvements such as raising the height of outside air intakes to
    preclude easy introduction of toxic substances into our heating and
    ventilation system. We also upgraded the ventilation control and fire
    alarm systems in our passport production building. We further reduced
    the number and operating hours of building access points and
    implemented more rigorous metal detection and package x-ray policies.
    This month we are installing an upgraded access system based on smart
    card technology which will allow us to incorporate digitally signed
    certificates and biometric identification data into our building and
    computer access control systems. Finally, we are in the final phase of
    acquiring an emergency mass notification system, which will enable us
    to individually notify and instruct all of our employees in a matter a
    few minutes during an emergency. Collectively, these actions represent
    a significant upgrade of our ability to protect and secure GPO
    employees and property.
        In the area of continuity of business operations, we this week
    signed the Memorandum of Understanding with the Congress which will
    enable the GPO to backup our critical computer databases and
    applications at the Legislative Alternate Computing Facility (ACF). In
    preparation for this, we have been consolidating databases and systems
    at our main North Capitol Street facility into a state-of-the-art data
    center, which we currently back up on a daily basis. As we implement
    our new capability at the ACF, we will be able to back up systems
    continuously and thus will be able to provide virtually uninterrupted
    support to Congress and our other Government customers in all but the
    most catastrophic disasters. Last summer, we initiated a comprehensive
    program to complete enterprise-wide risk assessments and security
    upgrades for all of our business applications and databases. This
    effort will be complete by the end of fiscal year 2004 and will further
    secure the integrity and security of our operations.
                          CONGRESSIONAL BUDGET OFFICE

    STATEMENT OF DOUGLAS HOLTZ-EAKIN, DIRECTOR
    ACCOMPANIED BY ELIZABETH ROBINSON, DEPUTY DIRECTOR

        Senator Campbell. Now we will hear from our third panel
    from CBO, Douglas Holtz-Eakin, the Director, accompanied by
    Elizabeth Robinson, the Deputy Director. Mr. Holtz-Eakin, if
    you would like to proceed, your complete testimony will be in
    the record. I see you have got abbreviated notes right there in
    front of you.
        Mr. Holtz-Eakin. I have very little to say.
        Senator Campbell. They look like the kind of notes I use
    too.
        Mr. Holtz-Eakin. I thank you for the chance for us to be
    here this morning to talk about CBO's budget request for 2005.
    I want to take the opportunity to introduce Beth Robinson, who
    has done a sterling job in under a year as the Deputy Director
    of CBO. And I want to thank the committee for its support with
    our----
        Senator Campbell. May I interrupt you? What was your
    background before you got to the position, Ms. Robinson?
        Ms. Robinson. It was an eclectic one. I have training as a
    geophysicist actually.
        Senator Campbell. A geophysicist.
        Ms. Robinson. Yes, and I spent some time on the Hill at the
    Office of Technology Assessment.
        Senator Campbell. Does the geophysicist background help you
    with CBO?
        Ms. Robinson. Well, sometimes I wonder, but basically a lot
    of skills that you learn to handle large data sets, to get the
    computers to give you the answer you want, we use a lot at CBO.
        Senator Campbell. I have got an eclectic background too,
    and I am not sure it helps me being a Senator.
        Mr. Holtz-Eakin. She is being very modest. One of the
    reasons I was attracted to her is, in fact, that she has a
    background in science; and the range of issues that rolls
    through the CBO is quite broad. She brings skills that we did
    not previously have.
        Senator Campbell. Welcome aboard. Please proceed.

                           OVERVIEW OF CBO'S REQUEST

        Mr. Holtz-Eakin. Briefly, this year we have a request that
    would be an increase of $1.6 million for pay and benefits for
    the existing FTEs at CBO and an additional roughly $200,000
    that would cover a variety of needs--including our alternative
    computing facility communications, which are part of the
    disaster recovery system at CBO, and some higher costs for the
    Federal Accounting Standards Advisory Board, and other things
    are detailed in the written request.
        The total would be a budget of $35.5 million, an increase
    of $1.8 million, or 5.5 percent. We view this as essentially a
    current-services request, which will allow us to maintain our
    level of productivity, which we hope is well documented in our
    submission, in supporting the Congress in its need for
    budgetary and economic advice.
        We have made great progress, I think, in being responsive,
    cutting the time required to produce reports and being timely
    in their delivery for the deliberations of Congress. I would be
    happy to expand on that if necessary.
        As you mentioned in your opening remarks, we recognize that
    Congress may desire an even more limited request, and we
    respect Congress' desire to limit the growth of spending in the
    Federal budget and will work with this committee as necessary
    to meet any target that you might provide.
        I will point out that we have modest opportunities in the
    non-pay part of CBO's budget, which is only 12 percent of the
    budget. Many of those would be one-time reductions, which we
    will entertain as possible. But to the extent that there was an
    ongoing need for budgetary stringency, it would be concentrated
    in our personnel, which constitute 88 percent of the CBO
    budget. Moving to a freeze, for example, given the current pay
    and benefits requirements, would create the need to reduce by
    about 12 full-time equivalents at CBO.
        Senator Campbell. Twelve employees, twelve FTEs?
        Mr. Holtz-Eakin. With more flexibility on the scale of the
    pay increase, that, of course, could be different, and we could
    ameliorate that to some extent through the non-pay part of the
    budget.

                               PREPARED STATEMENT

        But certainly we would work with you. We look forward to
    additional guidance on the kind of request that is appropriate
    and would be happy to answer your questions.
        [The statement follows:]
                   Prepared Statement of Douglas Holtz-Eakin
        Mr. Chairman and Members of the Subcommittee, I am pleased to
    present the fiscal year 2005 budget request for the Congressional
    Budget Office (CBO). The mission of CBO is to provide the Congress with
    timely objective, nonpartisan analyses of the economy and the budget
    and to furnish the information and cost estimates required for the
    Congressional budget process.
        The Congressional Budget Office's proposed budget for fiscal year
    2005 is effectively a ``current-services'' request, in which the
    increases from 2004 are primarily for pay, benefits, and general
    inflation. The request totals $35,455,000, a $1.8 million, or 5.5
    percent, increase over the appropriation for fiscal year 2004 (after
    the rescission of 0.59 percent).
        The total increase requested is dominated by $1.6 million for
    expected increases in staff salaries and benefits. Funding for salaries
    and benefits constitutes 88 percent of CBO's budget, and those costs
    will grow by 5.5 percent in 2005. Additional factors include a new
    $75,000 charge for telecommunications services associated with the
    Alternate Computing Facility, a component of the legislative branch's
    disaster recovery system, and a $32,000, or 8.1 percent, increase in
    CBO's portion of the cost of operating the Federal Accounting Standards
    Advisory Board (FASAB). The remainder of CBO's budget request increases
    by 3.2 percent over that in 2004, a rate of growth affected by the fact
    that this portion of the budget will absorb almost half of the 0.59
    percent rescission in 2004.
        With the requested funds for 2005, CBO plans to continue to support
    the Congress in exercising its responsibilities for the budget of the
    United States government. CBO participates in the Congressional budget
    process by providing analyses required by law or requested by the House
    and Senate Budget Committees; the Committees on Appropriations, Ways
    and Means, and Finance; other committees; and individual Members. In
    particular, CBO:
      --Reports on the outlook for the budget and the economy to help the
            Congress prepare for the legislative year;
      --Analyzes the likely effects of the President's budgetary proposals
            on outlays and revenues;
      --Estimates the costs of legislative proposals, including formal cost
            estimates for all bills reported by committees of the House and
            Senate and for unfunded mandates on states and localities and
            the private sector;
      --Constructs statistical, behavioral, and computational models to
            project short- and long-term costs and revenues of government
            programs; and
      --Conducts policy studies of governmental activities having major
            economic and budgetary impacts.
        In fiscal year 2005, CBO's request will allow the agency to build
    on current efforts:
      --Increase the number and reduce the preparation time of reports and
            in-depth analyses for the Congress, extending progress begun in
            2003. The request will support a workload estimated at 2,120
            legislative and mandate cost estimates, 82 major analytical
            reports (11 percent more than in 2003, which itself represented
            a 76 percent increase over 2002), 74 other publications, and a
            heavy schedule of Congressional testimony.
      --Consolidate gains from additional staff resources provided by the
            Congress for 2004 to augment the agency's ability to estimate
            revenues and conduct dynamic analyses of the budget. Overall,
            the request will support 235 full-time-equivalent positions,
            the same number as in 2004. It includes an across-the-board pay
            adjustment of 3.5 percent for staff earning a salary of
            $100,000 or less, which is consistent with the pay adjustment
            requested by other legislative branch agencies, along with a
            projected increase in benefits of 7.0 percent.
      --Fund a combination of promotions and merit increases for all staff,
            including those whose salary exceeds $100,000 and who do not
            receive automatic annual across-the-board increases.
      --Provide $429,000 for CBO's share of FASAB's budget.
      --Provide $75,000 (previously paid by the House of Representatives)
            for telecommunications services for the Alternate Computing
            Facility.
      --Complete the replacement of CBO's Budget Analysis Data System, the
            agency's primary budget-tracking system, with a lower-cost,
            more-capable in-house system. After accomplishing that
            replacement midyear in 2005, CBO plans to continue to develop
            and exploit the capabilities of the new system--to improve the
            speed and breadth of the agency's analyses--during the
            remainder of the year and into the next, but at a much lower
            annual development cost.
        Before I close, I would like to thank the Committee for its support
    of CBO's 2004 budget request, in particular, the two new positions that
    it approved to strengthen the agency's ability to forecast the economy
    and project revenues. And I would also cite the Committee's ongoing
    support of the student loan repayment benefit, which is an increasingly
    valuable tool in CBO's recruiting.
        I look forward to answering any questions that you might have about
    this request.

                          STAFFING IN DIFFICULT AREAS

        Senator Campbell. Thanks.
        In fiscal year 2004, the committee agreed to provide two
    additional staff for CBO. Are those staffers both on board?
        Mr. Holtz-Eakin. Those were identified to address needs for
    enhanced precision in our baseline receipts forecasts, and also
    to meet the desire for Congress to have some more dynamic
    analysis of macro-economic effects and also some budgetary
    proposals. We have not only enhanced the FTEs and are hiring
    for those, but we have also done some internal reallocations to
    make sure that there are people available in some of the tough
    cross-cutting areas, in particular finance. A lot of the
    difficulties in forecasting baseline revenues in the past
    several years have involved large run-ups in the stock market
    and then declines and associated bonuses and options. Finance
    people are difficult to hire, hard to retain. If Senator Durbin
    were here, I would point out that that has been one of our
    targets for student loan repayment. It has been successful.
        Senator Campbell. They make more in New York.
        Mr. Holtz-Eakin. We have had some success on that front,
    and we have got more firepower in those areas.

                                PROGRAM CHANGES

        Senator Campbell. You have $227,000 in what is described as
    program changes. What are those program changes and what is the
    money for, necessary at this time?
        Ms. Robinson. The largest component of that is twofold. One
    is a new $75,000 charge for disaster recovery for the physical
    data connections between CBO and alternate computing facility.
        The second one is an investment in our defense-modeling
    capability, of the defense budget itself. We had been
    contracting in the past for some data sets and other things,
    and we find, actually, that these contractors are retiring. It
    is a very specific $75,000 expense to bring that capability in-
    house.
        Senator Campbell. Thank you.

                             INCREASED PRODUCTIVITY

        Your budget also discusses your effort to increase staff
    productivity. What are you doing to accomplish that goal?
        Mr. Holtz-Eakin. Well, there are two major problems. The
    first is management: setting clear objectives for deadlines for
    studies, keeping track of progress for those deadlines, and
    making sure in our merit review system that productivity is a
    component of the merit review. So internal management issues
    are one aspect, but there are also some changes in the nature
    of the process, the most notable being moving toward a more
    modern platform for publication, moving from word processors to
    a real desktop publishing system.

                             RETENTION OF EMPLOYEES

        Senator Campbell. How does the CBO compare with other
    Federal agencies on the retention of employees?
        Mr. Holtz-Eakin. I do not have the precise statistics, but
    I think we have been very successful.
        Senator Campbell. Could you provide that for the committee?
        Mr. Holtz-Eakin. Yes.
        [The information follows:]

        Employee retention is defined by the amount of turnover and
    agency experiences. The chart below describes the Congressional
    Budget Office's (CBO's) turnover among management and
    professional staff over the last two fiscal years. (Clerical
    staff are not included because CBO's workforce is less than 10
    percent clerical, and the agency experiences very little
    turnover among clerical staff.)
        Comparing the Congressional Budget Office's turnover with
    other agencies' is challenging because agencies maintain their
    data in disparate ways. The chart shows the information that we
    have been able to gather.

    ----------------------------------------------------------------------------------------------------------------
                                                      Fiscal Year 2002                     Fiscal Year 2003
                                           -------------------------------------------------------------------------
                                              Staff on                 Turnover    Staff on                 Turnover
                                               Board     Separations  (percent)     Board     Separations  (percent)
    ----------------------------------------------------------------------------------------------------------------
    Congressional Budget Office...........          190          18        9.47          193          28       14.51
    General Accounting Office.............          n/a         n/a        8.80          n/a         n/a        7.70
    Congressional Research Service........          554          31        5.60          609          22        3.61
    Library of Congress \1\...............        2,622         146        5.57        2,725         123        4.51
    Executive Branch Agencies \2\.........    1,232,496      71,866        5.83    1,244,493      86,285        6.93
    ----------------------------------------------------------------------------------------------------------------
    \1\ Includes Congressional Research Service as part of the Library of Congress.
    \2\ Does not include the Federal Bureau of Investigation, the Postal Service, or intelligence agencies (such as
      the Central Intelligence Agency and the National Security Agency). Source: www.fedscope.opm.gov.
     Notes:
    Data are for permanent employees in management and professional positions.
    n/a = not available; GAO does not track staff by the category of management and professional and therefore could
      not provide this breakdown.

                              SUBCOMMITTEE RECESS

        Senator Campbell. Well, I have no further questions.
    Senator Durbin might and/or Senator Stevens, and if they do,
    they will submit those in writing to you. If you could get
    those back to us. Okay?
        Mr. Holtz-Eakin. Thank you very much.
        Senator Campbell. I thank you and with that, the
    subcommittee is recessed.
        [Whereupon, at 11:43 a.m., Thursday, March 4, the
    subcommittee was recessed, to reconvene subject to the call of
    the Chair.]

             LEGISLATIVE BRANCH APPROPRIATIONS FOR FISCAL YEAR 2005

                                  ----------

                            THURSDAY, MARCH 11, 2004

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 11 a.m., in room SD-138, Dirksen
    Senate Office Building, Hon. Ben Nighthorse Campbell (chairman)
    presiding.
        Present: Senators Campbell and Stevens.

                              LIBRARY OF CONGRESS

    STATEMENT OF HON. JAMES H. BILLINGTON, THE LIBRARIAN OF
                CONGRESS
    ACCOMPANIED BY:
            DONALD L. SCOTT, DEPUTY LIBRARIAN OF CONGRESS
            JO ANN C. JENKINS, CHIEF OF STAFF, OFFICE OF THE LIBRARIAN
            LAURA CAMPBELL, ASSOCIATE LIBRARIAN FOR STRATEGIC INITIATIVES
            RUBENS MEDINA, LAW LIBRARIAN
            DANIEL P. MULHOLLAN, DIRECTOR, CONGRESSIONAL RESEARCH SERVICE
            MARYBETH PETERS, REGISTER OF COPYRIGHTS
            DEANNA MARCUM, ASSOCIATE LIBRARIAN FOR LIBRARY SERVICES
            FRANK KURT CYLKE, DIRECTOR, NATIONAL LIBRARY SERVICES FOR THE
                BLIND AND PHYSICALLY HANDICAPPED
            KENNETH E. LOPEZ, DIRECTOR OF SECURITY
            MARY LEVERING, ACTING DIRECTOR, INTEGRATED SUPPORT SERVICES
            JOHN D. WEBSTER, CHIEF FINANCIAL OFFICER
            KATHRYN B. MURPHY, BUDGET OFFICER, OFFICE OF THE CHIEF
                FINANCIAL OFFICER

              OPENING STATEMENT OF SENATOR BEN NIGHTHORSE CAMPBELL

        Senator Campbell. The subcommittee will come to order.
        We meet today to hear from Dr. James Billington, Librarian
    of Congress, on the fiscal year 2005 request for the Library of
    Congress. Dr. Billington will also have testimony for the
    record on the Open World Leadership Program.
        Dr. Billington is accompanied by the Deputy Librarian,
    General Donald Scott, and a team of others; and we welcome you
    this morning.
        The Library is requesting almost $563 million, an increase
    of 7.6 percent over the current year. In addition, a total of
    $161 million is requested by the Library buildings and grounds
    appropriation, under the Architect of the Capitol.
        Clearly, there are many critical areas for which the
    Library seeks increases, including funding activation of the
    new audiovisual conservation center in Culpeper, Virginia, and
    increasing acquisition costs, in addition to routine payroll
    and inflationary increases. With the increases being requested,
    this budget will be very tough to accommodate in the budget
    environment we face this year, so we will be looking to you to
    prioritize and to help us make some very difficult choices as
    we move forward. Thank you very much.
        The chairman of the full committee is here this morning and
    I would like to yield to him.

                        STATEMENT OF SENATOR TED STEVENS

        Senator Stevens. Well, thank you very much. I am glad to be
    here with Dr. Billington and General Scott, but I cannot stay
    long because of other matters. I did want to come and show my
    support, basically, for the programs that are outlined in the
    budget. And I agree with you, it is going to be a difficult
    year. I want to make sure that we do the best we can to help
    the Library. Thank you.
        Senator Campbell. Dr. Billington, if you would like to
    proceed. Your complete testimony will be included in the
    record; as General Scott's will, too, if he has any comments.

                PREPARED STATEMENT OF SENATOR RICHARD J. DURBIN

        Before you proceed, Dr. Billington, we have received a
    statement for Senator Durbin who could not make it today, but
    asked that his statement be submitted for the record.]
        [The statement follows:]

                Prepared Statement of Senator Richard J. Durbin

        Mr. Chairman, thank you for scheduling today's budget
    oversight hearing on the Library of Congress and the Open World
    Leadership Center.
        I want to welcome you Dr. Billington. It has been a
    pleasure working with you in your capacity as Librarian of
    Congress. My staff informs me that you are now in your 18th
    year as the Librarian. I would also like to welcome the Deputy
    Librarian, General Donald Scott, to today's hearing.
        I recently had the opportunity to visit the Churchill
    Exhibit. It was extremely well done and I enjoyed it
    tremendously.
        Your fiscal year 2005 budget request is 7.6 percent over
    the fiscal year 2004 enacted level. While this is not as high
    as some of our legislative branch agencies' requests, it is
    rather high. I hope you will shed some light on your priorities
    so we can make informed decisions in what promises to be a very
    tight year.
        I understand that due to security upgrades at the Jefferson
    Building the retail store has been relocated. I hope you will
    talk a little bit about how the retail sales are going, both
    from the shop and from the Library's website, and what affect,
    if any, relocating the shop will have on its visibility to
    visitors to the Library.
        I'd like to hear about how your security needs at the
    Library are being addressed. I noticed in your budget request
    that you are asking for an additional 45 police personnel. I
    hope you will address the need for these extra personnel to the
    subcommittee, particularly in light of the pending merger of
    your force with the Capitol Police.
        I'm very happy with the continuing success of the Open
    World Leadership Center. The United States just hosted the
    first delegation from Lithuania and I understand it went quite
    well. I congratulate you on the success of this program, Dr.
    Billington.
        I hope you will provide us with an update on the Culpeper
    National Audio-Visual Conservation Center. I noticed a request
    for $5.28 million and 16 FTEs in your budget. It would be
    helpful to know the particulars of the request and the need for
    extra personnel.
        You are requesting $160.7 million in Library of Congress
    building projects under the Architect of the Capitol. In light
    of our tight budget constraints, I hope you will explain to the
    subcommittee what your priorities are for these projects.
        I'd also like to hear more about the Veterans' History
    Project.
        I'm anxious to hear more about your technological advances
    to the Blind and Physically Handicapped Program. I hope you
    will describe to the subcommittee the Digital Talking Book
    Machine.
        Thank you both for attending today's hearing. I look
    forward to hearing your testimony.
        Thank you, Mr. Chairman.

          INTRODUCTION OF THE ASSOCIATE LIBRARIAN FOR LIBRARY SERVICES

        Dr. Billington. Thank you, Mr. Chairman. First, I would
    like to introduce Deanna Marcum, our new Associate Librarian
    for Library Services.
        She is coming back to the Library from a decade-long
    position as President of the Council on Library and Information
    Resources, which is the only think-tank in the world, Mr.
    Chairman, devoted exclusively to library concerns.
        She was with us before as Director of Public Service and
    Collection Management at the Library of Congress; and she was
    previously Dean of the Library School at Catholic University.
    So, we are very fortunate and grateful to have her with us.

                       OPENING STATEMENT OF THE LIBRARIAN

        The Library, Mr. Chairman, in many ways can be seen as the
    Nation's strategic information reserve, at a time when our
    security, economic competitiveness, and our creative dynamism
    is increasingly dependent on information. The Library provides
    America with the world's largest and most diverse collection of
    retrievable human knowledge. At the same time, it is the mint
    record of American private sector creativity and a world leader
    in freely distributing high-quality material on the Internet.
        From this time last year to this year, we estimate that we
    had about 3 billion electronic transactions. At the same time,
    we are digitally transforming our internal processes, ranging
    from re-engineering the Copyright Office to moving into new
    user-friendly digital materials for the blind and physically
    handicapped.
        We are also developing a national plan to store digital
    collections, even as we continue to add 10,000 new analog items
    to the Library every day. We are doing all this with 7.7
    percent fewer full-time equivalent staff than we had in 1992,
    before all this began, and with a magnificent but somewhat
    aging workforce, 25 percent of whom will be eligible for
    regular retirement by September of this year with potentially
    another 23 percent, if early retirement is offered as an option
    at the Library.
        Guided by our strategic plan and a rigorous review process,
    we are requesting some resources needed to continue performing
    our statutory obligations and core mission for Congress and the
    Nation. We must increase our modest acquisition budget for
    traditional print materials, which are growing by an estimated
    15 percent, particularly in troubled regions of the developing
    world that are of concern to American foreign policy.

               ACQUISITION AND PRESERVATION OF LIBRARY MATERIALS

        In our extraordinary Arabic collections, we discovered an
    autobiography of Osama Bin Laden and two volumes of
    Afghanistan's traditional laws, that were destroyed by the
    Taliban. These were, in part, reconstructed largely by our Law
    Library, which digitized them within 24 hours for distribution
    to 1,000 institutions in Afghanistan. So, these acquisitions
    are extremely important and we must also adequately preserve
    and store them. We have 128 million analog items.

                                NAVCC--CULPEPER

        By far the largest private gift ever received by the
    Library, is an unprecedented $120 million, which is being
    donated by the Packard Humanities Institute. This is to build a
    national facility for housing the audiovisual heritage of 20th
    century America, where much of the world's history and of our
    Nation's creativity is preserved, but in presently fragile and
    perishable forms at widely scattered locations.
        This will be a state-of-the-art facility in Culpeper. The
    construction is already well underway but it requires some
    modest, largely one-time increases in our own budget to equip
    it, to prepare for the move, and to sustain for the future of
    the good relationship with our extremely generous donor.

                              FORT MEADE PROJECTS

        We are also requesting in the Architect of the Capitol's
    budget, continuation of the Fort Meade storage project for
    specially formatted collections. About 15 million of them will
    be housed here in accordance with a plan previously discussed
    with the committee. We also need a copyright deposit facility
    for housing the vast, but presently scattered, creative record
    of America into one location. This is needed to fulfill our
    preservation obligations to depositors and to assure
    continuation of the voluntary deposit system that annually
    provides more than $30 million worth of material for the
    Library's collections. These occur, actually, in the
    Architect's budget.

                             FLEXIBLE HIRING TOOLS

        Now, the single greatest challenge facing the Library in
    the digital age is to develop a workforce that can think and
    work in new ways, without losing the immense inherited
    traditional knowledge and memory embedded in our staff. We will
    soon need the committee's support for a package of flexible
    human capital tools, in line with practices already in use
    within the Federal Government. The Library simply must be able
    to train a new type of objective knowledge navigator, to
    provide Congress and the Nation with seamlessly integrated old
    analog and the new digital materials.

                                 POLICE MERGER

        With regard to the police merger, Mr. Chairman, the Library
    is fully engaged in increasing security, integrating police
    operations, and improving budget economy here on Capitol Hill.
    We are, however, deeply troubled by the proposed plan that the
    U.S. Capitol Police have issued for implementing the merger of
    the Library's police force with that of the U.S. Capitol.
        The proposed plan that the U.S. Capitol Police have
    submitted for congressional approval does not protect the
    statutory responsibilities that we bear and the distinct
    problems connected with protecting the collections, as well as
    the buildings and people of the Library. The merger is
    happening de facto and is eroding the Library's authority to
    exercise this core task, since we no longer can hire our own
    police.

                       NATIONAL FILM PRESERVATION PROGRAM

        The Library also submitted, during the first session of the
    108th Congress, a request for re-authorization of the National
    Film Preservation Program that has brought 375 motion pictures
    into the National Film Registry, which was created by Congress
    in 1988. This program has played the leading role in
    identifying endangered films, and setting national preservation
    standards, and working with other archives to save American
    films of all kinds from otherwise irreversible deterioration.

                              PREPARED STATEMENTS

        On behalf of the Library and all of its staff, I want to
    thank this committee for its continued support for, and
    interest in, the Library. Individual members of this committee
    have provided continuity and guidance for the Library. We are
    all in your debt and we will be happy to answer your questions.
        Senator Campbell. Thank you, Dr. Billington.
        [The statements follow:]
                   Prepared Statement of James H. Billington
        I appreciate the opportunity to discuss the Library of Congress
    budget request for fiscal year 2005. This unique institution has become
    increasingly important to the nation as the economic and security needs
    become increasingly dependent on knowledge and the wise use of
    information. All libraries--and especially the Library of Congress--
    must deal with the greatest upheaval in the transmission of information
    and knowledge since the invention of the printing press--the electronic
    onslaught of digitized information and communication. The Library is
    responding to this challenge, with program-focused goals and objectives
    contained in our new strategic plan, which was forwarded to the
    Congress in September 2003. The plan will undergo continuous
    improvement to ensure our place as the foremost library of the 21st
    century.
        The Library's mission is unchanging--to make its resources
    available and useful to the Congress and the American people and to
    sustain and preserve a universal collection of knowledge and creativity
    for future generations. What is new is the need to acquire, sort, and
    provide access to the massive unfiltered content of the Internet in
    order to keep our collections universal and continue to provide full
    information and services to Congress and the American people.
        The Library must continue to acquire, preserve, and provide access
    to analog collections with new storage facilities and mass
    deacidification. At the same time, the Library must implement
    fundamental technological changes to accommodate the digital
    revolution. Both collections and staff are being reconfigured by new
    initiatives in digital preservation, digital talking books, and
    Copyright reengineering, and by the increased reliance on digital
    services. The fiscal year 2005 budget request addresses this
    ``Challenge of Change; Maintenance of Tradition.''
        The priorities of our fiscal year 2005 budget, reflecting the major
    objectives in the Library's strategic plan, are: to bring the National
    Audio Visual Conservation Center into operation; to restore the
    diminished acquisition capabilities for our collections; to regain full
    funding for the Congressional Research Service staff capacity at 729
    full-time-equivalent (FTE) positions; to implement the Copyright
    Office's reengineered processes; to support the conversion to digital
    talking book technology for people who are blind and physically
    handicapped; to fund the fifth increment of the Library's mass
    deacidification program; to accelerate the Veterans History Program; to
    gain additional security for the Library's systems, staff, buildings,
    and collections; and to address critical infrastructure support
    requirements.
        For fiscal year 2005, the Library of Congress requests a total
    budget of $602.3 million ($562.6 million in net appropriations and
    $39.7 million in authority to use receipts), a total increase of $43.0
    million above the fiscal year 2004 level. The total increase includes
    $20.5 million for mandatory pay and price-level increases and $34
    million for program increases, offset by $11.5 million for non-
    recurring costs. The Library's fiscal year 2005 budget request is a net
    appropriations increase of 7.6 percent above that of fiscal year 2004.
    The Library has submitted a fiscal year 2005 budget amendment, which is
    reflected in the above numbers, that increases the net appropriations
    amount by $1 million, which is discussed under the headings ``Copyright
    Office'' ($.8 million) and the ``Sustaining the Collections'' ($.2
    million).
        Requested funding supports 4,363 FTE positions, a net increase of
    80 FTEs above the fiscal year 2004 level of 4,283. The 80 additional
    FTEs are requested to support the core needs of the collections,
    security, and management.
                         the library of congress today
        The core of the Library is its incomparable collections and the
    specialists who interpret and share them. The Library's 128 million
    items include almost all languages and media through which knowledge
    and creativity are preserved and communicated.
        The Library has more than 29 million books and other print items;
    12 million photographs; 4.8 million maps; 2.7 million audio materials;
    925,000 films, television, and video items; and 57 million manuscripts.
        Every workday, the Library's staff adds some 10,000 new items to
    the collections. Major annual services include handling more than
    875,000 on-line and customized Congressional inquiries and requests,
    registering more than 534,000 copyright claims, and circulating
    approximately 23.8 million audio and braille books and magazines free
    of charge to blind and physically handicapped individuals all across
    America. The Library annually catalogs more than 300,000 books and
    serials and provides the bibliographic record inexpensively to the
    nation's libraries, saving them millions of dollars annually.
        The Library also provides free on-line access, via the Internet, to
    its automated information files, which contain more than 75 million
    records, including more than 8.5 million multimedia items from its
    American Memory collections. The Library's acclaimed Web site
    (www.loc.gov) will record more than 3 billion hits in 2004.
                              21st century library
        As impressive as the everyday work of the Library of Congress is,
    we recognize the need to address the future. All libraries are rapidly
    changing in response to new digital technologies. The Library of
    Congress, like other research libraries, is building digital
    collections, making them readily accessible on-line, and developing
    search services previously not feasible. Digital technology also
    benefits smaller libraries because it allows them to expand and enhance
    resources for their patrons in colleges, schools, and communities.
    Libraries, in effect, are moving their catalogs and collections from
    physical buildings into patron's computers and are transforming their
    individual storage repositories into collaborative information-service
    centers. As this transformation continues, 21st century libraries will
    develop in the following significant ways: libraries will collect at
    the point of creation rather than after publication; libraries will
    complement classification systems with simpler search services;
    libraries will work with information creators and publishers to create
    digital preservation repositories; libraries will work with legislators
    to balance copyright against access needs; and libraries will retrain
    print oriented staffs for digital information services.
        In a world in which Google is the preferred search mechanism, the
    library of the future will be less the custodian of a collection in a
    physical building than a guide to Internet-accessible resources and a
    creator and provider of on-line information services. Realizing this
    library of the future depends on providing opportunities for today's
    librarians to learn to take advantage of digital developments and on
    integrating this new digital technology into the basic library
    processes of acquisition, cataloging, preservation, and reference
    services. The Library's strategic plan and this fiscal year 2005 budget
    request are helping guide us in making this inevitable change to a 21st
    century library.
                        fiscal year 2003 accomplishments
        Even as the Library plans for a dramatic new future, the immediate
    challenges continue to be addressed. In fiscal year 2003, the Library
    provided concerted congressional research support in more than 150
    major policy areas, including terrorism, health care, the U.S. economy,
    environmental and resource issues, and space exploration. The Library
    supported the war effort by making information and services available
    to the Congress as it executes its constitutional responsibilities, by
    documenting for future generations the war as it progresses, and by
    helping reconstruct the national libraries in Afghanistan and Iraq.
    Specifically, the Law Library helped reconstruct the destroyed law
    codes of Afghanistan from its collections.
        The Library also received congressional approval for the plan for
    the National Digital Information Infrastructure and Preservation
    Program; expanded the Global Legal Information Network to include the
    laws of 48 countries and international organizations; added seven new
    multimedia historical collections to the American Memory Web site;
    increased to more than 8.5 million the number of items freely available
    on-line or in digital archives; recorded more than 2.6 billion
    electronic transactions on the Library's Web sites; registered more
    than 534,000 copyright claims; added more than 1.8 million items to our
    collections; opened the off-Capitol Hill storage facility at Fort
    Meade, Maryland; and produced more than 2,700 new braille, audio books,
    and magazine titles for the blind and physically handicapped. Private
    funding enabled the Library to make notable new acquisitions, including
    the great Alan Lomax collection of Americana, and brought into
    residence a distinguished new cohort of invited senior scholars and
    competitively chosen junior researchers in the Thomas Jefferson
    Building with the opening of the John W. Kluge Center.
                national audiovisual conservation center (navcc)
        An increase of $5.28 million and 16 FTEs is requested for the
    NAVCC, a projected state-of-the-art facility for audiovisual
    collections. These funds are needed to continue the construction of the
    NAVCC and to begin the move-in of collections and staff of the Motion
    Picture, Broadcasting and Recorded Sound Division of the Library. The
    Packard Humanities Institute (PHI) is generously providing the majority
    of the funding to build the NAVCC--consolidating in one place and
    enhancing film and recorded sound preservation. The Library continues
    to work closely with PHI representatives and the Architect of the
    Capitol (AOC) on this much-needed project.
        Construction on this national repository for America's audiovisual
    treasures began in early September 2003, and the current schedule calls
    for the newly renovated Collections Building and Central Plant to be
    ready for collections to be moved in by summer 2005. The new Nitrate
    Vaults and Conservation (Laboratory) Building is scheduled to be ready
    for staff move-in by summer 2006. The Library's ability to procure,
    deliver, and install NAVCC furnishings, equipment, and infrastructure
    will require close coordination with PHI's construction schedule. The
    requested additional funding in the current budget is essential to
    maintain the construction schedule and the various components and
    procurements that support the transition to the new facility. Fiscal
    year 2005 funding will support staff relocation, collections
    relocation, and the design, procurement, and integration of the complex
    digital preservation systems within the NAVCC's audiovisual
    laboratories.
        The NAVCC will enable the Library to redress significant
    limitations in its current ability to store, preserve and provide
    access to its moving image and recorded sound collections. When the
    entire NAVCC complex is opened in 2006, the Library for the first time
    will be able to consolidate all of its collections in a single,
    centralized storage facility that provides space sufficient to house
    projected collections growth for 25 years beyond the NAVCC move-in
    date. Without the NAVCC, the Library's current preservation rate would
    result in the preservation of only 5 percent of its total endangered
    sound and video materials by the year 2015. By contrast, we project
    that the new NAVCC laboratories will enable us to preserve more than 50
    percent of these endangered collections in the same 10-year period
    after move-in. The NAVCC will also include a Digital Audiovisual
    Preservation System that will preserve and provide research access to
    both newly acquired born-digital content and analog legacy formats.
    This new system is contributing to the Library's overall development of
    a digital content repository and signals a new paradigm of producing
    and managing computer-based digital data.
        The Packard Humanities Institute's contribution to building this
    new state-of-the-art facility will represent the largest private
    donation to the Library of Congress in its entire history.
                           sustaining the collections
        Acquiring timely and comprehensive collections for the National
    Library and Law Library as well as the highly specialized research
    materials required for the Congressional Research Service (CRS) is
    among the most essential tasks the Library performs. All else depends
    on acquiring needed materials--preferably at the time they appear on
    the market. The rising tide of new kinds of knowledge and new formats
    make it essential that the Library address the already-serious
    catastrophic projected shortfalls in these areas. A total of $4.462
    million and seven FTEs are requested for addressing--for the first time
    in many years--this critical area. Lost purchasing power and the
    increased complexity and cost of acquiring proprietary electronic
    resources make this a critical problem that must be addressed.
        Serial subscriptions prices alone have increased by 215 percent
    over a 15-year period ending in 2001, yet the Library's GENPAC
    appropriation--used to purchase library materials--has grown at an
    annual average rate of only 4 percent. These shortfalls accumulated
    because the Library understated annual price-level increases for
    research materials. The Congress, in most years, has supported the
    Library's modest requests for inflationary increases in research
    materials, but the Library's methodology did not adequately factor in
    the value of the dollar, the sharp escalations in market prices for
    serials, budget rescissions, and the changes in how research materials
    are packaged and sold. The Library's fiscal year 2005 acquisitions
    budget proposals include funding for the recovery of lost purchasing
    power (a one-time increase to the Law Library [$205,000] and CRS [$1
    million], and a one-time and incremental increase in the National
    Library [$2.333 million]), for a total of $3.538 million. The $3.538
    million request includes a $.2 million budget amendment for the CRS
    element; the original CRS catchup amount was determined through fiscal
    year 2004 rather than fiscal year 2005. During the next year, the
    Library will develop a new formula that will adequately reflect the
    inflationary increases for research materials beginning in fiscal year
    2006.
        In addition, $479,000 and 7 FTEs are requested to support the new
    acquisitions methodology and policy that has been successfully piloted
    in China. Collecting materials published in China is difficult, but a
    three-year pilot project, funded by private donations, successfully
    demonstrated that the Library can acquire high quality, hard-to-obtain
    and politically sensitive materials, which traditional channels are not
    providing. Funding of $479,000 is requested to establish six teams of
    experts in the social sciences, located at carefully selected sites
    throughout China. The teams will recommend materials from their
    regions, which will then be shipped by the Library's established
    vendors. The Library's pilot program has proven that important added
    information about China can be obtained in this way. The Library
    requests funding to make this a permanent acquisition process for the
    world's largest country as it assumes an even-greater world role.
        Lastly, $445,000 is needed to allow the Law Library to begin
    properly reclassifying 800,000 volumes or one-third of its legal
    collections from the ``LAW'' class--previously used to shelve legal
    materials--to the ``Class K,'' (the new international standard for the
    classification of legal materials that was developed by the Library of
    Congress). Currently, one out of every four foreign legal documents
    cannot be located because of the outdated classification system, and
    the inevitable change to the new ``Class K'' cataloging system is
    required to effectively provide foreign legal research. The five-year
    project would enable the Law Library to meet its own cataloging
    standards before the few remaining staff with the experience and
    knowledge of the outdated ``LAW'' class cataloging leave or retire.
                               crs staff capacity
        In fiscal year 2005, CRS must face the increased cost of sustaining
    the research capacity needed to meet the legislative needs of the
    Congress. CRS is requesting a base increase of $2.71 million--the
    equivalent of about 25 FTEs. During the past ten years, the total size
    of CRS has decreased from 763 to 729. However, the salary costs per
    person have increased at a rate that exceeds the funding provided in
    the budget process. Without the proposed base increase, CRS would have
    to staff down further to a level of about 704 FTEs. The impact of this
    reduction would be a loss of CRS capacity in serving the Congress of
    about 275 hours a year in each of more than 150 major policy areas in
    which the Congress can be expected to be engaged. CRS would lose
    between eight and nine weeks of capacity per major policy area.
        CRS has been evaluating workforce opportunities and authorities to
    improve the productivity, efficiency, and attractiveness of CRS as an
    employer. During fiscal year 2003, CRS hired approximately 90 new
    staff--nearly 13 percent of the total staff population. To enhance
    retention of new staff and to further staff development Service-wide,
    CRS is requesting $546,000. This funding would be used to initiate a
    pilot student loan repayment program, to increase slightly its training
    and related travel budgets, and to provide monetary incentive awards to
    the Service's most highly talented and productive employees. The CRS
    Director will provide more details of this request in his statement.
                                copyright office
        The Copyright Office's Reengineering Program, which will be
    completed in fiscal year 2006, requires additional funding authority
    for fiscal year 2005. The extensive multiyear Reengineering Program has
    redesigned the Office's business processes, developed a new information
    technology infrastructure, created new work-flows and new job roles,
    and developed a new facilities plan. The program will allow the
    Copyright Office to replace outdated information systems with
    technology that promotes the use of electronically transmitted
    applications and works. The Library requests $3.66 million, in budget
    authority and equal offsetting collections authority (zero net
    appropriations), in order to implement the facilities portion of the
    Reengineering Program. This funding will support relocation of staff,
    redesign and construction of current space, and acquisition of
    furniture and other equipment.
        In developing the fiscal year 2005 budget request, inflationary
    factors for mandatory pay and price level increases were applied to
    both the Copyright Office's net appropriated funds and receipts funds.
    In reviewing this approach and upon further analysis, the Library has
    determined that the increases needed to cover inflationary growth
    cannot be met by the initially requested receipt level. As a result,
    the Library is requesting, via a budget amendment, that the fiscal year
    2005 receipt level be reduced by the inflationary adjustment of
    $810,000, with a corresponding increase in net appropriations. The
    Register of Copyrights will provide in her statement more details about
    the Reengineering Program and this adjustment.
                          digital talking book machine
        In support of the Blind and Physically Handicapped (BPH) program,
    the National Library Service (NLS) for the BPH is implementing a
    revolutionary change from analog to digital technology, which has been
    projected and planned since the early 1990s. The service will replace
    cassette tape players with Digital Talking Book (DTB) players and
    introduce a new medium for distributing the DTBs: solid-state
    (``flash'') memory, replacing the present cassette tape.
        NLS plans to introduce the DTB players to its customers by fiscal
    year 2008. The Library is requesting a total of $1.5 million in fiscal
    year 2005, of which $1 million will support the beginning of the design
    phase of the DTB player. In concert with the development of a DTB
    player, NLS will begin converting its current analog collection to
    digital format to ensure that its patrons will have a large and diverse
    collection of DTBs by fiscal year 2008. The balance of $500,000 in the
    request is for the first installment of a three-year conversion of
    10,000 audio titles from analog to digital format. Support for the
    fiscal year 2005 budget will help prepare the way for the new delivery
    system to replace the current analog cassette tape technology.
                              mass deacidification
        A total increase of $948,000 is requested for the fifth increment
    of the Library's five-year, $18 million initiative to save through
    deacidification one million endangered acidic books and five million
    manuscript sheets during the period 2001-2005. The Congress has
    approved the first four increments of this critical preservation
    program, and the Library requests the planned increase to continue to
    scale up to $5.7 million annually. By 2005, the Library plans to have
    reached the capacity to deacidify 300,000 books and 1,000,000
    manuscripts annually.
                            veterans history project
        Additional funding of $1.035 million and four FTEs is required for
    this important and growing project. Support is requested to increase
    public participation in interviewing veterans and creating the
    collection; to preserve accounts and documents for researchers,
    educators, and future generations; and to disseminate this compelling
    material to the public more widely. The overwhelmingly positive
    nationwide reaction to this program has exceeded our expectations, and
    will require additional resources to respond to the growing demands of
    this mandated program.
                                    security
        The Library is requesting an increase of $7.306 million and 47 FTEs
    to support improved security of the Library's systems, staff,
    buildings, and collections. The Library continues to work with the
    Architect of the Capitol (AOC) to support major perimeter security
    improvements, consistent with the entire Capitol Hill campus (e.g.,
    garage barriers, bollards, entrance reconfigurations). Seventy-five
    percent of Phase I (Jefferson and Madison Buildings) perimeter security
    project construction has been completed. However, unforeseen structural
    conditions below the James Madison Building have resulted in a partial
    redesign and additional AOC costs to complete the Phase I work. The
    Library understands that the AOC is working with the Committee to fund
    the additional costs and complete the initial phase. We ask the
    Committee to support the funds required to bring our perimeter security
    fully up to Capitol Hill standards.
        The Library is also working with the Capitol Police regarding the
    filling of 23 new police officer positions authorized by the Committee
    for the Library's campus. Capitol Police officers will be detailed to
    the Library to fill the new positions beginning in March 2004.
        Components of the Library's fiscal year 2005 security budget
    request are:
        Police Staffing.--The Library is requesting $3.825 million and 45
    FTEs for the continuation of the fiscal year 2004 hiring initiative,
    which identified a police staffing shortfall of approximately 100 FTEs.
    This is the second of three fiscal year requests for funding beginning
    in fiscal year 2004. For fiscal year 2005 funding and staffing are
    being requested in the Library of Congress's budget to ensure that this
    critical need is set forth to the Congress. The staffing requirements
    will not diminish if and when the Library's Police Force merges with
    the Capitol Police Force. The requirements will be the same, regardless
    of which force provides the service. The Library needs additional
    police positions to meet minimum staffing levels at all public building
    entrances; to staff new and enhanced fixed exterior posts; and to
    ensure an overtime rate that does not exceed 10-15 percent above the
    standard 40-hour workweek.
        Police Merger.--On August 6, 2003, the Library responded in a
    letter to U.S. Capitol Police Chief Gainer regarding the U.S. Capitol
    Police Implementation Plan for the Merger of the U.S. Capitol Police
    and the Library of Congress Police. In this response, we relayed our
    concerns about how this proposed plan will impact the Librarian's
    statutory responsibility to protect Library assets.
        The Library remains concerned about the how the merger of the
    Library of Congress Police Force with the U.S. Capitol Police Force
    diminishes the Librarian's authority to exercise his responsibilities.
    The current plan proposed by the Capitol Police does not take into
    account the statutory obligation of the Librarian of Congress to
    oversee the Library's collections and buildings. The Library's police
    force is focused not only on the physical safety of our staff,
    visitors, and buildings, but on the integrity and security of our
    invaluable collections and is the primary arm for the Librarian of
    Congress in discharging this responsibility. At the very least, the
    Library must have a presence on the Capitol Police Board in order to
    argue for the level of resources made available to protect the
    Library's assets. The Capitol Police officers that serve on Library
    property must also be under the technical direction of and accountable
    to the Librarian of Congress. The Library looks forward to working with
    this Committee and the authorizing Committees to ensure that the merger
    is completed in a manner that preserves the mandated authority of the
    Librarian.
        Security Equipment Maintenance.--A total of $930,000 is requested
    for the maintenance and repair costs of five new major electronic
    security systems, which will become fully operational in fiscal year
    2005. Sustaining their operations will be crucial for Library security.
    The requested funding will ensure that these vital security systems,
    installed in accordance with the Library's Security Enhancement Plan,
    are adequately maintained and repaired by accepted best industry
    practices.
        Intrusion-Detection System.--$1 million is requested to build-out
    the electronic access control and primary intrusion detection systems
    requirements identified in the Library's Security Plan's risk framework
    and needed to mitigate safety risks within the Library.
        Alternate Computer Facility (ACF).--An increase of $622,000 is
    needed for CRS to support the annual recurring operating costs of this
    all-important facility. The ACF will provide for IT business continuity
    in the event of a catastrophic failure of the Library's computer
    center. In the event that the Library's primary computer center becomes
    inoperable, the ACF will also provide continued on-line service to the
    Library's remote/local users, preventing disruption of service to the
    Congress and its constituency.
        IT Security Certification and Accreditation.--Security must be
    treated as an integral part of the Library's overall IT infrastructure
    if risks are to be systematically reduced. Accordingly, the Library has
    embarked upon a thorough review of its IT security. Funding of $929,000
    and two FTEs is requested in fiscal year 2005 for ITS to certify and
    accredit existing, mission-critical IT applications, systems, and
    facilities of the Library ($720,000) and to conduct computer security
    audits by the Inspector General Office ($209,000/2 FTEs).
                             infrastructure support
        The Library is requesting $6.531 million and nine FTEs to address
    critical support systems, space, and staff initiatives. These Library-
    wide initiatives support all organizational entities and are key to
    performing our varied tasks efficiently and to providing our customers
    with efficient and seamless services. Funding supports:
        Information Technology (IT).--IT is a critical tool for achieving
    organizational success in the Library. An additional $3.316 million is
    needed for the Library's IT infrastructure. To keep pace with the rapid
    increase in electronic traffic, ITS server processing power and
    associated storage has increased, and the corresponding funding for
    maintenance must also increase. A total of $1 million is needed to
    cover ITS's actual and projected maintenance costs (we anticipate a 14
    percent increase in hardware maintenance and a 6 percent increase in
    software maintenance in fiscal year 2005). The Library's technology
    needs change as services expand, and they require 24-hour support to
    satisfy the Library's customers, which sharply raises contract costs.
    The requested $1.017 million will allow ITS to support the increasing
    costs of the IT service provider contract, which the current ITS budget
    cannot fund. Without added funding, ITS will have to either curtail
    services or dangerously cut back on equipment purchases or maintenance.
    One-time funding of $1.299 million is also needed to implement a single
    integrated search function for the Library's primary on-line
    information sources (LIS/Thomas, American Memory, LC Web pages, and the
    Integrated Library System bibliographic catalogs). This initiative will
    support searching with the commonly used data standard (XML) that the
    Congress is now applying to the preparation of its publications. As the
    House and Senate develop and implement new authoring systems that
    support XML, the congressional clientele expect the Library to have a
    search engine and related software that can handle XML. CRS will be
    partnering with the ITS Office to identify the requirements, develop
    solutions, and procure, migrate, configure, and optimize the needed new
    search engine tools.
        Facilities Management.--An increase of $1.880 million and nine FTEs
    are requested to modernize the Library's facilities services,
    supporting space management ($1.658 million/8 FTEs) and custodial
    services ($222,000/1 FTE). The Library's Facilities Services Division
    cannot effectively meet current and future Library space support
    requirements, and lacks flexibility to respond to the Library's rapidly
    changing needs. Multiple internal and external audits and studies of
    Facilities Services have identified fundamental problems in facilities
    programs that only division-wide modernization and workforce
    development can improve. The funding request addresses the most urgent
    recommendations identified by the auditors, several outside expert
    consultants, the ISS Director, and the Facilities Services management
    team. Implementation of these recommendations will provide the Library
    with the basic support tools, previously not available to the Library
    but used throughout industry and by other government agencies, to
    increase the efficiency of all space-related projects, and enable
    rotated scheduling of preventive maintenance (reducing costly repairs
    Library-wide). These steps are especially important for the Offices of
    Safety Services, Security and Emergency Preparedness, and for ITS.
        Reduced funding for custodial services in recent years has resulted
    in a general deterioration of building conditions, and an additional
    $196,000 and one FTE (custodial work inspector) is needed to supplement
    the current contract. Since Fort Meade will add 335,000 square feet of
    space between fiscal year 2005-2009, the Library is requesting $26,000
    to fund the needed custodial services.
        Personnel Management.--A total of $1.335 million is requested to
    upgrade the Library's personnel hiring system. The future of all of the
    Library's efforts depends on our greatest asset the expertise,
    intellect, and dedication of a Library staff that makes our vast
    collections and services relevant and accessible. Library management
    must be able to train, develop and renew its staff and add fresh talent
    to sustain the Library's leadership role amid the massive technological
    changes in the 21st century. The Library's Human Resources Services
    (HRS) needs a fully integrated and comprehensive Web-based Human
    Resource Information System (HRIS) that interfaces with the Library's
    payroll provider. The added funding of $1.335 million requested for
    fiscal year 2005 will procure and implement staffing and classification
    modules that will be integrated with the emerging HRIS and will improve
    the timeliness and efficiency of the Library's hiring and
    classification processes.
                         library buildings and grounds
        The Architect of the Capitol (AOC) is responsible for the
    structural and mechanical care and maintenance of the Library's
    buildings and grounds. In coordination with the Library, the AOC has
    requested in its fiscal year 2005 budget an increase of $121.8 million
    for Library-related work and support. The AOC budget includes funding
    for six key projects requested by the Library. The two most crucial
    projects are (1) continuation of the Fort Meade construction program by
    the construction of Book Storage Modules 3 and 4 ($38.5 million) and
    (2) construction of the Copyright Deposit Facility ($59.2 million).
    Both of these capital improvement projects are critical in addressing
    basic storage and preservation deficiencies, as well as serious
    environmental, fire, and employee safety issues. Delay in funding this
    construction will make an already-critical situation worse and will
    increase the future cost of construction. Funding is also requested for
    increased space modifications ($150,000), construction of six secure
    storage rooms/vaults ($860,000), a dishwashing machine for the Madison
    cafeteria ($210,000), and an integration and upgrade study ($400,000)
    of our aging book conveyor system. The Library strongly recommends the
    approval of the AOC's Library Buildings and Grounds budget, which is
    essential for the effective functioning of the Library.
                            legislative initiatives
        The Library has proposed language to extend, by five years, the
    period for securing commitments from partners to join the National
    Digital Information Infrastructure and Preservation Program (NDIIPP),
    to provide the mandated matching funds, and to work out formulae to
    include grants, cooperative agreements, contracts, and other legally
    enforceable pledge agreements entered into before 2010.
        The Library's strategy for meeting the requirements of the
    legislation revolves around making investments that require mutual
    participation and cost-sharing agreements with a wide variety of
    stakeholders. Given the current economic climate, the Library
    anticipates that a substantial volume of non-federal matches will be in
    the form of in-kind, cost sharing contributions to the joint NDIIPP
    projects that will be defined and developed by the Library over time.
    The Library seeks to extend the period of time in which these non-
    federal contributions can be solicited and received. The Library's
    ability to support these jointly funded projects will be substantially
    enhanced if the $75 million that is subject to a matching requirement
    can be made available for obligation over the extended time frame in
    which the different schedules of pledge donations are likely to be
    fulfilled.
        The Library is funding the NDIIPP by investing in a first set of
    practical experiments and tests. Following an assessment, we will fund
    a second set of investments as described in the plan that was submitted
    to and approved by the Congress in December 2002. The initial planning
    and fact-finding phase of NDIIPP made it clear that the entire amount
    available to NDIIPP could not be responsibly committed without the
    benefit of the earlier testing and iterative learning, followed by
    reinvestment in a second generation of work. The language we are
    proposing for fiscal year 2005 is required to implement this approach,
    which was needed for the Congressionally approved NDIIPP plan.
    Attaining the $75 million of matching federal funding and achieving the
    desired results in the preservation of digital material requires
    investing the initial $20 million in a series of practical projects
    that will unfold over a five-year period.
        The creation of an attainable national preservation strategy will
    occur incrementally, because of the complexity of the challenge and the
    number and diversity of partners involved. The Library is taking
    actions to begin building the preservation infrastructure by: building
    the technical architecture that can support these multiple
    partnerships; developing a network of partners who will share the
    responsibility in the course of the next five years; and participating
    in joint collaborative research on long-term digital preservation and
    archiving issues.
        A first formal call for network partners was released in August
    2003, and we received final proposals on November 12, 2003. The
    Library, along with the National Endowment for the Humanities, is
    making selections among the proposed applicants to seed the NDIIPP
    network with partners for long-term preservation of digital content.
    The Library anticipates awarding up to $15 million of the available $20
    million available in this initial round of investments.
        The Library is simultaneously funding a test of existing
    architectures to assess how digital content can be shared and inter-
    operate among different institutions. This will result in a revised
    technical architecture and a second generation of investments in
    developing the overall technical preservation architecture.
        The Library is partnering with the National Science Foundation
    (NSF) in a digital archiving and long-term preservation research
    program. The goal of the program is to stimulate research that builds
    capacities for long-term management and preservation of digital
    materials. The intent of the program is to support both technical and
    economic, social, and legal research topics related to archiving
    digital materials. The Library signed a memorandum of understanding
    with NSF in February 2004.
        Language is also proposed to prohibit transferring funds from the
    Library of Congress to the State Department (DOS) for the construction
    of embassies. The DOS has proposed establishing a Capital Security
    Cost-Sharing Program that, by fiscal year 2009, would cost the Library
    as much as and possibly more than the entire present cost of our
    overseas offices. Under the proposed new program, the Library would be
    paying DOS, by fiscal year 2009, approximately $7.4 million for 202
    positions located in 12 locations--95 percent of which are located in
    only six locations. This assessment would be equivalent to 90 percent
    of the Library's fiscal year 2004 total present overseas budget of
    $8.231 million. The DOS proposal does not follow government cost-
    sharing standards and would unfairly leverage additional costs on the
    Library's overseas acquisitions programs that are essential for our
    continued understanding of the Near East and other foreign areas of
    national concern.
        The budget before this subcommittee reflects important needs for
    the Library--preservation of its collections, expansion of its services
    to the Congress increasingly services for the nation. As the national
    library leading and working with a complex network of partners at the
    beginning of the 21st century, the Library's workforce--now and in the
    future--is an essential element to the success of our mission and
    goals. In previous appearances before this Subcommittee, I have
    stressed the need to transfer knowledge and expertise to a new
    generation of knowledge specialists. An estimated 40 percent of the
    Library's workforce will be eligible to retire by 2009. The Library
    must also be able to attract and retain the very best talent
    available--in CRS, the Law Library, the Copyright Office, in its core
    library management areas.
        Elsewhere in the federal government--widely in the Executive Branch
    and within sister agencies such as GAO--the recruitment, management,
    and pay scales of the federal workforce are being changed. The Library
    will be seeking from the 108th Congress authorization for broad-based
    human capital tools and flexibilities, in line with practices already
    in use within the federal government. We need to ensure that the
    Library of Congress can attract, retain, motivate, and reward a top
    quality and high performing workforce to serve the Congress and to
    sustain and make even more usable the nation's strategic information
    and knowledge reserve. In order to meet the ambitious goals of our
    strategic plan and accomplish our goals, we must be able to compete on
    a level playing field within the federal government for the best
    talent. The Library's services to Congress and the nation are unique
    and multi-faceted, and they require the Library's workforce to possess
    cutting-edge knowledge and skill sets.
                                    summary
        As the keeper of America's--and much of the world's--creative and
    intellectual achievements, the Library of Congress is keenly aware of
    its awesome responsibility. This Library is the research and
    information arm of the national legislature and contains the world's
    largest storehouse of knowledge and the mint record of America's
    creativity. The strategic plan and supporting fiscal year 2005 budget
    request will continue the Library's great tradition, which covers the
    world and has now been expanded to include Congressionally mandated
    leadership in the massive task of sorting and preserving digital
    material. All of this is needed to support the Congress, the public,
    and the democratic ideal.
        The Library's vision for the 21st century is to lead the nation in
    ensuring access to knowledge and information by promoting the Library's
    creative use of its unmatched human and material resources for the
    Congress and its constituents. By 2008, the Library plans, with the
    support of the Congress, to have achieved the following:
      --The Library's National Audiovisual Conservation Center is operating
            and is recognized as having assumed international leadership in
            providing film and recorded sound preservation and
            accessibility. The new storage facilities at Fort Meade are
            operating and are recognized as an outstanding example of how
            to perform off-site storage, long-term preservation, and rapid
            access to the material.
      --The core national programs of Library Services and the Office of
            Strategic Initiatives are recognized to have sustained the
            breadth and depth of the universal artifactual and digital
            collections. These programs will also have provided positive,
            verifiable assurance that the Library is acquiring,
            establishing bibliographic control, preserving, providing 24/7
            access, and securing the collections for future generations
            regardless of the information's format.
      --The Congressional Research Service has succeeded in restructuring
            both its permanent workforce and its supplemental interim
            capacity so that it is always the first-choice research
            provider of the Congress for authoritative, nonpartisan,
            timely, and objective research and public policy analysis in
            support of legislative deliberations. It will have improved
            both the quality of its analysis as well as its overall
            research capacity.
      --The National Library Service for the Blind and Physically
            Handicapped has completed the development of digital talking
            book technology and has begun conversion to use of the
            technology through distribution of the new talking book
            machines.
      --The Copyright Office is a leading advocate of an effective national
            copyright system that serves both creators and users of
            copyrighted works; is the primary advisor to the Congress on
            national and international copyright matters and is a relied-
            upon source of information and assistance to federal agencies
            and the judiciary on these matters; is providing its services,
            including registrations, electronically; and is creating
            registration records compatible with the Library's cataloging
            system.
      --The Law Library of Congress will have achieved and maintained an
            enhanced electronic system involving almost all countries
            important to the U.S. Congress in order to provide it with more
            comprehensive, authoritative, and timely global legal
            information.
      --The Library has implemented human capital management initiatives
            resulting in recruitment, development, and maintenance of a
            diverse, well-trained, highly skilled, and high-performing
            workforce to filter, navigate, analyze, and objectively
            interpret knowledge for the Congress and the nation. Further,
            the workforce functions in a management-supported environment
            characterized by open communication, innovative thinking,
            leadership in managing change, and effective and efficient
            program and supporting processes rivaling the best commercially
            available services. Special emphasis will be paid for providing
            flexible rewards and responsibility for staff with substantive
            expertise that leads to productivity improvements.
        On behalf of the Library and all of its staff, I thank the Congress
    for its continued support of the Library and its programs. I ask for
    the support of the Library's fiscal year 2005 budget request as the
    next step in moving toward achieving these strategic outcomes.
                                     ______

                   Prepared Statement of Daniel P. Mulhollan
        Mr. Chairman and Members of the Committee: I am pleased to appear
    before you today to discuss the work of the Congressional Research
    Service (CRS) and our fiscal year 2005 request. I want to thank this
    Committee for the confidence it has shown in CRS in the past and the
    support that has enabled CRS to serve the Congress during these
    difficult times of demanding policy deliberations, which have been made
    especially challenging because of our heightened need to provide for
    security at home and abroad, and because of greatly increased fiscal
    constraints.
        As CRS completes its ninth decade of service to the Congress, we
    continue to uphold our sole mission: We work exclusively and directly
    for the Congress, providing research and analysis that is
    authoritative, timely, objective, nonpartisan, confidential, and fully
    responsive to the policy-making needs of the Congress.
        The Congress continually and routinely calls on CRS research
    assistance as it examines policy problems, formulates responses, and
    deliberates on them across the broad range of complex and challenging
    issues on the legislative agenda. Our paramount concern, especially
    given the critical constitutional role of the Congress during a time of
    war, is preserving independent, accessible, and responsive analytic
    capacity in the legislative branch.
        Mr. Chairman, my statement today highlights CRS accomplishments in
    supporting the Congress over the past year. My statement also outlines
    the fiscal challenges CRS will face in the upcoming year and reports on
    the steps we have been taking to contain costs. I am concerned about
    the Service's ability to continue providing the level of support
    Congress has come to rely upon. For the coming year, we seek to
    maintain our research support for the Congress including priorities
    targeted to meet major law-making needs as Congress faces continuing
    and unfolding policy concerns, as well as significant, unanticipated
    crises.
             fiscal year 2003 highlights in crs legislative support
        Throughout fiscal year 2003 Congress called on CRS as it confronted
    numerous, challenging public policy problems in its demanding schedule
    of legislative and oversight activities. Today I will touch upon some
    issues emanating from the war with Iraq and efforts to enhance homeland
    security last year. CRS has and continues to play a significant role in
    keeping the Congress abreast of policy questions, options and their
    implications during rapidly changing situations of vital importance to
    the Nation.
        The War with Iraq.--U.S. involvement in Iraq--the diplomatic
    activities and military preparations leading up to the war, the war
    itself, and the war's aftermath--dominated the congressional foreign
    affairs and defense agenda during the year. CRS specialists responded
    to diplomatic, military, and postwar issues; provided briefings on the
    congressional joint resolution authorizing the President to use force
    against Iraq; and fielded queries on war powers, declarations of war,
    and the preemptive use of force under international law.
        As military action began, CRS assisted with issues such as Iraq's
    relations in the Middle East, U.S. efforts to change the Iraqi regime,
    and the United Nations oil-for-food program. Analysts examined the
    postwar needs of Iraq for humanitarian and reconstruction assistance,
    the role of the international community and the United Nations, Iraq's
    economy and foreign debt, and the likelihood that any U.S. loans to
    future Iraqi governments would be repaid.
        Homeland Security and the Potential for Terrorism.--To assist the
    Congress as it addressed homeland security and terrorism, CRS continued
    its Service-wide, coordinated response that draws upon a wide range of
    expertise. Following passage of the Homeland Security Act, CRS experts
    developed a comprehensive organization chart that identified statutory
    requirements for congressional staff who monitor the establishment of
    the Department of Homeland Security (DHS). As Congress began oversight
    activities pertaining to this new government agency, CRS provided help
    with procedural and jurisdictional questions, briefings on the
    operational and organizational aspects of DHS, and analyses on the
    protection, use, and disclosure of critical infrastructure information
    submitted to DHS. Anticipating the subsequent intense demand for
    information and analyses on new or expanded programs related to
    homeland security, CRS examined such matters as emergency management
    funding programs, federal disaster recovery programs, and federal
    assistance programs aiding state and local government in terrorism
    preparedness.
        Other related domestic policy issues related to the war and
    terrorism arose late in the 107th and continued throughout the 108th
    Congresses. CRS responded to requests regarding bioterrorism and health
    issues, such as the public health system's ability to respond to health
    threats posed by chemical and biological agents; border and
    transportation safety; the continuity of Congress in the event of a
    catastrophic attack; critical infrastructure security including
    communications systems, oil and gas pipelines, electrical power grids,
    and highway systems; immigration concerns such as restructuring the
    issuance of visas; and legal ramifications of anti-terrorist
    enforcement, including the roles and authorities of law enforcement and
    the intelligence community.
        The Service's overall productivity and performance in fiscal year
    2003 are best illustrated by four measures of its workload during the
    year: (1) support for 160 major policy problems at all stages of the
    legislative agenda; (2) maintenance of 900 key products in major policy
    areas, representing a 30-percent increase over the 700 products
    maintained at the close of last fiscal year; (3) immediate 24/7 online
    access to key products and services through the Current Legislative
    Issues (CLI) system on the CRS Web site, with a 10-percent increase in
    congressional use of our electronic services over use last year; and
    (4) custom work for the Congress--thousands of confidential memoranda,
    in-person briefings, and telephone consultations. In fiscal year 2003,
    CRS delivered 875,197 research responses, a number that includes
    analysis and information requests, product requests, in-person requests
    and services at Research Centers, electronic services, and seminars.
                            cost containment efforts
        Over the past several years, in order to sustain the level of
    research support on issues such as those outlined above, CRS has
    conducted numerous management reviews to evaluate current operations,
    maximize value, and implement cost containment measures. As stewards of
    the taxpayers' money, it is our obligation to review continuously how
    we can work most cost-effectively. Our reviews identified opportunities
    for containing operational costs of current services: for example,
    closure of the Longworth Research Center and one copy center,
    elimination of the Info Pack, and reorganization of the Service's
    information professional staff. In addition, the Service formed
    collegial research partnerships with major public policy universities
    to enhance research capacity, created a hiring strategy that does not
    routinely replace staff attrition one-for-one, but rather continually
    adjusts the work force composition to respond to the evolving needs of
    the Congress, and examined outsourcing of selected activities where
    cost efficiencies could be realized. I assure you that CRS has
    exhausted all reasonable means of realigning existing resources to
    maximize its efficiency and effectiveness in supporting the Congress.
    Yet despite these many efforts, our research priorities for the future
    remain in jeopardy without additional funding.
                        fiscal year 2005 budget request
        Mr. Chairman, I am requesting a total of $100.9 million for fiscal
    year 2005. This represents a 10.7 percent increase in funding over
    fiscal year 2004. This funding request is critical to the continual
    delivery of high-quality analysis to the Congress. A 2001 congressional
    directive obligates the CRS director to: ``. . . bring to the attention
    of the appropriate House and Senate committees issues which directly
    impact the Congressional Research Service and its ability to serve the
    needs of the Congress. . . .'' [H. Rept. 1033, Cong. Rec. 146, H12228,
    November 30, 2001]. I am fully aware of the fiscal realities that the
    Congress faces and the hard choices that must be made in the coming
    months, and I make a request for this funding because I believe that
    these resources are critical to preserving our ability to provide the
    Congress with the level of expertise and breadth of services it has
    come to rely upon so heavily.
        The remainder of my statement summarizes three critical challenges
    facing the Service this upcoming year preserving the Service's research
    capacity, meeting congressional requirements, and funding
    uncontrollable increases for essential research materials.
                     preservation of crs research capacity
        Preserving CRS's research capacity is of the highest priority. Over
    the last several years, with the help of the Congress, the Service has
    been able to abate erosion of its workforce. The Service's capacity--
    measured by the number of full-time equivalent positions (FTEs)--has
    decreased from 763 in 1994 to 729 this year. After delays due to the
    implementation of the Library's new merit selection, the Service has
    nearly rebuilt its capacity by hiring much needed analytic staff. To
    preserve this capacity the Service is requesting two actions full
    funding for its mandatory pay and inflationary increases and a one-time
    adjustment to sustain its current ceiling of 729 full time equivalent
    staff.
        CRS needs $4.3 million to cover its mandatory and price-level cost
    increases. Without this adjustment, the Service would have to reduce
    its full-time equivalent (FTE) capacity by 37 staff. In addition, the
    Service's budget request includes a one-time financial adjustment of
    $2.7 million to sustain the CRS current FTE level of 729. Without the
    one-time funding adjustment, CRS would have to staff down further by
    another 25 FTEs.
        Change in the CRS workforce composition is an increasingly
    significant factor affecting personnel costs. The nature of the work--
    reflecting the increasingly complex and specialized research and
    information requirements of the Congress--dictates that CRS hire
    individuals with high levels of formal education and specialized
    experience. In the period from fiscal years 1995 to 2003, the grade
    level of the average competitive CRS hire has increased from a GS-7,
    step 9, to a GS-13, step 1.
        When Congress confronts unanticipated major policy events, it turns
    immediately to CRS to draw on the existing stock of knowledge of CRS
    experts and their proven ability to assess situations and options
    reliably and objectively. Congress gained significant, immediate
    support from CRS experts as the world listened to early reports of the
    Columbia Space Shuttle accident, during the electricity blackout last
    August, when Mad Cow disease was found in the United States, when ricin
    was discovered in a Senate office building, and on many other
    occasions.
        Congress routinely turns to CRS as it engages in long-term policy
    endeavors for which precedents or experience is limited. Congress is
    receiving continuing assistance from CRS experts in formulating,
    implementing and overseeing a complex complement of provisions for
    homeland security; in grappling with major revisions in government
    personnel practices; in responding to an array of novel assaults on
    corporate and financial integrity; in responding to world health
    threats from SARS, avian flu, and AIDS; in assessing unique conditions
    in Iraq and Afghanistan relating to security, reconstruction and
    governance; in relating a mix of policy objectives across the use of
    the tax code and providing for a robust economy in a far more
    globalized setting than experienced before.
        Without the full funding of our mandatory costs and the one-time
    adjustment to our salary base, CRS would loose a total of 62 full-time
    equivalent staff--a 9 percent reduction to its workforce. The results
    would be devastating. What could be said with certainty is that,
    overall, CRS would not be able to provide the Congress with 102,300
    productive work hours per year. For example, for the 160 active policy
    areas for which CRS maintain ongoing research coverage, 682 productive
    work hours--more than 21 weeks per year--per major issue--would be
    unavailable to the Congress. While the Service would do its best to
    carry out its mission to serve the Congress as it carries out its
    legislative function, this outcome would, by the very scope of its
    effect, force the Service to reduce seriously or eliminate customized,
    timely, and integrative analyses of some critical policy issues. It
    would be difficult to predict what issues would be the most impacted
    but seasoned, expert staff working on high demand issue areas will
    likely leave and we would not be able to replace them.
                       meeting congressional requirements
        Another challenge facing the Service is to support CRS business
    continuity and improved technological infrastructure activities as
    required by the Congress. I am seeking $622,000 for continuing
    operations of the alternative computer facility (ACF) that houses back-
    up and emergency computer and other technology capacity for the
    Congress, the Library and CRS. With this facility CRS will be able to
    meet needs of the Congress in emergency situations while maintaining a
    secure and reliable technology environment.
        The Service is also requesting $549,000 to develop the XML
    international standard authorized by the Congress as the data standard
    for the creation and accessibility of all congressional documents
    through the Legislative Information System (LIS). CRS will continue to
    work with the House Committee on House Administration, the Senate
    Committee on Rules and Administration, and the Library's Information
    Technology Services to implement this much-needed capability. Without
    funds to replace the existing search system, the LIS will need
    extensive, costly, and proprietary modifications to be able to receive
    and index the legislative documents you need.
     meeting uncontrollable inflationary increases for essential research
                                   materials
        And the last challenge facing the Service is funding research
    materials. Providing accurate, timely, authoritative, and comprehensive
    research analysis and services to the Congress has become increasingly
    difficult due to the high annual increases in the costs of research
    materials. Thus our budget includes a one-time financial adjustment of
    $1.0 million to meet cumulative increases over recent years in
    subscription and publication prices. Restrictive industry policies
    limit our alternatives for obtaining needed materials, especially
    electronic resources, in a more cost-effective manner. Information
    resources sought with the additional funding include those that provide
    information on port security, prescription drug pricing, and the nature
    and status of corporate financial reporting.
        In closing, Mr. Chairman, I appreciate the opportunity to inform
    the Committee about the state of CRS. During a time of war, Congress,
    the First Branch of Government, must ensure that it maintains its
    independent capacity to analyze the complex challenges that the Nation
    confronts in combating terrorism and sustaining homeland security.
        I trust that you agree that CRS contributes significantly to this
    independent capacity of the Congress. I also trust that you believe we
    are fulfilling our mission in a way that warrants your continued
    support. I am, of course, always available to answer any questions that
    the Committee might have.
                                     ______

                     Prepared Statement of Marybeth Peters
        Mr. Chairman and Members of the Subcommittee: Thank you for the
    opportunity to present the Copyright Office's fiscal year 2005 budget
    request.
        For fiscal year 2005, the Copyright Office is seeking the
    Committee's approval of two major requests. First, we are requesting
    $3,660,000 in new offsetting collections authority and spending
    authority to construct the new office space required to support our
    reengineered business processes. I am pleased that, with this
    Committee's support, we have been able to keep our Reengineering
    Program moving ahead and are now planning for full implementation in
    fiscal year 2006. Second, as part of the Architect of the Capitol's
    budget, we are requesting $59.2 million to construct a Copyright
    Deposit Facility at Fort Meade. This facility will, for the first time,
    ensure that copyright deposits not selected by the Library are stored
    for certain periods in environmental conditions that allow us to meet
    our legal requirements to retain, and be able to produce copies of,
    these works.
        I will review these two areas in more detail, but first will
    provide an overview of the Office's work.
              review of copyright office work and accomplishments
        The Copyright Office's mission is to promote creativity by
    sustaining an effective national copyright system. We do this by
    administering the copyright law; providing policy and legal assistance
    to the Congress, the executive branch, and the judiciary; and by
    informing and educating the public about the principles of our nation's
    copyright system. The demands in these areas are growing and becoming
    more complex with the rising use and evolution of digital technology.
        I will briefly highlight some of the Office's current and past
    work, and our plans for fiscal year 2005.
    Policy and Legal Work
        We have continued to work closely with Members and committees on
    copyright policy and legal questions during the present Congress.
    During the past year, I testified at hearings on peer-to-peer networks,
    state sovereign immunity and the ``broadcast flag'' issue, and the
    Office's General Counsel testified at a hearing on additional
    protection for databases.
        Last April, the House Subcommittee on Courts, the Internet, and
    Intellectual Property held a hearing on the Copyright Royalty and
    Distribution Reform Act of 2003 (H.R. 1417), a matter which could
    impact the operations and budget of the Office. This bill, which was
    reported to the House on January 30, would replace Copyright
    Arbitration Royalty Panels (CARPs) with three full-time independent
    Copyright Royalty Judges appointed by the Librarian of Congress. CARPs
    are ad hoc panels composed of arbitrators which determine royalty
    rates, distributions, and conditions of payment. Panels have been
    operating under Copyright Office auspices since Congress eliminated the
    Copyright Royalty Tribunal in 1993.
        The current system authorizes the Copyright Office to deduct CARP
    administrative costs from royalty fees collected by the Office. The new
    program would require funding primarily from net appropriations. We
    estimate these new costs could approach $1 million.
        During the remainder of this session, the Office expects to assist
    Congress with legislation on and oversight of a number of copyright
    issues, including the extension of the Satellite Home Viewer Act (which
    expires December 31, 2004) and review and possible revision of section
    115 of the Copyright Act, and in particular, the provisions of section
    115 governing digital transmissions of music.
        Last year, we assisted the Department of Justice in a number of
    important copyright cases, including cases before the Supreme Court. We
    also completed the bulk of our work on the second Section 1201
    rulemaking to determine whether any particular classes of copyrighted
    works should be exempted from the protection afforded by the
    prohibition on circumventing technological protection measures that
    control access to such works. As a result of this rulemaking, four such
    classes of works were exempted, including one proposed by the American
    Federation for the Blind and supported by library organizations aimed
    at making sure that the blind and visually impaired gained meaningful
    access to literary materials.
        The Copyright Office continues to provide ongoing assistance to
    executive branch agencies on international matters, particularly the
    United States Trade Representative (USTR), the Department of Commerce,
    and the Department of State.
        As part of this work, our staff participated in U.S. delegations to
    negotiations of several bilateral and plurilateral Free Trade
    Agreements that have been recently concluded, including with Australia,
    Morocco, and a group of Central American countries, and will continue
    involvement with ongoing negotiation efforts, such as with the Free
    Trade Area of the Americas and Bahrain. We also were active in drafting
    and negotiating the intellectual property provisions of the bilateral
    Free Trade Agreements with Chile and Singapore signed in 2003.
        We have also participated in U.S. delegations to multilateral fora
    such as meetings of the World Intellectual Property Organization's
    Standing Committee on Copyright and Related Rights and ad hoc Committee
    on Enforcement, and the preparatory meetings for the World Summit on
    the Information Society. We completed reviews of draft copyright laws
    for a number of countries and, for USTR, provided assistance to other
    nations in their World Trade Organization accession processes. In the
    past year, we also advised and assisted the Bureau of Customs and
    Border Protection in resolving issues and developing new procedures
    relating to border enforcement.
    Registration and Recordation
        In fiscal year 2003, we made it a priority to complete our recovery
    from the fiscal year 2002 mail disruption while also improving the
    timeliness of our registration and recordation services. During fiscal
    year 2003, the Copyright Office received 607,492 claims to copyright
    covering more than a million works. Of these, it registered 534,122
    claims. The Examining Division reduced its registration work on hand by
    half and continued toward a goal of currency in correspondence. Two
    years ago, the Office required an average of approximately 200 days to
    issue a registration certificate. By the beginning of fiscal year 2003,
    we had shortened the average processing time to approximately 130 days.
    In January 2003, the Office began a focused effort, reducing the number
    of claims awaiting processing by nearly a third over the course of the
    last nine months of the fiscal year. At year's end, the average time to
    process a claim was 90 days.
        We also reduced processing times in the Cataloging Division. The
    Division created cataloging records for 543,105 registrations in fiscal
    year 2003. Throughput time from receipt in the division until the
    completion of a public record was reduced from over seven weeks to less
    than five.
        As part of its statutory recordation services, the Copyright Office
    creates records of documents relating to copyrighted works that have
    been recorded in the Office. These documents frequently involve works
    of significant economic value. During fiscal year 2003, the Documents
    Recordation Section recorded 16,103 documents covering approximately
    300,000 titles of works. The majority of documents involve transfers of
    rights from one copyright owner to another. Other recorded documents
    include security interests, contracts between authors and publishers,
    and notices of termination of grants of rights. During the course of
    the year, the Section cut its processing time by more than half.
    Licensing Activities
        As part of our responsibilities for the copyright law's statutory
    licenses, we administered six Copyright Arbitration Royalty Panel
    proceedings. Five involved rate adjustments, and one was a distribution
    proceeding. The use of electronic funds transfer (EFT), including the
    Treasury Department's ``Pay.gov'' Internet-based remittance collection
    system, in the payment of royalties increased. The percentage of
    remittances made via EFT was 94.5 percent at the end of fiscal year
    2003. The Licensing Division deducts its full operating costs from the
    royalty fees.
    Public Information and Education
        In fiscal year 2003, the Office responded to 371,446 in-person,
    telephone, and e-mail requests for information, a 4 percent increase.
    The Office web site received 16 million hits, a 23 percent increase. We
    were pleased to inaugurate new Spanish-language web pages on our site
    which provide basic information on copyright and instructions on how to
    register a work.
        Finally, we worked throughout the year on a project to develop a
    new official seal and an updated logo for the Office. For more than 25
    years, the Office's seal and logo has been a representation of a pen in
    a circle. The new seal and separate logo became effective on January 1,
    2004.
                        fiscal year 2005 budget request
        I will now describe the two principal areas of our fiscal year 2005
    request.
    Reengineering Program
        Since my testimony last year, we have made significant progress in
    our Reengineering Program:
      --On August 22, we awarded a contract to SRA International to build a
            new integrated IT systems infrastructure which will support our
            new processes and public services. This work began in
            September; since then we have defined the system architecture,
            refined our system requirements to match the selected software
            environment, and completed the preliminary design of staff
            screens and the system's data model.
      --We completed a facilities project plan, a program report
            identifying facilities and requirements across the Office,
            adjacency and blocking diagrams, and began detailed design work
            for each division.
      --We completed much of the process of reviewing and revising the more
            than 135 position descriptions for jobs that will be changed,
            in some way, in our new processes.
        Our challenge over the next two years is to coordinate our
    execution across the three reengineering fronts of information
    technology, facilities, and organization. Since our processes are
    changing so dramatically, our Office structure in each of these areas
    will change dramatically as well to the point that our new processes
    cannot begin without full implementation of each front.
        At the same time we are making this dramatic transition to our new
    processes, we need to make sure that we continue to provide our
    services to the public including registration, recordation, licensing
    activities, and acquisition of copyrighted works for the Library's
    collections. We realize that the most significant impact on our public
    services, in terms of the Office's transition, will be in the area of
    facilities. As such, we need to complete our facilities work as quickly
    as possible. We determined that under the fastest construction
    schedule, this redesign would take at least six months. We then
    concluded that, in order to keep providing our services to the public,
    the best option would be to move off site into rental space during the
    construction period.
        Our plans are to begin construction in October 2005 and complete
    this work in April 2006.
        We are including in our fiscal year 2005 approximately $7.5 million
    in spending in the facilities area, consisting of both relocation and
    construction costs. As I mentioned, this budget submission requests an
    increase of $3,660,000 in offsetting collections authority to allow us
    to use funds in the No-Year Account for these tasks.
        We are working with the staff of the Architect of the Capitol on
    the overall facilities approach, and are very appreciative of their
    understanding of our requirements and willingness to work with us to
    address them. We are on schedule to fully complete the design and
    construction documents this year so that the Architect can request
    fiscal year 2006 funding to perform the structural and safety aspects
    of the construction work.
        In addition to our facilities work, in fiscal year 2005, we will be
    piloting our new processes with the new IT systems, obtaining Library
    approval of our new organization, and completing bargaining with the
    unions.
        While we still have a lot of work ahead of us, I believe the entire
    Copyright Office staff is excited that they are involved in building
    the Copyright Office of the future. The result will be better service
    to our customers, including more of our products being available
    online, and a better work environment for our staff.
    Fort Meade Copyright Deposit Facility
        The imperative for the Copyright Deposit Facility at Fort Meade is
    to fulfill the requirement under the Copyright Act for the Office to
    provide for long-term preservation of copyright deposits. The Copyright
    Office is required by statute to retain unpublished copyright deposits
    for the full-term of copyright, which is the life of the author plus 70
    years, and to retain published deposits for the longest period
    considered practicable and desirable by the Register. Retention periods
    of 120 years for unpublished deposits and 20 years for the published
    deposits have been established to fulfill this legal requirement.
        Deposits serve as evidence of what was registered; they reflect the
    nature and extent of the material that has been registered. Copies of
    copyright deposits, certified by the Copyright Office, are used in a
    variety of legal proceedings. The Office retrieves approximately 2,500
    works from its offsite storage each year.
        The present retention requirements took effect in 1978. If we
    continue to hold deposits under the conditions that have been in place
    since then, some works will deteriorate to such an extent that we would
    not be able to either ascertain the full work or make a copy.
        The Office currently stores about 50,000 cubic feet of deposits at
    the Landover Center Annex, a GSA leased facility. In addition, the
    Office stores over 85,000 cubic feet of deposits at a commercial
    records management storage facility in Sterling, Virginia run by Iron
    Mountain.
        The legal deposits consist of a variety of formats and types, which
    include: paper in varying quality and size such as books, architectural
    drawings, sheet music, and computer code printouts; magnetic tape (both
    audio and video); photographs; CD-ROMs, CDs, and LPs; and fabric.
        The current storage space, both at the leased facility and the
    commercial records storage facility, fails to provide the appropriate
    environmental conditions necessary to ensure the longevity of the
    deposit materials. The storage space at the Landover Annex is subject
    to wide temperature variances, high humidity levels and water leaks.
    The commercial records storage facility is also subject to seasonal
    temperature fluctuations and uncontrolled humidity levels.
        Continued storage under present substandard environmental
    conditions will accelerate the aging of the deposit material and reduce
    the useful life span by 75 percent, i.e., deterioration that would
    occur in 100 years occurs in 25 years. These conditions place these
    legal deposits at risk in the long term. This is particularly
    applicable to the video and audio magnetic tapes in storage which are
    especially sensitive to environmental conditions. In addition, the
    current storage space at the Landover Annex and the commercial records
    storage facility does not meet the NARA fire protection requirements
    for storage of long-term records which must be in place by fiscal year
    2009.
        The Fort Meade facility would be a highly secured, environmentally
    controlled, high-density storage building with sufficient space for
    retaining current and future deposits. The facility has been 100
    percent designed and construction documents are complete. It will be in
    full compliance with the NARA regulations for records storage
    facilities, and would bring together all copyright deposits in a single
    location, improving retrieval time and our service to the public.
        The Fort Meade facility will allow for 245,000 cubic feet of
    storage. When the building is ready for occupancy in fiscal year 2007,
    we would immediately occupy about two-thirds of that space. Currently,
    the Copyright Office is adding an average of 3,500 cubic feet of
    deposits of published works and records and 3,500 cubic feet of
    deposits of unpublished works annually. Although it is difficult to
    estimate the volume of copyright deposits that we will receive in the
    future, we project that the facility would provide adequate storage
    space at least through 2020.
        We consulted with the Library's Preservation Directorate to
    determine the climate control requirements to ensure that the useful
    life of the legal deposits would be sufficient to meet the legally
    mandated retention periods. Because published and unpublished deposits
    retention periods are different, the necessary environmental
    requirements are different as well. Published deposits need to be
    stored in a temperature of 68 degrees Fahrenheit (F), and 45 percent
    relative humidity (RH). Unpublished deposits must be stored in a
    climate-controlled area maintained at 50 degrees F and 30 percent RH.
        We have briefed the Committee staff on our current storage problems
    and our need for this facility. The Committee staff has asked us to
    ascertain whether there are acceptable alternative storage options. We
    have contacted NARA and Iron Mountain to determine whether other
    storage options exist. All options need to be evaluated based on our
    requirements in the areas of environmental conditions, security and
    retrieval of deposits. We will report our findings to the Committee
    shortly.
           fiscal year 2005 offsetting collections authority request
        As I have mentioned, for fiscal year 2005 the Office is requesting
    a one time increase of $3,660,000 in offsetting collections authority,
    to be funded by fee receipts in the No-Year Account, for the facilities
    work related to our Reengineering Program. In addition, the budget
    submission contained inflationary factors for mandatory and price level
    increases that were applied to both the Copyright's appropriated and
    receipt funds. This resulted in an additional $809,594 increase to
    offsetting collections authority for a total increase of $4,469,594.
        In reviewing this approach, and upon further analysis of receipt
    projections, we have determined that inflationary increases cannot be
    met by the requested increase in offsetting collections authority.
    Receipts have generally been level since fiscal year 2001 and there
    does not appear to be any basis to believe they will increase in fiscal
    year 2005. As a result, we are requesting that the fiscal year 2005
    offsetting collections authority be reduced by the inflationary
    adjustment of $809,594, with a corresponding increase in net
    appropriations. We have submitted a formal budget amendment to make
    this change.
        Certain factors support a conservative receipt projection in fiscal
    year 2005. Currently, there is no mail backlog, so all receipts have
    been accounted for. Recent delays in the delivery of mail, however,
    underscore the Office's vulnerability to unforseen events and the need
    for conservatively projecting receipts. The relocation and construction
    phase of the Reengineering Program could disrupt fee processing for a
    few weeks, reducing the receipt level in fiscal year 2005.
        In summary, I ask that the fiscal year 2005 budget request for
    Copyright Basic offsetting collections authority be reduced to
    $26,843,406, and that net appropriations be increased by $809,594 for a
    total of $20,178,594. The use of the no-year funds to partially fund
    the facilities piece of the reengineering implementation will leave
    approximately $620,000 in the account for unanticipated decreases in
    fee receipts.
        I would be most grateful for the Committee's acceptance of this
    budget amendment.
                                   conclusion
        Mr. Chairman, this fiscal year we are determined to continue the
    improvements we have made in providing public services and to maintain
    steady progress in our Reengineering Program.
        Our fiscal year 2005 request permits us to move forward on the
    facilities work critical to the final implementation of our
    Reengineering Program. The new Copyright Deposit Facility at Fort Meade
    gives us the assurance that we will be able to meet the copyright law's
    requirement that deposits be retained under proper conditions.
        I thank the Committee for its consideration of this request and for
    its support of the Copyright Office in this challenging time of
    transition and progress.

                         OPEN WORLD LEADERSHIP PROGRAM

        Senator Campbell. Since the chairman of the full committee
    is here, I would like to ask one question first, that I was
    going to get to a little later, but as the chairman of the
    Board for the Open World Program, this is a program that
    Senator Stevens was instrumental in helping move.
        Would you give us a quick update on the program, since we
    authorized that expansion to new countries?
        Dr. Billington. Yes, sir, Mr. Chairman. We will shortly be
    delivering the Open World's 2003 Annual Report to the Congress;
    but just a few highlights.
        In 2003, a total of 1,201 families, in 542 communities in
    46 States, hosted people from this program. We have completed
    pilot programs also in Ukraine, Uzbekistan, and Lithuania,
    launched a new cultural program in Russia, while continuing to
    bring political and civic leaders in Russia. Our alumni now
    total 7,547. There is also a group who came from Belarus.
        This has been extremely useful. I think the addition of
    Russia's cultural leaders, who play an important role in the
    development of the country, has been an important new
    dimension; and it focused on vibrant areas outside of Moscow
    and Petersburg that have not previously had the opportunity to
    come. The first hosting was in North Carolina and Michigan, and
    it has already spurred some collaborative efforts in historic
    preservation and plans for exchanges of exhibitions. So, the
    spin-out, the roll-out, of this is very gratifying.
        The focus on the rule of law continues. We have had 838
    Russian judges and legal professionals hosted by Federal and
    State judges, and that has lead to the establishment of sister
    courts and all kinds of relationships.
        Senator Campbell. Do they come over one time?
        Dr. Billington. Yes, they come--well, there have been
    occasional repetitions but almost all of them are one time,
    yes, from--and that is just terribly important, because they
    have a lot of professional demands.

                  GAO REVIEW OF OPEN WORLD LEADERSHIP PROGRAM

        Senator Campbell. There is a GAO review of the program now;
    isn't there? Do you know what their preliminary findings are?
        Dr. Billington. Yes. The GAO review, which has been
    completed, and we have had a chance to comment on it. I do not
    know that it has been published yet, but I have reviewed the
    draft, which should be published, I think, this week.
        They spent a lot of time on this, and I want to give them
    full credit, traveling to Russia and Ukraine to interview State
    Department officials and Open World alumni. The draft report
    found that our delegates were highly favorable about their Open
    World program, and noted that the congressional sponsorship was
    particularly important because it helped the program attract
    emerging leaders who might otherwise not have participated.
        The program also came up with some recommendations for
    long-term strategic and business planning, which we have
    already begun on and will be incorporating into the next
    meeting of the board. So, I think it has been very helpful and
    it has generally reinforced the impressions we have had very
    distinctly. With the average age of 38, these people--large
    numbers of women, something totally new for Russia. It is
    really a different kind of exchange program--and it has been
    valuable to the American hosts, communities, families, and
    community leaders that have given so much in-kind support.
        One of the GAO recommendations is that we try to quantify
    that. It is going to be hard to quantify it because it is real
    people from all 89 regions of Russia----
        Senator Campbell. Those are personal relationships that
    carry on.
        Dr. Billington. Our American hosts are real people from all
    over the States, all 50 States, and the District. So, it has
    been a very rewarding program that has gotten good reviews and
    I think has been very successful.
        We also had a group from Belarus that was very important.
    They met with the Governor of Virginia, with the Helsinki
    Commission.
        Senator Campbell. Yes. I met several from Belarus as
    Chairman of the Helsinki Commission.
        Dr. Billington. Yes, sir.

                       FUNDING PRIORITIES AND CHALLENGES

        Senator Campbell. Dr. Billington, I guess I need to ask you
    what we have asked every agency that has come before the
    committee, and that is: What happens if we do get a freeze in
    the fiscal year 2004 level on your budget, and have you
    prioritized things that you are--I mean from the wants to the
    desperate; and are you prepared, if we have to, to make any
    cuts in your programs?
        Dr. Billington. Well, if we had a freeze, the most
    immediate effect would be to radically reduce staff, since
    personnel costs represent, on average, almost 65 percent of our
    overall budget; and in the case of CRS, it is 89 percent. So
    probably, we would have to consider RIFs, furloughs, and so
    forth.
        Without the requested $20.5 million, for instance, for
    mandatory pay and price staff increases, we would have staff
    reductions that would be about 195 FTEs in the LC,S&E
    appropriation--a 7 percent reduction in capacity, 62 FTEs in
    CRS--a 9 percent reduction in capacity, and 26 FTEs in the
    Copyright Office.
        Senator Campbell. Well, the committee is thinking of
    staffing and hiring.
        The committee understands that years ago you instituted a
    new hiring system; is that correct?
        General Scott. Yes; that is correct.
        Senator Campbell. What is the status of that hiring system?
    I understood in your testimony, I am not sure if that was an
    across-the-board number you mentioned, of 7.7 percent fewer
    staff than 1992, was that----
        Dr. Billington. Yes. We presently have 7.7 percent fewer
    FTEs now than we had in 1992, and we are doing a tremendous
    amount more work, as I think is evident. So, to have further
    reduction beyond that would be quite serious.
        There would be all kinds of implications for many important
    ongoing initiatives, for example Culpeper--not to do our part
    that prepares for the processing and the movement of things
    into the building--when the construction is underway largely
    with private sector costs would upset a whole set of
    relationships there.

                                AGING WORKFORCE

        Senator Stevens. Yield to me right there. I must leave. But
    would you enlighten the chairman about the problem of the aging
    of your staff, and then assess these for really reaching out
    now to train people, to take the place of so many people? I
    think it is unique.
        Also, the one thing I would like to see you consider is, I
    spent some time with the archivists the other evening, and they
    are now going through a digitalization program similar to what
    you have gone through. I wonder if you could find the
    opportunity to confer with them to see if you could assist them
    in the progress of their new program to go digital with all of
    their materials as possible, particularly in terms of the aging
    of the staff? That worries me considerably.
        Dr. Billington. Yes, this is tremendous; 48 percent of
    Library staff by this September will be either eligible for
    regular retirement or eligible for early out retirement, if
    they are given that option. This is very serious, particularly
    at a time when we are, in effect, re-tooling people to get into
    the new electronic age and we are losing a lot of our subject
    expertise that has enabled us to find these important things,
    particularly in trouble spots around the world. But, I invite
    General Scott to comment on this. We hope to bring a package
    forward quite soon, and perhaps General Scott can elaborate on
    this.
        General Scott. Yes, sir.
        Senator Campbell. General Scott.
        General Scott. Thank you.
        Senator Campbell. Go ahead.
        General Scott. Yes, Mr. Chairman. With respect to the
    Library's workforce, it is a highly qualified, aging workforce.
    By the end of September this year, 25 percent of our workforce,
    some 1,033 individuals, will be eligible to retire. We also
    estimate that another 23 percent would be eligible to retire if
    we had an early out this year.
        For each year projected ahead, we would of course continue
    to have more employees eligible to retire. By 2009, or
    thereabout, we could be looking at one-half of our workforce
    that would be eligible to retire.
        Dr. Billington has just referenced that our challenge is to
    retain those who we can, retrain staff to handle the new
    knowledge navigation requirements under the digital period, and
    remain competitive in the hiring process. We will be submitting
    a legislative proposal that would in addition to other
    management tools give Dr. Billington some flexibilities for
    handling the fluctuation with staff retirements that we expect
    to happen within the next 3 to 4 years.
        Senator Campbell. What is the average years of service of
    the people who are retiring?
        General Scott. It ranges from 22 to 24 years.
        Senator Campbell. They stay a long time.
        General Scott. Yes, sir.
        Dr. Billington. This requires succession planning which
    includes both retraining current staff, and hiring new staff.
    To successfully accomplish our planing effort, we are going to
    need a great deal more flexibility. We will have a package to
    present to you, Mr. Chairman, very soon that will build on the
    recognition of this problem, capitalizing on HR initiatives
    that have been approved by Congress for other agencies.
        The demands on this institution, with a very low training
    budget and an extremely high demand for skills dictate that we
    focus even more energy on succession planning; CRS has been in
    the forefront but this is an extremely important institutional
    issue that we gain greater flexibility and competitiveness.
    This is important because what our people are doing.

                        COLLABORATION WITH THE ARCHIVES

        Incidentally, on the question on collaboration with the
    Archives, we would be very happy to do that. We have been
    talking with the Archives in connection with the digital
    preservation plan and with other Federal agencies, as well. So,
    we are happy to share our experience and to work
    collaboratively with other institutions.

                               FLEXIBLE WORKFORCE

        But this is really the development of a flexible, well-
    trained workforce that is able to work seamlessly between the
    old traditional materials, of which we have unique copies,
    particularly in these trouble spots in the Third World that no
    other library really has the materials on, and at the same
    time, integrate it with the digital world, which is exploding
    at an exponential rate.
        The demands on our people are going to be colossal. We will
    be coming back to you with proposals for legislation that can
    help us in that regard.

                               CRS STAFF CAPACITY

        Senator Campbell. Along the manpower line, I had a question
    relating to CRS and I did not know if you wanted to try to
    answer it; or Mr. Mulhollan, if he is with you here. Mr.
    Mulhollan, come on up to the table there.
        Could you tell the committee why the CRS needs $2.7 million
    for what is called ``lost purchasing power''? What does that
    mean? Does it mean your average pay level has increased
    significantly, or are you requesting more staff, or what does
    lost purchasing power mean?
        Mr. Mulhollan. Yes, sir, that refers to the budgetary
    resources needed to sustain the current CRS staff. You, the
    Congress, are facing more complex issues--whether it is the war
    on terrorism, homeland security issues, aging of the U.S.
    population, infrastructure problems, or nuclear proliferation--
    you require greater expertise on each of these complex issues.
    For many years, CRS and this committee has been supportive of
    what Dr. Billington referred to with regard to succession
    planning. CRS faces the possibility of having half of our staff
    retire by 2006. We have already begun replacing them--in fact,
    last year, we filled 91 vacancies.
        The cumulative financial impact of these two phenomenum has
    been an overall shift in the composition of the CRS workforce.
    In 1995, aside from special recruiting programs, the average
    new hire was a GS-7, step 10. Today, it is a GS-13, step one.
    This increase is indicative of the greater level of expertise
    needed by the Congress. In addition, the vast majority of our
    losses are staff who are covered by CSRS, the older Civil
    Service Retirement System. Where the average costs of employer-
    paid benefits are 13\1/2\ percent.
        Nearly all of new employees are covered under the newer
    retirement system, FERS, where the average benefit is 27
    percent. That fact alone doubles the employer-paid benefit--
    which is significant in an organization where the average grade
    is a GS-13, step nine.
        Another influence contributing to lost purchasing power is
    the gap on the pay raise. In fiscal year 2004, we requested,
    and you approved, a pay increase of 3.7 percent; however a 4.2
    percent pay raise was enacted--creating a $400,000 deficit in
    our fiscal year 2004 budget. That is four FTEs.
        Finally, the rescission of 0.59 percent, in the CRS budget
    was $540,000--equating to five FTEs. So, that is a loss of nine
    FTEs in fiscal year 2004 alone. We are looking for the
    committee to provide the Service with a one-time adjustment to
    sustain an FTE level of 729.
        Senator Campbell. I wish I had not asked that question.
        I am just kidding. I appreciate that, for the record.
        Mr. Mulhollan. You are welcome.
        Senator Campbell. Thank you, Mr. Chairman.

                            NAVCC--CULPEPER DONATION

        Dr. Billington, the very generous donation that Mr. Packard
    did of $120 million, how does that compare with what we are
    investing in that National Audiovisual Conservation Center?
        Dr. Billington. Well, the original arrangement was that
    over a period of time, the Congress would provide $16.5 million
    and the Packard Humanities Institute would match it with some
    $50 million. That adds up to about $66 million. The Congress
    has appropriated its part for that original investment but the
    costs overall have doubled to $120 million--or, actually, more
    than that, but the Packard Humanities Institute has agreed to--
    very generously agreed to--absorb all the additional
    construction costs.
        So, all we are asking for, in the current budget, is for
    added staff who can work on the processing and sorting of these
    materials, which is widely scattered. A lot of that is
    permanent value for--as well as to begin the move; because the
    train is moving very fast, thanks largely to their added
    investment in this. And we will be, by next summer, ready to
    move into the re-done vaults for storage; and the following
    year, a whole new building will come on stream. So, this is
    moving very rapidly and all the added construction costs have
    been absorbed by the Packard Humanities Institute.
        What our part of the bargain is, it was attached to the
    agreement, the tripartite agreement among us, the Packard
    Humanities Institute; and the Architect of the Capitol, of
    course, is making sure that all of this conforms to all of the
    relevant standards and so forth.
        We are asking for some FTEs and some added funding that
    will enable us to fully process this material and prepare for
    the move. A lot of that is one-time cost, which will not stay
    in the base; but it is essential that it be done now so that
    the schedule of moving these things in can be done immediately
    and will not hold up construction.
        Let me see, a total of $16.5 million was appropriated for
    the acquisition.
        Senator Campbell. $16.5 million?
        Dr. Billington. Yes, but we will need additional funding
    for the annual carrying costs, which must be covered. A lot of
    the requests that are included for this year will be one-time
    costs that will not be repeated but are essential to come on
    stream at this point, so that the whole process can go forward.
        So, those are the basic outlines, Mr. Chairman. I can give
    you a full, detailed accounting and projection, if you would
    like, on this, for the record.
        [The information follows:]

        From fiscal year 2000 to fiscal year 2003, the Congress
    appropriated $16.5 million to the Architect for the acquisition
    of the facility. In fiscal year 2004, the Congress appropriated
    $14.8 million to the Library for the National Audio-Visual
    Conservation Center to support one-time equipment and other
    implementation costs. In fiscal year 2005, the Library is
    requesting an increase of $5.3 million for a total project cost
    of $20.1 million. Total Library funds through fiscal year 2008
    are projected to be approximately $77 million of which $9.8
    million reflect ongoing program costs for fiscal year 2009 and
    beyond.

                 LIBRARY BUILDINGS AND GROUNDS--BUDGET REQUEST

        Senator Campbell. Your budget request includes $161 million
    for buildings and grounds, which is a 312 percent increase over
    the prior year appropriation for that activity. There are two
    projects which account for the majority of that money; $39
    million for the two new book storage modules at Fort Meade, and
    $59 million for the new copyright storage facility.
        Can you just briefly describe those two facilities? Are
    there any alternatives to those buildings?
        Dr. Billington. Well, just briefly. The one--the copyright
    deposit facility is already essential for the reasons that I
    have indicated. They are examining some variant options but it
    does not appear that any will be cheaper than the presently
    projected one.
        The other is dealing with basic storage for special format
    collections. For copyright deposit, the obligation to store
    unpublished works has been extended for 20 years, because of
    the extension of the copyright term. So, we have a much bigger
    pile-up even than we had before; the same is true of our
    special collections.

                                  LEASED SPACE

        Senator Campbell. The storage now of all that material, is
    it mostly in leased space or in Government buildings scattered
    around?
        Dr. Billington. It is in leased space, namely at Landover.
    I think I will let General Scott, who has been working most
    closely on these issues, elaborate, if he would.
        Senator Campbell. Okay.
        General Scott. Thank you, sir. With respect to modules
    three and four, Mr. Chairman, those modules are for special
    collections. With special collections, we are talking about
    maps, and we are talking about microfilm, we are talking about
    prints and photographs.
        Currently, those items are being stored in leased
    facilities, the largest of which is in Landover. Now, modules
    three and four--first, let me just make a statement that all of
    the construction for the modules is about 5 years behind, which
    sort of exacerbates the problem of deterioration, and making
    sure that we can preserve those items.
        Now, we also are concerned that in a delay, particularly
    with the copyright deposit facility, any delay increases the
    risk of further deterioration. There is----
        Senator Campbell. Are those leased spaces climate
    controlled?
        General Scott. Yes. Some of it is not climate controlled,
    others have minimal climate control.
        Senator Campbell. What is the cumulative cost of all that
    leased space to the Library of Congress, do you know off hand?
        General Scott. I do not have the cumulative total, Mr.
    Chairman, but I will provide that for the record.
        Senator Campbell. I would like to know that, if you could
    get that to us.
        General Scott. Yes, sir.
        Senator Campbell. It would help----
        General Scott. Will do.
        Senator Campbell [continuing]. When we talk about that big
    increase for facility construction, if we would know the
    comparative costs of what it is costing us now. I think the
    committee would be interested in that.
        [The information follows:]

        Lease space for storage collections is costing the Library
    approximately $1.293 million in fiscal year 2004 and $1.390
    million in fiscal year 2005.

                           COPYRIGHT DEPOSIT FACILITY

        General Scott. Yes, sir. I will add that with the copyright
    deposit facility, that the Copyright Office is currently
    looking at three alternatives. The first is in Lenexa, Kansas,
    where the National Archives has leased some storage space.
        Senator Campbell. Kansas?
        General Scott. Yes, sir. Lenexa, Kansas. There is a cave
    out there that meets some of the requirements for preservation
    controls, and that sort of thing.
        Senator Campbell. What is in that cave now?
        General Scott. Some National Archives material. We are
    looking at it to come up with some cost comparisons. We are
    also looking at the alternative computing facility, which is
    new out at Manassas, Virginia. And the third site is a
    limestone cave at Iron Mountain. We expect to have our report
    completed within 2 or 3 weeks, and we will certainly make sure
    that the Committee has access to all of that information.
        Senator Campbell. Okay. I appreciate that.
        Dr. Billington. There are two considerations, Mr. Chairman,
    on this; one is effective preservation and the other is
    accessibility. One of the great things about Fort Meade module
    one, which is more than two-thirds filled now, is that every
    single request to retrieve has been answered successfully. They
    found it and brought it to the main reading rooms, where the
    stuff can be used fairly rapidly.
        So, you may get excellent preservation at one of these
    distant locations but you will not get the access. We have to
    have continued access because you never can tell what is going
    to be important, German archaeological records----

                        PRESERVATION OF THE COLLECTIONS

        Senator Campbell. Let me ask you, in some of this leased
    space that is not climate controlled, have you been able to
    monitor deterioration of any of the things that you have stored
    there or have you lost anything, because of it being stored in
    places that are not controlled?
        Dr. Billington. Well, we--yes. We do monitor our
    preservation department physically restores or does
    preservation treatment of some chemical or just physical sort
    to somewhere between 300,000 and 500,000 physical items every
    year. We have a very active program for deacidification but
    also transposition into more safety-based films and so forth.
    So, part of this whole process of moving into these things is
    to assure that we can get the highest state-of-the-art
    preservation protocols, which Congress has encouraged us to
    make, and for various formats, actually brought into place.
        I mean Culpeper--for instance, an archive of radio and
    television materials was mandated by the Congress in 1976.
    Culpeper will finally enable us to realize that. It will also
    include film and recorded sound of all kinds. So, this
    preservation is of capital importance; it is monitored very
    heavily. We estimated that something like 75,000 or 77,000
    printed volumes a year risk disintegration. So, we have turned
    the pages into----
        Senator Campbell. How many volumes?
        Dr. Billington. So, these are problems that our
    preservation department works on very intensively; and we are
    making great progress thanks to the Congress' support. But
    without these facilities, we cannot be sure that the progress
    is uniform and that the immense 128 million item collections
    are going to be safely preserved for posterity.

                     EMBASSY CONSTRUCTION--BUDGETARY IMPACT

        Senator Campbell. I understand. Thank you. The last
    question, the Library has six overseas field offices for
    acquiring international publications, and you requested a
    provision exempting the Library from a State Department
    proposal to charge all U.S. Government agencies with an
    overseas presence to pay a portion of the Department of State's
    new building program.
        Why do you believe the Library should be exempt from the
    State Department's proposal and what would be the budgetary
    impact if the State Department's proposal is enacted?
        Dr. Billington. Well, the budgetary impact, I can give you
    the exact computations on this, Mr. Chairman. But let me just
    say that this would be really quite catastrophic. The way the
    assessment is computed, in any case, is based on constructing
    150 Embassies--95 percent of the Library's staff is located in
    only six positions--none of which are a part of the proposed
    new construction. While the Library does have three positions
    in two locations where new Embassies are projected to be built,
    we question the $7 million price tag for three positions.
        So if you figure it up, this is an extremely cost-effective
    way, not only for the Library of Congress but for the other
    research universities that use these things. These offices are
    almost all in trouble spots in the so-called developing world,
    which are of extreme importance to the United States. We would
    have to reduce, immediately, the budget for actually gathering
    in these works.
        I can give you some exact statistics. Let me see, the
    proposal would nearly double the cost of our overseas offices
    eventually to about $15 million from the $8.2 million they cost
    today. As I say, it is based on the number of all employees
    overseas, as opposed to the actual use of space and services.
        Overseas offices are critical, as I say, to the gathering
    of the information of this developing world. So, I think we
    just have to block this inequitable charge from the State
    Department and we would appreciate your help--these overseas
    offices have never been more important. Islamabad, Delhi,
    Djakarta, Nairobi, Cairo, these are areas that are extremely
    important to the United States--there are very few secrets in
    the world. So much can be discovered from more effectively
    reading; and, to jeopardize the ability to put their maximum
    effort on acquiring materials, rather than just paying this
    inequitable surcharge, would make a huge difference.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senator Campbell. Thank you. I appreciate it. I have no
    further questions, Dr. Billington. Thank you for appearing.
    There may be some in writing from other members of the
    committee. Senator Durbin, the ranking member, was tied up
    today and could not get here. He may have some questions that
    he will send to you in writing.
        Thank you both for appearing.
        General Scott. Thank you, sir.
        Dr. Billington. Thank you.
        Senator Campbell. General Scott, thank you for being here.
        [The following questions were not asked at the hearing, but
    were submitted to the Library for response subsequent to the
    hearing:]
                Questions Submitted by Senator Richard J. Durbin
                                  retail sales
        Question. Dr. Billington, as you know I have been a strong advocate
    of retail sales within the Library of Congress. Could you please update
    me on the status of the Library's retail activities initiatives?
        Answer. The Congress appropriated $335,000 per year for 3 years to
    the Library to support its retail initiatives, beginning in fiscal year
    2004.
        Both the Retail Sales Shop and the Photoduplication Service (PDS)
    ended fiscal year 2003 in the black.
        Our online sales revenues have totaled $105,000 in the year since
    the last hearings. This represents an increase on the $73,000 we
    reported this time last year.
        We have introduced a new website that allows visitors for the first
    time to purchase pre-selected images from the Library's collections.
        We concentrated on major activities to implement the Business
    Enterprises strategy developed and presented to Congress last year.
        We focused on (1) improving and expanding existing e-commerce
    operations; and (2) adding key infrastructure fixes to improve the
    financial management and operations of the Sales Shop and PDS.
        We took actions that included: reducing operating costs, installing
    a new accounting application in PDS, and setting new pricing policies.
        We have developed a ``Strategic Plan Fiscal Year 2004-2006'' and an
    ``Implementation Plan Fiscal Year 2004'' that provides a planning
    framework, goals, and implementation actions.
        We have established a team dedicated to the development of this
    program in the areas of business, retail, finance, and marketing.
                        construction impact on security
        Question. I understand that the retail store is changing locations
    in the Jefferson Building due to new security initiatives. Will the new
    location be more visible to visitors to the Library of Congress? What
    impact, if any, has the construction related to the new security
    initiatives in the Jefferson Building had on the retail store?
        Answer. The retail store is scheduled to move from its current
    location to one directly across from where it is now. The current move
    date is targeted for between mid-January and the end of February 2005,
    in order to minimize the impact of sales during the store's busy
    holiday season, late October through December. Its new location will be
    equally visible to visitors.
        We do not expect the new security initiatives to have a negative
    impact on the retail shop. In fact, in its new location, it will be
    immediately accessible to visitors as they exit the Jefferson Building,
    which should be an advantage for sales purposes.
                                  police force
        Question. Dr. Billington, I notice you are requesting $3.825
    million and 45 FTEs for the Library of Congress' Police force. Given
    that there are relatively concrete plans in place to merge the
    Library's Police force with the Capitol Police, are you coordinating
    your plans with the Capitol Police Board to ensure a proper skills mix
    in the merged police force?
        Answer. The Library did not coordinate its fiscal year 2005
    staffing request with the Capitol Police Board, but the request is
    consistent with the Library's multi-year fiscal year 2004 request that
    was reviewed by the United States Capitol Police (USCP). The Library's
    fiscal year 2005 staffing request, which reflects year two of a three-
    year staffing request of 100 Library Police Officers, is consistent
    with the USCP minimum staffing standards.
                                 human capital
        Question. Dr. Billington, in your statement you indicate that the
    Library will be seeking broad-based human capital tools and
    flexibilities to enhance recruitment and retention activities. What new
    authorities will the Library be requesting? Are you working with the
    authorizing committees?
        Answer. The Library seeks to exercise authorities that Congress has
    granted throughout the federal government, and to do so without seeking
    executive branch approval. For example, consistent with that already
    granted to both the executive and judicial branches, we will request
    authority to offer early outs and buyouts to Library employees. We will
    also be seeking authorities that will ease significant competitive
    disadvantages the Library would otherwise experience in recruitment and
    retention of senior managers, and skilled professionals, who would be
    better compensated or experience better leave, bonuses or training
    opportunities in the executive branch.
        As Dr. Billington testified in his appearance before this
    subcommittee, as well as the Joint Committee on the Library, we will be
    sending our legislative request to the Library's House and Senate
    authorizing committees.
                         open world leadership program
        Question. I understand that the United States recently hosted the
    first Open World Leadership delegation from Lithuania. How was the
    expansion received in Lithuania? When will other delegations from
    Lithuania be arriving?
        Answer. The expansion of the Open World Program to Lithuania was
    received with great enthusiasm in Lithuania. U.S. Ambassador to
    Lithuania Stephen Mull and his colleagues at the U.S. Embassy were
    extremely supportive of the idea from the start, and planning this
    pilot would not have been possible without their assistance. A number
    of Lithuanian and American organizations nominated strong candidates
    under the theme ``civil society.'' The first delegation traveled to the
    United States in February 2004 to examine topics such as business,
    community development, media, NGO development, and youth initiatives.
    Ambassador Mull spoke at their pre-departure orientation in Vilnius,
    and upon arrival in Washington D.C. the delegation was greeted by
    Ambassador Vygaudas Usackas Lithuanian Ambassador to the United States.
    Initial feedback from this delegation is very positive, the trip gave
    the Lithuanian participants the opportunity to build long-lasting
    professional partnerships and friendships with their American
    counterparts. The Open World Leadership Center plans to host its next
    delegation of Lithuanian leaders in the fall of 2004.
        Question. How is the Open World program working in Russia and other
    former Soviet satellites? Do you believe it is workable in the rest of
    the former eastern bloc and elsewhere?
        Answer. The Open World Program has made a considerable contribution
    to bettering United States-Russian relations as well as to the
    development of civil society and democracy in Russia. Since the
    program's inception in 1999, Open World has brought over 7,500 Russian
    leaders to the United States, allowing them to experience first-hand
    American style democracy and free enterprise. Now, these Russian
    leaders comprise an active Open World alumni network, a network that is
    working together for positive change in Russia.
        In 2003, the Open World Program was expanded to Lithuania, Ukraine,
    and Uzbekistan. In total, 148 participants were hosted in the United
    States from the three countries under the theme ``civil society.''
    While each program was adapted to meet the specific needs of the
    country, these pilot exchanges prove that the Open World Program model
    is applicable and useful to countries around the world. Open World
    participants returned to their home countries with new contacts and
    fresh ideas and inspiration. In Uzbekistan, for example, Open World
    alumni are putting their Open World experience to work to better their
    communities by writing articles in the local press, establishing Rotary
    clubs, drafting proposals for developing child and maternity health
    care services, and planning new programs for children with
    disabilities.
        The pilot exchanges demonstrate that leaders and activists from a
    variety of countries can benefit greatly from meeting and sharing ideas
    with their American counterparts. In addition, the Open World Program
    has contributed significantly to furthering bilateral relations between
    the United States and other countries.
                     crs science and technology capacities
        Question. Mr. Mulhollan, what distinguishes the work done by the
    Congressional Research Service in providing analysis of science and
    technology issues for the Congress from those which were performed by
    the OTA, and are now conducted by the General Accounting Office, the
    Congressional Budget Office, the National Academy of Sciences, or other
    sources?
        Answer. Each of the entities that you mention performs different
    activities serving different purposes. The sum total of the work being
    conducted by all is complementary in that each organization brings a
    different perspective or different scope of analysis to the same
    problem.
        The Office of Technology Assessment (OTA) conducted technology
    assessments--a recognized and structured methodology that is very
    distinct from legislative and public policy support. These assessments
    addressed the multiple positive and negative impacts of technology on
    society and offered policy options.
        OTA studies were performed at the request of any congressional
    committee Chairman. The Chairman may have requested work on behalf of a
    Ranking Minority Member or on behalf of a majority of committee
    Members. The OTA Board could also request assessments as could the OTA
    Director. In practice, most assessments were requested by the Chairman
    and the Ranking Minority Member of a Committee.
        OTA assessments, which usually took over a year to complete, relied
    heavily upon groups of external experts and involved extensive external
    review, monitored by internal staff. The contracts issued to obtain
    information or to write parts of the reports could cost well over
    $100,000 each--with the total costs of each study reported to range
    from $500,000 to nearly $1 million each.
        OTA's enabling legislation permitted its reports to be made
    available to the public and its work typically was not prepared on a
    confidential basis.
        The General Accounting Office's (GAO) current technology
    assessments are being conducted on a pilot basis, pursuant to law and
    report language originating in Legislative Branch appropriations.
        To date, GAO has worked on three assessments--each of which has
    taken about a year to complete and has cost in the hundreds of
    thousands of dollars.
        While GAO reports normally make recommendations, its assessment
    reports seem to offer policy options, together with a discussion of
    legislative implications.
        The Congressional Budget Office (CBO) provides budgetary analysis
    on a wide range of issues related to science and technology, ranging
    from health policy to high-technology industries.
        The National Academy of Science (NAS) conducts studies which are
    oriented to resolving technical issues or policy issues.
        Most of the NAS science and technology studies are not mandated by
    Congress--even those which are requested by Congress, via statutory or
    report language, are contracted for by federal executive branch
    agencies. Seven such studies were mandated in public laws and completed
    for the 107th Congress.
        The NAS studies usually cost several $100,000 and take between one
    and two years to complete.
        NAS retains control over the scope of these studies. The NAS
    typically convenes panels of scientific and technical experts to write
    reports, which undergo extensive Academy review prior to transmittal to
    the agency requestor.
        NAS reports typically contain recommendations and advice and are
    not done on a confidential basis.
        Extensive use is made of the expertise provided by the NAS and
    their staff, via contracts. The topics of assessments are typically
    suggested by a few interested Members of Congress.
        The Congressional Research Service (CRS) undertakes analyses for
    both committees and Member offices in scientific and technological
    areas to: (1) assess the overall policy context on specific broad-scale
    legislative issues; (2) assess tradeoffs and alternatives; (3) evaluate
    proposals with heavy technical components; (4) help Congress to
    understand technical and scientific background and developments; and
    (5) provide program and institutional memory.
        Because of the diverse and open-ended needs of Committees and
    Members, the Service must work carefully to ensure that the appropriate
    research capacity is available to the Congress when it needs it.
        Some CRS analyses take several months to over a year to complete.
    The agency's specialization, however, is on integrative policy analysis
    that is legislatively oriented, client-focused, confidential, and
    decision-oriented in nature.
        Science and technology support includes personal, confidential
    consultations, briefings, seminars, workshops, a variety of programs
    for Members of Congress and their staff, technical analytical memos,
    and background reports that assess oversight and legislative issues
    relating to technical subjects.
        For instance, CRS staff have written analytical reports on such
    subjects as management and technical issues relating to the National
    Ignition Facility; vaccine policy issues for the 108th Congress;
    technical, trade, and policy issues for space launch vehicles; digital
    television; and bioterrorism policy issues posed by ricin and
    monkeypox, among many others.
        Several projects involving science and technology in the aging area
    are under way including Medicare assessment of molecular technologies
    and interventions for coverage; biomedical issues in diagnosis and
    treatment of Alzheimers disease; chronic illnesses among older people
    and implications for health care programs; coverage of genetic testing
    by private payers; shifting of risk and responsibilities in an aging
    society; bioethical issues at the end of life; and factors driving
    health care costs; among others.
        CRS has also developed more formal, comprehensive, and systematic
    assessments of technical and/or scientific issues
        These assessments often address broad questions requiring
    foresight, analysis, and synthesis.
        Examples of these in-depth studies include: children's
    environmental health; various global climate change studies; invasive
    species issues; ecosystems management; health benefits of air pollution
    control; electricity restructuring; external costs of oil used in
    transportation; chemical and biological agents and pathogens; and
    various studies on acid rain issues.
        Such in-depth studies take several forms: some--including the ones
    on children's environmental health, the health benefits of air
    pollution control, and ecosystems management--have been implemented
    through national symposia. Some in-depth studies have been undertaken
    with internal resources, but because of their scope and the effort
    required, others have been conducted under contract or through
    foundation grants typically in the range of $20,000 to $100,000.
        CRS continues to monitor its science and technology requests and
    workload through close work with committee staff, discussions with
    nationally recognized scientists, and analysis of scientific
    developments. These actions help CRS anticipate issues as well as
    signal future needs for resources and technical capabilities. For
    example, concerns about terrorism in the 1990s led CRS to begin, before
    September 11, 2001, an assessment of chemical and biological agents and
    pathogens--a study that proved useful during the Homeland Security
    debates of 2002 and 2003.
                       crs one-time financial adjustment
        Question. Mr. Mulhollan, can you explain the $2.7 million ``one-
    time financial adjustment'' in your budget request?
        Answer. CRS is seeking a one-time budgetary adjustment of $2.7
    million to sustain a total capacity of 729 FTEs. Without the additional
    funding, we estimate that the current budget base will afford the
    Service approximately 704 FTEs in fiscal year 2005 and beyond--25 FTEs
    short of its current ceiling. Any reduction from the current level of
    729 FTEs will result in a diminution in the Service's ability to meet
    the needs of the Congress.
        The basis for the one-time cost adjustment in fiscal year 2005 is
    the confluence of two dynamic influences:
        A change in the work force composition is the most significant
    factor. During the past ten years, the total size of CRS has decreased
    from 763 FTEs to 729 FTEs. Within these shrinking resources, CRS has
    consistently produced ``more with less'' and demonstrated increased
    productivity in responding to congressional needs. Economies that were
    previously realized from technology and contractual assistance are no
    longer possible. Assisting the Congress as it addresses increasingly
    dynamic and complicated issues requires a cadre of highly skilled,
    knowledgeable, and motivated workers--a work force that is increasingly
    more expensive to sustain.
        The second influence is related to the changing proportion of staff
    in the two federal retirement systems. CRS is behind the CSRS-to-FERS
    transition curve when compared to the rest of the federal sector. The
    CRS workforce has historically remained with the Service for the
    duration of their career--and often beyond their retirement-eligibility
    dates. Recent experience confirms that: (1) the majority of CRS
    retirements/separations are CSRS staff, and (2) the majority of CRS
    hires are from the private sector/school--eligible only to participate
    in the FERS. The employer-paid benefit rate for a FERS employee is
    nearly double that of CSRS employee making the same base salary. For
    fiscal year 2003, the benefits rate for a FERS employee was just over
    27 percent of his/her salary versus 13.5 percent benefit rate for a
    CSRS employee making the same basic pay.
        Without the one-time funding adjustment, CRS services to the
    Congress would be reduced by about 206 hours a year in each of over 150
    major policy areas in which the Congress can be expected to be actively
    engaged--between 5 and 6 weeks of lost capacity per major policy area.
    Across the Service as a whole, this reduction would equate to a loss of
    about 365 productive hours per week that would not be available to
    provide critical research and analytical support for the Congress.

                              SUBCOMMITTEE RECESS

        Senator Campbell. This subcommittee is recessed.
        [Whereupon, at 11:39 a.m., Thursday, March 11, the
    subcommittee was recessed, to reconvene subject to the call of
    the Chair.]

             LEGISLATIVE BRANCH APPROPRIATIONS FOR FISCAL YEAR 2005

                                  ----------

                           WEDNESDAY, MARCH 31, 2004

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 2 p.m., in room SD-138, Dirksen
    Senate Office Building, Hon. Ben Nighthorse Campbell (chairman)
    presiding.
        Present: Senators Campbell, Stevens, and Durbin.

                                  U.S. SENATE

                 Office of the Sergeant at Arms and Doorkeeper

    STATEMENT OF HON. WILLIAM H. PICKLE, SERGEANT AT ARMS
    ACCOMPANIED BY:
            KEITH KENNEDY, DEPUTY SERGEANT AT ARMS
            CHRIS DEY, CHIEF FINANCIAL OFFICER

               OPENING STATEMENT OF HON. BEN NIGHTHORSE CAMPBELL

        Senator Campbell. The subcommittee will come to order. We
    meet this afternoon to take testimony from Senate Sergeant at
    Arms Bill Pickle, and the Capitol Police Board, currently
    chaired by House Sergeant at Arms Bill Livingood and the Chief
    of Police Terrance Gainer.
        We will first hear from the Sergeant at Arms. Mr. Pickle is
    accompanied by the Deputy Sergeant at Arms, Keith Kennedy, and
    his Chief Financial Officer, Chris Dey, along with a team of
    others. We welcome you here today.
        The Sergeant at Arms' budget request totals $187 million, a
    3 percent increase over last year. This modest overall increase
    reflects the final year of funding for several major projects
    in fiscal year 2004, such as the recording studio project and
    the digital technology migration project. Your salary budget,
    as I understand it, would increase about 10 percent over fiscal
    year 2004.
        Following the Sergeant at Arms, we will take testimony on
    the Capitol Police budget. The Capitol Police request totals
    $291.6 million and total of 2,361 staff, which is a large
    increase, 33 percent over the fiscal year 2004 appropriation.
    That one will be a little tougher to deal with.
        In addition to the Capitol Police's own appropriation, $40
    million is included in the Architect's budget for the Capitol
    Police buildings and grounds, including a new firing range and
    an off-site delivery facility.
        We will need to make some tough choices this year, as all
    of us know, but I look forward to hearing your testimony. I
    might tell you that I did read your testimony so you do not
    need to read it again to me. I can read most of the words, and
    if you will abbreviate that would be fine with me. I'd like to
    turn it to a ranking member, Senator Durbin.

                           SENATOR DURBIN'S STATEMENT

        Senator Durbin. Thank you very much, Senator Campbell. I
    ask that my entire statement be made part of the record.
        Senator Campbell. We will put it in the record.
        Senator Durbin. And I'd like to commend Mr. Pickle; he did
    an excellent job with a very, very difficult assignment on the
    computer theft which we experienced in the Senate Judiciary
    Committee. I thought you demonstrated professionalism, non-
    partisanship, just what we expect from you.
        Mr. Pickle. Thank you.
        Senator Durbin. I commend you for that and all of those who
    worked with you. It was an exceptional effort with a very, very
    difficult assignment. I'll be asking a few questions about that
    when I get the opportunity.

                               PREPARED STATEMENT

        Chief Gainer, good to see you again, along with the Capitol
    Police. And thank you and all of the men and women who serve us
    so well, put their lives on the line every day for us here at
    the Capitol.
        Chief Gainer. Thank you, Mr. Chairman.
        [The statement follows:]

                Prepared Statement of Senator Richard J. Durbin

        Mr. Chairman, thank you for scheduling today's budget
    oversight hearing on the Senate Sergeant at Arms and the U.S.
    Capitol Police Board.
        First of all, I want to thank our witnesses, Mr. Pickle,
    Mr. Livingood, and Chief Gainer for joining us today to review
    your fiscal year 2005 budget requests.
        Mr. Pickle, last November when I discovered that some
    documents stored on my Judiciary Committee staff's computers
    were taken from them and published in the Wall Street Journal,
    I asked you to begin a Sergeant at Arms investigation into the
    potential security breach. You did so almost immediately. Your
    staff--including Capitol Police--worked around the clock to
    secure the committee's computer servers to preserve the
    evidence and interviewed dozens of staff.
        I want to commend you for the professional and expeditious
    way that you have handled the investigation, and your
    willingness, as demonstrated in the report, to follow the facts
    wherever they led you.
        However, during your investigation, you came to realize
    that all of the Senate committees' systems were set up in
    essentially the same way, with similar vulnerabilities in
    place. I hope that very aggressive steps are being taken to
    assure that this does not happen again.
        On another note Mr. Pickle, I had the opportunity to meet
    with Greg Hanson of your staff last week to discuss the
    technology available to us here in the Senate. It was very
    informative and I appreciated his updating me on this issue. As
    you know, I'm concerned that we are behind the House when it
    comes to technology. With the increased use of the internet,
    our constituents are able to get in touch with us much more
    quickly and easily. In my office, we receive close to a million
    emails a year. We need to be able to come up with a system that
    allows us to respond to this volume of email in a timely
    matter.
        In this regard, I noticed in your fiscal year 2005 request
    that you are asking for $10.3 million for three-year funding
    for purchase of computer equipment. I'd like to hear a little
    more about that.
        I hope you will address the current status of the perimeter
    security upgrades. I'm interested to know if this project is on
    schedule and on budget.
        I'd also like to hear about the status of the proposed Mail
    Processing Facility/Warehouse and whether a site has been
    selected to house this facility.
        I hope you will talk a little bit about the security
    upgrades for our state offices and when we can expect to see
    these upgrades occur.
        Overall your request of $186.6 million, or 3.1 percent,
    seems quite reasonable. We all know how difficult this year is
    going to be in terms of funding.
        I read in your testimony that there are plans in place to
    distribute emergency supply kits to all Senate offices. I hope
    you will talk a little about the contents of these kits and
    when our offices will be receiving them.
        Chief Gainer, welcome. It is good to see you again. I see
    that your fiscal year 2005 budget request is $291.6 million, an
    increase of 33 percent. I'm glad that you have provided us with
    a detailed prioritization of your request. I know that this
    will come in handy a little later on when we start to make some
    decisions with regard to funding.
        There have been several organizational changes made at the
    Capitol Police since our last hearing. I hope you will describe
    for the subcommittee the changes you have made, why you have
    made them and how they relate to particular goals or objectives
    in your strategic plan.
        I noted in your statement that in January your department
    started a Diversity Training Program. I hope you will tell us
    more about this training and when you expect it to be complete.
        I have noticed on many occasions that the lines to get into
    the Dirksen and Hart Buildings are quite lengthy. It seems
    there should be a better way to get both staff and visitors
    through security and into the buildings without them having to
    wait in such long lines.
        I hope you will update us on the progress of procuring an
    off-site delivery facility. I understand that you might co-
    locate this facility with the Sergeant-at-Arms' Mail Processing
    Facility.
        I understand that the Capitol Police and FLETC are working
    together on a solution that would allow the Capitol Police to
    have adequate use of the firing range in Cheltenham, Maryland,
    thus eliminating the need to procure one of your own. I hope
    you will elaborate on that for the subcommittee.
        I am interested in your thoughts on the idea of a security
    fence around the Capitol and office buildings.
        Thank you Mr. Chairman.

        Senator Campbell. Mr. Pickle, why don't you go ahead.

                     SUMMARY STATEMENT OF WILLIAM H. PICKLE

        Mr. Pickle. Thank you, Mr. Chairman, and thank you for
    those kind words, Senator. We appreciate that.
        Mr. Chairman, actually, some of your remarks stole my
    thunder here. I had some informal remarks to make but I'm going
    to cut right through most of them. I'd like to submit a formal
    statement for the record.
        Senator Campbell. It will be included in the record.
        Mr. Pickle. And what I would like to affirm is we are
    asking for about a 3.1 percent increase in our budget. It is
    modest but it is important that we get this funding to complete
    some of the many programs and security enhancements that we
    have begun with the approval and the support of this committee
    over the previous years. As you mentioned, some of them are
    very important to us. The security upgrades for Members'
    offices, the alternate computing facility, the computer network
    security and in particular the secure mail and package
    processing protocols in our warehouse are very important to us
    this year for all the obvious reasons.
        Last year, when I testified before this committee, I made
    the statement that I was very honored and pleased to have been
    elected as the 37th Senate Sergeant at Arms. I also discussed
    with the committee that my goals, and indeed the entire
    Sergeant at Arms' Office, our goals are to provide the very
    best customer service we could here to the Senate, as well as
    the very best security and emergency preparedness. And what we
    hoped to do last year was to meld and use or leverage
    technology to do even a better job and be as efficient and as
    effective as we possibly could. Well, this year our goals
    remain the same; we've come a long way but we have a lot more
    to do. Security continues to be paramount, as it has since the
    anthrax scare of 2001.
        We have had a very challenging year, as Senator Durbin
    said; we had something occur that is rather unprecedented for
    the Sergeant at Arms Office to participate in and that was the
    matter of improper access to the Judiciary Committee computers.
    It was unprecedented in the sense that we are not staffed to
    conduct such an investigation. While the Sergeant at Arms is
    the chief law enforcement officer of the Senate, he really does
    not have the operational personnel or resources to do this. But
    thankfully we had the Capitol Police; we also went to the
    United States Secret Service and with the support of this
    committee, which was involved with us when we talked about the
    funding that would be needed to do the work, we completed the
    investigation. And I too am very proud of our staff. I think
    what it shows is that we are a very diverse organization, we
    have some very talented people, and I'm just so proud of the
    work that they did in this area.
        The other challenge we had this year was the ricin attack
    on February 3, 2004. Now, this was the second attack that's
    occurred here in the past 3 years. The anthrax scare of 2001
    shut down a Senate building for several months. Fortunately,
    this time, because of the response of the Capitol Police and
    the Sergeant at Arms Office of Emergency Preparedness, along
    with our colleagues and the other entities here, we were able
    to get the Senate office buildings back up and running within 5
    days. Now, as much as I'd like to take some credit for that, I
    think credit really belongs to my predecessor, Al Lenhardt, the
    former Sergeant at Arms. Al was confronted shortly after he
    arrived here with the anthrax attack and because of his efforts
    we have in place a very sound architecture and many sound
    security protocols that allowed us to be very successful in
    dealing with this ricin attack. I think the fact that it was
    only 5 days speaks well for the preparations of this body. It
    also speaks well for this committee which has supported us as
    well as the Rules Committee which was there to help out.
        I know I'm dwelling only on security and technology, but
    finally I want to close by making just a comment. We have over
    800 people here in the Sergeant at Arms Office, and when you
    look at the Sergeant at Arms Office, my analogy is the Senate
    is like a small city or mid-size corporation. We have about
    8,000 people who work here on the Senate side, and on any given
    day we have many thousands more who are tourists, guests,
    official visitors, so we have all the components of a city
    here. I think we have several dozen different little businesses
    within our office. The people who do the work and who make this
    place run, day in and day out, and who are invisible to all of
    us are the ones who really need to be thanked for their hard
    efforts this year. And I'm talking about people such as our
    facilities maintenance people who keep the Capitol clean, and
    it's always spotless in the morning when you come in; our
    furniture makers who make sure all the furniture and woodwork
    we have is just topnotch, and our communications people, who
    comprise most of our staff. These people do the job day in and
    day out, and I'm just so proud of them.

                               PREPARED STATEMENT

        With that, Mr. Chairman, I'm going to dispense with
    anything else. And I'll just be happy to take questions. Thank
    you.
        [The statement follows:]
                    Prepared Statement of William H. Pickle
                                  introduction
        Mr. Chairman and Members of the Committee, thank you for inviting
    me to testify before the Committee on Appropriations. I am pleased to
    come before you today to report on the progress the Office of the
    Sergeant at Arms (SAA) has made over the past year and our plans to
    enhance the capabilities of the Senate in the coming year.
        The SAA respectfully requests for fiscal year 2005 a total budget
    of $186,701,000, which is an increase of $5,669,000 or 3.1 percent over
    the fiscal year 2004 budget. This increase will enable the office to
    maintain the significant improvements and level of service we provided
    the Senate community over the past year.
        This fiscal year 2005 budget request will fund the completion and
    support of several initiatives that are already in progress, including
    security upgrades for Members' state offices, the Alternate Computing
    Facility (ACF), enhanced communication services, secure mail and
    package processing protocols, and computer network security.
        Last year I testified before this Committee and identified two
    priorities: (1) ensuring the United States Senate is as secure as
    possible and prepared for any emergency; and (2) accomplishing this
    goal through outstanding service and support, including the enhanced
    use of technology. The work of this office over the past year has been
    guided by these priorities.
        In addition to the projects the SAA had planned to undertake and
    invest in this past year, we faced unique challenges requiring that
    resources be used to meet immediate, unanticipated needs. The ricin
    incident and the Judiciary Committee's request to conduct an internal
    investigation are two examples of such challenges. This testimony will
    detail later the work of the SAA staff in responding to the ricin
    incident.
        The Committee on the Judiciary's request for the Sergeant at Arms
    to conduct an internal investigation into whether there was
    unauthorized access to the Committee's computer system was
    unprecedented. We were able to respond quickly to this request and to
    assemble an investigative team that included trained investigators
    detailed from the U.S. Secret Service and outside forensic experts. The
    sensitive nature of this matter required almost full-time involvement
    of several of our senior managers. The investigation and forensic
    analysis took almost four months and required a significant amount of
    personnel and financial resources.
        In our response to the ricin incident and the investigation for the
    Judiciary Committee, we met the needs of the Senate and accomplished
    the tasks set before us. In the past year we have also moved forward in
    a number of crucial areas.
        An outstanding senior management team led the efforts of the SAA's
    dedicated staff over the past year. This team consists of Deputy
    Sergeant at Arms J. Keith Kennedy, Assistant Sergeant at Arms for
    Security and Emergency Preparedness Chuck Kaylor, Assistant Sergeant at
    Arms for Police Operations Al Concordia, Assistant Sergeant at Arms for
    Operations and Administrative Assistant Rick Edwards, General Counsel
    Lynne Halbrooks, and Assistant Sergeant at Arms and Chief Information
    Officer J. Greg Hanson. This team has worked to develop and implement a
    comprehensive approach to Senate projects. The many accomplishments set
    forth in this testimony would not have been possible without their
    leadership and commitment.
        This testimony highlights some of our achievements over the past
    year, and demonstrates how we plan to build on our accomplishments and
    to protect the Senate's interests. Specifically, this testimony
    identifies (1) the security measures we have implemented and are
    working toward; (2) initiatives designed to keep the Senate at the
    leading edge of technology; and, (3) highlights of the critical
    operational support we offer the Senate.
             a comprehensive approach to security and preparedness
        I am pleased to report that in the areas of security and emergency
    preparedness we expanded on the significant accomplishments of my
    predecessors, and particularly on the strong foundation that Sergeant
    at Arms Alfonso E. Lenhardt implemented to protect the Capitol and
    Senate Office Buildings after the anthrax attack in 2001.
        The Senate now has in place an overall security strategy that
    establishes a layered defense based upon our understanding of threats
    to the Capitol and its vulnerabilities. Over the past year, this
    strategy led to updated security plans, created prevention and
    protection programs, and created life-safety, emergency preparedness,
    and information security programs. The strategy also led to training to
    educate staff and exercises to rehearse and evaluate our plans.
        The SAA has relied on the strong support of the Secretary of the
    Senate, this Committee, the Committee on Rules and Administration, and
    other Committees and Members to advance the Senate's security and
    emergency preparedness. A comprehensive approach to these critical
    subjects has required the partnership and cooperation of Senate
    offices, the U.S. Capitol Police, the Attending Physician, other
    legislative branch offices, as well as federal and state agencies.
        Together, we have made significant progress on our security and
    emergency preparedness.
        Despite the substantial advances in security and emergency
    preparedness since September 2001, and particularly this past year, we
    cannot become complacent. The Capitol and Congress remain targets to
    those wishing to cause our country harm, and the means to cause that
    harm are available, varied, and growing in sophistication. We need to
    be vigilant, and we need to continue our comprehensive, forward-looking
    security and emergency preparedness programs.
        This testimony outlines the SAA's security, emergency preparedness,
    and continuity of operations and government efforts. In addition to the
    initiatives set forth below, there are other steps being taken to
    secure Congress and the Senate community that are not appropriate to
    address in an open forum.
    Vulnerabilities and Threat Assessments
        Understanding the threats the Senate faces is essential to
    establishing appropriate and cost-effective security programs. We work
    with the U.S. Capitol Police on an aggressive approach to security that
    recommends and supports ongoing security projects. We are participating
    in several studies that address vulnerabilities around the Capitol
    relating to land-based and airborne threats, as well as chemical,
    biological, and radiological threats. The SAA also works with the U.S.
    Capitol Police to provide analysis of emerging global threats, current
    intelligence information, analysis of vulnerabilities, and available
    countermeasures. As a result of this work, policies are being developed
    in conjunction with the U.S. Capitol Police that provide high levels of
    protection on Capitol Hill for Members, staff, and visitors. These
    coordinated efforts with respect to vulnerability and threat assessment
    include:
        Vulnerability Assessments.--Since 1998, the U.S. Capitol Police
    Board has conducted seven formal vulnerability assessments of the
    Capitol complex. These assessments serve as the basis for many of our
    protective measures. The assessments complement our work with the
    National Capital Region intelligence sharing initiatives for a complete
    view of the threats to the Capitol.
        Command Center.--Over the past year, the U.S. Capitol Police have
    established a state-of-the-art command center and campus-wide security
    network that significantly improve their situational awareness. This
    provides information in a number of areas, which enables the police to
    better understand an event and better manage the necessary response.
    SAA staff work closely with the Capitol Police at the Command Center
    during emergencies.
        Threat Intelligence Sharing.--The U.S. Capitol Police Board has
    approved the U.S. Capitol Police participation in the Targeted Violence
    Information Sharing System (TAVISS), a pilot program for sharing threat
    intelligence information. Created by the U.S. Secret Service to
    facilitate the sharing of threat information with twenty-seven
    agencies, this program will provide timely information about threats
    against Members of Congress and U.S. Government officials. Research has
    shown that people who attack public officials often switch targets, so
    subjects who come to the attention of one agency may be known to other
    agencies.
        To provide more intelligence information, the U.S. Capitol Police
    have officers assigned to critical National Capital Region intelligence
    collection and analysis and command centers. The U.S. Capitol Police
    also have a small but highly professional intelligence staff that
    collaborate with their counterparts, and participate in the national
    forums that provide the situational awareness we need.
        Air Security.--The U.S. Capitol Police are integrated fully in
    interagency air security coordination planning for the National Capital
    Region and the National Capital Region Coordination Center. This
    planning integrates multi-agency assets into a protective air security
    system that encompasses the Capitol. The National Capital Region Air
    Security Plan focuses on countering terrorist threats from the air. The
    coordination uses multi-agency capabilities that involve intelligence,
    law enforcement, and Department of Defense assets. Early warning and
    situational awareness has:
      --Enhanced detection of potential air threats.
      --Improved dissemination of inter-agency intelligence information.
      --Streamlined coordination of multi-agency assets to achieve command
            and control.
      --Differentiated navigational errors and civil violations from
            hostile intent.
    The threat environment is always changing, but we have the people and
    organizations in place that understand the needs of the Senate and can
    provide the information necessary to ensure the continued security of
    Members, staff, and visitors.
    Protecting the Senate's Physical Assets
        The first priority of the SAA's security strategy is to deter or
    prevent an incident. Our expanding protective measures program includes
    physical security measures, electronic systems, and law enforcement
    activities. It continues to improve the Senate's ability to prevent
    incidents. Many of the details of this program are confidential and
    sensitive. However, several of the significant protective measures that
    have been implemented are set forth below.
        Enhanced Perimeter Security Plan.--The first phase of the perimeter
    security plan, proposed in 1998, was completed in 2002. The Enhanced
    Perimeter Security Plan, developed after September 2001, is now being
    implemented. The Enhanced Perimeter Security Plan features pop-up
    barriers and bollards, hardened police kiosks, improved security at
    vehicle access checkpoints, increased U.S. Capitol Police roving
    patrols, and other enhancements. It also includes improved screening
    procedures for visitors entering the Senate Office Buildings and the
    Capitol. The Capitol Police Board is working to establish more
    comprehensive and visible identification protocols to manage visitors
    better, particularly in the Capitol.
        Capitol Visitor Center.--The Capitol Visitor Center remains an
    important focus of our security program. In 2000, almost three million
    people visited the Capitol and during peak season over 18,000 people
    visited the Capitol each day. In addition, delivery vehicles move tons
    of equipment, food, and other material into and out of the Capitol
    every day. These deliveries are essential to Congressional operations,
    but they also create risks to the Capitol complex. The Capitol Visitor
    Center will improve our ability to screen everything and everyone
    coming into the Capitol, and will enhance the public's access and
    experience while visiting the Capitol.
        The Visitor Center will include a remote delivery-vehicle screening
    facility for all deliveries to the Capitol. The facility will make it
    easier to deliver goods to the Capitol and safer to accept those goods.
    The design incorporates blast-resistant features and systems that will
    minimize the risk of airborne hazards within the Capitol Visitor Center
    and the Capitol.
        Once the Visitor Center is completed, the public will have just as
    much access to the Capitol, only through fewer access points. There
    will be enhanced screening and control of everyone and everything that
    enters the building. Screening will take place in the Visitor Center
    instead of near the Capitol doors, and, because of the design of the
    access points, the screening will make it easier to isolate and remove
    individuals who pose a security threat.
        Parking and Traffic Management.--Construction of the Capitol
    Visitor Center, the implementation of the Perimeter Security Plan, and
    other construction activities have created parking and traffic
    management challenges.
        To address the parking challenges, we made use of our existing
    resources and created 359 parking spaces proximate to the Capitol and
    Senate Office Buildings. This saved lease expenses of $1 million
    annually, or approximately $2 million to date. The parking is secure,
    near the Capitol, and convenient for Senators and staff.
        Because the traffic that flows past the Senate Office Buildings and
    the Capitol directly affects the security of the Senate, the SAA staff
    worked with the Architect of the Capitol, the U.S. Capitol Police, and
    the District of Columbia's Department of Transportation to ensure the
    safety of Members, staff and visitors to the Senate and simultaneously
    minimize the traffic impact of construction projects. Much of the
    construction is limited to nights, weekends, and off-peak hours to
    reduce the impact on traffic. The direction of one-way traffic is
    shifted to accommodate commuting in the morning and evenings. U.S.
    Capitol Police officers are stationed at major intersections to
    maintain traffic control and pedestrian safety.
        State Office Security.--While many of the recent security efforts
    focus on Capitol Hill, Members' state offices continue to be a focus
    for the SAA. During the past year and a half, SAA staff have conducted
    comprehensive, on-site security assessments of the 430 state offices.
    Besides completing assessments of existing offices, a system has been
    implemented to assess each newly-established office.
        The assessments provide the SAA an understanding of each state
    office's security needs and enable us to make recommendations, help the
    state office prioritize its needs and, ultimately, improve security.
    Each Member's Washington, D.C., office has the results of their state
    office assessments and the SAA's recommendations. We are working with
    each office to determine how to proceed to implement appropriate
    physical security upgrades.
        This state office security project involves physical modifications
    to offices, installation of physical security systems in offices, and
    staff training. It is ongoing and multi-year, and the initial focus has
    been on state offices in commercial spaces. The Federal Protective
    Service and the Federal Marshals have been consulted regarding Members'
    offices in federal and court buildings.
    Emergency Preparedness
        To enhance the Senate's emergency preparedness, the SAA is
    addressing all aspects of preparing for, learning about, and responding
    to emergencies. Over the past year, the SAA has established
    notification systems, conducted training, and provided emergency
    response equipment and resources. SAA staff has also worked closely
    with the Architect of the Capitol and the U.S. Capitol Police to test
    and, where necessary, upgrade the alarms, emergency equipment, and
    notification systems in every Senate Office Building.
        The Senate continues to improve evacuation and assembly area
    accountability procedures by regularly conducting evacuation drills.
    The SAA has also worked with Senate offices to update the procedures
    for evacuating mobility-impaired staff and visitors. This outreach to
    our special needs community will continue next year.
        To maintain the focus on life-safety and emergency procedures, the
    SAA meets weekly with the U.S. Capitol Police, the Superintendent of
    the Senate, and the Capitol Fire Marshal to review life-safety programs
    and issues. This has resulted in better emergency equipment access to
    the Capitol Plaza and closer involvement by the Washington, D.C., Fire
    Department during evacuation drills. The SAA also is engaged with the
    National Capital Region's emergency management experts through a number
    of high-level interagency and intergovernmental committees and work
    groups that expand the National Capital Region's preparedness.
        Highlights of the SAA's efforts to better prepare the Senate
    community for an emergency include:
        Alert and Notification Systems.--In the past two years, the Senate
    provided BlackBerry devices and updated electronic pagers to Senators
    and key staff. The number of BlackBerry devices in use at the Senate
    continues to expand. Every office has a Senate ``Group Alert''
    telephone system and approximately 1,000 telephones throughout the
    Senate are connected to the System.
        Last year, wireless annunciators were added as a component of the
    emergency notification system. These wireless devices have been placed
    in every office. The U.S. Capitol Police use the annunciators to
    provide audible alerts of an incident, instructions on appropriate
    action, and additional information as an event unfolds. Annunciators
    supplement the Group Alert telephone system, the building fire alarms,
    the public address system, and other emergency notification devices.
        The SAA is in the process of testing a newly installed, more
    capable automatic voice and text notification system that supplements
    the existing U.S. Capitol Police Dialogic system. Once this system is
    fully operational, it will be able to automatically call and send text
    alerts to predesignated individuals more quickly than in the past.
        Training.--Over the past year, the SAA created and delivered
    training courses that cover a wide range of emergency preparedness
    issues. There have been 172 training sessions providing life-safety
    information to over 5,700 individuals. This training included: in-
    office sessions tailored to the emergency preparedness needs of each
    office, new staff and intern orientations that review emergency systems
    and procedures for all new staff, monthly emergency preparedness
    updates, and off-site training on the use of fire extinguishers.
        Special topic seminars were conducted by SAA staff on evacuating
    Washington, D.C., evacuating people with disabilities, and sheltering
    in place. Training was also conducted for U.S. Capitol Police officers
    and Senate office personnel regarding evacuation procedures for
    mobility-impaired staff members. And, in coordination with the U.S.
    Capitol Police, the SAA helped train 6,770 individuals about the proper
    use of escape hoods. This training gives every participant the chance
    to don a training hood.
        Emergency Equipment.--Almost 19,000 escape hoods, which provide
    protection against airborne hazards, are deployed in Senate offices and
    at cache sites throughout the Capitol and in Senate Office Buildings.
    Last year, hoods were distributed to every office. This year, escape
    hood cache locations were established in restaurants, hallways, near
    elevators, in the Capitol, and other public areas. These cache
    locations are quickly accessible to staff and visitors. This past year
    the SAA conducted the first full inventory of all the escape hoods
    issued to offices. Over the next year, options will be evaluated for
    replacing the escape hoods in anticipation of replacing the current
    hoods at the end of their shelf life in fiscal year 2006.
        Last fall, in consultation with Senate offices, the SAA developed
    an emergency supplies kit that will be useful to offices in any
    emergency. The SAA plans to issue the kits and provide training to the
    Office Emergency Coordinators this spring.
    Continuity of Operations and Government
        This past year the SAA and the Secretary of the Senate developed
    and published the Senate Continuity of Operations and Continuity of
    Government Planning Guide that provides strategic guidance and a
    framework for developing comprehensive, integrated Senate Continuity of
    Operations and Continuity of Government plans. The SAA and Secretary of
    the Senate worked closely with all affected legislative branch agencies
    to ensure the plans, which are part of each office's emergency plan,
    are supportable and coordinated. Other initiatives the SAA has been,
    and will continue to be, involved in that are designed to meet the need
    for strong continuity of operations and continuity of government
    planning include:
        Senate Office Planning.--The SAA participates in the review and
    update of the Senate's Continuity of Operations plans each Congress.
    Most Member and Committee offices now have their own Continuity of
    Operations plans in place. They have established alternate operating
    sites, have laptops and other equipment for these sites, and have
    backed up their essential data and other records so the sites are ready
    to use. Many offices activated their plans during the ricin incident
    and are now improving those plans. The SAA will continue to help
    offices prepare, review, and update their internal plans and
    procedures.
        The SAA's Continuity of Operations planning support was extended to
    state offices this past year through a Web-based planning software
    application. The application helps Members' state offices create their
    plans, and enables Members' Administrative Managers to oversee those
    plans to ensure they fit within the office's overall office Continuity
    of Operations plan.
        Briefing Centers and Alternate Chamber.--The Senate has established
    Briefing Centers and Alternate Chamber locations for use in emergency
    circumstances. Over the past year, the SAA continued to enhance its
    ability to support these locations, as well as Member office and
    Committee operations. During this time, two Briefing Centers were
    completed. The Centers provide temporary, protected locations where the
    Senate can account for membership; where Leadership, Senate Officers,
    and the U.S. Capitol Police can communicate with Senators; and where
    communications capabilities are available to Senators. A third Briefing
    Center is nearing completion.
        Two years ago, a primary Alternate Chamber was established on
    Capitol Hill. Final modifications to that facility were made this past
    year and it is fully operational. A secondary Alternate Chamber
    location has also been selected off Capitol Hill. This facility is
    available now and final modifications are being made. Work to establish
    a second Alternate Chamber site off Capitol Hill will continue this
    upcoming year.
        Exercise of Emergency Plans.--This past year was the second full
    year of an active program that ensures that we regularly rehearse and
    evaluate all aspects of our emergency plans. The SAA's exercise program
    focuses on evaluating new facilities and capabilities as they become
    available. In the first year, the ability to activate, relocate to, and
    operate out of our primary Briefing Center and the Capitol Hill
    Alternate Chamber location was tested.
        This past year, exercises were conducted for using a second
    Briefing Center location and the off-site Alternate Chamber. These
    exercises included tabletop reviews of all aspects of the plans and
    procedures, and full exercises of the facilities. They included the
    U.S. Capitol Police Command Center and the Sergeant at Arms and
    Secretary of the Senate's Emergency Operation Center. The exercises
    also tested the transportation to each facility, support of each
    facility, and communications between the facility and the Command and
    Operation Centers. The program exercises life-safety responses as well
    as emergency operations. A similar protective measures exercise of the
    Senate Chamber was also conducted recently.
        This upcoming year, the operations of the Emergency Operations
    Center will be exercised and a tabletop exercise of the Alternate
    Computing Facility will be conducted. In addition, quarterly evacuation
    drills and monthly tests of the emergency communications systems will
    continue.
    The Ricin Incident
        The discovery of ricin in the Dirksen Senate Office Building on
    February 2, 2004, brought to test the emergency planning work done by
    the Senate in the last two years. The response was a collaborative
    effort. SAA staff worked with the U.S. Capitol Police, the Committee on
    Rules and Administration, the Office of the Secretary, the Office of
    the Attending Physician, and numerous other agencies and organizations,
    to support Senate operations even though all three Senate Office
    Buildings were closed.
        The closure of the Senate Office Buildings required the activation
    of the SAA Continuity of Operations plan to support Senate, Member, and
    Committee operations. In cooperation with the Secretary of the Senate
    and Committee for Rules and Administration, the SAA established limited
    alternate space and services for Member and Committee operations. By
    the morning of February 4, 2004, space and operating capabilities were
    available for all Member and Committee offices that needed it. Offices
    were able to borrow equipment they needed from the SAA. Information
    hotlines and backup systems worked well under the circumstances.
    Assistance was also provided to Member offices to transfer their
    telephones to other offices to ensure constituents' calls were
    answered.
        The support of the Committee on Appropriations was instrumental in
    implementing the systems and processes that helped the Senate respond
    successfully to this ricin event. Because redundant technology was
    available, the Senate offices were able to continue to conduct business
    even when they were unable to access their offices.
        The feedback we received during and after the response to the
    incident will help improve our response to future incidents. Of primary
    concern is the need to improve notification processes and procedures.
    This incident demonstrated that a solid technical infrastructure is in
    place to ensure timely notifications, but the processes and procedures
    need improvement. We will continue to work with the U.S. Capitol Police
    and the Senate community to ensure effective notification in the event
    of an emergency.
        Following the ricin incident, it was necessary to implement new
    mail processing procedures. Over two years ago, the Legislative Branch
    Mail Task Force (consisting of representatives from the scientific and
    medical communities, the United States Postal Service, security
    experts, and agencies within the legislative branch) established a mail
    processing system to treat and test all mail coming into the Congress.
    The discovery of ricin in the Majority Leader's office in February
    mandated the need for additional protective measures in our mail
    processing. Science advisors and the Legislative Branch Mail Task Force
    recommended that envelopes and packages be opened, examined, and tested
    for contaminants at an off-site location. With the approval of the
    Senate Leadership, these new mail processing protocols were quickly
    implemented.
        Overall, the response to the ricin incident is encouraging. The
    Senate Office Buildings were reopened within 5 days. The response truly
    was a team effort and demonstrated the importance of preparing for
    emergencies to ensure continuity of operations.
                             information technology
        This past year has seen significant advances in the area of
    information technology in the Senate. The addition of a Chief
    Information Officer to the SAA management team has facilitated the
    development and delivery of a technology vision, a strategy, and
    solutions to support the Senate and enhance its security.
        The Senate's information technology infrastructure is used to
    complement other security efforts. Information technology is crucial to
    security in the Senate and to the Senate's ability to accomplish its
    day-to-day activities. With a strong emphasis on providing advanced
    technology capabilities and outstanding customer support to the Senate,
    the SAA is adopting a comprehensive approach to delivering technology
    solutions and services. This approach focuses on evaluating and
    implementing effective technology to help the Senate conduct its
    business.
        The SAA is developing an information technology strategy that will
    be implemented in the coming year. The strategy will address the
    Senate's need for mobility, flexibility, and redundancy in information
    and telecommunications systems and will specifically address the
    requirements that:
      --Members and staffs need to be informed and have the ability to
            track current events in near real-time.
      --Members and staffs need to be secure to carry out their duties
            under any circumstances.
      --Members and staffs need to be able to communicate among themselves
            and with constituents and the public.
      --Members and staffs need to be able to operate and maintain
            Washington, D.C., and state offices.
      --Members and staffs must be able to collect, analyze, manipulate,
            and present information.
        The strategy will include a plan and a technology roadmap for the
    next two years. The plan and roadmap will provide guidance to the
    Senate on its technology decisions, and a framework for making those
    decisions. In conjunction with this strategy, significant work will
    continue this coming year on information technology initiatives
    relating to security, emerging technology, and customer service.
    Several of these critical initiatives are set forth below.
    Security Initiatives
        The Alternate Computing Facility (ACF).--This year, the Alternate
    Computing Facility was added as a major addition to the Senate's
    operational capability. Much of the alternate computing facility
    infrastructure is complete, including facility fit-out, network
    infrastructure, network operating center, and central computing room
    facilities. The facility will soon be ready to house backup servers for
    interested Members and Committees. A fiber optic ring is now complete
    in both directions providing fully redundant connectivity between the
    ACF and Capitol Hill. A state-of-the-art storage area network at the
    ACF receives up to 15 terabytes of data daily from the Capitol Hill
    central computing facilities. The mainframe and server hardware,
    telephone equipment, enterprise fax server equipment, and all
    associated networks are in place and are being tested. Currently,
    installation of a fully redundant set of primary domain controllers to
    support the Senate e-mail system is almost complete. The next step is
    to complete installation and testing of all the software and
    applications running on the hardware infrastructure, upgrade the power
    infrastructure, and complete plans to purchase the facility.
        Contingency Communications.--The SAA's contingency communications
    program involves a number of major multi-year projects. Last year the
    Senate's mobile recording studio became operational. Other mobile
    communications assets will be delivered over the next few months. We
    are working to complete communication systems that integrate
    communications across our emergency facilities. Combined, these
    projects provide a significant increase in the Senate's ability to
    continue to operate under any circumstance.
        Telecommunications Improvement and In-building Wireless
    Infrastructure.--To enhance security, emergency preparedness, and
    customer service, a comprehensive telecommunications improvement plan
    is being implemented. Wireless devices, including cellular telephones
    and personal digital assistants (such as BlackBerry devices), have
    become critical telecommunication infrastructure components supporting
    daily Senate operations and emergency notification activities. The in-
    building wireless initiative will provide a Senate-owned wireless
    infrastructure integrating services from all cellular telephone
    carriers, BlackBerry devices, and wireless local area networks (LANs).
    Due to this innovative approach, which will lease infrastructure
    bandwidth back to the cellular telecommunications carriers, this
    program will pay for itself in less than five years while providing
    full cellular, BlackBerry, and wireless LAN connectivity across the
    entire Senate campus. In addition to the in-building wireless
    initiative, an analysis of telecommunications requirements is being
    conducted that will lead to a complete overhaul of our voice and data
    networks and services over the next several years. The first task in
    the analysis phase of this large project is already underway.
        Deployable Communications Assets.--Mobility and flexibility are
    fundamental to successful continuity of operations and continuity of
    government planning and execution. The goal of this office is to make
    it possible for Members and their staffs to communicate and process
    data from almost anywhere at any time if they have to relocate. A
    variety of technologies and capabilities is being developed to provide
    mobility and flexibility options. Two state-of-the-art communications
    vehicles are being deployed that will allow us to establish the
    Senate's information infrastructure almost anywhere. Satellite, radio,
    and local area network and wide area network facilities currently are
    being integrated in each of these communications vehicles with full
    operational capability planned for later this year. Next year's
    Continuity of Operations and Continuity of Government exercises will
    incorporate these vehicles.
        Emergency Operations Coordination Prototype.--To support security
    and emergency operations, we are working with the U.S. Capitol Police
    to develop a prototype emergency operations coordination system that
    will enable officers to update and track individuals electronically
    during a Capitol Hill evacuation operation. This system, which features
    tablet PC technology and back-end databases with full reporting
    capability, is currently in prototype, and will be fully operational
    later this year.
        Information Technology Security: Defense-in-Depth.--During this
    past year, there has been a steep increase in cyber threats, as hostile
    entities attempt to attack our systems with viruses, worms, and denial-
    of-service attacks. The Senate's infrastructure and data are protected
    by continuously upgrading our defense-in-depth capability. The defense-
    in-depth approach includes multiple layers of defense that protect the
    Senate's information infrastructure at all levels, from the inside out.
    It includes an enterprise anti-virus program.
        We expect to extend the enterprise anti-virus program to all 12,000
    Senate desktop and laptop computers by the end of next year. To date,
    this software has been installed on 5,000 Senate computers, protecting
    them from viruses, worms, and denial-of-service attacks.
        These security efforts have paid off; the Senate has not been
    successfully intruded upon from the outside and we have seen only
    minimal effects from the most aggressive virus and worm attacks. We are
    now working with office system administrators, who are responsible for
    the security of their office local area networks, to improve the
    Senate's overall security posture and enhance our ability to defend
    against intrusions.
        Next year, as part of a comprehensive network infrastructure
    upgrade, it will be necessary to evaluate and upgrade the information
    security infrastructure in the Senate switched network by upgrading
    routers and firewalls. Increased intrusion detection systems, software
    tools, and services will complete the defense-in-depth approach to
    information infrastructure.
        Information Technology Security: Policies, Practices, Training, and
    Tools.--An effective approach to information security goes beyond
    upgrading the information security infrastructure to include evaluating
    and applying best practices and information security and assurance
    hardware and software tools, and providing information security
    training for employees. Through the Information Security Policies and
    Practices Working Group, we are working with Members' technology staffs
    and the Committee on Rules and Administration to examine and improve
    information security practices across the Senate. Because of the
    increasing number of attacks the Senate faces, the SAA is also
    evaluating and upgrading the skills of our own information security
    staff.
    Emerging Technologies Initiatives
        One major theme that has been embraced in the Senate's information
    technology strategy is to identify ways that new and emerging
    technologies can support the Senate's priorities. We are already moving
    forward on this effort by analyzing trends to discern which emerging
    technologies will be most applicable in the Senate environment. Once
    promising technologies are identified, the SAA will work with
    interested Senate offices to pilot or prototype the technologies and
    prove the concepts. Following successful pilots, the technologies can
    be rolled out Senate wide.
        New Technology and Innovation.--To elevate technology awareness,
    expose the Senate to the future of technology, and spur innovation, the
    SAA is sponsoring emerging technology events. The first Senate Emerging
    Technologies Conference, held in February 2004, brought experts from
    industry to the Senate to discuss emerging wireless technologies,
    telecommunications trends, knowledge management, and collaboration
    tools. The conference was followed by a technology fair highlighting
    low-cost applications that we could implement at the Senate in the near
    future. More emerging technology events are being planned for fiscal
    year 2005.
        Process Improvement.--The Sergeant at Arms is creating an
    organization to focus on process improvement and innovation from the
    perspective of customer service and security. This year, the
    organization will perform top-down and bottom-up analyses of
    technology-related business processes. It will look for opportunities
    to innovate and will implement ways to make the Senate's technology and
    business processes more efficient and effective. The group will
    document, analyze, and improve processes such as technology project
    management, requests for assistance, and the Senate's systems
    development life-cycle.
        Technology Infusion.--To move emerging technologies into the Senate
    environment quickly, the Office of the Sergeant at Arms is
    collaborating with Senate offices to develop prototype applications,
    consisting of subsets of target functionality. Two such prototypes
    currently under development are the Office Emergency Coordinator
    tracking system and a knowledge management prototype. The approach is
    to think big, start small, and scale quickly.
    Customer Service Initiatives
        This office is paying special attention to how well it meets the
    Senate's technology needs. This effort requires the evaluation and
    analysis of all aspects of our information technology solutions and
    technology infusion and delivery programs. A survey was conducted last
    year that measured customers' satisfaction with technology. The survey
    revealed that Members and their staffs want more and better information
    about technology programs, a faster process for infusing new
    technologies, and an emphasis on looking ``over the bow'' toward
    emerging technologies and how the Senate can take advantage of these
    technologies in the next three years.
        Customer Service, Satisfaction, and Communications.--The first step
    taken by the SAA to improve customer service, satisfaction, and
    communications was to implement an extensive customer outreach program
    that enables us to understand the Senate's requirements better. This
    program features communications through monthly information technology
    newsletters, quarterly project status reporting to Senate offices,
    participation in the Majority Leader's Information Technology Working
    Group, joint monthly project and policy meetings with the Committee on
    Rules and Administration and the Senate System Administrators
    Association leadership, and participation in a Hill-Wide Information
    Technology Group. We are also emphasizing customer service by enforcing
    stringent service-level agreements with our technology Help Desk
    contractor. This program has been extremely successful with sustained
    performance levels meeting or exceeding the service-level agreement
    (greater than 95 percent based on customer satisfaction surveys) for
    the past eight months.
        Business Applications.--Based on input and feedback from users, it
    was determined that many of the business software applications
    supporting Members and their staffs needed to be updated. The Senate
    Information Services program will be modernized to provide more
    information from various news sources in near real-time and more
    comprehensive analysis of that information. The financial management
    systems that support the Secretary of the Senate's Disbursing Office
    are also being modernized and made Web-capable. We are also exploring
    new correspondence tracking and management systems and have added to
    the list of available application offerings.
        Intelligence over the Net-Web Services.--One major technology focus
    is to move applications and processing capability to the Senate's
    Intranet. Flexible Web services technologies will allow the placement
    of many service-delivery applications to Webster so users can access
    them with a Web browser. The goal is for the Senate Intranet to evolve
    into a full capability portal providing Senate staff ``one-stop
    shopping'' for common business application functionality.
        Secure Remote Access Options.--In addition to moving applications
    to the Web, this office is aggressively exploring alternate ways for
    Senate users to gain secure remote access to Senate information
    resources. In particular, biometric capabilities are being explored to
    add to the secure networking options already provided.
        Network Upgrades and Video Teleconferencing.--To support
    flexibility, mobility, and improved customer service, we are expanding
    and upgrading the Senate's information networks. Over the next year,
    the Capitol Hill network infrastructure upgrade will be complete,
    delivering increased communications bandwidth to the desktop to support
    the applications of the future. This upgrade, already underway, will
    provide 100 megabits per second (Mbps) to the desktop and one gigabit
    per second (Gbps) between servers in the network. To improve
    communications for Members' state offices, we continuously analyze and
    adjust their wide area network connections and increase bandwidth as
    required. This flexibility allows us to support sophisticated Web
    services over the Internet, as well as the video teleconferencing
    program that is currently underway. Under the video teleconferencing
    program, a state-of-the-art video teleconferencing terminal will be
    installed at each Member's Capitol Hill office and a similar terminal
    at the state office of their choice.
        Electronic Mail and Office Automation Applications.--The Senate
    Messaging Infrastructure is almost complete, with 98 percent of all
    offices migrated to Microsoft Exchange and Outlook. The Active
    Directory Messaging Architecture program, the successor to the Senate
    Messaging Infrastructure program, is currently in the design phase. It
    will allow Member and Committee offices to have choices between central
    and distributed management of their Exchange servers, a Senate global
    address list, and office servers updated from Microsoft NT4 to
    Microsoft Windows 2003 technology. In addition, we will continue to
    expand and upgrade our BlackBerry system to supplement both the Senate
    e-mail system and the emergency notification systems. Moving into the
    next year, continued convergence of devices and the widespread use of
    combination cell phone and BlackBerry devices are anticipated. This
    office is committed to deploying systems that will allow Members more
    flexibility in choosing which wireless device to use for receiving
    emergency notifications and legislative alerts.
                              operational support
        While security and information technology initiatives are
    necessarily at the forefront of the SAA's efforts to serve the Senate
    community at this particular time in history, the core value required
    to execute these initiatives successfully--a commitment to exceptional
    customer service--has always been a cornerstone of the SAA's
    operational support. Over the past year, we have seen significant
    improvements in the operational aspects of the SAA's support to the
    Senate. Some of the achievements and projects outlined below are the
    result of better integrating technology into business practices; others
    originated from the need to find innovative solutions to challenges
    presented by the ricin incident. Regardless of the impetus for these
    accomplishments, they all demonstrate the hard work and dedication of
    the SAA operational staffs.
        Senate Post Office.--The Senate Post Office delivered nearly 19
    million safe articles of mail to the Senate community during fiscal
    year 2003. It is our understanding that this was accomplished for
    approximately $3 million less than the House of Representatives, which
    uses an outside contractor to handle similar volume.
        One of the security improvements implemented this past year was a
    new package and envelope-testing site for couriers, allowing for same-
    day delivery of time-sensitive items. Additionally, as set forth
    previously in this testimony, the ricin incident in February led to the
    adoption of new mail protocols. This was accomplished by leveraging
    existing personnel and assets while improving the safety, security, and
    cost effectiveness of mail delivery.
        Warehouse.--The need for a modern, efficiently designed warehouse
    facility and mail processing facility continues and, following the
    ricin incident, has become more critical. All mail, packages, and
    deliveries to the Senate must be inspected to ensure the safety of the
    institution. We believe that locating a new warehouse adjacent to the
    U.S. Capitol Police off-site inspection facility will yield
    considerable security and operating benefits. The warehouse and mail
    processing facilities, together with planned U.S. Capitol Police
    initiatives, will ensure the safety and security of Senate assets and
    staff. The financial benefits include eliminating an estimated $800,000
    in annual recurring costs, including the outsourcing expenses for
    package processing that are currently being performed by a contractor.
        Current warehouse facilities are geographically dispersed,
    environmentally inadequate for document and furniture storage and do
    not meet the minimum requirements of the General Services
    Administration. A new facility will correct these problems and enable
    volume discounts for Secretary of the Senate and SAA purchases. It will
    give a longer useful life to furniture and fixtures warehoused and
    provide specialized storage to meet the needs of the Senate Curator and
    Librarian. A new warehouse facility will ultimately benefit the whole
    Senate community through increased efficiency, enhanced security, and
    improved organization.
        Capitol Facilities.--The Capitol Facilities staff continues to work
    around the clock to ensure that the environment within the Capitol is
    clean and professional. With a new management team and a fresh look at
    key processes, the appearance of the Capitol has significantly
    improved. Among the staff's many accomplishments this past year is its
    successful relocation of the Secretary of the Senate's Capitol staff
    from basement offices, which were disrupted by Capitol Visitor Center
    construction, to newly developed fourth-floor office space. This move
    was done without interrupting the Secretary of the Senate's ability to
    support the legislative process.
        Printing, Graphics, and Direct Mail.--The innovations in this
    operational area resulted in substantial cost savings to its customers.
    Specifically, over $1.8 million was saved through the staff's work with
    Member offices on ways to address letters to ensure discounted postage
    rates are received as often as possible. The amount of processed mail
    that qualified for discounted postage this past year was 23 percent
    higher than in fiscal year 2002.
        The use of technology in this area has enhanced customer service.
    Over 2.2 million documents were produced through the SAA's online
    ordering service, a 427 percent increase over fiscal year 2002, when
    the service was first implemented. Online ordering reduces errors and
    provides convenience and labor savings by enabling Senate offices to
    order printing services from their desktops.
        This past year, automation also resulted in a significant increase
    in the Senate's ability to archive documents. By fully automating the
    process, the SAA was able to archive over two million documents for the
    Senate. This represents a 218 percent increase over the previous year
    with no additional staff.
        Photo Studio.--The Senate Photo Studio completed its transition
    from film to high-resolution digital photography and its conversion to
    digital photo printing processes this past year. Photography and photo
    printing services are now being performed digitally, eliminating some
    chemical processes and bringing significant improvements in quality and
    delivery of products to our customers.
        The shift to a digital operation allows staff to view photographs
    taken by the Senate Photo Studio immediately, on site. It also enables
    the Studio to e-mail high-resolution images to Senate offices, and
    allows offices to view images and download them. These enhancements
    have been received well by customers.
        Senate Recording Studio.--The Senate Recording Studio remains a
    leader in the use of technology. Last year, the Recording Studio
    initiated a project to upgrade and install multimedia equipment in
    Committee hearing rooms, including digital signal processing, audio
    systems, and broadcast quality robotic camera systems. This project
    will continue this year.
        The audio upgrades will improve speech intelligibility and provide
    software-based systems that can be reconfigured based on an individual
    Committee's needs. The upgrades also include diagnostic monitoring,
    which enables staff to detect and resolve problems before the problems
    become disruptive. For instance, if a Member is speaking at a
    relatively low volume, the system can more effectively raise the volume
    of that microphone. If a Member who is about to speak does not turn on
    the microphone, the Committee clerk can remotely turn it on from a
    computer. Even if the main electronics fail, a backup system will take
    over within minutes. Additionally, the system provides networking that
    allows the audio to be automatically routed from one hearing room to
    other hearing rooms for overflow purposes.
        The video upgrades will include the addition of broadcast-quality
    television cameras. These cameras will be installed on robotic systems
    and can be controlled remotely from the Recording Studio. The upgrades
    also include cabinetry so the cameras can be concealed when not in use.
    Once this project is completed, the Recording Studio will be able to
    meet the demand for the broadcast of Committee hearings and
    simultaneously maintain production capabilities in the television
    studios.
        The Senate has had the ability to search Chamber proceedings by
    text and listen to audio playback from desktop computers for years. In
    fact, the Senate was a pioneer in this area, and accomplished it in the
    early years of computer browsers. The next major advance will be the
    replacement of the audio and text browsing systems this summer with a
    state-of-the-art audio/text/video browsing system. This will enable
    Senate staff to search and play back Chamber proceedings and news
    programming from any computer on the Senate LAN.
        This system is the result of a modernization of the Senate
    Recording Studio's technical plant that incorporates technology so new
    that it is operational in only a handful of facilities in the country.
    This new technology will enable the Recording Studio to record, edit,
    and play media without ever using tape machines, while simultaneously
    making the media available for online searching and streaming. In the
    near future, the Recording Studio plans to add Senate hearings and
    other media to the system.
        Education and Training.--In 2003, the Senate's Joint Office of
    Education and Training offered 694 classes, with 6,916 Senate employees
    participating. Of the total number of classes offered, 309 were
    technical training, with 1,730 students participating. The registration
    desk handled 15,390 requests for training and documentation. An
    additional 1,126 staff received coaching on various software packages
    and other computer-related issues. Training was provided to almost the
    entire Senate community as the new Senate Messaging Infrastructure was
    implemented.
        Over 350 professional development classes were offered last year
    with a total attendance of 5,117 students. Managers and supervisors are
    encouraged to request customized training for their offices. As a
    result, the staff of the Joint Office of Education and Training worked
    on more than 40 occasions with teams on issues related to team
    performance, communication, and conflict resolution. Over 1,300 Senate
    staff also took advantage of the 18 health events sponsored by this
    office.
        A ``State Training Fair,'' which was first available in March 2000,
    was offered three times this past year to 134 state staff members.
    Forty-two senior leaders in state offices also participated in the
    first State Directors Forum. In addition, state offices continue to be
    offered ``Virtual Classrooms,'' an Internet-based training library of
    over 300 courses. To date, 164 state office staff, representing 59
    Senators, have used the virtual classrooms.
        The Joint Office of Education and Training ensures that the
    training designed for Senate staff meets their needs. This upcoming
    year particular attention will be paid to providing training to
    increase the Senate's awareness of information technology security.
    Specifically, an IT Security Awareness program for Senate staff is
    being developed and a course on reviewing and configuring security
    settings on Windows servers is ready for delivery. Existing computer
    security classes and documentation are being revamped, and IT security
    issues will be included as an integral part of our system
    administration classes and other classes. System Administrators will be
    able to receive training to maintain and enhance their skills,
    including new, self-paced training with mentoring for those who would
    benefit from more instruction and personal guidance.
        Support to Other Organizations.--In addition to the support the SAA
    provides the Senate, we also provide significant support to
    organizations outside the Senate. In fiscal year 2003, the SAA
    performed services for other organizations costing over $3 million
    without reimbursement. Most of these services support the U.S. Capitol
    Police and the Architect of the Capitol. However, support is also
    provided on occasion to the House of Representatives, and to liaison
    offices and other organizations located in the Senate Office Buildings.
    These services include printing and graphics products, maintenance of
    radio and network systems, telephone services (some of which are
    reimbursed), and computer repair and installation.
                                   conclusion
        The staff of the SAA has done tremendous work to keep the Senate
    safe, secure, and operating efficiently. The accomplishments and vision
    of this office would not be possible without the active, ongoing
    support of this Committee and the Committee on Rules and
    Administration. We thank you for your support and for the opportunity
    to present this testimony and answer questions.
        From security to technology to operational support, we are
    dedicated to making sure that our products and services support the
    Senate's mission. The appendix accompanying this testimony elaborates
    the specific components of our fiscal year 2005 budget request.
                                     ______

                                  Attachment I
                      Financial Plan for Fiscal Year 2005
              office of the sergeant at arms--united states senate
                               executive summary

                                                 [Dollars in thousands]
    ----------------------------------------------------------------------------------------------------------------
                                                                          TOTALS              Fiscal Year 2005 vs.
                                                                --------------------------      Fiscal Year 2004
                                                                              Fiscal Year --------------------------
                                                                 Fiscal Year      2005                     Percent
                                                                 2004 Budget    Request       Amount      Incr/Decr
    ----------------------------------------------------------------------------------------------------------------
    General Operations & Maintenance:
        Salaries...............................................      $45,789      $50,635       $4,846          10.6
        Expenses...............................................      $46,581      $55,585       $9,004          19.3
                                                                ----------------------------------------------------
          Total General Operations & Maintenance...............      $92,370     $106,220      $13,850          15.0
                                                                ====================================================
    Mandated Allowances & Allotments...........................      $56,398      $58,129       $1,731           3.1
    Capital Investment.........................................      $27,570      $18,062      ($9,508)        -34.5
    Nondiscretionary Items.....................................       $4,694       $4,290        ($404)         -8.6
                                                                ----------------------------------------------------
          TOTAL................................................     $181,032     $186,701       $5,669           3.1
                                                                ====================================================
    Staffing...................................................          845          860           15           1.8
    ----------------------------------------------------------------------------------------------------------------

        To ensure that we provide the highest levels and quality of
    security, support services and equipment, we submit a fiscal year 2005
    budget request of $186,701,000, an increase of $5,669,000 or 3.1
    percent compared to fiscal year 2004. The salary budget request is
    $50,635,000, an increase of $4,846,000 or 10.6 percent, and the expense
    budget request is $136,066,000, an increase of $823,000 or 0.6 percent.
    The staffing request is 860, an increase of 15 FTEs.
        For the third consecutive year, we have increased funds for
    security initiatives. The fiscal year 2005 budget request for security
    is $17,698,000, an increase of $1,588,000 or 9.8 percent compared to
    fiscal year 2004. The most significant aspects of the total security
    request are funding security upgrades for Member state offices
    ($3,650,000 in expenses); the Alternate Computing Facility (ACF)
    ($1,172,000 in salaries for 17 FTEs and $2,166,000 in expenses);
    enhanced communication services ($2,300,000 in expenses); personnel and
    operating expenses requested for the Office of Security and Emergency
    Preparedness ($1,074,000 in salaries for 12 FTEs and $2,166,000 in
    expenses); secure mail and package processing protocols ($694,000 in
    salaries for 19 FTEs and $2,165,000 in expenses); and network security
    ($305,000 in salaries for 4 FTEs and $1,704,000 in expenses).
        We present our budget in four categories: General Operations and
    Maintenance (Salaries and Expenses), Mandated Allowances and
    Allotments, Capital Investment, and Nondiscretionary Items.
        The general operations and maintenance salaries budget request is
    $50,635,000, an increase of $4,846,000 or 10.6 percent compared to
    fiscal year 2004. The salary budget increase is due to the addition of
    15 FTEs, a 3.9 percent COLA, and merit funding. The additional staff
    will augment our security team, improve operations, expand services,
    and meet new requirements for the Senate community.
        The general operations and maintenance expenses budget request for
    existing and new services is $55,585,000, an increase of $9,004,000 or
    19.3 percent compared to fiscal year 2004. Major factors contributing
    to the increase are price adjustments and annual escalations in the IT
    Support contracts, $2,583,000; increased cost of expanded intrusion
    detection monitoring services and software, $1,105,000; implementation
    of a new real-time news service and renegotiation of all other Senate
    Information Services (SIS) contracts, $860,000; management consultants
    and services required for security operations and planning and
    emergency preparedness, $666,000; replacement of existing enterprise
    servers, $565,000; replacement of wiring in the Capitol, $500,000;
    increased hardware maintenance and licenses for the ACF, $310,000;
    procurement of furnishings, carpeting, and window treatments for the
    Senate wing of the Capitol, $238,000; support agreements for word
    processing and virus software, $202,000; and increased mainframe
    software maintenance, $181,000.
        The mandated allowances and allotments budget request is
    $58,129,000, an increase of $1,731,000 or 3.1 percent compared to
    fiscal year 2004. Major factors contributing to the increase are
    projected increases in commercial and federal office rents, $953,000,
    and maintenance and monitoring of previously installed security systems
    and new security installations in offices established following the
    2004 elections, $906,000. A decrease of $294,000 in office equipment
    purchases in Washington D.C. and state offices partially offsets these
    increases.
        The capital investment budget request is $18,062,000, a decrease of
    $9,508,000 or 34.5 percent compared to fiscal year 2004.
        Major factors contributing to this budget request are completing
    the procurement of the Mail Processing Facility/Warehouse, $7,200,000;
    upgrading Senate data networks and related management systems,
    $2,952,000; initial design and equipment purchases for the replacement
    of the Capitol Hill telephone system, $2,800,000; procurement of
    furnishings and equipment for the Senate side of the Capitol Visitor's
    Center (CVC), $2,500,000; workflow technology hardware and software,
    $400,000; backup document archiving system at the ACF, $350,000;
    emergency backup storage for Members at the ACF, $325,000; upgrading
    mail processing equipment, $310,000; and testing and evaluating
    telecommunications equipment and products, $250,000. Funds also are
    requested for several smaller printing and video projects.
        Funding is no longer required for relocation of the Recording
    Studio in conjunction with the CVC Project and completion of Phases I,
    II and III for the Digital Technology Migration Project, completion of
    CMS projects, acquisition of the work-order system, acquisition of an
    ID laser printing system, acquisition of a mail sorter, and completion
    of the upgrade to the video conferencing project.
        The nondiscretionary items budget request is $4,290,000, a decrease
    of $404,000 or 8.6 percent compared to fiscal year 2004. Major factors
    contributing to this budget request are contract maintenance for the
    Financial Management Information System (FMIS), $2,700,000;
    enhancements to the Legislative Information System (LIS), $1,220,000;
    and requirements definition for replacement of the Senate Payroll
    System, $370,000.
                                     ______

                                 Attachment II
                 Fiscal Year 2005 Budget Request by Department
        The following is a summary of the SAA's fiscal year 2005 budget
    request on an organizational basis.

                                                 [Dollars in thousands]
    ----------------------------------------------------------------------------------------------------------------
                                                                          TOTALS              Fiscal Year 2005 vs.
                                                                --------------------------      Fiscal Year 2004
                             Department                                       Fiscal Year --------------------------
                                                                 Fiscal Year      2005                     Percent
                                                                 2004 Budget    Request       Amount      Incr/Decr
    ----------------------------------------------------------------------------------------------------------------
    Capitol Division...........................................      $10,765      $13,400       $2,635          24.5
    Operations.................................................      $43,473      $37,608      ($5,865)        -13.5
    Chief Information Officer..................................      $91,781      $99,074       $7,293           7.9
    Office Support.............................................      $29,230      $30,261       $1,031           3.5
    Staff Offices..............................................       $5,783       $6,358         $575           9.9
                                                                ----------------------------------------------------
          TOTAL................................................     $181,032     $186,701       $5,669           3.1
    ----------------------------------------------------------------------------------------------------------------

        Each department's budget is presented and analyzed in detail
    beginning on the next page.
                                capitol division

                                                 [Dollars in thousands]
    ----------------------------------------------------------------------------------------------------------------
                                                                           TOTALS             Fiscal Year 2005 vs.
                                                                 --------------------------     Fiscal Year 2004
                          Capitol Division                                     Fiscal Year -------------------------
                                                                  Fiscal Year      2005                    Percent
                                                                  2004 Budget    Request       Amount     Incr/Decr
    ----------------------------------------------------------------------------------------------------------------
    General Operations & Maintenance:
        Salaries................................................       $6,355       $7,317         $962         15.1
        Expenses................................................       $1,666       $2,433         $767         46.0
                                                                 ---------------------------------------------------
          Total General Operations & Maintenance................       $8,021       $9,750       $1,729         21.6
                                                                 ===================================================
    Mandated Allowances & Allotments............................       $2,744       $3,650         $906         33.0
    Capital Investment..........................................           $0           $0           $0          0.0
    Nondiscretionary Items......................................           $0           $0           $0          0.0
                                                                 ---------------------------------------------------
          TOTAL.................................................      $10,765      $13,400       $2,635         24.5
                                                                 ===================================================
    Staffing....................................................          143          145            2         1.4
    ----------------------------------------------------------------------------------------------------------------
    The Capitol Division consists of the Executive Office, Media Galleries and the Office of Security and Emergency
      Preparedness.

        The general operations and maintenance salaries budget request is
    $7,317,000, an increase of $962,000 or 15.1 percent. The salary budget
    increase is due to the addition of two FTEs, an expected 3.9 percent
    COLA, and merit funding for fiscal year 2005. The Office of Security
    and Emergency Preparedness requires two additional FTEs to direct,
    develop and monitor the processes and procedures needed to ensure
    security for the Senate and to work on the Continuity of Operations
    Plan.
        The general operations and maintenance expenses budget request is
    $2,433,000, an increase of $767,000 or 46.0 percent, primarily for
    increased management consulting services for security initiatives.
        The mandated allowances and allotments budget request for state
    office security initiatives is $3,650,000, an increase of $906,000 or
    33.0 percent. Funding is required for the maintenance and monitoring of
    previously installed security systems and new security installations in
    offices established following the 2004 elections and consists of three-
    year funds.
                                   operations

                                                 [Dollars in thousands]
    ----------------------------------------------------------------------------------------------------------------
                                                                          TOTALS              Fiscal Year 2005 vs.
                                                                --------------------------      Fiscal Year 2004
                             Operations                                       Fiscal Year --------------------------
                                                                 Fiscal Year      2005                     Percent
                                                                 2004 Budget    Request       Amount      Incr/Decr
    ----------------------------------------------------------------------------------------------------------------
    General Operations & Maintenance:
        Salaries...............................................      $16,349      $17,817       $1,468           9.0
        Expenses...............................................       $7,992       $8,816         $824          10.3
                                                                ----------------------------------------------------
          Total General Operations & Maintenance...............      $24,341      $26,633       $2,292           9.4
                                                                ====================================================
    Mandated Allowances & Allotments...........................           $0         $165         $165   ...........
    Capital Investment.........................................      $19,132      $10,810      ($8,322)        -43.5
    Nondiscretionary Items.....................................           $0           $0           $0           0.0
                                                                ----------------------------------------------------
          TOTAL................................................      $43,473      $37,608      ($5,865)        -13.5
                                                                ====================================================
    Staffing...................................................          363          364            1          0.3
    ----------------------------------------------------------------------------------------------------------------
    The Operations Division consists of the Central Operations Group (Printing, Graphics and Direct Mail, Parking
      Office, Director/Management, ID Office, Photo Studio, and Hair Care Services), Operations Administrative
      Services, Recording Studio, Post Office, and Facilities.

        The general operations and maintenance salaries budget request is
    $17,817,000, an increase of $1,468,000 or 9.0 percent. The salary
    budget increase is due to the addition of one FTE to provide
    administrative support, an expected 3.9 percent COLA, and merit funding
    for fiscal year 2005.
        The general operations and maintenance expenses budget request is
    $8,816,000, an increase of $824,000 or 10.3 percent. Major factors
    contributing to the increase are maintenance and procurement of
    furnishings, carpeting and window treatments for the Senate wing in the
    Capitol building, $238,000; increased warehouse rent and operating
    expenses, $120,000; software customizations and interfaces for the
    work-order system purchased in fiscal year 2004, $100,000; increased
    screening costs for more secure package processing, $100,000;
    replacement of miscellaneous printing/mailing equipment, $90,000; and
    maintenance on software and production equipment, $55,000.
        The mandated allowances and allotments budget request is $165,000
    to furnish Capitol offices. The capital investment budget request is
    $10,810,000, a decrease of $8,322,000 or 43.5 percent.
        Major factors contributing to this budget request are completion of
    the procurement of the Mail Processing Facility/Warehouse, $7,200,000;
    procurement of furnishings and equipment for the Senate side of the
    CVC, $2,500,000; purchase of a Data Storage Server to provide emergency
    archival backup services for Member offices at the ACF, $350,000;
    upgrades to and replacement of outdated mailing equipment, $310,000;
    replacement of an outdated color printer, $200,000; and upgrades to and
    enhancement of the Photo Browser database, $200,000.
        Funding is no longer required for relocation of the Recording
    Studio in conjunction with the CVC Project and completion of Phases I,
    II and III for the Digital Technology Migration Project, upgrades to
    the Senate Chamber Audio System, acquisition of the work-order system,
    acquisition of an ID laser printing system, and acquisition of a mail
    sorter for the Post Office.
        Funding for the Mail Processing Facility/Warehouse, $7,200,000, and
    the Facilities CVC project, $2,500,000, consists of three-year funds.
                           chief information officer

                                                 [Dollars in thousands]
    ----------------------------------------------------------------------------------------------------------------
                                                                          TOTALS              Fiscal Year 2005 vs.
                                                                --------------------------      Fiscal Year 2004
                     Chief Information Officer                                Fiscal Year --------------------------
                                                                 Fiscal Year      2005                     Percent
                                                                 2004 Budget    Request       Amount      Incr/Decr
    ----------------------------------------------------------------------------------------------------------------
    General Operations & Maintenance:
        Salaries...............................................      $16,498      $18,395       $1,897          11.5
        Expenses...............................................      $35,795      $43,074       $7,279          20.3
                                                                ----------------------------------------------------
          Total General Operations & Maintenance...............      $52,293      $61,469       $9,176          17.5
                                                                ====================================================
    Mandated Allowances & Allotments...........................      $26,356      $26,063        ($293)         -1.1
    Capital Investment.........................................       $8,438       $7,252      ($1,186)        -14.1
    Nondiscretionary Items.....................................       $4,694       $4,290        ($404)         -8.6
                                                                ----------------------------------------------------
          TOTAL................................................      $91,781      $99,074       $7,293           7.9
                                                                ====================================================
    Staffing...................................................          249          254            5          2.0
    ----------------------------------------------------------------------------------------------------------------
    The Chief Information Officer Division consists of IT Support Services, Technology Development Services,
      Administrative Services, Process Management and Innovation, and Information Technology.

        The general operations and maintenance salaries budget request is
    $18,395,000, an increase of $1,897,000 or 11.5 percent. The salary
    budget increase is due to the addition of five FTEs, an expected 3.9
    percent COLA, and merit funding for fiscal year 2005. IT Support
    Services requires three new FTEs to serve as network engineers to
    accommodate increased workload for emergency preparedness and
    telecommunication systems at alternate locations. Technology
    Development Services requires one FTE to serve as a senior software
    specialist to assist with maintenance and enhancements to the Contract
    Administration System and other administrative systems. Administrative
    Services requires one FTE to draft correspondence, proof documents, and
    provide executive-level assistance to the Technical Writer, the
    Assistant Sergeant at Arms for Security and Emergency Preparedness, the
    Assistant Sergeant at Arms and Chief Information Officer, and Special
    Projects.
        The general operations and maintenance expense budget request is
    $43,074,000, an increase of $7,279,000 or 20.3 percent. Major factors
    contributing to this increase are price adjustments and annual
    escalations in the IT support contract, $2,583,000; increased cost of
    expanded intrusion detection monitoring services and software,
    $1,105,000; implementation of a new real-time news service and
    renegotiation of all other SIS contracts, $860,000; replacement of
    existing enterprise servers, $565,000; replacement of wiring in the
    Capitol, $500,000; increased hardware maintenance and licenses for the
    ACF, $310,000; support agreements for word processing and anti-virus
    software, $202,000; increased professional services for threat
    assessments and disaster recovery improvements, $190,000; increased
    mainframe software maintenance, $181,000; and additional purchases of
    data communication equipment, $172,000.
        The mandated allowances and allotments budget request is
    $26,063,000, a decrease of $293,000 or 1.1 percent. Major factors
    contributing to this budget request are voice and data communications
    for Washington D.C. and state offices, $17,937,000; procurement and
    maintenance of Members' constituent mail systems, $4,255,000;
    procurement and maintenance of office equipment for Washington D.C. and
    state offices, $3,181,000; and acquisition of the Appropriations
    Analysis and Reporting System, $400,000. Reduced purchases of office
    equipment, primarily photocopiers, for Washington D.C. and state
    offices results in the lower budget request for fiscal year 2005.
    Funding for procurement and maintenance of Members' constituent mail
    systems, $4,255,000, consists of five-year funds.
        The capital investment budget request is $7,252,000, a decrease of
    $1,186,000 or 14.1 percent. Major factors contributing to this budget
    request are upgrade of the data network, $2,952,000; initial design and
    equipment purchases for the replacement of the Capitol Hill telephone
    system, $2,800,000; and purchase of data storage servers to provide
    emergency backup for Member offices at the ACF, $325,000. Reduced
    funding needs for the Asset Management Upgrade Project as it moves into
    the maintenance phase, several CMS-related projects, the Public Key
    Infrastructure project, the Wireless PDA project, the Enterprise
    Storage Area Network project, and the Application Server Provider
    project result in the lower budget request for fiscal year 2005.
        The nondiscretionary items budget request is $4,290,000, a decrease
    of $404,000 or 8.6 percent. Major factors contributing to this budget
    request are contract maintenance for the Financial Management
    Information System (FMIS), $2,700,000; enhancements to the Legislative
    Information System (LIS), $1,220,000; and requirements definition for
    replacement of the Senate Payroll System, $370,000.
                            office support services

                                                 [Dollars in thousands]
    ----------------------------------------------------------------------------------------------------------------
                                                                          TOTALS              Fiscal Year 2005 vs.
                                                                --------------------------      Fiscal Year 2004
                      Office Support Services                                 Fiscal Year --------------------------
                                                                 Fiscal Year      2005                     Percent
                                                                 2004 Budget    Request       Amount      Incr/Decr
    ----------------------------------------------------------------------------------------------------------------
    General Operations & Maintenance:
        Salaries...............................................       $1,895       $1,995         $100           5.3
        Expenses...............................................          $37          $15         ($22)        -59.5
                                                                ----------------------------------------------------
          Total General Operations & Maintenance...............       $1,932       $2,010          $78           4.0
                                                                ====================================================
    Mandated Allowances & Allotments...........................      $27,298      $28,251         $953           3.5
    Capital Investment.........................................           $0           $0           $0           0.0
    Nondiscretionary Items.....................................           $0           $0           $0           0.0
                                                                ----------------------------------------------------
          TOTAL................................................      $29,230      $30,261       $1,031           3.5
                                                                ====================================================
    Staffing...................................................           28           28            0          0.0
    ----------------------------------------------------------------------------------------------------------------
    The Office Support Services Department consists of the Customer Support, Help and IT Request Processing, State
      Office Liaison, and Director branches.

        The general operations and maintenance salaries budget request is
    $1,995,000, an increase of $100,000 or 5.3 percent. The salary budget
    increase is due to an expected 3.9 percent COLA and merit funding for
    fiscal year 2005.
        The general operations and maintenance expenses budget request is
    $15,000, a decrease of $22,000 or 59.5 percent, resulting from a
    reduction in travel costs and office supplies.
        The mandated allowances and allotments budget request is
    $28,251,000, an increase of $953,000 or 3.5 percent, resulting from
    projected increases in commercial and federal office rents. Funding to
    purchase computer equipment for Members, Committees, Officers, and
    Leadership, $10,315,000, consists of three-year funds.
                                 staff offices

                                                 [Dollars in thousands]
    ----------------------------------------------------------------------------------------------------------------
                                                                           TOTALS             Fiscal Year 2005 vs.
                                                                 --------------------------     Fiscal Year 2004
                            Staff Offices                                      Fiscal Year -------------------------
                                                                  Fiscal Year      2005                    Percent
                                                                  2004 Budget    Request       Amount     Incr/Decr
    ----------------------------------------------------------------------------------------------------------------
    General Operations & Maintenance:
        Salaries................................................       $4,692       $5,111         $419          8.9
        Expenses................................................       $1,091       $1,247         $156         14.3
                                                                 ---------------------------------------------------
          Total General Operations & Maintenance................       $5,783       $6,358         $575          9.9
                                                                 ===================================================
    Mandated Allowances & Allotments............................           $0           $0           $0          0.0
    Capital Investment..........................................           $0           $0           $0          0.0
    Nondiscretionary Items......................................           $0           $0           $0          0.0
                                                                 ---------------------------------------------------
          TOTAL.................................................       $5,783       $6,358         $575          9.9
                                                                 ===================================================
    Staffing....................................................           68           69            1         1.5
    ----------------------------------------------------------------------------------------------------------------
    The Staff Offices Division consists of Education and Training, Financial Management, Human Resources, and
      Special Projects.

        The general operations and maintenance salaries budget request is
    $5,111,000, an increase of $419,000 or 8.9 percent. The salary budget
    increase is due to the addition of one FTE to perform compensation and
    classification duties, an expected 3.9 percent COLA, and merit funding
    for fiscal year 2005.
        The general operations and maintenance expenses budget request is
    $1,247,000, an increase of $156,000 or 14.3 percent, primarily from
    increased professional services operating expenses and purchase of
    equipment and software for training programs.

                           EFFECT OF BUDGETARY FREEZE

        Senator Campbell. Thank you, Mr. Pickle. I'm going to ask
    you what I've asked everyone who's testified before this
    committee this year, and that is, how would you manage if we
    had a freeze, and have you prioritized your budget?
        Mr. Pickle. I'd really have to study it but I would say
    offhand the first thing that we would not touch would be
    security and emergency preparedness. Then we would look and
    prioritize, along with the committee's assistance, and work on
    those areas where we could make cuts. But certainly the
    security and emergency preparedness would be untouchable for
    me.

                              STATUS OF WAREHOUSE

        Senator Campbell. Good answer. Now, last year we provided
    $6.3 million for design and land purchase for a new warehouse.
    Your budget request for 2005 includes an additional $7.2
    million for this same project. What's the status of that
    warehouse project now?
        Mr. Pickle. The actual design of the project is about two-
    thirds complete. But this year's ricin attack has put us back a
    little bit. And let me explain that. We all agree that a
    warehouse is very important. We're using three very obsolete
    facilities--they're spread out around the metropolitan area--
    and for many, many reasons we need to replace those three
    facilities with one. The ricin attack caused us to make some
    very fundamental changes here on the Hill in regard to mail
    processing. As you probably realize, we are now examining all
    mail before it comes on campus. What we are looking to do is,
    we want a partnership with the police department, and we're
    looking for one footprint, or one piece of land, where we can
    have separate facilities--a warehouse, a mail processing center
    and the police department's off-site inspection center. We're
    moving toward it, and the reality is that money that's been
    appropriated is a good start, but I truly believe we're going
    to need significantly more money to do this the right way.
        Senator Campbell. So this $7.2 million won't be enough to
    complete the project? Is that correct?
        Mr. Pickle. No, it will not. It would be substantially more
    than that.
        Senator Campbell. Is it something that could be deferred in
    view of budgetary constraints or is that considered a really
    high priority?
        Mr. Pickle. I think it's a high priority for several
    reasons. We have personnel who are now opening this mail off-
    site in very primitive conditions. We're making them safe, they
    are safe.
        Senator Campbell. What is a primitive condition?
        Mr. Pickle. When I say primitive, we are remodeling a
    current warehouse facility; it's a very close-in facility. Now,
    where it's safe, and we have the negative airflow and we have
    all the precautions that we're taking to make them safe, it's
    just not a very efficient operation. There are several
    different processes, which I won't go into here in this open
    session, but there's several different processes and it is a
    very, very labor-intensive process.
        Senator Campbell. Well, the ricin scare was after we
    provided the $6.3 million. Have you had to do design changes
    that you hadn't expected?
        Mr. Pickle. Yes, we have because the ricin scare forced us
    to look at the way we handled mail and it's caused us to do a
    re-engineering of the actual process. But the fundamental
    design changes whereby walls are here and interior walls are
    here, that hasn't changed too significantly.

                                STAFFING LEVELS

        Senator Campbell. I see. Your budget also includes 15
    additional staff over the fiscal year 2004 authorized level.
    This committee understands that there are about 50 vacancies,
    excluding patronage positions. Why do you have so many
    unfulfilled positions and why are you requesting additional
    ones when you haven't filled the other 50?
        Mr. Pickle. Well, that was my question, too. It was my
    question last year and I think it was your question last year.
    And I thought I had a good answer last year and I'm going to
    try to give you a better one this year. What we have found is,
    we have an attrition rate of maybe 3 or 4 percent a year. We
    constantly have people who are leaving for one reason or
    another. We have also been given additional positions by this
    committee over the last several years which we are trying very
    aggressively to fill. So I guess what I'm saying is, as we hire
    one person we may have one vacancy occur. But the other part of
    that, and this is an important part, we have many applicants
    for these positions but we still continue to insist on hiring
    only the best people we can find. And if we don't find the
    right person then we won't fill that person and we will
    readvertise it. But I agree it's imperative that we become
    fully staffed. We are not there yet and I do not think, based
    on what I found out, that we are any different than any other
    organization, private or governmental, whereby you ever reach
    full staffing levels.
        Senator Campbell. So with the 50 vacancies, are our service
    levels degraded any place in particular?
        Mr. Pickle. I think it's across the board but one of the
    areas that we're increasing dramatically this year, and it's
    not reflected in our initial budget request, is we've added 12
    positions to the post office for mail handlers, and this is for
    those personnel who will examine mail.

                              NEW TELEPHONE SYSTEM

        Senator Campbell. Your budget includes $2.8 million for the
    design of a new Capitol Hill telephone system. Why is that
    system needed and when would funding be required for the system
    itself?
        Mr. Pickle. It's my understanding the last major
    telecommunications upgrade took place in the late 80's. What
    this $2.8 million does for us is it gives us about $800,000 to
    do the actual consulting work, the research, the developmental
    work, looking at the architecture we have or will need. The
    other $2 million is a number that we believe will be sufficient
    this year to start buying additional equipment, phone sets. But
    you are right and I think where you're going, the long-term
    cost will be much more but we can't----
        Senator Campbell. Do you have an estimate about that long-
    term cost?
        Mr. Pickle. The long-term cost I do not know; we won't know
    until we complete the consulting work. That's part of this
    funding.

                          NEW MAIL HANDLING PROTOCOLS

        Senator Campbell. For whatever you can say in a public
    forum here, what's the status of the new mail handling
    protocols? What's been put in place following the ricin
    incident?
        Mr. Pickle. Let me talk in general terms if I may. Mail
    coming to the Senate continues to be irradiated at a postal
    facility in the Northeast part of this country. It's then
    delivered here to Washington where it goes to a mail examining
    center. The mail is examined in a particular process. It then
    goes to another center where it's actually opened, physically
    opened, and each individual letter is opened and examined for
    any type of substance. It's then quarantined until the tests
    come back negative. It is then delivered to the Senate post
    office, where the post office then delivers it to the
    individual committee or Member's office. This process,
    unfortunately, adds about 24 hours to the current mail delivery
    process. We're looking at postmark to delivery about 8 to 10
    days. Now, having said that, we still have a backlog because,
    as you remember, on February 3, when we had the ricin attack,
    we stopped delivery of mail for approximately 10 days here on
    the Senate side. We're trying to go through all that mail that
    is backed up and clean it out of the system and get it
    delivered. So we still have a backlog of just under 2 weeks of
    mail that hasn't been caught up with.
        Senator Campbell. About 2 weeks?
        Mr. Pickle. About 2 weeks' worth.

                             EFFECTS OF IRRADIATION

        Senator Campbell. One last little question. I don't know if
    this happened to all the other Senators or just me but this is
    my Senate card, and it's all faded and flat. The raised
    numbers, that go through the irradiation machine, they're
    perfectly flat so the electronic tape, this magnetic tape on
    the back still works but the front doesn't. I was told that
    that's what irradiation does to them. Is that just my card or
    do they all come out like that?
        Mr. Pickle. No, if the irradiation level is high enough it
    will, the term that's used, ``cook'' something and that heat
    could, in fact, flatten those out.
        Senator Campbell. Is there anything on the drawing board
    that won't do that to cards?
        Mr. Pickle. Well, I'm surprised that happened. We promised
    about 1 year ago that we would reduce those levels considerably
    so as to prevent that. But we will look into that, certainly.
        Senator Campbell. Okay, I have no further questions.
    Senator Durbin.

                           JUDICIARY COMMITTEE PROBE

        Senator Durbin. Thank you, Mr. Chairman. Mr. Pickle, again
    let me thank you and all those who helped you with the
    investigation on the computer break-in, computer theft. I know
    it was an extraordinary commitment on your part and the people
    who worked with you, with the Capitol Police as well as the
    Secret Service. I thank you for that.
        Mr. Pickle. Thank you.
        Senator Durbin. I'd like to ask you a few follow-up
    questions. You're aware of the fact that when the Senate
    Judiciary Committee finished a number of letters were sent to
    the Attorney General.
        Mr. Pickle. Yes, sir.
        Senator Durbin. Different letters. Some of us signed both.
        Mr. Pickle. Yes.
        Senator Durbin. I think the message that we were sending to
    the Attorney General's Office was our hope that this would be
    investigated in a totally above-board, non-partisan fashion.
    And your investigation was to determine whether or not there
    was any criminal wrongdoing and whether this investigation
    should be pursued. I'd like to ask you a few questions relevant
    to that. I understand on Wednesday, March 17, you delivered a
    copy of the report to the Justice Department. First of all, I
    realize Attorney General Ashcroft has been out as he's
    recuperating from surgery and we all wish him well in that
    regard; Deputy Attorney General Jim Comey is in charge of the
    Department. Did you meet with Mr. Comey with this referral?
        Mr. Pickle. No, we made initial contact with Mr. Comey's
    office and his designee met with us, a Mr. Chris Ray.
        Senator Durbin. The Assistant Attorney for the Criminal
    Division?
        Mr. Pickle. Criminal, yes.
        Senator Durbin. Did anyone, Mr. Ray or anyone at the
    Justice Department, tell you what they intended to do with the
    report?
        Mr. Pickle. I believe the quote was that we intend to take
    a very thorough, professional review of this and we will
    contact the committee.
        Senator Durbin. Did they give you any timeframe within
    which they would respond to the referral?
        Mr. Pickle. No, not at all.
        Senator Durbin. Did you ask them for a response?
        Mr. Pickle. No, we did not, sir.
        Senator Durbin. Was Mr. William Ascella--I hope I'm
    pronouncing it correctly--the Department's Assistant Attorney
    General for Legislative Affairs, at the meeting as well?
        Mr. Pickle. Yes he was.
        Senator Durbin. Did you raise with him the outstanding
    issue you had with the Department of Justice Legislative
    Affairs Office which you referred to in your report footnote
    seven, and I quote, ``As to the time of this report is being
    completed, the Department of Justice still has under
    consideration investigators' request to interview the employee
    who Mr. Blank reported having contacts with.''
        Mr. Pickle. Yes, we raised that issue.
        Senator Durbin. If so, what did Mr. Ascella--I hope that's
    correct--reply?
        Mr. Pickle. I along with my counsel, Lynne Halbrooks, who
    is with me, raised that issue along with several other issues
    we thought were important but there was no comment to those.
        Senator Durbin. Based on your investigation do you feel
    that there is any danger if the investigation, complete
    investigation of this matter is not finished in a timely
    fashion?
        Mr. Pickle. I'm going to look at it as a criminal
    investigator would. I have no concerns that any evidence will
    be destroyed but of course any investigation you get into you
    want to do it in a very timely manner; memories are fresh,
    documents cannot be destroyed that may not be in possession,
    and people can still be located. So I would hope that it would
    be investigated soon if it's going to be investigated at all.
        Senator Durbin. Thank you very much, I agree with that. And
    I might also add for the record that some groups continue to
    buy newspaper advertising that attacks the Senators who had
    their files broken into instead of going after those who were
    guilty of the theft.

                          GAO COMPUTER SECURITY REVIEW

        Let me ask you also, during your investigation you came to
    realize that all of the Senate committees' systems were set up
    in essentially similar ways, with similar vulnerabilities in
    some places as those exploited in the Senate Judiciary
    Committee. On February 20, 2004, Senators Hatch and Leahy sent
    a joint letter to David Walker, Comptroller General, asking the
    GAO to perform a comprehensive control study to assess the
    sufficiency of our committee's computer security and to
    recommend policies and practices for the committee to adopt.
    Are you working with the GAO on this matter?
        Mr. Pickle. We have had only a conversation over the phone
    with them. They're starting to make inquiries now and they're
    starting to come in and begin their review but I don't know at
    what stage that is.
        Senator Durbin. Do you plan on working with the GAO in this
    study?
        Mr. Pickle. We're going to be helpful but I want to direct
    them to the committee and work with staff directors there. And
    I have to be cautious about this; I want to make sure that
    whatever we do does not jeopardize the evidence that we still
    have in custody, the servers, the hard drives and the other
    backup tapes that we seized. So it may be the GAO may take a
    step back and wait for this to be complete before they come in.
        Senator Durbin. So it's possible the GAO analysis and
    recommendations about how to make all the computers safe on
    Capitol Hill may be waiting Department of Justice action at
    your investigation.
        Mr. Pickle. It's possible but I think they would have to
    look and actually meet with the staff directors and meet with
    the systems administrators. And once they get a feel of the
    architecture and what currently exists they can probably then
    make that decision but I wouldn't want them to be premature and
    just jump in without having a good view of that land in front
    of them.
        Senator Durbin. Well, I certainly hope Department of
    Justice deals with this in a timely fashion to preserve
    evidence and to make certain that we have a good, complete
    investigation. You took it as far as you could, I understand
    that, did a fine job with the Secret Service but only
    Department of Justice can finish this investigation. Doing it
    in a timely fashion will finally bring us to a conclusion in
    that regard one way or the other and also set the stage for
    looking at other computer facilities on the Hill to make
    certain that they're not vulnerable to the same type of theft.

                          SENATE COMPUTING TECHNOLOGY

        At one of the earlier hearings I expressed concern about
    the technology----
        Mr. Pickle. Yes.
        Senator Durbin [continuing]. Available to members of the
    United States Senate. Since I share a home with two Members of
    the U.S. House of Representatives I often hear about the new
    bells and whistles that are being added to their computer
    system.
        Mr. Pickle. Yes.
        Senator Durbin. And I said outloud, and was quoted in the
    press, that I wanted to find out why the Senate was always
    behind the House and the House and Senate were always behind
    the rest of the world when it came to computer technology.
        Mr. Pickle. Yes.
        Senator Durbin. I've learned, once again, to be careful
    what you wish for because Mr. Greg Hanson of your office came
    by and absolutely snowed me in a matter of hours, an hour or
    so, briefing my staff about everything that he's done in a
    short period of time and plans to do to make sure that the
    Senate technology is the very best within the limits of our
    budget. My office receives about 50,000 e-mails every week,
    50,000 a week. And we have to find a way to sort through these
    e-mails by source and subject and generate some replies that
    are meaningful to the people who contacted us and decide which
    ones we're not going to reply to, for instance, those from
    outside my State. I'm wondering, the House, I understand, has a
    system that's being designed to generate such an automatic
    reply and sorting. Do you know if similar plans are in place
    for the Senate?
        Mr. Pickle. I was unaware of this sorting system or
    software that they have. I have talked to Mr. Hanson since his
    meeting with you and we are certainly looking at it. I think it
    can be supplied on an individual basis but we're looking at
    that now to see if that's not something we should offer
    everyone.
        Senator Durbin. One of the nightmares that Senator Campbell
    and I face is to go back to our home States and have someone
    say, I sent a letter to your office and I never got a reply.
    Or, I sent an e-mail and I never heard from you.
        Mr. Pickle. Yes.
        Senator Durbin. It's one of the most depressing things that
    can happen to an elected official. Now we have a mail system
    that is being delayed for security reasons, obviously necessary
    security reasons, and an e-mail system that is being
    overwhelmed.
        Mr. Pickle. Sure.
        Senator Durbin. And so I live and dread that going back to
    my State I'm going to run into that kind of a situation. So I
    certainly encourage you and Mr. Hanson to see if there's a
    timely way to deal with that issue.
        Mr. Pickle. We will.

                      SECURITY FOR CAPITOL VISITOR CENTER

        Senator Durbin. May I ask you one last question and that
    is, can you tell me what conversations you've been involved in,
    if any, relative to security at the new Capitol Visitor Center?
        Mr. Pickle. The conversations relative to security have
    been few and far between as it relates to the CVC. In other
    words, we're at a stage now where most of the discussions have
    to do with operational aspects of the center. Initially we did
    have a number of conversations; I know the police department
    participates in these discussions actively with the folks
    involved in coordinating this effort. Obviously security is
    paramount there; it's one of the key reasons why we have that
    center. But I believe from what I heard at a meeting last week
    that those needs are being addressed and we want to make sure
    they are addressed.
        Senator Durbin. Thank you. Thank you, Mr. Pickle, Mr.
    Chairman.
        Senator Campbell. Senator when you said 50,000 e-mails a
    week, I haven't been here as long as many of my colleagues but
    I tell you, when I first got in office just 22 years ago there
    were no e-mails. There were no cells phones, there were no
    Blackberries and those days are gone forever. I often think
    when I see some of my senior colleagues like Senator Stevens
    who's with us today, the changes he's seen in technology, what
    there was or wasn't when he got here but I guess I better not
    go there.
        I'll yield to Senator Stevens now for any questions.
        Senator Stevens. Pocahontas had just left if that tells you
    anything.
        Senator Campbell. That's been awhile.

                          LIBRARY OF CONGRESS SECURITY

        Senator Stevens. I really don't have any questions but I
    came by, Mr. Pickle, because I think Senator Bennett has
    pursued the concept of a police force for the Library of
    Congress. I happen to be Chairman of the Joint Committee on the
    Library of Congress. We still have some real misunderstandings
    about the concept of integrating the police force, Capitol
    Police Force, with the police, staff of the Library of
    Congress. And I've got a bunch of questions that I was going to
    ask but I think what I'm going to do instead is ask if you and
    Dr. Billington would meet us, members of the subcommittee,
    whoever wants to come and see if we can't work this out.
    Security of the Capitol comes first but there is, really, a
    history of the police force over there that they've had
    different duties in the past and I think we have to work some
    sort of a transition to meet their needs at the same time with
    the new complex that we've got being built in terms of the new
    facilities, the visitor facilities, and the connections that
    will lead to the Library there. I do believe we have to
    integrate the police force of Capitol Hill. I would like to
    make sure that the transition is done in a way that doesn't
    upset the current needs of the Library while at the same time
    meeting the transitional needs of the Capitol Police. I think
    that's going to be worked out in a conference with all
    concerned if you're willing to do that. I know, Mr. Chairman,
    you've been involved in that and of course it was initially
    started by Senator Bennett. We watched it but I do get comments
    from the librarian and from the Library of Congress personnel
    and it's just better if we work it out on a consensus basis and
    get some specifics about the transition and how we achieve the
    goals both of the Capitol Police and the Library. So I hope
    you'd be willing to do that sometime after Easter, just sit
    down and work it out.
        Mr. Pickle. Be happy to, sir. Thank you.
        Senator Stevens. Thank you.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senator Campbell. Thank you, Bill. There may be additional
    questions in writing from other members who are not here. Thank
    you for your appearance.
        Mr. Pickle. Thank you.
        [The following questions were not asked at the hearing, but
    were submitted to the Office for response subsequent to the
    hearing:]
             Questions Submitted by Senator Ben Nighthorse Campbell
        Question. It is our understanding that the Sergeant at Arms offers
    cellular phone/BlackBerry combination devices from both Cingular and
    Verizon; and that only the devices provided by Cingular have the
    capability to receive the emergency alerts from your office and the
    Capitol Police. Given that you offer the Verizon BlackBerry and that
    most Senate cellular accounts are on the Verizon network, what is your
    plan to enable the Verizon BlackBerrys to receive the emergency alerts?
        Answer. Although all of the major wireless carriers offer their own
    version of RIM's BlackBerry, the SAA only fully supports the original
    BlackBerry 950 and 957 devices which use the Cingular nationwide
    Mobitex ``data only'' network. This is because these are the only
    devices that provide the alert capabilities used by the Capitol Police
    and the Senate Cloakrooms.
        We are aggressively exploring a device- and carrier-agnostic
    solution that offers maximum flexibility and reduces our dependencies
    as they relate to device manufacturers and wireless network providers.
    In parallel, we have provided all carriers offering the converged
    BlackBerry devices our specific console-to-device and device-to-device
    broadcast messaging requirements that we rely upon for USCP Emergency
    Alerts and Cloakroom Vote Alerts. We have asked them to develop similar
    if not more capable solutions to meet our emergency messaging needs and
    hope that all carriers will soon be able to meet our requirements.
        We are currently testing a beta version of software that runs on
    Cingular's converged cellular phone/BlackBerry, model 7280, and
    provides the alert capabilities we currently have on the RIM BlackBerry
    models 950 and 957. We expect the final version of the software to be
    released in the April-June 2004 timeframe, at which time it will become
    the first fully supported converged cellular phone/BlackBerry device
    that receives our alerts and works with the Senate's e-mail system.
        We are also expecting to receive a beta version of the device- and
    carrier-agnostic solution by the end of May 2004. Since we have not
    seen the solution yet, we cannot say how long it will take to bring it
    into production if it meets our needs, but we are hopeful that it can
    be done by the end of the summer 2004.
        We also expect that the technology will continue toward the
    convergence of multiple functions into a single device. Although this
    is a benefit to many, you should consider the consequences of having
    all of your communications capabilities on one device that relies on a
    single communications path for all of your normal and emergency
    communications.
        Finally, to clarify an assertion in the question, we assist Members
    and their staff in ordering cellular phones or cellular phone and
    BlackBerry combination devices from whatever carrier they believe best
    meets their needs. In addition to Cingular and Verizon, we also order
    devices and service from AT&T and other cellular carriers.
        Question. In the wake of the recent ricin incident, is the Senate
    considering scanning and digitizing mail like the House of
    Representatives is doing?
        Answer. As you know, the ricin incident caused us to change our
    mail inspection, sorting, and delivery processes. Now, prior to
    delivery to Senate offices, we open, inspect and test, at offsite
    locations, all mail addressed to the Senate. These significant changes
    have made us less vulnerable to such threats in the future.
        In addition to the changes we've already made, we are investigating
    the possibility of digitizing mail and the ramifications on Senate
    operations. The House has a pilot program which has met with some
    limited success, based on low volumes of mail. As part of our always
    ongoing effort to leverage technology to improve efficiency and
    effectiveness at the Senate, we have implemented sophisticated document
    scanning and archiving capability in our Printing Graphics & Direct
    Mail (PG&DM) organization. We are currently evaluating the House
    initiative along with looking at ways to utilize the technology we have
    to address the problem of digitizing and distributing Senate mail.
        Factors to be considered:
      --The extremely high volume of Senate mail
      --The impact irradiation has on document imaging legibility
      --The sensitive nature of some of the Senate mail
      --The importance, in some cases, of preserving and delivering paper
            artifacts
      --The delay that scanning and digitizing might introduce into our
            mail processes--it takes about 3.5 minutes per letter and we
            average 32,000 first class letters every day
      --Delivery modes and media
      --The potential effect of transmitting digitized mail files across
            our network infrastructure
      --The additional cost in terms of personnel and infrastructure
            upgrades to accommodate digitizing mail
      --Procedures, processes, and locations for storing paper mail
            artifacts after digitization
      --Privacy and security issues.
        As we conduct this analysis, we will continue to explore new ways
    and new technologies to make Senate mail delivery more efficient,
    effective and secure.
        Question. Please give us an idea of the volume of message traffic
    that passes through our networks and the degree to which our website is
    visited.
    A Typical Monday
        Web Services Statistics (Webster, Senate.gov, LIS & Senate
    Newswire)--
      --Total unique visits: 99,420
      --Total data sent to the public: 26,074,442,795 bytes
        Electronic Mail--
      --Inbound: 281,795 messages
      --Outbound: 163,609 messages
      --TOTAL: 445,404 messages
        Daily Viruses Report--
      --Mail Gateway viruses found: 39,795
      --Server viruses found: 3,664
        Question. Please give us an idea of the number of support calls
    your information systems help desk and your telecommunications services
    organizations process.
    Computer Support:
        Computer trouble calls resolved annually--Approx. 18,000
        Orders and installations annually--Approx. 4,000
        Helpdesk has met or exceeded service level agreement (SLA) every
    month since May 2003 (95 percent work accomplished on time and 95
    percent of customer satisfaction ratings either ``very satisfactory''
    or ``excellent''
    Telecommunications Support (fiscal year 2003)
        Capitol Exchange calls answered--1,805,818
        Telecomm helpdesk (programming) telephones programmed--10,213
        Telecomm Coordinators--20,189 task orders accomplished
        Info Exchange--2,520,168 pages processed
        Question. Why is parking around the Capitol complex at such a
    premium?
        Answer. Nearly 400 parking spaces have been lost since the CVC
    project began. During that same period of time, Members, Offices, and
    Committees have issued or requested 445 unreserved parking permits, and
    the USCP has petitioned for another 400 unreserved permits to
    accommodate new recruits. Currently, over 2,000 unreserved permits
    exist for 1,042 unreserved parking spaces.
        Historically, Members, Offices, and Committees have been allowed to
    request unreserved parking permits as needed. Even when the CVC is
    completed, there will be less space for parking; perhaps now is a good
    time to limit the number of unreserved parking permits that each
    Member, Office, and Committee can issue as has been done with the AOC
    and the USCP.
        The USCP has exhausted its allocation and is looking for additional
    parking. A recent contract with the Fairchild Building will yield at
    least 100 spaces to the USCP, and parking lots adjacent to the
    Fairchild Building have been noted by the AOC.
        The USCP and the Parking Office are collaborating to step up
    enforcement. The AOC can help recover approximately 150 slots by
    seeking work sites off of Senate parking lots. The Parking Office is
    aggressively seeking ways to squeeze more spaces from existing lots and
    streets, including ``short stacking'' lots when demand for parking is
    high. Increased use of Metro Subsidy will help alleviate parking
    pressures as well.
        There has been discussion of building a garage on the Senate
    campus. A garage would certainly alleviate many problems and pressures
    associated with parking.
        Question. What is being done to alleviate the lengthy lines to
    enter Senate buildings?
        Answer. Several options are under evaluation by the U.S. Capitol
    Police. Those options include:
      --Designating certain entrances as ``Staff Only'' entrances between
            the hours of 7:00 a.m. to 10:00 a.m.
      --Directing visitors to locations that do not impede staff entrances.
      --Providing additional officers at the Hart Building C Street
            entrance to assist and conduct hand searches of staff bags.
      --Exploring additional X-ray machines at locations that can support
            them.
        We plan to meet with the Committee on Rules and Administration to
    discuss these options prior to any implementation.
                              CAPITOL POLICE BOARD

    STATEMENT OF W. WILSON LIVINGOOD, CHAIRMAN, CAPITOL
                POLICE BOARD
    ACCOMPANIED BY:
            HON. WILLIAM H. PICKLE, SENATE SERGEANT AT ARMS AND BOARD
                MEMBER
            HON. ALAN M. HANTMAN, ARCHITECT OF THE CAPITOL
            TERRANCE W. GAINER, CHIEF, U.S. CAPITOL POLICE

              OPENING STATEMENT OF SENATOR BEN NIGHTHORSE CAMPBELL

        Senator Campbell. We now move to panel two, the House
    Sergeant at Arms, Bill Livingood, accompanied by board members
    Bill Pickle and Architect of the Capitol Alan Hantman. And
    Chief of Police Terrance Gainer. And as with the first panel if
    you'd like to abbreviate your comments that will be fine since
    we've already read your written statement. And I understand Mr.
    Alan Hantman is also here, a member of the Police Force, too.
    Go ahead and start, Mr. Livingood.

                           LOC POLICE MERGER MEETING

        Senator Stevens. Mr. Chairman, could I just interrupt and
    ask if I may ask questions of these gentlemen? You heard my
    question to Mr. Pickle, are you willing to have such a meeting,
    Chief Gainer?
        Chief Gainer. Yes, Senator.
        Senator Stevens. Does that meet with your approval, Mr.
    Livingood?
        Mr. Livingood. Yes sir.
        Senator Stevens. Thank you very much.

                         STATEMENT OF WILSON LIVINGOOD

        Mr. Livingood. Mr. Chairman and Senator Durbin, I'm honored
    to appear before you today to discuss the United States Capitol
    Police fiscal year 2005 budget request. The Capitol Board
    members, Mr. Pickle and Mr. Hantman, are here with me and Chief
    Gainer is accompanying us today.
        With your permission I am just going to provide you with a
    short summary of my budget request remarks and provide the
    balance in my testimony for the record.
        Senator Campbell. That's fine.
        Mr. Livingood. World events and the continuing threat to
    our security here at home have driven an increased Capitol
    complex security. It is a very difficult job to maintain a
    legislative complex open to the public while at the same time
    ensuring the safety of the Congress, staff and visitors against
    increased dangers. The news media provides daily testimony of
    the terrors and political agendas of extremist groups. In
    today's environment the Capitol Police walk a very fine line
    and have a challenging mission--maintaining the tradition of
    open Government that we revere and demand while providing the
    maximum degree of safety and security. To accomplish this
    mission the Chief and the Department have developed an
    excellent strategic plan, one designed to meet not only the
    current needs but the future needs of the Congress.
        The budget before you today is a funding requirement based
    on this strategic plan. We ask your support and approval in
    carrying out this strategic plan which strengthens our
    vigilance, resilience by augmenting abilities in assessing
    threats, preventing unlawful acts, responding to incidents and
    supporting the general operations of the Capitol Police.

                               PREPARED STATEMENT

        In closing, I would like to thank the Committee for the
    ongoing support of the men and women of the Capitol Police and
    their continued and diligent efforts to develop a better
    security plan and operations, response forces and law
    enforcement capabilities. I'd also like to extend a personal
    word of thanks to the men and women of the Capitol Police and
    the entire Board joins me in this, in that every day they
    provide the highest possible degree of professionalism,
    commitment and service to the United States Congress. And I am
    proud to represent them today as is the rest of the Board
    before you. Thank you.
        [The statement follows:]
                     Prepared Statement of Wilson Livingood
        Mr. Chairman and Members of the Subcommittee, I am honored to
    appear before you today to discuss the United States Capitol Police
    fiscal year 2005 budget request. Capitol Police Board members, William
    Pickle, Senate Sergeant at Arms, Alan Hantman, Architect of the
    Capitol, and Terrance Gainer, Chief of Police accompany me today.
        Mr. Chairman, I would first like to thank the Committee for their
    ongoing support of the men and women of the Capitol Police and their
    continued and diligent efforts to develop better security operations,
    response forces, and law enforcement capabilities.
        World events and security threats here at home have driven
    increased Capitol complex security. It is a difficult job to maintain a
    legislative complex open to the public, while at the same time ensuring
    the safety of the Congress, staff, and visitors against increased
    dangers. The news media provides daily testimony of the terrors and
    political agendas of extremist groups. In today's environment, the
    Capitol Police walk a fine line--maintaining the tradition of open
    government that we revere and demand, while providing the maximum
    degree of safety and security. At times in the past year, the national
    threat level has been elevated in response to the potential for
    domestic terrorist activity. We have mirrored this response with our
    own Capitol-specific threat levels. Indeed, the Capitol--much like the
    White House--is both a working building and a monument, and therefore
    currently remains at an elevated threat level. It is clear from our
    history that the Capitol is a tempting target for terrorists and those
    who seek to disrupt the legislative process or strike a symbolic blow
    against the United States. We also know that terrorists choose targets
    based on certain criteria, such as symbolism, mass casualties, and high
    likelihood of success. It is our responsibility to take every prudent
    precaution that we can to remove the terrorists' likelihood of success
    with regard to the Capitol, the Senate and House office buildings, and
    for those who work and visit within the Capitol complex.
        The Chief and his staff have been very diligent this past year in
    appraising the effectiveness of police operations. They have developed
    an excellent strategic plan that is designed to meet the current and
    future needs of Congress. The budget before you today is the funding
    requirement based on this Strategic Plan. We ask your support and
    approval in carrying out this plan, which strengthens our vigilance and
    resilience by augmenting abilities in assessing threats, providing
    effective security, preventing unlawful acts, responding to incidents,
    and supporting the general operations of the Capitol Police. We cannot
    undo an incident like a suicide or truck bombing as seen abroad, and
    should act responsibly to prevent these incidents. Related to the issue
    of sufficient force strength and sufficient police facilities, recent
    Capitol Police growth and requested staffing levels have and will
    strain facility requirements; we ask for your continued support in
    solving these issues.
        In prior appropriations, this Committee funded, and the Capitol
    Police are putting into action, a Hazardous Materials Response Team.
    Most recently, this forethought and action paid off. I would like to
    publicly commend the Chief and his dedicated staff for a stellar job in
    handling the ricin incident. The Capitol Police trained, prepared, and
    were ready for this type of incident. Being prepared requires gathering
    intelligence, training, and adapting operations commensurate with
    needs. For example, the discovery of ricin in Senate mail has prompted
    a complete review of all mail protocols for both the Senate and the
    House. We are constantly reviewing and enhancing existing emergency
    plans, protocols and procedures. Regarding preparations, there is a
    renewed focus on training. In the past year, Congressional staffs have
    been introduced to the protocols relating to evacuation and shelter in
    place procedures, as well continued practice with the escape hoods.
        The Capitol Police are to be applauded for their efforts since we
    last met. Preparing for incidents and preempting threats has been a
    crucial focus under the Chief's leadership, and so the Department is
    constantly assessing its abilities and strengthening its skills. Recent
    Capitol Police accomplishments include: an in depth analysis of
    staffing, the development of a new strategic plan, core infrastructure
    systems replacement, an increase in employee training, better morale,
    and continued implementation of hazardous materials response
    capabilities. The Department's infrastructure is being shored up with
    an inside-out-approach that is challenging the whole of the
    organization to perform at a higher level.
        This transformation effort, which includes additional operational
    and administrative staffing resources and new security and information
    systems, is a thoughtful multi-year undertaking extending into the 2005
    fiscal year and relies on the budget request before you today. This
    budget ties the planning and transformational efforts of the Department
    to the requested means necessary to support this effort. Every line
    item in this budget is purpose-built to support one of the four major
    goals of the Department and the supporting strategic objectives. This
    is a tightly engineered budget, formulated with the best efforts of
    many highly trained men and women dedicated to the mission of the
    Department to protect Congress, its Members, staff, visitors and, in
    whole, the Legislative process from harm or interruption.
        Mr. Chairman, on behalf of the Capitol Police Board, I would like
    to thank you for this opportunity to appear before you today, and for
    your consideration of this budget request. Every day, the men and women
    of the U.S. Capitol Police face a huge challenge: to provide the
    maximum degree of safety and security while allowing the Capitol,
    Senate and House Office Buildings to remain open and accessible to the
    general public. And every day they succeed. I am honored to be
    associated with the men and women of the U.S. Capitol Police.
        Chief Gainer will address more specific operations and plans for
    the coming fiscal year.

        Senator Campbell. Thank you, Mr. Livingood. Chief Gainer.

                     STATEMENT OF CHIEF TERRANCE W. GAINER

        Chief Gainer. Thank you Senator, and I too will submit my
    testimony for the record and summarize it.
        I'd like to put a little context to our budget request and
    reiterate what the chairman just mentioned, that the fight
    against terrorism led by the United States and its coalition
    partners continues. We know through speeches, tapes and other
    terrorist propaganda the leadership of Al Queda has stated
    their intent to strike another blow on America. This rhetoric
    and their actions has given some insight into potential
    targets. The United States Capitol and all it stands for is
    clearly one of those targets.
        It is human nature to be optimistic but recent events have
    reinforced what intelligence has discovered over the years,
    that terrorist organizations have the means and methods to
    strike whenever and wherever. Intelligence and security experts
    both inside and outside government have stated that the United
    States Capitol remains a primary target. It is not really a
    question of if but a question of when we could expect a strike.
    What is known is that vehicle bombs, suicide bombers and
    improvised explosive devices are the weapons of choice and easy
    to execute.
        We have not limited our preventive measures to these
    traditional threats. As you know, 9/11 introduced a new method
    and means of carrying out an attack, since then we have
    increased our intelligence capability and the Department has
    personnel detailed to other Federal agencies to further
    facilitate that capability. We have people at Homeland
    Security, FBI, State Department, CIA, as well as some local
    departments. We have undertaken a number of projects to
    continue emergency outreach and notification. While many of you
    know of the emergency annunciators you may not know that we
    have over 3,600 of these units deployed through the entire
    Capitol system. In addition, we have developed a project to
    deploy a complex-wide public address system. This project will
    provide the critical means to send out emergency notifications
    to all public spaces, evacuation and assembly areas, parking
    garages and other areas. We expect this project to be completed
    in December of this year; we're on target to reach that
    objective.
        We are, however, vulnerable around this Capitol. As the
    committee is aware, there have been a number of studies done
    over the years; they have all commented on our openness to the
    largest vulnerability, in particular there have been five
    studies by various security experts that have recommended the
    installation of a fence around the Capitol square. Even a
    recent staffing analysis conducted by the General Accounting
    Office in February 2004, included the installation of a fence,
    as a recommended option. This latest recommendation goes a step
    further and recommends a fence around all the office buildings,
    and I quote from that report. ``An aesthetically pleasing
    perimeter security fence could be constructed around the
    Capitol Building grounds. This would markedly increase security
    within and around the Capitol Building, Members, staff and
    visitors.'' The recommendation of a fence has been discussed
    for many years and was originally proposed in a 1985 document
    called the ``Whip's Plan''. While the decision on the fence
    will not be decided here, the impact from the lack of it is
    felt every day and is shown in the numbers of required
    personnel in our budget. We are constantly required to increase
    the use of manpower and technology to keep this legislative
    branch safe and secure while ensuring continuous operations
    during these evolving threats, as well as maintaining an open
    and free Capitol.
        It is the men and women of this Department who selflessly
    provide the first line of defense to protect this institution.
    Most Federal agencies have layers of defense to prevent
    attacks. The success of a terrorist attack on one of our
    buildings, once initiated, will be deterred by that officer
    standing at the entrance of the building. While the use of
    technology aids in detection and deterrence, it was a police
    officer that prevented Russell Weston from continuing through
    the Capitol. And it was police officers who first responded to
    both the anthrax and ricin.
        Accordingly, our budget request of $291.6 million
    represents a reasonable, necessary and balanced plan to
    directly assess the threats of today and proposes the use of
    resources to ensure the protection of the Congress, its
    Members, staff and visitors in the process. The implementation
    of our strategic plan, which this budget supports, is a prudent
    plan to help ensure the safety of our Capitol. The budget
    request represents a 33 percent increase over the fiscal year
    2004 net appropriation. It's a lot. However, when the $12.7
    million from the fiscal year 2003 supplemental, which as
    directed by the committees was used to support fiscal year 2004
    operational needs is taken into consideration, the requested
    increase is $59.1 million or 25 percent and is still
    significant.
        This increase provides $12.7 million for 6 months' funding
    for 213 sworn and 155 civilian additional positions. In the
    personnel area $5.5 million is requested for a sworn pay scale
    adjustment; $3.3 million for a 6-month annualization of the 75
    civilian positions provided in fiscal year 2004 and $12.2
    million for the cost of living adjustments, rate increases and
    health benefits.
        Other significant increases include $3.1 million for the
    Inauguration; $8.1 million for the replacement of escape hoods;
    $3 million for a new accounting system; $2.7 million for
    security at the new legislative branch alternate computer
    facility and $1.8 million for wireless data interoperability
    infrastructure. But I need to point out this is not just a wish
    list of our managers. We have a zero-base budget process.
    Originally, the general expense requests totaled over $100
    million, which were reduced by some 40 percent to the $59.9
    million included in this budget.
        As with any organization we realize there is always room
    for improvement. We will continue to strive to strengthen and
    augment our prevention and response capabilities, to review the
    current environment, to improve the coordination with our
    congressional community, to emphasize training of all our
    employees and to have substantially filled all authorized
    civilian positions by the end of this fiscal year, and to make
    progress with our business systems' modernizations.
        And finally, although facilities are the responsibilities
    of the Architect of the Capitol they certainly are critical to
    our operations. In February 2004 the Architect of the Capitol
    leased approximately 100,000 square feet of space at 499 South
    Capitol Street SE, the Fairchild Building, as an interim space
    solution. This facility will go a long way to alleviate our
    space constraints at our headquarters building when we move in
    there.
        As the Chief of the Capitol Police I take great pride in
    the many years of service that this Department has provided to
    the Congress. Building on that legacy, we at the Capitol Police
    look forward to continuing to safeguard the Congress, its staff
    and visitors. And we look forward to working with the Congress
    and this committee to see what we can do with our budget.

                               PREPARED STATEMENT

        And finally, Senator, I might say on behalf of the men and
    women, as we wind toward the conclusion of your particular
    career, thank you for your support of the men and women of the
    Capitol Police. Your kindness to our officers and the people
    who support them is well recognized. Your help in getting our
    Harleys is lauded by all those riders and now the horses that
    recently visited our Capitol and will be out galloping come
    this May, we definitely owe a debt of gratitude to you. Thank
    you.
        [The statement follows:]
                    Prepared Statement of Terrance W. Gainer
        Mr. Chairman and Members of the Subcommittee, I am honored to
    appear before you today to discuss the United States Capitol Police
    fiscal year 2005 budget request.
        I would like to thank the Committee for their continued support of
    the Capitol Police and our efforts to provide world-class security and
    law enforcement services to the Congress. As the foremost symbol of
    American representative democracy, the Congress, its Members,
    employees, visitors, as well as public buildings and operations are a
    highly visible target for individuals and organizations intent on
    causing harm to the United States and disrupting the legislative
    operations of our government. We are the first line of defense and we
    take our job very seriously.
        Expansion, as well as consistently fine tuning how we currently
    operate, is imperative to ensuring that we continue to provide the
    safest and most secure environment to enable Congress to fulfill its
    Constitutional responsibilities, and to protect those who work and
    visit the Capitol complex. We face a daunting task, and a high
    workload.
        During fiscal year 2003, the Uniformed Services Bureau greeted and
    screened over 7.4 million staff and visitors, the K-9 unit conducted
    more than 40,000 explosive detection sweeps, the offsite delivery
    center conducted 19,081 vehicle and cargo inspections, the Construction
    Security Division conducted 85,870 vehicle inspections in calendar year
    2003, we made 553 misdemeanor and felony arrests and 982 traffic
    arrests, 87 weapons and contraband items were confiscated, and the
    Hazardous Devices section conducted over 2,000 bomb searches and
    responded to over 430 suspicious package calls. Our specialized units
    also responded to the recent Ricin incident. The Department used our
    Hazardous Incident Response Division teams and our recently specially
    trained officers for the initial response. This incident quickly grew
    to include numerous federal and military agencies involved in the
    resolution. The Department's incident management team seamlessly joined
    our federal partners to successfully manage this biological threat. Our
    capabilities in this area have greatly improved since the 2001 Anthrax
    attack.
        The fight against terrorism led by the United States and its
    coalition partners continues. Recent events in Europe, Russia,
    Afghanistan, Iraq, Israel and specifically the Madrid bombings
    illustrate that the global war on terrorism has not diminished. As the
    leader of this endeavor, the United States is the number one target of
    al-Qa'ida, its surrogates, and other Islamic radicals. In speeches,
    tapes and other terrorist propaganda, the leadership of al-Qa'ida has
    stated their intent to strike another blow on our homeland. This
    rhetoric and their actions, have given some insight into potential
    targets. The United States Capitol and all it stands for, is clearly
    one of those targets.
        It is human nature to be optimistic, but recent events have
    reinforced what intelligence information has told us for years, that
    terrorist organizations have the means and the methods to strike
    whenever and wherever. Intelligence and Security experts both inside
    and outside government have stated the U.S. Capitol remains a primary
    target. It is really not a question of if, but when the United States
    Capitol Police will again be called to respond to another terrorist
    attack. What is known is that vehicle bombs, homicide bombers, and
    improvised explosive devices are the weapons of choice and easy to
    execute. The Department continues to take unprecedented steps to
    counter these threats and is considered a leader in many areas among
    federal and private institutions.
        For example, we recently developed and distributed a comprehensive
    procedure for officers responding to a homicide bomber. One of the
    first in the nation to address this threat, we have developed with
    support from this Committee, a design for a comprehensive Truck
    Interdiction Program. This project will use the latest, leading edge
    technology to detect and interdict a threat before it reaches our
    doorstep. We have deployed the latest in explosive detection equipment
    at all our buildings and have increased the number of our K-9 explosive
    teams.
        But we have not limited our preventive measures to just traditional
    threats. As you well know, 9/11 introduced a new method and means of
    carrying out an attack. We have increased out Intelligence capability
    and the Department has personnel detailed to other federal agencies to
    further enhance that capability. The Capitol Police has personnel
    working as liaisons at major operations centers and have partnerships
    with the Department of Homeland Security, FBI, and others. Because of
    all these enhancements, the Capitol Police is able to respond to
    potential threats in a real-time manner.
        But we have not solely focused our notification efforts internally.
    We have taken a number of steps to provide information to the
    Congressional Community. The recent Ricin incident illustrated the
    benefit of having a fully functioning Capitol Police Command Center.
    The newly upgraded Center provided operational workspace for the
    Capitol Police Incident Command, as well as response elements from the
    Executive Branch, the Senate, the House, the Architect of the Capitol,
    the Sergeant at Arms Offices, the Office of the Attending Physician and
    many others. Those that remember our capabilities after 9/11 and the
    Anthrax attack saw a drastic change in our capabilities, which were
    fully used during this incident.
        We have undertaken a number of projects to continue emergency
    outreach and notification. While many of you now know of the emergency
    annunciators, you may not know that there are over 3,600 of these units
    deployed and the entire system is maintained and operated by the United
    States Capitol Police. In addition, we developed a project to deploy a
    complex wide Public Address System. This project will provide the
    critical means to send out emergency notifications to all public
    spaces, evacuation assembly areas, parking garages and other areas. We
    expect that this project will be completed by December 2004. We are on
    target to meet this objective.
        As the Committee is aware, there have been a number of studies done
    over the years. They all have all commented that our openness is the
    largest vulnerability. In particular, there have been five studies by
    various security experts that have recommended the installation of a
    fence around Capitol Square. Even a recent staffing analysis, conducted
    by the General Accounting Office in February 2004 included the
    recommendation of the installation of a fence. This latest
    recommendation goes a step further and recommends a fence around the
    office buildings as well. And I quote ``An aesthetically pleasing
    perimeter security fence could be constructed around the Capitol
    Building grounds. This would markedly increase security within and
    around the Capitol Building Members, staff, and visitors.''
        The recommendation of the fence has been discussed for many years
    and was originally proposed in a 1985 document called the Whip's Plan.
    While the decision of the fence will not be decided here, the impact
    from the lack of it is felt everyday and is shown in the numbers of
    required personnel and our budget. We are constantly required to
    increase the use of manpower and technology to keep the Legislative
    Branch, safe, secure, and while ensuring continuous operations during
    these evolving threats, as well as maintaining an open and free
    Capitol.
        It is the men and women of this Police Department who selflessly
    provide the first line of defense to protect this institution. Most
    federal agencies have layers of defense to prevent attacks. The success
    of a terrorist attack at one of our buildings, once initiated, will be
    determined by that officer standing at the entrance of the building.
    While the use of technology aids in detection and deterrence, it was a
    police officer that prevented Russell Weston from continuing through
    the Capitol; and it was police officers that first responded to both
    the Anthrax and Ricin attacks.
        With any organization, we can and need to make improvements, and we
    actively engage in self-assessments and critical reviews at the
    conclusion of each project and incident to determine what went right
    and what can be improved and to incorporate those lessons learned into
    the fabric of our operations. This mechanism allows us to gauge our
    success in a positive manner. For example, we are implementing a
    process of self-testing where random, unannounced contraband will be
    introduced to test our detection and response capabilities. This self-
    assessment program, and the proper use of results, will strengthen our
    portals and provide a safer environment for all who work and visit the
    Capitol complex.
        We work very closely with the Sergeants at Arms and with leadership
    of both the House and the Senate to ensure that the security of the
    Congress is appropriately managed. The ability of the U.S. Congress to
    meet its constitutional responsibilities is intertwined with the
    ability of the Capitol Police to meets its mission. The Capitol Police
    is ready and willing to meet the challenge this changing environment
    poses to the structure of our operations, and we recognize continuous
    improvement and flexibility are key to maintaining our professional
    edge. The USCP is a stronger and better-organized agency than it was
    the last time we met. We have completed a new five-year strategic plan,
    a performance plan, an annual report and have completed an in-house
    staffing analysis to provide a road map for improvements and practical
    strategies for achievement of our mission and goals. The staffing
    analysis provides a basis for discussion of our manpower needs and
    continues to be reviewed by the General Accounting Office (GAO).
    Accordingly, we used the staffing analysis as the basis of our fiscal
    year 2005 personnel request. However, the GAO review and our ability to
    stand up to their scrutiny will provide this Committee, and our other
    oversight committees, with information with which to make decisions. I
    welcome the review and input we are receiving related to this effort.
        We welcome the input of our stakeholders and appreciate the input
    of the GAO. We worked closely with the GAO in developing our new
    strategic plan. The mission, vision, values, and goals established in
    the strategic plan serves as a management tool to guide the USCP as we
    carry out our mission each day and continue preparing for the future.
    We have linked both our staffing request and all of our general expense
    items to the strategic plan. In addition, performance appraisals for 30
    of our top managers are directly tied to the strategic plan that has
    become a working document in the Department as Lieutenants and above
    and civilian equivalents recently underwent training to ensure an
    understanding of the function and effect of the strategic plan.
        Our budget request of $291.6 million represents a reasonable,
    necessary and balanced plan to directly address the threats of today
    and proposes the use of resources to ensure the protection of Congress,
    its Members, staff, visitors, and the legislative process into the
    future. The implementation of the USCP strategic plan, which this
    budget supports, is a prudent plan to help ensure the safety of the
    Capitol community and the uninterrupted continuation of Congressional
    operations.
        The budget request of $291.6 million represents a 33 percent
    increase over the fiscal year 2004 net appropriation. However, when the
    $12.7 million from the fiscal year 2003 supplemental, which as directed
    by the Committees was used to support fiscal year 2004 operational
    needs, is taken into consideration the requested increase is $59.1
    million or 25 percent. This increase provides $12.7 million for six
    months' funding for 213 sworn and 155 civilian additional positions. In
    the personnel area, $5.5 million is requested for a sworn pay scale
    adjustment, $3.3 million for the six-month annualization of the 75
    civilian positions provided in fiscal year 2004, and $12.2 million for
    the COLA adjustments, and within grade, and health benefit increases.
    Other significant increases include $3.1 million for the Inauguration,
    $8.1 million for the replacement of escape hoods, $3 million for a new
    accounting system, $2.7 million for security at the new Legislative
    Branch alternate computer facility, and $1.8 for wireless data
    interoperability infrastructure.
        Mr. Chairman, I want you to know that we are aware of the funding
    constraints that this Committee may face. In that light, we have
    developed a detailed prioritization of the entire budget request. We
    will, of course, work with the Committee to meet any funding challenges
    the Committee faces and to assure that the most critical resources we
    require are provided to ensure the protection of the Congress and the
    legislative processes. I should point out that our budget request is
    not a ``wish list'' of our managers. We internally reviewed general
    expense requests that totaled over $100.4 million and reduced that
    amount by $40.5 million to the $59.9 million included in the fiscal
    year 2005 budget request.
        As with any organization, we realize there is always room for
    improvement. We will continue to strive to strengthen and augment both
    our prevention and response capabilities. We continue to review the
    current environment, our policies and practices, and the resources and
    tools available to the USCP to ensure that the level of Congressional
    protection is the best it can be. We continue to improve the
    coordination within our Congressional community and with other law
    enforcement entities. We are continuing to emphasize training of all of
    our employees. In fiscal year 2003, USCP employees participated in over
    136,000 hours of training.
        Training continues to be integral to the U.S. Capitol Police. This
    past January marked the beginning of our new Diversity Training
    Program. All Department employees will receive 8 hours of training
    designed by specialists in Diversity issues. The feedback on this
    training has been overwhelmingly positive.
        On that note, I would like to report on the Department's effort to
    recruit under-represented groups. In fiscal year 2004, the Office of
    Human Resources initiated a targeted recruiting campaign that focuses
    on recruiting activities in under-represented groups, while maintaining
    our posture in the female and African-American arenas. These activities
    include job fairs, educational institutions, professional
    organizations, and publications that will result in an increase in our
    targeted candidate pools. OHR has received input from several
    congressional offices/groups in this endeavor.
        I would like to point out that per Department of Justice
    statistics, in June 2002, the USCP had the second highest percentage of
    black police officers of all federal law enforcement. We recently
    promoted approximately 40 supervisors to the rank of sergeant and
    lieutenant. This group of supervisors reflects a very diverse group of
    individuals who will lead the Department into the future.
        We continue to make progress on our administrative and support
    side. We got off to a slow start on hiring the additional civilian
    staff that has been recently provided. To get this back on track, a new
    Human Resources director was hired in August 2003. Since that time, we
    have made a concerted effort to assess existing staff competencies and
    reposition them accordingly as well as hire experienced and seasoned
    individuals into key leadership positions. We have also procured
    significant contract support to ``jump-start'' work in functional areas
    identified by GAO as requiring improvement such as policy development,
    workforce planning, performance management, and time and attendance
    systems. In order to ensure that we keep our improvement efforts on
    track, we have linked key HR activities to the agency's strategic plan
    and developed corresponding performance measures.
        We are committed to having substantially filled all authorized
    civilian positions by September 30, 2004. We are developing an internal
    Investment Review Board (IRB) process to review and prioritize major
    resource requirements. In our Information Technology area, we continue
    to make progress with our business systems modernization. We are in the
    process of hiring an Information Security Officer and have contracted
    for an IT Security Assessment to ensure the appropriate security of our
    systems.
        Although facilities are the responsibility of the Architect of the
    Capitol (AOC), they are critical to our operations. In February 2004,
    the AOC leased approximately 100,000 square feet of space at 499 South
    Capitol Street S.E. as an interim space solution. This facility will go
    a long way to alleviate space constraints at our Headquarters building.
    Most of our administrative functions and the Capitol and House
    Divisions will be housed in the new facility. I would like to thank the
    Architect for his continued support, and go on record that I fully
    support the funding he has included in his budget for the acquisition
    of a new off-site delivery facility and for the maintenance of our
    existing facilities. Again, we will work with the Committee and the AOC
    on what our most urgent priorities are, and what can realistically be
    funded within the limited resources available to the Committee.
        Whether it is effective communications, effective incident
    response, effective staffing strengths, or simply effective operations,
    we value being the best. The men and women of the Capitol Police are
    talented, motivated, and engaged professionals who take great heart in
    protecting this Congress.
        As Chief of the Capitol Police I take great pride in the many years
    of service this Department has provided to the Congress. Building on
    that legacy, we at the USCP look forward to continuing to safeguard the
    Congress, staff, and visitors to the Capitol complex during these
    challenging times. And we look forward to working with the Congress and
    particularly this Committee.
        I thank you for your time and am ready to address any questions you
    may have.

                                 SECURITY FENCE

        Senator Campbell. Thank you, Chief. I'm just leaving here,
    I'm not finishing a career. I'm going to climb a few mountains
    somewhere else. I've enjoyed working you, the Capitol Police
    and Bill with your Department, too. I look forward to coming
    back someday though and hope there's somebody that's going to
    really take a particular personal interest in the Capitol
    Police as it has been mine. Maybe you have to have been a
    policeman or a sheriff's deputy to have that kind of an
    interest. I don't know, but it was right when I first got here
    I wanted to make that one of my priorities and finally I was in
    a position where I could help a little bit.
        Let me ask you a few questions, here. First of all, you
    mentioned this fence. I tell you, I think most Americans would
    just rebel at the thought of their Capitol being fenced.
    There's got to be, in this high-tech way we operate now,
    methods of doing things without a big ugly fence around this
    place. I know that in some cases there are types of bushes and
    plants and things that can be planted that are just almost
    impregnable. I mean, you almost can't get through them. My wife
    has rose bushes around our house and if we don't trim them back
    every year you can't even get through the front door of our
    house, for obvious reasons; you just cut yourself to ribbons
    with those thorns. So I hope whoever's making the decisions on
    that thinks of some more aesthetically pleasing way of
    surrounding this place rather than a wall or a fence. I think
    that really flies in the face of what Americans want in their
    Capitol. You know the openness that we've always expected of
    our Capitol sends such a wonderful message to the world, we
    have to find that balance, between security and not looking
    like we're in a siege or something. And I know that there are
    brighter minds than mine working on that or will be working on
    that but I hope they think about that.

                                 BUDGET FREEZE

        We've been asking all the agencies and you heard me ask the
    one that was on the table before you about what happens if we
    cannot provide a lot of the money that they're asking for and
    your significant increase includes 358 additional staff. If we
    cannot reach that and we have to freeze your budget at last
    year's level, do you have your budget prioritized to the
    absolute must-haves and the things that could slide for a year
    and things of that nature?
        Chief Gainer. Senator, we sure do but to freeze at the
    number last year would dramatically require the reduction in
    force of sworn personnel.

                                 OVERTIME HOURS

        Senator Campbell. What are the shifts that the officers are
    working now? During the big anthrax scare and some other times
    they were working literally every day and 12-hour days and
    longer. What's the normal shifts they're putting in now?
        Chief Gainer. As a rule they're on an 8-hour schedule. But
    I also should say a large portion of the Department probably
    works another 8-hour day, one of their days off. So almost
    everyone is working some amount of overtime and fortunately
    they volunteer for it, as a rule.
        Senator Campbell. You manage to staff enough just with
    volunteers, too? Have you had to force any officers to work the
    days off?
        Chief Gainer. On occasion, Senator, there are probably some
    unhappy families.

                             STAFFING JUSTIFICATION

        Senator Campbell. You're requesting a total of 2,361 staff
    for fiscal year 2005, consistent with your staffing analysis
    put together last year. At the request of Congress the General
    Accounting Office has contracted for an analysis of the Capitol
    Police staffing plans. That contractor in its February report
    indicated that there was insufficient justification, such as a
    shortage of workload data, for roughly 300 new positions, of
    which 186 would be in the Uniformed Service Bureau. What is
    your reaction to that analysis?
        Chief Gainer. Well, we worked very closely with the GAO and
    their contractor, SAIC, who did that report for them. And I
    think overall it's a mixed reaction. They used a red, yellow,
    green light system. There were quite a few of the positions
    where they felt that we provided sufficient justification and
    information for them to make a decision, and then there were
    relatively few red lights, to use their parlance, where they
    felt there was not the justification or sufficient support. In
    the area of their yellow lights there were quite a few; we
    supplied them additional information, we're responding to their
    report in writing and we're working with the Board to further
    clarify what justification is needed.

               HIRING OF FISCAL YEAR 2004 NEW CIVILIAN EMPLOYEES

        Senator Campbell. We provided 75 additional civilian
    employees last year. What's the status of those employees that
    we did provide for? They've all been hired?
        Chief Gainer. They have not all been hired. But what we did
    do, about 6 months ago, was promote a new Director of Human
    Resources and she has retooled Human Resources substantially.
    Human Resources, along with our finance folks, have identified
    the bottlenecks to that hiring process and we believe we are on
    track to have all the hirings done for 2004 and also from
    carryover from 2003 by the end of the fiscal year.

                            FAIRCHILD BUILDING LEASE

        Senator Campbell. A lease was recently signed by the
    Architect of the Capitol for several floors of the Fairchild
    Building for the Capitol Police. Does that accommodate your
    space needs?
        Chief Gainer. Not totally. Right now we occupy probably
    just under 200,000 square feet and that is largely
    insufficient. The master plan called for some 500,000 square
    feet. What the Fairchild Building provides us is about 101,000
    square feet and it will go a long way to easing the pressure in
    our headquarters building, the Senate and House office
    buildings as well as the Capitol. It may very well free up some
    space in the Capitol Visitor Center. But I think the bottom
    line, Senator, I should point out, we see that Fairchild
    100,000 square feet as very, very temporary and not a long-term
    solution to the needs of the Department.

                                  FIRING RANGE

        Senator Campbell. I see. And you requested funding through
    the Architect for a firing range. You do the training now over
    there way down in the bowels of the Rayburn Building somewhere.
        Chief Gainer. We do.
        Senator Campbell. I understand. Well, if we are unable to
    provide those funds is that where they'll continue training,
    where they are now?
        Chief Gainer. Well, that will be part of it but that again
    is not enough. The Congress was very good, especially then to
    the Department of the Treasury and now Homeland Security, in
    securing a large facility at Cheltenham, Maryland, where a
    large firing facility was designed and built. Unfortunately,
    when that was designed and conceived only some 20 agencies were
    going to use it; with the recomposition of Homeland Security 70
    plus agencies are now going to use it. So we're all kind of
    scrambling to see what piece of that we can get. We have met
    with the Board and Senate staff, Homeland Security personnel to
    see if we can work out a solution where we would have some
    rights of priority at that facility. If that works out then the
    absolute need for a range on-base would not be necessary.

                               LOC POLICE MERGER

        Senator Campbell. I see. I believe, like Senator Stevens,
    that we're at an impasse between the Library of Congress
    objectives and the Capitol Police too, and I'm sorry you
    haven't been able to get that all together and in sync. But I
    just wanted to identify myself, associate myself with his
    comments that I look forward to trying to work this difference
    of opinion out about how we merge one department with the other
    one. So I just wanted to tell you that.
        Chief Gainer. Thank you.

                               MOUNTED HORSE UNIT

        Senator Campbell. You mentioned the mounted unit. Are they
    are on the grounds now?
        Chief Gainer. Actually, they paid a visit to us just last
    week and I have to tell you they were mobbed by people wanting
    to get pictures with them. They're still in their training.
        Senator Campbell. I'd like to say ``I told you so.''
        Chief Gainer. Yes sir. They graduate April 16 and we hope
    maybe that your schedule will permit you to be part of that. We
    have eight officers and two sergeants in that school; we've
    lost a couple through riding mishaps and they decided not to
    continue riding. We have the equipment, we're in the midst of
    buying the horses.
        Senator Campbell. Did somebody tell them they're supposed
    to get back on when they fall off?
        Chief Gainer. Actually, they did right away but the next
    day they decided not to get back on.
        Senator Campbell. Oh, they shouldn't have been there in the
    first place if they decided not to get back on. And they're
    stabled with the Park Service horses down on the Mall?
        Chief Gainer. That's what we're working on.
        Senator Campbell. That's not where they are now, however?
        Chief Gainer. Right now, Senator, they're still at the Rock
    Creek training stable.
        Senator Campbell. I see.
        Chief Gainer. We're working out the agreement to determine
    at which stable they will be.
        Senator Campbell. So they're just training them and they
    brought them down?
        Chief Gainer. Right. We do have three vehicles and three
    trailers. But one of the concerns is with the World War II
    monument opening up and whether the Park Police will retain
    that stable on the Mall is being discussed.
        Senator Campbell. Is the Park Service Mounted Unit doing
    some of the training of these officers?
        Chief Gainer. They're conducting the training, it's all
    under their direction and their authority, their expertise.

                                 TRAINING HOURS

        Senator Campbell. This is a broader training question--your
    in-service training is about 80 hours a year, is that correct?
        Chief Gainer. It is. And in fact, we really probably exceed
    that now with all the specialized training. Last year we
    collectively trained for about 200,000 hours.
        Senator Campbell. How much training do those mounted
    patrolmen go through?
        Chief Gainer. That's a 10-week program.
        Senator Campbell. Ten weeks. Okay, thanks. Senator Durbin.

                            ESCAPE HOOD REPLACEMENT

        Senator Durbin. Chief Gainer, can you or somebody on the
    Board explain escape hood replacement costs of $8 million.
        Chief Gainer. Yes. When the hoods were purchased they
    appeared to have a 4-year shelf life. We're hoping that's still
    the case. But what we've seen with the escape hoods is that
    they're very difficult to put on; and it is impossible to
    communicate with them on. So, we and others, have been working
    with the authorities to see if there's a better hood to be made
    available. The hope is that there would be; the National
    Certification Group is looking at different hoods. We hope that
    if a new hood becomes available it will be easier for adults
    and children to wear. If that's the case, we've made the
    preliminary decision rather than replace the current hoods,
    which have a 4-year life, or 3 years left now, rather than
    doing that piecemeal and give someone an older, less viable
    escape hood we would convert all to new escape hoods. If
    there's not a new one discovered then we probably only need to
    replace a quarter of those and we would not need the full $8.1
    million.
        Senator Durbin. What was the original cost of the escape
    hoods?
        Chief Gainer. The total cost? Excuse me. We purchased
    45,000.
        Chief Gainer. We purchased 45,000 for about $4.7 million.
    But the price of them has gone up.
        Senator Durbin. Obviously.
        Chief Gainer. Yes sir. We're anticipating getting higher
    quality hoods.
        Senator Durbin. What's to tell us that 1 year after we
    purchase these we've decided we shouldn't have purchased them
    and $4.7 million may have been wasted? What have we learned?
        Chief Gainer. Well, that was the best product at the time.
    And it was essential, I think, given the facts that everybody
    was dealing with that we purchase something. Actually, even if
    there was a better hood, in theory you could use these for the
    next 4 years if one trains on them. Most of the staffs of both
    the House and the Senate, have been excellent on training with
    the existing hoods. Some others have been a little bit more
    reticent to come to the training.
        Senator Durbin. I resemble that remark.
        Chief Gainer. But it is difficult to put on and impossible
    to communicate with it on.
        Senator Durbin. That may be a blessing with some elected
    officials. Let me--well, it's a concern. I don't know how I
    explain this at home, that we bought 45,000 for $4 million plus
    and 1 year later, even though they have 3 years of life left in
    them we've decided to junk them and to spend two times as much
    to replace them. If technology is moving that fast to justify
    it I suppose that's the argument but it appears that a decision
    was made and it's being countermanded within 1 year and I'll
    bet you that when the first $4 million was justified it was for
    a 4-year hood. So that's what we're going to be faced with so
    it seems like a pretty dramatic reversal in a short period.
        Chief Gainer. But it's really still under analysis,
    Senator, so there's no final decision at all.

                                     FENCE

        Senator Durbin. Let me say a word about this fence. I agree
    with Senator Campbell completely. I've been around here long
    enough and I think he has too to have seen some dramatic and
    depressing changes in terms of life on Capitol Hill that
    reflect the reality of threat. And I can recall the bombing in
    the Senate corridor when I was just a brand new Member of the
    House of Representatives; I heard it in my apartment just a
    block or two away. And we started changing things the next
    morning and they've never really stopped; 9/11, of course, was
    the major catalyst of change here. I for one hope that we don't
    move toward a security fence as I envision it. To call
    something an aesthetically pleasing security fence, it's a
    little hard for me to understand where they're coming from with
    this. And is it not true that we're investing substantial sums
    of money on Capitol Hill--maybe this goes to the Architect--for
    the construction of these bollards and other things,
    acknowledging that traffic would be within this complex? Is
    this going to be another escape hood, where we'll say, well,
    now we're going to build the multi-million dollar fence, we
    probably shouldn't have built the bollards because there won't
    be that much traffic within the perimeter of the fence. I don't
    know who can answer that, but is anybody considering that
    aspect?
        Chief Gainer. Well just, from my perspective, Senator,
    they're not incompatible. I guess all I'm suggesting, both here
    and in the House, and I did this in consultation with the
    Board, was to at least renew the discussion about this. I think
    it became most clear to me as we see the different bombings
    that are happening around the world. We have done a lot toward
    standoff on trucks and we've done a substantial amount for
    standoff on vehicles but unfortunately we see the suicide
    bombers, whether it's in England, Ireland, Israel, Palestine,
    Jordan, there are people bringing those packages and it is our
    concern that those small-type of explosives, which will only
    injure scores rather than the 9/11 type, is still a real
    danger. Frankly, as I listen to the 9/11 Committee, in their
    analysis, I just thought it was appropriate that we talk about
    this again because heaven forbid if something happens here on
    the Hill. Who knows what would have happened if 1 year before
    9/11 someone would have come in and said maybe we ought to seal
    all the doors on airplanes. I know it seems bizarre, it doesn't
    look good, but I think we need to lay it out and decide whether
    we want to accept the risk or not.
        Senator Durbin. I think it's entirely appropriate that you
    raised the issue. But I'm struggling with the concept that says
    we will have a perimeter fence to limit access to the Capitol
    Hill area, and that means that we'll have fewer Capitol Hill
    police, for example, who have to worry about access points;
    there will be fewer access points with such a perimeter fence
    and yet we can still justify the bollards for traffic that's
    going to pass through this secure area? I think those two
    things are inconsistent. Either a perimeter fence limits access
    and the bollards then become redundant or unnecessary or it
    doesn't limit access and you ask why you have it. So I need to
    work with you on that to understand this a little better.
        Chief Gainer. I know we're just a long way from even
    touching on this, but if you can envision how the White House
    is, where there are bollards along Pennsylvania Avenue and the
    bordering streets and then the fence. The fence is really
    designed less for vehicles and more for people. Unlike the
    White House, the vision for this is where we would have
    sufficient openings and officers, so the access for people
    would be freeflowing. Then we would know anybody inside the
    perimeter of the Capitol would be completely bomb-free,
    weapons-free and then they'd have complete access to the entire
    Capitol.
        Senator Durbin. I guess my misunderstanding was I thought
    initially they'd said that the fence would be outside of the
    office building area.
        Chief Gainer. That was one of the suggestions. Now again,
    it was at least one of the suggestions, you're correct.
        Senator Durbin. Before we get into all the details which
    would be a long discussion, I would just weigh in with Senator
    Campbell. I just hope that we don't reach that point where
    we're fencing off the Capitol area. I want to try to find some
    way to achieve security. Short of that, if it becomes a
    necessity then frankly we have to accept it.

                           SWORN PERSONNEL REQUESTED

        May I ask you this. The 1,800 sworn personnel, 1,805, if
    I'm not mistaken that has been a goal for several years, that
    the Capitol Police would reach that level of sworn personnel.
        Chief Gainer. Approximately, yes.
        Senator Durbin. Yes. And so the last several hundred that
    you're asking for this year, 200 or whatever it happens to be,
    is in pursuit of that goal that we set a number of years ago.
    Is that correct?
        Chief Gainer. Correct.

                              RECRUITING OFFICERS

        Senator Durbin. There was a time not too long ago when I
    asked either you or your predecessor how many applications need
    to be taken before you find someone who can be qualified to
    serve as a Capitol policeman? What is the current ratio, do you
    know?
        Chief Gainer. It's about 1 out of 10 and sometimes it goes
    1 out of 18. We do have some great candidates who are applying
    and maybe the job market helps us in that regard, but it's
    about 1 in 10.
        Senator Durbin. And what are the major reasons why
    applicants are not accepted?
        Chief Gainer. It is more a matter of being best qualified,
    it's really not that people are unqualified, it is in fact they
    are less qualified. We do the written test, the psychological
    and the background.
        Senator Durbin. Drug test?
        Chief Gainer. Yes sir. And a polygraph.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senator Durbin. I see. I have some questions for the record
    but thank you very much, Chief.
        Chief Gainer. Thank you, Senator.
        Senator Campbell. I have no further questions. There may be
    some written ones by other committee members. But I just want
    to say in parting it's been terrific working with both of you.
    Thank you.
        Chief Gainer. Thank you, Mr. Chairman.
        Mr. Pickle. Thank you, Mr. Chairman.
        [The following questions were not asked at the hearing, but
    were submitted to the Department for response subsequent to the
    hearing:]
             Questions Submitted by Senator Ben Nighthorse Campbell
        Question. In 2001, the Capitol Police developed a plan to remedy
    administrative deficiencies identified by the GAO. In January GAO
    completed its semi-annual review of the status of these issues. GAO
    found that ``the overall pace of progress on USCP's strategic
    initiatives continues to be limited.'' Areas such as developing
    procurement policies and procedures, implementing a performance
    management system, and improving workforce planning were among the
    deficiencies noticed. Can you describe briefly how you will meet the
    milestones the Department itself set forth in 2001 to improve USCP
    administrative functions? How many new personnel are needed to
    implement these milestones? What is the status of hiring a new Chief
    Administrative Officer--a position that has been vacant for about
    three-quarters of a year?
        Answer. Mr. Anthony Stamilio was selected for the CAO position and
    reported for work on May 4, 2004.
        Significant progress has been made in administrative operations
    since the creation of the CAO in 2001. As reported by GAO in their
    semi-annual reviews of our administrative operations the following
    achievements have been made:
      --Completed a strategic plan for fiscal years 2004 through 2008 for
            the Department, including departmental goals, objectives, and
            associated performance measures.
      --We have stabilized and are making significant improvements in
            financial management, including the development and
            implementation of policies and procedures to control and guide
            the appropriate use of funds. We have requested the
            consolidation of our Salaries and General Expense
            appropriations and have requested funding for a new accounting
            system to continue the progress we have initiated.
      --We have implemented a zero based budget approach for all Department
            operations to ensure budget requests are appropriately
            developed and justified each year.
      --We have developed an IT systems architecture as a road map for the
            deployment of technology within the Department and have
            replaced and are in the process of replacing a significant
            number of antiquated systems throughout the Department as well
            as leveraging opportunities for systems augmentation and
            development for new operational and administrative
            capabilities.
      --Hired contract and additional staff, including a new Director and
            senior staff in the Human Resources area to tackle the backlog
            of filling positions and policy development.
        Areas that require additional work:
      --The GAO has identified the employment of critical administrative
            staffing with the right mix of skills and competencies as the
            number one impediment to the USCP achieving its administrative
            goals.
      --Other areas for improvement include further development and
            implementation of policies and procedures, completion of an IT
            acquisition strategy, implementation of a competency based
            performance management system, as well as developing a robust
            workforce planning capability.
        We acknowledge that excessive operational demands and significant
    staffing shortages continue to consume critical administrative
    resources and impeded or slow progress toward reaching strategic goals
    and initiatives.
        We also understand the decisions reached as part of the planning
    process needed to drive the focus of daily operations.
        Question. The recent SAIC report identified several areas in USCP
    that had poor management practices, while in other areas it found
    ``best practices'' in managing work and resources. Why does this
    management imbalance exist in USCP and what is top management doing to
    increase the management capabilities of those areas deemed deficient?
        Answer. The focus of the SAIC analysis was not to conduct a review
    of management practices and management of work but rather the
    methodology utilized in the USCP developed Staffing Analysis. Based on
    the review of the USCP methodology, SAIC determined that there were
    pockets of best practices in the organization. For example the Office
    of Information Systems (OIS) and Security Services Bureau were cited as
    a ``best practices'' because they utilized processes to depict workload
    and mapped workload to FTE requirements based on benchmarking,
    historical data, and/or subject matter expertise. While these areas
    were determined to be best practices, other areas were not able to
    document workload due to lack of data or lack of experience to create
    workload data (i.e., work had not previously been accomplished and
    workload data was not available). However, SAIC did indicate, ``most
    offices under the Chief Administrative Officer are not positioned to
    operate as fully functioning support organizations.'' SAIC went on to
    state, ``most deficiencies have been recognized and steps are being
    taken to address them.'' The USCP has initiated the process to contract
    with outside consultants to review selected operations, within fiscal
    constraints. Areas included in the current review processes include
    training services, internal affairs, budget, accounting, and selected
    areas of protective services.
        Question. USCP asked for a considerable number of additional
    positions in the Comprehensive Staffing Analysis, yet SAIC could not
    validate the assumptions and criteria used by USCP for most of these
    positions. What is USCP doing to increase the assurance that the fiscal
    year 2005 positions can be justified and validated?
        Answer. SAIC's task was to review the methodology used to develop
    the USCP staffing needs. SAIC reviewed each position and provided a
    stoplight (red, yellow, green) indication as to whether appropriate
    supporting information was available to support the new positions. They
    did not perform workload analyses or comment on the need for the
    positions, but rather the level of supporting information they
    reviewed.
        While the USCP does concur with many parts of the SAIC evaluation,
    there are also several areas where the USCP does not agree with SAIC's
    findings. The inability of SAIC to fully validate the justifications of
    several positions, where the USCP thought it had strong justifications,
    is where most disagreements exist. The following outlines where some of
    the validation issues occurred:
      --In several cases Bureaus/Offices were asked by SAIC to produce
            workload data in order to validate justifications. Such
            workload data was sometimes not available, or not as thorough
            as one would like it, primarily due to the fact that there has
            not been sufficient staff necessary to collect workload
            information, or because current systems are not able to capture
            the necessary data. In many offices the current staffing levels
            are only sufficient to perform the minimum requirements of the
            office, not allowing for the additional time necessary to
            collect workload data, manually if it is not available
            automatically.
      --SAIC asked for outside staffing studies to confirm what Bureaus/
            Offices were telling them in terms of the need for additional
            staff. While the USCP acknowledges that such studies are very
            useful tools, and were used when available in putting together
            the Comprehensive Staffing Analysis, the Department has not had
            studies done on all areas of the Department, in large part due
            to costs associated with having such studies performed.
      --In some instances Bureaus/Offices thought the information provided
            to SAIC logically showed the need for additional staff, while
            SAIC would not validate, or would only partially validate the
            request.
      --SAIC was unable to validate a majority of personnel requests for
            administrative staff, stating that this was due to the lack of
            sufficient analysis of current and projected workloads. The
            Department is aware that there has been a great need for more
            administrative staff to alleviate higher-level staff from
            having to undertake administrative duties. To validate the
            staffing requests, SAIC stated that an in-depth workload
            analysis would need to be performed, thereby enabling accurate
            manpower requests. Once again, as stated above such studies are
            very costly.
      --In the last GAO report reviewing progress being made in the areas
            under the USCP's Chief Administrative Officer, several
            references were made about the great need that the USCP had in
            the management/administrative areas for additional staff. The
            SAIC report on the other hand, could not fully validate many of
            the justifications presented for additional staff in those same
            areas, and which the Department believes are obvious staffing
            needs.
        In addition to the additional information provided to both SAIC and
    GAO, the USCP has initiated the process of contracting with outside
    consultants to review selected operations, within fiscal constraints.
    Areas included in the current review process include training services,
    internal affairs, budget, accounting and selected areas of protective
    services.
        Question. You have requested $5.7 million for a ``sworn pay scale
    adjustment.'' What is this and what are the implications if we are
    unable to fund this initiative?
        Answer. The sworn pay scale adjustment rectifies inequities between
    grade and step levels in the sworn pay scale as a result of prior year
    adjustments to selected portions of the pay scale without appropriate
    consideration of the impact these adjustments had on the pay scale as a
    whole.
        At the direction of the Appropriations Committees, a study was
    completed that recommended a correction of the current inequities. The
    study determined that it would cost $11.4 million in fiscal year 2005
    to implement the proposed pay schedule on October 1, 2004. The $5.7
    million included in the fiscal year 2005 request would provide for an
    April 1, 2004 implementation. An additional $5.9 million (includes
    estimated 3.5 percent January 2006 COLA) would be required in fiscal
    year 2006 for the annualization of the adjustments.
                                     ______

                Questions Submitted by Senator Richard J. Durbin
        Question. What are the long term capital costs required for the
    Capitol Police?
        Answer. Excluding facilities related items, most of the USCP
    capital costs relate to the replacement of systems or equipment such as
    vehicles, X-ray, magnetometers and cameras. The cyclical replacement
    costs of these capital items are included on an ongoing basis in our
    annual requests.
        In the area of information systems modernization, the USCP
    currently operates a set of administrative systems including personnel,
    time and attendance, scheduling and inventory control. These mainframe
    systems are a heterogeneous collection of legacy mainframe software
    applications and commercial off-the-shelf software applications. The
    legacy systems are costly to operate and difficult to maintain. The
    infrastructure has been managed and developed on an as-needed basis,
    often tied to specific applications.
        USCP has developed an Enterprise Architecture and IT Strategic Plan
    consistent with the modernization effort started in fiscal year 2001.
    These efforts target web-enabled, integrated applications running on
    one or more enterprise servers to include back-up servers soon to be
    located at the Alternate Computer Center (ACF).
        The modernization effort project is large and enterprise-wide in
    scope. As such, there are multiple phases with multiple subprojects
    that are coupled together. Users have both functional and non-
    functional requirements that cross the enterprise IT Architecture,
    requiring close coordination and project management of multiple teams.
        The Office of Information Systems (OIS) created a Business Systems
    Modernization Office (BSMO). The BSMO mission is to provide technical,
    functional, managerial, and planning IT support to the USCP in the
    development of an Enterprise Architecture (EA), development of a
    Transition Plan as well as oversight of the ongoing implementation
    efforts.
        Phase 1 of the modernization effort provided for the implementation
    of Administrative systems. Time and Attendance, Personnel, Scheduling,
    Training and Fleet Management, as well as a Case Management System for
    Internal Affairs have been completed. All Law Enforcement Systems have
    been brought up to the same relational data base level.
        Phase 2 will encompass the implementation of an Asset Management
    System integrated to the Financial Management System to include budget.
    A Data Warehouse and Operational Data Store has been designed and
    implementation is to take place in early fiscal year 2005.
        Phase 3 will occur in fiscal year 2006 and provide for an Executive
    Information System (EIS) to assist in the recovery and use of data and
    information as necessary.
        One significant item that is on the horizon is the replacement of
    the radio systems. A new digital radio system, which will be used by
    the USCP and other Legislative Branch entities, is roughly, and
    preliminarily, estimated at $30 million. A contract is being negotiated
    with the Navy Aviation Systems Command to assess and make
    recommendations for the radio communications system upgrades. This
    study will include firmer estimated costs for their proposed
    recommendations. Over the past several years, we have been working
    closely with the Architect of the Capitol in the development of a
    facilities master plan for the USCP. The potential cost of new
    facilities and the cost of facility renovation are best addressed by
    the Architect of the Capitol.
        Question. Chief Gainer, could you please explain why you need $8.1
    million for replacement of escape hoods?
        Answer. When the current escape hoods were purchased they were the
    best on the market. However, the current masks are difficult to put on
    and it is impossible to communicate when they are donned. In October
    2003, the National Institute for Occupational Safety and Health (NIOSH)
    published national standards for escape hoods, and all further testing
    and approval will be accomplished against those standards. At this
    time, several companies have submitted escape hoods to NIOSH for
    testing under the new standards and product approvals are expected to
    occur during the second half of 2004. Approved escape hoods are
    expected to be available for purchase in 2005. It is anticipated that
    the escape hoods that meet the new standards will be easier for adults
    and children to wear and will solve the communications issue. If as
    anticipated new masks are on the market in 2005 that meet the NIOSH
    standards, a preliminary decision was made to replace all the escape
    hoods rather that doing it in a piecemeal fashion and give someone an
    older, less viable hood. The cost of replacing all 45,000 escape hoods
    is estimated to be $8.1 million.
        Question. What training requirements are not being met at the FLETC
    facility at Cheltenham?
        Answer. The USCP is currently conducting follow-on basic and in-
    service training at the FLETC facility at Cheltenham, Maryland. We are
    also negotiating a MOA with the FLETC to utilize the firearms range for
    re-certifications, and will utilize the driving range when it is
    complete this fall. Some of our long distance rifle training needs,
    which are best conducted in an outside environment, will not be met at
    the Cheltenham facility. Also, basic recruit training, which is
    conducted by the FLETC in Georgia, was never intended to move to
    Cheltenham and will not be relocated to the Cheltenham facility. We
    continue to work with FLETC regarding issues on availability of the
    facilities as well as funding requirements, and we expect to have a
    Memorandum of Agreement finalized soon. We have also been working with
    the Appropriations Committees regarding the resolution of the issues.
        Question. What is the cost for building a separate firing range for
    the Capitol Police?
        Answer. The Architect of the Capitol's budget request contains $12
    million for the design and construction of a 36-point 50-yard
    underground firing range. As conceived, the range would be co-located
    and built with the Off-site Delivery Facility. If the scheduling
    requirements, addressed in the above question, for all USCP firearms
    training and re-certification can be accommodated by the FLETC, the
    USCP will not require the facility requested by the AOC. However, if
    the facility availability issues are not worked out, the construction
    of a new firing range is critical to the operations of the USCP.
        Question. It was my understanding that the Capitol Police have free
    use of the firing range at Cheltenham. Why do you need a separate
    firing range?
        Answer. Our primary issue regarding the use of FLETC firing range
    at Cheltenham is one of access and accommodating our needs for firearms
    training and re-certification. As indicated above, the original
    partnership with the Federal Law Enforcement Training Center (FLETC) on
    the new training facility in Cheltenham, Maryland included 26 agencies.
    With the creation of Department of Homeland Security and subsequent
    merger with Treasury/FLETC, the facility now serves 70 plus agencies
    but the size of the range has not grown proportionally. If our training
    needs cannot be met by the FLETC, the construction of a new firing
    range is critical to our operations.
        FLETC has indicated that it is expecting a reimbursement for firing
    range use by all federal agencies and we have included funds for this
    purpose in our fiscal year 2005 budget request.
        Question. What are the costs associated with the Capitol Police
    having access to the Cheltenham facility? Are theses costs being
    covered by the Capitol Police or by the Department of Homeland
    Security?
        Answer. Although we are still working with the FLETC on access and
    reimbursement issues, based on reimbursement cost rates FLETC provided
    in the Fall of 2003, we estimated it will cost the USCP $1,032,000 in
    fiscal year 2005 to cover all firearms training. This amount is
    included in our fiscal year 2005 budget request. However, we now
    understand that FLETC may be lowering their rates. A Memorandum of
    Agreement (MOA) between the USCP and FLETC is being negotiated and it
    should be completed soon. This MOA will spell out who will pay for what
    cost and when cost will begin being paid by the USCP. In addition to
    the firing range reimbursements, these costs will include the
    operational and maintenance costs of Building 31, the primary training
    facility that we occupy, and any other resources utilized by the USCP
    at the Cheltenham facility. The FLETC has estimated the cost to be
    $281,400 for fiscal year 2004. FLETC will also expect reimbursement for
    the driving range when it opens and a daily per person user fee,
    currently set at $5, for the use of their other facilities at
    Cheltenham. We do anticipate reimbursing the FLETC for the operational
    and maintenance, driving range and other facility usage fees.
        Question. What is the status of filling the vacancy of the Chief
    Administrative Officer?
        Answer. Mr. Anthony Stamilio was selected for the CAO position and
    reported for work on May 4, 2004.
        Question. What are your priorities for improving administrative
    operations of the Capitol Police?
        Answer. Our first priority is to fill all the vacant civilian
    positions including the 75 new positions that were provided in fiscal
    year 2004. We have hired outside consultants to jumpstart our hiring
    and human resources operations. We are committed to having
    substantially all these positions filled by the end of the fiscal year.
    As part of our strategic planning effort we have developed performance
    plans and measures to continue the improvement of our administrative
    operations. We continue to move forward with our information technology
    systems modernization related to law enforcement databases and
    administrative systems as well as modernizing human resources and
    continuing with improvements with financial management operations.
        Question. We recently received SAIC's evaluation of your
    Comprehensive Staffing Analysis. It seems that the Capitol Police could
    benefit from the development of a comprehensive manpower plan that
    would determine the number and kinds of positions, both existing and
    new, needed to meet the requirements identified in the threat and
    vulnerability assessments as well as the strategic plan. Are there any
    efforts underway to undertake the preparation of such a plan? What
    would be required to produce a manpower plan that would clearly relate
    manpower requirements to a congressionally approved strategic plan that
    clearly ties to threat and vulnerabilities?
        Answer. One of the priorities of the new CAO is to take a strategic
    view of human capital management. Based on GAO recommendations, we are
    currently exploring the benefits and processes of strategic human
    capital planning, synchronized with the USCP Strategic Plan. The threat
    environment, evolving tactics and technology will drive requirements
    for future manpower adjustments. Our tentative plan is to assess
    functional slices of the organization in light of the above ``drivers''
    to determine the manner in which the organization will operate in the
    future. The manpower requirements, to include numbers and skill sets
    will evolve from this analysis. Initial assessments should begin in
    fiscal year 2005.
        Question. Do you feel that a perimeter security fence is a good
    idea? Do you think it should include both the Capitol and the office
    buildings?
        Answer. All of our major security surveys (Secret Service, DTRA,
    SAIC) since 1983 have raised the issue of a perimeter fence to enhance
    Capitol Complex security. Strictly from a security standpoint, we agree
    that a fence is a good idea. Based on the current environment and
    events that are happening around the world, we believe that the
    perimeter security fence issue should be revisited and that here should
    be a discussion on its merits and whether we want to accept the risks
    as they exist today. This discussion should include a perimeter
    security fence around the Capitol and the office buildings. We realize
    that other factors, including perceived openness and cost, need to be a
    part of this discussion. The resolution of this issue is directly
    related to the manpower requirements of the USCP.
        Question. Are you working on a plan to ease staff entry into the
    Senate buildings? I have noticed on many occasions that the lines are
    out the doors and on the sidewalks at many of the Hart and Dirksen
    Building entrances.
        Answer. We have recently made several changes to reduce the line at
    entrances to the Senate buildings. We are designating several entrances
    as ``staff only'' until 10:00 a.m. and outside officers are directing
    visitors to lower volume entrances. We will continue to monitor the
    situation and make adjustments are needed.

                              SUBCOMMITTEE RECESS

        Senator Campbell. If there is nothing further, the
    subcommittee will next meet at 11 a.m., Thursday, April 8 to
    hear from the Secretary of the Senate and the Architect of the
    Capitol.
        [Whereupon, at 3 p.m., Wednesday, March 31, the
    subcommittee was recessed, to reconvene at 11 a.m., Thursday,
    April 8.]

             LEGISLATIVE BRANCH APPROPRIATIONS FOR FISCAL YEAR 2005

                                  ----------

                            THURSDAY, APRIL 8, 2004

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 11:03 a.m., in room SD-138, Dirksen
    Senate Office Building, Hon. Ben Nighthorse Campbell (chairman)
    presiding.
        Present: Senators Campbell and Durbin.

                                  U.S. SENATE

                            Office of the Secretary

    STATEMENT OF HON. EMILY J. REYNOLDS, SECRETARY OF THE
                SENATE
    ACCOMPANIED BY:
            MARY SUIT JONES, ASSISTANT SECRETARY
            TIM WINEMAN, FINANCIAL CLERK
            DIANE SKVARLA, CURATOR

              OPENING STATEMENT OF SENATOR BEN NIGHTHORSE CAMPBELL

        Senator Campbell. The subcommittee will come to order. We
    meet this morning for our last scheduled hearing for the fiscal
    year 2005 budget cycle for the legislative branch. We will take
    testimony from the Secretary of the Senate, Emily Reynolds, and
    the Architect of the Capitol, Alan Hantman.
        Good morning, Emily. How are you this morning?
        Ms. Reynolds. I am fine, sir. Thank you.
        Senator Campbell. The budget request for the Office of the
    Secretary is $21.286 million, an increase of $755,000, or about
    a 4 percent increase over the current year budget.
        In the last year, your office had accomplished very much,
    including further implementation of a financial management
    information system, keeping the Senate operating during the
    February ricin incident and, of course, working with the owner
    of the Curtis chair that I was so interested in, and I thank
    you for that, which is now back in the Senate. We certainly
    appreciate that.
        Following your testimony, we will hear from the Architect
    of the Capitol, Alan Hantman. The AOC's budget request totals
    almost $858 million, which is an increase of $170 million, or
    41 percent over the fiscal year 2004 appropriation. Roughly,
    half of the budget is for operations and maintenance of the
    buildings and grounds administrative support, safety programs,
    and restaurants.
        The increase of 18 percent over fiscal year 2004 for this
    portion of the budget is due to increased utility costs,
    payroll, and safety programs. The other half of the budget,
    major capital projects, is up 143 percent over the current
    year, and would support 71 projects, including the Copyright
    Deposit Facility for the Library of Congress, storage modules
    for the Library at Fort Meade, and Capitol Police projects.
        The number of projects and dollar values associated with
    them will be very difficult to accommodate, not only in the
    view of the budgetary constraints but also owing to the
    concerns that you have a lot on your plate already, not the
    least of which is the completion of the Capitol Visitor Center.
    We will be looking forward to that testimony, too.
        Senator Durbin will be along, but while we are waiting for
    him, you go ahead and proceed, Ms. Reynolds.
        Ms. Reynolds. Thank you, sir. My full statement, which
    obviously you all have, I would like to have submitted for the
    record.
        Senator Campbell. It will be included in the record. Is
    your button on, on that microphone?

                      OPENING STATEMENT OF EMILY REYNOLDS

        Ms. Reynolds. Thank you very much. My full statement, of
    course, as you just said, we will include in the record. I
    thank you for that. I would like to give just a brief overview
    this morning and hit some of the high points of our past year.
        I have with me this morning our very able team, Mary Suit
    Jones, our Assistant Secretary, Tim Wineman, our financial
    clerk, and a number of our department heads, all of whom I am
    honored to work with each and every day.
        As you said, our budget request for the year is
    $21,286,000. That is $1.7 million in operating funds and just
    over $19 million in our salary costs. Our operational budget is
    static from last year but now knowing, obviously, the strengths
    of this office, what it takes us to operate, and also to take
    on some new initiatives, we believe that--that request is a
    sound one and will enable us to continue to function well in
    all three of our divisions, legislative, financial, and
    administrative.
        Our personnel costs, as you pointed out, we are requesting
    a very slight increase, that for the COLA and for merit, so
    that we can continue to attract and retain the talent that the
    United States Senate both needs and deserves in our operations.
        I want to thank the committee, Mr. Chairman, for your past
    support of two major projects, one of which you mentioned; our
    financial management information system, and our legislative
    information system, both of which, in the course of this last
    year, we continue to make enormous progress.

                    FINANCIAL MANAGEMENT INFORMATION SYSTEM

        On FMIS, as you know, that was developed from a 5-year
    strategic plan for the disbursing office. It now covers some
    140 offices here in our Senate community and our goal is to
    move to a paperless voucher system.
        We reached an important step at the end of March, with a
    test of creating laser checks, which was successful. That is
    one of our production goals for this year. Moving into fiscal
    year 2005, our plans call for us to create a small pilot of the
    technology for paperless payment processing. So again, we are
    making considerable progress in that regard.

                         LEGISLATIVE INFORMATION SYSTEM

        On the legislative information system, to implement the
    extensible mark-up language, or XML, is our data standard by
    which we author and exchange documents, again, enormous
    progress. That really has been a very collaborative effort,
    with both our project office, Sergeant-at-Arms staff, and our
    Senate legislative counsel, who have been our guinea pigs, if
    you will, as part of that project team.
        I am happy to report that they are now using the LEXA
    application and, by all accounts, it is going quite well. In
    fact, one member of the Senate legislative counsel team
    reported that this is a story with a happy ending. The ending,
    of course, is not yet completely in sight, as we will continue
    to develop and enhance that project.
        All and all, our LIS system means an improved exchange
    program, quicker access to legislative information, and
    documents that we can use much more easily reuse and re-
    purpose.
        I also want to thank the committee. We had some non-
    recurring costs that you all were supportive of us on. We had
    some technology upgrades that we needed very badly, in closed-
    captioning, in our gift shop, in our stationery room, and we
    have made progress on all of those in no small part thanks to
    this committee's help. So I thank you, again.

             SENATE PRESERVATION FUND AND CURATORIAL ADVISORY BOARD

        Most especially, something that I know is near and dear to
    you, and Senator Stevens' leadership was very helpful to us on
    this as well, and that is the creation of the Senate
    preservation fund, and a curatorial advisory board for us here
    in the United States Senate.
        I want to give you a quick update on that, in that, for the
    curatorial advisory board, we are in the process of gathering
    nominees from the members of the Commission on Art.
    Specifically, the legislation reads that those board nominees
    be experts, scholars in their field. And they will help us in
    terms of providing counsel on our Senate collection, looking at
    possible acquisitions for us, developing preservation policies.
        My hope is that we can have that board in place within the
    next month, and gather them for their first meeting this
    summer. So, that is an exciting opportunity.
        Second of all, again, the Senate Preservation Fund, the
    seed money that you all provided this committee, that $500,000,
    will give us the ability to service that curatorial advisory
    board in terms of administrative costs and also to make some
    potentially time-sensitive acquisitions going forward.
        In addition, I think that board and the Preservation Fund,
    the more people know of what we are looking to bring back to
    the United States Senate or the kinds of acquisitions we are
    looking for, the more that word spreads in that curatorial
    field, the better our ability will be to attract some
    additional treasures back to the Capitol and the Senate wing,
    in particular.

                                  CURTIS CHAIR

        I want to again thank you, as you mentioned a moment ago,
    for bringing to our attention last year the existence of the
    chair that belonged to former Vice President Charles Curtis,
    and the detective search that we all enjoyed in terms of
    locating that chair, and bringing it back home, if you will.
        The chair is now, of course, on loan to us from an
    anonymous donor. With Vice President Curtis, it was housed in
    the Russell Senate Office Building. It now, as you know, has
    been placed in the ceremonial office for the Vice President, in
    the Capitol. As we move forward with plans for the exhibit
    content of the Capitol Visitor Center, our hope is that it will
    be displayed in the Visitor Center in the years to come, as
    well.

                        PORTRAIT OF MARGARET CHASE SMITH

        In other curator activity, the portrait of Margaret Chase
    Smith will arrive this year. This fall, we will see the
    addition of Senator Vandenberg and Senator Wagner to the Senate
    reception room. So, that will be an exciting event that all of
    us will look forward to, here in our Senate family.
        With our 26 departments, there are so many highlights in
    addition to all the curators' work. I just want to take a
    moment, just for a couple of additional highlights.

                                 SENATE LIBRARY

        Our tremendous Senate library. While a lot of information
    centers are showing actual decline of usage, our Senate library
    last year continued its tradition of posting increases in use
    to up to 14 percent last year. Senate.gov, a tremendous tool,
    not only just for those of us here in the Senate community but
    for the general public, we are now averaging 115,000 visits to
    Senate.gov a day. So, it is a tremendous public education tool.

                            SENATE HISTORICAL OFFICE

        Our historical office last year was deeply involved in the
    first-ever conference of university-based research centers that
    are dedicated to the study of Congress. I am delighted to
    report that out of that conference, an Association of Centers
    for the Study of Congress was created. And with that, our
    historical office, we will help host that group for their first
    formal meeting. They will be meeting here with us in the
    Capitol next month. So again, something to look forward to. And
    again, our historical office played a pivotal role in that,
    something I am very proud to report.
        Our historical office also is a valuable part of the
    content team for the Capitol Visitor Center, as we look to
    opening that facility within the next couple of years.

                             COOP AND COG PLANNING

        I also want to mention that our continuity of operations
    planning and our continuity of Government planning, which I
    know our Sergeant-at-Arms, at his hearing last week, spent a
    great deal of time with you all on, is also an area that our
    office works very collaboratively with the Sergeant-at-Arms on.
    Clearly, as you mentioned a moment ago in the introduction,
    that planning pays off. Most recently, with our ricin scare
    February 2.
        Although our buildings were closed, our disbursing office
    still met payroll, just as they did during the anthrax incident
    of 2001. For offices that might have been relocated for a
    period of time, we exercised our COOP plan for the stationery
    store, so the supplies were available to offices as they set up
    in other locations. We had a statutory deadline in public
    records, and we were able to set up shop in our emergency
    operations center to meet that statutory filing deadline.
        We continue to exercise frequently with the Sergeant-at-
    Arms in all aspects of COOP and COG, so that, most importantly,
    our team can meet our legislative responsibilities and any
    other responsibilities incumbent upon us.
        At the top of my remarks a moment ago, I mentioned the very
    able people within the Secretary's office, and I want to
    commend them, if you will indulge me for a moment. It is
    remarkable to me that total combined within our office, the
    individuals who staff the Secretary's office represent a
    combined service of over 2,500 years of service to the United
    States Senate.
        They really do represent the best of the vision of Senators
    Mansfield and Dirksen for now some 40 years ago. And that is
    attracting people to the Secretary's office to serve as true
    professionals, to maintain and strengthen the United States
    Senate as an institution, as a whole, and they are a remarkable
    group of individuals.
        You see how that strength and their expertise is so
    important to us when you look at the kind of legislative year
    we had last year. It was the busiest legislative year since
    1995. Having that depth and breadth of experience, especially
    as we went through two, of course, overnight marathon sessions
    in November, and followed by a rare weekend session right on
    the heels of that, that longevity in service, that expertise
    serves the Senate very well every day.

                     SUCCESSION PLANNING AND CROSS-TRAINING

        With that longevity of service also comes the need for
    succession planning and cross-training among our specialties.
    That initiative continues as well. We have a perfect example I
    just want to cite amongst our own personnel, in terms of
    succession planning, is that we have been able, in a very
    pivotal role within the legislative clerk's office, we were
    able to bring someone on 10 months in advance of a pending
    retirement, so that those individuals have ample time to train,
    share knowledge, work side by side on a daily basis; and when
    that retirement occurs, will allow for a seamless transition in
    our legislative shop.
        You will also notice in our cross-training efforts, our
    staff that works at the Senate rostrum, among the legislative
    clerk's staff, while their faces do not necessarily change,
    they will change seats on you from time to time. That is
    because all of them were cross-trained amongst their
    specialties; again, to give us all that depth and breadth of
    experience, enabling the Senate to meet its constitutional
    responsibilities.
        It has been my real privilege, for now just about 16
    months, to serve as the Senate's 31st Secretary, to be part of
    the tradition and history of this incredible institution. That
    is why on balance, I believe, after careful examination, the
    budget request we bring you today, both in terms of our
    operating budget and our personnel costs, will enable us to
    continue to provide the very best possible legislative,
    financial, and administrative services to this body.

                               PREPARED STATEMENT

        I thank you and I look forward to your questions.
        Senator Campbell. Thank you, Emily.
        Ms. Reynolds. Thank you, sir.
        [The statement follows:]
                    Prepared Statement of Emily J. Reynolds
        Mr. Chairman, Senator Durbin and Members of the Subcommittee, thank
    you for your invitation to present testimony in support of the budget
    request of the Office of the Secretary of the Senate for fiscal year
    2005.
        Detailed information about the work of the 26 departments of the
    Office of the Secretary is provided in the annual reports which follow.
    I am pleased to provide this statement to highlight the achievements of
    the Office and the outstanding work of our dedicated employees.
        My statement includes: Presenting the fiscal year 2005 Budget
    Request; Implementing Mandated Systems: Financial Management
    Information System (FMIS) and Legislative Information System (LIS);
    Capitol Visitor Center; Continuity of Operations Planning; and
    Maintaining and Improving Current and Historic Legislative, Financial
    and Administrative Services.
                 presenting the fiscal year 2005 budget request
        I am requesting a total fiscal year 2005 budget of $21,286,000.
        The fiscal year 2005 budget request is comprised of $19,586,000 in
    salary costs and $1,700,000 for the operating budget of the Office of
    the Secretary. The salary budget represents an increase over the fiscal
    year 2004 budget request as a result of (1) the costs associated with
    the annual Cost of Living Adjustment in the amount of $717,000; and (2)
    an additional $570,000 for merit increases and other staffing.
        The net effect of my total budget request for fiscal year 2005 is
    an increase of $722,000.
        Our request in the operating budget, which is the same as fiscal
    year 2004, is a sound one, enabling us to meet our operating needs and
    provide the necessary services to the United States Senate through our
    legislative, financial and administrative offices.
        In reference to the salary budget, first and foremost, this request
    will enable us to continue to attract and retain talented and dedicated
    individuals to serve the needs of the United States Senate.

                                     OFFICE OF THE SECRETARY APPORTIONMENT SCHEDULE
    ----------------------------------------------------------------------------------------------------------------
                                                                         AMOUNT
                                                                        AVAILABLE        BUDGET
                                  ITEM                                 FISCAL YEAR      ESTIMATE        DIFFERENCE
                                                                       2004 PUBLIC     FISCAL YEAR
                                                                       LAW 108-83         2005
    ----------------------------------------------------------------------------------------------------------------
    DEPARTMENTAL OPERATING BUDGET:
        EXECUTIVE OFFICE...........................................        $525,000        $525,000  ...............
        ADMINISTRATIVE SERVICES....................................       1,100,000       1,135,000         $35,000
        LEGISLATIVE SERVICES.......................................          75,000          40,000         (35,000)
                                                                    ------------------------------------------------
          TOTAL OPERATING BUDGET...................................       1,700,000       1,700,000  ...............
                                                                    ================================================
    SPECIAL PROJECTS...............................................         565,000  ..............        (565,000)
                                                                    ------------------------------------------------
          TOTALS...................................................       2,265,000       1,700,000        (565,000)
    ----------------------------------------------------------------------------------------------------------------

                         implementing mandated systems
        Two systems critical to our operation are mandated by law, and I
    would like to spend a few moments on each to highlight recent progress,
    and to thank the committee for your ongoing support of both.
    Financial Management Information System (FMIS)
        The Financial Management Information System, or FMIS, is used by
    approximately 100 Senators' offices, 20 Committees and 20 Leadership
    and support offices. As a result of a five year strategic plan
    developed by the Disbursing Office, the Appropriations Committee
    subsequently approved a $5 million appropriation of a multi-year
    program to upgrade and expand FMIS for the Senate.
        With these funds, the Disbursing Office continues to modernize
    processes and applications to meet the continued demand by our Senate
    offices for efficiency, accountability and ease of use. Our goal is to
    move to a paperless voucher system, improve the Web-FMIS system, and
    make payroll and accounting system improvements. In addition, we are
    working cooperatively with the Sergeant at Arms to prepare auditable
    financial statements for the Senate.
        In 2003, specific progress made on the FMIS project included:
      --Implementing three releases of Web FMIS, the accounting system used
            by offices, which included making the online ESR function
            available to all offices and piloting online review and
            sanctioning capability to the Rules Committee Audit staff;
            making changes to the reporting functionality; making changes
            to the underlying technology; and providing additional office/
            committee functionality such as credit documents and the
            ability to create budgets for a new fiscal year.
      --Implementing two releases of the Senate Automated Vendor Inquiry
            (SAVI), the system used by Senate staff to see payment
            information and to prepare expense summary reports (online
            ESR's). Those releases were designed both to streamline access
            to data necessitated by the full Senate implementation of
            online ESR and to enhance security.
      --Implementing software enabling the Rules Committee Audit staff to
            conduct the first and second post payment audits. This was done
            in conjunction with the delegation of sanctioning authority to
            the Financial Clerk for vouchers of $35 or less. These
            statistically valid samples were returned with zero errors, and
            the threshold was consequently increased by the Rules Committee
            to $100 or less, effective January 1, 2004.
      --Piloting payments to external vendors via direct deposit.
      --Revising requirements for imaging of supporting documentation and
            electronic signatures.
        For fiscal year 2004, the following FMIS activities are underway:
      --Full scale implementation of Rules Committee on-line review of Web
            FMIS-produced vouchers is now completed.
      --Implementation of two WEB FMIS releases that will simplify the
            system architecture, upgrade the technology used, provide
            simpler disaster recovery and provide the platform for the
            imaging of supporting documentation and electronic signatures.
      --Conduct a pilot for the use of laser checks.
      --Implementation of a new release of the SAVI system that enables e-
            mail notification of payments to vendors and staff.
      --Implementation of a new release of the online ESR component of SAVI
            that will incorporate suggestions made by users.
      --Investigate the use of electronic signatures, imaging of supporting
            documentation, and receipt of electronic invoices.
        During fiscal year 2005, the following FMIS activities are
    anticipated:
      --Implementation of a Web FMIS release to provide additional reports
            useful to office with improvements in the software used to
            create reports.
      --Conduct a pilot of the technology for paperless payment processing.
        A more detailed report on FMIS is included in the departmental
    report of the Disbursing Office which follows.
    Legislative Information System (LIS)
        Our second mandated system, which this Committee has also
    generously supported, is the Legislative Information System, or LIS,
    which provides Senators and staff with text of Senate and House
    legislative documents from their desktop computers. In addition, LIS
    provides real-time access to legislative amendments and the current
    status of new legislation within 24 hours. LIS originates from the 1997
    Legislative Branch Appropriations Act, which also established a
    requirement for the broadest possible exchange of information among
    legislative branch agencies. This exchange process is now the focus of
    the LIS Augmentation Project, or LISAP.
        The overall objective of the LISAP is to implement the extensible
    markup language, or XML, as the data standard to author and exchange
    legislative documents among the Senate, House of Representatives, the
    Government Printing Office and other legislative agencies. Two years
    ago, the Appropriations Committee appropriated $7 million to the
    Secretary for the LISAP, to carry out the Senate portion of the
    December 2000 directive given to both the Secretary and the Clerk of
    the House by the Senate Rules Committee and the House Administration
    Committee respectively. Thus far, we have spent approximately $4
    million of our appropriation, and I am pleased to report that
    considerable progress has been made and the project is on budget and
    running smoothly.
        The project is currently focused on Senate-wide implementation and
    transition to a standard system for the authoring and exchange of
    legislative documents, including an XML authoring system for the Office
    of Senate Legislative Counsel (SLC) and the Enrolling Clerk for bills,
    resolutions and amendments. A database of documents in XML format and
    an improved exchange program will mean quicker and better access to
    legislative information and will provide documents that are more easily
    shared, reused and repurposed.
        The LISAP project team is developing the Senate's legislative
    editing XML application (LEXA) which was installed in the Office of the
    Senate Legislative Counsel (SLC) in January 2004. The attorneys and
    staff assistants received training and immediately began drafting some
    bills, resolutions, and amendments in XML with the first XML draft
    introduced on January 22, 2004.
        The SLC's document management system was completed in December
    2003, and will be implemented this year. Several of the XML document
    conversion projects have been completed, including the conversion of
    bills, resolutions and amendments from the 106th, 107th and 108th
    (first session) Congresses. The conversion of the compilations of
    current law to XML will be completed in the next few months. The SLC
    and House Legislative Counsel use the compilations in drafting bills
    and amendments.
        The SLC is working closely with the project team on continued
    development and enhancement of LEXA. The Enrolling Clerk and the
    Government Printing Office are next in line to begin using LEXA. When
    LEXA is fully functional for these two operations in producing XML
    documents, the project team will then turn its attention to other
    Senate offices and other types of legislative documents.
        A more detailed report on LIS follows the departmental reports.
                             capitol visitor center
        While the Architect of the Capitol directly oversees this massive
    and impressive project, I would like to briefly mention the ongoing
    involvement of the Secretary's office in this endeavor. My colleague,
    the Clerk of the House, and I continue to facilitate weekly meetings
    with senior staff of the joint leadership of Congress to address and
    hopefully quickly resolve issues that might impact the status of the
    project or the operations of Congress in general.
        In addition, I also facilitate weekly meetings with the Architect's
    office for the senior staff of the Senate Sergeant at Arms, Capitol
    Police, Rules Committee and Appropriations Committee, to address the
    expansion space plans for the Senate and any issues with regard to the
    CVC's construction that may directly impact Senate operations.
        Although the construction creates numerous temporary inconveniences
    to Senators, staff and visitors, completion of the Capitol Visitor
    Center will bring substantial improvements in enhanced security and
    visitor amenities, and its educational benefits for our visitors will
    be tremendous.
          continuity of operations and emergency preparedness planning
        The Office of the Secretary maintains a Continuity of Operations
    (COOP) program to ensure that the Senate can fulfill its Constitutional
    obligations under any circumstances. Plans are in place to support
    Senate Floor operations both on and off Capitol Hill, and to permit
    each department within the Office of the Secretary to perform its
    essential functions during and after an emergency.
        COOP planning in the Office of the Secretary began in late 2000.
    Since that time, this office has successfully implemented COOP plans
    during the anthrax and ricin incidents, and have conducted roughly one
    dozen drills and exercises to test and refine our plans. In conjunction
    with the Sergeant at Arms, Capitol Police, and the Offices of the
    Attending Physician and the Architect of the Capitol, the Office of the
    Secretary has established and exercised Emergency Operations Centers,
    Briefing Centers and Alternate Senate Chambers, both on and off Capitol
    Hill.
        In addition, the Office has identified equipment, supplies and
    other items critical to the conduct of essential functions, and has
    assembled ``fly-away kits'' for the Senate Chamber and for each
    department within the Office of the Secretary. Multiple copies of each
    fly-away kit have been produced. Some are stored in our offices, and
    back-up kits are stored nearby but off Capitol property, as well as at
    other sites outside the District of Columbia. This approach enables the
    Office of the Secretary to resume essential operations within 12 to 24
    hours, even if there is no ability to retrieve anything from offices in
    the Capitol.
        Today, the Office of the Secretary is prepared to do the following
    in the event of emergency: support Senate Floor operations in an
    Alternate Senate Chamber within twelve hours on Capitol property, and
    within 24 to 72 hours off property, depending upon location; support an
    emergency legislative session at a Briefing Center, if required;
    support Briefing Center Operations at any of three designated locations
    within one hour; and activate an Emergency Operations Center on campus
    or at Postal Square within one hour.
        During the past year, the Office of the Secretary continued to
    update, refine and exercise emergency preparedness plans and
    operations. Specific activities included the following:
      --Activated an Emergency Operations Center, Leadership Coordination
            Center and selected departmental COOP plans during the ricin
            incident response;
      --Participated in the Capitol Police Incident Command during the
            ricin incident response;
      --Provided supplies to temporary offices in the Capitol and Postal
            Square during the ricin incident response;
      --Conducted an offsite Alternate Chamber exercise and a Briefing
            Center exercise;
      --Identified and acquired all equipment and supplies required to
            support Senate operations at an offsite Alternate Chamber, and
            stored all materials at the Alternate Chamber location;
      --Reviewed, revised and published the Office of the Secretary's
            Master COOP plan, and all departmental COOP plans.
        The central mission of the Office of the Secretary is to provide
    the legislative, financial and administrative support required for the
    conduct of Senate business. The Office's emergency preparedness
    programs are designed to ensure that the Senate can carry out its
    Constitutional functions under any circumstances. These programs are
    critical to the mission of the Office, and have become a permanent,
    integral part of operations. With the continued assistance of the
    Leadership, the Sergeant at Arms, and the Appropriations Committee, the
    Office of the Secretary is confident that we will be successful in
    facing any future emergency.
     maintaining and improving current and historic legislative, financial
                          and administrative services
                              legislative offices
        The Legislative Department of the Office of the Secretary of the
    Senate provides the support essential to Senators in carrying out their
    daily chamber activities as well as the constitutional responsibilities
    of the Senate. The department consists of eight offices--the Bill
    Clerk, Captioning Services, Daily Digest, Enrolling Clerk, Executive
    Clerk, Journal Clerk, Legislative Clerk, and the Official Reporters of
    Debates--who are supervised by the Secretary through the Legislative
    Clerk. The Parliamentarian's office is also part of the Legislative
    Department of the Secretary of the Senate.
        Each of the nine offices within the Legislative Department is
    supervised by experienced veterans of the Secretary's office. The
    average length of service of legislative supervisors in the Office of
    the Secretary of the Senate is twenty years. There is not one
    supervisor with less than thirteen years of service. The experience of
    these senior professional staff is a great asset for the Senate. As in
    previous years and in order to ensure continued well-rounded expertise,
    the legislative team has cross-trained extensively among their
    specialities.
                                 1. bill clerk
        The Office of the Bill Clerk collects and records data on the
    legislative activity of the Senate, which becomes the historical record
    of official Senate business. The Bill Clerk's Office keeps this
    information in its handwritten files and ledgers and also enters it
    into the Senate's automated retrieval system, available to all House
    and Senate offices via the Legislative Information System (LIS). The
    Bill Clerk records actions of the Senate with regard to bills, reports,
    amendments, cosponsors, public law numbers, and recorded votes. The
    Bill Clerk is responsible for preparing for print all measures
    introduced, received, submitted, and reported in the Senate. The Bill
    Clerk also assigns numbers to all Senate bills and resolutions. All the
    information received in this office comes directly from the Senate
    floor in written form within moments of the action involved, so the
    Bill Clerk's Office is generally regarded as the most timely and most
    accurate source of legislative information.
    Legislative Activity
        The Bill Clerk's Office processed slightly fewer pieces of
    legislative materials and significantly more roll call votes during the
    first session of the 108th Congress versus the first session of the
    107th Congress. Below is a comparative summary of the first sessions of
    the 107th and the 108th Congresses:

    ------------------------------------------------------------------------
                                                   107th           108th
                                               Congress, 1st   Congress, 1st
                                                  Session         Session
    ------------------------------------------------------------------------
    Senate Bills............................           1,883           2,003
    Senate Joint Resolutions................              30              26
    Senate Concurrent Resolutions...........              93              86
    Senate Resolutions......................             198             283
    Amendments Submitted....................           2,697           2,231
    House Bills.............................             264             282
    House Joint Resolutions.................              17              20
    House Concurrent Resolutions............              91              78
    Measures Reported.......................             247             352
    Written Reports.........................             132             220
                                             -------------------------------
          Total Legislation.................           5,652           5,571
                                             ===============================
    Roll Call Votes.........................             380             459
    ------------------------------------------------------------------------

    Assistance from the Government Printing Office (GPO)
        The Government Printing Office has responded in a timely manner to
    the Secretary's request through the Bill Clerk's office for the
    printing of bills and reports, including the printing of priority
    matters for the Senate chamber. Specifically, the Secretary requested,
    through the Bill Clerk, that GPO reprint (star printed) 21 pieces of
    legislation during the course of the Congress, and that GPO expedite
    the printing of 31 measures for the Senate.
    Projects
        Amendment Tracking System.--In the fall of 2001, the Rules
    Committee approached our office with the task of scanning submitted
    amendments onto the Amendment Tracking System on LIS. The Rules
    Committee identified a need for Senate staff to have all amendments
    submitted in the Senate made available online shortly after being
    filed, especially during cloture. Rules Committee also requested that
    the Secretary through the Bill Clerk assess the feasibility of lifting
    the page limitation for scanning amendments onto the ATS Indexer. In
    response, the Bill Clerk contacted the Technology Development division
    of the Sergeant-At-Arms office to outline the technical requirements
    needed to implement such a request, and a draft outline was completed.
    Once the final version is delivered, the Secretary through the Bill
    Clerk, in consultation with the Legislative Clerk, will ascertain the
    legislative requirements needed in order for the staff to implement
    this request. The system must be designed and implemented without
    sacrificing critical services to the functioning of the Senate Chamber,
    specifically the amendment process.
        Electronic Ledger System.--Shortly after the September 2001 attacks
    and the subsequent anthrax attacks in the Capitol complex, the Bill
    Clerk identified the need to have an electronic version of the official
    Senate ledgers to ensure the integrity of the information recorded in
    the ledgers. The electronic version should be portable for use during
    possible emergency scenarios. The Technology Development division of
    the Sergeant-At-Arms is working to develop two separate functions of
    this electronic ledger system. One is an electronic data entry system
    which will mimic the layout of the current Senate ledgers printed by
    the Government Printing Office; the other is a search function. Both of
    these programs will be housed on a separate server to maintain the
    integrity of the ledger data. The electronic ledger system is currently
    under development.
                        2. office of captioning services
        Since 1991, the Office of Captioning Services has provided real-
    time captioning of Senate floor proceedings for the deaf and hard-of-
    hearing along with unofficial electronic transcripts of those
    proceedings to Senate offices via the Senate Intranet.
    General Overview
        Accuracy remains the watchword of this office. Overall caption
    quality is monitored through translation data reports, monitoring the
    captions in real-time and reviewing the caption files on the Senate
    Intranet.
    Technology Update
        A year-long review of all available real-time captioning technology
    for the office in fiscal year 2002 led to the acquisition of new real-
    time captioning technology. By the end of fiscal year 2003, windows-
    based software and paperless writing devices had been installed and all
    closed captioners had been trained and were on the air with the new
    technology.
        Voice recognition technology continues to improve and the Office of
    Captioning Services is on the cutting edge of testing and evaluating
    these products as they evolve. The pilot project to real-time caption
    Judiciary Committee hearings in fiscal year 2004 continues and a
    summary of the results will be provided at the completion of the
    project.
    Primary 2004 Objectives
        To assist in both the execution of the Judiciary Committee's real-
    time captioning pilot project and the preparation of a final report at
    the conclusion of the project for the Rules Committee, the Judiciary
    Committee and the Secretary of the Senate.
        To develop indefinite backup capability for assistance during
    sessions that may go around-the-clock.
                                3. daily digest
        The Senate Daily Digest serves seven principal functions:
      --To render a brief, concise and easy-to-read accounting of all
            official actions taken by the Senate in the Congressional
            Record section known as the Daily Digest;
      --To compile an accounting of all meetings of Senate committees,
            subcommittees, joint committees and committees of conference;
      --To enter all Senate and Joint committee scheduling data into the
            Senate's web-based scheduling application system. Committee
            scheduling information is also prepared for publication in the
            Daily Digest in three formats: Day-Ahead Schedule;
            Congressional Program for the Week Ahead; and the extended
            schedule which actually appears in the Extensions of Remarks
            section of the Congressional Record;
      --To enter into the Senate's Legislative Information System all
            official actions taken by Senate committees on legislation,
            nominations, and treaties;
      --To publish in the Daily Digest a listing of all legislation which
            has become public law;
      --To publish on the first legislative day of each month in the Daily
            Digest a ``Resume of Congressional Activity'' which includes
            all Congressional statistical information, including days and
            time in session; measures introduced, reported and passed; and
            rollcall votes. (See Attachment--Resume of Congressional
            Activity); and
      --To assist the House Daily Digest Editor in the preparation at the
            end of each session of Congress a history of public bills
            enacted into law and a final resume of congressional
            statistical activity.
    Committee Activity
        Senate committees held a total of 906 meetings during the first
    session of the 108th Congress, as contrasted with 961 meetings during
    the first session of the 107th Congress.
    Chamber Activity
        The Senate was in session a total of 167 days, for a total of 1,454
    hours and 5 minutes. There were 3 quorum calls and 459 record votes. (A
    20-Year Comparison of Senate Legislative Activity follows).
    Computer Activities
        The Digest office continues to work closely with Senate computer
    staff to refine the LIS/DMS system. Under the direction of the Editor,
    the computer center staff was able to create two new reports for the
    Daily Digest. Report 82 is a compilation of Treaties Approved in Digest
    format, and Report 83 is a compilation of Written Executive Reports of
    Committees in Digest format. The Digest is also pleased to report that
    all refinements made to the Senate Committee Scheduling application
    have been successfully implemented, including the capability of
    entering multiple documents. The committee scheduling application was
    developed back in 1999 as a server-based web-enabled application that
    is browser accessible to all Senate offices on Capitol Hill. It was
    designed to replace the committee scheduling functions and reports that
    were supported by the mainframe-based Senate Legis System.
    Assistance from the Government Printing Office
        The Daily Digest continues to send the complete publication at the
    end of each day to the Government Printing Office (GPO) electronically.
    The Editor, Assistant Editor, and Committee Scheduling Coordinator
    function coordinate in preparing Digest copy on computers, storing and
    sharing information, permitting prompt editing, and transferring the
    final to floppy disc. The Digest continues the practice of sending a
    disc along with a duplicate hard copy to GPO, even though GPO receives
    the Digest copy by electronic transfer long before hand delivery is
    completed adding to the timeliness of publishing the Congressional
    Record. The Digest office is comfortable with this procedure, both to
    allow the Digest Editor to physically view what is being transmitted to
    GPO, and to allow GPO staff to have a comparable final product to cross
    reference.
        The Daily Digest continues the practice of discussing with GPO
    problems encountered with the printing of the Digest, and are pleased
    to report that with the onset of electronic transfer of the Digest
    copy, occurrences of editing corrections or transcript errors are
    infrequent.
                               4. enrolling clerk
        The Enrolling Clerk prepares, proofreads, corrects, and prints all
    Senate passed legislation prior to its transmittal to the House of
    Representatives, the National Archives, the Secretary of State, the
    United States Claims Court, and the White House.
        During 2003, 62 enrolled bills (transmitted to the President) and 8
    concurrent resolutions (transmitted to Archives) were prepared,
    printed, proofread, corrected, and printed on parchment.
        A total of 593 additional pieces of legislation in one form or
    another, were passed or agreed to by the Senate, all processed from
    this office.
                               5. executive clerk
        The Executive Clerk prepares an accurate record of actions taken by
    the Senate during executive sessions (proceedings on nominations and
    treaties) which is published as the Executive Journal at the end of
    each session of Congress. The Executive Clerk also prepares daily the
    Executive Calendar as well as all nomination and treaty resolutions for
    transmittal to the President. Additionally, the Executive Clerk's
    office processes all executive communications, Presidential messages
    and petitions and memorials.
    Nominations
        During the first session of the 108th Congress, there were 1,201
    nomination messages sent to the Senate by the President, transmitting
    28,423 nominations to positions requiring Senate confirmation and 13
    messages withdrawing nominations previously sent to the Senate during
    the first session of the 108th Congress. Of the total nominations
    transmitted, 600 were for civilian positions other than lists in the
    Foreign Service, Coast Guard, NOAA, and Public Health Service. In
    addition, there were 2,578 nominees in the ``civilian list'' categories
    named above. Military nominations received this session totaled 25,245
    (9,068--Air Force; 6,012--Army; 7,752--Navy; and 2,413--Marine Corps).
    The Senate confirmed 21,580 nominations this session. Pursuant to the
    provisions of paragraph six of Senate Rule XXXI, 18 nominations were
    returned to the President during the first session of the 108th
    Congress.
    Treaties
        There were 14 treaties transmitted to the Senate by the President
    during the first session of the 108th Congress for its advice and
    consent to ratification, which were ordered printed as treaty documents
    for the use of the Senate (Treaty Doc. 108-1 through 108-14). The
    Senate gave its advice and consent to 11 treaties with various
    conditions, declarations, understandings and provisos to the
    resolutions of advice and consent to ratification.
    Executive Reports and Roll Call Votes
        There were 8 executive reports relating to treaties ordered printed
    for the use of the Senate during the first session of the 108th
    Congress (Executive Report 108-1 through 108-8). The Senate conducted
    78 roll call votes in executive session, all on or in relation to
    nominations and a treaty.
    Executive Communications
        For the first session of the 108th Congress, 5,352 executive
    communications, 337 petitions and memorials and 58 Presidential
    messages were received and processed.
    Legislative Information System (LIS) Update
        Our staff consulted with the Senate Computer Center (SCC) during
    the year concerning the ongoing improvements to the LIS pertaining to
    the processing of nominations, treaties, executive communications,
    presidential messages and petitions and memorials. Working with the
    Government Printing Office (GPO) and SCC staff, a process was developed
    last year for the printing of the Executive Journal by creating a PDF
    file. This year the Secretary's Information Systems staff provided the
    Executive Clerk's office with a new HP Digital Sender that has proven
    to be an even faster and more efficient process for sending the PDF
    file of the Executive Journal to GPO for printing.
        In the future, the Senate Computer Center will develop the
    Executive Calendar in a more ``user friendly'' program that will be
    beneficial to our office and the SAA computer support staff. In the
    meantime, the text field for placing unanimous consent agreements on
    the Executive Calendar was redesigned to provide the Executive Clerk
    more control in editing the Calendar in 2004.
                                6. journal clerk
        The Journal Clerk takes notes of the daily legislative proceedings
    of the Senate in the ``Minute Book'' and prepares a history of bills
    and resolutions for the printed Senate Journal as required by Article
    I, Section V of the Constitution. The Senate Journal is published each
    calendar year.
        In 2003, the Journal Clerk completed the production of the 903-page
    2002 Journal of the proceedings of the Senate, the annual project as
    required by the Constitution. The Journal staff take 90 minute turns at
    the rostrum in the Senate Chamber, noting by hand for inclusion in the
    Minute Book (i) all orders (entered into by the Senate through
    unanimous consent agreements), (ii) legislative messages received from
    the President of the United States, (iii) messages from the House of
    Representatives, (iv) legislative actions as taken by the Senate
    (including motions made by Senators, points of order raised, and roll
    call votes taken), (v) amendments submitted and proposed for
    consideration, (vi) bills and joint resolutions introduced, and (vii)
    concurrent and Senate resolutions as submitted. These notes of the
    proceedings are then compiled in electronic form for eventual
    publication of the Journal at the end of each calendar year.
        Over the past two years, the Sergeant at Arms' Technology
    Development Service Department, under the guidance of the Journal
    Clerk, has developed the LIS Senate Journal Authoring System. This
    system provides a much needed, supportable system for authoring and
    publication of the Senate Journal, in place of the decade-old software
    currently used for production. The system was installed for user
    evaluation in March 2004, and will be released for use by the end of
    April. The system's functionality was successfully exercised during the
    compilation of the 1,146 page 2003 Journal, which was sent to the
    Government Printing Office for printing at the end of March.
                              7. legislative clerk
        The Legislative Department provides support essential to Senators
    in carrying out their daily chamber activities as well as the
    constitutional responsibilities of the Senate. The Legislative Clerk
    sits at the Secretary's desk in the Senate Chamber and reads aloud
    bills, amendments, the Senate Journal, Presidential messages, and other
    such materials when so directed by the Presiding Officer of the Senate.
    The Legislative Clerk calls the roll of members to establish the
    presence of a quorum and to record and tally all yea and nay votes.
    This office prepares the Senate Calendar of Business, published each
    day that the Senate is in session, and prepares additional publications
    relating to Senate class membership and committee and subcommittee
    assignments. The Legislative Clerk maintains the official copy of all
    measures pending before the Senate and must incorporate into those
    measures any amendments that are agreed to. This office retains custody
    of official messages received from the House of Representatives and
    conference reports awaiting action by the Senate. This office is
    responsible for verifying the accuracy of information entered into the
    LIS system by the various offices of the Secretary.
        Additionally, the Legislative Clerk acts as supervisor for the
    Legislative Department providing a single line of communication to the
    Assistant Secretary and Secretary, and is responsible for overall
    coordination, supervision, scheduling, and cross-training of the
    department's eight offices.
        Underscoring the importance of planning for the continuity of
    Senate business, under both normal and possibly extenuating
    circumstances, cross-training is strongly emphasized among the
    Secretary's legislative staff. Currently, 50 percent of the legislative
    staff have been cross-trained between their specialities.
    Summary of Activity
        The first session of the 108th Congress completed its legislative
    business and adjourned sine die on December 9, 2003. During 2003, the
    Senate was in session 167 days, over 1,454 hours and conducted 459 roll
    call votes. There were 352 measures reported from committees, 590 total
    measures passed, and 153 items remained on the Calendar at the time of
    adjournment. In addition, 2,231 amendments were processed.
    Legislative Information System (LIS) Enhancement
        In an effort to monitor and improve the Legislative Information
    System (LIS), the Legislative Clerk acts as the liaison between
    legislative clerks and technical operations staff of the Sergeant at
    Arms. The Legislative Clerk also reviews, prioritizes, and forwards
    change requests from the clerks to the technical operations staff. Over
    the past year, 36 change requests submitted by the clerks to improve
    the system have been implemented.
                        8. official reporters of debates
        The Official Reporters of Debates prepare and edit for publication
    in the Congressional Record a substantially verbatim report of the
    proceedings of the Senate, and serve as liaison for all Senate
    personnel on matters relating to the content of the Record. The
    transcript of proceedings, submitted statements and legislation are
    transmitted in hard copy and electronically throughout the day to the
    Government Printing Office (GPO).
        The office works diligently to assure that the electronic
    submissions to GPO are timely and efficient. The Official Reporters
    encourage offices to make submissions to the Record by electronic
    means, which results in both a tremendous cost saving to the Senate and
    minimizes keyboard errors.
                               9. parliamentarian
        In 2003, the Parliamentarian's Office continued to perform its
    extensive legislative duties. These include advising the Chair,
    Senators and their staff, committee staff, House members and their
    staffs, administration officials, the media and members of the general
    public, on all matters requiring an interpretation of the Standing
    Rules of the Senate, the precedents of the Senate, unanimous consent
    agreements, as well as provisions of public law affecting the
    proceedings of the Senate. The Parliamentarians work in close
    cooperation with the Senate leadership and their floor staffs in
    coordinating all of the business on the Senate floor. The
    Parliamentarians work closely with the staff of the Vice President of
    the United States and the Vice President himself whenever he performs
    his duties as President of the Senate. The Parliamentarians monitor all
    proceedings on the floor of the Senate, advise the Presiding Officer on
    the competing rights of the Senators on the floor, and advise all
    Senators as to what is appropriate in debate.
        The Parliamentarians also keep track of the amendments offered to
    the legislation pending on the Senate floor, and monitor them for
    points of order. The Parliamentarians reviewed more than 1,000
    amendments during 2003 to determine if they met various procedural
    requirements. The Parliamentarians also reviewed thousands of pages of
    conference reports to determine what provisions could appropriately be
    included therein.
        The Office of the Parliamentarian is responsible for the referral
    to the appropriate committees of all legislation introduced in the
    Senate, all legislation received from the House, and communications
    received from the executive branch, state and local governments, as
    well as private citizens. In order to perform this responsibility, the
    Parliamentarians do extensive legal and legislative research. During
    2003, the Parliamentarian and his assistants referred 2,467 measures
    and 5,747 communications to the appropriate Senate committees. The
    office worked extensively with Senators and their staffs to advise them
    of the jurisdictional consequences of particular drafts of legislation,
    and evaluated the jurisdictional effect of proposed modifications in
    drafting. The office continues to address the difficult jurisdictional
    questions posed by the creation of the massive new Department of
    Homeland Security, which now has responsibility for hundreds of issues
    previously in the jurisdiction of other Senate committees. The
    Parliamentarians have made dozens of decisions about the committee
    referrals of nominations for new positions created in this department,
    nominations for positions which existed before this department was
    created but whose responsibilities have changed, and hundreds of
    legislative proposals concerning the department's responsibilities.
        Additionally, in the last three years, rules relating to
    legislation on appropriations bills, and the scope of conference
    reports on all bills were reinstated. This has opened up hundreds of
    Senate amendments to renewed scrutiny by the Parliamentarians, and has
    meant that the Parliamentarians now have the responsibility of
    potentially reviewing every provision of every conference report
    considered by both Houses of Congress.
        The Parliamentarians have taken the lead in the Senate to analyze
    the need for emergency procedural authorities of Congress generally,
    and the Senate in particular.

                                                                            YEARLY COMPARISON OF SENATE LEGISLATIVE ACTIVITY
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                                                              1984          1985          1986          1987          1988          1989          1990          1991          1992          1993
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    Senate Convened.....................................          1/25           1/3          1/21           1/6          1/25           1/3          1/23           1/3           1/3           1/5
    Senate Adjourned....................................         10/12         12/20         10/18         12/22         10/21         11/21         10/28        1/3/92          10/9         11/26
    Days in Session.....................................           131           170           143           170           137           136           138           158           129           153
    Hours in Session....................................        94025"      1,25231"      1,27815"      1,21452"      1,12648"      1,00319"      1,25014"      1,20044"      1,09109"      1,26941"
    Average Hours per Day...............................           7.2           7.4           8.9           7.1           8.2           7.4           9.1           7.6           8.5           8.3
    Total Measures Passed...............................           726           583           747           616           814           605           716           626           651           473
    Roll Call Votes.....................................           181           381           359           420           379           312           326           280           270           395
    Quorum Calls........................................            19            20            16            36            26            11             3             3             5             2
    Public Laws.........................................           408           240           424           240           473           240           244           243           347           210
    Treaties Ratified...................................            20             6            12             3            15             9            15            15            32            20
    Nominations Confirmed...............................        41,726        55,918        39,893        46,404        42,317        45,585        42,493        45,369        30,619        38,676
    Average Voting Attendance...........................         91.95         94.64         95.72         94.03         91.58          98.0         97.47         97.16          95.4          97.6
    Sessions Convened Before 12 Noon....................           106           119           117           131           120            95           116           126           112           128
    Sessions Convened at 12 Noon........................            18            38            25            12            12            14             4             9             6             9
    Sessions Convened after 12 Noon.....................             7            13             1            25             5            27            17            23            10            15
    Sessions Continued after 6 p.m......................            81           104            92            97            37            88           100           102            91           100
    Sessions Continued after 12 Midnight................            11             7            15             6             7             9            13             6             4             9
    Saturday Sessions...................................             1             3             2             3  ............             1             3             2             2             2
    Sunday Sessions.....................................  ............             1  ............             1  ............  ............             2  ............  ............  ............
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                                                                       YEARLY COMPARISON OF SENATE LEGISLATIVE ACTIVITY--Continued
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              1994          1995          1996          1997          1998          1999          2000          2001          2002          2003
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
    Senate Convened.....................................          1/25           1/4           1/3           1/3          1/27           1/6          1/24           1/3          1/23           1/7
    Senate Adjourned....................................         12/01        1/3/96          10/4         11/13         10/21         11/19         12/15         12/20         11/20          12/9
    Days in Session.....................................           138           211           132           153           143           162           141           173           149           167
    Hours in Session....................................      1,24333"      1,83910"      1,03645"      1,09307"      1,09505"      1,18357"      1,01751"      1,23615"      1,04223"      1,45405"
    Average Hours per Day...............................           9.0           8.7           7.8           7.1           7.7           7.3           7.2           7.1           7.0           8.7
    Total Measures Passed...............................           465           346           476           386           506           549           696           425           523           590
    Roll Call Votes.....................................           329           613           306           298           314           374           298           380           253           459
    Quorum Calls........................................             6             3             2             6             4             7             6             3             2             3
    Public Laws.........................................           255            88           245           153           241           170           410           136           241           198
    Treaties Ratified...................................             8            10            28            15            53            13            39             3            17            11
    Nominations Confirmed...............................        37,446        40,535        33,176        25,576        20,302        22,468        22,512        25,091        23,633        21,580
    Average Voting Attendance...........................         97.02         98.07         98.22         98.68         97.47         98.02         96.99         98.29         96.36         96.07
    Sessions Convened Before 12 Noon....................           120           184           113           115           109           118           107           140           119           133
    Sessions Convened at 12 Noon........................             2            15            12            31            17            25            10            12             4             9
    Sessions Convened after 12 Noon.....................            17            12             7             7             2            19            24            21            23            23
    Sessions Continued after 6 p.m......................           100           158            88            96            93           113            94           108           103           134
    Sessions Continued after 12 Midnight................             7             3             1             2             3             8
    Saturday Sessions...................................             3             5             1             1             1             3             1             3             1
    Sunday Sessions.....................................  ............             3  ............             1  ............  ............             1  ............  ............             1
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    Prepared by the Senate Daily Digest--Office of the Secretary.

                    financial operations: disbursing office
                         disbursing office organization
        The mission of the Senate Disbursing Office is to provide efficient
    and effective central financial and human resource data management,
    information and advice to the distributed, individually managed
    offices, and to Members and employees of the United States Senate. To
    accomplish this mission, the Senate Disbursing Office manages the
    collection of information from the distributed accounting locations in
    the Senate to formulate and consolidate the agency level budget,
    disburse the payroll, pay the Senate's bills, prepare auditable
    financial statements, and provide appropriate counseling and advice.
    The Senate Disbursing Office collects information from Members and
    employees that is necessary to maintain and administer the retirement,
    health insurance, life insurance, and other central human resource
    programs in order to provide responsive, personal attention to Members
    and employees on a confidential basis. The Senate Disbursing Office
    also manages the distribution of central financial and human resource
    information to the individual Member Offices, Committees, and
    Administrative and Leadership offices in the Senate while maintaining
    the appropriate control of information for the protection of individual
    Members and Senate employees.
        To support the mission of the Senate Disbursing Office, the
    organization is structured in a manner that is intended to enhance its
    ability to provide quality work, maintain a high level of customer
    service, promote good internal controls, efficiency and teamwork, and
    provide for the appropriate levels of supervision and management. The
    long-term financial needs of the Senate are best served by an
    organization staffed with highly trained professionals who possess a
    high degree of institutional knowledge, sound judgement, and
    interpersonal skills that reflect the unique nature of the United
    States Senate.
                   deputy for benefits and financial services
        The responsibility of this position is to serve as the Senate's
    expert on Federal retirement and benefits, payroll, and front office
    processes. Coordination of the interaction among the Financial
    Services, Employee Benefits, and Payroll sections is also a major
    responsibility of the position. Planning and project management of new
    computer systems and programs is a further responsibility. Ensuring
    that job processes are efficient and up to date, modifying computer
    support systems, implementing regulatory and legislated changes, and
    designing and producing up to date forms for use in all three sections
    are additional areas of responsibility.
    2003 Accomplishments and activities
        Normal computer systems do not account for employees over 99 years
    of age, and consequently, the DO life insurance computer data elements
    have been expanded to accommodate 100 years of age. New age bands and
    deduction rates were instituted by regulation and our computer systems
    were modified to accommodate the new requirements.
        OPM mandated that a new calculation routine for the Civil Service
    Retirement-Offset deduction and new reporting requirements took effect
    in January, 2003. Much of the work was performed in late 2002 and the
    retirement record changes, the new deductions, and the new reports ran
    perfectly for the first payroll of 2003. Two new computer screens were
    built to track the new Offset CSRS deductions at 7.5 percent .
        As part of an ongoing effort to prevent payroll errors, an edit was
    added so that an account line with a future stop date cannot be
    deleted. However, this was removed the next month as it was determined
    that the high volume of alterations required due to offices changing
    pay increases, terminations, and transfers, necessitated the ability to
    delete future lines.
        Computer system menus for update and inquiry were altered early in
    the year to accommodate all of the new screens and the many changes
    required for implementation later in the year.
        To fill a critical need of the Continuity of Operations Plan, a
    document imaging project is underway to place employees' Official
    Personnel Folders in an easily accessible electronic format. This new
    system is complete, and procedures are currently being finalized for
    implementation this summer.
        In mid-2003, a reexamination was done of both the Political Fund
    Designee and S. Res. 110 (GS-15 Financial Disclosure) tracking and
    reporting processes. The Office of Public Records and Select Committee
    on Ethics use these reports extensively. By refining and extensively
    updating processes initiated in 1975, reports now provide what each
    office needs on a much more timely basis. Both Public Records and
    Ethics approved of the final product.
        Flexible Spending Accounts were announced in December, and a
    contract was awarded in March 2003. Work began immediately to add the
    two new FSAs (healthcare and dependent care) by the July 1 effective
    date. Automated processes to load the data received by the Senate from
    the FSA administrating agency, to deduct and report the monies on a tax
    exempt basis, and transmit monies and reports to the administrating
    agency, were completed on time.
        New TSP Catch Up contributions for employees over 50 passed in late
    2002 and regulatory requirements were received in February 2003.
    Project planning began immediately. This project required tax deferred
    deductions be withheld separate from the TSP program, reported
    differently and reported separately. A completely new screen was
    required. The project was completed and worked flawlessly on the
    required date of August 1.
        The Payroll Information Notice (pay stub) was completely redesigned
    in mid year to provide much more room to accommodate the many new
    deductions employees might have with the new programs established in
    2003. The various changes provided almost 40 percent more room. New
    deductions include Long Term Healthcare, Student Loan Repayment
    Program, Flexible Spending Accounts, and TSP Catch Up contributions.
    New PINs went out with the May 5 pay date. In October, a project was
    initiated to replace the current payroll system's OLAG programming with
    a completely new and updated version using BMS programming. This will
    eventually ensure continued operations on the newest mainframe
    operating systems, and to enable future payroll enhancements involving
    the web, employee self-service and on-line review of payroll reports by
    Senate offices. Work is scheduled to be completed by July 1, 2004.
              front counter--administrative and financial services
        The Front Counter is the main service area of all general Senate
    business and financial activity. The Front Counter maintains the
    Senate's internal accountability of funds used in daily operations.
    Reconciliation of such funds is executed on a daily basis. The Front
    Counter provides training to newly authorized payroll contacts along
    with continuing guidance to all contacts in the execution of business
    operations. It is the receiving point for most incoming expense
    vouchers, payroll actions, and employee benefits related forms, and is
    the initial verification point to ensure that paperwork received in the
    Disbursing Office conforms to all applicable Senate rules, regulations,
    and statutes. The Front Counter is the first line of service provided
    to Senate Members, Officers, and employees. All new Senate employees
    (permanent and temporary) who will work in the Capitol Hill Senate
    offices are administered the required oath of office and personnel
    affidavit and provided verbal and written detailed information
    regarding their pay and benefits. Authorization is certified to new and
    state employees for issuance of their Senate I.D. card. Advances are
    issued to Senate staff authorized for an advance for official Senate
    travel. Cash and check advances are entered and reconciled in the Funds
    Advance Tracking System (FATS). Repayment of travel advances is
    executed after processing of certified expenses is complete. Travelers'
    checks are available on a non-profit basis to assist the traveler.
    Numerous inquiries are handled daily, ranging from pay, benefits,
    taxes, voucher processing, reporting, laws, and Senate regulations, and
    must always be answered accurately and fully to provide the highest
    degree of customer service. Cash and checks received from Senate
    entities as part of their daily business are handled through the Front
    Counter and become part of the Senate's accountability of federally
    appropriated funds and are then processed through the Senate's general
    ledger system.
    2003 Accomplishments and activities
        The Front Counter processed approximately 2,200 cash advances,
    totaling approximately $1.4 million and initialized check/direct
    deposit advances, totaling approximately $730,000.
        Received and processed more than 30,000 checks, totaling over
    $3,600,000.
        Administered Oath and Personnel Affidavits to more than 3,400 new
    Senate staff and advised them of their benefits.
        Maintained brochures for 11 federal health carriers and distributed
    approximately 5,000 brochures to staff during the annual FEHB Open
    Season and to new employees.
        Provided 33 training sessions to new office managers.
        The major emphasis during this year was the training for the 11 new
    Senate offices into the operations of the Disbursing Office. Training
    was provided to new office managers and guidance provided in their
    business transactions with the Disbursing Office.
        The only reconciliations of the Senate accountability were
    confirmed by a General Accounting Office audit performed in June 2003
    at the request of the Secretary of the Senate. Front Office operations
    continued to provide the Senate community with prompt, courteous, and
    informative advice regarding Disbursing operations.
                                payroll section
        The Payroll Section maintains the Human Resources Management System
    and is responsible for the following: processing, verifying, and
    warehousing all payroll information submitted to the Disbursing Office
    by Senators for their personal staff, by Chairmen for their committee
    staff, and by other elected officials for their staff; issuing salary
    payments to the above employees; maintaining the Automated Clearing
    House (ACH) FEDLINE facilities for the normal transmittal of payroll
    deposits to the Federal Reserve; distributing the appropriate payroll
    expenditure and allowance reports to the individual offices; issuing
    the proper withholding and agency contributions reports to the
    Accounting Department; and transmitting the proper Thrift Savings Plan
    (TSP) information to the National Finance Center (NFC), while
    maintaining earnings records for distribution to the Social Security
    Administration, and maintaining employees' taxable earnings records for
    W2 statements, prepared by this section. The Payroll Section is also
    responsible for the payroll expenditure data portion of the Report of
    the Secretary of the Senate.
    2003 Accomplishments and Activities
        Funding for Calendar Year 2003 began as a Continuing Resolution.
    This restriction of spending delayed the January 1, 2003 Cost of Living
    increase. In January, the passage of the Legislative Branch
    Appropriations Bill gave the U.S. Senate a 3.1 percent Cost of Living
    increase retroactive to January 1, 2003. The passage of the Omnibus
    Appropriations Bill in March 2003 provided the Senate with a final Cost
    of Living increase of 4.27 percent retroactive January 1, 2003. While
    the multitude of cost of living transactions taxed the resources of the
    Payroll Section for a five month period, all pay adjustments were done
    in an accurate and timely manner.
        In late 2002 and early 2003, Payroll was heavily involved in the
    testing of the new CSRS-Offset deductions and reports. Attention to
    detail from the Payroll Section helped debug programs and streamline
    the new processes.
        During this same time period the Payroll Section maintained its
    schedule of processing TSP Open Season forms. Senate employees for the
    most part were taking full advantage of the increase in the cap for TSP
    deductions, making the most of 13 percent/$12,000 maximums. The TSP
    Catch-Up program was implemented in the fall of 2003. This program
    allowed employees who are 50 or older to deposit additional funds into
    their personal TSP. Payroll staff were involved in all of the testing
    performed with the new screen, new deductions, and reports.
        During the summer of 2003 the National Finance Center implemented
    its EnTrust Financial Management System allowing the agencies to have
    online update and correction abilities. Employees of our Payroll
    Section were trained by the Department of Agriculture to use the on-
    line payments and corrections system.
        The Student Loan Program (SLP) continued into 2003. The new year
    brought new challenges to the Payroll Section. The time consuming
    methods of third party loan processing created needless delays of
    notification for loan payoffs. The Payroll Section had to develop
    procedures for returning overpayment of loans to the loan program
    allocation refund, return the respective over- withholding of Federal,
    State, FICA, and Medicare taxes to the employees involved. Regulations
    were enforced to alleviate these problems. Payments for loans to be
    paid off during the Agreement Year of a SLP are now spread out over the
    full year, eliminating these overpayments.
        The Payroll Section also assisted in developing methods for
    processing Long Term Care and in July 2003 implemented the FSA
    deductions system. These additional benefit plans were passed to
    provide additional coverage to our normal FEHB deduction processing
    system. Each of the above new deductions required research into the tax
    implications of each deduction. Once the plan was implemented further
    research was required for the proper modification of W-2s for calendar
    year 2003. Payroll staff were involved in testing and verification
    during the implementation of these systems. The Payroll Supervisor was
    part of the project management team during the planning portions and
    during final installation.
        Payroll filing systems and checking processes were updated to
    improve quality control. These changes help minimize errors in an
    environment where payroll changes are much more common than in most
    other government and private institutions. In addition, with
    considerable staff changes in 2003, new training procedures for the
    Payroll Section were implemented and have resulted in more
    knowledgeable staff and reductions in errors.
                           employee benefits section
        The primary responsibilities of the Employee Benefits Section (EBS)
    are administration of health insurance, life insurance and all
    retirement programs for Members and employees of the Senate. This
    includes counseling, processing of paperwork, research, dissemination
    of information and interpretation of benefits laws and regulations. In
    addition, the sectional work includes research and verification of all
    prior federal service and prior Senate service for new and returning
    appointees. EBS provides this information for payroll input and once
    Official Personnel Folders and Transcripts of Service are received,
    verifies the accuracy of the information provided and reconciles as
    necessary. Transcripts of Service, including all official retirement
    and benefits documentation, are provided to other federal agencies when
    Senate Members and staff are hired elsewhere in the government. EBS
    processes employment verifications for loans, the Bar Exam, the FBI,
    OPM, and the Department of Defense, among others. Unemployment claim
    forms are completed, and employees are counseled on their eligibility.
    Department of Labor billings for unemployment compensation paid to
    Senate employees are reviewed in EBS and submitted by voucher to the
    Accounting Section for payment. Designations of Beneficiary for FEGLI,
    CSRS, FERS, and unpaid compensation are filed and checked by EBS.
    2003 Accomplishments and activities
        The year began with EBS finalizing retirement estimates and
    processing the many retirement cases associated with outgoing Senators
    and their staffs, as well as those staff on committees who were
    affected by the changes. Approximately 170 retirement cases were
    processed throughout 2003, including 10 death cases.
        During 2003 the new Federal Flexible Spending Account (FSA) Program
    was introduced and implemented government-wide. EBS worked diligently
    to become educated in all aspects of the program. This required
    constant interaction with OPM and the FSA plan administrator, SHPS, to
    establish, understand and implement procedures for the plan. Employee
    Benefits staff worked as part of the Project Team to apply
    modifications and establish parameters for the implementation of the
    program. Effective introduction to and participation in the FSA program
    required extensive notification to employees, which included several
    mail-outs, electronic notifications and use of streaming video on
    Webster. Two Open Seasons were conducted, along with an educational
    seminar on the FSA program and recurring FSA seminar broadcasts on
    Senate Cable TV. EBS also developed and disbursed educational materials
    for employees.
        During our anthrax displacement, EBS discovered that the most
    essential information that could not be accessed off-site was employee
    personnel folders. Based on these lessons, EBS has worked with the
    Deputy for Benefits and Financial Services as part of the Project Team
    to outline the needs and parameters required for development and
    implementation of a document imaging system for use in electronically
    reproducing employee personnel folders. Through extensive meetings,
    testing and feedback, the imaging system has been developed and is
    ready for implementation. This system will allow computer-based access
    to employee personnel folders as well as the ability to access them
    from an off-site facility.
        Based on the continued military operations and the call to active
    duty of military reservists, the volume of Senate employees being
    placed in a Leave Without Pay (LWOP) status and subsequently returned
    to pay status was elevated throughout 2003. Counseling and
    administration of their retirement and benefits was handled by EBS.
        Effective in 2003, OPM announced a modification to the way
    retirement deductions were to be reported for employees subject to
    Social Security and CSRS. Compliance with this change required
    coordination with the Senate Computer Center for programming changes
    and screen development, followed by debugging and subsequent
    implementation of the new withholding and reporting format.
        Based on new legislation, the Thrift Savings Plan (TSP) implemented
    a new provision enabling employees age 50+ to contribute additional
    ``Catch-up'' contributions to their TSP accounts. This enhancement
    required a great deal of interaction with the Senate Computer Center to
    apply modifications and establish parameters for the implementation of
    the program. EBS worked to become a resource on the aspects of Catch-up
    contributions and educational materials and notices were created and
    supplied to eligible participants.
        Mid-year, the TSP implemented their long-awaited new record keeping
    system, which created many questions and requests for assistance from
    Senate employees as well as from offices on behalf of their
    constituents. Additionally, there were two TSP Open Seasons in 2003
    during which employees could change their rate of contribution. The
    number of employee changes was higher during the end of year Open
    Season, as the allowable rates of contribution increased.
        The annual FEHB Open Season was held and approximately 500
    employees changed plans. These changes were processed and reported to
    carriers in record time. This year, the DO offered an exciting new tool
    for Senate employees as the Checkbook on-line Guide to Health Plans was
    made available to research and compare FEHB plans. This tool will
    remain available to staff throughout the year, and may become an annual
    purchase. Feedback received on the Guide was very positive, and as
    awareness increases, more users are anticipated. Once again, the DO
    hosted a FEHB Open Season Health Fair, which was attended by about 600
    employees. As an additional service, it was open to all other federal
    employees on the Hill, including House, Capitol Police, Architect of
    the Capitol and Senate Restaurant employees. In addition to having
    health plan representatives available to provide information and answer
    questions, representatives from FSA Feds and Long Term Care Insurance
    were in attendance as well.
        EBS continues to upgrade the information available on the DO
    Webster site and has added more downloadable forms, routinely making
    use of the newer video technologies and links. In addition, EBS has
    been developing many computer-based forms and calculators for use in
    providing benefits information and estimates.
        Two detailed Power Point retirement seminars on CSRS and FERS were
    developed and conducted for interested Senate staff. The seminars were
    well attended and well received. Additionally EBS staff regularly
    provided a panel participant for the monthly New Staff Orientation
    seminars and quarterly Senate Services Fairs held by the Office of
    Education and Training.
        Interagency meetings were attended with time being spent on the
    implementation of the FSA Program, the CLER program, and the continuing
    TSP program changes and enhancements.
        There was a great deal of employee turnover in early 2003. New
    Members appointed numerous employees from the House and Executive
    Branch, and many other employees left with outgoing Members, several of
    whom were appointed to positions in the Executive Branch. This caused a
    dramatic increase in appointments to be researched and processed,
    retirement records to be closed out, termination packages of benefits
    information to be compiled and mailed out, and health insurance
    enrollments to be processed. Transcripts of service for employees going
    to other federal agencies, and other tasks associated with employees
    changing jobs were at a high level this year. These required prior
    employment research and verification, new FEHB, FEGLI, FSA, CSRS, FERS
    and TSP enrollments, and the associated requests for backup
    verification.
        Mortgage rates kept employment verifications coming in at a rapid
    pace, averaging over 100 per month. Unemployment verifications were
    especially high early in the year and remained constant throughout the
    year. Telephone inquiries, though not specifically tracked, continued
    at record levels.
                     disbursing office financial management
        Headed by the Deputy for Financial Management, the mission of
    Disbursing Office Financial Management (DOFM) is to coordinate all
    central financial policies, procedures, and activities to process and
    pay expense vouchers within reasonable time frames, to produce an
    auditable consolidated financial statement for the Senate and to
    provide professional customer service, training and confidential
    financial guidance to all Senate accounting locations. In addition, the
    Financial Management group is responsible for the compilation of the
    annual operating budget of the United States Senate for presentation to
    the Committee on Appropriations as well as for the formulation,
    presentation and execution of the budget for the Senate. On a
    semiannual basis, this group is also responsible for the compilation,
    validation and completion of the Report of the Secretary of the Senate.
    DOFM is segmented into three functional departments: Accounting,
    Accounts Payable, and Budget. The Deputy coordinates the activities of
    the three functional departments, establishes central financial
    policies and procedures, acts as the primary liaison to the Human
    Resources Administrator, and carries out the directives of the
    Financial Clerk and the Secretary of the Senate.
                             accounting department
        During fiscal year 2003, the Accounting Department approved nearly
    80,000 expense reimbursement vouchers, processed 1,300 deposits for
    items ranging from receipts received by the Senate operations, such as
    the Senate's Revolving Funds, to canceled subscription refunds from
    Member Offices. The number of vouchers that the Accounting Department
    approves decreased over fiscal year 2002 numbers due to the Senate
    Committee on Rules and Administration authorizing the Accounts Payable
    Department to sanction vouchers of $35 or less. General ledger
    maintenance also prompted the entry of thousands of adjustment entries
    that include all appropriation and allowance funding limitation
    transactions, all accounting cycle closing entries, and all non-voucher
    reimbursement transactions such as payroll adjustments, stop payment
    requests, travel advances and repayments, and limited payability
    reimbursements.
        This year the Accounting Department assisted in the validation of
    various system upgrades and modifications, including the testing
    required to implement the new approval path for the Rules Committee's
    on-line sanctioning. During January 2003, the Accounting Department
    with assistance from our contractor, BearingPoint, completed the 2002
    year-end process to close and reset revenue, expense and budgetary
    general ledger accounts to zero. At the beginning of 2003 and during
    the month of June 2003, we successfully tested and implemented in
    Federal FAMIS the first two document purge processes. Further, the
    financial file rollover was performed to update FAMIS' tables and
    create the new index codes needed to accommodate data for fiscal year
    2004.
        The U.S. Department of the Treasury changed their end of month
    reporting deadlines for agencies twice during fiscal year 2003; from
    the 7th to the 5th business day and then from the 5th to the 3rd
    business day of the following month. The second change on the Treasury
    reporting deadline was a challenge for DOFM since the Senate's end of
    the month payroll is a paid on the 5th of the following month. In order
    to comply with this requirement, the Accounting Department, assisted by
    BearingPoint, tested and implemented a change in how and when payroll
    is reported with the non-payroll expenses. The changes to comply with
    Treasury's accelerated reporting requirement were implemented in July.
        The Department of the Treasury's monthly financial reporting
    requirements include a Statement of Accountability that details all
    increases and decreases to the accountability of the Secretary of the
    Senate, such as checks issued during the month and deposits received,
    as well as a detailed listing of cash on hand. Also on a monthly basis,
    the Statement of Transactions According to Appropriations, Fund and
    Receipt Accounts that summarizes all activity at the appropriation
    level of all monies disbursed by the Secretary of the Senate through
    the Financial Clerk of the Senate is reported to the Department of the
    Treasury. All activity by appropriation account is reconciled with the
    Department of the Treasury on a monthly and annual basis. The annual
    reconciliation of the Treasury Combined Statement is also used in the
    reporting to the Office of Management and Budget (OMB) as part of the
    submission of the annual operating budget of the Senate.
        This year, the Accounting Department transmitted all Federal tax
    payments for Federal, Social Security, and Medicare taxes withheld from
    payroll expenditures, as well as the Senate's matching contribution for
    Social Security and Medicare, to the Federal Reserve Bank. The
    Department also performed quarterly reporting to the Internal Revenue
    Service (IRS) and annual reporting and reconciliation to the IRS and
    the Social Security Administration. Payments for employee withholdings
    for state income taxes were reported and paid on a quarterly basis to
    each state with applicable state income taxes withheld. Monthly
    reconciliations were performed with the National Finance Center
    regarding the employee withholdings and agency matching contributions
    for the Thrift Savings Plan. Every month, all employee withholdings and
    agency contributions for life and health insurance, and federal
    retirement programs were transmitted to the Office of Personnel
    Management. Any adjustment to employee contributions for any of the
    health, life, and retirement plans from previous accounting periods
    were also processed. In April and October, the Accounting Department
    prepared the necessary reports and information to be included in the
    Report of the Secretary of the Senate. All organizations and
    appropriation accounts reported were validated 100 percent to the
    financial system.
        In addition to Treasury's external reporting deadlines there are
    some internal reporting requirements such as the monthly ledger
    statements for all Member offices and all other offices with payroll
    and non-payroll expenditures. These ledger statements detail all of the
    financial activity for the appropriate accounting period with regard to
    official expenditures in detail and summary form. It is the
    responsibility of the Accounting Department to review and verify the
    accuracy of the statements before Senate-wide distribution.
        The Accounting Department, in conjunction with the Deputy for
    Financial Management, is working closely with the Sergeant at Arms'
    (SAA) Finance Department in completing all the corrective actions that
    resulted from the Pro-forma financial statements auditability
    assessment completed in April 2002. Based on the results of this
    exercise, 23 corrective actions were suggested including an action plan
    and proposed schedule to have them corrected within several years. Some
    of the actions were rather simple to implement while others will take
    additional time. Of the 23 corrective actions noted, 6 have been
    completed, 13 are in process, and 4 are still open. As part of this
    project, the Accounting Group drafted the Senate-wide capitalization
    policy which has been reviewed and agreed to by the SAA's Finance
    Department. The Accounting Group also drafted and finalized the travel
    advance and vendor file procedures documents. The Deputy for Financial
    Management is working closely with the SAA's Finance Department in the
    replacement and implementation of the new asset management system,
    Asset Center.
        On a consulting basis, the Deputy for Financial Management has been
    assisting the Senate Gift Shop with the implementation of their new
    accounting system. In addition, the Accounting Group has been working
    with the General Accounting Office (GAO) to provide them with expense
    vouchers and certificate of deposits documentation requested for the
    audits of all the Secretary of the Senate and Sergeant at Arms
    revolving funds.
                          accounts payable department
        During the Fall of 2003, the Accounts Payable Department was
    restructured and a third section was created to adequately attend to
    the needs of the Senate community. Currently, the A/P Department is
    made up of the following three sections: the Audit group, the
    Disbursement group and the newly created Vendor/SAVI group.
    Accounts Payable Vendor/SAVI Section
        The Vendor/SAVI (Senate Automated Vendor Inquiry) group was newly
    created in the fall of 2003. This section is responsible for the prompt
    completion of service requests from within the Senate community for
    access to the Disbursing Office's new Web-based payment inquiry system
    called SAVI, the timely processing of expense voucher payments via
    paper check or ACH wire transfer and for training Senate staff on the
    proper usage of the SAVI Web based system. The section also assists the
    IT Department with daily monitoring of system performance and the
    testing of new SAVI system upgrades. Another major responsibility of
    this group is the daily maintenance of the Senate's central payee file,
    which currently has over 11,000 vendors. Daily requests for new or
    updated vendor addresses are promptly handled and processed within 24
    hours of being requested. The section is in the process of collecting
    ACH wire information on external vendors with the intention of
    reimbursing most vendors electronically instead of by paper check.
    Further, this section is working with the IT Department in the
    selection and testing of a new e-mail notification project to inform
    all external vendors via e-mail that an electronic reimbursement has
    occurred.
        As part of its objectives, this section started to scan the hard
    copy supporting documentation (vendor-supplied remittance instructions)
    for the entire payee file (starting with the most recent ones) on the
    DO network which will enable quick access to necessary information.
    Because of the size of the vendor file (over 11,000 vendors) and the
    usual daily work which must be completed, this scanning project is
    expected to take approximately a year to complete. Ultimately, scanning
    of vendor-supplied supporting documentation will become a routine part
    of file maintenance.
    Accounts Payable Disbursements Department
        During 2003, two new staff members were hired and one staff member
    was transferred to the newly created Vendor/SAVI Department. The new
    department now handles all aspects of the FAMIS vendor file which was
    previously tasked to A/P Disbursements. In fact, 133,000 expense claims
    were received and processed by the department. Over 40,000 expense
    checks were written and approximately 25,000 direct deposit
    reimbursements were made.
        The Disbursements Department is also responsible for researching
    returned checks as vendors request additional information relating to
    payment allocation. Fortunately, few checks are returned. This is a
    result of the use of a centralized vendor file and accurate
    certification of payments.
        The Accounts Payable Disbursements Department distributes the
    monthly ledgers to the 160 accounting locations throughout the Senate.
    Once produced, they are delivered to Disbursing. They are then sorted
    and delivered or picked up according to a list of special instructions.
    The main objective of this process is to have each office receive their
    ledger statements by the 10th of the month.
        A/P Disbursements also prepares the quarterly state tax returns.
    The amounts are provided by the Accounting Department, and payment
    coupons are prepared for the 43 state jurisdictions. The coupons are
    obtained from each jurisdiction either in hard copy or on-line via the
    Internet. Vouchers are prepared electronically via an uploaded
    spreadsheet, which is used to generate check payments to the taxing
    authorities. Once the checks are written, letters of transmittal are
    prepared and mailed to the appropriate State jurisdictions and the
    District of Columbia.
        The Department also prepares the forms required by the Department
    of the Treasury for stop payments. Stop payments are requested by
    employees who have not received salary or expense reimbursements, and
    vendors claiming non-receipt of expense checks. During this year, the
    A/P Disbursement Supervisor and the Accounts Payable Manager
    implemented the Department of the Treasury--Financial Management
    Service (FMS) on-line stop pay and check retrieval process known as
    PACER. The PACER system allows us to electronically submit stop-payment
    requests and provides on-line access to digital images of negotiated
    checks for viewing and printing. Once a check is viewed, it is printed
    and may be scanned. Scanned images are then forwarded to the
    appropriate accounting locations via e-mail. This process has been well
    received by Senate offices as well as vendors. This saves time and
    significantly reduces reliance on the postal system. The entire
    Accounts Payable Disbursements staff has Treasury secure ID cards and
    are being trained in the use of PACER. Given its time and money
    savings, as well as its overwhelmingly positive reception, large growth
    in the use of PACER is expected.
        Two major events have helped in centralizing the filing and storage
    of Accounts Payable and Accounting documents. First was new shelving
    which replaced file cabinets for all in-house filing. The documents are
    placed in side-tab folders which display their contents in an easy-to-
    read format. The major benefit to the new shelving is space savings.
    The result is that what previously required over 20 feet of wall space,
    now requires a little less than 15 feet, a space savings of 25 percent.
    Second, the new shelving also allows us to keep a year's worth of
    vouchers in-house before sending them to our warehouse facility.
    Previously, only six months' worth of vouchers could be kept on hand.
        The warehousing of documents has improved and is still evolving.
    Vouchers were housed at two facilities, but now all have been
    transferred to a larger location, although there is need for expansion.
    Meetings with the Sergeant At Arms, consultants, and prospective
    vendors continue in an effort to provide state-of-the-art warehousing
    for the entire Senate. Such plans include current space requirements,
    future anticipated space requirements, and the need for ``staging''
    areas, telephone, copier, and fax access, climate control, and
    security.
    Accounts Payable Audit Department
        The third section under the Accounts Payable Department is the
    Audit Department. The Accounts Payable Audit Section is responsible for
    auditing vouchers and answering questions regarding voucher preparation
    and the permissibility of the expense, providing advice and
    recommendations on the discretionary use of funds by the various
    accounting locations, identifying duplicate payments submitted by
    offices, monitoring payments related to contracts, training new Office
    Managers and Chief Clerks about Senate financial practices, training
    Office Managers in the use of the Senate's Financial Management
    Information System, and assisting in the production of the Report of
    the Secretary of the Senate. During this year, the responsibility for
    the printing of the semiannual Report of the Secretary of the Senate
    was transferred from the retiring Assistant Financial Clerk to the
    Accounts Payable Manager. This Section also monitors the Fund Advance
    Tracking System (FATS) to ensure that advances are charged correctly,
    vouchers repaying such advances are entered, and balances are adjusted
    for reuse of the advance funds. An ``aging'' process is also performed
    to ensure that advances are repaid in the time specified by the advance
    travel regulations.
        The Accounts Payable Audit Section, currently a group of 11, has
    the responsibility for the daily processing of expense claims submitted
    by the 140 accounting locations of the Senate. During the first months
    of the year, the Accounts Payable Audit Group had some staff turnover
    and new auditors were hired. The new audit staff is undergoing
    comprehensive training and the section processed approximately 133,000
    expense vouchers during fiscal year 2003. The voucher processing ranged
    in scope from providing interpretation of Senate rules, regulations and
    statute, applying the same to expense claims, monitoring of contracts
    and direct involvement with the Senate's central vendor file. On
    average and as long as the voucher does not have any issues or
    questions and the Audit Section is fully staffed, vouchers are
    received, audited, sanctioned by Rules and paid by DO within the
    required directive of 10 business days.
        During December 2002, the Chairman of the Committee on Rules and
    Administration, delegated the sanctioning authority of vouchers of $35
    or less to the Financial Clerk of the Senate. As a consequence, the
    workload within this group increased by 15 percent. These vouchers are
    sanctioned by the Certifying Accounts Payable Specialists and are being
    received, audited, and paid within 5 business days of receipt. The
    sanctioning authority was subsequently increased in 2003 from items
    totaling $35 and less to items valued at $100 and below. The increase
    in sanctioning authority came as a direct result of our passing two
    post-payment audits performed by the Rules Committee. This additional
    change increased the number of vouchers sanctioned by Audit to 57
    percent of all submitted vouchers.
        Additionally, advance documents and non-Contingent Fund items such
    as Legal Counsel and Legislative Counsel vouchers are now posted in
    Audit. The sanctioning responsibilities allowed for one staff promotion
    to Certifying Accounts Payable Specialist.
        The reduced flow of vouchers to the Rules Committee allowed us to
    proceed with their inclusion in the on-line sanctioning process.
    Initially, four Senators' offices and the Committees comprised the
    pilot group. Currently, all vouchers sanctioned by the Rules Committee
    through the Web-submit process are sanctioned on-line.
        The Accounts Payable Audit Group provided training sessions in the
    use of new systems, the process for generation of expense claims, the
    permissibility of an expense, and participated with seminars sponsored
    by the Secretary of the Senate, the Sergeant at Arms, and the Library
    of Congress. The Section was able to train 21 new Office Managers and
    Chief Clerks and conducted 5 informational sessions for Senate staff
    through seminars sponsored by the Congressional Research Service (CRS).
        The Accounts Payable group also assisted the IT department in the
    testing and implementation of the new travel advance reporting. The new
    travel advance reporting became effective in September 2002 and with
    this new process, travel advances are accounted for as obligations. The
    Accounts Payable Audit Group has been fully trained in the new travel
    advance system and in the use of the four new WEB inquiries. The group
    also participated in the SAVI (Senate Automated Vendor Information)
    system training to assist Senate staff with any questions related to
    their reimbursements paid either by ACH (Automated Clearing House) or
    by check. The creation of a Vendor/SAVI department allowed for a senior
    staff promotion out of Audit, and two new staff were hired to help fill
    the void caused by this promotion and one staff termination.
        A cancellation process was established for advances. This was
    necessary to ensure repayment of advances systematically for canceled
    or postponed travel in accordance with Senate Travel Regulations.
                               budget department
        The third component of the Disbursing Office Financial Management
    Group is the Budget Department. The primary responsibility of the
    Budget Department is to compile the annual operating budget of the
    United States Senate for presentation to the Committee on
    Appropriations. The Budget Department is responsible for the
    preparation, issuance and distribution of the budget justification
    worksheets (BJW). In fiscal year 2003 the budget justification
    worksheets were mailed to the Senate accounting locations at the end of
    February. This deadline was much later than usual due to the late
    passage of the Legislative Branch Appropriations bill. This department
    is also responsible for the formulation, presentation and execution of
    the budget for the Senate and provides a wide range of analytical,
    technical and advisory functions related to the budget process. The
    Budget Department acts as the Budget Officer for the Office of the
    Secretary, assisting in the preparation of testimony for the hearings
    before the Committee on Appropriations and the Committee on Rules and
    Administration. The group is also responsible for reporting the budget
    baseline estimates that were developed for fiscal year 2004 to the
    Office of Management and Budget, via the MAX database.
                    disbursing office information technology
                    financial management information system
        The Disbursing Office Information Technology (IT) Department,
    currently operating with a staff of four, provides both functional and
    technical assistance for all Senate Financial Management activities.
    Activities revolve around support of the Senate's Financial Information
    System (FMIS) which is used by approximately 140 Senate accounting
    locations (i.e., 100 Senators' offices, 20 Committees, 20 Leadership
    and Support offices, and the Disbursing Office). Responsibilities
    include:
      --Supporting current systems;
      --Testing infrastructure changes;
      --Managing and testing new system development;
      --Planning;
      --Managing the FMIS project, including contract management;
      --Administering the Disbursing Office's Local Area Network (LAN); and
      --Coordinating the Disbursing Office's Disaster Recovery activities
            and Continuation of Operations Plan (COOP).
        The activities associated with each of these responsibilities are
    described in more detail in the sections that follow. Work during 2003
    was supported by the Sergeant at Arms (SAA) Technology Services staff,
    the Secretary's Information Technology staff, and contracts with
    BearingPoint.
        The SAA Technology Services staff is responsible for providing the
    technical infrastructure, including hardware (mainframe and servers),
    operating system software (mainframe and servers), database software,
    and telecommunications; technical assistance for these components,
    including migration management, and database administration; and
    regular batch processing. BearingPoint is responsible, under the
    contract with the SAA, for operational support, and under contract with
    the Secretary, for application development. The DO is the ``business
    owner'' of FMIS and is responsible for making the functional decisions
    about FMIS. The three organizations work co-operatively.
        Highlights of the year include:
      --Conducting 44 classes, seminars, and demonstrations on Web FMIS;
      --Implementation of three releases of Web FMIS and preparation for
            two releases during 2004. One of these releases made the online
            ESR function available to all offices and provided online
            review and sanctioning capability to the Rules Committee Audit
            staff;
      --Implementation of two releases of SAVI;
      --Implementation of a post payment audit for the Rules Committee
            Audit staff whereby they can do a statistically valid sample of
            vouchers of $35 and under for which sanctioning was delegated
            to the Financial Clerk;
      --Pilot of direct deposit payments to external vendors;
      --Entering into a new multi-year contract with the FMIS support
            vendor, BearingPoint;
        and Hiring a new Systems Administrator.
        FMIS is not a single computer system. It is composed of many
    subsystems that provide Senate-specific functionality. These subsystems
    are outlined in the table that begins on the following page.

                                                                             SENATE FINANCIAL MANAGEMENT INFORMATION SYSTEM
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                 Subsystem                                      Functionality                                       Source                         Primary Users                  Implementation
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
    FAMIS (Mainframe).................  Financial general ledger.....................................  Off the shelf federal system     Disbursing Office..................  October 1998
                                        Vendor file                                                     purchased from BearingPoint.
                                        Administrative functions
                                        Security functions
    ADPICS (Mainframe)................  Preparation of requisition, purchase order, voucher from       Off the shelf federal system     Sergeant at Arms...................  October 1998
                                         purchase order, and direct voucher documents.                  purchased from BearingPoint.    Disbursing Office
                                        Electronic document review functions                                                            Secretary of the Senate
                                        Administrative functions
    Checkwriter (Client-server).......  Prints checks and check registers as well as ACH (Automated    Off the shelf state government   Disbursing Office..................  October 1998
                                         Clearing House) direct deposit payments.                       system purchased from and
                                                                                                        adapted to Senate's
                                                                                                        requirements by BearingPoint.
    Web FMIS (Client-server and         Preparation of vouchers, travel advances, vouchers from        Custom software developed under  All Senators offices...............  October 1999
     intranet).                          advance documents, credit documents and simple commitment      Senate contract by              All Committee offices
                                         and obligation documents.                                      BearingPoint.                   All Leadership and Support offices
                                        Entry of detailed budget                                                                        Secretary of the Senate
                                        Reporting functions (described below)                                                           Sergeant at Arms
                                        Electronic document submission and review functions                                             Disbursing Office
                                        Administrative functions
    FATS (PC-based)...................  Tracks travel advances and petty cash advances (available to   Developed by SAA Technology      Disbursing Office..................  Spring 1983
                                         Committees only).                                              Services.
                                        Tracks election cycle information
    Post Payment Voucher Audit (PC-     Selects a random sample of vouchers for which sanctioning was  Excel spreadsheet developed by   Rules Committee....................  Spring 2003
     based).                             delegated to the Financial Clerk for the Rules Committee to    BearingPoint.                   Disbursing Office
                                         use in conducting a post payment audit.
    SAVI (Intranet)...................  As currently implemented, provides self-service access (via    Off the shelf system purchased   Senate employees...................  Pilot--Spring 2002
                                         the Senate's intranet) to payment information for employees    from BearingPoint.                                                   Senate-wide--July 2002
                                         receiving reimbursements via direct deposit.
                                        Administrative functions
    Online ESR (Intranet).............  A component of SAVI through which Senate employees can create  Custom software developed under  Senate employees...................  April 2003
                                         on-line Travel Expense Summary Reports and submit them         contract by BearingPoint.
                                         electronically to their Office Manager/Chief Clerk for
                                         processing.
    Secretary's Report (Mainframe       Produces the Report of the Secretary of the Senate...........  Custom software developed under  Disbursing Office..................  Spring 1999
     extracts, crystal reports, and                                                                     contract by BearingPoint.
     client-server ``tool box'').
    Ledger Statements (Mainframe        Produces monthly reports from FAMIS that are sent to all       Developed by SAA Technology      Disbursing Office..................  Winter 1999
     database extracts, and crystal      Senate ``accounting locations''.                               Services.                       Senate Accounting Locations
     reports).
    Web FMIS Reports (mainframe         Produces a large number of reports from Web FMIS, FAMIS and    Custom software developed under  Senate Accounting Locations........  October 1999
     database extracts, crystal          ADPICS data at summary and detailed levels. Data is updated    contract by BearingPoint.
     reports, client server, and         as an overnight process and can be updated through an on-
     Intranet).                          line process by accounting locations.
    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

    Supporting Current Systems
        The IT section supports FMIS users in all 140 accounting locations,
    the Disbursing Office Accounts Payable, Accounting, Accounts Payable
    Disbursements, Vendor/SAVI, and Front Office Sections, and the Rules
    Committee Audit staff. The activities associated with this
    responsibility include:
      --User Support--provide functional and technical support to all
            Senate FMIS users; staff the FMIS ``help desk''; answer
            hundreds of phone calls a year; and meet with Chiefs of Staff,
            Office Managers, Chief Clerks, and Directors of various Senate
            offices as requested;
      --Technical Problem Resolution--ensure that technical problems are
            resolved;
      --Monitor System Performance--check system availability and
            statistics to identify system problems and coordinate
            performance tuning activities for parallel load and database
            access optimization;
      --Security--maintain user rights for all ADPICS, FAMIS, SAVI, and Web
            FMIS users. In 2003, we added, deleted and changed user rights
            for 94 ADPICS, FAMIS and 57 Web FMIS offices and other users as
            requested by Senators and Chairmen.
      --System Administration--design, test and make entries to tables that
            are intrinsic to the system. In 2003, this included making
            changes to reflect Senate organizational changes for the 108th
            Congress, establishing new offices, changing the Senate-wide
            privately owned vehicle reimbursement rates, establishing and
            testing new accounting transaction codes, and creating new
            approval paths for vouchers of $100 or less;
      --Support of Accounting Activities--provide assistance in the cyclic
            accounting system activities. During 2003, the following
            activities were performed--Upload of files into FAMIS (e.g.,
            budgets, monthly certification charges, state office rental
            vouchers), Year End Rollover (in March for Committee Funding
            Resolution 66B, and in August for fiscal year 2004), Year End
            Close, Document Purge, and Ad hoc queries; and
      --Training--provide functional training to all Senate FMIS users.
            During 2003, the IT Department conducted 44 classes, seminars,
            and demonstrations on Web FMIS. The class schedule is issued
            every other month and the classes offered were:
        --1. Introduction to Web FMIS--conducted 12 times. This hands-on
                class covers the basics of preparing, printing, and
                submitting vouchers and travel vouchers, and managing your
                inbox. Also covered are adding items to an office's lookup
                tables (e.g., vendor and expense category), using search to
                find records, and what information goes in the Unique
                Invoice Number and Account Number fields.
        --2. Web FMIS Travel Class--conducted 15 times. The hands-on class
                covers all aspects of travel vouchers from both the Office
                Manager's and the traveler's perspective. It enables the
                Office Manager or Chief Clerk to prepare travel advance
                requests, create travel vouchers, create travel vouchers
                from online ESRs using the Web FMIS import function, train
                travelers to create on-line travel expense summary reports
                (online ESRs), train travelers to track direct deposit
                payments via SAVI; and perform the Web FMIS setup tasks
                (e.g., establishing a traveler's profile, and establishing
                office mileage rates). This class was created in 2003 with
                the Senate-wide implementation of online ESR.
        --3. Web FMIS Budget and Reports Seminar--conducted 12 times. This
                demo-style seminar covers how to enter and change an
                office's budget, and how different budgets show on an
                office's Summary of Financial Status Report. Several
                budgets, from simple to complex are discussed, based on the
                interests of the attendees. Also discussed are the on-line
                reporting functions including refreshing report data and
                exporting report data into another application (e.g.,
                Excel). In addition, we look in detail at the Analysis by
                Vendor, Analysis by Expense Category, and Analysis by
                Office Control Number Reports, at the Changed Document
                Report, and other reports based on the interests of the
                attendees.
        --4. Web FMIS Reconciliation Class--conducted 7 times. This hands-
                on class covers how to reconcile an office's Web FMIS
                balance with the DO's balance on a monthly basis. Also
                provided individual training sessions for 14 persons who
                were unable to attend the scheduled class sessions.
        --5. Web FMIS Special Topics--conducted once. Occasionally a
                ``special topics'' seminar covering different subjects is
                held. In May the seminar topic was how to use commitments
                and obligations. This seminar is offered at the points in
                the year when offices are most likely trying to estimate
                expenses through the end of the fiscal year.
        --6. User Demos--In advance of each Web FMIS release, a
                demonstration is conducted at a Joint Office Manager/Chief
                Clerks meeting of the new functionality included in the
                release. The demo is repeated for those unable to attend
                the meeting. For Web FMIS release 7.4, the material was
                presented twice.
    Testing Infrastructure Changes
        The SAA provides the infrastructure on which FMIS operates,
    including the mainframe, the database, security hardware and software,
    the telecommunications network, and a hardware and software
    installation crew and help-desk provider. During 2003, the following
    components of this infrastructure were changed:
      --Mainframe hardware and software--Upgrade of the mainframe operating
            system (OS390/2.10, including CICS and WebSphere upgrades)
            required that the Disbursing Office extensively test all FMIS
            subsystems both in a testing environment and in the production
            environment. Additional testing, although less extensive, was
            performed when the SAA activated the new Storage Area Network
            facility (SAN), an essential component of the Alternate
            Computing Facility;
      --TDF and DHF Partitioning--The Transaction Detail File and Document
            Header File, which are subsidiary files to the General Ledger,
            were split into logical divisions in order to improve system
            performance, especially for inquiries. The IT staff and
            Accounting section staff created documents and tested all FMIS
            functions with the partitioned files before the production
            files were partitioned.
      --Printing online via ``Reveal''--The DO's use of the ``Reveal''
            software, which prints reports to a file for online viewing
            instead of a printer, was expanded to include the weekly
            Appropriations Summary Reports. This allowed the elimination of
            a dedicated printer in SH-144.
    Managing and Testing New System Development
        During 2003, we supervised development, performed extensive
    integration system testing and implemented changes to the following
    FMIS subsystems: Web FMIS; Senate Vendor Information (SAVI) and Online
    ESR; Post Payment Voucher Audit; and Checkwriter.
                Web FMIS
        Three releases of Web FMIS were done in 2003. Work was begun on two
    additional releases which will be implemented in 2004. These
    implemented in 2003 are:
      --Web FMIS r7.4.8.--This release in April 2003 made the import ESR
            function available to all offices. This function allows Office
            Managers to create travel vouchers from online ESRs that
            travelers create in SAVI. This saves a significant amount of
            time for Office Managers. Previously, this had been used by a
            pilot of 10 offices. Additionally, this release included online
            review and sanctioning capability for the Rules Committee Audit
            staff. The Rules Committee staff elected to implement a pilot
            of 23 offices (all Committees and Senators whose last name
            begins with A) in order to become familiar with the software
            and develop appropriate procedures. (As of January 1, 2004, the
            Rules Committee staff implemented online review and sanctioning
            of all Web FMIS vouchers via Web FMIS. This was implemented in
            conjunction with an increase in the threshold for delegation of
            sanctioning authority. In December 2002, the Rules Committee
            Chairman delegated sanctioning authority to the Financial Clerk
            for vouchers of $35 and less. Effective January 1, 2004, the
            Rules Committee Chairman increased the threshold to $100.)
      --Web FMIS r7.4.9.--The July 2003 release focused on reports. The
            most important change was reporting the total trip expense when
            a travel advance was used. Additionally, several useful
            formatting changes were made, including adding subtotals for
            payroll and non-payroll to all of the ``summary'' reports.
      --Web FMIS r7.5.4.--The August 2003 release implemented new
            underlying technology, including an upgrade to WebSphere 4.0, a
            new version of mainframe CICS, and a new Cold Fusion server. It
            included a few functional changes, the most important of which
            was the ability to create budgets for the new fiscal year prior
            to October 1 and without regard to whether funding has been
            authorized. In addition, we created the files necessary for
            fiscal year 2004. Making it possible for offices to work with
            their budgets in August was a request from Web FMIS users. The
            necessary system changes were implemented in this release and
            the ``new year roll'' was done earlier than in past years. In
            the future, the new year roll will also be in August.
        In addition, we began work on two projects scheduled for completion
    in 2004, development of Web FMIS ``thin client'' and Web FMIS Imaging
    and Signature Design, Electronic Invoicing and Remittance Enhancement.
    During 2003, a significant amount of staff time was spent to prepare
    for these releases. Activities included requirements analysis, planning
    and consultation with users.
      --Web FMIS ``thin client''.--There have been many functional releases
            of Web FMIS, since it was implemented in October 1999. With
            each release, the most appropriate technology available at the
            time is selected. This has resulted in a complicated
            architecture that has:
            1. Client/server components on a Cold Fusion server (e.g.,
                Document Entry and Budget Entry functions);
            2. Web components on a Cold Fusion server (e.g., Local list
                maintenance functions and reports); and
            3. Web components on a WebSphere ``server'' on the Senate's
                mainframe (e.g., the submit and on-line approval
                functions).
          Under this project the functions that use Cold Fusion will be re-
            written to use WebSphere, eliminating two different
            architectural components. This will be implemented in two
            releases:
            1. Phase I--implemented in early March, 2004--Web FMIS r8--re-
                write the maintenance and administrative functions of Web
                FMIS to use ``thin client'' technology, upgrade the
                reporting function to use Crystal Reports version 9, which
                is ``thin client,'' and revise the reporting function so
                that it will continue to show data from closed fiscal years
                (data that we would like to archive from FAMIS). Additional
                functionality, previously developed but not implemented,
                will be implemented in this release, the security paradigm
                based on roles, and administrative contact screens that
                consolidate information from several subsystems.
            2. Phase II--currently scheduled for August, 2004--Web FMIS
                r9--re-write the remaining functions that use client-server
                technology, including the functions most used by office Web
                FMIS users (e.g., Main Menu, Document Entry, Budget Entry).
                Additionally, this release will change notification of
                documents requiring office action from an internal Web FMIS
                function to e-mail, add a non-travel ESR in SAVI and modify
                the ESR import function in Web FMIS.
      --Web FMIS Imaging and Digital Signature Design, Electronic Invoicing
            and Remittance Enhancement.--As articulated in the FMS
            Conceptual Design, the vision for the FMIS is for paperless
            voucher processing. This requires implementation of electronic
            signatures and imaging of supporting documentation. This
            project begins the exploration of imaging and electronic
            signatures and will result in a design for this functionality.
            In addition, the plan is to explore, and if feasible implement,
            the receipt of invoices electronically from large vendors. This
            would eliminate the step of imaging paper invoices.
                Senate Automated Vendor Inquiry (SAVI) and Online ESR
        The Online ESR, a subsystem of SAVI, enables Senate staff to
    complete an on-line Travel Expense Summary Report (ESR) and submit it
    so that their Office Manager can ``import'' the data and create a
    voucher, without retyping the ESR data. The April 2003 release of Web
    FMIS made the corresponding ``import'' ESR function available to all
    Office Managers. Office Managers in turn encouraged their staff to use
    the online ESR, thus substantially increasing the number of online ESR
    users.
        The SAVI system enables Senate staff to check the status of
    reimbursements, whether via check or direct deposit, and whether or not
    referencing an online ESR. In June 2003, a serious performance problem
    was encountered in SAVI. Web pages that normally took a few seconds to
    access suddenly required more than a minute. This was due to
    inefficient structure of a few ``calls.'' While they performed
    adequately during testing and during pilot use of SAVI the increased
    use of SAVI after the April 2003 release of Web FMIS highlighted this
    inefficiency. In less than two weeks, DO and BearingPoint staff
    identified the cause of the problem and developed, tested and installed
    the solution, SAVI release 2.02. No substantial performance problems
    have since been encountered.
        In October 2003, SAVI release 2.1 was implemented. This release
    included a number of security features, such as encryption of user
    passwords, removal of Social Security Numbers from the Oracle database,
    masking all but the last three digits of bank account numbers, and
    disabling unused/unnecessary services on the servers. In addition, work
    was conducted on SAVI release 2.2, which is scheduled for
    implementation in 2004, and will include some major functional
    enhancements, conversion to .NET (``dot net'') version of Visual Basic
    and several other security enhancements.
                Post payment Voucher Audit
        In December 2002, the Rules Committee delegated to the Financial
    Clerk the authority for sanctioning vouchers of $35 and less. This
    authorization directed Rules and DO to establish a set of procedures
    for a semi-annual audit of these vouchers. The two offices agreed that
    Rules would conduct a random sampling inspection of these vouchers
    based on industry statistical standards. Under the supervision of the
    IT Group, BearingPoint created tools to determine the sample size, to
    enable selecting the sample from the universe of vouchers of $35 and
    less, and to determine the acceptable number of discrepancies given the
    sample size and the desired confidence interval. The first audit was
    conducted in May 2003 for the six-month period ending March 31, 2003,
    covered 7,270 vouchers, and resulted in a favorable finding of zero
    discrepancies. The second audit was conducted in November 2003 for the
    six-month period ending September 30, 2003, covered 11,502 vouchers,
    and again resulted in a favorable finding of zero discrepancies.
                Checkwriter
        The Disbursing Office makes payments via direct deposit and via
    check.
      --Direct Deposit.--In 2002 the Disbursing Office began making expense
            reimbursements to Senate staff via direct deposit (i.e., ACH or
            Automated Clearing House). In 2003 this was expanded to include
            external vendors. The initial pilot vendors provided materials
            to the Keeper of Stationery; and our first payments to them
            were transmitted on June 3, 2003. After a very successful
            initial pilot, it was expanded to larger-volume vendors such as
            FedEx.
      --Laser Checks.--In five years of using the Checkwriter application,
            it became clear that there are benefits in switching from
            printing checks on a continuous-feed impact printer to printing
            checks on a laser printer. The laser version will provide more
            flexibility for continuance of operations by eliminating our
            dependence on the harder-to-find printer. It will also produce
            a higher print quality, which will help the postal service in
            the delivery of checks. The higher quality print will also
            prevent checks from being negotiated for an unintended dollar
            amount. During 2003, the DO held numerous meetings with
            Checkwriter's designer, BearingPoint, to establish new
            specifications for the laser version. As a result, a new and
            substantially different check proof has been established with
            the Treasury Department. Additionally, the choice of folder/
            inserter machines to use with the laser check stock was
            narrowed. Testing is currently underway for the implementation
            of laser checks in 2004.
    Planning
        There are two main planning activities:
      --Schedule coordination--planning and coordinating a rolling 12-month
            schedule; and
      --Strategic planning--setting the priorities for further system
            enhancements.
                Schedule Coordination
        In 2003, three meetings continued among the DO, SAA and
    BearingPoint to coordinate schedules and activities. These are:
      --Project specific meetings--a useful set of project specific working
            meetings, each of which has a weekly set meeting time and meets
            for the duration of the project (e.g., Document Purge meetings
            and Web FMIS requirements meetings);
      --Technical Meeting--a weekly meeting among the DO staff (IT and
            functional), SAA Technical Services staff, and BearingPoint to
            discuss coordination among the active projects, including
            scheduling activities and resolving issues; and
      --``Project Office''--a monthly meeting among senior Senate staff
            (e.g.,the Financial Clerk, Rules Committee staff), the
            BearingPoint engagement partner, SAA technical and functional
            staff, DO IT and functional staff, and BearingPoint staff to
            discuss progress on each project.
        With progress being made, the decision was made to move more
    activities from the project office meeting to the technical meeting,
    and by the end of 2003, the project office meeting was eliminated. In
    January 2004 one technical meeting is held each month as a joint
    technical/project office meeting.
                Strategic Planning
        The FMIS strategic plan has a longer time horizon than the rolling
    12-month time frame of the technical meeting schedule. It is designed
    to set the direction and priorities for further enhancements. In 2002 a
    five-year strategic plan was written by the IT and Accounting staff for
    Disbursing Office Strategic Initiatives. This detailed description of
    five strategic initiatives is the basis for the $5 million in multi-
    year funds given to the Secretary's office by the Senate Committee on
    Appropriations for further work on the FMIS project. The five strategic
    initiatives are:
      --Paperless Vouchers--Imaging of Supporting Documentation and
            Electronic Signatures.--Beginning with a feasibility study and
            a pilot, implement new technology, including imaging and
            electronic signatures, that will reduce the Senate's dependence
            on paper vouchers. This will enable continuation of voucher
            processing operations from any location, should an emergency
            again occur;
      --Web FMIS--Requests from Accounting Locations.--Respond to requests
            from the Senate's Accounting Locations for additional
            functionality in Web FMIS;
      --Payroll System--Requests from Accounting Locations.--Respond to
            requests from the Senate's Accounting Locations for on-line
            real time access to payroll data;
      --Accounting Subsystem Integration.--Integrate Senate-specific
            accounting systems, improve internal controls, and eliminate
            errors caused by re-keying of data; and
      --CFO Financial Statement Development.--Provide the Senate with the
            capacity to produce auditable financial statements that will
            obtain an unqualified opinion.
    Managing the FMIS Project
        The responsibility for managing the FMIS project was transferred to
    the IT group during the summer of 2003 due to the retirement of the
    Assistant Financial Clerk. These responsibilities include developing
    the task orders with contractors and overseeing their work. In 2003,
    four new task orders were executed with BearingPoint:
      --Web FMIS Thin Client;
      --Web FMIS Imaging and Digital Signature Design and Electronic
            Invoicing and Remittance Enhancements;
      --Additional Operational Support; and
      --Extended Operational Support (Sept. 2003--August 2004).
        In addition, in August 2003 a new multi-year contract with Bearing
    Point was negotiated and signed. This was a joint effort between the DO
    staff and the SAA procurement staff.
    Administering the Disbursing Office's Local Area Network (LAN)
        The DO administers its own Local Area Network (LAN), which is
    separate from the LAN for the rest of the Secretary's Office.
                Office-wide LAN maintenance and upgrade
        Existing workstations were maintained with appropriate service
    patches, and security updates including:
      --Conducted Pre-Install meetings for the new DO SQL server--Worked
            with the Senate support vendor to determine installation
            strategy and procedures to properly prepare an SQL production
            server;
      --Supervised DO SQL server installation--Ensured that system was
            installed in accordance with all agreed upon requirements;
      --Installed SNAP servers--These devices provide an additional means
            for LAN data backup;
      --LAN Planning--Began planning for the installation of a new LAN
            server in 2004; and
      --Maintained our Office Information Authorization form log which
            provides easy access from DO staff desktops to up-to-date
            information about the authorized contacts for each Senate
            office.
                Office-wide Technical Skills Improvement
        The Systems Administrator was tasked with improving the DO's
    efficiency with the use of available technology. One example of this
    improvement is how check inquires are processed. Prior to the
    implementation of existing technology, when an office requested
    information about negotiated checks, DO Accounts Payable Disbursements
    staff printed a copy of the front and back of the check via Treasury's
    Pacer system. Then the staff would mail these copies to the office. As
    a result of the training provided by the Systems Administrator, the DO
    staff scan the Pacer copy of the front and back of the check and attach
    the image to an e-mail message to the office, providing better and
    faster responses.
                Projects for the Accounts Payable and Accounting Sections
        The activities of the Accounts Payable and Accounting Sections were
    supported with the development of a Vendor Data Imaging process which
    consists of simple scanning procedures to capture and electronically
    store the paperwork associated with vendors.
                Projects for Payroll and Employee Benefits Sections
        Activities of the Payroll and Employee Benefits sections were
    supported with four specific projects:
      --Assisted in the development of the Payroll Imaging system, which
            captures payroll documents turned in at the DO front counter
            electronically, including ordering all required system
            components. This system is still being implemented;
      --Maintained required software to enable the Employee Benefits
            section to continue transmitting employee health plan
            information electronically to the National Finance Center in
            order to participate in the program called Centralized
            Enrollment Clearinghouse System (CLER); and
      --Posted Revised Overtime Schedules for different work weeks along
            with a generic time sheet on the DO website.
                Software for the Report of the Secretary of the Senate
        Several DO staff review and edit data for the Report of the
    Secretary of the Senate. This requires special software and
    dictionaries, with the following performed on this software:
      --Coordinated the update and installation of the ``Toolbox'' software
            (provided by BearingPoint) on existing PCs;
      --Reviewed existing spell check dictionaries, and worked with
            BearingPoint to make the required updates; and
      --Implemented procedures to ensure that dictionaries are maintained
            after each reporting cycle.
    Coordinating the Disbursing Office's Disaster Recovery Activities
        The DO's disaster recovery activities include two related
    activities:
      --Disaster Recovery Testing, participating in the computer system
            disaster recovery tests conducted by the SAA; and
      --Coordinating the Continuation of Operations Plan (COOP), a broadly
            focused activity, addressing all aspects of DO operations.
                Disaster Recovery Testing
        Since 1995, the SAA has contracted with an offsite contractor for
    backup services in case of a disaster affecting the Senate's main data
    center. The Senate's Payroll system and FMIS are included in this
    recovery process. Since the contract's inception, the Senate has tested
    its ability to restore systems and perform normal activities at least
    once, and often twice each year. Disbursing Office staff and SAA
    Procurement staff are active participants in the planning and execution
    of these tests. In a February 2003, exercise, the mainframe subsystems
    of FMIS (i.e., ADPICS and FAMIS) were tested successfully. Two critical
    subsystems, checkwriter and Web FMIS, were also tested with limited
    success. Due to time constraints, security for Web FMIS was bypassed
    and generating reports was not included in the test. In addition,
    because of the communications architecture, some ADPICS document prints
    (Purchase Orders and Vouchers) could not be created.
        Disaster Recovery Background.--Every night, data and software from
    the Senate's mainframe computer systems are backed up to a magnetic
    cartridge and taken to a secure off-site facility. In the event of a
    disaster in the SAA computing facilities at Postal Square, SAA
    technical staff would immediately arrange to have the data, software,
    and appropriate operating instructions forwarded from the off-site
    facility to one of the contractor's data centers. Senate staff would
    travel to this facility to oversee the restoration of all software and
    data on the contractor's computer. By contract, restoration would be
    complete within 24 hours and systems would then be available to users.
    The contracted-for facilities can currently support up to 48 concurrent
    Senate users.
        Disaster Recovery of the Payroll System.--Several key components
    are necessary for access to the payroll system after the restoration of
    data at the contractor's facility is complete. At least one terminal
    identification (term-ID) must be coded in the payroll system to allow
    CICS access because the payroll application has an internal security
    module that ties a user to a specific term-ID that controls user
    access. Another key component is FTP software that allows the movement
    of files from point to point.
        Most payroll payments are made via Direct Deposit to the Federal
    Reserve Bank using the Automated Clearing House (ACH). After the
    payroll system is closed-out for the payroll period, the SAA
    programmers provide an ACH data set which is transmitted to the Federal
    Reserve Bank in Atlanta, Georgia, via a specially configured PC
    containing an encryption board and a specialized modem. The DO also has
    an open-ended agreement with the Senate Federal Credit Union that
    allows the DO to transmit from their facility in Alexandria, Virginia.
    The Federal Reserve Bank of Atlanta must be notified prior to any
    transmission changes, but this agreement gives us the flexibility to
    transmit from an alternate access point in the event we encounter
    future transmission problems.
        Disaster Recovery for FMIS.--The DO has participated in disaster
    recovery testing of mainframe FMIS facilities since the system was
    implemented in October 1998. For the February 2003 test, DO and SAA
    Procurement staff tested the various modules of the mainframe
    application to ensure they were functioning correctly at the back-up
    site. Using workstations connected to the Senate's fiber network as
    well as laptop computers dialing into the offsite location, users have
    tested various types of document preparation and posting to FAMIS. In
    addition, batch report testing, and system inquiries into both the
    procurement and financial modules were tested. Finally, various batch
    processing tasks were tested to ensure that they perform as expected.
    In the February 2003 testing, these tests were completed
    satisfactorily. However, ADPICS printing of Purchase Orders and
    Vouchers does not work in the disaster recovery mode.
        Two components of FMIS, checkwriter and Web FMIS, were tested for
    the first time with limited success. Testing of the ``checkwriter''
    process, which generates checks and/or direct deposits in payment to
    vendors, was tested successfully in the February 2003 exercise. The
    disaster recovery testing of Web FMIS was accomplished in the 2003
    effort. This testing required installation of additional hardware and
    software at the contractor's facility. In order to perform the testing
    in the available time frame, security had to be disabled and user
    requested reports were not generated. It was anticipated that problems
    associated with both will be resolved and tested satisfactorily in the
    future.
        Printing of ADPICS purchase orders and vouchers is still not
    possible with the current disaster recovery communications
    infrastructure of ``dial-up'' lines. Workaround facilities or a revised
    infrastructure have not been finalized for this functionality. As a
    result, entities that prepare ADPICS purchase orders and vouchers,
    primarily the Secretary of the Senate and the SAA, would not be able to
    print these documents in the event of a disaster. The proposed
    Alternate Computer Facility should have more advanced infrastructure,
    allowing for the printing of these documents.
                Coordinating COOP
        The DO staff wrote a Continuation of Operations Plan (COOP) in
    2001. This document addresses issues beyond the scope of disaster
    recovery. Normal maintenance is performed on this document to ensure
    that it remains up-to-date and viable.
                             administrative offices
                        1. conservation and preservation
        The Office of Conservation and Preservation develops and
    coordinates programs directly related to the conservation and
    preservation of Senate records and materials for which the Secretary of
    the Senate has statutory authority. This office's initiatives include
    deacidification of paper and prints, phased conservation for books and
    documents, collection surveys, exhibits, and matting and framing for
    the Senate Leadership.
        Over the past year, the Office of Conservation and Preservation has
    embossed 110 books and matted and framed 515 items for the Senate
    Leadership. The office is especially proud to be a part of a Senate
    tradition. For more than 22 years, the office has bound a copy of
    Washington's Farewell Address for the annual Washington's Farewell
    Address ceremony. In 2003, a volume was bound and read by Senator Saxby
    Chambliss.
        As mandated in the 1990 Senate Library Collection Condition Survey,
    the Office of Conservation and Preservation continued to conduct an
    annual treatment of books identified by the survey in need of
    conservation or repair. In 2003, conservation treatments were completed
    for 112 volumes of a 7,000 volume collection of House Hearings.
    Specifically, treatment involved recasing each volume as required,
    using alkaline end sheets, replacing acidic tab sheets with alkaline
    paper, cleaning the cloth cases, and replacing black spine title labels
    of each volume as necessary. The Office of Conservation and
    Preservation will continue preservation of the remaining 4,165 volumes.
        This office assisted the Senate Library with 578 books sent to the
    Library Binding section of the Government Printing Office for binding.
    The Office of Conservation and Preservation also worked with the Senate
    Library on four exhibits located in the Senate Russell building
    basement corridor.
        This office continues to serve Senate offices with conservation and
    preservation of documents, books, and various other items. The office
    is currently monitoring the temperature and humidity in the Senate
    Library, the vault, and the warehouse for preservation and conservation
    purposes, and plans to phase 15 antique books for box conservation for
    storage as well as cross-train a Senate Library staff member to repair
    Senate Library materials.
                                   2. curator
        The Office of Senate Curator, on behalf of the Senate Commission on
    Art, develops and implements the museum and preservation programs for
    the United States Senate. The Office collects, preserves, and
    interprets the Senate's fine and decorative arts, historic objects, and
    architectural features; and exercises supervisory responsibility for
    the chambers in the Capitol under the jurisdiction of the Commission.
    Through exhibitions, publications, and other programs, the Office
    educates the public about the Senate and its collections.
    Collections: Commissions, Acquisitions, and Management
        Several important commissioned portraits are currently in progress,
    including paintings of Senators Bob Dole and George Mitchell for the
    Senate Leadership Portrait Collection; Senators Arthur Vandenberg and
    Robert Wagner for the Senate Reception Room; and Senator Margaret Chase
    Smith. The Vandenberg, Wagner, and Smith portraits are scheduled to be
    completed and unveiled in 2004.
        The marble bust of Vice President Quayle was unveiled last
    September. The sculpture was added to the Senate's Vice Presidential
    Bust Collection and installed on the second floor outside the Senate
    Chamber. The Curator's Office also installed a painted canvas state
    seal of Kentucky in the Majority Whip's Office.
        Thirteen objects were accessioned into the Senate Collection this
    year. Objects of note include two porcelain Senate Restaurant plates
    dating to the early 20th century; a rare cigar label from the mid-
    1800's depicting Senators Webster, Clay and Calhoun; an historic
    lithograph of George Washington by Rembrandt Peale based on the
    Senate's well-known Patri' Pater painting; as well as several historic
    prints and political cartoons.
        Thirteen new foreign gifts were reported to the Select Committee on
    Ethics and transferred to the Curator's Office. They were catalogued,
    and are maintained by the office in accordance with the Foreign Gifts
    and Decorations Act.
        In response to work on the Capitol Visitor Center (CVC) and other
    projects, the Curator's Office worked with the Architect of the Capitol
    (AOC) to relocate several sculptures in the Capitol. The marble bust of
    Constantino Brumidi was moved to accommodate the restoration efforts in
    the Brumidi Corridors; while the three marble patriot busts in the
    Senate Vestibule and the sculpture of Justice and History were
    relocated to accommodate CVC construction. Due to the size and fragile
    nature of Justice and History, a conservator was contracted to assist
    with the move, and later cleaned and reattached the two pieces in the
    sculpture's new location.
        The 2002 project to professionally photograph the Senate's
    approximately 1,000 historic prints was completed. One set of
    transparencies will be stored off-site for emergency purposes, while a
    second working set will be used for image requests, future
    publications, and new web site postings.
        The office also undertook a new initiative to photograph the 102
    historic Senate Chamber desks (one hundred on the Senate floor and two
    in storage). A contract was awarded to photograph the exterior of each
    desk, as well as the interior desk drawer. The project is phased to
    coincide with the conservation of the desks; a total of 20 desks were
    photographed in 2003, and the project will be completed in 2008. One
    set of transparencies will be stored off-site for emergency
    preparedness, while a second working set will be used for the website,
    image requests, and future publications.
        In keeping with the inventory schedule established by the
    Registration department last year, all prints, drawings, and
    advertising images in collection storage were inventoried in 2003.
    Additionally, all objects on display in the Capitol and Senate Office
    Buildings were inventoried to verify that no changes in location or
    condition occurred in the past year.
    Conservation and Restoration
        A total of 19 objects received conservation treatment in 2003.
    These included 15 Senate Chamber desks, a portrait frame and canvas, a
    1909 Russell Senate Office Building partner desk, and two historic ship
    models.
        The initiative to conserve each of the 100 historic Senate Chamber
    desks began in 1999 at the direction of the Senate Commission on Art.
    Twice a year, during Senate recess periods, desks are removed from the
    Senate Chamber and sent out for restoration. Treatment is extensive,
    and follows a detailed protocol developed to address the wear and
    degradation of these historic desks due to continued heavy use. To
    date, 76 desks have been restored and the project is on track to be
    completed in 2005. This year a condition survey of the desks already
    treated was completed. The survey found the desks in good overall
    condition. The survey noted that the Senate Cabinet shop should
    complete the installation of rubber bumpers to the arms of the Senate
    Chamber chairs to protect the front of the desks from damage.
        The gilt frame for the portrait of Pocahontas received conservation
    treatment. While removing the frame from the painting, it was
    discovered that a small section of the canvas had adhered to the liner
    of the frame as a result of a previous conservation treatment. A
    painting conservator separated the frame and painting and performed
    minor conservation treatment to clean, repair, and protect the surface
    of the painting.
        The office of Senate Curator is studying the possibility of
    conserving the canvas and frame for the painting George Washington by
    Gilbert Stuart.
        An historic partner desk, part of the original suite of furniture
    purchased for the Senate Russell Office Building in 1909 and now
    assigned to the Republican Leadership suite, was refinished according
    to a detailed protocol treatment that restores the original type of
    finish and appearance to the Russell Office Building furniture.
        Major renovation of the Rules Committee Hearing Room in the Senate
    Russell Office Building provided the opportunity for conservation
    treatment of two historic ship models in the room. The ships, one
    representing the U.S. Constitution and the other the Santa Maria, are
    part of the original 1913 decorative scheme for the room when it served
    as the Foreign Relations Committee Room. The ships were removed and
    examined by a conservator. Extensive cleaning was necessary, as well as
    repairs to the rigging, sails, and other small associated details.
        The Collections Manager participated in training sessions for the
    Capitol Police regarding the care and protection of art in the Capitol.
    The Curator's staff also continued to educate the housekeeping
    personnel on maintenance issues related to the fine and decorative arts
    collections.
    Historic Preservation
        Over the past year the preservation program continued to develop
    the infrastructure systems necessary to support all levels of
    preservation activities. Efforts focused on research (archival and
    physical investigations), documentation, record keeping, and project
    oversight.
        Research projects, in response to Senators' requests, produced room
    histories and chronologies for individual architectural features, some
    of which involved fabric analysis and condition assessments. The office
    initiated documentation projects to capture physical changes of a space
    or object, and to catalogue existing architectural elements through
    surveys. These research and documentation projects, aside from
    contributing to the office's architectural knowledge, provided a forum
    for developing and refining standards for information collection and
    reporting. In addition, various record keeping systems were established
    in order to house the findings, including relational FileMaker Pro
    databases and traditional files. Such systems allow the office to
    easily store and access information, and will continue to evolve as the
    preservation department expands its research, documentation, and
    oversight purview.
        The most significant research-related projects included the
    completion of an historic structures report (HSR) for the Senate
    Reception Room, and the creation of a collections guide to local
    archives. The HSR employed a standard format and will served as a model
    for all future HSR's. Based on this effort, the office worked with the
    AOC to develop a project for an HSR for the Senate vestibule, adjacent
    stairwell, and small Senate rotunda. Regarding the collections guide,
    the office initiated a program of systematic review of all relevant
    local research collections for the purpose of informing future research
    efforts. Through this undertaking, collection content is recorded, all
    crucial materials are copied, and the research path is clearly
    documented.
        Along with establishing internal procedures, the office worked in
    partnership with the AOC and the Sergeant at Arms to monitor all
    relevant Senate side projects and to provide guidance on those with
    potential to impact historic resources. Projects requiring considerable
    time and attention included creation of S-125A in the Brumidi
    Corridors; continued conservation of the Brumidi Corridor walls;
    initiation of a shutter restoration program; development of a plaster
    stability testing project; installation of escape mask hood storage
    units; rehabilitation of the Republican Leadership suite; and
    completion of the rehabilitation of the Democratic Leadership suite.
    Historic Chambers
        The Curator's staff continued to maintain the Old Senate and Old
    Supreme Court Chambers, and coordinated periodic use of both rooms for
    special occasions. By order of the Capitol Police, the Old Senate
    Chamber was closed to visitors after September 11, 2001. However,
    during three Senate recesses (August, October, and December), the
    historic room was opened to Capitol Guide and staff-led tours. Thirty-
    eight requests were received from current Members of Congress for
    after-hours access to the chamber. Of special significance was the re-
    enactment swearing-in ceremony for the newly-elected Senators of the
    108th Congress. Thirty-one requests were received by current Members of
    Congress for admittance to the Old Supreme Court Chamber after-hours.
    The office also worked with the AOC to install an electric lift outside
    the Old Court for the use of disabled visitors. The lift was necessary
    due to CVC construction and related accessibility issues.
    Loans To and From the Collection
        A total of 69 historic objects and paintings are currently on loan
    to the Curator's Office on behalf of Senate Leadership and officials
    within the Capitol. Throughout 2003, the Curator's staff returned seven
    objects at the expiration of their loan periods to their respective
    owners. At the request of the Republican Leadership, 12 new paintings
    were borrowed this year.
        Of significance was the office's success in locating and securing a
    loan of an historic chair originally presented to Vice President
    Charles Curtis. The chair, which reflects Curtis's Native American
    heritage, is on indefinite loan to the Senate from an anonymous lender.
        The Curator's Office continued to work with CVC staff to assemble
    information on Senate Collection objects under consideration for loan
    to the exhibition in the main gallery of the CVC.
        The Secretary's china was distributed and returned three times in
    2003. The official Senate china was inventoried and used at 34
    receptions for distinguished guests, both foreign and domestic.
    Publications and Exhibitions
        This summer the Office of Senate Curator teamed with the Government
    Printing Office to supervise the printing of the United States Senate
    Catalogue of Fine Art. The book marks the first time in its more than
    200-year history that the Senate has showcased its entire collection of
    paintings and sculpture in a publication. Using full-page color images
    and historic photographs, the book provides detailed information on
    both the subject and artist for 160 works of fine art, and is a
    significant resource for those interested in the history of the Senate
    and the heritage of its art. Advance copies of the publication were
    distributed to congressional offices in October, and additional copies
    will be available in 2004. Several brochures were reprinted, and one
    new brochure was published, The United States Capitol, Room S-219.
        The interactive exhibit Take the Puck Challenge! was deinstalled
    after a 5-year run. The office is continuing to work with the Architect
    of the Capitol to develop and install the second phase of the
    Constantino Brumidi exhibit. The Senate Cabinet shop is constructing
    exhibit kiosks to display informational panels for the paintings George
    Washington at Princeton and The Recall of Columbus.
        The Curator's office completed final drafts for the Senate
    Appropriations Committee Room and Isaac Bassett. These drafts have been
    submitted to the Appropriations Committee and the Secretary for final
    review.
        In early 2004, funding was approved to develop internet sites on
    the political cartoons of Puck and the drawings of Lily Spandorf.
    Policies and Procedures
        This year saw the passage of important legislation related to the
    Commission on Art, Public Law 108-83, the Legislative Appropriations
    Act of 2004, with several important technical amendments to the
    Commission's enabling legislation, including a provision to permit the
    Commission to impanel advisory boards, and the establishment of the
    Senate Preservation Fund. It also created a Curatorial Advisory Board,
    which will greatly enhance the Commission's ability to care for the
    Senate's collections and to evaluate potential acquisitions on behalf
    of the Senate. Such a board will be composed of respected scholars and
    curators who will assist in the development of policies and procedures,
    and will review important acquisitions to ensure appropriateness and
    validity.
        The office also created several important procedural documents in
    2003. These included standard procedures for portrait unveilings and
    foreign gifts disposition. In response to recent Senate activities, the
    office developed formal guidelines for adding or removing applied and
    fixed fine art in the Senate. The guidelines call for the creation of
    parameters for each space where art has or could be applied, and the
    office developed parameters for the Brumidi Corridors and the Senate
    Reception Room. The guidelines are currently under review. The office
    also assisted in the development of standard contract procedures that
    will be used throughout the Secretary's offices in an effort to
    standardize and safeguard the contracting process.
        Progress continued on a definitive Collections Management Policy.
    The new Curatorial Advisory Board will review the document, which will
    be presented to the Commission on Art. A first draft of the Commission
    on Art's collections management policy has been completed with peer
    review expected in 2004.
    Collaborations, Educational Programs, And Events
        As part of the seminar series conducted under the auspices of the
    Secretary of the Senate and the Sergeant at Arms, the Curator's staff
    continued to deliver periodic addresses on various aspects of the
    Senate's art and history. Staff conducted or assisted with several
    sessions, including ``Congress and the Capitol: Tour Guide Series'' and
    ``The Vice Presidential Bust Collection.''
        The office contributed numerous articles to Unum, the Secretary of
    the Senate's newsletter. Along with regular features, a new series
    highlights art from the country's four geographic regions.
    Office Administration
        The Curator's Office continued to improve office safety and
    emergency procedures. Practice evacuation drills were conducted
    monthly. The office purchased a digital camera for its COOP plan, and
    performed routine updates of COOP documents. The collection object
    files are the primary legal title, research, and management records for
    all art and historical objects in the Senate's collections. Microfiche
    and digital copies of these records will be stored off-site for
    disaster recovery and archival purposes. Additional copies will be used
    on-site for research and public information in order to lessen the
    handling and damage to the original paper records. In this way, these
    unique historical records will be preserved for future generations in
    case of disaster.
        Planning continued with AOC staff regarding both additional storage
    space in the Capitol complex and related construction outside the
    Curator's two archival storage rooms on the fourth floor of the
    Capitol. To ensure that the additional space meets the Curator's needs
    for both temporary and long-term storage for works of art and
    historical objects, a variety of considerations were addressed,
    including access, security, fire prevention, and environmental
    controls. The office worked closely with the AOC to ensure the safety
    and accessibility of these spaces during construction. At the same
    time, as part of a larger security system upgrade for the Capitol, the
    Physical Security Division coordinated replacement of the alarm systems
    for the storage rooms.
        On behalf of the Sergeant at Arms, the Government Services
    Administration (GSA) signed a three year lease with a contractor to
    provide secure, climate controlled, museum quality storage for objects
    in the Senate Collection that are not displayed and cannot be
    accommodated in the storage rooms on the fourth floor. The office
    subsequently relocated 70 objects to the new storage facility,
    primarily historical furniture, rugs, and decorative arts.
        In addition to fulfilling storage requirements, the fourth floor
    construction included renovation of the Curator's space. The changes
    have greatly improved operational efficiency and staff workspace.
    Automation
        With the assistance of a consultant, the Senate Collection database
    was restructured and is now configured as a true relational database, a
    feature that will streamline data entry, enhance data recovery and use,
    and facilitate overall maintenance. In addition, data entry screens are
    better organized and more user friendly. Additionally, some staff in
    the office upgraded to a new version of FileMaker Pro 6. This version
    is compatible with XML and already has enabled the Senate website
    information to be updated directly from the collections database.
        In response to a new initiative to publish a catalogue on the
    Senate's historic prints and engravings, clean-up of data related to
    almost 1,000 graphic images began. The Registrar and Associate
    Registrar were tasked with confirming the accuracy and completeness of
    data for the requisite fields in the database which will provide the
    basis of the identification information for the objects in the
    catalogue. In order for this to occur most effectively, each print was
    viewed and its information compared with the data that appears in the
    automated database.
        The office published an exhibit, ``Women in Senate Art,''on the
    Senate web site. This collection of paintings and sculptures
    illustrates the role of women artists in the Senate Collection, as well
    as highlights the women depicted in Senate art. The office also posted
    PDF versions of many of its publications to the web site.
    Objectives for 2004
        Conservation and preservation concerns continue to be a priority.
    Projects in 2004 will include the restoration of 15 Senate Chamber
    desks and restoration of an historic mirror in the Capitol.
    Investigation will be carried out to identify appropriate expertise and
    direction for conservation of the painting and frame for a portrait of
    George Washington by Gilbert Stuart, the First Reading of the
    Emancipation Proclamation by F.B. Carpenter, and an historic globe from
    the Senate Rules Committee Hearing Room.
        The office, through the Commission on Art, will be responsible for
    commissioning a new painting. S. Res. 177 directs the Commission on Art
    to commission by the end of the session a scene commemorating the
    Connecticut Compromise for display in the Senate.
        The office will develop regulations, guidelines, and authorities
    for administration of the Senate Preservation Fund and associated
    boards. The Curatorial Advisory Board will be furthered; any additional
    boards that the Commission deems are needed will be established; and a
    plan for the Preservation Fund developed.
        In compliance with S. Res. 178 directing the Senate Commission on
    Art to update every six months a list of art and historic furnishings,
    the office will work closely with the SAA and Senate Superintendent to
    coordinate and submit a complete inventory to the Rules Committee.
        Appropriate disposition of objects in the foreign gift collection
    will be a priority. The office has established procedures for reviewing
    and processing foreign gifts that will allow for quicker transfer of
    objects and alleviate storage issues.
        Microfiching of the fine art collection files and microfilming of
    the Isaac Bassett papers will proceed. The office will continue with
    the photography of the Senate Chamber desks. Clean-up of the historic
    print and engraving data will be a high priority.
        The next major publication will be a catalogue on the Senate's
    graphic art collection. Similar in style to the recent fine art
    catalogue, the United States Senate Catalogue of Graphic Art will
    highlight the approximately 1,000 prints in the collection along with
    essays by the Senate Curator and Associate Senate Historian. Other
    publications scheduled for 2004 include: Bassett: The Venerable
    Doorkeeper, presenting the career of Isaac Bassett and reproducing
    passages from his papers, and a brochure on the Appropriations
    Committee Room.
        The office will begin installing information panels for important
    Senate artworks, and standard labels for all fine art work will be
    developed.
        New internet exhibits will include sites on the Senate Chamber
    desks, Isaac Bassett, and the United States Senate Catalogue of Fine
    Art. The office also plans to begin publishing its historic engravings
    on the web, opening that entire collection to public view for the first
    time.
        Regarding the Senate Preservation Program, the office will expand
    its knowledge of architectural history through research and
    documentation. The office will move forward on historic structures
    reports for the Vice President's Room, Marble Room, and President's
    Room, and work with the AOC on an HSR for the Senate Vestibule and
    small Senate Rotunda. In the area of physical preservation, the office
    will continue project oversight and documentation, and will move into
    project development by identifying appropriate preservation treatments
    and sequential tasks for the Senate Reception Room and S-238. In
    conjunction with the AOC, the office will follow the existing AOC
    project development procedure to accomplish the preservation goals for
    these spaces.
                   3. joint office of education and training
        The Joint Office of Education and Training provides employee
    training and development opportunities for all Senate staff both in
    Washington D.C. and the states. There are three branches within the
    department. The technical training branch is responsible for providing
    technical training support for approved software packages. This staff
    provides instructor-led classes; one-on-one coaching sessions;
    specialized vendor provided training, computer based training; and
    informal training and support services. The professional training
    branch offers courses for all Senate staff in areas including
    management and leadership development, human resources issues and staff
    benefits, legislative and staff information, new staff and intern
    information. The Health Promotion branch provides seminars, classes and
    screenings on health related and wellness issues. This branch also
    coordinates an annual Health Fair for all Senate employees and four
    blood drives each year.
    Training Classes
        The Joint Office of Education and Training offered 694 classes in
    2003 with 6,916 Senate employees participating. The registration desk
    handled 15,390 requests for training and documentation.
        Of the above total, in the Technical Training area, 335 classes
    were held with a total attendance of 1,799 students. An additional
    1,126 staff received coaching on various software packages and other
    computer related issues. Training was provided to virtually the entire
    Senate community as the new Senate Mail Infrastructure was rolled out
    through the year.
        In the Professional Development area 359 classes were held with a
    total attendance of 5,117 students. Individual managers and supervisors
    were also encouraged to request customized training for their offices
    on areas of need.
        The Office of Education and Training is available to work with
    offices on issues related to team performance, communication or
    conflict resolution. During 2003, 40 requests for special training or
    team building were met. Professional development staff also traveled to
    State offices to conduct specialized training/team building during the
    year.
        In the Health Promotion area, 774 Senate staff participated in
    Health Promotion activities throughout the year. These activities
    included cancer screening, bone density screening and seminars on
    health related topics. Additionally 1,300 staff participated in the
    Annual Health Fair held in October.
        The Office of Education and Training also works with the Office of
    Security and Emergency Preparedness to provide security training for
    Senate staff. In 2003 the office coordinated 23 sessions of Escape Hood
    Training for 1,359 Senate staff. The office also worked with the Office
    of Security and Emergency Preparedness to mount a safety and security
    curriculum, comprised of numerous topics related to security and
    emergency preparedness.
    State Training
        Since most of the classes offered are only practical for
    Washington, D.C. based staff, the Office of Education and Training
    continues to offer the ``State Training Fair'' which first began in
    March 2000. In 2003, three sessions of this program were offered to
    state staff. There were 134 state staff participants. This office also
    offered a State Directors Forum for the first time. This program was
    designed specifically for the senior leaders in the Senators' state
    offices. There were 42 participants. The office continues to offer
    ``Virtual Classroom,'' which is an internet based training library of
    300+ courses. To date, 164 state office staff representing 59 Senators
    are using this training option.
                        4. chief counsel for employment
    Background
        The Office of the Senate Chief Counsel for Employment (SCCE) is a
    non-partisan office established at the direction of the Joint
    Leadership in 1993 after enactment of the Government Employee Rights
    Act (GERA), which allowed Senate employees to file claims of employment
    discrimination against Senate offices. With the enactment of the
    Congressional Accountability Act of 1995 (CAA), Senate offices became
    subject to the requirements, responsibilities and obligations of 11
    employment laws. The SCCE is charged with all legal defense of Senate
    offices in all employment law cases at both the administrative and
    court levels. Also, on a day-to-day basis, the office provides legal
    advice to Senate offices about their obligations under employment laws.
    Accordingly, each of the 180 offices of the Senate is an individual
    client of the SCCE, and each office maintains an attorney-client
    relationship with the SCCE.
        The areas of responsibilities of the SCCE can be divided into the
    following categories: Litigation (Defending Senate Offices in Federal
    Court); Mediations to Resolve Lawsuits; Court-Ordered Alternative
    Dispute Resolutions; Preventive Legal Advice; Union Drives,
    Negotiations and Unfair Labor Practice Charges; OSHA/Americans With
    Disability Act (``ADA'') Compliance; Layoffs and Office Closings In
    Compliance With the Law; and Management Training Regarding Legal
    Responsibilities.
    Litigation, Mediations, Alternative Dispute Resolutions
        The SCCE represents each of the 180 employing offices of the Senate
    in all court actions (including both trial and appellate courts),
    hearings, proceedings, investigations, and negotiations relating to
    labor and employment laws. The SCCE handles cases filed in the District
    of Columbia and cases filed in any of the 50 states. The SCCE
    represents a defendant Senate office from the inception of a case
    through U.S. Supreme Court review. The office handled all work in 2003
    internally without the assistance of outside attorneys.
    Union Drives, Negotiations And Unfair Labor Practice Charges
        In 2003, the SCCE handled one union drive. The Office did the
    following with respect to the union drive: trained managers and
    supervisors regarding their legal obligations during a union campaign,
    advised the client in selecting its representatives for the election,
    conducted training sessions for the employer representatives regarding
    improper conduct at elections, and conducted an investigation to
    determine whether ground rules exist to challenge the election results.
    OSHA/ADA Compliance
        The SCCE provides advice and assistance to Senate offices in
    complying with the applicable OSHA and ADA regulations; representing
    them during Office of Compliance inspections; advising State offices on
    the preparation of the Office of Compliance's Home State OSHA/ADA
    Inspection Questionnaires; assisting offices in the preparation of
    Emergency Action Plans; and advising and representing Senate offices
    when a complaint of an OSHA violation has been filed with the Office of
    Compliance or when a citation has been issued. In 2003, the SCCE
    handled 5 OSHA complaint procedures.
    Management Training Regarding Legal Responsibilities
        The SCCE conducts legal seminars for the managers of Senate offices
    to assist them in complying with employment laws. In 2003, the SCCE
    gave 75 legal seminars to Senate offices. Among the topics covered
    were:
      --Preventing and Addressing Sexual Harassment in the Workplace;
      --The Congressional Accountability Act of 1995: What Managers Need to
            Know About Their Legal Obligations;
      --Managers' Obligations Under the Family and Medical Leave Act;
      --The Legal Pitfalls of Hiring the Right Employee: Advertising,
            Interviewing, Drug Testing and Background Checks;
      --Disciplining, Evaluating and Terminating an Employee Without
            Violating Employment Laws;
      --Management's Obligations Under the Americans With Disabilities Act;
      --Equal Pay for Equal Work: Management's Obligations Under the Equal
            Pay Act;
      --The Immigration Reform and Control Act of 1986 (IRCA): Steps Your
            Office Must Take to Verify Employment Eligibility;
      --Enhancing Diversity and Avoiding Discrimination in the Workplace;
            and
      --Workplace Violence.
    Preventive Legal Advice
        At times, a Senate office will become aware that an employee is
    contemplating suing, and the office will request the SCCE's legal
    advice and/or that the SCCE negotiate with the employee's attorney
    before the employee files a lawsuit. The successful resolution of such
    matters substantially reduces an office's liability.
        Also, the SCCE advises and meets with Members, Chiefs of Staff,
    Administrative Directors, Office Managers, Staff Directors, Chief
    Clerks and General Counsels at their request. The purpose is to prevent
    litigation and to minimize liability in the event of litigation. For
    example, on a daily basis, the SCCE advises Senate offices on matters
    such as disciplining and terminating employees in compliance with the
    law, handling and investigating sexual harassment complaints,
    accommodating the disabled, determining wage law requirements, meeting
    the requirements of the Family and Medical Leave Act, and management's
    rights and obligations under union laws and OSHA.
                              5. senate gift shop
        Pursuant to 2 U.S.C. 121(d), the Senate Gift Shop was established
    in 1992 under administrative direction and supervision of the Secretary
    of the Senate. With each successive year since its establishment, the
    Senate Gift Shop has continued to provide outstanding products and
    services that maintain the integrity of the Senate as well as increase
    the public's awareness of the mission and history of the U.S. Senate.
    The Gift Shop provides services to Senators, staff and employees of the
    Senate, as well as constituents, and the many visitors to the U.S.
    Capitol complex. Products include a wide variety of souvenirs,
    collectibles, and fine gift items created exclusively for the U.S.
    Senate. Services include special ordering of personalized products and
    hard-to-find items, custom framing, gold embossing, engraving, and
    shipping. Additional special services include the distribution of
    educational materials to tourists and constituents visiting the Capitol
    Building and Senate Office Buildings.
    Facilities
        For several years, the services offered by the Senate Gift Shop
    were over-the-counter sales to walk-in customers at a single location.
    Today, after more than ten years in operation, and as a result of
    extended services and continued growth, the Gift Shop now provides
    service from three different locations. Services from these locations
    include walk-in sales, telephone orders, fax orders, mail orders, and a
    variety of special order and catalog sales.
    Sales Activity
        The Senate Gift Shop recorded sales of $1,516,594.88 for fiscal
    year 2003. Cost of goods sold during this same period were
    $1,114,899.59, accounting for a gross profit of $360,172.97. Records
    show total sales in fiscal year 2002 were $1,418,065.88. This
    represents an increase in sales of $98,529.00 from fiscal year 2002 to
    fiscal year 2003.
        In addition to tracking gross profit from sales, the Senate Gift
    Shop maintains a revolving fund and a record of on-hand inventory. As
    of October 1, 2003, the balance in the revolving fund was $1,109,717.22
    with on-hand inventory valued at $2,304,772.88.
        A General Accounting Office (GAO) audit of the gift shop's fiscal
    year 2002 sales transactions, requested by the Secretary, is in
    progress and will be completed this year.
    Additional Activity
        One of the most important objectives for 2003 was replacing point-
    of-sale and accounting software, Basic Four, which is more than 20
    years old and no longer meets the increasingly unique needs of the Gift
    Shop. (This old application was shared with the Stationery Room). A
    contractor was selected to perform the system installation including
    the required hardware for the new retail and financial management
    system. The contract is nearing completion and cut-over to the new
    system occurred in February 2004. The system is now in an acceptance
    stage to ensure that all aspects are functioning properly.
        The selected software package, Microsoft Retail Management Systems:
    Headquarters, Store Operations and Great Plains Financial, was
    purchased in late 2002. It is an off-the-shelf package that requires
    little modification to meet the special technical requirements of
    Senate Gift Shop operations. Currently, Gift Shop staff are creating
    the necessary databases that will serve as the foundation for the new
    retail system including inventory details, financial data and other
    information required for detailed reports. Contractors are now training
    Gift Shop staff on the new system and will continue to provide hardware
    and software support after the cut-over date.
        The installation of the required hardware--servers, computers,
    monitors, and point of sale terminals--and software, is mostly
    complete. The majority of hardware and software along with the support
    services necessary for full implementation of the new system were
    funded through fiscal year 2003 appropriations allocated to the
    Secretary of the Senate. A few additional items, i.e., application user
    fees, required funds which were appropriated in fiscal year 2004.
        It is important to note that the new system will not only meet the
    Gift Shop's current and near-future requirements, but it will also
    accommodate potential add-on features.
    Accomplishments and New Products in 2003
                Official Congressional Holiday Ornaments
        In 2003 the Senate Gift Shop introduced the second ornament in the
    2002-2005 series, the third consecutive ``four-year ornament series.''
    Each ornament features an architectural milestone of the Capitol
    building and is packaged with corresponding historical text taken from
    the book, History of the United States Capitol: A Chronicle of Design,
    Construction, and Politics by William C. Allen, architectural historian
    in the office of the Architect of the Capitol.
        Our 11th annual ornament, released in 2003, pictures a watercolor
    of the Capitol as it appeared in 1834 as depicted by New York architect
    Alexander Jackson Davis. In keeping with a Gift Shop tradition, the
    authentic colors of the original watercolor were reproduced onto a
    white porcelain stone and set with a brass frame finished in 24kt gold.
        Holiday sales of the 2003 ornament were very good with additional
    sales expected throughout 2004. Revenue from selling nearly 35,000 of
    these ornaments has generated more than $40,000 in scholarship funds
    for the Senate Child Care Center.
                Porcelain ``Legislation'' Box
        ``Legislation'' was the second in a series of four porcelain boxes
    that displays different images from the Constantino Brumidi fresco
    painted on the ceiling of the President's Room in the Senate Wing of
    the United States Capitol. The first box in the series, ``Liberty'' was
    released in 2002. Each of the final two porcelain boxes will display
    one of the two remaining allegorical figures, Executive and Religion,
    in Brumidi's painting. The boxes will be released in late 2004 and late
    2005, respectively.
                Capitol Visitor Center (CVC) Coin Products
        To better promote the CVC and to better showcase the CVC coins, the
    Gift Shop incorporated coins into a variety of unique gift items. While
    we have noticed an increase in coin sales due to the creation of these
    items, we do not anticipate any substantial reduction of inventory
    until the actual opening of the CVC. The items developed to date
    include:
      --CVC coins encased in Lucite paperweights, which have sold well
            since their development last year.
      --A variety of ladies' and men's wristwatches and pocket watches with
            CVC coins serving as the face (developed by the Gift Shop and a
            vendor/manufacturer).
      --Introductions of additional items currently in development are
            expected in 2004.
                Senate Seal Watches
        The ``official Senate watch'' is now provided by a different
    manufacturer. The new men's and ladies' watches have the same look and
    feel as the discontinued watches, with additional space on the
    backplate for personalized engravings. The first shipment of watches
    was received in December and is expected to be a popular gift item.
    Projects and New Ideas for 2004
                United States Senate Catalogue of Fine Art
        The Gift Shop is working with the Senate Curator in order to secure
    copies of the new publication, United States Senate Catalogue of Fine
    Art.
                Capitol Complex Trees
        During the early construction stages of the CVC the Senate Gift
    Shop arranged for the recovery of the felled trees from the grounds of
    the Capitol complex. The recovered trees have been milled and kiln
    dried. The resulting 12,000 board feet of cut lumber are being
    temporarily stored in a warehousing facility.
        While the Gift Shop continues researching ideas for products that
    can be produced from the recovered trees, the general thought is to
    create presentation pieces for official use and a variety of
    collectors' items available for sale to the general public.
                108th Congressional Plate
        The series of Official Congressional Plates will continue this year
    with the design, development, and manufacture of the 108th
    Congressional Plate. As in previous years, the Gift Shop will rely on
    Tiffany & Co. to produce the plates.
        In addition we are creating a library of complementary designs and
    artwork from which designs for future Congressional plates could be
    chosen. This library will include mock-ups produced in conjunction with
    the selection for the artwork chosen for the 108th Congressional Plate.
                              6. historical office
        Serving as the Senate's institutional memory, the Historical Office
    collects and provides information on important events, precedents,
    dates, statistics, and historical comparisons of current and past
    Senate activities for use by members and staff, the media, scholars,
    and the general public. The Office advises Senators, officers, and
    committees on cost-effective disposition of their non-current office
    files and assists researchers in identifying Senate-related source
    materials. The Office keeps extensive biographical, bibliographical,
    photographic, and archival information on the 1,775 former Senators. It
    edits for publication historically significant transcripts and minutes
    of selected Senate committees and party organizations, and conducts
    oral history interviews with key Senate staff. The photo historian
    maintains a collection of approximately 40,000 still pictures that
    includes photographs and illustrations of most former Senators, as well
    as news photographs, editorial cartoons, photographs of committees in
    session, and other images documenting Senate history. The Office
    develops and maintains all historical material on the Senate website.
    Editorial Projects
        Executive Session Transcripts of the Permanent Subcommittee on
    Investigations, 1953-1954.--The Historical Office completed editing,
    annotating, and indexing 3,800 pages of previously unpublished
    executive-session hearing transcripts produced by the Senate Permanent
    Subcommittee on Investigations (PSI) under the chairmanship of Senator
    Joseph R. McCarthy (1953-1954). In May 2003, the PSI released the
    resulting five-volume work in both printed and electronic editions. The
    transcripts received extensive national media attention.
        The Senate Leader's Lecture Series.--From 1998 through 2002, the
    Senate Majority Leader hosted a series of lectures on Senate
    leadership. These talks, featuring former Senate presidents and party
    floor leaders, were held in the Capitol's historic Old Senate Chamber
    before an audience of current Senators and invited guests. The
    Historical Office provided production and publication support for the
    series, including a 188-page volume containing all nine lectures and
    separate remarks by President Pro Tempore Strom Thurmond. That book,
    entitled Leading the United States Senate, was published by the
    Government Printing Office in September 2003.
        The Documentary History of the United States Senate.--The
    Historical Office is conducting an ongoing documentary publication
    program to bring together in edited volumes fundamental source
    materials that will help explain the development of the Senate's
    constitutional powers and institutional prerogatives. Currently in the
    research and writing stage are volumes on Senate impeachment trials,
    the Senate's consideration of controversial treaties, and the evolution
    of the Senate's standing rules.
        Administrative History of the Senate.--During 2003, the assistant
    historian continued the research and writing of this historical account
    of the Senate's administrative evolution, taking advantage of newly
    discovered archival resources and improved search capabilities for
    contents of nineteenth century newspapers and periodicals. This study
    traces the development of the offices of the Secretary of the Senate
    and Sergeant at Arms, considers nineteenth and twentieth century reform
    efforts that resulted in reorganization and professionalization of
    Senate staff, and looks at how the Senate's administrative structure
    has grown and diversified over the past two centuries.
        Biographical Directory of the U.S. Congress, 1774-present.--In May
    2003, both Houses of Congress adopted H. Con. Res. 138, authorizing
    printing of the sixteenth edition of the Biographical Directory of the
    United States Congress, 1774-2005. The first edition of this
    indispensable reference source was published in 1859; the most recent
    edition appeared in 1989. Since 1989, the assistant historian has added
    many new biographical sketches, has expanded bibliography entries, and
    has revised and updated most of the database's 1,875 Senate entries.
    The assistant historian has updated the Congress-by-Congress listing of
    members through the 108th Congress, in preparation for the new print
    edition, and has completed the editing and proofing of existing
    information to allow for expanded search capabilities on the online
    version at http://bioguide.congress.gov.
        Capitol Visitor Center Exhibition Content Development.--The Senate
    historian assisted in preparing detailed plans for the exhibition
    gallery of the Capitol Visitor Center. Three staff historians
    contributed to exhibition scripts that set forth the chronological
    history of the Senate and describe the role of Congress in helping to
    realize the nation's basic aspirations.
    Member Services
        Senate Historical Minutes.--At the request of the Senate Democratic
    Leader, the Senate historian prepared and delivered a ``Senate
    Historical Minute'' at thirty-one Senate Democratic Conference weekly
    meetings during the year. These four-hundred-word Minutes are designed
    to enlighten members about significant events and personalities
    associated with the Senate's institutional development, and with
    familiar objects and places within the Capitol. They subsequently
    appear each week in The Hill newspaper. The nearly 200 Minutes prepared
    since 1997 are available as a feature on the Senate website.
        Members' Office Records Management and Disposition Assistance.--The
    Senate archivist continued her program of assisting members' offices
    with planning for the preservation of their permanently valuable
    records, with special emphasis on archiving electronic information from
    computer systems and transferring valuable records to a home state
    repository. The archivist completed and the Senate published a
    comprehensive revision of Records Management Handbook for United States
    Senators and Their Archival Repositories together with a revised
    pamphlet for Senate staff entitled ``Senators' Papers: Management and
    Preservation Guidelines.'' The archivist assisted in the production of
    an ``Opening an Office Handbook'' and produced a brochure, ``New
    Senators Briefing: Your Historical Records.'' The archivist updated the
    archival sections of the handbook, ``Closing a Senate Office.''
        Committee Records Management and Disposition Assistance.--The
    Senate archivist provided each committee with staff briefings, record
    surveys, guidance in preservation of information in electronic systems,
    and instructions for the transfer of permanently valuable records to
    the National Archives' Center for Legislative Archives. 3,530 feet of
    records were transferred to the Archives. The archivist completed a
    review of records disposition guidelines for the offices under the
    Secretary's jurisdiction. The Office's archival staff continued to
    provide processing assistance to committees and administrative offices
    in need of basic help with noncurrent files.
        Association of Centers for the Study of Congress.--In May, the
    Historical Office joined with the National Archives' Center for
    Legislative Archives, and the Robert C. Byrd Center for Legislative
    Studies to conduct a conference designed to establish an association of
    university-based research centers devoted to the study of Congress. The
    Association of Centers for the Study of Congress will conduct its first
    meeting in May 2004. Among the centers involved are those associated
    with the public careers of former Senators Howard Baker, Bob Dole,
    Everett Dirksen, Margaret Chase Smith, George Aiken, Thomas Dodd,
    Wendell Ford, Hubert Humphrey, Richard Russell, John Stennis, and John
    Glenn.
    Oral History Program
        The Historical Office conducts a series of oral history interviews,
    which provide personal recollections of various Senate careers. This
    year, oral history interviews were completed with J. Stanley Kimmitt,
    former Secretary of the Senate; C. Abbott Saffold, former Democratic
    Secretary; Jade West, former staff director of the Republican Policy
    Committee; Tom C. Korologos, former staff of Senator Wallace Bennett
    and White House congressional liaison; Arthur Rynearson, deputy Senate
    Legislative Counsel; Alphonso Lenhardt, former Senate Sergeant at Arms;
    and Martin Gold, procedural counsel to the Majority Leader.
    Photographic Collections
        The photo historian continued to expand the Office's 40,000-item
    photographic collection, acquiring images of former Senators not
    previously represented in the collection and photographing historically
    significant Senate events, including hearings of Senate committees.
    Digital images of frequently used photographs were created to promote
    their use and safeguard the originals. Images are now being transmitted
    to patrons via e-mail or CD, and can be printed onto photographic paper
    in the Historical Office. The photo historian also continued to catalog
    photographic negatives into an image database in order to increase
    intellectual control over the Office's image collection. An exhibition
    of Capitol photographs (1900-1950) was developed for display on the
    Capitol's second floor.
    Educational Outreach
        In coordination with the Senate Office of Education and Training,
    Historical Office staff provided seminars on the general history of the
    Senate, women Senators, and Senate floor leadership. Office staff also
    participated in seminars and briefings for specially scheduled groups.
        On April 18, 2003, the Washington Post published a highly
    complimentary feature-length article, ``Ensuring a Senate Inscribed in
    History,'' on the operations of the Historical Office.
                               7. human resources
        The Office of Human Resources (HR) was established in June 1995 as
    a result of the Congressional Accountability Act. The Office focuses on
    developing and implementing human resources policies, procedures, and
    programs for the Office of the Secretary of the Senate that not only
    fulfill the legal requirements of the workplace but which complement
    the organization's strategic goals and values. This includes recruiting
    and staffing; providing guidance and advice to managers; training;
    performance management; job analysis; compensation planning, design,
    and administration; leave administration; records management; employee
    handbooks and manuals; internal grievance procedures; employee
    relations and services; and organizational planning and development.
        The Human Resources Office also administers the Secretary's Public
    Transportation Subsidy program and the Summer Intern Program that
    offers college students the opportunity to gain valuable skills and
    experience in a variety of Senate support offices.
    Classification and Compensation Review
        For the Secretary of the Senate's operation, the Office of Human
    Resources has conducted a complete classification and compensation
    study which includes, for the first time, a comprehensive collection of
    current job classifications and specifications for every position.
    Furthermore, the pay plan and bands reflect the accurate and equitable
    layout of all staff within the organization. Needs for the upkeep of
    the system are being drafted to afford the Secretary the opportunity to
    keep the system current.
    Policies and Procedures
        HR will continue to update and revise the Employee Handbook of the
    Office of the Secretary. With nuances in employment law and other
    advances, policies need to be reviewed, revised and updated annually.
        In regard to potential violations of said procedures, the
    Secretary, through HR and the Senate Chief Counsel for Employment, has
    developed an effective method to coordinate inquiries.
    Attraction and Retention of Staff
        HR is responsible for the ongoing task of advertising new vacancies
    or positions, screening applicants, interviewing candidates and
    assisting with all phases of the hiring process. The office works
    closely with the applicable department to ensure the process moves
    smoothly and expeditiously. HR presents to the Secretary the
    recommendations of department heads concerning payroll and hiring
    actions.
    Training
        In conjunction with the Senate Chief Counsel for Employment, HR
    prepares training for department heads and staff. Some of the training
    topics include Sexual Harassment, Interviewing Skills, Conducting
    Background Checks, Providing Feedback to Employees and Goal Setting.
    Orientation of New Staff
        Since first impressions make such a lasting impression, HR has
    developed a new consistent means of orienting new staff joining the
    Office of the Secretary. This new system allows for a seamless
    transition from the orientation of HR, policies, parking, and metro
    subsidy, to the particular department the staff member is joining and
    fosters a greater overall understanding of the Secretary's operation.
    Interns and Javits Fellows
        HR coordinates both the Secretary's internship program and the
    Javits and Heinz Fellowship programs. The Javits program is due to
    terminate in September 2004. The Heinz Fellowship is also due to
    terminate at the end of this fiscal year. HR is aware that the Heinz
    Foundation is currently working to secure reauthorization for the
    program.
    Employee Outreach, Feedback and Development
        HR acts as a liaison for staff of the Secretary in soliciting and
    receiving feedback, suggestions and insight in an effort to continually
    improve processes and procedures.
        A key to maintaining and improving performance standards, as well
    as ensuring completion of organizational objectives, is providing
    employee feedback. HR continues to work with the Executive Office and
    department heads to establish objectives that reflect the mission of
    the Senate and the Secretary's Office.
        HR is in the process of obtaining feedback on the current Employee
    Feedback and Development Program (EFDP) process. A new modified tool
    will be created to encompass the recommendations and efficiencies
    brought to light over the past two years.
        HR has initiated development of an Elder Care Fair that will be
    available for all Senate staff interested in learning more about local
    and nationwide services available to assist the elderly and those
    responsible for their care. HR is working closely with the Senate
    Office of Education and Training and the Employee Assistance Program to
    identify and contact agencies that may be of assistance to Senate
    staff.
    Employee Self-Service (ESS)
        HR has implemented use of the Employee Self-Service system (ESS)
    which is a secure system enabling Secretary staff to review and update
    personnel information pertaining to addresses, phone numbers and
    emergency contact information. Employees are now able to review and
    correct information to their electronic personnel records kept by HR.
    Staff and managers can also access leave records and reports through
    this system. The ability to review and update this information is
    instrumental to maintaining accurate contact lists for emergencies or
    other contingencies.
    New Leave Tracking System
        In the past, employees of the Secretary of the Senate had to
    maintain ``timesheets'' for each day of work throughout the year. This
    system was maintained by each employee and signed off on by the
    supervisor and/or department head. The accrual rates for both sick
    leave and annual leave, in conjunction with the manual attendance
    tracking, proved a tedious task for all. HR has created a new leave
    tracking system whereby attendance is only recorded by the exception,
    or absence. Leave slips have been created for staff to complete and
    submit prior to taking leave. The supervisor approves the request and
    forwards it to HR to be entered into the system. Staff will then have
    access to their leave balances which will be accrued and maintained by
    HR.
                             8. information systems
        The staff of the Department of Information Systems provide
    technical hardware and software support for the Office of the Secretary
    of the Senate. Information Systems staff also work closely with the
    application and network development groups within the Sergeant at Arms
    (SAA), the Government Printing Office (GPO), and outside vendors on
    technical issues and joint projects. The Department provides computer
    related support for the all LAN-based servers within the Office of the
    Secretary of the Senate. Information Systems staff provide direct
    application support for all software installed workstations, evaluate
    new computer technologies, and implement next generation hardware and
    software solutions.
    Mission Evaluation
        The primary mission of Information Systems Department is to
    continue to provide the highest level of customer satisfaction and
    computer support for all departments within the Office of Secretary of
    the Senate. Emphasis is placed on the creation and transfer of
    legislation to outside departments and agencies.
        As in fiscal year 2002, improved procedures were adopted to stretch
    support across all Secretary departments. With one exception, which
    should be completed in June, all offices have been updated to the
    Senate Mail Exchange Application as the principal e-mail application.
    Individual offices that previously maintained cc:Mail post offices,
    namely Public Records, the Stationery Room, and Page School, were
    combined into one central Secretary Microsoft Exchange server located
    at Postal Square.
        For security reasons, the Secretary of the Senate network is a
    closed local area network to all offices within the Senate. Information
    Systems staff continue to provide a common level of hardware and
    software integration for these networks, and for the shared resources
    of inter-departmental resources. Information System staff continue to
    actively participate in all new project designs and implementations
    within the Secretary of the Senate operations.
    Improvements to the Secretary's LANs
        The Senate chose Windows NT as the standard network operating
    system in 1997. The Senate standard will shift to Microsoft Server 2000
    operating system software in fiscal year 2004.
        The continuing support strategy is to enhance existing hardware and
    software support provided by the Information Systems Department, and
    augment that support with assistance from the Sergeant at Arms whenever
    required. The Secretary's network supports approximately 300 staff,
    intern, and patron accounts in the Capitol, the Senate Hart, Russell,
    Dirksen buildings, and the Page School.
    Fiscal Year 2003 Highlights
        Installed 3 LIS major production releases on all Legislative
    workstations and laptops. In conjunction with the SAA Office of
    Application Development, legislative software applications are updated
    and revised on a continual basis. One notable enhancement in fiscal
    year 2003 was the continuing design and development of the Senate
    Journal application.
        Replaced all Captioning Services workstations with improved
    hardware and software applications and installed Secretary-Judiciary
    workstation pilot hardware and software to support voice-to-text speech
    recognition applications.
        Renovated Gift Shop hardware and software workstations and servers
    to implement improved point-of-sales operation.
        Added Quantum Snap Server for existing Stationery server emergency
    data backup operation.
        Updated Official Reporter workstations to Windows 2000 operating
    systems and improved high speed printing operations.
        Installed new Library Oracle server and Web server on schedule in
    July 2003; Senate Library catalog database deployment for intranet
    operation is scheduled for 2004.
        Deployed enterprise-wide virus-patch installation process to
    automatically download Norton anti-virus definition files to Secretary
    workstations. No legislative workstations were affected by the August
    2003 outbreaks of the Blaster and Welchia viruses which distributed
    security vulnerabilities for servers and workstations.
        Deployed three major hardware COOP LIS operational upgrades. In May
    2003, all legislative department heads were provided a laptop with
    secure-id/VPN access to the Senate Network that mirrors their office
    desktop operation. In October, a second set of laptops was deployed
    off-site. In December a third mirrored set was installed at the
    Alternate Chamber facility. The setup and installation of the January
    2004 Alternate Chamber exercise utilized equipment from outside the
    perimeter of the exercise site.
        Installed and replaced original Secretary intranet development web
    server. This server will function as the primary data warehouse for the
    Office of Human Resources' People-Trak database. Networking routes have
    been established for all Secretary department access to this web
    server.
        The Historical Office completed the McCarthy publication project
    marking the 50th anniversary of these hearings. Digital scanning
    techniques implemented and adopted three years ago by our office
    continue to be utilized in all Secretary departments.
    Fiscal Year 2004 Objectives
        Implementation of the SAA Active Directory Redesign project in 2004
    will present a rapid change in server-client hardware and software
    functionality for all Secretary offices. System requirements have been
    developed and forwarded to SAA to meet and provide continual
    application growth for all departments. This change in networking
    structure will allow Information System staff to migrate from a SINGLE-
    LAN support group to an Enterprise-Level support organization--as
    extending the flexibility of available support to all departments is
    vital to the IT growth within the Office of the Secretary.
                         9. interparliamentary services
        The Office of Interparliamentary Services (IPS) has completed its
    22nd year of operation. IPS is responsible for administrative,
    financial, and protocol functions for all interparliamentary
    conferences in which the Senate participates by statute, for
    interparliamentary conferences in which the Senate participates on an
    ad hoc basis, and for special delegations authorized by the Majority
    and/or Minority Leaders. The office also provides appropriate
    assistance as requested by other Senate delegations.
        The statutory interparliamentary conferences are: NATO
    Parliamentary Assembly; Mexico-United States Interparliamentary Group;
    Canada-United States Interparliamentary Group; and British-American
    Interparliamentary Group.
        Two additional interparliamentary conferences were created in 2003
    which will meet for the first time this year. The new conferences are
    United States-Russia and United-States China Interparliamentary Group.
        In June, the 42th Annual Meeting of the Mexico-U.S.
    Interparliamentary Group was held in Tennessee. In July, the British-
    American Interparliamentary Group meeting was held in Virginia.
    Arrangements for both of these successful events were handled by the
    IPS staff.
        As in previous years, all foreign travel authorized by the
    Leadership is arranged by the IPS staff. In addition to delegation
    trips, IPS provided assistance to individual Senators and staff
    traveling overseas. Senators and staff authorized by committees for
    foreign travel continue to call upon this office for assistance with
    passports, visas, travel arrangements, and reporting requirements.
        IPS receives and prepares for printing the quarterly financial
    reports for foreign travel from all committees in the Senate. In
    addition to preparing the quarterly reports for the Majority Leader,
    the Minority Leader, and the President Pro Tempore, IPS staff also
    assist staff members of Senators and committees in filling out the
    required reports.
        Interparliamentary Services maintains regular contact with the
    Office of the Chief of Protocol, Department of State, and with foreign
    embassy officials. Official foreign visitors are frequently received in
    this office and assistance is given to individuals as well as to groups
    by the IPS staff. The staff continues to work closely with other
    offices of the Secretary of the Senate and the Sergeant at Arms in
    arranging programs for foreign visitors. In addition, IPS is frequently
    consulted by individual Senators' offices on a broad range of protocol
    questions. Occasional questions come from state officials or the
    general public regarding Congressional protocol.
        On behalf of the Leadership, the staff arranges receptions in the
    Senate for Heads of State, Heads of Government, Heads of Parliaments,
    and parliamentary delegations. Required records of expenditures on
    behalf of foreign visitors under authority of Public Law 100-71 are
    maintained in the Office of Interparliamentary Services.
        Planning is underway for the 45nd Annual Meeting of the Canada-U.S.
    Interparliamentary Group to be held in the United States in 2004.
    Advance work, including site inspection, will be undertaken for the
    44nd annual Mexico-U.S. Interparliamentary Group meeting to be held in
    the United States in 2005. Preparations are also underway for the
    spring and fall sessions of the NATO Parliamentary Assembly.
                                  10. library
        The Senate Library provides legislative, legal, business, and
    general information services to the United States Senate. The Library
    collection encompasses legislative documents beginning with the
    Continental Congress in 1774; current and historic executive and
    judicial branch materials; and an extensive book collection on American
    politics, history, and biography. Collection resources also include a
    wide array of online systems used to provide nonpartisan, confidential,
    timely, and accurate information services to the Senate.
    Notable Achievements
        Information Services inquiries increased more than 14 percent over
    2002 totals.
        Significant progress made toward making online catalog available
    Senate-wide.
        Submitted proposal to Sergeant at Arms for off-site storage
    facility.
        XML-generated tables posted on Senate.gov, LIS, and Webster from a
    single file.
        Senate Floor Schedule on Senate.gov posted nightly by Library
    staff.
        Deaccessioned and transferred to the Federal Depository Program
    24,293 outdated, superseded, and surplus government documents.
    Information Services
                Senate.gov and the Legislative Information System (LIS)
        The Senate Library's role in the production of www.senate.gov
    significantly expanded in 2003. The Information Services Team focused
    on increasing their knowledge and skills with the latest Internet
    technologies. Each librarian accepted additional responsibility to
    research, write, edit, and post time-sensitive information on the
    Senate's official public Internet site. Reference Librarians worked
    closely with the Webmaster to coordinate and plan the rapidly growing
    site.
        The Senate Library is dedicated to creating an Internet site that
    provides up-to-the-minute, well-organized information to dual
    audiences, both Senate offices and the general public. Presentation of
    timely information on Senate.gov, enhanced by Library-authored
    navigational guides, significantly improves the Senate's ability to
    disseminate information. The most popular Senate Library-authored pages
    on Senate.gov and LIS had 348,198 visitors in 2003.

          VISITORS TO SENATE LIBRARY--AUTHORED SENATE.GOV AND LIS PAGES

    ------------------------------------------------------------------------
    Active Legislation on Senate.gov...........................       95,301
    Reference on Senate.gov....................................      192,725
    Virtual Reference Desk on Senate.gov.......................       41,301
    Hot Bills List on LIS......................................       12,353
    Appropriations Tables, Fiscal Year 1987-2004 on LIS........        6,518
                                                                ------------
          TOTAL................................................      348,198
    ------------------------------------------------------------------------

        Librarians are critical in the development of information
    architecture, which is the underlying organization system for an
    Internet site. Well-designed information architecture greatly improves
    the workflow of adding new information and also makes it easier to
    locate existing information. Examples are numerous, but they include
    Active Legislation and the Virtual Reference Desk. These pages provide
    valuable gateways to thousands of legislative documents, articles,
    biographies, statistical tables, and works of art categorized by key
    topics. The addition of the important ``teasers,'' help visitors
    navigate through more than 10,000 pages of information on Senate.gov.
        The Library continues to serve as the official LIS Help Desk for
    Senate staff and provides LIS training sessions in conjunction with the
    Office of Education and Training. Reference Librarians participated in
    15 LIS training events for Senate staff during 2003.
    Patron Services and Document Delivery
        Inquiry statistics for phone, fax, e-mail, and walk-in visitors
    increased more than 14 percent in 2003 (46,234), surpassing the target
    of a 3 percent increase over 2002 totals (40,359). Visitors to Library-
    produced pages on Senate.gov and LIS are factored into the inquiry
    statistics this year for the first time, having both the effect of more
    accurately reflecting and dramatically increasing the 2003 inquiry
    total (394,432).

                     INFORMATION SERVICES INQUIRY STATISTICS

    ------------------------------------------------------------------------
    Phone, Fax, E-mail Requestors..............................       34,081
    Walk-in Visitors...........................................       12,153
    Visitors to Senate Library-Authored Senate.gov and LIS           348,198
     Pages.....................................................
                                                                ------------
          TOTAL................................................      394,432
    ------------------------------------------------------------------------

        Library activity is also reflected by the number of photocopies
    produced (156,891) and the number of pages printed (6,945) in the
    Micrographics Center. Technology that scans documents from the
    Library's extensive microform collection of congressional and executive
    materials, newspapers, and magazines has become a popular tool. It
    enables staff to post copies of historic documents on Senate.gov or e-
    mail them directly to researchers. Use of these technologies decreased
    the number of information packages hand-delivered to Senate offices
    (4,078), loaned books and documents (1,664), and outgoing faxes
    (2,747).
    Webster
        The librarians have forged a well-deserved reputation on Capitol
    Hill as authorities in the field of information service and are
    frequently asked for consultation. In 2003 administrators of the
    Sergeant at Arms' Senate Information Services (SIS) program relied upon
    the Senate Library to thoroughly review the online version of the
    Leadership Directories before purchasing a Senate-wide license. A
    second major project involving the reference librarians was their
    participation in a SIS project to identify a replacement for the
    outdated News Edge system on Webster. The Library also agreed to serve
    as the Search Help Desk to assist all Senate staff in the use of
    commercial research tools provided by SIS via the Front Page on
    Webster. Serving as the Search Help Desk requires that each member of
    the Information Services Team maintain expert search skills for
    LexisNexis, WestLaw, ProQuest, Leadership Directories, Congressional
    Quarterly, Bureau of National Affairs, National Journal, Federal
    Document Clearinghouse, Associated Press, and Reuters.
    Client Relations
        The Library hosted 27 client relations staff events during 2003,
    including quarterly Services of the Senate Library Seminars, a State
    Fair, five District-State Seminars, monthly New Staff Seminars, and a
    reception for office managers and chief clerks. The Library also
    conducted two special seminars for the Senate Page School. New
    borrowing accounts established for 350 Senate staff during 2003 reflect
    the success of the Library's public relations program.
        The Senate Library is proud to have a reputation among information
    professionals and researchers. Tours and demonstrations during 2003
    brought 68 individuals from organizations including the annual
    Depository Library Conference, University of North Carolina, Federal
    Library and Information Center Committee, and the University of
    Maryland. Tours and research assistance was extended to foreign
    visitors from Brazil, Japan, Russia, Egypt, England, and Hong Kong.
        This is the sixth year that the Library hosted National Library
    Week activities. This year's book talk featured Senator Dale Bumpers
    who spoke about his autobiography, The Best Lawyer in a One-Lawyer
    Town: A Memoir. More than forty staff enjoyed his candid reminiscences
    of past and current political figures. The annual dessert reception
    brought an additional 115 Senate staff to the Library. These annual
    events are excellent public relations tools that are enjoyed by
    frequent Library users and by new Senate staff.
        Library staff produced three new display cases in the Russell
    Building corridor in 2003. The new displays included What Hath God
    Wrought: Communication Technology in the Senate. The display documents
    the use of television, radio, telephone, and telegraph in the Senate
    since Samuel F.B. Morse transmitted the first official telegraph
    message from the Capitol in 1844. A second display was the Signers of
    the Declaration of Independence. The display features a first-edition
    copy of Annual Register, or a View of the History, Politics, and
    Literature, for the Year 1776--significant because the first printing
    of the Declaration of Independence in a book is in this edition. The
    recently unveiled portrait and historic accomplishments of Senator
    Blanche Kelso Bruce, the second black Senator in history and the only
    former slave to serve in the United States Senate, was the third
    display for 2003.
    Technical Services
                Acquisitions
        Two significant collections of historic congressional documents
    were added to the permanent collection in 2003. The Unpublished U.S.
    House Committee Hearings 1969-1972 and 1945-1968 Supplement, produced
    by the Congressional Information Service, is a microfiche collection of
    1,180 hearing transcripts that were previously only available at the
    National Archives. In addition, copies were made of legislative
    calendars for the Senate Committee on Rules and Administration and the
    Senate Committee on Veterans Affairs, dating from the mid-1930s, which
    had previously only been available in committee libraries.
        A book acquisitions committee has been established to implement a
    collection development policy in the Library. Members of the committee
    include the Acquisitions Librarian, several members of the Information
    Services team, and the Librarian. The committee meets monthly to review
    each potential acquisition for content, cost, scholarliness, and value
    to the permanent collection.
        The Library added 11,698 books, congressional and executive branch
    documents, and microforms to the permanent collection in 2003. New
    materials include 1,034 books, 7,188 congressional documents, and 3,476
    executive branch publications. Statistics for books and standing orders
    are reported in a single category as of 2003, which more accurately
    reflects the cataloging and processing workload.
                Cataloging
        Major progress was made in 2003 that will enable the Senate
    community to access the Library's online catalog via Webster. Two
    Windows 2000 catalog servers were received in August and the Oracle
    catalog database was transferred to the primary server on December 3,
    2003. The new technology significantly upgraded system administration
    by improving backup and remote management functions. Software and
    licenses have been ordered for the secondary server that will reside at
    the Senate Computer Center in Postal Square. The Library's online
    catalog provider, the Library Corporation (TLC) installed the secondary
    server in early January 2004. The secondary server will provide patron
    access to the online catalog, and will be available by the fourth
    quarter of 2004.
        The Library's catalog database was rebuilt and significant
    workstation upgrades were completed in early 2003. Improvements include
    automated temporary circulation record deletion; expanded printer
    support; integrated e-mail notification; catalog support of search
    history, new title searches, and results sorting; full authority record
    editing; multiple ISBN (International Standard Book Numbers) indexing;
    and the ability to mask collections from public display. Additional
    databases improvements made during 2003 are the correction of improper
    title truncation, and a rebuild of the keyword title index that
    provides greater flexibility in the modification and display of
    records.
        There are a total of 151,930 searchable bibliographic items in the
    Library's online catalog. The cataloging team added 7,524 new items to
    the catalog, and deleted 11,225 items. The item total represents 4,355
    new titles and 3,169 updates to existing collections. To maintain
    quality control standards, 50,367 maintenance transactions were
    completed during 2003. Those transactions include creating and editing
    authority records, editing existing records, barcoding new volumes,
    editing PURLs (Persistent Uniform Record Locators) for electronic
    resources, withdrawing records for discarded materials, and deleting
    temporary loan records.
        The multi-year project focusing on the cataloging of rare
    congressional materials continued during 2003. These nineteenth and
    early twentieth century Senate treaty documents, executive reports, and
    committee publications may be the only copies in existence. The large
    number of original cataloging records and subject headings required for
    this project led to Senate Library participation in the Library of
    Congress' National Authorities Cooperative Program (NACO). NACO
    establishes the official subject headings used in catalogs for the
    majority of the academic, public, and professional libraries in the
    United States. The Senate Library is one of 179 institutions, including
    the largest and most prestigious academic institutions in the country,
    that participates in NACO. The Library contributed 489 new subject
    headings related to congressional committees, subcommittees,
    nominations, and treaties during 2003.
                Government Documents Collection
        This is the third year of the Library's review of documents
    received through the Government Printing Office's (GPO) Federal
    Depository Library Program (FDLP). The review team includes staff from
    all Library departments and the goal is to deaccession outdated,
    superseded, and surplus government documents. In 2003, 24,293 items
    were withdrawn from the collection. Items withdrawn from the Senate
    Library collection are offered to FDLP libraries throughout the United
    States. 20,818 (88 percent) of those have been accepted by other
    institutions.
        The review team also deselected 293 publication series from FDLP in
    2003. Documents selected to remain in the collection will be cataloged
    according to the Library of Congress classification system, replacing
    of Superintendent of Documents system. The cataloging team reclassified
    179 titles in 2003, and looks forward to completely integrating
    classification of the primary book and government document collections.
        Access to core government documents formerly received through FDLP
    has not been compromised by these cancellations. Increased availability
    to these materials through agency and department Internet sites allows
    libraries to print information on-demand. The reduction of GPO-issued
    items in tangible formats is evident by the 180 percent decrease in
    government documents received in 2003. The positive impacts of this
    technological advance include increased physical space, reduced staff
    time processing materials, and the Library's online catalog serving as
    a gateway to government-wide information.
                Collection Maintenance and Preservation
        On April 17, 2003, a water leak was discovered that caused
    significant damage to several hundred books in SR-B14. The damaged
    books were immediately moved to alternate sites to be dried. Sheet
    plastic from the Library's disaster kits was used to protect adjacent
    areas from additional damage. Judging from the extent of the wicking,
    the leak probably began several days earlier. The Superintendent's
    Office replaced a section of pipe, but the original source of the leak
    was never determined. Several dozen volumes were purchased to replace
    the unsalvageable items. Installation of water detection alarms and
    containment trays by the AOC is anticipated in fiscal year 2005.
                Warehouse
        Library staff met with SAA staff and their consultants concerning
    the Library's off-site storage requirements. The initial June 23, 2003
    meeting set the framework for a draft warehouse plan that met the
    Library's needs. The Library's proposal for a new facility calls for
    added security, increased shelving, and improved environmental
    conditions. In anticipation of a move from the existing warehouse,
    Library staff and summer interns packed 14,000 books. Volumes
    determined to be in poor condition were set aside for cleaning and
    repair by the Office of Conservation and Preservation. Several excess
    collections were transferred to the Regional Depository Library at the
    University of Maryland.
    Administrative
                Budget
        The seventh year of budget reviews delivered minimal reductions
    totaling $1,285. This is the lowest amount since the annual reviews
    began in fiscal year 1997. During that time, the reviews have
    eliminated duplicate copies, titles available through online services,
    and materials not meeting the Senate's current needs. This has resulted
    in $59,930.34 in cancellations, which have been critical in offsetting
    annual cost increases for core materials. The collection and
    acquisitions program now better meet the information demands of today's
    Senate. The goal is to provide the highest level of service using the
    latest technologies and best resources in the most cost-effective way.
                Professional Staff Development
        During 2003, Library staff participated in 142 training sessions,
    workshops, and professional development seminars. New Library staff
    have a particularly active training schedule and veteran staff are
    required to maintain and upgrade skill levels. In addition to classes
    on news and legal databases, technical training sessions included
    Microsoft Excel, CQ Online, CQ Votes, Homesite, Wilson Web Bio, Dialog,
    Data Harmony, XML, Newswire, Powerpoint, and Writing for the Web.
    Technical Services staff attended several skill enhancement classes
    including MARC content designation, taxonomy, and OCLC authorities.
    Research classes included courses on legislation, law, treaties,
    copyrights, and the CRS Advanced Legislative Process Institute. Other
    staff activities included tours to the National Archives, Pentagon
    library, Senate Recording Studio, Senate Legal Counsel, Senate
    Judiciary Committee library, the United Nations library, Computers in
    Libraries conference, and the annual Special Libraries Association
    conference.
                Interns
        Summer interns completed several key projects. These included
    boxing 11,500 volumes of the Congressional Serial Set and copying
    historic Senate committee calendars for the permanent collection. The
    interns also identified House hearings and committee prints missing
    from the Library collection. Copies of missing titles were received
    from the committees.
                Unum, Newsletter of the Office of the Secretary of the
                        Senate
        The Secretary's quarterly newsletter was established in October
    1997 and has been produced by Senate Library staff since May 2000. With
    a distribution to approximately 1,000 readers, Unum serves as an
    historic record of accomplishments, events, and personnel in the Office
    of the Secretary of the Senate. The Summer 2003 issue of Unum was the
    first full-color issue.
    Major Library Goals for 2004
        Provide Senate-wide access to the Library's catalog via Webster.
        Implement navigation and organization design improvements on
    Senate.gov.
        Prepare updates to Senate Votes on Cloture Motions (Senate Print
    99-95) and ANecrology of United States Senators.

                                                    2003 ACQUISITIONS
    ----------------------------------------------------------------------------------------------------------------
                                         Books           Government          Congressional Publications
                                  -------------------     Documents    -------------------------------------
                                                     ------------------                              Repts/   Total
                                   Ordered  Received   Paper    Fiche   Hearings   Prints   Bylaw     Docs
    ----------------------------------------------------------------------------------------------------------------
    January......................       23        57      310       77       301       23       41      202    1,011
    February.....................       23        48      242       56       261       23       23      133      786
    March........................       25        61      169       35       233       37       37      200      772
                                  ----------------------------------------------------------------------------------
          1st Qtr................       71       166      721      168       795       83      101      535    2,569
                                  ==================================================================================
    April........................       67       110      182      145       333       37       39      274    1,120
    May..........................       40       135      165       71       248       32       43      284      978
    June.........................       22        82      163      115       313       21       60      277    1,031
                                  ----------------------------------------------------------------------------------
          2nd Qtr................      129       327      510      331       894       90      142      835    3,129
                                  ==================================================================================
    July.........................       32        78      227       71       191       15       58      525    1,165
    August.......................       20        62      150       89       318       16       60      270      965
    September....................        3        57      248       88       178       14       52      349      986
                                  ----------------------------------------------------------------------------------
          3rd Qtr................       55       197      625      248       687       45      170    1,144    3,116
                                  ==================================================================================
    October......................       41        74      244       82       296       17       48      263    1,024
    November.....................       33       177      139       52       225       14       64       99      770
    December.....................       26        93      245      111       274       17       71      279    1,090
                                  ----------------------------------------------------------------------------------
          4th Qtr................      100       344      628      245       795       48      183      641    2,884
                                  ==================================================================================
          2003 Total.............      355     1,034    2,484      992     3,171      266      596    3,155   11,698
          2002 Total.............      263       628    2,287    1,083     3,094      152      576    1,977    9,797
                                  ==================================================================================
    Percent Change...............    34.98     64.65     8.61    -8.40      2.49    75.00     3.47    59.59    19.40
    ----------------------------------------------------------------------------------------------------------------

                                                     2003 CATALOGING
    ----------------------------------------------------------------------------------------------------------------
                                                                  New Titles Cataloged
                                        LIS   ------------------------------------------------------------
                                      Hearing                Government       Congressional Publications     Total
                                      Numbers                 Documents     ------------------------------   Titles
                                       Added     Books  --------------------                       Docs/   Cataloged
                                                           Paper     Fiche   Hearings   Prints     Pubs
    ----------------------------------------------------------------------------------------------------------------
    January........................        21        25        14         4       261        10        29        343
    February.......................        30        30        14        10       222        14        16        306
    March..........................        38        32        16         4       272        21         2        347
                                    --------------------------------------------------------------------------------
          1st Qtr..................        89        87        44        18       755        45        47        996
                                    ================================================================================
    April..........................  ........        46        21        10       144         4        49        274
    May............................        33        30        21  ........       138        54  ........        243
    June...........................         3        66        12        18        88        92        15        291
                                    --------------------------------------------------------------------------------
          2nd Qtr..................        36       142        54        28       370       150        64        808
                                    ================================================================================
    July...........................         2        45        20         2       548        32        40        687
    August.........................        39        37        10         1       105        42        13        208
    September......................  ........        58        13        31       375       113        55        645
                                    --------------------------------------------------------------------------------
          3rd Qtr..................        41       140        43        34     1,028       187       108      1,540
                                    ================================================================================
    October........................         5        70         6  ........       305        63        33        477
    November.......................  ........        78         9  ........       101        43        16        247
    December.......................        50       101         3         1       154         2        26        287
                                    --------------------------------------------------------------------------------
          4th Qtr..................        55       249        18         1       560       108        75      1,011
                                    ================================================================================
          2003 Total...............       221       618       159        81     2,713       490       294      4,355
          2002 Total...............        99       430       488       183     2,873       123       461      4,558
                                    ================================================================================
    Percent Change.................    123.23     43.72    -67.42    -55.74     -5.57    298.37    -36.23      -4.45
    ----------------------------------------------------------------------------------------------------------------

                                                 2003 DOCUMENT DELIVERY
    ----------------------------------------------------------------------------------------------------------------
                                                                                          Micrographics  Photocopies
                                                     Volumes     Materials      Faxes      Center Pages     Pages
                                                      Loaned     Delivered                   Printed       Printed
    ----------------------------------------------------------------------------------------------------------------
    January......................................          141          404          202           637        11,718
    February.....................................          102          219          200           560         9,989
    March........................................          146          274          300           651         9,648
                                                  ------------------------------------------------------------------
          1st Qtr................................          389          897          702         1,848        31,355
                                                  ==================================================================
    April........................................          167          403          300           286        14,293
    May..........................................          162          507          223           323        15,204
    June.........................................          190          522          309         1,774        20,349
                                                  ------------------------------------------------------------------
          2nd Qtr................................          519        1,432          832         2,383        49,846
                                                  ==================================================================
    July.........................................          136          423          260           921        20,551
    August.......................................          119          206          169           232         9,376
    September....................................          130          334          199           276        12,484
                                                  ------------------------------------------------------------------
          3rd Qtr................................          385          963          628         1,429        42,411
                                                  ==================================================================
    October......................................          137          293          254           144        15,767
    November.....................................          115          250          209           781        10,408
    December.....................................          119          243          122           360         7,104
                                                  ------------------------------------------------------------------
          4th Qtr................................          371          786          585         1,285        33,279
                                                  ==================================================================
          2003 Total.............................        1,664        4,078        2,747         6,945       156,891
          2002 Total.............................        1,952        4,467        7,148         4,421       132,903
                                                  ==================================================================
    Percent Change...............................       -14.75        -8.71       -61.57         57.09         18.05
    ----------------------------------------------------------------------------------------------------------------

                             11. senate page school
        The United States Senate Page School provides a smooth transition
    from and to the students' home schools, and offers those students a
    sound program, both academically and experientially, during their stay
    in the Nation's Capital, balancing a unique work situation with the
    Senate's demanding schedule.
    Summary of Accomplishments
        Accreditation by the Middle States Commission on Secondary Schools
    continues until December 31, 2008.
        Two page classes successfully completed their semester curriculum.
    Closing ceremonies were conducted on June 6, 2003, and January 23,
    2004, the last day of school for each semester.
        Orientation and course scheduling for the Spring 2003 and Fall 2003
    pages were successfully completed. Needs of incoming students
    determined the semester schedules.
        Extended educational experiences were provided to pages. Twenty
    field trips, four guest speakers, opportunities to compete in writing
    contests, to play musical instruments and vocalize, and to continue
    foreign language study with the aid of tutors of four languages were
    all afforded pages. Sixteen field trips to educational sites were
    provided for summer pages as an extension of the page experience.
    National tests were administered for qualification in scholarship
    programs as well.
        Effective and efficient communication and coordination among
    Sergeant at Arms, Secretary of the Senate, Party Secretaries, Page
    Program, and Page School continues and policies of the program have
    been reviewed.
        The community service project embraced by pages and staff in 2002
    continues. Items for gift packages were collected, assembled, and
    shipped to military personnel in Afghanistan, Kuwait, Iraq, and the USO
    in Frankfurt, Germany (where distribution of the boxes to troops
    enroute to war zones take place). Pages included letters of support to
    the troops participating in Operation Enduring Freedom.
        The evacuation and COOP plans have been reviewed and updated. Pages
    and staff continue to practice evacuating to primary and secondary
    sites. Staff, tutors and pages participated in escape hood training.
        Staff were retrained in CPR and certified in First Aid and AED use.
        Updated materials/equipment were purchased. These included a DVD
    player, calculus textbooks and support software, English and history
    textbooks, chemistry and physics probeware kits, textbooks with support
    software and site license, and teacher resource material.
    Summary of Goals
        For the coming year, the goals of the administration and staff of
    the Senate Page School include:
      --Individualized small group instruction and tutoring by teachers on
            an as-needed basis will continue to be offered.
      --Foreign language tutors will provide instruction in French,
            Spanish, German, and Latin.
      --The focus of field trips will be sites of historic, political, and
            scientific importance.
      --Staff development options will include attendance at a ``Learning
            and the Brain'' conference, seminars conducted by Education and
            Training, and subject matter conferences conducted by national
            organizations.
      --Facility re-design to maximize space will be completed.
      --Upgrading science laboratory equipment will continue allowing micro
            labs and reducing quantities of supplies used.
      --Review of technology applications for classroom use will be
            completed.
      --Continuation of the community service project.
                       12. printing and document services
        The Office of Printing and Document Services (OPDS) serves as
    liaison to the Government Printing Office (GPO) for the Senate's
    official printing, ensuring that all Senate printing is in compliance
    with Title 44, U.S. Code as it relates to Senate documents, hearings,
    committee prints and other official publications. The office assists
    the Senate by coordinating, scheduling, delivering and preparing Senate
    legislation, hearings, documents, committee prints and miscellaneous
    publications for printing, and provides printed copies of all
    legislation and public laws to the Senate and the public. In addition,
    the office assigns publication numbers to all hearings, committee
    prints, documents and other publications; orders all blank paper,
    envelopes and letterhead for the Senate; and prepares page counts of
    all Senate hearings in order to compensate commercial reporting
    companies for the preparation of hearings.
        During fiscal year 2003, the OPDS prepared 5,334 printing and
    binding requisitions authorizing GPO to print and bind the Senate's
    work, exclusive of legislation and the Congressional Record. Since the
    requisitioning done by the OPDS is central to the Senate's printing,
    the office is uniquely suited to perform invoice and bid reviewing
    responsibilities for Senate printing. As a result of this office's cost
    accounting duties, OPDS is able to review and assure accurate GPO
    invoicing as well as play an active role in helping to provide the best
    possible bidding scenario for Senate publications.
        In addition to processing requisitions, the Printing Services
    Section coordinates job scheduling, proof handling and job tracking for
    stationery products, Senate hearings, Senate publications and other
    miscellaneous printed products, as well as monitoring blank paper and
    stationery quotas for each Senate office and committee. The OPDS also
    coordinates a number of publications for other Senate offices,
    including the Curator, Historian, Disbursing, Legislative Clerk, Senate
    Library as well as the U.S. Botanic Garden, U.S. Capitol Police and
    Architect of the Capitol. Last year's major printing projects included
    the Report of the Secretary of the Senate, an expanded Leader's Lecture
    Series book, as well as a 500 page four-color case bound book the
    ``U.S. Senate Catalogue of Fine Art.'' Current major projects for the
    office include a new full color version of the ``History of the U.S.
    Botanic Garden 1861-1991.''
    Hearing Billing Verification
        Billing verifications are how reporting companies request payment
    from a Senate committee for transcription services.
        During 2003, OPDS provided commercial reporting companies and
    corresponding Senate committees a total of 975 billing verifications of
    Senate hearings and business meetings. This translated to an average of
    51.3 hearings/meetings per committee, a 2.6 percent increase over 2002
    and also represented over 70,000 transcribed pages at a total billing
    cost of over $460,000.
        OPDS utilizes a program developed in conjunction with the Sergeant
    at Arms Computer Division that (a) provides more billing accuracy and
    greater information gathering capacity and (b) adheres to the
    guidelines established by the Senate Committee on Rules and
    Administration for commercial reporting companies to bill the Senate
    for transcription services. During 2003, the office increased the
    efficiency and accuracy of the system by sending files and billing
    verifications electronically between committees and reporting
    companies. Department staff continue training to apply today's
    expanding digital technology to improve performance and services.

                                      HEARING TRANSCRIPT AND BILLING VERIFICATIONS
    ----------------------------------------------------------------------------------------------------------------
                                                                                                           PERCENT
                                                                      2001         2002         2003     CHANGE 2003/
                                                                                                             2002
    ----------------------------------------------------------------------------------------------------------------
    Billing Verifications.......................................        1,004          952          975          2.4
    Average per Committee.......................................           48           50         51.3          2.6
    Total Transcribed Pages.....................................       72,799       71,558       70,532         -1.5
    Average Pages/Committee.....................................        3,467        3,766        3,712         -1.5
    Transcribed Pages Cost......................................     $479,921     $471,807     $461,807         -2.2
    Average Cost/Committee......................................      $22,853      $24,832      $24,288         -2.2
    ----------------------------------------------------------------------------------------------------------------

        Additionally, the Service Center within OPDS is staffed by
    experienced GPO detailees who provide Senate committees and the
    Secretary of the Senate's Office with complete publishing services for
    hearings, committee prints, and the preparation of the Congressional
    Record. These services include keyboarding, proofreading, scanning, and
    composition. The Service Center provides the best management of funds
    available through the Congressional Printing and Binding Appropriation
    because committees have been able to decrease or eliminate additional
    overtime costs associated with the preparation of hearings.
    Document Services Distribution, Inventory and On Demand Publication
        The Document Services Section coordinates requests for printed
    legislation and miscellaneous publications with other departments
    within the Secretary's Office, Senate committees, and GPO. This section
    ensures that the most current version of all material is available, and
    that sufficient quantities are available to meet projected demands.

                                         DOCUMENT SERVICES--CONGRESSIONAL RECORD
    ----------------------------------------------------------------------------------------------------------------
                                                                           2001            2002            2003
    ----------------------------------------------------------------------------------------------------------------
    Total Pages Printed.............................................          25,051          29,690          33,094
        For the Senate..............................................          14,084          14,489          16,835
        For the House...............................................          10,967          15,201          16,259
    Total Copies Printed and Distributed............................       1,300,000       1,268,603       1,199,402
        To the Senate...............................................         318,572         439,953         307,917
        To the House................................................         459,477         301,383         441,735
        To the Executive Branch and the Public......................         492,915         532,813         449,750
    Total Production Costs..........................................     $15,428,530     $13,488,381     $20,143,538
        Senate Costs................................................      $7,452,933      $6,339,539      $9,886,805
        House Costs.................................................      $7,333,134      $6,609,307      $9,563,592
        Other Costs.................................................        $642,462        $539,535        $693,141
    Per Copy Cost...................................................          $12.14          $12.14          $16.79
    ----------------------------------------------------------------------------------------------------------------

        In 2003, a total of 33,094 pages were printed in the Congressional
    Record. Of this total, 16,835 pages were printed for the Senate, and
    16,259 pages were printed for the House of Representatives. These page
    counts are comprised of the Proceedings of the Senate and the House of
    Representatives, Extension of Remarks, Digest and miscellaneous pages.
    This is 3,404 pages more than were produced in 2002, an increase of
    11.4 percent. A total of approximately 1.2 million copies of the
    Congressional Record was printed and distributed in 2003. The Senate
    received 307,917 copies, the House 441,735, with the remaining 449,750
    delivered to the Executive Branch agencies and the public at large.
        OPDS continually tracks demand for all classifications of
    Congressional legislation. Twice a year the office adjusts the number
    of documents ordered by classification. The goal is to adjust numbers
    ordered in each classification to closely match demand and thereby
    reduce waste. In recent years with the advancement of document
    availability online, the OPDS has taken a more aggressive approach to
    reducing waste of less requested legislation. The office supplements
    depleted legislation where needed by producing additional copies in the
    DocuTech Service Center which is staffed by experienced GPO detailees
    that provide Member offices and Senate committees with on-demand
    printing and binding of bills and reports. In 2003, the DocuTech Center
    produced 803 tasks for a total of 971,077 printed pages, a production
    increase of 22 percent over 2002.
        The primary responsibility of the Documents Services Section is to
    provide services to the Senate. However, the responsibility and this
    office's dedication and assistance to the general public, the press,
    and other government agencies is virtually indistinguishable from the
    services provided to the Senate. Requests for material are received at
    the walk-in counter, through the mail, by fax, phone, and online.
    Recorded messages, fax, and e-mail operate around the clock and are
    processed as they are received, as are mail requests. The office
    stresses prompt, courteous and accurate answers to the various public
    and Senate requests.

                                              SUMMARY OF ANNUAL STATISTICS
    ----------------------------------------------------------------------------------------------------------------
            CALENDAR YEAR          CONGRESS/SESSION    PUBLIC MAIL     FAX REQUEST       E-MAIL      COUNTER REQUEST
    ----------------------------------------------------------------------------------------------------------------
    2.00020e+15..................  106/2nd.........           4,066           3,129             112  9.51869e+19
                                   107/1st.........           3,449           2,093             621
                                   107/2nd.........           3,637           1,866             662
                                   108/1st.........           1,469           2,596             735
    ----------------------------------------------------------------------------------------------------------------

    Online Ordering
        The past year brought significant changes in providing new services
    and improving existing ones. For example, OPDS has continually sought
    to improve the efficiency and utility of the Secretary of the Senate's
    homepage. Beginning in late 2000, Senate offices, by way of a link to
    the Webster, could order legislative documents online. Via the same
    link, it is also possible to confirm arrival of printed copies of the
    most sought after legislative documents. The site is updated several
    times daily and each time new documents arrive from GPO in the Document
    Room. In 2003 that process was expanded to provide the capability of
    online ordering of blank paper. This is but one model of OPDS
    continuing to seek new ways to use technology to assist Members and
    staff with added services and enhancements.
                               13. public records
        The Office of Public Records receives, processes, and maintains
    records, reports, and other documents filed with the Secretary of the
    Senate involving the Federal Election Campaign Act, as amended; the
    Lobbying Disclosure Act of 1995; and the Senate Code of Official
    Conduct: Rule 34, Public Financial Disclosure; Rule 35, Senate Gift
    Rule filings; Rule 40, Registration of Mass Mailing; Rule 41, Political
    Fund Designees; and Rule 41(6), Supervisor's Reports on Individuals
    Performing Senate Services; and Foreign Travel Reports.
        The office provides for the inspection, review, and reproduction of
    these documents. From October 2002, through September 2003, the Public
    Records office staff assisted more than 2,000 individuals seeking
    information from reports filed with the office. This figure does not
    include assistance provided by telephone, and assistance given to
    lobbyists attempting to comply with the provisions of the Lobbying
    Disclosure Act of 1995. A total of 95,314 photocopies were sold in the
    period. In addition, the office works closely with the Federal Election
    Commission, the Senate Select Committee on Ethics and the Clerk of the
    U.S. House of Representatives concerning the filing requirements of the
    aforementioned Acts and Senate rules.
    Fiscal Year 2003 Accomplishments
        The office developed a manual detailing the policies and procedures
    of the Public Records revolving fund for the purpose of producing a
    financial statement. At the Secretary's request, GAO also performed an
    audit of the revolving fund which revealed no discrepancies. Public
    Records also completed a transition to the next generation of scanning
    technology by replacing old hardware, and updating software.
    Plans for Fiscal Year 2004
        The Public Records office is revising and improving the lobbying
    pages on senate.gov based upon recommendations of an independent survey
    of North American disclosure web sites.
    Automation Activities
        During fiscal year 2003, the Senate Office of Public Records
    automated the Gift Rule filings and the Mass Mailing registrations. In
    the event of an emergency, these filing registrations are easily
    accessible off site. The office also started a project to automate the
    foreign travel reports required by the Mutual Security Act of 1954.
    Federal Election Campaign Act, as Amended
        The Act requires Senate candidates to file quarterly reports.
    Filings totaled 4,238 documents containing 232,442 pages.
    Lobbying Disclosure Act of 1995
        The Act requires semi-annual financial and lobbying activity
    reports. As of September 30, 2003, 6,112 registrants represented 15,317
    clients and employed 24,872 individuals who met the statutory
    definition of ``lobbyist.'' The total number of lobbying registrations
    and reports was 40,877.
    Public Financial Disclosure
        The filing date for Public Financial Disclosure Reports was May 15,
    2003. The reports were available to the public by June 13, 2003. Copies
    were provided to the Select Committee on Ethics and the appropriate
    State officials. A total of 2,545 reports and amendments was filed
    containing 14,481 pages. There were 316 requests to review or receive
    copies of the documents.
    Senate Rule 35 (Gift Rule)
        The Senate Office of Public Records received over 1,233 reports
    during fiscal year 2003.
    Registration of Mass Mailing
        Senators are required to file mass mailings on a quarterly basis.
    The number of pages was 487.
                              14. senate security
        The Office of Senate Security (OSS) is responsible for the
    administration of classified information programs in Senate offices and
    committees. In addition, OSS serves as the Senate's liaison to the
    Executive Branch in matters relating to the security of classified
    information in the Senate.
    Personnel Security
        Five hundred fifty Senate employees held one or more security
    clearances at the end of 2003. This number does not include clearances
    for employees of the Architect of the Capitol or clearances for
    Congressional Fellows assigned to Senate offices, which are also
    processed by OSS.
        In the past year, OSS processed 2,418 personnel security actions, a
    31.9 percent increase from 2002. One hundred twenty investigations for
    new security clearances were initiated last year, and 87 security
    clearances were transferred from other agencies. Senate regulations, as
    well as some Executive Branch regulations, require that individuals
    granted Top Secret security clearances be reinvestigated at least every
    five years. Staff holding Secret security clearances are reinvestigated
    every ten years. During the past year, reinvestigations were initiated
    on 58 Senate employees. OSS processed 71 routine terminations of
    security clearances during the reporting period and transmitted 322
    outgoing visit requests. The remainder of the personnel security
    actions consisted of updating access authorizations and compartments.
    The length of time required for the Department of Defense (DOD) and the
    Federal Bureau of Investigation (FBI) to process Senate staff for
    security clearances has increased by 66.7 percent relative to 2002.
    Security Awareness
        OSS conducted or hosted 79 security briefings for Senate staff.
    Topics included information security, counterintelligence, foreign
    travel, security managers' responsibilities, office security
    management, and introductory security briefings. This represents an
    increase of 1.3 percent from 2002.
    Document Control
        OSS received or generated 2,668 classified documents consisting of
    79,931 pages during calendar year 2003. This is an increase of 10.3
    percent in the number of documents received or generated in 2002.
    Additionally, 60,873 pages from 3,263 classified documents no longer
    required for the conduct of official Senate business were destroyed.
    This represents a 0.6 percent increase in destruction. OSS transferred
    754 documents consisting of 30,149 pages to Senate offices or external
    agencies. These figures do not include classified documents received
    directly by the Appropriations Committee, Armed Services Committee,
    Foreign Relations Committee, and Select Committee on Intelligence, in
    accordance with agreements between OSS and those Committees. Overall,
    Senate Security completed 6,685 document transactions and handled over
    170,953 pages of classified material in 2003, an increase of 5.5
    percent.
        Secure storage of classified material in the OSS vault was provided
    for 106 Senators, committees, and support offices. This arrangement
    minimizes the number of storage areas throughout the Capitol and Senate
    office buildings, thereby affording greater security for classified
    material.
    Secure Meeting Facilities
        OSS secure conference facilities were utilized on 1,375 occasions
    during 2003. In July, the smallest OSS conference room was converted to
    a computer and storage room. This was necessitated by changes in office
    space and loss of computer connections previously supplied by the House
    Permanent Select Committee on Intelligence, both due to the Capitol
    Visitor Center (CVC) construction. This has somewhat limited the number
    of people who could be allowed to read or use classified computer
    systems when other rooms were in use. Even with the loss of this room,
    use of OSS conference facilities increased 77 percent over 2002 levels.
    Eight hundred thirty-eight meetings, briefings, or hearings were
    conducted in OSS' three conference rooms. Of those, forty were ``All
    Senators'' briefings. OSS also provided secure telephones, secure
    computers, secure facsimile machine, and secure areas for reading and
    production of classified material on 537 occasions in 2003 to Senators
    and staff.
                              15. stationery room
        The Senate Stationery Room's principal functions are to sell
    stationery items for use by Senate offices and other authorized
    legislative organizations, including:
      --selecting a variety of stationery items to meet the needs of the
            Senate environment on a day-to-day basis and maintain a
            sufficient inventory of these items;.
      --purchasing supplies utilizing open market procurement, competitive
            bid and/or GSA Federal Supply Schedules;
      --maintaining individual official stationery expense accounts for
            Senators, Committees, and Officers of the Senate;
      --rendering monthly expense statements;
      --insuring receipt of reimbursements for all purchases by the client
            base via direct payments or through the certification process;
      --making payments to all vendors of record for supplies and services
            in a timely manner and certifying receipt of all supplies and
            services; and
      --providing delivery of all purchased supplies to the requesting
            offices.

    ------------------------------------------------------------------------
                                               Fiscal Year      Fiscal Year
                                                   2003            2002
                                               Statistical      Statistical
                                                Operations      Operations
    ------------------------------------------------------------------------
    Gross Sales............................      $4,843,716       $4,628,342
    Sales Transactions.....................          61,140           61,479
    Purchase Orders Issued.................           7,545            6,218
    Vouchers Processed.....................           8,689            7,376
    Metro Fare Media Sold..................          52,279           41,558
        $20.00 Media.......................          46,260           36,943
        $10.00 Media.......................           3,023            1,978
        $5.00 Media........................           2,996            2,637
    ------------------------------------------------------------------------

    Operational Growth
        As indicated in the above statistics, the Stationery Room operation
    continues its progressive growth pattern with an increase in gross
    sales of $213,000 over fiscal year 2002.
        It should be noted that current staffing level of twelve employees
    for the operation remain at the same level as fiscal year 1974 when
    sales were approximately $944,000.
    Fiscal Year 2003 Activities
        During the first quarter of the fiscal year, the Stationery Room
    assisted ten Senator-elect offices. In addition, the Stationery room
    assisted the new Majority Leader and his staff with their transition.
        Members of Stationery Room staff were tasked as part of a Senate-
    wide working group to assist the Sergeant at Arms (SAA) in the
    development of an ``Emergency Go Bag.'' The finalized bag should
    support each office in an emergency with a variety of supplies as
    recommended by the Department of Homeland Security, Federal Emergency
    Management Agency and the American Red Cross. Offices will be able to
    purchase additional ``Go Bags'' on a Special Order basis through the
    Stationery Room.
        The Stationery Room made initial inquiries regarding a state-of-
    the-art Retail Point-of-Sale system and back-office accounting system
    during April 2003. A professional consultant was subsequently hired to
    draft a requirements document, which will be finalized this spring.
    Baseline estimates for application software are between $131,500 and
    $133,000. This price structure does not include add-ons that will be
    needed for automated flag ordering/tracking; an internal e-commerce
    website for automated office product ordering capabilities; or other
    custom system software modifications.
        Working together, the Stationery Room and the Committee on Rules
    and Administration began a review of the applicable Rules and
    Regulations for the Mass Subsidy Program. On November 3, 2003, a
    provision was added to the regulations to authorize the purchase of
    media one week in advance of the month in which the media is to be
    used. The Stationery Room was also tasked to provide a means in which
    offices could order transit media electronically via e-mail. This
    project is currently in beta testing with thirteen offices as a pilot
    group.
        As part of the Secretary's efforts to ensure financial
    responsibility, the General Accounting Office began an audit of the
    Stationery Room's operation. The final report may be issued in the
    summer of 2004.
        To fulfill emergency preparation needs, Stationery Room personnel
    devised a mechanism--scanning--for data storage and retention of all
    critical documents for the operation. Fiscal year 2003 records are
    nearing completion of scanning. Once records have been scanned, that
    information is available locally and paper copies are removed to a
    National Archive facility storage and final disposition. This project
    has been a joint effort by the Stationery Room, Historical Office and
    Sergeant at Arms.
        In an effort to establish an effective communication link with the
    SAA IT product line, a process was devised to notify the Stationery
    Room of new IT equipment being introduced into the Senate. Notification
    now allows the Stationery Room to be proactive in supporting office
    equipment.
        Stationery Room staff regularly meets with Administrative Office
    Managers to more effectively understand their needs and requirements.
    In addition, the office is currently looking at creating (i) a Product
    Review Committee to ensure the office carries the products it needs and
    (ii) a working group regarding necessary emergency supplies in case
    Continuity of Operations Plans are implemented.
        The Stationery Room is part of a Flag Process working group being
    guided by the Office of the Sergeant at Arms. The mission of this
    working group is to streamline the flag procurement process for
    constituents with a focus on timely processing and delivery. This is an
    on-going project and is currently in its early stages.
                                 16. webmaster
        The Webmaster is responsible for the three web sites that fall
    under the purview of the Secretary of the Senate: the Senate Web site,
    www.senate.gov (except individual Senator and Committee pages); the
    Secretary web site on the Senate intranet, Webster; and an intranet
    site currently under construction for Secretary staff only.
        The Senate Web site (www.senate.gov) was completely redesigned and
    the new site was launched in the fall of 2002. At that time the
    Documentum Web Content Management System was implemented which allows
    content providers to create and post information to the web site
    without knowing HTML, the format language of the web.
        Development work on the Documentum content management system
    continued throughout 2003 as content providers identified changes that,
    when implemented, would make their work easier. Adjustments were made
    to the application that allows the curator to update the web site
    directly from their database. This application has been working
    effectively for almost a year.
        An XML application was built for the Senate Library to allow them
    to update the Active Legislation information one time and then
    disseminate the information in different formats, such as publishing in
    HTML to two separate web sites and creating a PDF version for printing.
    The Active Legislation web page on www.senate.gov is consistently in
    the top 10 most visited content items on the main site, drawing more
    than 12,000 visitors a month.
        Throughout 2003, senate.gov content providers became more cohesive
    as a group. Monthly meetings were held where new ideas were shared.
    Collaboration increased throughout the year and the posting of feature
    articles in the major areas of the site were coordinated in terms of
    timing and subject matter. The editing and creation of content
    continued at a steady pace incorporating feedback received from staff
    and the public.
        In 2003 the web site averaged over 115,000 visitors a day.
    Reviewing statistics on web page usage help the content providers
    better understand what information the public is seeking and how best
    to improve the presentation of that data. The main Senate homepage and
    the home pages of the six subject areas (buckets) receive the most
    visits as people navigate around the site. Within the buckets we find
    that visitors are drawn to the following content items in order of
    popularity: 1. Roll Call Votes; 2. Active Legislation List; 3. Senate
    Leadership Page; 4. Senate Organization Chart; 5. Committee Hearing
    Schedule; 6. Session Schedule for 2003; 7. Virtual Tour of the Capitol;
    8. Bill and Resolutions; 9. Calendars and Schedules; 10. Nominations;
    11. Individual State Pages; 12. Historical Office Page; 13.
    Congressional Record; 14. Virtual Reference Desk; and 15.
    Appropriations Bills.
        E-mail traffic to the webmaster has shown a dramatic decrease in
    questions about where to find information on the web site. The new web
    site navigation structure makes finding information much easier. In
    previous years the webmaster received on average 15 messages a day
    asking for the location of some specific information on the site. In
    2003 that number dropped to less than 5 requests a day.
        A major effort in 2003 was the installation, configuration, and
    testing of the Verity Search Engine for senate.gov. Based on the
    initial round of tests, changes were made to the search engine
    configuration resulting in greatly improved relevance ranking of search
    results. Testing is now focusing on how to improve the search results
    by adding or editing metadata associated with the content items. More
    relevant and standardized keywords, and better descriptions and titles
    will improve the relevance ranking and display of the search results.
    Secretary staff assisted SAA staff in conducting briefings for Senate
    Systems Administrators on how to use the search feature on their own
    sites. Systems Administrators were encouraged to review how their data
    displays in search results prior to final implementation of the search
    feature for the public.
        A continuing problem encountered in 2003 was that some web pages
    were not always available when the public tried to access them.
    Specifically, the problem was with pages that accessed a database using
    Cold Fusion to populate the page with information. SAA staff spent a
    tremendous amount of time and attention trying to solve this stability
    problem, including calling in Macromedia engineers to work onsite. In
    addition to making changes to the Cold Fusion settings, it became
    obvious that architectural changes were required which would affect the
    way Senate offices used databases to publish information to senate.gov.
    These changes are being made and the stability of the Cold Fusion pages
    on senate.gov has improved dramatically.
        Training on the Documentum system continued in 2003. The Webmaster
    took online courses in WebPublisher Administration, DQL (the Documentum
    Query Language), and XML as implemented in Documentum, as well as
    attending seminars on Authoring in XML, XML and Content Management, and
    Search Engine Development. The Webmaster represented the Office of the
    Secretary at meetings of the LegBranch Multimedia Group and Executive
    Branch meetings on improving Citizen Participation through E-Government
    Initiatives.
        In the fall of 2003 a Web Developer was hired to assist the
    Webmaster, and the Office of Web Technology was enhanced within the
    Office of the Secretary, an acknowledgment of the growth in workload
    and responsibility in disseminating information and providing services
    to the public, and internally to the Senate, via websites.
                  legislative information system (lis) project
        The Legislative Information System (LIS) is a mandated system
    (Section 8 of the 1997 Legislative Branch Appropriations Act, 2 U.S.C.
    123e) that provides desktop access to the content and status of
    legislative information and supporting documents. The 1997 Legislative
    Branch Appropriations Act (2 U.S.C. 181) also established a program for
    providing the widest possible exchange of information among legislative
    branch agencies. The long-range goal of the LIS Project is to provide a
    ``comprehensive Senate Legislative Information System'' to capture,
    store, manage, and distribute Senate documents. Several components of
    the LIS have been implemented, and the project is currently focused on
    a Senate-wide implementation and transition to a standard system for
    the authoring and exchange of legislative documents that will greatly
    enhance the availability and re-use of legislative documents within the
    Senate and with other legislative branch agencies. The LIS Project
    Office manages the project.
    Background: LIS
        An April 1997 joint Senate and House report recommended
    establishment of a data standards program and in December 2000, the
    Senate Committee on Rules and Administration and the Committee on House
    Administration jointly accepted the Extensible Markup Language (XML) as
    the primary data standard to be used for the exchange of legislative
    documents and information.
        Following the implementation of the Legislative Information System
    (LIS) in January 2000, and the transfer of operations and maintenance
    of the LIS to the Office of the Sergeant at Arms (SAA) in March 2000,
    the LIS Project Office shifted its focus to procuring system
    development services in support of an LIS Augmentation Project (LISAP).
    The LISAP is focused on the data standard component to provide a
    Senate-wide implementation and transition to XML for the authoring and
    exchange of legislative documents.
        A database of documents in XML format and an improved exchange
    process will result in quicker and better access to legislative
    information and will provide documents that can be more easily shared,
    re-used, and re-purposed. Parts of one XML document can be re-used in
    another XML document because the document structure is similar and the
    format of the data (XML) is standard. As more and more documents are
    created in the XML format, the necessity for re-keying or converting
    from one format to another (HTML to WordPerfect or XyWrite locator to
    Word or Word to WordPerfect, etc.) will disappear.
        The LISAP incremental development approach has helped the LIS
    Project Office build user acceptance, manage costs and adjust quickly
    when needed. The initial focus for the LISAP is to develop an XML
    authoring system for the Office of the Senate Legislative Counsel (SLC)
    and the Office of the Enrolling Clerk for bills, resolutions and
    amendments. Collaboration of Secretary of the Senate and Sergeant at
    Arms staff, augmented with strong contractor support, provides a great
    team effort and great progress has been made in the past year.
    LISAP: 2003
        During 2003 Senate staff continued to develop the Legislative
    Editing in XML Application (LEXA) focusing on the Office of the Senate
    Legislative Counsel and the production of bills, resolutions and
    amendments in XML. LEXA features many automated functions that provide
    a more efficient and consistent document authoring process. The SLC has
    worked very closely with the LEXA development team to strengthen and
    refine the application and provide a list of future enhancements. At
    this time LEXA can be used to create introduced and reported bills and
    resolutions and most amendments. Creation of conference reports and
    compilations will be completed in the coming months.
        In late 2003, a contractor developed a two-day training course on
    LEXA that was held three times between January 6 and January 15 for the
    39 attorneys and staff assistants in the SLC. It takes several months
    for a drafter to learn to use XyWrite and the locator formatting codes.
    Following the LEXA training, SLC staff immediately began producing
    bills and resolutions using LEXA, and the first XML draft to become a
    bill was introduced on January 22, 2004. The SLC will work gradually
    toward creating all legislative documents in LEXA and will use XyWrite
    only when necessary.
        The document management system (DMS) for the SLC was also completed
    in 2003. The DMS is integrated with LEXA and will be implemented in
    2004 once the SLC has completed the transition from XyWrite to LEXA.
    The DMS will provide the ability for the SLC to track and manage all
    work requests, legislative drafts, and internal office documents
    prepared in a variety of formats including XML, Word, WordPerfect, e-
    mail, and PDF. The DMS will also provide search and retrieval, delivery
    of documents to clients, and exchange of documents with the Senate
    Enrolling Clerk, the GPO, the House Office of the Legislative Counsel,
    and the Senate Appropriations Committee. The expansion of a DMS
    approach into other Senate offices will facilitate greater
    accessibility to legislative documents.
        With the implementation of LEXA and the DMS for the SLC, support
    becomes an important issue. The 2004 Legislative Branch Appropriations
    Act directed the GPO to provide support for LEXA much as they have for
    XyWrite for many years. With help from the LEXA development team, the
    GPO is working toward achieving that goal. As LEXA becomes more widely
    used in the SLC and other offices drafting legislation, the support
    load will increase. The Systems Development Services group of the
    Office of the Sergeant at Arms provides support and maintenance for the
    LIS/DMS, and that group will also support the DMS for the SLC. The
    training contractor is also developing a comprehensive printed and
    online reference manual for LEXA and the DMS and will also produce
    computer-based training for new hires.
        Also in 2003, a contractor completed work on converting bills,
    resolutions, and SLC drafts from the 106th and 107th Congresses to an
    XML format for use in LEXA. In early 2004, the contractor converted the
    documents from the first session of the 108th Congress. The conversion
    software has been incorporated into LEXA providing the ability to
    convert a locator-coded document to an XML document. The contractor
    also developed software (also in LEXA) to convert an XML document back
    to locator codes for printing through the Government Printing Office's
    Microcomp software. This conversion will also be used to supply
    locator-coded versions of documents to those offices and organizations
    still working in XyWrite.
        The conversion contractor also began work on converting the
    compilations of current law to XML format for use by the SLC and the
    House Legislative Counsel in drafting bills and amendments. This
    contractor has also developed an XML component to assist in the
    creation of tables and columnar data in legislation that will be used
    by the Senate, House, GPO, and Library of Congress. This component
    provides assistance and a visual display to the drafter during the
    creation of a table. The XML tagging in the table provides a readable
    display in the editor and on the Web and accurately prints the table
    through Microcomp--all without manual intervention to change the
    underlying tagging or data.
    LISAP: 2004
        The LEXA development team will continue to work with the SLC to
    refine and enhance LEXA including developing software to create and
    print conference reports and to edit and update the compilation
    documents created and maintained by the House and Senate Legislative
    Counsels. LEXA, as developed for the SLC, will establish a framework on
    which to build applications for other offices producing other types of
    legislative documents. The team will next address the specific needs of
    the Office of the Enrolling Clerk. Additional functionality to produce
    engrossed bills and amendments and enrolled bills will be added to
    LEXA, and the office will receive training and the LEXA reference
    manual.
        The SLC's DMS will be implemented in 2004. Prior to implementation,
    transition training will be developed for the office and the reference
    manual will be expanded to include information on the use of the DMS.
    The DMS will be integrated with LEXA and will provide a powerful
    tracking, management, and delivery tool. Technology-based training
    (TBT) will also be prepared for the SLC that will combine training on
    LEXA and the DMS for new attorneys and staff assistants in the SLC. The
    TBT, coupled with the standards-based LEXA and DMS applications, will
    shorten the time needed for new hires to learn the drafting technology.
    The SLC will be able to focus on teaching the legislative drafting
    process and new hires will no longer have to spend months training on
    entering printing codes using out-dated DOS-based technology.
        The legislative process yields other types of documents such as the
    Senate and Executive Journals and the Legislative and Executive
    Calendars. Much of the data and information included in these documents
    is already captured in and distributed through the LIS/DMS database
    used by the clerks in the Office of the Secretary. The LIS/DMS captures
    data that relates to legislation including bill and resolution numbers,
    amendment numbers, sponsors, co-sponsors, and committees of referral.
    This information is currently entered into the database and verified by
    the clerks and then keyed into the respective documents and re-verified
    at GPO before printing. An interface between this database and the
    electronic documents could mutually exchange data. For example, the
    LIS/DMS database could insert the bill number, additional co-sponsors,
    and committee of referral into an introduced bill while the bill draft
    document could supply the official and short titles of the bill to the
    database.
        The Congressional Record, like the Journals and Calendars, includes
    data that is contained in and reported by the LIS/DMS database.
    Preliminary DTDs have been designed for these documents, and
    applications could be built to construct XML document components by
    extracting and tagging the LIS/DMS data. These applications would
    provide a faster, more consistent assembly of these documents and would
    enhance the ability to index and search their contents. The LIS Project
    Office will coordinate with the Systems Development Services Branch of
    the Office of the Sergeant at Arms to begin design and development of
    XML applications and interfaces for the LIS/DMS and legislative
    documents. As more and more legislative data and documents are provided
    in XML formats that use common elements across all document types, the
    Library of Congress will be able to expand the LIS Retrieval System to
    provide more content-specific searches.

           ACQUISITION OF ARTIFACTS THAT ONCE BELONGED TO THE SENATE

        Senator Campbell. What particularly interests me, as you
    mentioned, as well as Senator Stevens, and that is the
    acquisition of former artifacts that belong to the Senate. Is
    it my understanding that you can get these on permanent loan or
    buy them, but that things cannot be donated to the Senate? Is
    that true or not?
        Ms. Reynolds. I am going to defer, as I did last year, to
    our Senate curator on that, and ask her to educate us a little
    bit on----
        Senator Campbell. If she would come up to the table, and
    identify herself for the record, please.
        Ms. Reynolds. Diane Skvarla, our Senate curator.
        Ms. Skvarla. The question I understand was whether items
    could be donated to the Senate. They actually can be donated to
    the Senate and we continue to get items donated to the Senate;
    several every year. As Emily pointed out, we hope with the
    Preservation Fund and new knowledge that we will get more of
    those in the future.
        Senator Campbell. Of the things that are donated, I suppose
    some have real historic value; and who knows, maybe some do
    not. Does this advisory board that you mentioned, are they ones
    that determine what to accept and what not to accept?
        Ms. Skvarla. They will assist us. Yes. We normally get a
    piece, and find out the history of it, of why it might be
    important. For example, a couple of years ago, we got as a gift
    a snuff box once owned by Isaac Bassett, who was the assistant
    doorkeeper here in the Senate. The snuff box was actually a
    gift to Bassett from the Senators themselves in the 19th
    century.

                           CURATORIAL ADVISORY BOARD

        The curatorial advisory board will assist us. They will
    also note, if it is a fine piece of silver, we might ask the
    curatorial board for their advice. So yes, it very much will
    help us in determining the appropriateness of that gift to the
    Senate.
        Senator Campbell. How many people are on that board?
        Ms. Skvarla. We are having 11.
        Senator Campbell. Eleven. Emily did mention some of the
    acquisitions that have been made. Those will eventually all be
    in the Visitor Center, like Vice President Curtis' chair. Is
    that the long-range goal that--that's where they will be?
        Ms. Skvarla. We are still in the process of that exhibit
    design and development. That will be an issue that obviously
    will be presented to leadership and the Capitol Preservation
    Commission, as time goes forward.

                                SENATE WEB SITE

        Senator Campbell. Thank you. Did I hear you properly when
    you said we are getting 150,000 hits per day on the web site?
        Ms. Reynolds. Right. It's 115,000.
        Senator Campbell. 115,000 per day. Are most of those
    students or do you have any way of knowing?
        Ms. Reynolds. I am not certain that we have a way of
    knowing. That would be an interesting figure to track. I can
    tell you, though, just some anecdotal evidence that came in
    recently that was fun for us to see, and that is, a university
    instructor in Indiana was nice enough to send us his core
    syllabus on public law in the United States Senate. He had
    encouraged his students to use Senate.gov, and had developed
    his syllabus around some of the material on Senate.gov.
        If there is a way to track those statistics or to conduct
    some sort of a survey of our users, let me get with our
    webmaster on that. I will be happy to get back to you. That is
    a good question.
        Senator Campbell. I thought it might be students. I know
    when my own son was in college a few years ago, he was using
    different web sites, the Library of Congress, and a number of
    opportunities back here to write a lot of his college papers.
        Ms. Reynolds. Right. Exactly.
        Senator Campbell. It is a wealth of information.
        Ms. Reynolds. The other thing, if I might just add one more
    note on the web site usage, is we were averaging about 15
    requests a day for assistance in navigating the site. Our very
    skilled webmaster now, in rearranging the site and making it
    more user-friendly, we are now getting to an average of just
    about five requests a day for assistance in navigating the
    site.
        So, this is another area where your committee has been
    generous to us in helping us expand the site, some added
    enhancements. You will see some additional enhancements even
    this year.

                                 RICIN INCIDENT

        Senator Campbell. Okay. We will move on to a couple of
    other things. How did the February's ricin incident impact your
    operation?
        Ms. Reynolds. Our office was not most immediately impacted.
    But there were a variety of ways in which we responded. The
    first is, Senator Frist asked the Sergeant-at-Arms and I to set
    up a leadership coordination center, which actually ended up
    being physically housed in my office for that week. It was very
    helpful for all of us because our staff and the Sergeant-at-
    Arm's staff were working in conjunction with each other on that
    response.
        In addition, as I mentioned, we exercised part of our COOP
    plan with the stationery operation, also part of our COOP plan
    with public records, and we maintained--they were long days,
    but in the evenings then, we would flip over the operation to
    the Sergeant-at-Arms emergency operation center for any
    questions that came in during late evening hours through
    individual offices. But most especially, having that leadership
    coordination center, so that we could work hand-in-glove
    together to respond, was very helpful.
        Senator Campbell. So, you did not feel that you were out of
    the loop on anything that you couldn't keep up----
        Ms. Reynolds. No, sir.

                             CAPITOL VISITOR CENTER

        Senator Campbell. Okay. And then the last question on the
    Visitor Center. I look at it almost every day once or twice.
    We're certainly picking up progress on that. I wish it were
    faster, very frankly. But what is your assessment of the status
    of that? Do you think we are going to have some challenge that
    we cannot confront?
        Ms. Reynolds. That is a good question. I certainly do not
    want to steal Mr. Hantman's thunder, since he is----
        Senator Campbell. I am going to ask him the same question.
        Ms. Reynolds [continuing]. Our day-to-day person out there.
    My role in this has been, and I will tell you, I have been
    amazed in the course of my time in the job, even though I
    certainly am not the Architect of the Capitol, anything close
    to an engineer or a construction person, or an architect
    myself, I have been amazed at the time that the leadership
    staff and staff from the Capitol Preservation Commission spent
    on this, in conjunction with the Architect's Office. Again, it
    is a very collaborative effort.
        Clearly, we have had some challenges, be it weather-
    related, obviously, in the construction of this or even some
    construction challenges. I know Alan will address all of that.
        The project is making enormous progress, as you said. I
    reflected that, Mr. Chairman, 1 year ago, at this time, when
    you and I talked about those trucks coming up the hill every
    day but coming up to load up dirt, they were excavating and
    removing that dirt each and every day.
        It is incredible progress in 1 year when you think you can
    now actually look out there and see that there is a top going
    on. It gives us all a sense, and particularly for those of us,
    or laymen, like myself, who do not understand construction
    necessarily. But it comes alive all of a sudden, and you begin
    to see all of those drawings, and diagrams, and everything we
    talked about during the previous year begin to unfold.
        There is no doubt that within the course of the next couple
    of years, whether it is weather-related issues or other
    challenges, that the architect will presumably continue to face
    those challenges; but face them well, as they have. We all make
    those adjustments together.
        That is why it is very important, I dare say, that there is
    a weekly meeting that I help to facilitate, along with my
    colleague on the House side, the Clerk of the House, so that we
    come together in a bicameral, bipartisan way to look at any
    issues on the Architect's plate, to address how they impact our
    community, both on the Senate and the House side, and hopefully
    afford solutions together.

                           CVC OPERATIONAL DECISIONS

        In addition to that, we are also at a time, and it is a
    particularly exciting time, as we reference the exhibit design
    coming up for the Capitol Visitor Center, where we can begin to
    turn our focus to the operational side of the Capitol Visitor
    Center. That is when you know there is light at the end of the
    tunnel, that it is an exciting place to be.
        Clearly, while we are not making strict operational
    decisions, we are having very good dialogue, and hopefully
    setting some parameters that we can take back to the leadership
    and the Capitol Preservation Commission. In adding over 500,000
    square feet to the Capitol itself with this Visitor Center,
    there are enormous operational issues. But we all keep in mind
    the three primary goals, the very reason this center is being
    constructed in the first place, and that is to enhance our
    security, to improve our visitor amenities, and just as we talk
    about on our public web site, to provide greater visitor
    education opportunities for those who come here to learn about
    this Capitol and this Congress.
        Senator Campbell. Thank you.
        Ms. Reynolds. Thank you.
        Senator Campbell. Senator Durbin, did you have questions of
    Ms. Reynolds?

                          SENATE STUDENT LOAN PROGRAM

        Senator Durbin. Very briefly. You have recently conducted a
    survey on student loan programs?
        Ms. Reynolds. Yes.
        Senator Durbin. This is an issue that I initiated several
    years ago and found that no one wanted to administer it. We
    basically decided to let 1,000 flowers bloom and see what
    happened, with some basic guidelines. I have lived in fear ever
    since that, not only some wonderful things but some not so
    wonderful things, may have occurred under the name of student
    loan incentives for recruitment and retention. What have you
    found in your survey?
        Ms. Reynolds. Our survey, which we conducted last summer,
    and we had roughly 58 offices that responded, and I will tell
    you a quick summary, obviously. Those offices that responded,
    and all 58 participate in the program, the feedback was very
    positive about the program.
        As you know, and I was not here at the time; but as you
    know, the administration of the program was given to us but not
    with really a strict set, if you will, of rules and
    regulations. Of course, then each office was able to create
    their own rules and regulations, if you will.
        I will balance with what we found in that survey with
    regard to the offices and the administration of the program, is
    that some offices, Senator Durbin, will actually set parameters
    of service before an individual qualifies for the student loan
    repayment program. Others have an open enrollment period. So,
    you are not necessarily, as a new hire, automatically entitled
    to the program. But everyone does have a little bit of a
    different variation on that theme.
        One of the questions we asked the offices in that survey
    is, would it be helpful to you if there was some additional
    guidance. I think about two-thirds of those in the survey said,
    leave it as it is. We like making our own determination.
        That having been said, I do think--and, again, most of this
    is anecdotal evidence, because as you know, the program is now
    only about 2 years old, but the anecdotal evidence is still
    overwhelmingly positive, in terms of offices who have strong
    candidates, and particularly, young lawyers, strong candidates,
    who very much wanted a job on the Hill, but because of the size
    of their student loans, salary was obviously a real issue. In
    more than one instance, offices cited that having the
    availability of that program enabled them to attract very top-
    flight candidates.
        The retention piece of it, again, because the program is
    not very mature, and it still somewhat remains to be seen, we
    can continue to go back, obviously, and pull those statistics
    for you all. I did notice because I know this was one concern
    this year at this hearing, that it does not appear as if, from
    last year to this year, we dropped--we had a fairly high number
    of those who terminated before their year was up, that they
    were required of service. It looks like from last year to this
    year, that number dropped by about one-third or better. So from
    a retention standpoint, you could extract that--that is
    obviously a positive going forward.
        But we will continue to monitor that program and provide
    you with feedback. But again, from the office's standpoint, the
    ability to make their own determination and to use it as a tool
    to attract and retain, was very positive.
        Senator Durbin. Well, we give considerable latitude to
    members of the Senate and other offices, within certain
    guidelines, to decide salaries, and promotions, and work
    assignments. I like that part of the flexibility of it, because
    I think each office tries to create its own office atmosphere.
        I am going to ask, and I have asked the General Accounting
    Office to take a look at this, and see if they have any
    recommendations, whether we should be more specific in terms of
    guidelines to avoid some things that we did not anticipate. But
    thank you for your work on this.
        Ms. Reynolds. Thank you very much.
        Senator Durbin. Thank you for your testimony today. Thanks,
    Mr. Chairman.
        Senator Campbell. Thank you. This will be the last hearing
    that you appear while I am still here. I just wanted to, for
    the record, tell you how much I have enjoyed working with you,
    your professionalism, and your friendship, too. When I go back
    out West to find different kinds of mountains to climb, I will
    be thinking of you here.
        Ms. Reynolds. Keep thinking of us. We appreciate it. Thank
    you, sir.
                            ARCHITECT OF THE CAPITOL

    STATEMENT OF ALAN H. HANTMAN, ARCHITECT OF THE CAPITOL
    ACCOMPANIED BY:
            DICK McSEVENEY, CHIEF OPERATING OFFICER
            AMITA POOLE, CHIEF OF STAFF
            GARY GLOVINSKY, CHIEF FINANCIAL OFFICER
            HECTOR SUAREZ, CHIEF ADMINISTRATIVE OFFICER
            BOB HIXON, PROJECT EXECUTIVE FOR THE CAPITOL VISITOR CENTER

              OPENING STATEMENT OF SENATOR BEN NIGHTHORSE CAMPBELL

        Senator Campbell. Now, we will hear from Mr. Hantman.
        If you would just come up here, and go ahead, and proceed.
    Your complete testimony will be included in the record, Mr.
    Hantman. I think you can abbreviate your verbal presentation as
    you would like.
        Mr. Hantman. Thank you, Mr. Chairman, Senator Durbin. Thank
    you for this opportunity to testify here today. I would just
    like to introduce a few people who are joining me here today.
    Our Chief Operating Officer, Dick McSeveney; our Chief of
    Staff, Amita Poole; our CFO, Gary Glovinsky; Chief
    Administrative Officer, Hector Suarez; Bob Hixon, our Project
    Executive for the CVC; and several other key people who have
    supported me in preparing for this hearing and throughout the
    year.
        What I would like to do, Mr. Chairman, as you indicated, is
    just have a few words in terms of an oral review here.
        Senator Campbell. Your complete testimony will be in the
    record. Just go ahead and summarize as you please.

                        FISCAL YEAR 2005 BUDGET SUMMARY

        Mr. Hantman. As we prepared this budget request, we worked
    very closely with our clients to ensure that we were addressing
    their needs and those of the Capitol complex in planning for
    necessary projects and programs.
        This budget request for fiscal year 2005 directly relates
    to my responsibilities for facilities management, project
    delivery, and the stewardship of the Capitol complex. Over the
    past few years, as directed by the Congress, additional
    buildings have been added to the AOC's responsibilities. This
    includes the new Alternate Computer Facility, the Fairchild
    Building, the National Audio-Visual Conservation Center, the
    book depositories at Fort Meade, and, of course, the Capitol
    Visitor Center.
        All told, this amounts to an additional 1.5 million square
    feet of buildings and another 91 acres or so under the AOC's
    custodial care. That brings us to some 15 million square feet
    of building space, Mr. Chairman.
        We are requesting $585 million for fiscal year 2005 to
    support the maintenance, the care, and operations of all the
    buildings and grounds of the Capitol complex. This includes a
    number of projects to support and enhance life safety and
    security which, as you know, Mr. Chairman, are my top priority.
    It also reflects a number of major projects valued at $177
    million that have been requested by our clients, including the
    Library of Congress and the U.S. Capitol Police. You alluded to
    that in your opening statement.
        This 2005 request represents a 41 percent increase over the
    enacted amount for fiscal year 2004. However, if our client
    projects were counted separately from our basic AOC budget, the
    fiscal year 2005 request would be less than my fiscal year 2004
    budget.
        On another note, Mr. Chairman, I am pleased to report that
    the AOC has once again cut its total injury/illness rate. We
    reduced fiscal year 2002's rate by more than 5 percent, for an
    annual rate of 7.9 percent in fiscal year 2003. Since fiscal
    year 2000, we have reduced the injury/illness rate by a total
    of 56 percent and we still continue to improve. Our goal
    basically is to get it down as close to zero as is humanly
    possible. We thank you for your support in this.
        Many life safety and security improvements have been
    implemented or are ongoing in the Senate office buildings. For
    example, all Dirksen building entrances have been upgraded to
    meet ADA requirements. Mechanical and electrical updates have
    been or are being completed on all Senate building elevators.
        We also continue to upgrade or install new sprinkler
    systems, smoke detection systems, and are making egress
    improvements in buildings across the Capitol complex.
        In this calendar year, Mr. Chairman, one of our highest
    priorities is preparing for the inauguration. We have bid out
    the construction of the inaugural stands, which we will be
    awarding shortly; and we are in various stages of design,
    specification, and bidding for other requirements, such as the
    sound system, ramps, and chairs for the swearing-in ceremony.

                             CAPITOL VISITOR CENTER

        Another major undertaking will be the planned start-up of
    building systems for the Capitol Visitor Center. At the
    direction of the Capitol Preservation Commission, I have
    requested as an interim measure, funding for facility
    operations and maintenance until it is decided how and by whom
    the CVC will be operated and maintained. Ms. Reynolds referred
    a little bit to that process that is going on right now.
        Construction on the CVC has been progressing at a strong
    pace, as crews are increasingly working under the roof deck,
    which now covers the entire western half of the project area.
    It might be helpful, Mr. Chairman, to just take a look at a
    photo showing the progress we made last August on the Visitor
    Center, and a photo that was taken just 2 weeks ago.
        On the left, of course, you see that the excavation was
    well underway. The foundation walls were being put in just last
    August, since last summer, completed to what we see basically 2
    weeks ago. The deck, again, is fully in place with respect to
    the area between the major skylights and the east front of the
    Capitol.
        All of that area will be part of the plaza that is
    necessary to support the inaugural activities. We will have a
    completed roof deck. We will have it covered by granite pavers,
    from the House steps to the Senate steps; and in May we expect
    to see stone masons start to lay granite pavers beginning on
    the north side, near the Senate steps. Some 200,000 pavers will
    be laid.
        Over the past year, the AOC has undergone significant
    change. We have added key people. We have reaffirmed our
    commitment to providing high-quality service to Congress and
    the American people with the implementation of a new strategic
    plan. I am dedicated to providing a safe, secure, and
    productive environment for all who work at and visit the
    Capitol complex each year, as well as for all AOC employees.
        We have completed tens of thousands of work orders to our
    clients' satisfaction--about 48,000 work orders just in the
    Senate buildings this year. We have achieved many of our goals
    due to the hard work and dedication of the AOC employees. I am
    very privileged and honored to lead such a professional team.

                               PREPARED STATEMENT

        This committee's support in helping us achieve these goals
    is greatly appreciated. Once again, I thank you for this
    opportunity to testify today. I will be happy to answer any
    questions you might have.
        Senator Campbell. Thank you.
        [The statement follows:]
                  Prepared Statement of Alan M. Hantman, FAIA
        Mr. Chairman, members of the Subcommittee, I thank you for this
    opportunity to testify before you today. The Office of the Architect of
    the Capitol (AOC) has been undergoing tremendous change over the past
    year as we have finalized and begun implementing our five-year
    Strategic Plan. Our Strategic Plan is the blueprint that we are now
    following to help us carry out our responsibilities to preserve and
    enhance the United States Capitol and the other facilities located
    across the Capitol complex as well as guide us as we provide high-
    quality service to Congress and the American people.
        Our Strategic Plan is linked to our Performance Plan which outlines
    specific actions and milestones we will use to achieve our goals. We
    also have established a reporting protocol that is tracking the
    Agency's strategic initiatives, the General Accounting Office's
    recommendations, and the Chief Operating Officer's Action Plan items on
    a monthly basis. In addition, we have identified a number of measures
    to monitor and evaluate the success of our work efforts over the next
    year.
        Last July, we added a Chief Operating Officer to the team. Richard
    McSeveney is responsible for much of the AOC's day-to-day operations
    including programs and initiatives associated with strategic planning,
    performance management, worker safety, customer satisfaction, and
    service quality. He has submitted his Action Plan to Congress that
    outlines how we are implementing change and moving the AOC to the next
    level of client service excellence.
        As we prepared this budget request, we worked closely with all of
    our clients to ensure that we were addressing their needs and those of
    the Capitol complex in planning for numerous projects and programs.
    This budget request for fiscal year 2005 will allow me to meet my
    responsibilities for facilities management, project delivery, and the
    stewardship of the Capitol complex. But just as importantly this budget
    responds to the needs of our customers, the requirements for improved
    fire and life safety, security, and future obligations.
        Over the past few years, per the direction of Congress, additional
    facilities and projects have been added to the AOC's responsibilities.
    A short list of facilities includes the Alternate Computer Facility,
    the Fairchild Building, the National Audio Visual Conservation Center
    in Culpeper, Virginia, and of course, the Capitol Visitor Center. All
    told, this amounts to an additional 1.5 million square feet and 91
    acres under the AOC's custodial care. Our budget has been structured
    and increased to support the new requirements and responsibilities this
    Agency has for these new facilities.
        Over the past several weeks, we have worked with the respective
    committee staffs and our clients to address possible budget
    resolutions. We re-examined priorities and studied how holding our
    budget to fiscal year 2004 funding levels would impact our day-to-day
    work as well as major projects. We have met the challenge of building a
    budget request that balances both fiscal responsibility and my office's
    mission to preserve, maintain, and enhance the national treasures and
    properties entrusted to us. I want to thank the Subcommittee for its
    generous support over the years without which we could not have
    completed many critical projects, continued to provide exemplary
    service, and assured continuity of operations at the Capitol, in the
    Senate Office Buildings and throughout the Capitol complex.
        We are requesting $479.3 million (not including items specific to
    the House) for fiscal year 2005 to support the maintenance, care, and
    operations of the buildings and grounds of the Capitol complex. This
    includes a number of projects to support and enhance life safety and
    security--my top priority. It also reflects a number of major projects,
    valued at more than $136 million that have been requested by our
    clients including the Library of Congress (LOC) and the U.S. Capitol
    Police (USCP).
        The most significant requests are $59.2 million for the
    construction of the Library's Copyright Deposit Facility; $39.5 million
    for the construction of the third and fourth increments of the
    Library's collection storage modules at Fort Meade; $18.4 million to
    accommodate office and storage space at the Fairchild and GPO buildings
    for the Capitol Police; and another $18.4 million for a USCP firing
    range and off-site delivery facility.
        This is a $138.7 million or 41 percent increase over the enacted
    amount of $340.5 million for fiscal year 2004. This does not reflect
    the $12 million transfer of fiscal year 2003 appropriations into the
    AOC budget for fiscal year 2004 for the Capitol Visitor Center.
        If these specific client requests were not counted in the AOC
    budget request, budget growth for fiscal year 2005 for my Agency would
    actually show a negative growth from fiscal year 2004.
        Other key items in my budget request include $20.1 million for
    sprinkler and smoke detector upgrades in the Library of Congress
    buildings; $3.7 million for the Hart modular furniture replacement
    program; $1.3 million to renovate Senate Office restrooms; $4.5 million
    to implement Phase III of the U.S. Capitol Master Plan; $14.5 million
    for the preparation of the opening of the Capitol Visitor Center; $5.1
    million for the restoration of Bartholdi Park and Fountain; $1.5
    million to design the upgrade of the Capitol complex cable television
    system; $955,000 for wayfinding signage, renovation and restoration of
    street lights and other decorative items on the Capitol grounds, and
    $1,065,000 for installation and operations of emergency defibrillators
    across the Capitol complex.
                              project descriptions
    Copyright Deposit Facility--$59.2 million
        This new, centralized, 180,200 square foot facility would house all
    existing and projected copyright collections in a secure, specialized
    environment for the Library of Congress. The Copyright Office of the
    Library of Congress is required by law to retain all the post-1977
    unpublished deposit materials for the full term of the copyright
    protection and published deposits for the longest period considered
    practicable and desirable by the Register of Copyrights. The design
    work has been completed on this two-story building and, if funded,
    construction will begin in 2005. If the facility is not built, the
    storage of existing and future copyright collections will continue to
    be housed in decentralized, privately leased records facilities with
    questionable abilities to provide for the future growth of deposits and
    records. In addition, the collections will continue to be at risk due
    to the inability of existing mechanical systems to provide for the
    specialized requirements regarding temperature and humidity.
    Fort Meade Book Storage Modules 3 and 4--$39.5 million
        This project for the Library of Congress entails the construction
    of two buildings to alleviate a shortage of collection storage capacity
    at the Jefferson, Adams, and Madison buildings on Capitol Hill. The
    third and fourth storage modules are designed to maintain environmental
    conditions of 50 degrees Fahrenheit and relative humidity of 30
    percent. Scheduled to be constructed in late 2004 and 2005, the
    buildings will have two loading docks, a quarantine room, and a vacuum
    equipment room, as well as mechanical and electrical rooms to
    accommodate the necessary equipment. If construction of these modules
    is delayed, the Library's ability to accept new materials into its
    collection will be compromised.
    U.S. Capitol Police Support (USCP)--$30.9 million
        The AOC has recently signed a 10-year lease to occupy a little more
    than four floors of the Fairchild Building located at 499 South Capitol
    Street, S.W., that will accommodate the interim office space needs of
    the U.S. Capitol Police. Funds have been requested for the annual lease
    and to cover the costs to fit out the available space. This includes
    fixtures, furnishings, equipment, telecommunications, and information
    technology infrastructure.
        In addition, the AOC is nearing agreement with the Government
    Printing Office to utilize some space for the Capitol Police logistical
    and storage functions, such as property management and warehousing.
    Relocating the USCP to these spaces will free existing space occupied
    by the USCP for Congressional use.
    Capitol Visitor Center Start-up Support--$14.5 million
        In preparation for the opening of the Capitol Visitor Center (CVC),
    $6.3 million is requested to procure equipment and supplies, contract
    for custodial services, and support, operate, and maintain the
    structural, architectural, and utilities infrastructures.
        An additional $8.2 million is being requested to cover the
    transitional stand-up costs for the operations, administration, and
    management supporting guide services, visitor services, food services,
    and gift shop services for the CVC.
        In addition, the AOC is requesting 35 Full Time Equivalents (FTEs)
    in preparation for the opening of the CVC. Eighteen FTEs are being
    requested in the Capitol Building appropriation for facility
    maintenance; 16 FTEs in the CVC appropriation for project and
    operations support necessary for an orderly startup (tour guide
    services, restaurant management and gift shops); and one FTE to support
    the Office of the Attending Physician.
                                employee safety
        For the third consecutive year, the AOC has cut its injury/illness
    rate. According to year-end figures from the Occupational Safety and
    Health Administration, we reduced fiscal year 2002's rate of 8.35 by
    more than five percent for an annual rate of 7.91 in fiscal year 2003.
    Since fiscal year 2000, we have reduced the total injury/illness rate
    by 56 percent. These achievements would not have been possible without
    the efforts of all AOC employees. In January, we conducted an Agency-
    wide survey asking employees about their perceptions, opinions, and
    attitudes about safety. The response rate to the survey was 62 percent
    when typically these surveys receive a 30 percent response rate.
        When asked if they agree with the statement, ``Workplace safety is
    very important to AOC,'' 90.8 percent of AOC employees agreed with the
    statement. Nearly ninety-four percent of employees stated that they
    ``think about the safety of my customers and the public,'' and 96.2
    percent said they ``think about their own safety on the job.'' Over the
    past several years, our workforce has made a commitment to work in a
    safe and healthy environment. This commitment has lead to consistent
    and notable reductions in our injury/illness rate.
        However, any single injury is one too many. I am committed to
    providing a safe environment on Capitol Hill. I set high expectations
    and communicate them to my Superintendents and employees. I perform
    unannounced visits to worksites to observe and discuss safety and
    ensure that personal protective equipment is available and worn. Mr.
    Chairman, I have requested $64.7 million in project funding to support
    life/safety and security projects. It includes upgrading or installing
    new sprinkler systems and smoke detection systems; upgrading elevators;
    renovating restrooms to comply with ADA requirements; installing
    defibrillators across the Capitol campus; and making egress
    improvements.
                      senate office building improvements
        Many life/safety and security improvements have been implemented or
    are ongoing in the Senate Office Buildings. For example, all Dirksen
    Office Building entrances have been upgraded to meet ADA requirements,
    and all mechanical, electrical, and cab refurbishing upgrades to the
    elevators in the Russell Building have been completed. All mechanical
    and electrical updates are completed on the Dirksen Building elevators,
    and the cab upgrades are scheduled to be completed this fall. The Hart
    Building elevators modernization will begin in May and the completion
    date for this project is spring of 2005.
        In the area of client services, Senate offices now have a new way
    to submit and track work requests, learn about on-going projects, order
    furniture, or request assistance from the Senate Superintendent's
    Office. The tool is a new intranet site: http://Senate.AOC.gov. This
    site is the first AOC client-specific web site focused on customer
    service. In addition, building alerts are regularly posted on the site
    and updated to provide information about projects such as elevator or
    restroom upgrades.
        Our new Senate site was rolled out during a demonstration for
    Senate staff in December and we have been providing training classes
    for office managers. Senate staff members have also been providing us
    with suggestions on how to add value to the site and we are making
    adjustments to better meet their needs. The site will continue to grow
    and evolve in the upcoming months, for example, a client feedback form
    was recently added. Similar sites for the House and Capitol
    Superintendent's Offices will be online soon.
        The AOC continues to make significant improvements in the Senate
    Office Recycling Program. Contamination rates have plummeted from a
    high of 75 percent in fiscal year 2000 to zero for the first quarter of
    fiscal year 2004. We attribute this tremendous progress to three
    things: we simplified the program, we have initiated coordination
    efforts with the Senate Sergeant at Arms and Senate staff to further
    educate them about the program, and we have modified our own work
    practices and operations to ensure efficient and effective collection
    and separation of recyclable materials. We have also increased the
    types of recyclable materials we collect to include items such as toner
    cartridges and rechargeable batteries. Ninety-three office suites,
    eight committee suites and a number of other Senate offices are
    actively participating in the recycling program.
                                capitol building
        In fiscal year 2005, one of our highest priorities concerning the
    Capitol Building will be the preparations for the Presidential
    Inauguration. We have been updating plans from the last inauguration
    and have begun planning the construction of Inaugural stands and
    identifying other requirements, such as a sound system, ramps,
    crossovers, and chairs for the swearing-in ceremony. We are also
    working closely with the U.S. Capitol Police on security issues.
        Mr. Chairman, I am pleased to report that as of February 17, 2004,
    the Capitol Dome was re-opened for special Member-led tours. As you
    know, tours were suspended following the terrorist attacks on September
    11, 2001. Since that time, my office completed a number of safety
    upgrades in the Dome that included installing exit signs, bump guards,
    fire alarms, an evacuation system, improved handrails, and new stair
    treads. We also improved the tour route lighting and emergency
    lighting. I would like to note, however, that the scheduling and
    conducting of these tours now falls under the responsibility of the
    Capitol Guide Service.
        We have completed a number of other projects throughout the Capitol
    over the past year including installing numerous additional life and
    fire safety devices throughout the building; continuing to restore and
    conserve frescos, historical artwork, chandeliers, and the Brumidi
    murals; and upgrading 24 of 28 elevators. The remaining four are
    scheduled to be completed between fiscal year 2004 and fiscal year
    2006.
        Mr. Chairman, a popular service we provide for the American public
    is the opportunity to purchase, through Members' offices, flags flown
    over the U.S. Capitol. Last fall, my office discovered that several web
    sites existed that were reselling flags flown over the Capitol at a
    much higher cost than if the consumer had requested one through their
    Member's office. We sent out notices to all Congressional offices to
    alert Members to this practice and have been developing a web site that
    would provide information on flags flown over the Capitol and directing
    consumers to contact their respective Senators or Representatives. I am
    pleased to report that as a result of our actions, many of these web
    sites have ceased reselling flags or have changed their web sites to
    clarify their business practices.
        As I mentioned earlier, another major undertaking will be the
    start-up of the Capitol Visitor Center facility. At the direction of
    the Capitol Preservation Commission (CPC), I have requested funding
    under the Capitol Building fiscal year 2005 appropriation, as an
    interim measure to fund facility operations and maintenance until it is
    decided how and by whom the CVC will be operated and maintained.
                          capitol visitor center (cvc)
        Construction on the CVC has been progressing at a strong pace,
    especially over the last several months as crews are increasingly
    working under cover below portions of the roof deck which now covers
    the entire western half of the project area. Sequence 1 and Sequence 2
    contractors have been jointly working to coordinate and fully integrate
    their schedules to ensure that the project proceeds in the most
    efficient manner possible. Additionally, we have augmented our
    management team to facilitate the efficient sequencing and execution of
    the more than 3,000 project line items that need to be accomplished.
        Over the next year, Members will witness the completion of the
    western half of the plaza at a level sufficient to support inaugural
    activities. That entails the ability of the plaza deck to accommodate a
    Presidential motorcade and, if necessary, the landing of a helicopter
    on the deck. Specifically, the portion of the plaza supported by the
    steel framing will have a completed roof deck covered by granite pavers
    from the House Steps to the Senate Steps. In May, Members can expect to
    see stone masons on the plaza laying granite pavers on the East Front
    Plaza deck beginning on the north side of the deck near the Senate
    Steps. A plan describing the plaza finishes and the accessible areas of
    the CVC site for the Inauguration has been presented to the CPC and
    Rules Committee staff. Other landscape elements will be in place and
    some portions of the hardscape elements, including the retaining walls
    around the House and Senate grassy oval areas, will be partially in
    place. At the same time, all the interior facilities will continue to
    be worked on and ultimately commissioned and turned over so those
    operating the facility will have time to adapt to the facility and
    establish operating procedures before the CVC opens to the public.
        The current estimated completion date for the CVC is spring 2006.
    After a long and thorough review of project activities and the line-
    item schedules of both Sequence 1 and 2 contractors by my office, our
    construction manager, and the General Accounting Office, we have
    determined this more accurate opening time frame.
        The overall base project budget stands at $351.5 million. This
    amount includes the $265 million appropriated for the core CVC space
    and the shell for House and Senate expansion space; $38.5 million for
    additional security enhancements funded after September 11, 2001; and
    $48 million to accommodate higher than expected bids, additional
    changes in scope and design due to unforeseen site conditions and
    weather impacts, and the management and construction costs associated
    with the scope and design changes, as well as contingency funds.
    Additionally, $70 million has been appropriated for the build-out of
    the House and Senate expansion spaces.
        As construction continues, we continue to plan the exhibits that
    will be featured inside the CVC and work with representatives of the
    Capitol Preservation Commission to determine how services such as food
    service, gift shops, guide services, and first aid to our visitors will
    be provided. Because our 16,500 square foot gallery will be the only
    one in the country dedicated to the history and accomplishments of the
    Congress and the growth of the Capitol, it will feature a number of
    interesting and educational exhibits. It will include a 10-foot tall
    touchable model of the Dome with cutaway interior; a curving marble
    wall inset with state-of-the-art document cases featuring historic
    documents from the Library of Congress and the National Archives
    chronicling legislative achievements; a set of six alcoves covering the
    history of the House, the Senate, and Capitol Square; virtual House and
    Senate theaters allowing historical programs and live access to floor
    proceedings; a ``Behind the Scenes'' area covering everything from
    subways to grounds-keeping; a photo exhibit featuring the Capitol as a
    national stage for important ceremonies; and an interactive area where
    visitors can access touch screen programs about ``Your Congress/Your
    Capitol.''
        Mr. Chairman, I know that we all eagerly await the opening of this
    unique, historic, and very necessary visitor center that will offer
    free and open access to all people in a safe and secure environment so
    that they may witness and learn about the workings of democracy and the
    legislative process.
                                project delivery
        As the example of the CVC illustrates, in recent years the number
    and complexity of our projects has greatly increased. Therefore, the
    AOC has worked to develop core and technical competencies for its
    project managers and contracting officers. Specifically, we have
    established a competency framework and training assessment for both AOC
    contracting officers in line with the Defense Acquisition Workforce
    Improvement Act (DAWIA) and AOC project managers in the engineering and
    architectural series that mirrors the Project Management Institute Body
    of Knowledge.
        We are also working more closely with our clients to design and
    control the scope of our projects to assure high quality drawings and
    specifications, to minimize changes during construction, and to deliver
    quality projects on time and on budget. All current projects have been
    prioritized and the more critical projects have been assigned to the
    Project Management Division. Appropriate levels of support are being
    provided to these project managers to assure that they have the
    resources necessary to move these high priority projects forward.
        The Capitol Complex Master Plan that is under development will help
    facilitate consistent management and oversight of all our projects and
    assist us in setting priorities. Its key objectives are to document
    existing conditions; provide context for site selection and site
    development within and near the Capitol Grounds; address cross-
    jurisdictional questions of historic preservation, sustainability,
    infrastructure renewal, permanent security measures, visitor management
    strategies, traffic and parking issues, and landscaping; and identify
    facility needs and future building trends, and coordinate planning
    efforts with local, regional, and Federal development plans.
        The existing master plan is nearly 25 years old and does not
    address present-day issues such as increased security, new and
    advancing technologies, and future needs. As you know, since September
    11, the AOC has undertaken substantial new projects to adjust to a
    demand for heightened security. Chief among these projects is perimeter
    security which has seen significant progress.
      --Capitol Square.--All work on the Senate side of Capitol Square is
            complete except the outer perimeter work along Constitution
            Avenue, N.W., and the work which is currently impacted by the
            Capitol Visitor Center project. The portion near 1st Street and
            Constitution Avenue, N.W., which is part of the Capitol
            Complex's outer perimeter, is also ongoing. The north entry
            will be constructed following the completion of the tunnel work
            on the CVC. The work along the Northeast Drive and 1st Street,
            N.E., will be completed following the completion of the CVC
            itself. The portion of the outer perimeter near 1st Street and
            Constitution Avenue, N.W., will be completed as part of the
            later phases of the Senate Office Building Perimeter Security
            program.
          The work on the House side of Capitol Square is largely complete
            with the major exception of the work which is currently
            impacted by the CVC project and the portion near 1st Street and
            Independence Avenue, S.W., which is part of the Capitol Complex
            outer perimeter.
      --Senate Office Buildings.--A contract has recently been awarded for
            the perimeter security work along Constitution Avenue between
            Delaware Avenue and 2nd Street, N.E. This work is currently
            planned to be completed in November 2004. The remainder of the
            perimeter security around the Senate Office Buildings will be
            completed in phases over the next two years.
      --House Office Buildings.--The work along Independence Avenue in the
            front of the House Office Buildings is largely complete with
            full completion anticipated this spring. The remainder of the
            perimeter security around the House Office Buildings will be
            completed in phases over the next two years.
        Another project underway that will address the current and future
    needs of the Capitol Complex is the expansion of the West Refrigeration
    Plant at the Capitol Power Plant. This project replaces the aging and
    outmoded East Plant refrigeration machines and provides for additional
    heating and cooling requirements. The project is approximately 25
    percent complete and, when finished, will enable the Capitol Power
    Plant to reliably meet cooling requirements through 2025 and will
    significantly increase overall plant efficiency, thereby lowering
    annual energy consumption.
                                 human capital
        Because the AOC is a service-based organization, our workforce is
    our most valuable asset. We continue to look at new and innovative
    approaches to better attract and retain highly qualified employees so
    that we continue to be in a position to meet the needs of all our
    clients.
        We have hosted in-service Federal Employees Health Benefits Days to
    assist employees with any problems they may have or to answer questions
    about various health plans. We plan to host sessions twice a year. We
    have also developed a new Leadership Development Program that we plan
    to roll out soon. It expands the existing framework to address all
    leadership levels of AOC to develop the skills needed to achieve
    competencies that are considered to be government-wide standards. In
    addition, we have invested in employee training and provide other
    incentives, such as transit subsidies.
        This past year we established a new Office of Workforce Planning
    and Management (WFPM) as approved in our fiscal year 2003 full time
    equivalent appropriations request. This office is responsible for
    position management, organizational analysis, and succession planning.
    WFPM staff has conducted an Administrative Study in which they
    evaluated the need of administrative positions, the duplication of
    positions, and whether AOC's positions and functions align with the AOC
    Strategic Plan.
        In September 2003, the AOC launched AVUE, a Digital Services
    Recruitment and Staffing Module that lists all AOC vacancy
    announcements and allows job applicants to apply online. In addition,
    all position descriptions are developed in AVUE. Its implementation has
    significantly reduced the time it takes to generate and issue a
    referral list of qualified candidates to managers, thereby reducing the
    time to fill vacant positions.
        With the assistance of the Office of Information Resources
    Management, kiosk computer stations were established in every
    jurisdiction so AOC employees can have access to computers to develop
    their employment profiles, view vacancies, and apply for AOC vacancies
    at any time. In conjunction, we opened an AOC Employment Center. The
    center is open every Tuesday and Thursday and by appointment. AOC Human
    Resources staff members are available to assist employees in developing
    their employment profiles and providing instruction to apply for
    positions online.
                             information technology
        Our budget request for the Office of Information Resources
    Management (OIRM) has increased as a result of our efforts to
    centralize all information technology (IT) functions under OIRM. In the
    past, individual jurisdictions controlled some portions of IT funds.
        In addition to bringing AVUE online, OIRM successfully managed a
    number of projects this past year including: developed and published
    the AOC's Enterprise Architecture; completed the foundation for the
    upgrade to AOC's network, AOCNET; completed the infrastructure build-
    out at the Alternate Computer Facility (ACF); implemented the Financial
    Management System fixed assets module on schedule which provides the
    AOC with automated records of its fixed assets and enables the
    Accounting Division to record automated depreciation entries in the
    general ledger (proper accounting of fixed assets is required to
    receive an unqualified audit opinion); developed and launched the
    Senate's web site; and completed the AOCNET Fiber-optic Ring Project.
                               senate restaurants
        Another area in which we provide client service is in the Senate
    Restaurants. We have been making strides in reducing economic
    dependency over the past few years through cost reductions and the
    marketing of our services.
        Our management has taken a number of steps to help resolve some
    issues regarding its billing procedures including: sending out bills to
    collect unpaid balances; implementing a detailed code system to explain
    charges and verifying who authorized such charges; and billing on a
    more regular cycle.
        The Senate Restaurants offer services designed to provide Senate
    Offices with new menu options when planning small, in-office functions
    that are less expensive than fully catered events. Senate staffers can
    log on to our expanded web site and check out the daily specials in
    each restaurant and look for special events. The site is registering
    more than 5,000 hits per month.
        This year we upgraded our cash registers in both the North Servery
    and Senate Chef to accept credit cards. Shortly we hope to institute a
    discount debit card for use in the North Servery as well.
        Finally, I am especially pleased to inform you that for the sixth
    straight year, independent auditors have found no reportable conditions
    or material weaknesses in financial controls.
                                   conclusion
        The Office of the Architect of the Capitol has been serving
    Congress since 1793 and continues to provide client services through
    hurricanes, ice storms, anthrax, and ricin incidents.
        Over the past year, we have undergone significant change and have
    reaffirmed our commitment to providing high-quality service to Congress
    and the American people. Our request for funds is in direct response to
    our customers' requests for important projects and programs. In
    addition, we continue to strive to achieve the level of safety,
    security, preservation, and cleanliness, expected across the Capitol
    Complex.
        I am dedicated to providing a safe, secure, and productive
    environment for all who work at the AOC and for those who work and
    visit the Capitol Complex each year. We have completed thousands of
    work orders, have met our clients' expectations, and have achieved our
    goals due to the hard work and dedication of all our AOC employees. I
    am very privileged and honored to lead such a professional team.
        The Subcommittee's support in helping us achieve these goals is
    greatly appreciated. Once again, thank you for this opportunity to
    testify today. I'd be happy to answer any questions you might have.

                                CVC LANDSCAPING

        Senator Campbell. Once the pavers are on the plaza, is
    there going to be an automobile parking lot, or is that going
    to be a garden look?
        Mr. Hantman. Certainly, from the perspective of the front
    yard to the Capitol, Mr. Chairman, my recommendation would
    certainly be that parking would be extremely limited to those
    people who really need to bring cars up onto the east plaza.
    But that is clearly an administrative decision for the----
        Senator Campbell. Are we going to replant the grass and
    some of the trees that were there?
        Mr. Hantman. Absolutely. Absolutely. We will, in fact, have
    more trees----
        Senator Campbell. There will be enough soil, on top of the
    roof of that, to be able to hold trees?
        Mr. Hantman. The areas that have been directly adjacent to
    the Capitol, say, between the central rotunda steps and the
    Senate steps, between the central rotunda steps and the House
    steps, those panels will be there. We will be having grass,
    just as Mr. Olmstead originally planned it. The concept was not
    to have heavy trees or gaudy planting that would detract from
    the building itself at those locations.
        So, those will be replaced. We will have adequate room for
    growing the grass that we need in those panels, as well as on
    the eggs. The House and the Senate eggs will be replanted.
    Trees, the alle of trees leading down East Capitol Street will
    be fully replaced with trees that are in line with the original
    design of Mr. Olmstead.
        Senator Campbell. And you feel confident that the surface
    is going to be done before the 2005 inaugural activities?
        Mr. Hantman. We will have that surface ready for--if there
    is a motorcade for the President, if the helicopter, the
    Presidential helicopter has to land, it will be in place, the
    troops need to pass in review, that will be all ready for that.

                      FISCAL YEAR 2005 FUNDING REDUCTIONS

        Senator Campbell. We have big problem with money this year,
    as you know. AOC has requested a 41 percent increase. That is
    large and it may be very well needed, but it will be tough to
    accommodate. I have asked everyone who has come before our
    committee, what happens if we cannot fund that request? Have
    you prioritized what is the most important thing that we need
    to be aware of if we need to trim some money from your request?
        Mr. Hantman. Well, within my agency, Mr. Chairman, I have
    really reviewed both operations and the capital improvement
    requirements that were requested by the superintendents of each
    of our jurisdictions; a separate jurisdiction for the Senate
    office buildings, the House, the Capitol, Library of Congress.
    And we balanced their priorities for fire, life safety,
    security, and operational requirements, against the fiscal
    realities; to ensure that we could fulfill our responsibilities
    without significant budget increases.
        In addition to refining the AOC needs for maintenance
    operations and funding for capital projects, we also worked
    very closely with our clients to ensure that we were addressing
    their needs as part of the requirements of the overall Capitol
    complex.
        I recently requested that the Library of Congress and the
    Capitol Police review and formally reconfirm their needs and
    requests, and they have done so. I have letters for the record
    submitted on March 23, from Dr. Billington, and April 5, from
    Chief Gainer, which really talk to their projects and the need
    for those very important projects.
        [The information follows:]

                                     The Librarian of Congress,
                                        Washington, DC, March 23, 2004.
    The Honorable Alan M. Hantman, FAIA,
    The Architect of the Capitol,
    Washington, DC.
        Dear Alan: In response to your March 10 letter, I am writing to
    reaffirm the Library's mission-critical need for the following projects
    in the Architect of the Capitol (AOC) fiscal year 2005 budget.
    Fort Meade Modules 3 and 4: $39,500,000
        There has already been a delay of more than five years in obtaining
    this desperately needed space.
        Failing to fund Modules 3 and 4 in fiscal year 2005 would adversely
    affect library materials.
      --The special format collections that are scheduled to fill Modules 3
            and 4 and the four specially designed cold vaults total
            approximately 26.2 million items, and include: 500,000 reels of
            microfilm masters, many of which are in imminent danger of
            deterioration that will render them unusable unless they are
            transferred to cold storage; 10 million manuscripts; 340,000
            maps; 750,000 print and photographic negatives; and 500,000
            boxes of special collections from the collections of Prints and
            Photographs, Music, Law, Rare Book and Special Collections,
            Folklife and rare bound volumes from Serials and Government
            Publications.
        Many of these materials are stored in conditions that do not meet
    preservation standards. Others are stored in better environmental
    conditions, such as Iron Mountain, but are not readily retrievable for
    processing or consultation by researchers, seriously hampering core
    Library activities.
    Copyright Deposit Facility: $59,200,000
        A delay in funding would: add more time of storing copyright
    deposits in unsuitable conditions, further advancing the deterioration
    of these deposits; and continue the risk of public criticism that
    copyright deposits are not being preserved to meet the requirements of
    the law.
        We are currently storing more than 135,000 cubic feet of copyright
    deposits.
        Copyright's capacity requirements will grow, particularly with the
    1999 Copyright term extension, which means the Office will have to
    store unpublished deposits for an additional 20 years.
    Collections Security (Secure Storage Rooms): $860,000
        In compliance with the Library's congressionally approved
    Collections Security Plan, funding is needed for the construction of 12
    secure storage vaults within the Library's three Capitol Hill buildings
    to house all ``platinum'' and ``gold'' collections.
        Current funding allowed the construction of five vaults; fiscal
    year 2005 funding will support an additional three vaults, with the
    remaining four vaults built in fiscal year 2006.
        A delay in the construction of the vaults could result in a life
    expectancy of about 20 percent of what it would be if the collections
    were stored under proper environmental conditions.
    Cafeteria Equipment: $210,000 (Price Correction from Memo)
        The continued maintenance problems of current cafeteria equipment
    (dishwashing machine) add service cost through staff downtime and
    additional use of paper products.
        If not funded, the condition of the equipment will continue to
    deteriorate, consuming additional AOC maintenance labor hours needed
    elsewhere.
        With machinery not fully operational, it creates a safety hazard
    with operators and health concerns with Library staff and patrons.
    Study--Book Conveyor Integration/Upgrade: $400,000
        Without this funding to study the alternatives for correcting
    numerous deficiencies with the existing book conveyor systems, service
    levels will continue to decrease. This may ultimately lead to a
    complete failure of the book conveyor systems.
        The decreased service levels will impact the Library's ability to
    efficiently deliver materials to its staff and other customers, and
    severely impact staff resources by eventually forcing the manual
    delivery of books and research materials.
        Funding is not required for the Madison Loading Dock Expansion
    ($125,000), and should be deleted from the fiscal year 2005 budget
    request.
        If you have any questions regarding the Library's fiscal year 2005
    AOC budget requirements, please contact Budget Officer Kathryn Murphy
    on 707-5186.
        The Library appreciates the AOC's continued support with its
    buildings and grounds requirements.
                Sincerely,
                                           James H. Billington,
                                             The Librarian of Congress.
                                     ______

                          United States Capitol Police,
                                           Office of the Chief,
                                         Washington, DC, April 5, 2004.
    The Honorable Alan M. Hantman, FAIA,
    Architect of the Capitol, SB-15, The U.S. Capitol, Washington, D.C.
        Dear Mr. Hantman: This is in response to your letter of March 10,
    2004, requesting that we validate the inclusion, and provide a
    statement as to the effect on our operations of deferring the three
    USCP facility projects contained in your fiscal year 2005 budget.
    Firing Range Design and Construction $12,000,000
        The original partnership with the Federal Law Enforcement Training
    Center (FLETC) on the new training facility in Cheltenham, Maryland
    included 26 agencies. With the creation of Department of Homeland
    Security and subsequent merger with Treasury/FLETC, the facility now
    serves 70 plus agencies but the size of the range has not grown
    proportionally. We continue to work with FLETC regarding issues on
    availability of the facilities as well as funding requirements. We have
    also been working with the Appropriations Committees regarding the
    resolution of the issues. However, the issues remain unresolved. If the
    scheduling requirements for all USCP firearms training and re-
    certification can be accommodated by the FLETC, the USCP will not
    require the facility requested by the AOC. However if the facility
    availability issues are not worked out to our satisfaction, the
    construction of a new firing range is critical to the operations of the
    USCP.
    Fairchild and GPO Build-Out $12,500,000
        It is our understanding that the AOC only has funding for fit-out
    of one of the four plus floors leased on behalf of the USCP in the
    Fairchild building. Without the $12.5 million, renovations necessary to
    occupy the remaining three floors could not be made. Without occupying
    this space, the USCP cannot relieve exiting overcrowded conditions and
    provide for current growth of personnel and equipment. We therefore
    request that this item remain in your budget.
    Off-Site Delivery $6,400,000
        The current off-site delivery facility at P Street S.E. is in
    dilapidated condition. It no longer sufficiently meets the operational
    needs of the Congressional community nor does it address the growing
    security requirements of the Congress. A new facility is critical to
    the operations of the Congress. Given the current real estate market,
    we need to be ready to immediately respond when an acceptable site is
    identified. Therefore, we request that you continue to support this
    funding in fiscal year 2005.
        Thank you for requesting our input in these facility related issues
    that so critically impact our operations. If you have any operational
    questions please do not hesitate to contact Captain Morris, on 224-
    4161.
                Very Respectfully,
                                            Terrance W. Gainer,
                                                       Chief of Police.

                        FISCAL YEAR 2004 SPENDING LEVELS

        Mr. Hantman. Our goal, Mr. Chairman, would be to maintain a
    steady state of operations at the same level as fiscal year
    2004, providing essential services, as expected, levels of
    safety and security throughout the Capitol complex. Our new
    capital projects requested by our clients, which are valid and
    important needs, would have to be deferred, if we, in fact,
    were left at the fiscal year 2004 level.
        Senator Campbell. Okay. I interpret that to mean they are
    all high priorities?
        Mr. Hantman. All of them, sir.
        Senator Campbell. I understand that you have unobligated
    funds from last year and prior years. Can we reprogram any of
    those unobligated funds to projects planned for fiscal year
    2005?
        Mr. Hantman. We do have a large balance of unobligated
    funds, as you mentioned. This includes a number of long-term
    projects, some of them being built in phases, some of them
    allocated towards the Power Plant, towards the CVC. But there
    are several parts of that unobligated balance that could be
    reprogrammed and reused, assuming that they would be
    replenished in future years.
        For instance, there is some $63 million to purchase the
    Alternate Computer Facility. If we wanted to continue renting
    for a period of time, that might be a possibility. There is $16
    million in unobligated funds for the National Audio-Visual
    Conservation Center. That is the Government's share of the
    funding that is being provided by the Packard Foundation. If
    that were replenished in a timely way to give that money
    towards that project, that might potentially be used.
        We do have other large unobligated balances for security,
    and for the Cheltenham training facility, all of these issues.
    But there would be things we certainly could talk to for
    possible reprogramming, if, in fact, they were replenished in a
    timely way.
        Senator Campbell. We have given you an awful lot of work to
    do. Should we consider perhaps a 1-year moratorium in on any
    new projects?
        Mr. Hantman. Mr. Chairman, we have effectively, in our
    budget preparation timeframe, pretty well scrubbed--we
    essentially incorporated a moratorium within the AOC for our
    basic projects, already. When our superintendents came to us
    with their requests, we basically said we are going to have--
    and I think you referred to it in your comments--about an 18
    percent increase in cost of living, in life-safety projects,
    and the cost of utilities. We have absorbed that within our
    total budget amounts.
        By doing that, by absorbing that 18 percent, we essentially
    already cut back on capital projects that we were trying to
    achieve within our fiscal year 2004 levels. So, we have started
    doing that already, sir. But as you have indicated, we
    certainly do have a very significant workload, and we are
    trying to work through that.

                              CAPITOL POWER PLANT

        Senator Campbell. Okay. Thank you. You also mentioned the
    Capitol Power Plant. Eighty-two million dollars has been
    provided in the last several years for that. What is the status
    of the project? I did not remember hearing if it is on time or
    on budget.
        Mr. Hantman. We are definitely on budget. That project is
    proceeding well. There have been delays. The delays are the
    same issues that we faced on the Visitor Center: weather-
    related delays, utility-related delays; about 120 days, to
    account for that.
        But one of the things that we are doing, because the east
    plant--the east refrigeration plant is in such poor shape right
    now and that is, of course, why you have granted us the ability
    to expand the west refrigeration plant and upgrade it, is we
    are taking two 3,000-ton chiller units and putting them
    temporarily in the east refrigeration plant; so that we can, in
    fact, make sure that we meet all the requirements for heating
    and cooling at the Capitol.
        Those two refrigeration units will be moved into the west
    plant as we move ahead. So, the fact that we are behind
    schedule should not impact the operation and supply of
    utilities to the facilities themselves; and if we want to buy
    back some of that lost time, it would be fairly expensive. So,
    we think that the solution of having these temporary machines
    put into the existing east plant, moving them over is the more
    financially appropriate way to proceed.
        Senator Campbell. Okay. Thank you. Senator Durbin, I will
    yield to you for some questions.

                       CAPITOL VISITOR CENTER MANAGEMENT

        Senator Durbin. Thank you very much, Mr. Hantman. We thank
    you and your staff for being here today, and I want to
    particularly thank Matt Evans, the landscape architect, for his
    cooperation and work with our staff on the Rain Garden project,
    which we talked about last year. They are giving me good
    reports and I thank all of you for your work in that regard.
        I would like to make a statement for the record that there
    have been some suggestions that the Capitol Visitor Center
    needs a new bureaucracy, that we need to create a new office to
    manage the Capitol Visitor Center. I think that is a very bad
    idea. I think the Capitol Visitor Center should be administered
    by your office. There may be a particular element that requires
    someone on your staff to be assigned to that. But to make that
    a separate operation, as someone suggested, I just think adds
    another layer of bureaucracy and confusion that is expensive
    and unnecessary.

                                 WORKER SAFETY

        I would like to ask you about a few things that have been
    recurring topics. One was worker safety. Several years ago, the
    reports were not too good in terms of workers' compensation and
    injuries on the job. We brought in some people to give some
    advice on that. What is the status today?
        Mr. Hantman. Senator Durbin, I think with your impetus and
    the help with this committee, we have really addressed that
    tremendously. As you probably recall, we essentially had the
    worst safety record in the Government at that point, something
    like 17.3 percent injury rate per year. We have cut that down
    tremendously with a very active life-safety program going on;
    and every year, we continue to make more progress on that.
        As of now, again, since the year 2000, we have cut down 56
    percent in terms of the injury rates. We are down to 7.9
    percent, which puts us approximately in the middle of Federal
    governmental agencies. Again, given the fact that we are
    largely a blue-collar, shop-oriented organization, that is
    saying an awful lot compared to some of the white-collar
    oriented groups. But I share your concerns. I continue to make
    this a very high priority and make sure that all of our people
    have the right protective gear, and that they have training.
        We are about to initiate a new program, in fact, where we
    have all of our supervisors and front-line people with new
    buttons that they have to put on and wear in the field every
    day to assure that they recognize that safety is one of our
    highest priorities, and that they talk to their people about it
    on a day-to-day basis. So it is very active, a lot of good
    movement, and we still have a ways to go.

                               RECYCLING PROGRAM

        Senator Durbin. On the recycling program, it is my
    understanding that there were 90 offices that were involved in
    the recycling program.
        What are we doing to encourage offices to enroll in the
    recycling program?
        Mr. Hantman. We have a dedicated team, Senator, that goes,
    essentially, to visit every committee as well as every Member's
    office. As you know, this is a voluntary program. We do
    encourage it. We encourage it also by making it as simple as
    possible to recycle.
        One of the recommendations from the outside consultants,
    that we had brought in on this, was the fact that we combine
    the mixed paper and the high-grade paper together so that we do
    not have two separate bins at the desk for people to use. It
    makes it easier for them. Hopefully, the education process we
    are using, that says please do not drop your lunch into the
    recycling bins, because that gives us essentially bales and
    bales of material that cannot be recycled and effectively used.
        We have essentially cut back almost to a zero percent
    rejection by our vendors, because the amount of garbage that
    has gone into these bales has been cut down to such a great
    extent. So, we are making an awful lot of progress on that.
    Again, your support has been critical to that.

                               PROJECT TIMELINES

        Senator Durbin. I did a little research--or my staff did,
    about how long it takes to do things. I asked them, how long
    did it take to build the Dirksen building. It turns out it was
    3 years and 9 months. How long did it take to build the Hart
    Senate Office Building? It turns out it was 6 years and 8
    months, 80 months compared to 45 months. The reason I asked
    that was because I have been watching the progress on the north
    end of the Dirksen building restroom remodeling. I can remember
    the exact day that the remodeling started. It was Halloween. So
    some 6 months ago, we started remodeling the bathroom.
        I remembered what happened on the south end. It seemed like
    1 year. Was it?
        Mr. Hantman. I would have to check on the timeframe,
    Senator.
        Senator Durbin. Who monitors that, to make certain that
    things are actually being done each day, and that they are on
    schedule.
        Mr. Hantman. Our superintendent of the Senate office
    buildings and his staff monitor those projects internally. I
    will check immediately on what the issues are on that specific
    area.
        Senator Durbin. Could I suggest that the Architect put up a
    sign where they announce that the restroom was closed,
    construction began October 31, 2003, as kind of an incentive to
    maybe complete it? Now, I have had kitchen remodeling and
    things, and I know that it goes on, and on, and on; but it just
    seems like an extraordinarily long time to remodel a bathroom.
    Six months. I know that they are doing it several floors at a
    time but, if you could look into that, I would appreciate that
    very much.
        Mr. Hantman. I absolutely will.
        [The information follows:]

                          Dirksen Bathroom Remodeling

        Question. Why is it taking so long to remodel the bathrooms
    at the North end of the Dirksen building? Is it possible to
    place a sign depicting when work commenced as an incentive for
    completion?
        Answer. The Dirksen Bathroom Renovation is proceeding on
    schedule and on budget. The duration of this project is a
    function of many constraints, specifically, hazardous materials
    abatement, constrained working environment and restricted work
    hours. Hazardous materials abatement requires the construction
    of containment areas to ensure environmental and OSHA
    compliance while limiting specific trades progress. The
    physical size of the space restricts the amount of manpower
    which can safely work at any one time thus extending the
    critical path of the project. Finally while working in an
    occupied building a significant number of activities are
    limited to night work to minimize disruption to the clients.
        As of April 19, 2004, the Senate Superintendents Office
    replaced the existing signs with signs that included the
    project start date and completion date.

                       SENATOR OFFICE BUILDING ENTRANCES

        Senator Durbin. Let me ask you about the entrance ways. You
    made reference to them. There are times when employees come to
    work or there are large groups of visitors, when people are
    standing outside, waiting to get in to go through security,
    sometimes in bad weather. Are there any design changes that you
    are considering to accommodate that possibility, where people
    might be out in the rain, or the snow, or cold weather, or
    heat, that are visiting our buildings?
        Mr. Hantman. We do have a plan at the Russell Senate Office
    Building on Delaware Avenue, just to the north of the major
    steps entering that building. We have a project in place to
    build a larger vestibule outside the face of that building,
    where people can be screened outside of the structural
    framework of the building itself, so if an incident does occur,
    it will be less damaging to the building itself.
        This will facilitate the ability of people in a very tight
    entrance to be able to come in and back up a bit. That would be
    the major entrance for ADA, as well as a security perspective.
        Senator Durbin. And that is for the other buildings, Hart,
    Dirksen?
        Mr. Hantman. The first--this was the first pilot project.
    We wanted to do this first. We were looking at the possibility
    of doing Dirksen on the D Street side, as well as taking a
    look--Hart already has the canopy out on the Second Street
    side. But Dirksen would be the next.

                              CVC COST TO COMPLETE

        Senator Durbin. With regard to the Capitol Visitor Center,
    do you believe the current estimated cost of completion, $351.3
    million, is accurate?
        Mr. Hantman. These are the dollars that we have had come
    up. As you know, the original project budget was $265 million.
    We had $38 million added, after the 9/11 timeframe, and some
    $48 million added to the project as the result of the General
    Accounting Office's analysis of the project to complete.
        We believe that--we are working very diligently towards
    making sure that we can work within these budget guidelines. We
    are at a very delicate point in the project, Senator, which
    says that our second major contractor, which is Manhattan
    Corporation, is just about to come on-site. The integration of
    the 3,000 elements that have to be integrated between our
    first-phase contractor and our second-phase contractor are
    still being worked out in terms of their overall scheduling.
        If we can get them together most effectively, and that is
    one of the reasons we brought on Bob Hixon as our executive on
    the project. People in the field need to coordinate this most
    effectively. It is a very tight budget and we are working very
    effectively towards trying to mitigate any claims and issues
    that the contractors may have, and we will have a better handle
    on that in the next several months.

                             CVC PROJECT MANAGEMENT

        Senator Durbin. When did you decide you needed a new person
    to manage the CVC project?
        Mr. Hantman. There were a series of issues, Senator. One of
    the issues certainly was the fact that because of the weather-
    related delays, and the other site surprises that our sequence
    one contractor had, it became evident that we were going to
    have to have our sequence two contractor work side by side with
    them, as opposed to turning over the work at one point in time
    for the second firm to start.
        When it became very clear that the integration of all of
    this work in the field would become even more critical, we
    recognized that further field support would be necessary. In
    fact, we asked Gilbane to bring on people who were less
    administrative but more field-oriented, so that we could
    coordinate the work.

                             RESTAURANT OPERATIONS

        Senator Durbin. Are you under any timetable or plan to
    privatize any of the restaurants in the Capitol complex?
        Mr. Hantman. We have no plan to do that.
        [The information follows:]

                               Senate Restaurants

        In reference to my statement regarding privatization of the
    Senate restaurants I would like to clarify my response. My
    original response of ``no'' is correct, although ongoing
    deliberations with the Capitol Preservation Commission about
    dining facility operations in the Capitol Visitor Center has
    raised the issue of privatization. In fact, the consultants
    reviewing the proposed operations for the CVC have recommended
    privatization of the dining facilities to the Capitol
    Preservation Commission. In the context of a new contract for
    food service operations there have also been discussions of
    including options for potential inclusion of both the existing
    Senate and House Restaurants. If this decision is made in the
    future, I anticipate that it would include provisions for
    current restaurant employees.

                                  RETAIL SALES

        Senator Durbin. Can you tell me if there has been any idea
    of starting a retail sales operation at the Botanic Garden?
        Mr. Hantman. We have been looking for some kind of
    authority to do that from the Joint Committee on the Library.
    As you know, the Botanic Garden, for purposes of security, was
    made part of the Capitol grounds, for the first time in the
    last year or so. We think that having a sales facility in the
    Botanic Garden makes an awful lot of sense. We do not have the
    authority to accept funds, to augment our income through such
    facilities but we would like to have that, pretty much as the
    Library of Congress has.
        Senator Durbin. I understand that there may be some gift
    shops in the Capitol Visitor Center. Is that correct?
        Mr. Hantman. There will be gift shops. In fact, the
    committee that Ms. Reynolds referred to before, the Capitol
    Preservation Commission, is looking at how that will be
    operated, who will operate the gift shop, what kind of
    organizational structure, that you referred to, would be put in
    place to manage it. That has not been settled yet.

                                  CVC EXHIBITS

        Senator Durbin. One of the other things that I have talked
    to a number of Members about, and there seems to be interest
    in, is perhaps in the Capitol Visitor Center, creating a new
    opportunity for the States to honor some person. Statuary Hall,
    with the two statues from most States, generally date to heroes
    and heroines of a long time ago. There are some notable
    exceptions to what I just said. But in my State's case, it goes
    back to quite a few years. I was wondering if we could work
    with you to try to set up the situation where it might not
    involve a statue or plaque, where States could, again, at their
    own expense, honor a more contemporary person from each State
    in that new Capitol Visitor Center.
        Mr. Hantman. I would be more than happy to work on that
    with you, Senator, and your staff. One of the things we have
    been looking at, by the way, is, as you are aware, there is a
    great hall, a major space in the Capitol Visitor Center. We
    have been talking at the Capitol Preservation Commission
    meetings about the possibility of moving some existing statues
    from the Capitol Building into the Visitor Center, to give it a
    sense of scale, a sense of tradition, to tie it into the
    Capitol Building itself.
        As you are aware, for the first time in the history of the
    Capitol, one of the States recalled a statue of one of their
    people. This was Kansas. They recalled Governor Glick and put
    in a statue of General Eisenhower, which now stands in our
    Capitol Rotunda. We have been getting several other suggestions
    from states and indications that they want to recall statues,
    and bring in Amelia Earhart, or other people, from their States
    that might, in fact, give us a better sense of the diversity
    and history that our country has.
        So, we do have room in the Capitol Visitor Center for
    statues; and clearly, some of them are not very well displayed
    in the Capitol Building at this point in time. They are kind of
    tucked into corners and not paid the kind of respect that
    they----
        Senator Durbin. Well, there is some talk in Illinois about
    Michael Jordan, but I do not know if that would be the honoree.
        I will just wait and see. I will let somebody else make
    that decision.

                                 CAPITOL FENCE

        The last thing I would like to weigh in on is the great
    fence around the Capitol, like the Great Wall of China. Can you
    tell me where you stand on the great fence proposal?
        Mr. Hantman. Well, clearly, I sat here, Senator, last week,
    along with the Capitol Police Board and Chief Gainer on that. I
    think that both of you gentlemen spoke eloquently to the need
    to balance security and openness. It is not an easy question.
        The Capitol Police Board has certainly given the freedom,
    and the police should be taking the freedom, to bring
    recommendations and concerns to the police board and take a
    look at all the options that are on the table. That is, in
    effect, what the Chief was doing.
        There has been no formal movement on that. It has been an
    issue that has been on the table, as you know, for a generation
    at this point in time. So, we continue to look at all the
    alternatives that the Chief presents to us and try to determine
    what needs to be recommended to the Congress. But no official
    movement has been made on that.
        Senator Durbin. My concern is then, and I share the
    feelings of the chairman, that I just do not think that this
    ought to be something that we push forward unless we are shown
    that it is absolutely the only alternative. But it seems like
    the belt-and-suspenders approach, having put in all these
    bollards to deal with traffic, and then to establish a
    perimeter fence, and keep traffic away from the bollards. I am
    not quite sure what the thinking is there. But I will keep an
    open mind, because we want everyone to be safe in the Capitol
    complex; but from an aesthetic viewpoint, I think it would be a
    disaster.
        Thank you for your testimony.

                                SENATE RECYCLING

        Mr. Hantman. My staff just slipped me a note, sir, and it
    indicates that the Senate Appropriations Committee does
    recycle. I will be happy to provide you with additional
    information on that.
        [The information follows:]

                                   Recycling

        Question. Does the Senate Appropriations Committee
    participate in the recycling program?
        Answer. The Appropriations Committee was provided with
    recycling bins, instruction and training to implement the new
    combined paper recycling program on March 12, 2004 and they are
    currently participating in the program.

                               CLOSING STATEMENT

        Senator Campbell. Mr. Hantman, I have several other
    questions I am going to submit in writing, if you would get the
    answers back to the committee. I have one that is not really an
    important question but just to settle it in my own mind, if you
    would. You talked about the fire alarms in your testimony, new
    fire alarms being put in the building some years ago. I have
    been in the same office for the last 12 years, over in the
    beautiful older building, the Russell. I love it over there. I
    never wanted to move from there, in fact. I have one of those
    old offices that has a fireplace, and there have been logs in
    that fireplace for 12 years, and I have been dying to light
    them up. Do those things work?
        Mr. Hantman. There is always a balance, Mr. Chairman,
    between the need for fire security and in fact, as you are
    probably aware, there have been an awful lot of requests in the
    Capitol Building itself for activating fireplaces, which
    sometimes have had ducts run through them, or wiring run
    through them over the past number of years. We kind of look at
    that as a one-on-one type of situation. Clearly fireplaces,
    especially when you have alarm systems in the building, are not
    wonderful.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senator Campbell. No, not a good thing. Okay. I guess I
    will have to leave the Senate then never having been able to
    use that fireplace. But I will have to live with that.
        [The following questions were not asked at the hearing, but
    were submitted to the Architect for response subsequent to the
    hearing:]
             Questions Submitted by Senator Ben Nighthorse Campbell
                             capitol visitor center
        Question. What is the status of the Capitol Visitor Center?
        Answer. Overall, Sequence 1 is approximately 60 percent complete
    and Sequence 2 is underway--with 10 percent of the value of their
    fabrication work underway--largely of stone.
        Significant progress has been made throughout the CVC site.
    Specifically, the roof deck now covers the entire western half of the
    project area and most of it has been waterproofed. Crews have begun
    placing the topping slab on the north side of the site and we will
    begin setting granite pavers on the deck in May.
        Our project team continues to integrate the schedules of Sequence 1
    and Sequence 2 contractors and we are reconciling a number of issues.
    Gilbane has added resources in the areas of management, change
    resolution, scope-gap identification and engineering support. As a
    result of these partnering efforts, we have seen tangible progress and
    results.
        Most importantly, we are on track to meet the requirements to
    support the inauguration in January 2005 and to complete and open the
    Visitor Center in spring 2006. The overall base project budget stands
    at $351.3 million. This amount includes the $265 million appropriated
    for the core CVC space and the shell for House and Senate expansion
    space; $38.5 million for additional security enhancements funded after
    September 11, 2001; and $47.8 million to accommodate higher than
    expected bids, additional changes in scope and design due to unforeseen
    site conditions and weather impacts, and the management and
    construction costs associated with the scope and design changes, as
    well as contingency funds. Additionally, $70 million has been
    appropriated for the build-out of the House and Senate expansion
    spaces. An issue we are currently working through is the significant
    increase in steel prices which might impact portions of the work that
    have not yet been procured.
        Question. What are the most significant problems you have
    experienced in this project to date?
        Answer. Any project that requires a massive excavation has the
    potential to encounter unforeseen conditions, and our project, has been
    no exception. During our preconstruction effort, before actual site
    excavation began, we encountered many difficulties during our utility
    relocation effort. Every utility line running through our project
    footprint had to be relocated and, more often than not, the drawings
    that were available to us, some dating back to the early 1900s, were
    inaccurate and unreliable. The utility relocation effort took months
    longer than expected.
        Another significant problem arose after the events of September 11,
    which prompted a full project design review. While the general layout
    of the facility did not change, we were required to provide for more
    robust mechanical systems, which in turn, required some structural
    changes. Increased on-site security also made delivery of materials
    more challenging.
        Most problematic was that at the height of our excavation process
    in January 2003, we endured the second wettest year on record for this
    region. It is very difficult to move heavy equipment in the mud, it is
    difficult to excavate, and the material becomes undesirable as backfill
    at other project sites. Further, crews cannot erect steel in the rain
    and they cannot weld, so structural work was also hampered. On top of
    the persistent wet weather, we lost several days due to heavy snowfall
    and several more days preparing, and then restoring the site, after
    Hurricane Isabel.
        Finally, we also experienced unforeseen conditions during the main
    excavation of the site. One example is the discovery of an old well
    approximately 40 feet below the original House wing, directly in the
    path of our perimeter wall. To clear the path for our perimeter wall,
    the large stones around the well had to be crushed and removed and a
    stable base for our perimeter wall had to be established. In short,
    what should have taken one week to place three perimeter wall panels in
    that location took close to eight weeks.
        Question. What are the biggest challenges ahead of you?
        Answer. Our most significant challenge is coordination between the
    Sequence 1 and Sequence 2 contractors. There remain more than 3,000
    project line items to be accomplished between the two contractors and
    these activities need to be closely coordinated and sequenced so that
    work can be accomplished efficiently and expeditiously.
        Also, there is still a potential for unforeseen site conditions
    related to excavation of the Library of Congress tunnel and our main
    utility tunnel down East Capitol Street, which could result in schedule
    delays. Other unknowns related to changes in scope, changes in the
    security environment (such as those that occurred after September 11),
    severe weather conditions, or other external factors could present
    further challenges.
        Question. Are you confident you will be able to complete the
    project within the funds appropriated to date?
        Answer. The CVC budget is very tight, but barring any significant
    unexpected site conditions, scope changes, or other unknown issues, we
    will continue to work diligently to stay within the available funding.
    Once the Sequence 2 contractor begins working on the site, this will be
    much easier to gauge. Until now, most Sequence 2 work has been
    preparatory in nature as the contractor waits for space to be turned
    over by the Sequence 1 contractor.
        Question. The western half of the plaza is to be sufficiently
    complete to support 2005 inaugural activities. Are you confident you
    will meet this critical milestone?
        Answer. Yes. The western half of the plaza from the large skylights
    to the face of the Capitol, from the House Steps to the Senate Steps,
    will have a completed roof deck covered by granite pavers. This portion
    of the plaza will be able to accommodate pedestrian and vehicular
    traffic, including the presidential motorcade, and if necessary,
    support the landing of Marine One. Presently, we are placing the top
    slab on the plaza on the north side of the roof deck and we expect to
    see stone masons placing the first of 200,000 granite paving stones in
    May.
        Since last year, the CVC project team has had discussions with
    Capitol Preservation Commission staff and senior staff of the Senate
    Rule Committee regarding the requirements and expectations for the
    January 2005 Inauguration ceremony.
        Question. You have recently changed the management team of the CVC.
    Can you explain how the new team will change the way the project is
    managed?
        Answer. I would characterize the recent personnel changes, in
    particular, the additions of Messrs. Bob Hixon and Gary Lee from GSA to
    the AOC, as well as the addition of a new construction manager by
    Gilbane, not so much as a change in management approach, but more as a
    strengthening of the management team with greater ``in-the-field''
    experience, made necessary by the intensive coordination efforts that
    are required to closely integrate the Sequence 1 and Sequence 2
    activity schedules.
        Bob Hixon has provided knowledgeable advice and assistance to me
    informally for several years while GSA has been actively working with
    the AOC on the procurement side of the CVC project. As Director of the
    Center for Construction and Project Management at GSA, Mr. Hixon has
    been responsible for GSA's Construction Excellence Program, bringing
    the highest possible standards of construction management to a
    portfolio of more than 160 projects worth more than $5 billion. Mr.
    Hixon joined the AOC effective March 7, 2004, and has assumed
    responsibility for the project. He has begun conducting an in-progress
    review of the construction management of the CVC, including
    recommending changes and best practices to be followed in the
    construction management area involving both the Sequence 1 and 2
    contracts.
        Question. You have requested 51 CVC-related staff in your budget
    request. Are all of these staff really needed in fiscal year 2005 if
    the facility will not open until 2006? Will any of the 16 FTE
    authorized for the current year be utilized?
        Answer. Many options related to the startup of the operations of
    the CVC are still being considered. These numbers are based on the best
    information available provided by the J.M. Zell Company, the operations
    startup contractor, working with the Capitol Preservation Commission.
    Once the decision regarding how and by whom the CVC will be operated,
    some refinements may be appropriate. The Capitol Preservation
    Commission requested that, in the interim, we submit this request in
    our budget.
        Ten of eleven currently authorized FTEs are working on project
    management and other directly related tasks for the CVC and one
    position is currently vacant. The remaining 5 FTEs are not being
    utilized in the current year. We have requested that the funding to
    support these FTEs be reprogrammed to fund other activities within the
    project.
                            capital improvement plan
        Question. Several years ago this Committee directed AOC to develop
    a master plan for the Capitol complex as the existing master plan is
    nearly 25 years old. What is the status of the master plan? What is
    your Capital Improvement Plan and how does it relate to the Master
    Plan? What are the most significant construction requirements we can
    expect will emerge from this planning process? Do you have any estimate
    of how much funding might be required for maintenance and repair
    projects over the next 5 years?
        Answer. In the fiscal year 2004 budget, $4.2 million was
    appropriated for the development of the Capitol Complex Master Plan. We
    have narrowed the list of prospective architectural engineering firms
    to four, and have conducted extensive interviews with these firms. A
    final selection is expected to be made in May, after which we will
    undertake a negotiation with that firm. Contract award and project
    kick-off are scheduled for July. The draft Master Plan will be ready
    for review by the Committees in 2006.
        The Capitol Complex Master Plan provides the umbrella provisions
    and guidance under which all project planning and land use will occur
    over the next 20 years, and therefore is a critical prerequisite to a
    fully functional Capital Improvements Plan (CIP). The Master Plan will
    identify major capital projects that are needed whereas our ongoing
    Condition Assessments focus exclusively on projects needed to maintain
    our existing facilities and include smaller projects falling below the
    Line Item Construction Program (LICP) threshold (currently $250,000).
    Together, they will be the basis for our future CIPs.
        The CIP describes how the Master Plan can be implemented through a
    series of achievable planning and programming steps. It presents an
    achievable Capital Plan by identifying the projects necessary to
    satisfy the goals and objectives of the Master Plan. The CIP implements
    the Master Plan in that all known and valid projects are evaluated
    against established criteria in the following five categories: Safety,
    [Physical] Security, Preservation, Impact on Mission, and Economics
    (Cost payback, savings). The inclusion of projects in future CIPs will
    be based on a more detailed development and analysis of projects'
    requirements, identification of prerequisites, development of
    appropriate sequencing, and establishment of priorities. This will be a
    principal basis for assignment of projects to a specific fiscal year
    LICP. As the Master Plan and the condition assessment are completed,
    subsequent CIPs are likely to reflect some changes in project
    identification.
        We are still in the process of developing our CIP. Until such time
    as our condition assessment and Capitol Complex Master Plan are
    completed, we will not be able to give the Committee a total list of
    projects nor a cost associated with these projects. However, based on
    the current draft CIP, the Dome restoration project, additional
    elevator modernization, the Fairchild and GPO build-out, high voltage
    switchgear, logistics warehouse facility, campus-wide roof repairs, and
    the Library's storage modules at Fort Meade and the Copyright Deposit
    Facility are among the list of significant construction projects for
    the next five years.
                             condition assessments
        Question. AOC planned to award building condition assessment (BCAs)
    contracts to assess the House and Senate Office buildings and the
    Capitol in 2003. Since these BCAs are an integral part of the Capitol
    Hill master plan (expected to be issued in April 2006), what is the
    current status of these BCA efforts?
        Answer. The Building Condition Assessment (BCA) contract for the
    Capitol, House and Senate Office Buildings was awarded on February 26,
    2004. BCAs are planned for other jurisdictions as well. The AOC will
    begin receiving information from the current BCAs in July 2004--in time
    to potentially include projects in the fiscal year 2006 LICP, if an
    urgent undertaking is needed. If not urgent, identified projects will
    be included in subsequent fiscal year LICPs, as appropriate. Completion
    of the BCAs for the House and Senate is scheduled for September 2004.
    Upon review, BCA information will be available to the Congress soon
    thereafter. The timing of the BCAs is such that they will appropriately
    feed into the Capitol Complex Master Plan.
                               project management
        Question. One of the major areas cited by the General Accounting
    Office as needing improvement within the AOC in its 2003 management
    review was project management. How is project management being handled
    differently today in an effort to deliver projects on time and within
    budget?
        Answer. Project management has instituted significant positive
    changes in the last year. These changes include: strengthening and
    modifying the perimeter security project team to increase its
    effectiveness; establishing project priorities; developing a simplified
    project summary reporting method that continues to be refined to assure
    it provides required information in a concise manner; conducting a
    workload analysis; holding staff meetings and monthly Planning,
    Coordination and Scheduling (PS&C) meetings to discuss relevant project
    issues and encourage teamwork. In addition, there has been an increased
    emphasis on use of established procedures, such as best practices. The
    roles of the Contractor Officer Technical Representative (COTR) and
    their interaction with project managers have been clarified, and there
    is greater cooperation between the Procurement, Architecture,
    Engineering and Construction Divisions due to increased management
    oversight. We have determined core competencies for project managers
    and we have developed contract modification management procedures.
                                customer service
        Question. AOC has identified improving customer service as an
    important goal. What strategies are being developed to become more
    responsive to customer complaints and improve building conditions and
    cleanliness?
        Answer. The Senate Superintendent's Office is implementing a number
    of initiatives to proactively address customer complaints and improve
    customer service. In the past year, we have initiated meetings with all
    Senate office managers and Committee chief clerks to provide
    information on the services provided by the Superintendents Office,
    project status, and points of contact for programs such as ergonomics
    and ADA issues, as well as personally address and resolve specific
    issues with clients. This effort has proved successful as the Senate
    Superintendents Office realized an 11 percent increase in pro-activity
    as seen in the annual Buildings Services Customer Satisfaction Survey.
        In addition, we have initiated our Annual Business Planning effort
    with a focus on client service, performance management, and bench
    marking. Through execution of the business plan our responsiveness
    rating increased 8 percent. While these initiatives have been
    productive, we continue to strive to improve our responsiveness to
    clients' needs. Current initiatives include the implementation of the
    Senate Superintendent's web site which provides a direct link to the
    Superintendent's Office, instant feedback on work order status, an on-
    line furniture catalog, building information alerts, and project status
    updates. Client surveys will be generated automatically and sent to
    clients upon completion of a work order to obtain instant feedback
    regarding quality and timeliness of service. This survey data will be
    analyzed and action plans developed to address common themes and bridge
    gaps in service.
        With regard to building cleanliness, the annual Buildings Services
    Customer Satisfaction Survey indicated a 13 percent increase in
    satisfaction with the cleanliness of Member suites. This is a direct
    result of the implementation of the quality assurance program which
    requires custodial staff to follow comprehensive cleaning checklists,
    integrates management quality inspections, and establishes clear lines
    of accountability. This year the program has been expanded to include
    the public restrooms and integrated into a performance based contract
    for cleaning and policing of public areas and restrooms. We also have
    intensified our focus on daily inspections of public areas and
    restrooms. Through this inspection process we quickly assign the
    resources necessary to address building ``hot spots.'' The Senate
    Superintendent's Office is currently analyzing the floor care program
    and researching best practices and modern equipment to provide world
    class maintenance for the various floor surfaces in the Senate Office
    Buildings.
        With regard to building conditions, the recent award of the
    Facility Conditions Assessment contract will provide a comprehensive
    assessment of the condition of buildings structures and systems, a 10-
    year prioritized plan to address deficiencies, and a complete inventory
    and bar coding of systems to complete our current Preventative
    Maintenance initiative. Use of this information will ensure the
    strategic care of the facilities and world class preventative
    maintenance resulting in improved building conditions and performance.
        Concurrent with our improvement initiatives, we are promoting a
    culture of customer service within our workforce through the use of
    implementation tools, best practices, accountability, and employee
    recognition.
                            management improvements
        Question. In order to improve management of the agency, the fiscal
    year 2003 legislative branch bill language was included establishing a
    Chief Operating Officer position, and requiring the development of a
    strategic plan. Now that AOC's strategic plan has been finalized by the
    agency's Chief Operating Officer and he has submitted an action plan as
    mandated, what changes can we expect to see in AOC's management
    approach and priorities? What milestones have been established to help
    the COO and AOC track progress in the development of its strategic
    management and accountability framework?
        Answer. The AOC is following the actions identified and published
    in its Annual Performance Plan and the COO Action Plan as the
    foundation for its organizational business priorities. Specific
    milestones are published as a part of the Annual Performance Plan and
    the COO Action Plan.
        The Strategic Plan is linked to more detailed, functional planning
    through the AOC Performance Plan. The Performance Plan outlines the
    specific actions and milestones planned to achieve our goals. In order
    to track progress implementing AOC's strategic initiatives, the COO has
    instituted a monthly management reporting requirement. To ensure that
    the Strategic Plan is a living document, the Senior Leadership Team
    uses the monthly reports to continually assess the Agency's strategic
    priorities and make adjustments as needed. The Architect, COO, and the
    Senior Leadership Team hosted its first quarterly management review of
    AOC's newly-published Strategic and Performance plans with the Agency's
    Management Council.
        Question. Performance measures are also important to help an agency
    manage its progress in achieving its goals, what is the status of the
    development of AOC's specific performance measures and how are they
    being used to manage the agency? Some areas that AOC designated in its
    strategic plan as performance measures to be developed are: client
    satisfaction, employee satisfaction, on-time projects, on-budget
    projects, project quality, facility maintenance, asset preservation,
    employee safety, clean audit, recycling, budget execution.
        Answer. While many of the jurisdictions track measures that are
    specific to their daily work, AOC does not currently have an Agency-
    wide approach to collecting and analyzing this data as it relates to
    the Strategic Plan. Over the course of the year, AOC will be developing
    a process for cascading the high-level measures identified in the
    Strategic Plan down and across the organization. Once that work is
    completed, AOC will develop a systematic approach to tracking results
    using the measures.
        Since 2002, the AOC has conducted an annual Building Services
    Customer Satisfaction Survey among occupants of the Capitol, the House
    and Senate Office buildings, and the Library of Congress buildings.
    Last year occupants of the U.S. Capitol Police Headquarters were also
    invited to participate. This year the scope will be expanded to include
    Supreme Court building occupants. Respondents are asked to indicate
    their satisfaction level regarding 61 areas that cover services
    provided by the AOC that range from the effectiveness of the Office of
    the Superintendent to the maintenance of sidewalks. Questionnaires are
    tailored to each jurisdiction so customers are asked only about
    services relevant to them. AOC jurisdictions integrate customer input
    in the annual business plans and use survey results to draw specific
    action plans. For 2004, the survey period is June 1-20.
        Jurisdictions have been implementing a web-based on-going customer
    satisfaction survey to assess customers' satisfaction with the on-
    demand work order process, from task request to work completion. This
    effort is now being implemented in the House and Senate jurisdictions.
    Other jurisdictions will follow as they establish websites.
        The AOC is assessing the satisfaction of its internal customers
    with provided services through focused surveys. The Architecture,
    Engineering, and Project Management Divisions and the Safety, Fire, and
    Environmental Programs Office have surveyed their internal customers,
    and are taking actions based on the results. The Human Resources
    Management Division will issue its survey next summer. Other AOC
    organizations will join this effort in a coordinated manner to ensure
    that action plans are drawn to respond to internal customers' input. We
    also will be conducting an AOC-wide employee focus group survey later
    this year.
        Question. In his action plan, the Chief Operating Officer (COO)
    states that he has established a Senior Leadership Team to help lead
    AOC's transformation and he also envisions a flatter organizational
    structure to facilitate decision making in a more timely manner. What
    have been the results of this new structure?
        Answer. A new organizational structure was proposed for Committee
    review as part of our fiscal year 2005 budget submission. We have been
    piloting the new structure and find it has streamlined decision making
    and more clearly delineates Senior Leadership lines of authority and
    responsibility. Unless directed otherwise, with the approval of the
    fiscal year 2005 budget, we will implement an organizational structure
    that will assist us in clarifying lines of supervision and
    communication throughout the AOC.
        Question. One of the Architect's and COO's priorities is improving
    communication with employees and stakeholders. What efforts are being
    made to communicate agency progress and project status with
    stakeholders? What is being done to obtain input from employees? How
    will this information be used to help better manage the agency?
        Answer. The Architect and the COO have been holding periodic
    meetings with stakeholders and have been meeting with employees as part
    of their daily business meetings or at special functions within the
    jurisdictions. We also have a number of employee workgroups and
    committees that provide program and operational information and input
    to Agency management. In addition, we are planning to complete an AOC
    employee survey later this year. The input from these sources assists
    management in the evaluation of Agency policies, programs, priorities
    and overall business operations. Employees also make valuable
    suggestions for changes/improvements in business processes and delivery
    of services.
        The AOC recognizes that communication is a powerful tool to affect
    change, educate, and empower employees by helping to deploy AOC's
    strategic goals throughout the organization.
        To effectively reach our audiences and develop the Agency's
    message, we have crafted a Communications Plan to establish regular
    processes, forums, and mechanisms for employee communication, which are
    aligned with efforts to obtain and respond to employee feedback and
    other outreach efforts to external audiences.
        Through the publication of the employee newsletter, ``Shop Talk'',
    and distribution of the electronic newsletter, ``AOC This Week'', and
    postings on the AOC Intranet site, messages are frequently communicated
    with employees regarding project status, program and policies changes,
    and safety messages.
        AOC uses a variety of creative vehicles to communicate internally
    since our employees work different shifts in many buildings across the
    Capitol complex, and not everyone has ready access to electronic tools
    such as e-mail and voicemail.
        Part of the communication loop is to receive feedback from
    employees. We are doing so by the use of surveys, town meetings, and
    focus groups regarding specific areas. For example, in January we
    conducted an Agency-wide survey asking employees about their
    perceptions, opinions, and attitudes about safety. The response rate to
    the survey was 62 percent when typically these surveys receive a 30
    percent response rate.
        This input is used to develop and enhance our safety communications
    efforts, identify deficiencies in training, and establish programs to
    reward employees for jobs well done.
        Externally, the AOC is stepping up efforts to communicate with
    Members of Congress, their staffs, community leaders, and visitors
    through a variety of vehicles. The strategy for communicating with
    these audiences involves the use of personal mailings; reports;
    briefings; testimony; press releases; stakeholder surveys, and
    meetings. In addition, a quarterly newsletter from the Architect to
    Members of Congress reporting on major projects has been developed.
        Methods for communicating with other external audiences such as the
    visiting public; dignitaries; Capitol Hill community; Federal
    government agencies; architects and engineers; historians; vendors; and
    the media include: postings/stories on the AOC Internet site--
    www.AOC.gov; public meetings; press releases; media interviews; news
    stories; speeches; Capitol seminars; targeted mailings; scholarly
    articles; trade shows; and small meetings.
        Question. Please describe the significant accomplishments to date
    completed as a result of AOC's three financial management action plans.
    What is the status of AOC's first financial statement audit? How is AOC
    leveraging the financial statement preparation and audit processes to
    improve financial control and accountability?
        Answer. We made significant strides in meeting each of our
    strategic financial management objectives. For example, we established
    an Audit Committee; we produced our first financial statements and
    initiated a Congressionally-mandated financial statement audit; and we
    compiled values for all Capitol Hill real property. We also completed
    our first external reporting via FACTS I and FACTS II; developed
    written accounting policies and procedures; improved our major
    consumable inventory process and measurement techniques; and
    streamlined critical accounting functions.
        According to John Webster, CFO of the Library of Congress (LOC) and
    an AOC Audit Committee member, the AOC accomplished in two years
    achievements that took the LOC seven years to accomplish.
        In 2003, we accomplished the following:
      --Drafted and implemented the Audit Committee charter and recruited
            highly-qualified and respected independent Audit Committee
            members.
      --Within two years of establishing an integrated trial balance, we
            produced full sets of comparative, OMB-compliant, financial
            statements and instituted year-end procedures to record all
            adjustments and accruals and closed within 10 days of the end
            of fiscal year 2003.
      --Wrote the Statement of Work and performed all necessary
            administrative functions to award a five-year audit contract of
            our first financial statement audit of AOC balance sheets.
      --Researched and resolved issue regarding ownership of Capitol Hill
            real property and directed massive effort to properly identify,
            classify, and value all AOC land, buildings, software,
            construction work-in-progress, and personal property.
      --Implemented fixed asset module by converting all manual property
            records into electronic asset tracking records and reconciling
            to manual data and developed written policies and procedures
            for capitalization of assets and construction work-in-progress.
      --Produced comprehensive written accounting policies and procedures
            for the first time and devised new accounting procedures to
            accommodate MIPR imputed funding and various reimbursable
            projects in accordance with appropriations law.
      --Managed a major effort to resolve long-outstanding Fund Balance
            with Treasury issues. The un-reconciled balance is now zero. We
            also installed new processes for accurately measuring and
            reporting liabilities on the AOC balance sheet never previously
            considered.
      --Completed 18 months of negotiations with OMB and Treasury regarding
            proper accounting treatment for the Thurgood Marshall Federal
            Judiciary Building and also obtained Auditor concurrence of the
            transactions and valuation.
      --Communicated regularly with GAO, GSA, OMB, and Treasury staff to
            improve AOC processes at every level.
      --Improved the accuracy rate of the AOC inventory from the 2002 rate
            of 54 percent to 83 percent for 2003. This represents a one
            year improvement of more than 50 percent.
      --During fiscal year 2003, no complaints were received, either
            internally or externally, and on average we processed and paid
            more than 1,000 invoices totaling more than $25 million per
            month, accurately and on time, in support of the AOC's mission.
      --Took decisive action to correct deficiencies in credit card
            processing and controls.
      --Issued AOC Funds Control Administration Order which establishes
            procedures to improve internal controls and integrated program
            planning, budgeting, and financial control processes. It places
            control of financial resources at appropriate management level
            and provides for documented Delegation of Authority down
            through the management chain to operating officials.
      --Produced internal fiscal guidance for budget execution establishing
            obligation goals.
      --Developed Agency tracking procedures for bill and report directives
            which establishes responsibility and monitoring, sets timelines
            for completion, and provides for quarterly status updates.
      --Hired Business Financial Analysts (BFAs) in several jurisdictions
            to provide hands-on financial direction and guidance in the
            field, as well as acting as a liaison between the AOC Budget
            Office and the jurisdiction.
        The AOC is undergoing its first financial audit. We expect to
    conclude the audit by June 30 and receive the auditor's opinion in
    July. This performance tracks with the experience of other agencies
    undergoing their first audit. The accomplishments listed are examples
    of how we leveraged the financial statement preparation and audit
    process to improve financial control and accountability.
        Question. GAO's January 2004 status report on AOC's implementation
    of management review recommendations states that the hiring of the
    first group of financial managers in AOC's various operating
    jurisdictions is underway. What benefits have resulted from these
    increases in staffing?
        Answer. Business Financial Analysts (BFAs) have been hired to
    provide day-to-day financial procedures, support, and advice for
    programs, projects, and activities at the jurisdictional level while
    supporting the Jurisdiction Account Holder's financial objectives. Some
    of the readily identifiable benefits that have resulted and that are in
    process include:
      --Produced a Zero Based Budget Review of Facilities Maintenance and
            personnel for the Senate and House Office Buildings that was
            included as a supplement to the fiscal year 2005 Budget
            Submission to Congress.
      --Working directly with the jurisdiction to develop and streamline
            procedures using best business practices to meet Agency
            obligation goals.
      --Provides guidance and advice on fiscal policy, procedures, and
            regulations to all levels of staff within the jurisdiction.
      --Establishing a method to accurately track and monitor FTEs
            including Construction Management project labor at the
            jurisdiction level.
      --Forecasting material and equipment expenditures against current
            budget amounts.
      --Closing out completed projects funded in prior years and preparing
            documents to move any remaining available funding.
      --Streamlining day-to-day procurement procedures at the jurisdiction
            level.
      --Tracking and documenting final invoices in order to monitor
            unliquidated obligations and deobligate funds that are no
            longer valid to enable execution of the funding for other
            purposes within the program as appropriate and within
            reprogramming guidelines.
      --Provides financial guidance to field personnel entering financial
            documents in the Financial Management System (FMS).
      --Developed a process in the jurisdiction to track funding
            reallotments within program groups or activities.
      --Designing a program to track reimbursable collections and spending
            at the Capitol Power Plant.
      --Comparing historical spending data to current spending to identify
            trends.
        Question. In its January 2004 status report, GAO indicates that the
    use of interim dates by AOC for monitoring progress on individual
    financial management action items would be beneficial because many
    completion dates are not scheduled until fiscal years 2006 and 2007.
    Has AOC begun to use interim dates for monitoring progress? If so,
    please provide examples.
        Answer. The financial management actions items have been updated to
    incorporate additional interim action items. The current CFO action
    items with status are provided for the record.

                   information technology project management
        Question. AOC had identified a software package that would produce
    a unified schedule and show staff resources that would allow it to
    better manage its projects. Has AOC obtained such a capability? If so
    how is it working?
        Answer. This software package has been received from the supplier
    and the workstation components have been loaded on 2 personal
    computers. The preparation of the work ``templates'' is currently being
    developed to tie the software to AOC processes for projects. The vendor
    representatives are scheduled to configure the server portion of the
    software along with assisting us in refining use practices/definitions.
                                 worker safety
        Question. Efforts to improve worker safety and create a world class
    occupational health and safety program will require full involvement
    and cooperation from jurisdictions--what steps has AOC taken to solicit
    buy-in from the jurisdictions and to hold jurisdictions accountable for
    their responsibilities in helping to transform AOC's occupational
    health and safety program? Besides injuries and illness rates, what
    other key measures are you using to assess your overall performance in
    moving towards a culture of safety at the AOC?
        Answer. The AOC has involved key jurisdiction personnel in
    developing safety policy requirements, identifying resource
    requirements, and establishing goals and planning documents. In
    addition, ad-hoc working groups comprised of central office safety
    staff and jurisdiction staff have been utilized to examine specific
    issues and develop recommended solutions.
        For each safety policy, a jurisdiction is assigned to serve as
    lead. As a policy is developed, central safety staff and the safety
    specialist from the lead jurisdiction provide input into the policy's
    requirements. The draft policy is then distributed to various central
    and jurisdictional personnel for review; this includes safety
    professionals, management, Jurisdiction Occupational Safety & Health
    Committee (JOSH) representatives, and union representatives. Each
    comment submitted is addressed and documented, with the final draft
    submitted to Senior Policy Committee for review and approval.
        The AOC has also drafted an Occupational Safety & Health Program
    Plan (OSHPP) to guide the Agency through the policy implementation
    process and undertake other safety-related initiatives. The initial
    goals and objectives were developed during a Senior Leadership Safety
    Workshop facilitated by DuPont Safety Resources. This was used as the
    framework for drafting the OSHPP. Further development of the OSHPP
    included a review and input process similar to the one followed for
    policy development.
        Ad-hoc working groups and steering teams have been used to focus on
    specific issues and provide recommendations to management. Some of the
    issues these groups have addressed include: assessing workload impacts
    of implementing and maintaining safety policies, reviewing safety
    training requirements, and developing a safety communications plan.
        Accountability for the jurisdictions begins with a clear
    delineation of responsibilities in each of the safety policies and the
    OSHPP. Software--such as the Facility Management Assistant (FMA) used
    to track safety inspection findings, and the Incident Analysis Module
    (IAM) used to investigate injuries--provides the AOC with tools to
    monitor progress on improving safety and providing feedback on
    performance. For individual employees, the AOC's Performance
    Communication and Evaluation System includes safety as one of the four
    performance evaluation criteria for non-supervisory employees, and as
    one of five criteria for supervisors and managers. In a similar manner,
    performance requirements for exempt personnel are addressed by the
    AOC's Performance Review Plan, which includes safety as one of five
    performance evaluation criteria.
        While injury and illness statistics have served as a key indicator
    of safety performance for the AOC--with our rate dropping from 17.90 in
    fiscal year 2000 to 7.91 in fiscal year 2003--it is not the only
    measurement used. The OSHPP establishes a number of performance
    milestones against which success is measured.
                             information technology
        Question. AOC has developed version 1 of its existing and target
    enterprise architectures and a transition plan to move the agency to
    the target. What steps is AOC taking to ensure that proposed systems
    and systems under development will be aligned with the agency's
    architecture?
        Answer. The AOC/OIRM Business Systems Modernization Office (BSMO)
    has established procedures to ensure that new IT proposals are aligned
    with the AOC's Enterprise Architecture (EA). All proposals for new
    technologies are presented in a business case format to BSMO for review
    and approval. No project can be initiated or funded without approval.
        For projects under development, BSMO periodically reviews them in
    the capacity of the Project Management Board to ensure they remain in
    alignment with the architecture as well as meet project milestones.
        BSMO operates under the guidelines of our Information Technology
    investment management process of which alignment with the EA is a
    critical piece.
        Annual reviews of the architecture are scheduled and releases of
    the baseline EA, target EA and sequencing plan follow such reviews.
    This is another way in which BSMO reviews systems in development and in
    operation and assesses their continued alignment with the AOC's target
    EA.
        Question. AOC contracted for a new information technology system
    life-cycle methodology, due for delivery on January 31, 2004, and
    planned a two-month pilot to refine the methodology for implementation
    as an agency-wide standard by March 31, 2004. Was the methodology
    delivered, and did AOC conduct the planned pilot? Has the methodology
    been implemented as an agency standard, and how many projects are now
    being managed using the new methodology?
        Answer. Systems Development Life Cycle (SDLC) guidelines and
    procedures were delivered on schedule on January 31, 2004. The
    methodology is aligned with the Capability Maturity Model Integrated
    (CMMI) as recommended by GAO in their latest audit findings. The SDLC
    guidelines address configuration management, risk management,
    requirements management, acquisition management, test management, and
    quality assurance throughout the life cycle of a project from inception
    to implementation.
        A pilot was conducted from February 1 to March 31, 2004, with
    projects for facilities management systems, web-based systems, hardware
    acquisitions, and information technology (IT) support systems. The
    guidelines were revised based on lessons learned during this pilot.
        The methodology was implemented on April 1, 2004, and the
    guidelines are now available Agency-wide on the AOC intranet. Quality
    Assurance oversight procedures are being implemented to ensure that
    projects are managed in accordance with these established guidelines.
    These procedures will include audits to determine if proper procedures
    are being used and supporting documentation is present, as well as
    document review, management systems review, systems monitoring, data
    analysis, and participation in the deployment of new and modified
    systems.
        Quality Assurance oversight procedures will determine the number of
    systems that are being managed using the new methodology. At this
    point, few projects other than the 10 that were piloted are currently
    using the methodology due to the brief time it has been available. This
    number is expected to increase over time to include all major projects
    within AOC as the methodology becomes institutionalized.
        Question. AOC's plans include revising its comprehensive
    information technology security plan by June 2004 and then implementing
    the plan's elements. Currently, AOC plans to contract for an
    independent security audit of AOC systems by September 30, 2004. In the
    interim, what steps has AOC taken or does it plan to take to ensure the
    security of the agency's systems is not being compromised?
        Answer. AOC's mission critical systems have already undergone two
    significant Information Technology Security audits. The first
    assessment was performed by a vendor contracted by AOC. They provided a
    ``pre-audit'' review to identify conditions within the AOC's
    information systems that would have resulted in findings during future
    compliancy audits. Forty-four findings resulted in the vendor's
    assessment. The vendor's findings were codified and incorporated into a
    risk mitigation plan.
        The second assessment was a financial audit, performed by a vendor
    contracted by the AOC Inspector General. The financial auditors
    reviewed AOC's current security posture to include people, processes,
    and technology, as well as the previous 44 findings. The financial
    audit resulted in 20 additional findings.
        OIRM developed a risk mitigation plan to address the 64 findings
    and any future findings. The 64 findings were incorporated into the
    Chief Information Security Officer's Plans of Action and Milestone
    schedule. The status of the Plans of Action and Milestone schedule is
    monitored by the OIRM Director. On a monthly basis, the Chief
    Information Security Officer and the OIRM Director report on the status
    to the Deputy Chief of Staff and the AOC Inspector General. To date, 93
    percent of the 44 findings from the first assessment have been
    mitigated. Of the 20 findings that resulted from the financial audit,
    50 percent have been mitigated. The Inspector General is seeking
    contractor support to independently verify and validate the work
    already performed to mitigate the 64 findings.
        The AOC is in the process of selecting a vendor for the purpose of
    performing a risk assessment on the applications currently in
    production. Where the previous risk assessments concentrated on IT
    infrastructure, policies, and processes, this third assessment will
    focus on mission critical and mission essential applications and
    databases. Any findings that result from the next round of assessments
    will be incorporated into the Chief Information Security Officer's
    Plans of Action and Milestone program and the mitigation of the
    findings will be tracked accordingly.
        The net effect of the financial audit and the two risk assessments
    will place the AOC in a better position for the upcoming external audit
    in September 2004. It also ensures that the security of the Agency's
    systems are not compromised in the interim. We have a plan in place to
    identify risk and to effectively mitigate those risks in a determined
    and positive direction.

                             CONCLUSION OF HEARINGS

        Senator Campbell. Thank you for your testimony. I
    appreciate your being here.
        Mr. Hantman. Thank you.
        Senator Campbell. With that, the hearing is recessed.
        [Whereupon, at 11:55 a.m., Thursday, April 8, the hearings
    were concluded, and the subcommittee was recessed, to reconvene
    subject to the call of the Chair.]

           LIST OF WITNESSES, COMMUNICATIONS, AND PREPARED STATEMENTS

                                  ----------
                                                                       Page
    Billington, Hon. James H., The Librarian of Congress, Library of
      Congress.......................................................    47
        Prepared Statement of........................................    51

    Campbell, Senator Ben Nighthorse, U.S. Senator From Colorado:
        Opening Statements of......................1, 47, 81, 113, 135, 207
        Questions Submitted by........................28, 36, 109, 128, 226
    Campbell, Laura, Associate Librarian for Strategic Initiatives,
      Library of Congress............................................    47
    Cylke, Frank Kurt, Director, National Library Services for the
      Blind and Physically Handicapped, Library of Congress..........    47
    Czerwinski, Stanley J., Controller, General Accounting Office....     1

    Dey, Chris, Chief Financial Officer, Office of the Sergeant at
      Arms and Doorkeeper, U.S. Senate...............................    81
    Dodaro, Gene L., Chief Operating Officer, General Accounting
      Office.........................................................     1
    Durbin, Senator Richard J., U.S. Senator From Illinois:
        Prepared Statements of...................................18, 48, 82
        Questions Submitted by......................................76, 130
        Statement....................................................    82

    Gainer, Terrance W., Chief, U.S. Capitol Police, Capitol Police
      Board..........................................................   113
        Prepared Statement of........................................   118
        Statement of.................................................   115
    Glovinsky, Gary, Chief Financial Officer, Architect of the
      Capitol........................................................   207

    Hantman, Hon. Alan M., Architect of the Capitol, and Member,
      Capitol Police Board.........................................113, 207
        Prepared Statement of........................................   209
    Harper, Sallyanne, Chief Administrative Officer, General
      Accounting Office..............................................     1
    Hixon, Bob, Project Executive for the Capitol Visitor Center,
      Architect of the Capitol.......................................   207
    Holtz-Eakin, Douglas, Director, Congressional Budget Office......    41
        Prepared Statement of........................................    42

    James, Bruce R., Public Printer, Government Printing Office......    31
        Prepared Statement of........................................    32
        Summary Statement of.........................................    31
    Jenkins, Jo Ann C., Chief of Staff, Office of the Librarian,
      Library of Congress............................................    47
    Jones, Mary Suit, Assistant Secretary, Office of the Secretary,
      U.S. Senate....................................................   135

    Kennedy, Keith, Deputy Sergeant at Arms, Office of the Sergeant
      at Arms and Doorkeeper, U.S. Senate............................    81

    Levering, Mary, Acting Director, Integrated Support Services,
      Library of Congress............................................    47
    Livingood, W. Wilson, Chairman, Capitol Police Board.............   113
        Prepared Statement of........................................   114
        Statement of.................................................   113
    Lopez, Kenneth E., Director of Security, Library of Congress.....    47

    Marcum, Deanna, Associate Librarian for Library Services, Library
      of Congress....................................................    47
    McSeveney, Dick, Chief Operating Officer, Architect of the
      Capitol........................................................   207
    Medina, Rubens, Law Librarian, Library of Congress...............    47
    Mulhollan, Daniel P., Director, Congressional Research Service,
      Library of Congress............................................    47
        Prepared Statement of........................................    60
    Murphy, Kathryn B., Budget Officer, Office of the Chief Financial
      Officer, Library of Congress...................................    47

    Nichols, Marc, Inspector General, Government Printing Office.....    31

    Peters, Marybeth, Register of Copyrights, Library of Congress....    47
        Prepared Statement of........................................    63
    Pickle, Hon. William H., Sergeant at Arms, Office of the Sergeant
      at Arms and Doorkeeper, U.S. Senate, and Board Member, Capitol
      Police Board..................................................81, 113
        Prepared Statement of........................................    85
        Summary Statement of.........................................    83
    Poole, Amita, Chief of Staff, Architect of the Capitol...........   207

    Reynolds, Hon. Emily J., Secretary of the Senate, Office of the
      Secretary, U.S. Senate.........................................   135
        Opening Statement of.........................................   136
        Prepared Statement of........................................   140
    Robinson, Elizabeth, Deputy Director, Congressional Budget Office    41

    Scott, Donald L., Deputy Librarian of Congress, Library of
      Congress.......................................................    47
    Shedd, Steve, Chief Financial Officer, Government Printing Office    31
    Skvarla, Diane, Curator, Office of the Secretary, U.S. Senate....   135
    Stevens, Senator Ted, U.S. Senator From Alaska, Statement of.....    48
    Suarez, Hector, Chief Administrative Officer, Architect of the
      Capitol........................................................   207

    Turri, Bill, Deputy Public Printer and Chief Operating Officer,
      Government Printing Office.....................................    31

    Walker, David M., Comptroller General, General Accounting Office.     1
        Opening Remarks of...........................................     2
        Prepared Statement of........................................     3
    Webster, John D., Chief Financial Officer, Library of Congress...    47
    Wineman, Tim, Financial Clerk, Office of the Secretary, U.S.
      Senate.........................................................   135

                                 SUBJECT INDEX

                                  ----------

                            ARCHITECT OF THE CAPITOL

                                                                       Page
    Additional Committee Questions...................................   226
    Capital Improvement Plan.........................................   228
    Capitol:
        Building.....................................................   212
        Fence........................................................   225
        Power Plant..................................................   220
        Visitor Center (CVC)..................................208, 212, 226
            Cost to Complete.........................................   223
            Exhibits.................................................   224
            Landscaping..............................................   216
            Management...............................................   220
            Project Management.......................................   223
    Condition Assessments............................................   229
    Customer Service.................................................   229
    Dirksen Bathroom Remodeling......................................   222
    Employee Safety..................................................   211
    Fiscal Year 2004 Spending Levels.................................   219
    Fiscal Year 2005:
        Budget Summary...............................................   207
        Funding Reductions...........................................   216
    Human Capital....................................................   214
    Information Technology.........................................215, 239
        Project Management...........................................   239
    Management Improvements..........................................   230
    Project:
        Delivery.....................................................   213
        Descriptions.................................................   210
        Management...................................................   229
        Timelines....................................................   221
    Recycling........................................................   225
        Program......................................................   221
    Restaurant Operations............................................   223
    Retail Sales.....................................................   224
    Senate:
        Office Building Improvements.................................   211
        Recycling....................................................   225
        Restaurants................................................215, 224
    Senator Office Building Entrances................................   222
    Worker Safety..................................................220, 239

                              CAPITOL POLICE BOARD

    Additional Committee Questions...................................   128
    Budget Freeze....................................................   122
    Escape Hood Replacement..........................................   125
    Fairchild Building Lease.........................................   123
    Fence............................................................   126
    Firing Range.....................................................   123
    Hiring of Fiscal Year 2004 New Civilian Employees................   123
    LOC Police Merger................................................   124
        Meeting......................................................   113
    Mounted Horse Unit...............................................   124
    Overtime Hours...................................................   122
    Recruiting Officers..............................................   127
    Security Fence...................................................   121
    Staffing Justification...........................................   122
    Sworn Personnel Requested........................................   127
    Training Hours...................................................   124

                          CONGRESSIONAL BUDGET OFFICE

    Increased Productivity...........................................    44
    Overview of CBO's Request........................................    41
    Program Changes..................................................    44
    Retention of Employees...........................................    44
    Staffing in Difficult Areas......................................    43

                           GENERAL ACCOUNTING OFFICE

    Additional Committee Questions...................................    28
    Appendix I: Serving the Congress--GAO's Strategic Plan Framework.    15
    Appendix II: GAO Accomplishments That Helped Change Laws, Improve
      Services, or Promote Sound Management..........................    15
    Effect of Funding Freeze.........................................    21
    Federal Deficit..................................................    25
    Fiscal Year 2003 Performance and Results.........................     4
    GAO:
        Fiscal Year 2005 Request to Support the Congress.............    13
        Human Capital Flexibilities..................................    20
        Travel Patterns..............................................    21
    Maximizing GAO's Effectiveness, Responsiveness, and Value........    11
    Pay-for-Performance..............................................    19
    Rating Performance...............................................    19
    Return on Investment.............................................    27
    Source of Pay-for-Performance....................................    24
    Strategic Human Capital Management...............................    19
    Student Loan Repayments..........................................    27
    Tax Forgiveness of Student Loans.................................    28
    Technology Assessment............................................    23
    Training GAO Employees...........................................    20

                           GOVERNMENT PRINTING OFFICE

    Additional Committee Questions...................................    36
    Business-like Operations.........................................    35
    Investment Request...............................................    35

                              LIBRARY OF CONGRESS

    Acquisition and Preservation of Library Materials................    50
    Additional Committee Questions...................................    76
    Aging Workforce..................................................    70
    Collaboration With the Archives..................................    71
    Construction Impact on Security..................................    77
    Copyright:
        Deposit Facility.............................................    74
        Office.......................................................    55
    Cost Containment Efforts.........................................    61
    CRS:
        One-Time Financial Adjustment................................    80
        Science and Technology Capacities............................    78
        Staff Capacity...............................................54, 71
    Digital Talking Book Machine.....................................    55
    Embassy Construction--Budgetary Impact...........................    75
    Fiscal Year 2003:
        Accomplishments..............................................    53
        Highlights in CRS Legislative Support........................    61
    Fiscal Year 2005:
        Budget Request...............................................62, 65
        Offsetting Collections Authority Request.....................    67
    Flexible:
        Hiring Tools.................................................    50
        Workforce....................................................    71
    Fort Meade Projects..............................................    50
    Funding Priorities and Challenges................................    69
    GAO Review of Open World Leadership Program......................    68
    Human Capital....................................................    77
    Infrastructure Support...........................................    57
    Introduction of the Associate Librarian for Library Services.....    49
    Leased Space.....................................................    73
    Legislative Initiatives..........................................    58
    Library Buildings and Grounds....................................    58
        Budget Request...............................................    73
    Mass Deacidification.............................................    55
    Meeting Congressional Requirements...............................    63
    Meeting Uncontrollable Inflationary Increases for Essential
      Research Materials.............................................    63
    National Audiovisual Conservation Center (NAVCC).................    53
    National Film Preservation Program...............................    51
    NAVCC--Culpeper..................................................    50
        Donation.....................................................    72
    Open World Leadership Program....................................68, 78
    Opening Statement of the Librarian...............................    49
    Police:
        Force........................................................    77
        Merger.......................................................    50
    Preservation of:
        CRS Research Capacity........................................    62
        The Collections..............................................    75
    Retail Sales.....................................................    76
    Review of Copyright Office Work and Accomplishments..............    64
    Security.........................................................    55
    Sustaining the Collections.......................................    54
    The Library of Congress Today....................................    52
    21st Century Library.............................................    52
    Veterans History Project.........................................    55

                                  U.S. SENATE

                            Office of the Secretary

    Acquisition of Artifacts That Once Belonged to the Senate........   200
    Administrative Offices...........................................   170
    Capitol Visitor Center.........................................142, 202
        Operational Decisions........................................   203
    Continuity of Operations and Emergency Preparedness Planning.....   142
    COOP and COG Planning............................................   138
    Curatorial Advisory Board........................................   201
    Curtis Chair.....................................................   138
    Financial Management Information System..........................   136
    Financial Operations: Disbursing Office..........................   152
    Implementing Mandated Systems....................................   141
    Legislative:
        Information System...........................................   137
        Offices......................................................   143
    Maintaining and Improving Current and Historic Legislative,
      Financial and Administrative Services..........................   143
    Portrait of Margaret Chase smith.................................   138
    Presenting the Fiscal Year 2005 Budget Request...................   140
    Ricin Incident...................................................   201
    Senate:
        Historical Office............................................   138
        Library......................................................   138
        Preservation Fund and Curatorial Advisory Board..............   137
        Student Loan Program.........................................   203
        Web Site.....................................................   201
    Succession Planning and Cross-training...........................   139

                 Office of the Sergeant at Arms and Doorkeeper

    A Comprehensive Approach to Security and Preparedness............    86
    Additional Committee Questions...................................   109
    Effect of Budgetary Freeze.......................................   102
    Effects of Irradiation...........................................   104
    GAO Computer Security Review.....................................   106
    Information Technology...........................................    90
    Judiciary Committee Probe........................................   104
    Library of Congress Security.....................................   108
    New Mail Handling Protocols......................................   104
    New Telephone System.............................................   103
    Operational Support..............................................    94
    Security for Capitol Visitor Center..............................   108
    Senate Computing Technology......................................   107
    Staffing Levels..................................................   103
    Status of Warehouse..............................................   102

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