[Senate Hearing 110-809]
[From the U.S. Government Publishing Office]
S. Hrg. 110-809
NOMINATIONS OF THE 110TH CONGRESS
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON VETERANS' AFFAIRS
UNITED STATES SENATE
ONE HUNDRED TENTH CONGRESS
FIRST AND SECOND SESSIONS
__________
JUNE 27, SEPTEMBER 27, AND NOVEMBER 14, 2007, AND
JUNE 26 AND SEPTEMBER 17, 2008
__________
Printed for the use of the Committee on Veterans' Affairs
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COMMITTEE ON VETERANS' AFFAIRS
Daniel K. Akaka, Hawaii, Chairman
John D. Rockefeller IV, West Richard Burr,\1\ North Carolina,
Virginia Ranking Member
Patty Murray, Washington Arlen Specter, Pennsylvania
Barack Obama, Illinois Larry E. Craig, Idaho
Bernard Sanders, (I) Vermont Kay Bailey Hutchison, Texas
Sherrod Brown, Ohio John Ensign, Nevada
Jim Webb, Virginia Lindsey O. Graham, South Carolina
Jon Tester, Montana Johnny Isakson, Georgia
Roger F. Wicker,\2\ Mississippi
William E. Brew, Staff Director
Lupe Wissel, Republican Staff Director
----------
\1\ Hon. Richard Burr replaced Hon. Larry E. Craig as the Ranking
Member on September 11, 2007.
\2\ Hon. Roger F. Wicker was appointed to the Committee on January 24,
2008, replacing Hon. John Ensign.
C O N T E N T S
----------
June 27, 2007
Nomination of Charles L. Hopkins III to be Assistant Secretary, Office
of Operations, Security, and Preparedness (OSP), Department of Veterans
Affairs
SENATORS
Page
Akaka, Hon. Daniel K., Chairman, U.S. Senator from Hawaii........ 1
Craig, Hon. Larry E., Ranking Member, U.S. Senator from Idaho.... 2
Prepared statement........................................... 2
WITNESS
Hopkins, Charles L., III, Nominee to be Assistant Secretary,
Office of Operations, Security, and Preparedness (OSP),
Department of Veterans Affairs................................. 3
Prepared statement........................................... 5
Questionnaire for Presidential nominees...................... 8
Letter from the Office of Government Ethics.................. 14
Letter from the Department of Veterans Administration, Office
of General Counsel......................................... 14
----------
September 27, 2007
Nomination of Paul J. Hutter to be General Counsel of
the Department of Veterans Affairs
SENATORS
Akaka, Hon. Daniel K., Chairman, U.S. Senator from Hawaii........ 19
Burr, Hon. Richard, U.S. Senator from North Carolina............. 20
Murray, Hon. Patty, U.S. Senator from Washington................. 41
Prepared statement........................................... 41
Isakson, Hon. John, U.S. Senator from Georgia.................... 45
WITNESSES
Hutter, Paul J., Nominee for General Counsel of the Department of
Veterans Affairs............................................... 22
Prepared statement........................................... 23
Questionnaire for Presidential nominees...................... 24
Letter from the Office of Government Ethics.................. 30
Response to pre-hearing questions submitted by Hon. Daniel K.
Akaka...................................................... 30
Attachment............................................... 35
Response to post-hearing questions submitted by Hon. Daniel
K. Akaka................................................... 36
----------
November 14, 2007
Nomination of Michael W. Hager to be Assistant Secretary, Human
Resources and Management, Department of Veterans Affairs
SENATORS
Akaka, Hon. Daniel K., Chairman, U.S. Senator from Hawaii........ 49
Burr, Hon. Richard, Ranking Member, U.S. Senator from North
Carolina....................................................... 50
WITNESSES
Hager, Michael W., Nominee to be Assistant Secretary, Human
Resources and Management, U.S. Department of Veterans Affairs.. 52
Prepared statement........................................... 53
Questionnaire for Presidential nominees...................... 55
Letter from the Office of Government Ethics.................. 60
Letter from the Department of Veterans Administration, Office
of General Counsel......................................... 60
Response to written questions submitted by Hon. Daniel K.
Akaka...................................................... 61
----------
June 26, 2008
Nomination of Christine Hill to be Assistant Secretary
of Veterans Affairs (Congressional Affairs)
SENATORS
Akaka, Hon. Daniel K., Chairman, U.S. Senator from Hawaii........ 69
Burr, Hon. Richard, Ranking Member, U.S. Senator from North
Carolina....................................................... 71
Isakson, Hon. Johnny, U.S. Senator from Georgia.................. 82
WITNESSES
Dole, Hon. Elizabeth, U.S. Senator from North Carolina........... 69
Hill, Christine O., Nominee for Assistant Secretary,
Congressional and Legislative Affairs, Department of Veterans'
Affairs........................................................ 71
Prepared statement........................................... 73
Questionnaire for Presidential nominees...................... 74
Letter from the Office of Government Ethics.................. 80
September 17, 2008
Nomination of Patrick W. Dunne to be Under Secretary for Benefits of
the Department of Veterans Affairs
SENATORS
Akaka, Hon. Daniel K., Chairman, U.S. Senator from Hawaii........ 85
Burr, Hon. Richard, Ranking Member, U.S. Senator from North
Carolina....................................................... 86
Murray, Hon. Patty, U.S. Senator from Washington................. 88
Tester, Hon. Jon, U.S. Senator from Montana...................... 89
WITNESSES
Dunne, Hon. Patrick W., Nominee to be Under Secretary for
Benefits, Department of Veterans Affairs....................... 89
Prepared statement........................................... 90
Questionnaire for Presidential nominees...................... 92
Letter from the Office of Government Ethics.................. 98
Response to written questions submitted by:
Hon. Daniel K. Akaka....................................... 98
Hon. Bernard Sanders....................................... 104
NOMINATION OF CHARLES L. HOPKINS III, TO BE ASSISTANT SECRETARY, OFFICE
OF
OPERATIONS, SECURITY, AND PREPAREDNESS (OSP), DEPARTMENT OF VETERANS
AFFAIRS
----------
WEDNESDAY, JUNE 27, 2007
U.S. Senate,
Committee on Veterans' Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 10:59 a.m., in
room 562, Dirksen Senate Office Building, Hon. Daniel K. Akaka,
Chairman of the Committee, presiding.
Present: Senators Akaka and Craig.
OPENING STATEMENT OF HON. DANIEL K. AKAKA, CHAIRMAN,
U.S. SENATOR FROM HAWAII
Chairman Akaka. Good morning. This hearing will come to
order.
The Committee is here today to consider the nomination of
Charles L. Hopkins III, to be VA's Assistant Secretary for
Operations, Security, and Preparedness. I am pleased to welcome
Mr. Hopkins and his family. As we say in Hawaii, welcome to our
hearing.
Mr. Hopkins, if confirmed, you will be responsible for
coordinating the Department's emergency management,
preparedness, security, and law enforcement activities. This
new position within VA will impact on veterans on a daily basis
as you provide for the physical security of VA facilities, its
employees, veterans receiving care, and visitors. You also have
the important task of preparing and coordinating VA's response
to war, terrorism, natural security and natural disasters while
ensuring continuing service to our veterans.
With the threats that currently confront the Nation, I
remain concerned about VA's ability to support the National
Response Plan and serve as a Contingency Hospital System
Partner to the Department of Defense. Although this so-called
fourth mission is primarily a VHA responsibility by definition,
the Office of Operations, Security, and Preparedness will be
intimately involved in its coordination. I trust that you will
work with the appropriate offices within VHA to make this
process as efficient as possible.
If VA is to serve effectively as backup to the DOD health
care system and support communities following a domestic
terrorist incident or natural disaster, it must have detailed
plans that are properly resourced and regularly exercised.
Incidents or disasters of the magnitude which would bring the
VA's vast capabilities into play offer few second chances. As
we saw with the government's response to Hurricane Katrina,
there is no substitute for adequate planning, training, and
preparedness.
Your experience as Director of the Office of National
Security at FEMA combined with your prior emergency
preparedness background at other Federal agencies and your many
years of experience in military service suggest that you have
the qualifications for taking on the challenges of this new
office. Assuming you are confirmed, I urge you to work closely
with the three VA administrations and key staff offices to
develop workable and viable plans that will enable VA to
respond effectively to any emergency.
In closing, I note that the nominee has completed the
Committee questionnaire for Presidential nominees and responded
to my pre-hearing questions, all of which will appear in the
hearing record.
Chairman Akaka. Also included will be a letter from the
Office of Government Ethics acknowledging that he is in
compliance with laws and regulations governing conflicts of
interest.
Chairman Akaka. So I would like to now call on Senator
Craig for his statement.
STATEMENT OF HON. LARRY E. CRAIG, RANKING MEMBER,
U.S. SENATOR FROM IDAHO
Senator Craig. Mr. Chairman, thank you very much for
holding this hearing on a timely basis for the nomination of
Charles Hopkins. Let me also recognize in the room his wife,
Martha, and their family. We are appreciative that they would
also attend.
Mr. Chairman, you have outlined the obligations of the
office and the qualifications of the nominee. Clearly, Charles
is well qualified with a phenomenal lifetime of experience
dealing with the kinds of emergency preparedness issues facing
VA and has an understanding of how these situations are met
institutionally and in a timely fashion, so let me ask
unanimous consent that my full statement be a part of the
record.
Again, I would very much agree with you that he is highly
qualified for the position at hand. I am pleased that the
President has nominated him and will look forward to his
comments and response to questions. Thank you very much, Mr.
Chairman.
[The prepared statement of Senator Craig follows:]
Prepared Statement of Hon. Larry E. Craig, Ranking Member,
U.S. Senator from Idaho
Good morning Mr. Chairman. I want to thank you very much
for calling this hearing to review Mr. Charles Hopkins'
qualifications to serve as the VA's first Assistant Secretary
for Operations, Security, and Preparedness.
Before I begin, I would like to recognize those members of
Mr. Hopkins family that are in attendance. Specifically, his
wife, Martha--and their children.
Mr. Chairman, I'd like to say at the outset of this hearing
that based on a review of his record and having spent some time
with him personally, I believe Mr. Hopkins is very qualified
for this job. And I support his nomination.
Charles Hopkins is a veteran of the United States Navy and
has served his country for 29 years. Following his 29 years of
honorable and distinguished service, Mr. Hopkins was lured into
the private sector to share his experience, knowledge, and
leadership. This was to be a short-lived venture as he was in
the private sector for only 3\1/2\ years. It was his commitment
to public service and his incredible love for his country that
led him back to Federal service.
Mr. Hopkins' return to government service began as the
Director of Emergency Programs for the Department of the
Treasury. He served in this position for more than two years
before moving on to the Internal Revenue Service.
At the IRS, he held the position of Director of Emergency
Management Programs. He was responsible for all policy,
technical, and operational matters. He excelled in his position
and demonstrated knowledge, commitment, and ability. It was at
this point that Mr. Hopkins accepted his current position at
FEMA as Director of the Office of National Security
Coordination.
In his position at FEMA, he has worked diligently to ensure
common standards for agencies, continuity of operations, and
continuity of government.
I believe Mr. Hopkins' military background and his Federal
service make him the right man for this job. His breadth of
experience, commitment to the United States, and technical
expertise combine to make him very qualified to serve in this
new position.
Mr. Chairman, I hope the Committee will be able to move
swiftly on this confirmation. The VA must be prepared for any
emergency. After Katrina, we all learned how much a good
emergency plan means to our veterans and to our local
communities. This new office needs strong leadership and I
believe Charles Hopkins meets that criteria.
Thank you, again, Mr. Chairman, for holding this hearing.
Chairman Akaka. Thank you very much, Senator Craig. Your
full statement will be included in the record.
Mr. Hopkins, before I swear you in and you make your
opening statement, I note that you have a lovely family here
and I would like to take the time now to have you introduce the
members of your family.
Mr. Hopkins. Yes, sir. I would be delighted. With me today
is my wife of 37 years, Martha; my son-in-law Major Jano
Carlson, United States Marine Corps, a veteran of two
conflicts--one in Afghanistan and one in Iraq; his wife and my
lovely daughter Shelagh; a wonderful father and wonderful son,
my son, Chip (Charles IV), and his lovely wife, Traci; and my
lovely daughter, Shannon. I regret that my other son-in-law,
Bradly Duckworth, can't be with us today as he is a member of
the Navy Criminal Investigative Service, another service of our
great country, and he is currently serving in Iraq.
Chairman Akaka. Mr. Hopkins, will you please rise to take
the oath. Will you raise your right hand.
Do you solemnly swear that the testimony you are about to
give this Committee is the truth, the whole truth, and nothing
but the truth, so help you, God?
Mr. Hopkins. I do, sir.
Chairman Akaka. Thank you. Let the record note that the
witness responded in the affirmative.
Mr. Hopkins, will you please proceed with your statement.
STATEMENT OF CHARLES L. HOPKINS III, NOMINEE TO BE
ASSISTANT SECRETARY, OFFICE OF OPERATIONS, SECURITY, AND
PREPAREDNESS (OSP), DEPARTMENT OF VETERANS AFFAIRS
Mr. Hopkins. Mr. Chairman and Members of the Committee,
good morning. Thank you for the privilege and honor to appear
before you today. I am deeply honored and humbled by the
confidence President Bush has shown in nominating me to serve
as the Assistant Secretary for Operations, Security, and
Preparedness in the Department of Veterans Affairs. I am also
most grateful to Secretary Nicholson for his confidence in my
abilities to once again serve this great Nation.
For the past 37 years, it has been my privilege to serve
this great country in many capacities, and my dedication to the
United States military is marked by a history of service and
commitment. I spent 29 of those years in the United States
Navy. During my tours at sea on submarines and ashore in many
different home ports, I developed a deep respect and
appreciation for the personnel who serve in our Armed Forces
and their families. Time and again, they displayed the honor,
courage, and commitment that makes our Armed Forces the
greatest in the world. As time marches on, they too will become
veterans.
Personal sacrifice and devotion to duty is routine among
members of the military, so they deserve our unwavering support
both while wearing the uniform and when they transition into
the community of veterans. I am privileged to have this
opportunity to work with them and support the critically
important mission stated so many years ago by President
Lincoln, ``to care for him who shall have borne the battle and
for his widow and orphan.''
I have come full circle. I proudly wore the uniform for
many years, and now I have the opportunity to serve our great
veterans through continued public service.
So I am inspired by them to tackle the challenges of the
mission of the Department of Veterans Affairs and more
specifically the challenges that this new position offers. If
confirmed, I look forward to joining the team of professionals
at the Department of Veterans Affairs to accomplish that
mission.
As Assistant Secretary for Operations, Security, and
Preparedness, I am responsible for providing the advice and
counsel to the Secretary and other senior leaders on the
Department's capabilities and readiness to continue services to
veterans and their families and respond to contingency support
missions during national emergencies. I see this position as
the custodian of special trust that the Department has to
ensure our Nation's veterans and their families, visitors and
staff that serve them have secure and safe environments for the
care and service.
If confirmed, I will serve the veterans of this great
country with the same dedication and passion as when I served
on active duty and I will commit all my efforts to ensure that
the veterans are treated with the dignity and respect that they
rightfully deserve.
For the last 20 months, I have been the Director of the
Office of National Security Coordination, now known as National
Continuity Programs, at the Federal Emergency Management
Agency. This office is the lead agent for the executive branch
Continuity Programs. My responsibilities focused on formulating
guidance and establishing common standards for executive branch
departments and agencies to be used in developing viable and
executable continuity plans. I also facilitated interagency
coordination and I oversaw and assessed the status of
continuity capabilities for the executive branch departments
and agencies.
So I am very familiar with the work that must be
accomplished to form a new significantly expanded organization
and also to remedy any deficiencies that exist within the area
of operations, security, and preparedness. I am confident that
my experience in the United States Navy and my public work
since then has helped to hone the skills required to lead the
organization effectively and contribute to the successful
accomplishment of a wide variety of important tasks.
If confirmed, I would like to share with you the priorities
that I would pursue as the Assistant Secretary for Operations,
Security, and Preparedness. First, I will improve the ability
of our law enforcement officers to accommodate the needs of all
veterans, and more importantly, the special needs of veterans
returning from Operation Iraqi Freedom and Operation Enduring
Freedom.
Next, I will work closely with the Department's
administrations to protect veterans, their families, the
people, facilities, and infrastructure needed to deliver the
highest-quality care and services and ensure continuing
availability of that service. I will work diligently to ensure
the security of the people and information within the
Department and develop the plans, policies, and procedures to
provide for appropriate response and to rapidly reconstitute
Departmental operations after a national disaster or incident.
Next, while implementing the new Executive Order for
National Continuity Programs with our Federal partners and
stakeholders, I will strengthen the internal and external
command, control, and communications links and develop training
programs that will continually improve the Department's
operational and emergency management capabilities.
Finally, I will establish a robust evaluation mechanism to
regularly assess my Division's and the Department's performance
in each of our primary mission areas.
Mr. Chairman and Committee Members, I testify before you
today as a proud son of World War II veterans. Both my parents
rightfully earned a place on the team called ``the greatest
generation,'' a generation of amazing men and women who
understood the meaning of service to their country and whose
service and commitment saved this Nation and the world from
tyranny and oppression. It was my parents that instilled in me
the meaning of honor, courage, and commitment.
If confirmed, I intend to follow the great examples of my
parents' generation and serve our Nation's heroes with great
respect, humility, and passion. I am a humble man and I only
hope that I have instilled the same sense of purpose in my
family that my parents instilled in me.
In closing, I would like to say to my entire family that I
am now and will be forever grateful for your constant and
unwavering love and support. I thank you all for the great
support you have always provided in our journey of service to
our great Nation.
Thank you, sir. It is an honor to be here today. I am ready
to serve and I look forward to your questions.
[The prepared statement of Mr. Hopkins follows:]
Prepared Statement of Charles L. Hopkins III, Nominee to be Assistant
Secretary, Office of Operations, Security, and Preparedness (OSP),
Department of Veterans Affairs
Mr. Chairman and Members of the Committee, good morning. Thank you
for the privilege and honor to appear before you today. I am deeply
honored and humbled by the confidence President Bush has shown in
nominating me to serve as the Assistant Secretary for Operations,
Security, and Preparedness in the Department of Veterans Affairs. I am
also most grateful to Secretary Jim Nicholson for his confidence in my
abilities to once again serve this great Nation.
For the past 37 years it has been my privilege to serve this great
country in many capacities and my dedication to the United States
Military is marked by a history of service and commitment. I spent 29
of those years in the United States Navy. During my tours at sea on
submarines and ashore in many different home ports, I developed a deep
respect and appreciation for the personnel who serve in our Armed
Forces and their families. Time and again they displayed the Honor,
Courage and Commitment that makes our Armed Forces the greatest in the
world. As time marches on, they too will become Veterans.
Personal sacrifice and devotion to duty is routine among members of
the military so they deserve our unwavering support both while wearing
the uniform and when they transition into the community of veterans. I
am privileged to have this opportunity to work for them and support
that critically important mission stated many years ago by President
Lincoln: ``To care for him who shall have borne the battle and for his
widow and orphan.'' I have come full circle--I proudly wore the Navy
uniform for many years and now I have an opportunity to serve our
Nation's veterans through continued public service.
So I am inspired by them to tackle the challenges of the mission of
the Department of Veterans Affairs and more specifically, the
challenges that this new position offers. If confirmed, I look forward
to joining the team of professionals at the Department of Veterans
Affairs to accomplish that mission.
The Assistant Secretary for Operations, Security, and Preparedness
is responsible for providing advice and counsel to the Secretary and
other senior leaders on the Department's capabilities and readiness to
continue services to veterans and their families and respond to
contingency support missions during national emergencies. I see this
position as the custodian of special trust that the Department has to
ensure our Nation's veterans, their families, visitors and the staffs
that serve them, have secure and safe environments for care and
service. If confirmed, I will serve the veterans of this great country
with the same dedication and passion as when I served on active duty
and I will commit all my efforts to ensure that all veterans are
treated with the dignity and respect they rightfully deserve.
For the last 20 months, I have been the Director of the Office of
National Security Coordination (now known as National Continuity
Programs) at the Federal Emergency Management Agency. This office is
the Lead Agent for executive branch Continuity Programs. My
responsibilities focused on formulating guidance, and establishing
common standards for executive branch departments and agencies to use
in developing viable and executable continuity plans; facilitate
interagency coordination; and oversee and assess the status of
continuity capabilities of Federal executive branch departments and
agencies. So I am very familiar with all the work that must be
accomplished to form a new, significantly expanded, organization and to
also remedy any of the deficiencies that exist within the area of
operations, security, and preparedness. I am confident that my
experience in the United States Navy and my public work since then has
helped hone the skills required to lead the organization effectively
and contribute to the successful accomplishment of a wide variety of
important tasks.
If confirmed, I would like to share with you the priorities that I
would pursue as the Assistant Secretary for Operations, Security, and
Preparedness. First, I will improve the ability of our law enforcement
officers to accommodate the needs of all veterans and more importantly,
the special needs of veterans returning from Operation Iraqi Freedom
and Operation Enduring Freedom. Next, I will work closely with the
Department's Veterans Health Administration, Veterans Benefit
Administration and National Cemetery Administration to protect
veterans, their families, the people, facilities and infrastructure
needed to deliver the highest quality care and services and ensure
continuing availability of that service. I will work diligently to
ensure the security of people and information within the Department and
develop the plans, policies and procedures to provide for appropriate
response and to rapidly reconstitute departmental operations after a
national disaster or incident. Next, while implementing the new
Executive Order for National Continuity Programs (NSPD-5 1/HSPD-20)
with our Federal partners and stakeholders, I will strengthen the
internal and external command, control and communications links and
develop training programs that will continually improve the
Department's operational and emergency management capabilities.
Finally, I will establish a robust program evaluation mechanism to
regularly assess my divisions and the Department's performance in each
of our primary mission areas.
Mr. Chairman, I testify before you today as a proud son of a
veteran of World War II and a member of the Greatest Generation, a
generation of great men and women who understood the meaning of service
to their country. It was their service and commitment that saved this
Nation and the world from tyranny and oppression and it was my parents
that instilled in me the meaning of honor, commitment, courage and
service to our country. If confirmed, I intend to follow the great
examples of my parent's generation and serve our Nations' heroes with
great respect, humility and passion.
I am a humble man and I only hope that I have instilled the same
sense of purpose in my family that my parents instilled in me. Only
time will tell but today I am proud to introduce my family members that
have joined me for this hearing. First, and foremost, is my wife of 37
years Martha. Next, my son-in-law Major Jano Carlson USMC (a veteran of
Operation Enduring Freedom and Operation Iraqi Freedom), his wife and
my daughter Shelagh. Next, another son-in-law Special Agent Bradly
Duckworth, with the Navy Criminal Investigative Service, cannot be here
today as he is currently serving in Iraq; his wife Shannon and my
entire family prays for his speedy return. Next, is a wonderful man and
great father, my son Charles and his wife Traci.
In closing I would like to say to my entire family that I am now
and will be forever grateful for your constant and unwavering love and
support. I thank you all for the great support that you have always
provided in our journey of service to our great Nation.
Sir, it's truly an honor for me to be here today. I stand ready to
serve and look forward to your questions.
[The Committee questionnaire for Presidential nominees from
Mr. Hopkins follows:]
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
United States
Office of Government Ethics,
Washington, DC, April 13, 2007.
Hon. Daniel K. Akaka,
Chairman, Committee on Veterans' Affairs,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: In accordance with the Ethics in Government Act
of 1978, I enclose a copy of the financial disclosure report filed by
Charles L. Hopkins III, who has been nominated by President Bush for
the position of Assistant secretary for Operations, Preparedness,
Security and Law Enforcement, Department of Veterans Affairs.
We have reviewed the report and have also obtained advice from the
Department of Veterans Affairs concerning any possible conflict in
light of its functions and the nominee's proposed duties. Also enclosed
is a letter dated April 12, 2007, from the agency's ethics official,
outlining the steps Mr. Hopkins will take to avoid conflicts of
interest. Unless a specific date has been agreed to, the nominee must
fully comply within three months of his confirmation date with any
action he agreed to take in his ethics agreement.
Based thereon, we believe that Mr. Hopkins is in compliance with
applicable laws and regulations governing conflicts of interest.
Robert I. Cusick,
Director.
Enclosures.
______
Department of Veterans Affairs,
Office of the General Counsel,
Washington, DC, April 12, 2007.
Mr. Robert I. Cusick,
Director, Office of Government Ethics,
Suite 500, 1201 New York Avenue, NW.,
Washington, DC.
Dear Mr. Cusick: In accordance with section 2634.605(c) of title 5,
Code of Federal Regulations, I am forwarding the enclosed Public
Financial Disclosure Report (SF-278) of Charles Louis Hopkins III.
President Bush has nominated Mr. Hopkins to serve in the position of
Assistant Secretary for Operations, Security and Preparedness of the
Department of Veterans Affairs (VA). It is my opinion that Mr.
Hopkins's report is complete and discloses no unresolved conflicts of
interest under applicable law or regulation.
Mr. Hopkins has agreed pursuant to 18 U.S.C. Sec. 208(a) that he
will not participate personally and substantially in any particular
matter that has a direct and predictable effect on his financial
interests or those of any other person whose interests are imputed to
him, unless he first obtains a written waiver under section 208(b)(1),
or qualifies for a regulatory exemption under section 208(b)(2) and 5
CFR Sec. Sec. 2640.201-2640.203. Mr. Hopkins understands that the
interests of the following persons and entities are imputed to him: his
wife; minor children; general partner; any organization in which he
serves as an officer, director, trustee, general partner or employee;
and any person or organization with which he is negotiating, or has an
arrangement concerning, prospective employment.
Mr. Hopkins currently holds stock in General Electric and Johnson &
Johnson. Mr. Hopkins has agreed that he will divest himself of these
assets within 90 days of his confirmation. Further, pending his
divestiture of this stock, Mr. Hopkins has agreed not to participate
personally and substantially in any particular matters that will have a
direct and predictable effect on the financial interests of either of
these companies.
These assurances resolve any concern about real or apparent
conflicts of interest that may arise from Mr. Hopkins's report.
Therefore, I have certified and dated the report.
Sincerely yours,
Walter A. Hall,
Assistant General Counsel and
Designated Agency Ethics Official.
Chairman Akaka. Thank you very much for your statement, Mr.
Hopkins. We have some questions for you.
Mr. Hopkins. Yes, sir.
Chairman Akaka. My first question is dipping into your
background. What leadership lessons have you learned from your
over 30 years of military service and your 5 years of
government service? What leadership lessons have you learned
that will be of most use to you in this position?
Mr. Hopkins. It is easy. One word, sir, teamwork. No person
can do it alone. The areas that I have been responsible for
require an extensive amount of organization and teamwork, to
move the concepts, the plans, the policies and procedures to a
place where they need to be to support emergency management,
preparedness, and response and recovery. It is through
teamwork, the way I build the coherent, solid teams, and the
way we pull together, to move these programs forward. I have
enjoyed some great successes, both while on active duty and
certainly while at Treasury, IRS, and now FEMA.
Chairman Akaka. Senator Craig and I have now been serving
on this Committee and we have been moving and focusing on
trying to bring about what we are calling seamless transition
between DOD and VA. It is showing up as it is something that is
really needed at this time, and what you just mentioned fits in
that because we are looking at teamwork between DOD and VA to
serve those who served our country. So I am glad to hear your
response to that one.
In reading your impressive resume, I notice that although
you have years of experience in emergency preparedness and
management, you do not have much background in either law
enforcement or security. What do you view as the biggest
challenges of assuming responsibility for VA's police service
and Law Enforcement Training and Security Investigation Center?
Mr. Hopkins. Sir, my background in security and law
enforcement started when I was on active duty. My first job as
a commissioned officer was weapons officer on board a nuclear
submarine. The responsibility of the weapons officer was not
only the torpedoes and sometimes the nuclear weapons in his
charge, but also all the small arms, and for training the
security force if a situation arose.
Subsequent to that, my job at IRS was to develop a solid,
coherent, and consistent security team throughout all the 800-
plus
facilities throughout the IRS. I am proud to say that we had a
wonderful record both while I was active duty and while I was
at Internal Revenue Service.
But for this specific job, the importance of this job for
security and law enforcement is far-reaching. For all the VA
facilities, the first person that our returning veterans will
see--in many cases, the first person that they will see will be
a member of the security and law enforcement team, and we all
know, sir, you only get one chance to make a good first
impression; and we all know that some of the folks returning
from war have experienced some horrific things and the human
effects are far-reaching.
I want those experiences for those returning veterans that
are seeking help from the Department of Veterans Affairs, I
want that first impression to be a lasting and positive
impression, not only for the security and law enforcement team,
but, sir, they also represent the Department of Veterans
Affairs. I want that solid first impression for them when they
arrive.
Again, the key to success in anything you do is the
teamwork, consistent plans, consistent development of plans,
policies, and procedures, and also a consistent training
program, both an initial training program, boot camp, if you
will, and an annualized recurring training program. Sir, if I
am confirmed, one of the first things I will do is examine the
entire training program for the security and law enforcement
team, not only at the Law Enforcement Training Center, but the
annualized recurring training that they will experience
throughout the year. My intentions are to establish a constant,
consistent policy for the security and law enforcement team to
follow throughout all the VA facilities and be that positive
first welcoming experience for all veterans and their families.
Chairman Akaka. Thank you for your response.
Senator Craig?
Senator Craig. Mr. Chairman, many of your questions are
those that I would have asked because I was curious regarding
the relation to the ability of law enforcement officers to
accommodate the needs of all veterans and especially the needs
of veterans returning from OIF/OEF. So I will not pursue that
any further.
Let me ask this question, because obviously, if confirmed,
you will serve as the first VA Assistant Secretary for
Operations, Security, and Preparedness. How will you go about
bringing the various offices under your authority together? I
understand teamwork, but you are going to be in the process of
creating a team----
Mr. Hopkins. Sir, the unity of a team----
Senator Craig [continuing]. From slightly diverse cultures
under the same roof. How will you coordinate their efforts and
bring them together?
Mr. Hopkins. Sir, I have had an opportunity to talk to the
current Assistant Secretary for Plans and Policies who
currently is responsible for many of the areas that I would be
responsible for, if confirmed. He has assured me that he has
prepared a plan for turning over the watch, if you will. He is
very anxious for me to get confirmed and take the helm.
But having talked with him, I recognized that there is a
common thread amongst my primary mission-responsible areas
within the Office of Operations, Security, and Preparedness.
Those common threads need to be pulled together. Those folks
need to develop the solid teamwork. We need to understand where
the common areas are that we would operate and how we would
move forward as a team.
I also recognize that these teams--these individual offices
and their mission--there is a common thread through all the
core competencies throughout the Department of Veterans
Affairs. It is my intent, once I am confirmed, to review all
the plans, policies, and procedures and compare them with the
requirements that the Department of Veterans Affairs has
established, find out where the gaps are, perform a gap
analysis, and put a plan of action and milestones in effect to
close those gaps; to provide the services that the veterans,
their families, and the three administrations expect from an
office that I would be responsible for.
Senator Craig. Thank you very much.
Mr. Chairman, I don't believe I have any further questions.
Chairman Akaka. Thank you very much, Senator Craig.
I want to tell you that we feel so fortunate that you are
being considered for this and look forward to your being
confirmed. For me, we will try to move this as quickly as we
can----
Mr. Hopkins. Thank you, sir.
Chairman Akaka [continuing]. After the Committee votes on
this.
Do you have any further comments, Senator Craig?
Senator Craig. I don't, Mr. Chairman. And again, let me
thank you for the timeliness of this and moving this nominee
expeditiously. We need to get him on the job.
Thank you.
Chairman Akaka. Well, thank you again, Mr. Hopkins, and
your family. We are delighted that all of you were able to be
here. Again, I want to wish you well. We need all the help we
can get to help our veterans.
Mr. Hopkins. Yes, sir.
Chairman Akaka. Thank you very much.
Mr. Hopkins. Thank you, sir. I am proud to serve.
Chairman Akaka. The Committee is adjourned.
[Whereupon, at 11:22 a.m., the Committee was adjourned.]
HEARING ON THE NOMINATION OF PAUL J. HUTTER TO BE GENERAL COUNSEL OF
THE DEPARTMENT OF VETERANS AFFAIRS
----------
THURSDAY, SEPTEMBER 27, 2007
U.S. Senate,
Committee on Veterans' Affair,
Washington, DC.
The Committee met, pursuant to notice, at 9:24 a.m., in
room 562, Dirksen Senate Office Building, Hon. Daniel K. Akaka,
Chairman of the Committee, presiding.
Present: Senators Akaka, Murray, Burr, and Isakson.
OPENING STATEMENT OF HON. DANIEL K. AKAKA, CHAIRMAN, U.S.
SENATOR FROM HAWAII
Chairman Akaka. Aloha and good morning to everyone. The
Committee will come to order.
The Committee is here to consider the nomination of Paul J.
Hutter to be VA's General Counsel. I am pleased to welcome Mr.
Hutter and his family here today. Mr. Hutter, if confirmed,
will be the Department's chief legal officer with very wide-
ranging and challenging responsibilities.
I also want to say that I am happy to have our Ranking
Member here, Senator Burr. I look forward to working closely
together to help our Nation's veterans.
Among those responsibilities is the need to ensure the
effective implementation throughout the VA of all new
legislation, as well as decisions from the U.S. Court of
Appeals for Veterans Claims, and the U.S. Court of Appeals for
the Federal Circuit; and those will be, of course, challenging
responsibilities for you, Mr. Hutter.
As I am sure you know, VA is frequently criticized for
failing to disseminate new law throughout all levels of the
Department, to include front-line adjudications. It will be
very important for you to work with the Under Secretary for
Benefits and the Chairman of the Board of Veterans Appeals to
develop a cohesive approach to interpreting court decisions and
updating the guidance issued to the field.
I also look to you to define the role you believe the
General Counsel plays in evaluating legislation, both
introduced by Congress and proposed by VA for its legal
sufficiency and its impact. While the various programs can
provide incredibly valuable information on the intent,
background, or implementation of a particular bill, it is vital
for the General Counsel to provide an expert analysis on the
legal implications.
Related to the issue of the General Counsel's review of
program policy initiatives and legislation is the role of the
local Regional Counsels and their interaction with program
personnel in the field. The General Counsel must send a clear
message to the Regional Counsels that they must work with and
support field program personnel. I urge you, Mr. Hutter, to
ensure that all Regional Counsels adopt a full proactive type
of interaction that will prevent problems and forestall
litigation, rather than only getting involved after lawsuits
are filed.
The VA General Counsel also must play a very important role
in advising the Secretary and Deputy Secretary as they deal
with the many challenges that VA faces in providing timely,
quality health care, timely and accurate adjudication of
claims, and a lasting place of honor for our veterans. Assuming
you are confirmed, I urge you to work closely with three VA
Administrations and key staff offices to develop workable and
viable plans that will enable VA to respond effectively to any
emergency.
Your many years of military service and your sense of
experience in the Office of General Counsel and the supportive
family that you have suggests that you have the qualifications
for taking on the challenges of the Office of General Counsel.
I plan to have the Committee act on your nomination as soon as
feasible.
Thank you so much for being here this morning and I would
like to call on Senator Burr for his remarks.
STATEMENT OF HON. RICHARD BURR, RANKING MEMBER,
U.S. SENATOR FROM NORTH CAROLINA
Senator Burr. Aloha, Mr. Chairman.
Chairman Akaka. Aloha.
Senator Burr. I thank you for holding this hearing. Let me
say at the start, Mr. Chairman, you have taken a fair,
straightforward, bipartisan approach to holding hearings on the
President's nominations, and more importantly, you have shown a
willingness to move those nominations forward and fill
important senior positions in the Department of Veterans
Affairs. So, I just want to publicly thank you and encourage
you, as you just stated, to expedite this nomination because,
as you and I both know, we are going to be dealing with some
other ones. And the faster we can clear our plate, the more we
can focus on those.
Next to the Secretary and the Deputy Secretary, there is no
one else at the Department of Veterans Affairs whose job
touches all aspects and operations of the VA like the General
Counsel. I met Mr. Hutter earlier this month. I found him to be
engaging and enthusiastic about this important job and I take
great pleasure in giving his nomination my endorsement today.
Mr. Hutter has not only built a career around serving
veterans, Mr. Chairman, he is a veteran himself--having served
30 years in the Judge Advocate General Corps, achieving the
rank of Colonel. He has two sons who are currently aviators in
the Navy. Maybe one of them is here?
Mr. Hutter. Yes, sir.
Senator Burr. Thank you for your service.
Paul also worked in the private sector before being hired
in 1992 at the VA. He has served as Acting Assistant Secretary
for Policy, Planning, and Preparedness, Assistant General
Counsel for Management Operations, and of course now as Acting
General Counsel. Clearly, he is well qualified for the
position.
In many ways, Mr. Chairman, Paul is not as much being
nominated for a new job as he is being promoted from within
based upon the merits of his performance at other levels in the
VA organization. You know, it is kind of nice to see a person
come up through the ranks every once in a while and this is
certainly one who has earned the nomination today.
Paul, I look forward to your testimony. More importantly,
I, as the Chairman stated, look extremely forward to an
expedited process where this nomination can be taken to the
Senate floor and out of this Committee.
I thank the Chair.
Chairman Akaka. Thank you very much, Senator Burr.
I will shift gears so as to introduce the nominee to the
Committee. I am delighted to note that Mr. Hutter has many ties
to Hawaii. As you mentioned, Senator Burr, this family is a
military family--not only Army, but now the Navy.
Senator Burr. It makes for some interesting football games.
[Laughter.]
Chairman Akaka. Mr. Hutter was born in Tripler Army
Hospital in Honolulu while his father was stationed at
Schofield Barracks. His dad served in World War II and in Korea
and Vietnam, as well. Mr. Hutter attended high school in Hawaii
and graduated from Punahou School in 1972.
After college, he returned to Hawaii in 1976 where he also
was stationed at Schofield Barracks. In the late 1980's,
following the end of his Army service, Mr. Hutter again
returned to Hawaii, where he practiced law until he joined the
Department of Veterans Affairs in 1992.
While your nomination form may say you are from Virginia,
with that background, I think Hawaii has a claim there also.
Mr. Hutter joined VA's Office of General Counsel in 1992
after his retirement from a long career of military service,
first as an infantry officer and then, following graduation
from law school, as a member of the Judge Advocate's General
Corps. He has served as Acting General Counsel since August of
last year.
Mr. Hutter's wife, Mary, their son, Ian, and Mr. Hutter's
parents, Dean and Helen, are here with us for this very special
event.
I want to thank you again and say mahalo nui loa for coming
before us today, Mr. Hutter. To the Hutter family, as we say in
Hawaii, E komo mai, or welcome to our hearing.
And now as is the rule here, I will now administer the oath
to you that all nominees take during their confirmation
hearing, and we will then be ready to hear your statement. So,
will you please rise and take the oath.
Do you solemnly swear that the testimony you are about to
give the Veterans' Affairs Committee, as well as other
information submitted to the Committee, will be the truth, the
whole truth, and nothing but the truth, so help you God?
Mr. Hutter. I do.
Chairman Akaka. Let the record show that the witness did
answer in the affirmative.
Mr. Hutter, will you please begin with your statement.
STATEMENT OF PAUL J. HUTTER, NOMINATED TO BE GENERAL COUNSEL,
U.S. DEPARTMENT OF VETERANS AFFAIRS
Mr. Hutter. Mahalo, Mr. Chairman, Senator Burr, good
morning. Thank you for the opportunity to testify today. I am
honored and humbled to be nominated by President Bush to serve
as General Counsel at the Department of Veterans Affairs. I am
also most grateful to Secretary Jim Nicholson and Deputy
Secretary Gordon Mansfield for their confidence in me.
Mr. Chairman, service to veterans is the cornerstone of our
practice in the Office of General Counsel. We do not often have
the privilege, however, of direct interaction with veterans,
but realize every day that our legal advice has an impact on
the service that our administrations and staff offices provide
to our beneficiaries. We work hard to ensure that our advice
provides every possible advantage to our veterans.
During the past 15 years, it has been my honor to serve in
VA's Office of General Counsel as appellate attorney (staff
attorney), and in leadership positions in the field and at the
headquarters. In addition, I served for 30 years in the United
States Army and the Army Reserve as, as you have said, an
Infantry Officer and Judge Advocate. As a Judge Advocate, I
supervised lawyers in the capacity of a staff officer (staff
judge advocate), and as a commander.
As you have alluded, and so kindly, Mr. Chairman, I am
privileged to be the son of a career infantry officer and
veteran of World War II, Korea, and Vietnam. I am also proud
that two of my three sons are currently serving as Naval
aviators, as you alluded to, Senator, one flying helicopters in
San Diego and the other navigating F/A 18s in Oceana.
As the result of my family's service in the military and my
experience in the Army and the Department of Veterans Affairs,
I have developed a deep respect for the personnel who serve in
our Armed Forces and their families. Time and time again, they
display the honor, courage, and commitment that make our Armed
Forces the greatest in the world. As time marches on, they,
too, will become veterans and I am inspired by them to continue
to tackle the challenges of the mission of the Department of
Veterans Affairs, to care for him who shall have borne the
battle, and for his widow and orphan.
If confirmed, I look forward to continuing my work with the
team of professionals at the Department of Veterans Affairs to
accomplish that mission. I am confident that my legal and
leadership experience has given me the skills to lead, advise,
and contribute effectively.
I continue to learn and act on the many issues that are of
concern to our veterans. The General Counsel provides advice
and counsel to the Deputy Secretary, the Secretary, and other
senior leaders concerning all matters--legal matters--involving
the Department. The General Counsel also ensures the quality,
timeliness, and accuracy of VA's legal staff in the field.
If confirmed, I will continue to work these issues facing
the Department and give my very best effort to diligently and
faithfully advise the Deputy Secretary and the Secretary.
Again, I am very proud to have my parents, Dean and Helen,
my wife, Mary, my son, Ian, here. I am very grateful for their
constant support and love.
Thank you again, Mr. Chairman and Members of the Committee,
for your consideration of my nomination. I would be happy to
answer any questions you may have, and I would ask that this
statement be entered into the record.
[The prepared statement of Mr. Hutter follows:]
Prepared Statement of Paul J. Hutter, Nominee for General Counsel,
Department of Veterans Affairs
Mr. Chairman, Senator Burr, and Members of the Committee, good
morning. Thank you for the opportunity to testify today. I am honored
and humbled to be nominated by President Bush to serve as General
Counsel at the Department of Veterans Affairs. I am also most grateful
to Secretary Jim Nicholson for his confidence in me.
Service to veterans is the cornerstone of our practice in the
Office of General Counsel. We do not often have the privilege of direct
interaction with our veterans, but realize that our legal advice has an
impact on the service that our clients provide. We work hard to ensure
that our advice provides every possible advantage to our veteran
beneficiaries.
During the past 15 years, it has been my honor to serve in VA's
Office of General Counsel as appellate attorney, staff attorney and in
leadership positions in the field and at the headquarters. In addition,
I served for 30 years in the United States Army and the Army Reserve as
an Infantry Officer and Judge Advocate. As a Judge Advocate, I
supervised lawyers in the capacity of staff officer and commander.
I am privileged to be the son of a career infantry officer and
veteran of World War II, Korea and Vietnam. I am also proud that two of
my three sons are currently serving as Naval Aviators--one flying
helicopters and the other navigating F/A 18s.
As the result of my family's service in the military, and my
experience in the Army and the Department of Veterans Affairs, I have
developed a deep respect and appreciation for the personnel who serve
in our Armed Forces--and their families. Time and again they displayed
the honor, courage and commitment that make our Armed Forces the
greatest in the world. As time marches on, they too will become
veterans.
I am inspired by them to continue to tackle the challenges of the
mission of the Department of Veterans' Affairs--``To care for him who
shall have borne the battle and for his widow and orphan.'' If
confirmed, I look forward to continuing my work with the team of
professionals at the Department of Veterans Affairs to accomplish that
mission. I am confident my legal and leadership experience has given me
the skills to lead, advise and contribute effectively.
I continue to learn and act on the many issues that are of concern
to our veterans. The General Counsel provides advice and counsel to the
Deputy Secretary, the Secretary and other senior leaders concerning all
legal matters involving the Department. The GC also ensures the
quality, timeliness and accuracy of the work of VA's legal staff in the
field. If confirmed, I will continue to work the issues facing the
Department and give my very best effort to diligently and faithfully
advise the Secretary and Deputy Secretary.
With me today are my wife, Mary; my parents, Dean and Helen; and my
son, Ian. I am very grateful for their constant love and support.
Thank you again, Mr. Chairman and Members of the Committee, for
your consideration of my nomination. I would be happy to answer any
questions you may have.
[The Committee questionnaire for Presidential nominees from
Mr. Hutter follows:]
[A letter from the Office of Government Ethics follows:]
------
Response to Pre-Hearing Questions Submitted by Hon. Daniel K. Akaka to
Paul J. Hutter, Nominee for General Counsel, Department of Veterans
Affairs
Question 1. What are your overall goals for the Office of General
Counsel (OGC) should you be confirmed?
Response. My goal is to make the Office of General Counsel into a
``force multiplier'' that avoids and solves problems in the Department,
and provides the guidance and representation necessary to allow our
employees to effectively and lawfully carry out their missions. Each of
our lawyers must understand our clients' business lines well enough to
provide intelligent and creative support for ongoing business needs and
new projects. We must overcome issues in partnership with our clients
at all levels of the Department.
Accompanying my response to this question is a one-page outline
that more clearly identifies my vision for the Office of General
Counsel and the overarching requirements to meet that vision. The
elements of that vision statement include:
Proactivity--engaging issues as early as possible to avoid
more difficult legal consequences as projects develop;
National presence--our clients and stakeholders must know
where we are, how to reach us and what we can do for them throughout
the country, in Puerto Rico and throughout the Pacific Rim.
Unity--the substance, quality and timeliness of the advice
and representation we provide is consistent, nationwide.
I have drafted a strategic plan for the Office of General Counsel
that amplifies these principles. The intent of the plan is to look out
10 years, align our practice with the Department's strategic plan and
priorities, and adjust the organization to meet those requirements. I
have sent this draft to my managers throughout the country and will
publish the plan in November.
As an example--and consistent with Departmental requirements--we
have trained additional lawyers to address contracting issues across
the Department--to ensure legal support for headquarters and field
organizations in each of the Administrations. This is consistent with
our goal to solve legal issues at the earliest possible time and at the
location closest to our clients.
Question 2. What are the present size, makeup, and organization of
OGC? If confirmed, do you anticipate making any changes in the overall
organizational structure, either in the Central Office or in the field?
Response. OGC nationwide is currently comprised of 677 ``full-time-
equivalent employees'' (FTEE) of whom 402 are attorneys. 266 of these
677 employees are in OGC headquarters (VA Central Office) and 411 are
in our 22 field offices (Offices of Regional Counsel).
As the attached organizational chart shows, a single Deputy General
Counsel reports to the General Counsel. Seven Assistant General
Counsels, each of whom leads a professional staff (Professional Staff
Group or ``PSG''), report through the Deputy to the General Counsel.
Our 22 Regional Counsels report through the Assistant General Counsel
for PSG VI to the Deputy General Counsel and General Counsel.
One of the PSGs (VI) has nationwide office management-and-
operations responsibilities and each of the other PSGs specializes in
the many different specialties of VA legal practice.
This relatively flat organizational structure has proven effective.
I remain convinced it affords an appropriate span of control for
organizational managers, and our annual surveys continue to indicate
high levels of client satisfaction with our services. Accordingly, our
offices effectively balance the need for centralized guidance with that
of providing timely, proactive service to our clients throughout the
country.
Question 3. What is the relationship between OGC and the Secretary,
other top staff officials, and the heads of the administrations? Do you
see the General Counsel as having an active role in helping these
various officials craft appropriate policy and carry out their
responsibilities or do you see OGC as a resource that is available to
these officials if they choose to utilize the expertise of the office?
If confirmed, do you anticipate making any changes in these
relationships?
Response. As Acting General Counsel and in my observation of
previous General Counsels' interactions with VA leadership, it has
become clear to me that OGC is considered a valuable resource to be
drawn upon early and often in all types of situations involving
important operational and policy issues. I continually impress upon our
clients the importance of our participation early in the consideration
of matters to ensure that legal ramifications are factored into
decisionmaking. In my experience there is widespread appreciation among
departmental leadership--at all levels of the organization--of the
value that OGC adds to discussions and reviews of virtually all
significant VA issues, and we are regularly consulted and invited to
participate in top-level meetings. If I were ever to experience a need
to interject OGC into consideration of matters, as General Counsel, I
would not hesitate to do so.
An advantage of serving as Acting General Counsel is that it has
allowed me to establish good levels of trust and strong working
relationships with leaders of all of the administrations and staff
offices. I am gratified by their acceptance of me and their deep
appreciation of our office.
Question 4. What is the working relationship between field offices
of OGC and of the administrations? Is there a direct client
relationship between OGC personnel in the field and local managers of
VHA, VBA and NCA? In how many facilities are OGC employees collocated
with field managers of the administrations? If confirmed, do you
anticipate making any changes in these relationships?
Response. The mission of our Offices of Regional Counsel is to
furnish the legal support needed by VA-program officials to provide
world-class service delivery to veterans across the United States. Our
Regional Counsels serve as house counsel to directors of all VHA, VBA
and NCA field facilities, working closely with facility officials to
meet their everyday needs for legal advice and representation. They
forge close attorney-client relationships by participation in regularly
scheduled meetings (for example, of VISN-level Executive Leadership
Committees) and through frequent, daily communications. While the
Professional Staff Groups in VACO are available to them as expert
resources, our Regional Counsels provide the direct legal support their
clients have come to rely upon. Client surveys have shown very high
levels of satisfaction with Regional Counsel services.
In all but one of our field offices, Regional Counsel staff are co-
located in facilities with leadership of one or more VA
administrations. In all of our offices, our Regional Counsels are no
more than short drives from program leaders and maintain close contact
with them. As a former field leader myself I know first-hand the
importance of maintaining strong client relations, and I will emphasize
the importance of doing so if my nomination is confirmed.
Question 5. What is your view on the role of OGC in responding to
decisions of the Court of Appeals for Veterans Claims, the Federal
Circuit, and the Supreme Court? Is it OGC's function to interpret such
decisions? Does OGC advise the Secretary, the board of Veterans
Appeals, and the administrations about the meaning of such decisions?
Does OGC have a role in ensuring compliance by BVA and VBA with such
decisions? What is OGC's role in deciding whether a particular decision
should be appealed? If confirmed, do you anticipate making any changes
in OGC's role in this area?
Response. The General Counsel is the Department's chief legal
officer, responsible for ensuring that VA-program officials fully
understand the laws and regulations in order that they may accord
veterans every benefit and service to which they are entitled. Since
the advent of judicial review, the General Counsel's role has grown to
include definitive interpretations of court rulings to guide Board of
Veterans Appeals (BVA) and VBA adjudicators.
OGC is frequently consulted by both BVA and VBA as new court
decisions are issued. Moreover, OGC years ago instituted regular
``Triad'' meetings with VBA and BVA officials at which new court
decisions are thoroughly discussed to ensure common understanding of
their meaning. Formal precedent opinions of the General Counsel are
issued whenever necessary to definitively state the ``holdings'' of
court decisions for the benefit of VA adjudication personnel who apply
them.
OGC plays the principal role in deciding which court decisions VA
will ask the Department of Justice to appeal. These recommendations are
made only when the General Counsel is convinced a court has
misinterpreted the intent of Congress regarding a statute,
misinterpreted a regulation VA has itself promulgated, or misapplied
binding judicial precedent. These recommendations are vetted with VA-
program offices and there is consultation with the Deputy Secretary and
the Secretary as appropriate. I believe the current approach to appeal
recommendations is sound and I do not anticipate making any changes if
I am confirmed.
Question 6. What is the role of OGC in preparing and clearing
testimony that is being presented to committees of Congress? On
preparing and submitting legislation to Congress? On preparing or
approving VA regulations? If confirmed, do you anticipate making any
changes in OGC's role in this area?
Response. OGC prepares draft legislation and legislative testimony
for OMB clearance and submission to Congress. VA draft bills are
prepared and presented in order to advance the Secretary's legislative
agenda. Testimony on pending legislation is also prepared to reflect
the Secretary's views.
OGC's role in the preparation of oversight-hearing testimony is
generally more limited. Ordinarily, that testimony is prepared by the
program offices and OGC's role is limited to reviewing it for legal
sufficiency.
OGC's role in rulemaking varies with the subject of the rule. In
some cases, such as with the rule to implement the new attorney-fee
provisions of Public Law 109-461, OGC assumes the principal drafting
role. Ordinarily, however, OGC participates in drafting only as
requested by the issuing program office or by the Office of Regulatory
Policy and Management, which has overall responsibility for
coordinating the preparation of VA regulations and their clearance by
OMB's Office of Information and Regulatory Affairs. OGC is consulted
throughout the process, however, and in all cases the General Counsel's
concurrence is required before rulemaking packages are submitted to the
Secretary for approval.
I am comfortable that these processes permit appropriate OGC
participation and currently do not have plans for recommending changes
in them.
Question 7. In your view, how effective is the current system for
the adjudication of claims for VA benefits, to and through the courts?
What do you see as the role of OGC in efforts to address the backlog of
claims and to otherwise improve the claims adjudication system? Do you
have any views for how the system might be improved?
Response. The best measure of effectiveness of the current process
is the end result for veterans: are they ultimately able to gain the
benefits claimed, to the extent they are entitled? By that measure, the
current system is effective. It is rare to encounter a situation in
which a veteran, having exhausted the many avenues for redress afforded
by the process, has been denied benefits to which he or she is
entitled. This indicates to me that reasonable doubt is being resolved
in claimants' favor, and that VA personnel are broadly construing
claims to claimants' benefit.
In terms of addressing the current claims backlog, I believe OGC
can have positive influences in a number of respects. First, we can
ensure that sufficient resources are devoted to representing the
Secretary before the Court of Appeals for Veterans Claims so that
litigation there is not unnecessarily protracted. I have made that a
resourcing priority, and will continue to do so if confirmed.
Second, OGC needs to ensure that the interpretations of benefit
laws, regulations and court precedents are consistently understood by
VBA and BVA so veterans need not appeal in order to obtain the benefit
of a correct application of the law to their cases. We strive to
promptly advise program officials of new developments in the law so
they are kept current.
Finally, we advise VBA program officials, including those in the
Compensation and Pension Service, on a very frequent basis concerning
the most efficient manner to implement such authorities as the Veterans
Claims Assistance Act so as not to unnecessarily prolong adjudications
and to avoid backlog-compounding remands.
From my vantage, I believe VBA is going about tackling these issues
in the right way: by staffing up considerably, and by ensuring staff
are adequately trained to apply the increasingly complex law to its
burgeoning caseload.
Question 8. What is your view on when OGC should issue a General
Counsel Opinion that establishes binding precedent for the Department?
What process is followed in the development of such opinions? If
confirmed, do you anticipate making any changes in when or how OGC
issues General Counsel opinions?
Response. Precedent opinions of the General Counsel are usually
issued at the request of either VBA or BVA in order to ensure that a
common interpretation of the law guides benefit-claim consideration
throughout the Department. On occasion OGC has issued them ``on its own
motion'' when it has encountered situations in which ambiguities or
vagueness in laws or judicial decisions could lead to disparate
interpretations.
Assignments to draft these opinions are made to the Professional
Staff Group having jurisdiction for the particular subject matter. Once
drafted, they are reviewed up the chain of command within OGC for
approval by the General Counsel.
I do not anticipate any changes in these regards if I am confirmed
as General Counsel.
Question 9. As you know, the Committee received a letter in
connection with your nomination relating to a personnel matter that you
were involved with, both during your time in the Office of Policy,
Planning and Preparedness and in OGC. Without discussing the specifics
of that personnel matter, please indicate:
(a) How the decision was made to refer the matter to an
administrative investigation board (AIB);
(b) Why the decision was made to ask an official from outside of VA
to head the AIB;
(c) Whether you have received any information or formal
communication suggesting that utilizing an outside official to head the
AIB was not appropriate or legal?
Response.
(a) An employee in the Office of Policy, Planning and Preparedness
came to me as the Acting Secretary and asked that I address an
extensive list of employment-related complaints that spanned the
employee's career at VA. The only way to effectively determine the
facts and the proper remedies (if appropriate) was to commission an
administrative investigation board to engage in fact-finding, and to
provide conclusions based on the facts.
(b) Several of the complaints raised by the employee involved the
most senior staff members in the Department. Accordingly, to ensure the
objective and complete investigation of the employee's concerns, we
asked the Department of Justice to provide an attorney to conduct the
Administrative Investigation Board.
(c) We have received no information from the Department of Justice
or other agency that our use of an outside official was inappropriate
or illegal. We have been told that the employee's husband received a
communication from the Department of Justice concerning his complaint
about the investigation. Neither the employee nor her husband shared
this communication with us.
Attachment to Accompany Pre-Hearing Questions
______
Response to Post-Hearing Questions Submitted by Hon. Daniel K. Akaka to
Paul J. Hutter, Nominee for General Counsel, Department of Veterans
Affairs
Question 1. Should VA have another data security breach, similar to
the May 2006 incident, do you have a clear idea of what the General
Counsel's role is in VA's response?
Response. Yes. In such an event, the Office of General Counsel
(including local Regional Counsels) would work closely with local and
national Incident Response Teams, and as members of the Incident
Resolution Core Team, and provide timely legal advice as needed to the
Office of the Secretary, the Chief Information Officer, and the
impacted program office(s) to ensure that the Department addresses and
mitigates the incident in accordance with all applicable laws. In
particular, title IX of the Department of Veterans Affairs Information
Security Enhancement Act of 2006, Pub. L. No. 109-461, and implementing
regulations in Part 75 of 38 C.F.R., effective June 22, 2007, provide a
framework for action in response to a data breach involving sensitive
personal information.
Question 2. In the event of a significant data breach, risk
analysis plays a critical role in how VA will respond. What is your
understanding of the role the General Counsel plays in VA's risk
analysis process?
Response. The VA Information Security Enhancement Act of 2006
mandates that in the event of a breach of sensitive personal
information, VA must ensure that, as soon as possible after the breach,
a non-Department entity or the VA Office of the Inspector General
conducts an independent risk analysis to determine the level of risk
for the potential misuses of sensitive personal information.
Thereafter, if the Secretary determines, based on the findings of the
independent risk analysis, that a reasonable risk exists for the
potential misuse of sensitive personal information, the Secretary shall
provide credit protection services in accordance with VA regulations
promulgated at 38 C.F.R. Part 75, Subpart B. The Office of General
Counsel's role would be to proactively advise and otherwise assist the
Department leadership to ensure that the risk-analysis process and
resulting VA actions comport with these legal authorities.
Question 3. Do you believe that HIPAA presents an obstacle to the
transfer of medical information between DOD and VA? And if so, how can
any such obstacle be overcome?
Response. No, the HIPAA Privacy Rule is not a barrier to VA/DOD
medical information sharing.
The HIPAA Privacy Rule generally prohibits the nonconsensual
disclosure of protected health information (PHI). The Rule, however,
includes a special exemption pertaining to the disclosure of PHI upon
the separation or discharge of an individual from military service.
This exception, 45 C.F.R. Sec. 164.512(k)(1)(ii), allows DOD to
``disclose to VA the protected health information on an individual who
is a member of the Armed Forces upon separation or discharge of the
individual from military service for the purpose of a determination by
VA of the individual's eligibility for or entitlement to benefits under
laws administered by the Secretary of Veterans Affairs.'' Furthermore,
VA may disclose PHI to military command authorities without an
authorization if a VA patient is a member of the Armed Forces and
military command authorities need the PHI to assure the proper
execution of the military mission. 45 C.F.R. Sec. 164.512(k)(1)(i).
Hence, I do not view the HIPAA Privacy Rule as an obstacle.
Question 4. Early in your tenure in the Office of General Counsel,
you were in Group Seven, the section that works on appeals before the
Court of Appeals for Veterans Claims.
(a) Are you satisfied that the head of that section has sufficient
authority to settle, rather than appeal, an individual case?
Response. Yes, I believe the head of that staff possesses
sufficient authority to settle cases coming before the Court of Appeals
for Veterans Claims (``Veterans Court''), either by agreement to remand
the appeal or to award the benefits at stake. As a matter of practice,
that group's attorneys take a fresh, objective look at each case that
is filed in the Veterans Court. They do not automatically defend every
BVA decision presented in an appeal. Instead, where it appears that a
potentially harmful error has been made, or where a change in law
requires readjudication, the Secretary's attorneys offer to remand or
otherwise settle the case, as appropriate. This is consistent with
well-established principles, dating back over a century, regarding the
Government's authority to terminate lawsuits by settlement or
compromise.
Indeed, that office has a special team of experienced attorneys
charged with ``triaging'' every new appeal that is filed to determine,
as early as possible in the litigation, whether remand or other
settlement is warranted. If defense of the BVA decision is not
appropriate in their judgment, they have the ability to resolve the
appeal within a matter of weeks rather than in the many months required
to fully litigate a typical appeal. This approach is justified by the
desire to see that justice is done and that veterans' cases be handled
as quickly and efficiently as possible.
(b) I realize that the attorneys in that section must have
expertise in handling appeals, but I believe that there would be value
in ensuring that attorneys familiar with specific VA programs also work
in that office. Does Group Seven bring in attorneys, with subject
matter expertise, from elsewhere in the Office of General Counsel?
As your question recognizes, the wide variety of benefit questions
that arise in cases coming before the Veterans Court can be
challenging. Our appellate-litigation group brings the special
expertise of program officials and others to bear by consulting the
experts while the litigation position of the Secretary is being
formulated. Specifically, it is part of their standard operating
procedures to consult with attorneys in other OGC groups that have
particular expertise in the area of the law and the program at issue in
an appeal. They also involve these specialists in reviewing their
briefs and in their moot courts in preparation for oral argument.
Additionally, our Veterans Court litigation staff will consult with
officials in the specialized program area, such as the Compensation and
Pension Service, Education Service, Loan Guaranty Service, Insurance
Service, etc., as appropriate. This network of experts that our
attorneys use--as the private sector employs expert witnesses and
consultants--has proven very useful in guiding our attorneys in
litigation before the Veterans Court.
Question 5. Do Regional Counsels have sufficient authority to
settle suits brought against VA, such as for medical malpractice?
Response. While only the United States Attorneys and the Department
of Justice are authorized to settle suits in litigation against the
Government under the Federal Tort Claims Act, VA Regional Counsels and
VA attorneys in the tort section of the Office of General Counsel in
Washington have authority to settle pre-litigation administrative tort
claims, including those alleging medical malpractice. Regional Counsels
have authority to settle tort claims in an amount not exceeding
$100,000. They may, however, obtain additional authority in a
particular case up to $200,000, the limit of the Department's
authority, from the torts section of the Office of General Counsel
(OGC) in Washington. This approval can be obtained relatively quickly
and with minimum formality, consistent with verification that the
recommended settlement is justified and reasonable.
Under this arrangement, I believe that our Regional Counsels have
sufficient settlement authority, and our statistics bear that out. For
Fiscal Year 2007 through the end of July, of the 262 total payments in
VA medical malpractice cases, both in litigation and administratively,
Regional Counsels settled 96 claims, 36 percent of the total, within
their $100,000 authority. Another 33 malpractice claims were settled
either by Regional Counsels with additional authority from OGC or by
the OGC tort section attorneys within the Department's $200,000
authority. The OGC tort section may also settle cases in excess of
$200,000, subject to approval by the Department of Justice, and did so
in eleven cases in fiscal year 2007. In all, OGC administrative
settlements comprised 53 percent of the total number of payments in VA
medical malpractice cases.
Question 6. The Institute of Medicine last month issued a report on
the establishment of presumptions for service connection. What role
does the Office of General Counsel play in determining whether a
specific disease or illness should be presumed service-connected?
Response. Although most existing presumptions of service connection
have been established by Congress, VA has authority to establish
presumptions of service connection for specific diseases and illnesses
by regulation, and the General Counsel plays an important role in that
process. Determining whether a presumption is warranted involves a
combination of scientific, policy, and legal considerations, requiring
collaborative efforts between the Veterans Health Administration, the
Veterans Benefits Administration, and the Office of the General
Counsel. The General Counsel is primarily responsible for ensuring that
a presumption is within VA's authority, that the basis for the
presumption is legally adequate and sufficiently explained, and that
the presumption is properly established through rulemaking procedures.
Two statutes--the Agent Orange Act of 1991 and the Persian Gulf War
Veterans Act of 1998--establish standards and procedures under which VA
must determine whether presumptions are warranted for specific diseases
or illnesses associated with herbicide exposure or hazards of Gulf War
service. To carry out those requirements, the General Counsel serves on
a Task Force with other VA officials to evaluate reports prepared by
the National Academy of Sciences and to make recommendations to the
Secretary as to whether the available medical and scientific evidence
warrants a presumption of service connection for any disease or illness
under the legal standards set forth in those statutes.
Question 7. The Committee has a strong interest in improving
collaboration and cooperation between VA and DOD. As far as you know,
are there any existing legal impediments to the two Departments
engaging in comprehensive sharing?
Response. As you know, 38 USC Sec. 8111 gives VA and DOD broad
authority to share health-care resources. The statute also calls for an
annual report to Congress by the two Secretaries in which they are to
provide recommendations for any needed amendments to this authority. I
am presently not aware that additional sharing authority is needed, but
as collaboration between the two Departments grows we very well may
identify such a need. I certainly appreciate your implied offer to
assist us in that event.
Question 8. In recent years, there have been situations in which a
significant issue has been under review by the Court of Appeals for
Veterans Claims or, after appeal from that court, by the Court of
Appeals for the Federal Circuit. Meanwhile, claims involving the same
issue continue to come to VA. Do you have any recommendation on how to
manage claims that are pending a court decision?
Response. Occasionally it can be forecast that the resolution of a
matter on appeal to the Federal Circuit will affect the adjudication of
so many pending claims that it is prudent to defer those adjudications
until the Federal Circuit has ruled. A good example involved the
Veterans Court's ruling that veterans whose tinnitus is perceived
bilaterally are entitled to 20 percent disability ratings rather than
the 10 percent VA had traditionally assigned this condition. Convinced
that the court had committed error, VA ``stayed'' the application of
the ruling to other cases while the Department of Justice appealed it
to the Federal Circuit, which ultimately agreed with VA's
interpretation of its regulations. Had VA not stayed the adjudications
and instead promptly applied the CAVC's ruling to pending cases, it
would have later had to reduce all of those ratings to 10 percent which
would certainly have created confusion among veterans, unduly burdened
the claims system to the disadvantage of other claimants, and perhaps
required creation and collection of resulting overpayments.
It is possible as you suggest that an issue on appeal to CAVC could
also create a need for VA to temporarily forebear adjudications that
would be controlled by the appeal's outcome so as to avoid unnecessary
reworking of those claims.
Current Veterans Court case law requires VA to obtain a court order
authorizing it to stay adjudications in such circumstances. As General
Counsel I would not hesitate to petition for such orders as appropriate
on behalf of the Secretary.
Question 9. With ever increasing numbers of older veterans in VA
long-term care facilities, do Regional Counsels have any role in
working with these veterans to assist them with estate planning or
referring them to local attorneys who might provide such assistance?
Response. The Office of the General Counsel provides legal
assistance to the Secretary, and by extension to the Administrations
and Staff Offices, concerning the programs and policies of the
Department. Office of General Counsel attorneys, paralegals and staff
are not authorized to provide legal assistance directly to veterans,
although they regularly direct veterans requiring assistance to local
legal services such as pro bono and reduced-fee programs. They also
advise veterans to check with the nearest military installation to
determine whether they are entitled to receive legal-assistance
services from military judge advocates.
Chairman Akaka. Thank you very much, Mr. Hutter.
We do have questions. Earlier this year, I wrote to
Secretary Nicholson about the proposed regulation on
accreditation of agents and attorneys, specifically with
reference to the requirement that all attorneys pass a VA-
administered written examination prior to accreditation. In
late August, Secretary Nicholson indicated that VA was
reconsidering the examination requirement. Can you provide an
update on the status of the proposed regulation?
Mr. Hutter. Yes, I can, Mr. Chairman. We received your
letter and gave it a great deal of thought. Your letter
indicated that you and Senator Craig, who jointly signed the
letter, were concerned that the testing requirement that we had
built into the proposed regulation would chill the efforts of,
particularly, pro bono law firms in representing our veterans.
We have considered that very carefully. We have crafted an
alternate solution that is working its way through the
concurrence process at the VA and we expect to have a final
regulation by the end of next month.
Chairman Akaka. It is clear, Mr. Hutter, that VA, like all
Federal departments and agencies, is facing a great many
questions relating to the increasing use of information
technology. Are you satisfied that the Office of General
Counsel has sufficient staff attorneys with expertise in this
emerging area of law?
Mr. Hutter. Yes, Mr. Chairman, we are. We are privileged to
have three experts on our headquarters staff who have not only
expertise in the law, but have extensive expertise in
information technology and information management. We also have
several assets in the field who share that dual interest in the
law and information management and we are making full use of
them at this time because of the many challenges that face the
Department in this area.
Chairman Akaka. In your responses to my pre-hearing
questions, you described the Office of General Counsel's role
in clearing testimony. I realize that there is only so much
that the Office of General Counsel can do, but I urge you to
work with others in VA to help ensure that VA testimony is
received more timely. The current situation where the Committee
may not receive cleared testimony until late the day before a
hearing must end. With Senator Burr, we have some feelings
about that.
With respect to the current claims adjudication system, I
ask that if you are confirmed, your Office of General Counsel
staff work with the Board in VBA to find possible changes to
law, regulation, internal guidance, or practice that can
improve the timeliness of the process. The status quo is simply
unacceptable.
In your answer to my pre-hearing question about how VA
responds to decisions of the U.S. Court of Appeals for Veterans
Claims and other courts, you noted that OGC works with BVA and
VBA on understanding decisions. While I appreciate the value of
collegial cooperation, I believe that there must be a single
office within VA with the responsibility for interpreting court
decisions and ensuring that those interpretations are shared
throughout the Department. In my view, that should be the
Office of General Counsel. Do you agree with that?
Mr. Hutter. Mr. Chairman, I do agree with that, and if
confirmed, I will work with my colleagues, Admiral Cooper and
Chairman Terry, to take the leadership in that role and ensure
that the interpretation of the decisions and the downstream
effect of those decisions are promulgated as you said, to the
field, to the people who need it in order to craft their
decisions and provide timely benefits responses to our
veterans.
Chairman Akaka. I would ask you to please let me know if
there are any problems preventing this policy.
Mr. Hutter. I will let you know, sir.
Chairman Akaka. Let me call on Senator Burr for his
questions.
Senator Burr. Thank you, Mr. Chairman.
Mr. Hutter, let me reemphasize something that the Chairman
touched on and that is testimony. I am sure that the General
Counsel's Office is involved in clearing the testimony, as are
other areas of the Administration. Leave here with every
understanding that, if the policies don't change, we will find
a way to further encourage compliance, and I am serious about
that one and it is not just limited to this Committee. It is
really pointed at the Administration and previous
Administrations and future Administrations, that this will
change. It has to change.
Let me also follow up on an area that the Chairman just
raised, which is the number of incoming appeals for the Court
of Appeals for Veterans Claims. Specifically, are there other
steps, like mandatory mediation, that could be taken to help
your office and the court handle this tremendously high
caseload?
Mr. Hutter. Senator, the problem with mediation in the
environment of the Court of Appeals for Veterans Claims is that
these are statutory and regulatory benefits. Either a veteran
is entitled to those benefits or the veteran is not. So it is
very difficult to mediate those benefits because of that clear
disposition as to either he or she is authorized or not
authorized.
But what we can do, Mr. Chairman and Senator Burr, is to
identify those cases early on that come to us from the Court of
Appeals for Veterans Claims that can easily be disposed. Either
they should be granted and we either remand or we grant the
benefits at that stage, or alternatively we recognize that
there is an error of some kind in the earlier adjudications and
we remand them as quickly as possible.
We have a triage system in the staff group in the Office of
General Counsel that deals with and represents the Secretary
before the Court of Appeals for Veterans Claims. We will expand
that effort in order to avoid and triage those cases more
quickly.
Senator Burr. I think, clearly, the Office of General
Counsel understands the problem that is out there and you have
requested additional staff for that. Let me make an offer to
you. If at any point you feel that it is beneficial to talk to
any staff person in a State that represents a United States
Senator that can give you a view of reality of what they deal
with in these litigation cases, I will volunteer my staff for
whatever time you would like to spend with them. I think that
though you described a very black and white situation, I have
got individuals who represent the government and represent the
veterans who are caught in an area that is blurred. And in
their world black and white rarely happens, primarily because
there is a disconnect in the interpretation of what the court
said, how they said it, and I would suggest to you how long it
took them to say it. So that offer is open to you.
You have worked in the central office and you have worked
in the field as an attorney for the VA. I am sure those two
experiences were very different. As a field attorney, what
problems do you see with the central office management and
organization, and do you intend to make changes based upon your
field experience?
Mr. Hutter. As a field attorney, Senator, I found that the
most lacking element from my experience was communication
between the headquarters and the field. As many of us have
experienced who have been in field organizations and where
there is a headquarters, the reliance on the headquarters to be
the subject matter experts and to provide that guidance and
help to the field is absolutely instrumental. By the same
token, the ability of that field to communicate and reach the
right people in the headquarters who have the breadth and depth
of experience in a particular legal area to solve their
problems is also critical.
Just before I came over here, Senator, I met with a group
of field attorneys who were here to understand what we do at
the headquarters. I encouraged them, demanded of them, told
them I expected of them: if they are not getting the
communication they need, I need to know. Moreover, I have
empowered and expect my Assistant General Counsels--senior
executives--to force feed, to provide the information down to
the field that is necessary for those attorneys to do their
jobs.
Senator Burr. Well, I thank you for that answer and am
encouraged with that answer. If this Committee can help, I am
sure you will let us know.
Earlier this year, the Secretary announced a new policy of
expediting all claims by veterans of Operation Iraqi Freedom
and Operation Enduring Freedom. Does the Office of General
Counsel intend to take any steps to ensure the appeals of these
veterans are decided expeditiously?
Mr. Hutter. As you know, Senator, Secretary Nicholson took
the lead in this area and in expediting the claims of OEF and
OIF veterans to the top of the heap, both in the regional
offices and at the Board of Veterans Appeals. The Secretary
controls those two bodies and, therefore, it is within the
Secretary's discretion to advance those claims and appeals to
the head of the line.
Unfortunately, sir, the Court of Appeals for Veterans
Claims controls the docket and feeds us the cases that come in;
and we respond to the court in that regard. What I would
suggest, sir, is that I will meet with Chief Judge Green of the
Court of Appeals for Veterans Claims, discuss this with him,
and see if there is anything we can do to expedite the claims
of those veterans who are recently returning from Afghanistan
and Iraq.
Senator Burr. Clearly, I want to see the Secretary's
intentions carried out in all aspects. If, in fact, you need
our help at achieving success for this program, you will let us
know.
Mr. Hutter. I will let you know, sir.
Senator Burr. I thank you, Mr. Chairman.
Chairman Akaka. Thank you very much, Senator Burr.
Now, Senator Murray, for your statement and questions.
STATEMENT OF HON. PATTY MURRAY,
U.S. SENATOR FROM WASHINGTON
Senator Murray. Thank you very much, Mr. Chairman. I will
submit my statement for the record; and I apologize for being a
few minutes late.
[The prepared statement of Senator Murray follows:]
Prepared Statement of Hon. Patty Murray, U.S. Senator from Washington
Mr. Chairman, thank you for holding today's hearing on the
nomination of Paul Hutter to be the General Counsel of the Department
of Veterans Affairs.
I had the pleasure of meeting with Mr. Hutter on Tuesday to discuss
his nomination, and I appreciate the time he spent talking with me
about his vision for the office and his passion for helping veterans.
Mr. Hutter has spent a significant amount of his career working for
veterans at the VA, including 15 years in the Office of General
Counsel. During this time he has been involved in some of the biggest
policy decisions that have taken place in the VA in recent time.
The position of General Counsel at the VA is an incredibly
important one. Although the General Counsel does not, as you say in
your testimony, ``have the privilege of direct interaction with our
veterans,'' the position does affect nearly everything the VA does.
From advising the Secretary and other senior leadership at the VA on
all legal matters, to interpreting laws and regulations on veterans'
benefits, to drafting legislation, to helping prepare legislative
testimony, the General Counsel is a key component of the VA
decisionmaking process.
Mr. Hutter, you have been nominated to be the General Counsel of
the VA at a critical time in the VA's history. The agency faces
challenges caring for our returning servicemembers as they transition
from the military to the VA. It continues to struggle in establishing a
joint DOD-VA electronic health record. It faces serious challenges in
overcoming a growing claims backlog. And, for some unknown reason, it
faces serious challenges providing accurate and timely information to
Congress.
All of these challenges, with the exception of the last, require
innovative solutions to push the agency forward and will require the
involvement of your office. As a veteran, a long time VA employee, and
someone who has two children currently serving in the military, I have
no doubt of your commitment to veterans.
Thank you Mr. Chairman.
Senator Murray. Mr. Hutter, it is good to see you again. I
appreciated the opportunity to meet with you in my office a few
days ago and have a conversation, and I appreciate your
willingness to consider this very important critical job for
the VA.
When we talked Tuesday, I told you how frustrated I had
been with our inability to get accurate and timely information
from the VA. I think you have heard that several times. But it
is important, because this Committee really relies on
information that is provided by the VA, so that we can make
good decisions about the veterans that we all feel responsible
for taking care of. If we don't have it, it really impedes our
ability to do our jobs and to stand up for the veterans that we
represent.
But Congress hasn't been alone in being frustrated by the
secrecy that has clouded the VA. In January of 2006, the
National Security Archives at George Washington University
filed a Freedom of Information Act request for documents about
the number of disability benefits claims filed by veterans from
the current War in Iraq. The VA responded to that FOIA request
by denying that the reports even existed, and it was only after
the Archives appealed the VA's decision and advised the VA that
it was prepared to file a lawsuit did the agency manage to find
those records, and it took about 9 months then for the VA to
respond.
Can you tell this Committee why it took the threat of a
lawsuit to release basic information that should have been
available to the public?
Mr. Hutter. Senator, I would like to address that question
by first explaining the process for an FOIA complaint. When an
FOIA request comes in, it goes to the program office, whatever
it may be--Veterans Benefits Administration, I would assume in
this particular case--and the FOIA requires that we provide
records that are extant, in other words, that are available,
that are already in place. It does not require that we create
records.
That having been said, however, it is up to the program
office to reach out to the requestor, and make sure that the
program office understands the request, understands the scope
of the request, and can appropriately respond in kind with
extant documents.
If the appeal is denied--excuse me, if the initial request
is denied, as in this case you indicated--then it is up to my
office to adjudicate the appeal of these Freedom of Information
Act requests, and based upon the information that you have
provided, it was my office that advised that we needed to grant
this appeal and we needed to provide the information to the
requester in this case.
I am not aware of this particular matter, but I will look
at it and I will try to find why it took 9 months to respond.
Senator Murray. Can you assure us that in the future, these
cases will be expedited, that we can have them sooner--have the
information sooner?
Mr. Hutter. Senator, I will work with my colleague, Bob
Howard, who is the CIO and the Assistant Secretary for
Information Management, to work with him to ensure that proper
education and staffing is available to those program offices
who receive those initial requests so that they understand what
their role is, how they can communicate with the requester, and
how they can expedite the process.
Senator Murray. OK. I think you can hear from the
questioning, both now and the pre-questioning, that this is a
critical issue for all of us, so I hope that when you are
confirmed you will address that for all of us.
Mr. Hutter. You have my pledge to that, Senator.
Senator Murray. In your response to the pre-hearing
questions, you stated that one of the responsibilities of the
Office of General Counsel is to draft legislative proposals
from the VA when you submit them to Congress. But, I am told
that the VA has submitted very few legislative proposals to us.
Given the extraordinary number of challenges and all the issues
we are dealing with, I find that very surprising and have a
hard time understanding why that is the case. You spent 15
years at the Office. Can you tell me why more legislative
proposals are not more forthcoming?
Mr. Hutter. What I would like to do, Senator, is to let you
know that we are working now with OMB with, I think, 93
proposals at this point in time on subject matter that range
across the subject matters that are under the responsibility of
the Department, and we are working with them in concert with
the 2009 budget process to winnow that population down to the
right number and to provide those to you during the budgetary
process.
So, 93 is a fairly large number of bills----
Senator Murray. Have those been in the pipeline for a
while?
Mr. Hutter. Some of them have been in the pipeline in
previous years. Some of them are current. Some of them are
brand new. Many of them are brand new proposals based upon the
exigencies of OEF/OIF and the current challenges that we have
in front of us. I don't have the numbers in front of me, but I
would be more than willing to share with you what I can of the
nature, in a general sense, of those bills and where they are.
Senator Murray. I think this Committee would be interested
in seeing the general nature of that.
Mr. Hutter. I will share what I can.
Senator Murray. OK. I also wanted to ask you about the VA's
capacity to care for the large influx of men and women
returning with issues from Iraq and Afghanistan. I am
particularly interested in mental health care and know that one
of the biggest problems we are facing that we haven't gotten a
handle on is the issue of suicide. The Army recently released a
report that found suicide rates are at the highest they have
been since 1981 and that there have been several high-profile
suicides of veterans who have reportedly been denied care by
the VA. I am sure you are aware of that.
One of the cases is Lance Corporal Jeffrey Lucy. As you
know, Corporal Lucy's family has filed a wrongful death suit
against the VA, alleging that the agency denied him mental
health care. Now, I know that lawsuit is pending and you can't
speak on the specifics of that case, but can you tell us what
the Office of General Counsel is doing to make sure that our
employees who are out in the field know that they have got to
provide immediate care for veterans like Corporal Lucy?
Mr. Hutter. Senator, I know you are aware of our suicide
prevention hotline that our office helped the program office
initiate just a few months ago. I am sure you are also aware
that we have had over 4,500 calls to that hotline, and I
believe that there have been 145 referrals to our hospitals as
a result of that hotline. That suicide prevention hotline is a
major step in that direction and we helped to review the policy
and make sure that it was proper.
With respect to the care of individual veterans across our
country, we have been in partnership with our VHA colleagues
where sometimes an individual is reluctant to come to our
medical centers for treatment in the mental health arena for
various reasons, whether it be a stigma concern or other
reasons, and we have worked with our colleagues in VHA where
such an individual has been identified to work with the local
court systems, to work with the local police departments, to
encourage--and other support systems in the community--to
encourage that veteran and that veteran's family to find either
community processes or, if necessary, in the extreme, legal
processes at the local-State level to encourage that individual
to come in for care.
Senator Murray. That is one side of the issue, the stigma
issue where people don't seek care, and I realize we have to do
a lot more to reach out and find these young people and get
them into whatever place we can to help them. I am asking
specifically about the number of cases we are hearing where
someone has come to a VA facility and been told to wait in
line; there isn't care available, and it ends up in a suicide.
Are we reaching out to our field employees to make sure they
understand their responsibility in not turning these people
away?
Mr. Hutter. Senator, my folks are reaching out to the
hospital directors in order for them to understand all of the
ways that are within the law and within the policy and
regulation that they can reach out--through the Vets Centers,
through their CBOCs, through any means that they have to reach
out to the field to work through this.
Senator Murray. I understand that aspect. I am asking about
those veterans who come to a VA facility and are told that they
can't get in.
Mr. Hutter. Senator, as I know you know, this is in the VHA
lane and I will work with Dr. Kussman and his folks to ensure
that they understand all of the means that they have available
to them; to admit these veterans and to put them at the head of
the line, so to speak; to ensure that they have a means to get
in as quickly as possible. In fact, we are in the process now
of looking at legislation that will allow VHA to do just that
for all mental health issues.
Senator Murray. OK. And Mr. Chairman, if I could ask just
one more question very quickly. On the delay on benefits that
we have heard so much about--in fact, Secretary Nicholson said
that reducing it from 177 days to about 150 days is all he can
see happening, which is still way, way too long--I notice that
Professor Bilmes of Harvard University--I think that is how you
say her name--suggested that we change the system to stop
examining each application and instead automatically accept all
disability claims and then audit a sample of them, similar to
what the IRS does. I know the IRS is not similar to health
care. I understand that. But can you share your thoughts with
this Committee on a process like that?
Mr. Hutter. Senator, I have spoken with our veterans
service organization colleagues about this very issue, as well
as internal to the VA. Because of the juxtaposition of health
care and claims and that overlay of determining the health-
related concerns, I think it would be a very challenging
process to put into place. Notwithstanding that, the
Secretary--I was present when the Secretary met with, I think
it is Professor Bilmes----
Senator Murray. Bilmes, that is right, yes.
Mr. Hutter [continuing]. From Harvard, and the Secretary as
well as the entire staff was charged and energized with the
concept of trying to figure a system, either the system that
Professor Bilmes proposed or something akin to that, and we are
working with the Chairman of the Board of Veterans Appeals and
with elements of VBA to work through a way we might be able to
do that right now.
Senator Murray. OK. I appreciate your taking a look at that
and letting us know whether there is a way to move to that or
whether it is not going to be feasible. Thank you very much;
and thank you, Mr. Chairman.
Chairman Akaka. Thank you very much, Senator Murray.
Now let me call on Senator Johnny Isakson for your
statement or questions.
STATEMENT OF HON. JOHNNY ISAKSON,
U.S. SENATOR FROM GEORGIA
Senator Isakson. I will be brief. I apologize that I missed
your testimony, but I was on the floor making a speech, so I
apologize very much. You obviously are eminently qualified. I
read your biography.
I want to follow up on what Senator Murray just said. I
think we do need to really evaluate our determination basis on
these veterans. I had dinner last night with a number of people
from my community. They came up and invited me to go to dinner
at Old Ebbitt Grill. One of the guys is a retired Marine and so
he called Walter Reed and invited two wounded warriors. He
asked the director of the hospital if we could take a couple of
them to dinner, and a couple of them came. I sat at their
table. Both of them severely injured--by IEDs in one case; a
rocket-propelled grenade, in another case--suffered extensive
injuries. and are on an outpatient basis, still being treated
at Walter Reed.
Their comments about health care at DOD were nothing but
spectacular, which is what I have always heard; but the hand-
off of their colleagues from DOD to VA, problematic at best.
I think Senator Murray was referring a minute ago to the
benefits issue. There seems to be a gap between the
communication of benefits you have while you are on active duty
and what your benefits are when you go into VA, particularly
with regard to health-related issues.
So, that is kind of a statement, not a question, but I
would assume the General Counsel's Office would have standing
to look at ways, in the legal interest of the Veterans
Administration, but equally in the interest of our soldiers, as
to how we could improve that.
I have two questions. You will have 402 lawyers under your
command, according to some of the responses here, 677 FTEs.
Mr. Hutter. Correct.
Senator Isakson. What consumes the majority of the time of
those 402 lawyers? What issue, or what area of issues?
Mr. Hutter. Sir, it is a collective bag. I must say that
the largest concentration of lawyers that we have is focused on
defending the Secretary in front of the Court of Appeals for
Veterans Claims, and that is about 42 lawyers right now. Their
caseload is significant and, through your good offices, we have
an expectation of being able to hire 15 more with the fiscal
year 2008 budget that we are looking forward to.
Senator Isakson. Excuse me for interrupting, but these 42
are representing the Department, as they should, in legal cases
that have been filed based on claims for disability?
Mr. Hutter. Yes, sir, any benefit defined broadly that a
veteran is dissatisfied in what he has received from the
Department--either at the regional office level or by the Board
of Veterans Appeals or in some cases by the Veterans Health
Administration--can be appealed to the court, and the backlog
at the court or the caseload at the court right now is about
4,000 cases. And we, with few exceptions, have to represent the
Department with respect to those cases.
Senator Isakson. Out of interest and curiosity--the biggest
things we are dealing with in the Congress with our veterans is
PTSD and Traumatic Brain Injury, many of which are latent. You
don't necessarily have a physical injury that is apparent and
sometimes they are latent before they actually come about.
Where is the Department in dealing with that determination
factor, when a veteran comes in after being separated from the
military for some period of time? What is the line that you
draw there?
Mr. Hutter. Senator, as a result of our research--our
longstanding research in this area, more recently with TBI--
every veteran who comes to a Veterans Medical Center or a CBOC
now gets evaluated for TBI, whenever they come in. And that is
also true for PTSD.
Now, I am stepping a little out of my lane and into Dr.
Kussman's lane, but I wanted you to know that that is the
state-of-the-art, and there is an extensive checklist that
every specialist at the medical center goes through with each
veteran to ensure that the diagnosis, if possible, is made at
the time that that veteran comes to us.
Senator Isakson. I want to just make you aware of
something. I held a hearing, Mr. Chairman, at the Augusta VA
during the August break and, quite frankly, the Augusta VA and
Eisenhower Medical Center is the one example in the country,
and General Schoomaker did this, where you have a seamless
transfer. In fact, VA is actually doing physical rehabilitation
for active duty soldiers. They seamlessly go back and forth
based on the needs and the specialties.
But on this TBI issue, I was touring the hospital and I ran
into a young lady, a sergeant who was in fatigues and in
uniform. I was introduced to her and the VA doctor said, you
need to know something about this lady. He said, she was hit
and her convoy was hit with an IED the second day she was in
Iraq and she suffered a Traumatic Brain Injury and she was
separated from the military because they couldn't, after
treating it, cure it. She went into the VA. The VA corrected
the TBI. She reenlisted and went back in the military and was
on her way back to Iraq.
The point I make there is this: the better job we can do in
this transfer to VA and DOD, a lot of these people who--I hate
to use this term--may be falling through the cracks will not
fall through the cracks and might, in fact, be rehabilitated on
a much faster basis than they would otherwise.
So I would encourage, from a legal side, anything you can
do to help on that transfer from DOD to VA care and the rights
of those soldiers and the attention to them, I think, would do
a great service to our country and to our soldiers.
I am sorry I took so much time, Mr. Chairman.
Chairman Akaka. Thank you very much, Senator Isakson.
I would like to ask Senator Burr whether you have any
further questions.
Senator Burr. No.
Chairman Akaka. I don't have any further questions.
Senator Isakson?
Senator Isakson. No, sir.
Chairman Akaka. Well, in closing, I again want to say
mahalo nui loa and thank you, Mr. Hutter, and mahalo to your
family, as well, for your presence here today.
As you know, every organization needs an unquestioned
leader. It is not optimal for the Office of General Counsel to
have an acting leader for an indefinite period of time. With
this in mind, I say that only to tell you that I will work and
the Committee will work to move Mr. Hutter's nomination to the
floor as soon as possible.
I thank you so much for your responses and the presence of
your family.
This hearing is adjourned.
[Whereupon, at 10:23 a.m., the Committee was adjourned.]
HEARING ON THE NOMINATION OF MICHAEL W. HAGER TO BE ASSISTANT
SECRETARY, HUMAN RESOURCES AND MANAGEMENT, U.S. DEPARTMENT OF VETERANS
AFFAIRS
----------
WEDNESDAY, NOVEMBER 14, 2007
U.S. Senate,
Committee on Veterans' Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 10:11 a.m., in
room 562, Dirksen Senate Office Building, Hon. Daniel K. Akaka,
Chairman of the Committee, presiding.
Present: Senators Akaka and Burr.
OPENING STATEMENT OF HON. DANIEL K. AKAKA, CHAIRMAN,
U.S. SENATOR FROM HAWAII
Chairman Akaka. The Committee on Veterans' Affairs will now
come to order. The Committee is here today to consider the
nomination of Michael W. Hager to be VA's Assistant Secretary
for Human Resources and Management. I am pleased to welcome Mr.
Hager and his family here today and look forward to your
testimony.
Mr. Hager, if confirmed, you will be responsible for
coordinating five major program areas within the Department,
including diversity management and equal opportunity, human
resources management, labor-management relations, resolution
management, and administration. The leadership and program
direction that your office provides for the Department impacts
veterans on a daily basis by responding to the needs of a VA
workforce of over 250,000 permanent and temporary employees who
are directly or indirectly responsible for delivering health
care, benefits, and memorial services.
As Assistant Secretary, you will have the daunting task of
managing VA's human resources activities during a period when
VA is confronted with the challenges of a growing retirement-
eligible workforce, health care provider shortages, and delays
in delivering benefits due to personnel shortages. Included in
your responsibility for administering VA's labor-management
relations program is the oversight of negotiations and
implementation of master agreements with five national labor
unions.
The quality of care and the efficient delivery of benefits
to servicemembers is contingent upon VA's ability to recruit
and retain a quality workforce. When carrying out this
responsibility, you will need to appreciate the unique
relationship that VA employees have with the veterans they
serve. This relationship goes beyond the bottom line and is
based upon maintaining a workforce, many of whom are veterans
themselves, that has a sense of service and dedication. As you
so aptly quoted Omar Bradley in your response to pre-hearing
questions, and I am quoting, ``We are dealing with veterans,
not procedures, with their problems, and not ours.''
Mr. Hager, your 35 years of experience in human resources
coupled with your general management experience suggests that
you have the qualifications for taking on the challenges of
this office. Assuming you are confirmed, I urge you to work
closely with the three VA administrations and key staff offices
to develop workable and viable succession plans while improving
hiring practices so that the delivery of care and benefits to
veterans is not disrupted by a change in workforce.
In closing, I note that the nominee has completed the
Committee questionnaire for Presidential nominees and responded
to my pre-hearing questions, all of which will appear in the
hearing record.
Chairman Akaka. Also included will be a letter from the
Office of Government Ethics acknowledging that Mr. Hager is in
compliance with laws and regulations governing conflicts of
interest.
Chairman Akaka. I welcome you here. Senator Burr?
STATEMENT OF HON. RICHARD BURR, RANKING MEMBER,
U.S. SENATOR FROM NORTH CAROLINA
Senator Burr. Mr. Chairman, thank you. Let me again thank
you for taking up the key issues before this Committee today.
We just completed one important responsibility by reporting a
number of bills that I think will improve the lives and the
health care provided to our Nation's veterans. Now we turn to
another important responsibility of this panel and the Senate
and that is the timely consideration of the President's
nominees to important positions within government.
Mr. Hager, I want to welcome you and your family, and I
think maybe a grandson--I hear the cries from over there. It is
a delightful sound to know that there is another generation
that will soon be in the system.
Mr. Chairman, clearly, all of the senior positions at the
Department of Veterans Affairs carry responsibilities that are
essential to the everyday operations of that very important
agency. But, perhaps there are few positions that are as vital
as the one that Mr. Hager would fill, if he is confirmed, and I
have every reason to believe that he will be.
VA employees are the backbone of the health care and
benefits system. It is essential that the VA have in place a
plan and a vision for recruiting and retaining tomorrow's
dedicated VA professionals. Mr. Hager has an incredible amount
of experience in overseeing the human resource programs at a
number of large American companies, and I think you highlighted
those. Those qualifications speak for themselves and have
prepared him well to lead the Office of Human Resources at the
Department of Veterans Affairs.
Mr. Chairman, I had an opportunity to sit down with our
nominee to personally talk to him--not just to ask him
questions about his background, but to ask him questions about
why he is doing what he is doing. Clearly, this is an
undertaking that not everybody would want. In the meeting, I
found him to be a serious and dedicated professional; a person
with a desire to serve veterans. But, more importantly, I found
him to be a person that truly did understand that sometimes we
are asked to serve our country and this is one of those times.
There is no doubt in my mind that his commitment to his family
and his country are the two most important things to him. Based
on these factors, I intend to support his nomination.
It is my hope, Mr. Chairman, that we can expedite this
nomination, we can get him confirmed, and the Committee can
focus on the confirmation process of General Peake. Hopefully,
before we complete this calendar year we would have a full
complement at the VA, so that we can move forward with the
debate on legislation that we have talked about this morning,
and also two recent commission reports on veterans' benefits
and where we go from the standpoint of this Committee.
I know one thing, it is impossible for us to move forward
with substantive changes unless we have a full complement of
people in place at the VA. This is one vitally important piece
that I think we can take care of in a very quick manner and,
hopefully, move on to the nomination for Secretary.
Mr. Chairman, I want to thank you for having this hearing.
I also want to apologize to you and to Mr. Hager because I am
being called right now down to a markup on the fourth floor
that I can't miss because it is my bill. That means that I may
not be here for the testimony or for the questions. But let me
assure the Chair that I have asked Mr. Hager every question
that I could possibly pose to him and he answered them better
than I ever dreamed he could. I thank the Chair.
Chairman Akaka. Thank you very much, Senator Burr.
Before I swear you in and ask for your opening statement,
Mr. Hager, in the room I hear what I consider beautiful sounds
this morning, and I note that you are accompanied by your
family. Before I swear you in, may I ask you to please
introduce your family to us.
Mr. Hager. Sir, with pleasure, and thank you very much. I
have my wife of 40 years (almost 40 years), my daughter (really
my daughter-in-law), and grandson, Christopher, who just
stepped out of the room. [Laughter].
I have a son, Mitch, on the Gulf Coast working to help
rebuild the Gulf Coast, and I have a son, Christopher, Senior,
who is a physician in Lancaster, Pennsylvania, trying to serve
his patients--who, by the way, received part of his medical
training with the VA. So, sorry he couldn't be here today. But
that is my family, the love of my life, and I thank you for
asking.
Chairman Akaka. Well, thank you very much. I want to
welcome your family to this hearing and wish you well in your
efforts here.
Will you please stand and I will administer the oath. Will
you please raise your right hand.
Do you solemnly swear that the testimony you are about to
give this Committee on Veterans' Affairs is the truth, the
whole truth, and nothing but the truth, so help you, God?
Mr. Hager. Yes, sir.
Chairman Akaka. Thank you very much. Let the record note
that the witness responded in the affirmative.
Mr. Hager, will you please begin with your testimony.
STATEMENT OF MICHAEL W. HAGER, NOMINEE TO BE ASSISTANT
SECRETARY, HUMAN RESOURCES AND MANAGEMENT, U.S. DEPARTMENT OF
VETERANS AFFAIRS
Mr. Hager. Mr. Chairman and Members of the Committee that
were here a short time ago, I do thank you for the privilege of
being here today. I am indeed honored and humbled to be
nominated by President Bush to serve as Assistant Secretary for
Human Resources and Administration for Veterans Affairs. I am
also honored by Acting Secretary Gordon Mansfield and former
Secretary Jim Nicholson for their support of my nomination.
The Department of Veterans Affairs is the second largest,
and one of the most diverse of all cabinet departments in the
U.S. Government. It touches the lives of millions of veterans,
their families, and their dependents every year.
The Chief Human Resources Officer for the Department must
provide the leadership, oversight and management of all human
capital programs and provide high-quality administrative
services to the Office of the Secretary and VA's central office
community. To be effective, the leader of H.R. must be an
active advisor to the Secretary and leadership team, on all
Human Capital asset programs.
As you have indicated, I began my preparation for this
assignment some 35 years ago, working for a defense and
aerospace contractor, Rockwell International. I have been
fortunate to have been assigned to increasingly responsible
managerial assignments in challenging and complex environments.
These experiences included being the head of Human Resources
for 15 years for Banc One Corporation, where our employment
grew from some 7,000 to about 60,000 employees.
The position I now seek, Assistant Secretary for Human
Resources and Administration for the Department of Veterans
Affairs, would be considered the pinnacle of a long career. My
inspiration to step out of a successful career path in private
for an opportunity to serve the government came from heroes
such as Corporal Pat Tillman.
My opportunity came 27 months ago when I was named
Associate Administrator for Capital Access for the SBA, Small
Business Administration. As head of Capital Access, I manage an
investment loan portfolio of about $80 billion. I also chair
the implementation of the new program, a loan management and
accounting system that will replace the legacy system at the
SBA.
My views for the leadership role for which I am being
considered are straightforward and built on a foundation of
clear communication, transparency, full disclosure, play-by-
the-rules policy, proper controls, fairness, ethics,
performance culture, human capital business integration, trust,
and respect.
Human Resources must ensure a line of sight between its
mission/strategies of Veterans Affairs and the mission/
strategies of the Veterans Affairs and the needs of American
veterans and their families. The Department must focus energies
on VA mission strategies, create leadership accountability,
honor commitments, build individual capabilities, recognize
contributions, and address performance issues.
If confirmed, I commit to a close working relationship, as
you indicated in your opening comments, with the Secretary, the
Deputy Secretary, and the entire team of the Department. I am
mindful the time available for my tenure is very limited, and
therefore will place emphasis on the value of each day, every
day. Listening and learning will be a critical part of my
success.
I close by stating the core of my passion to fulfill the
expectations as the VA's Chief Human Resource Officer is fueled
by the promise of President Lincoln, ``. . . to care for him
who shall have borne the battle and for his widow and his
orphan . . .'' If confirmed, I will strive to serve and honor
the men and women who are America's veterans.
Thank you, Mr. Chairman, and I would be delighted to
respond to any questions.
[The prepared statement of Mr. Hager follows:]
Prepared Statement of Michael W. Hager, Nominee for Assistant
Secretary, Human Resources and Management, Department of Veterans
Affairs
Mr. Chairman, Senator Burr, and Members of the Committee, I want to
thank you for the privilege of being here today.
I am, indeed, honored and humbled to be nominated by President Bush
to serve as Assistant Secretary for Human Resources and Administration
for Veterans Affairs.
I am also honored by Acting Secretary Gordon Mansfield and former
Secretary Jim Nicholson for their support of my nomination. The
Department of Veterans Affairs is the second largest and one of the
most diverse of all Cabinet departments in the U.S. Government and
touches the lives of millions of veterans, their families, and their
dependents each year.
The Chief Human Capital Officer for the Department must provide the
leadership, oversight and management of all human capital programs and
provide high quality administrative services to the Office of the
Secretary and VA's Central Office community. To be effective, the
leader of Human Resources must be an active advisor to the Secretary
and leadership team on all human capital asset management programs.
I began my preparation for this assignment some 35 years ago
working for a Defense and Aerospace Contractor, Rockwell International.
I have been fortunate to have been assigned to increasingly responsible
managerial assignments in challenging and complex environments. These
experiences included being the head of Human Resources for fifteen
years at Banc One Corporation where employment grew from 7,000
employees to about 60,000.
The position I now seek, Assistant Secretary for Human Resources
and Administration for the Department of Veterans Affairs, would be
considered the pinnacle of my long career. My inspiration to step out
of a successful career path in the private sector for the opportunity
to serve our government came from heroes such as Pat Tillman. My
opportunity came twenty-seven months ago when I was named Associate
Administrator for Capital Access for the Small Business Administration.
As head of Capital Access I manage an investment and loan portfolio of
approximately $80 billion. I also Chair the implementation of a new
Loan Management Accounting System.
My views for the leadership role for which I am being considered
are straightforward and built on a foundation of: clear communication;
transparency; full disclosure; ``play by the rules'' policy; proper
controls; fairness; ethics; a performance culture; human capital/
business integration; trust; and respect.
Human Resources must ensure line of sight between its Mission/
Strategies and the Mission/Strategies of Veterans Affairs and the needs
of American veterans and their families. The Department must focus
energies on VA Mission/Strategies, create leadership accountability,
honor commitments, build individual capabilities, recognize
contributions, and address performance issues.
If confirmed, I commit to a close working relationship with the
Secretary, the Deputy Secretary and the entire leadership of the
Department. I am mindful that the time available for my tenure is
limited and therefore will place emphasis on the value of each day . .
. every day. Listening and learning skills will be critical to my
success.
I am privileged to introduce my wife, Donna.
I close by stating the core of my passion to fulfill the
expectations as the VA's Chief Human Capital Officer is fueled by the
promise of President Lincoln ``. . . to care for him who shall have
borne the battle and for his widow and his orphan . . .'' I will strive
to serve and honor the men and women who are America's veterans.
Thank you Mr. Chairman and the Committee for your time today in
your consideration of my nomination.
I would be pleased to respond to any questions.
[The Committee questionnaire for Presidential nominees from
Mr. Hager follows:]
[A letter from the Office of Government Ethics follows:]
______
Department of Veterans Affairs,
Office of the General Counsel,
Washington, DC, September 26, 2007.
Mr. Robert I. Cusick,
Director, Office of Government Ethics
Washington, DC.
Dear Mr. Cusick: In accordance with section 2634.605(c) of title 5,
Code of Federal Regulations, I am forwarding the enclosed Public
Financial Disclosure Report (SF-278) of Mr. Michael W. Hager. President
Bush has nominated Mr. Hager to serve in the position of Assistant
Secretary for Human Resources and Administration of the Department of
Veterans Affairs (VA). It is my opinion that Mr. Hager's report is
complete and discloses no unresolved conflicts of interest under
applicable law or regulation.
Mr. Hager has agreed pursuant to 18 U.S.C. Sec. 208(a) that he will
not participate personally and substantially in any particular matter
that has a direct and predictable effect on his financial interests or
those of any other person whose interests are imputed to him, unless he
first obtains a written waiver under section 208(b)(1), or qualifies
for a regulatory exemption under section 208(b)(2). Mr. Hager
understands that the interests of the following persons and entities
are imputed to him: his wife; minor children; general partner; any
organization in which he serves as an officer, director, trustee,
general partner or employee; and any person or organization with which
he is negotiating, or has an arrangement concerning, prospective
employment.
Mr. Hager will continue to receive pension payments from his former
employers, JP Morgan Chase, Boeing North America and Federal Home Loan
Mortgage. In addition he retains an interest in a split-dollar life
insurance policy with Northwestern Mutual. Pursuant to 18 U.S.C.
Sec. 208, Mr. Hager has agreed not to participate personally and
substantially in any particular matter that will have a direct and
predictable effect on the ability or willingness of any of these
entities to honor its obligation to pay his pension or life insurance
benefits, unless he receives a written waiver, pursuant to 18 U.S.C.
Sec. 208(b)(1), or qualifies for a regulatory exemption, pursuant to 18
U.S.C. Sec. 208(b)(2).
These assurances resolve any concern about real or apparent
conflicts of interest that may arise from Mr. Hager's report.
Therefore, I have certified and dated the report.
Sincerely yours,
Walter A. Hall,
Assistant General Counsel and
Designated Agency Ethics Official.
______
Response to Written Questions Submitted by Hon. Daniel K. Akaka to
Michael W. Hager, Nominee to be Assistant Secretary, Human Resources
and Management, Department of Veterans Affairs
Question 1. How do you believe your background has prepared you for
this job?
Response. My background of over 35 years of ever increasing
leadership responsibility in human resources (HR), coupled with overall
general management experiences, have well prepared me to meet the
critical needs of the Assistant Secretary of Human Resources and
Administration (AS/HR&A) for the Department of Veterans Affairs (VA).
My career in H.R. began in the Defense and Aerospace Industry with
Rockwell International. From the initial responsibilities of managing a
compensation plan for one of Rockwell International's manufacturing
plants to managing an $80 billion loan and investment portfolio for the
Federal Government's Small Business Administration, I feel well
equipped to manage the VA's human resources function.
In recent years, I was part of a team that created a single
``corporate culture'' from an aggressive acquisition strategy that
increased its human resources base from 7,000 to about 60,000
employees. I facilitated the complete replacement of a leadership team
for one of the Nation's largest government-sponsored enterprises. My
hands-on experience range from ``Best of Class'' succession planning,
national recruiting strategies, operations consolidation, national
benefits design and implementation, to national executive and non-
executive compensation strategies. I have a strong background and
personal interest in developing and implementing H.R. metrics, and of
using metrics to foster a strong culture of performance and
accountability. Bank One was recognized by one of the national leading
authorities of H.R. strategy for creating an effective leading edge
H.R. organization strategy.
In summary, I have been extremely fortunate to have assembled a
long career of hands-on experiences that have equipped me to face
immediate and strategic challenges managing human resources. I believe
these experiences will enable me to meet and exceed the expectations
expressed for the Assistant Secretary of Human Resources position at
VA. If confirmed, I will immediately join the collective leadership of
VA to serve America's veterans and their families.
Question 2. How would you define your job as Assistant Secretary
for Human Resources and Administration?
Response. The AS/HR&A provides leadership and direction for the
Office of Human Resources and Administration (HR&A), a major staff
office of the Department of Veterans Affairs. The AS/HR&A reports
directly to the Secretary of Veterans Affairs and serves as the
principal advisor to the Secretary on human resources, occupational
safety and health, workforce diversity, equal employment opportunity,
discrimination complaint processing (resolution management), labor-
management relations, and administration matters.
The AS/HR&A heads a major organizational staff component in the
Department of Veterans Affairs, and serves as advisor to top management
officials of the Department in those areas under the jurisdiction of
HR&A.
The AS/HR&A is responsible for the development and administration
of an $94 million annual budget, providing leadership and program
direction to approximately 527 employees nationwide, and advisory
services to autonomous human resources management officers, Equal
Employment Opportunity (EEO) officers, and others administering field
programs under the HR&A's jurisdiction.
Through the development and implementation of policies and programs
designed to enhance the Department's effectiveness and efficiency in
managing its workforce, the AS/HR&A responds to the needs of a diverse
workforce of approximately 254,000 employees directly or indirectly
responsible for delivering health care, benefits and memorial services
to veterans. The AS/HR&A also provides technical oversight for the
agency's human relations offices and professional workforce, providing
policy guidance and support through site visits and educational
meetings.
Pursuant to the Homeland Security Act of 2002, the Assistant
Secretary of Human Resources and Administration is the designated VA
Chief Human Capital Officer (CHCO). The authorities and functions of
the CHCO include:
Setting VA's workforce development strategy
Assessing future workforce needs
Aligning HR's policies and programs with VA's mission
Advocating a culture of continuous learning
Benchmarking best H.R. practices
Measuring intellectual capital links with organizational
performance and growth.
Question 3. What has Acting Secretary Mansfield told you to expect
from your new position?
Response. Acting Secretary Mansfield personally conveyed several
issues for me to address if confirmed as the Assistant Secretary for
Human Resources and Administration (AS/HR&A).
Today the H.R. organization is dispersed within the elements of VA:
the Headquarters, Veterans Health Administration, Veterans Benefits
Administration, and National Cemetery Administration. There is an
opportunity to expand the agency's human resources capacity by more
effectively leveraging the four units to positively affect policy
application and add enhanced service delivery to the end user of H.R.
services.
Like many other departments and agencies, VA's hiring process can
be untimely and result in the end users of human capital having their
needs constrained as they deliver services to veterans and their
families. H.R. will work to reduce the hiring process cycle and
accelerate the on-boarding of new employees. The AS/HR&A will review
rapid-hire procedures with OPM to create an optimal process. The AS
will be expected to present an action plan for streamlining to VA's
executive leadership group within the next 4 months.
H.R. is the ``go to resource of information'' for numerous niche
talent pipelines such as the intern program, distinguished hire
program, and the physician/nursing program. Today, such programs are
underutilized due to lack of communication or promotion. H.R. will
conduct an inventory of all pipeline programs and work with the three
business lines to communicate availability and promote participation in
these programs.
Over the next 4 months, the AS/HR&A will be expected to complete an
assessment, and reengineering of the headquarters (HQ) and line of
business training programs to achieve optimum advantage throughout VA
from existing programs and offer career path development to maximize
human capital intellectual potential. ``Best of Class'' benchmarking
within the Federal Government and private industry will be assessed for
potential duplication.
Having entered the retirement age of baby boomers, it is essential
that VA aggressively implement its succession plan. The potential drain
on our human capital may be significant and the maintenance of
available human capital talent will be critical. When loss of talent
occurs, plans must be relied upon to quickly fill critical vacancies.
In support of succession planning and routine staffing
requirements, an inventory of hiring inducements must be effectively
conducted and communicated within VA. We must leverage program
enhancements and ensure consistent application of them throughout VA.
We will create programs that offer individual incentives to move from
low-cost to high-cost areas of the country. Specific programs are
critical to ensure physicians and nurses are available across the
country.
The Nursing Academy must be assessed for potential expansion into
other areas of health care. These areas will include mental health
professionals, rehabilitation specialists, social workers, and other
psychological and psychiatric experts.
Question 4. What do you believe are the most pressing challenges
confronting the Office of the AS/HR&A?
Response. VA faces significant challenges in ensuring it has the
appropriate workforce to meet current and future needs. Workforce and
succession planning represent both significant challenges and
opportunities as VA prepares to lose many of its knowledge workers to
retirement. As of September 2007, with a total population of 254,578
employees, 47,631 were eligible to retire. The challenge for the Office
of the AS/HR&A is ensuring the Administrations integrate their
workforce and succession planning targets and goals into VA's strategic
planning process and embrace automating transactional H.R. processes.
VA must also place a strong emphasis on recruitment, retention and
development of minorities, women, and people with disabilities for
leadership positions to ensure service to all veterans is fair and
sound.
The Office of the AS/HR&A faces a continuing challenge as it seeks
to ensure that the Department can effectively manage its workforce
while also meeting its labor relations obligations. VA has the second
largest workforce in the Federal Government, and the majority of its
employees are represented by Department's five national unions. The
challenge for the Office of the AS/HR&A is to ensure that the
Department works well with the unions, and the unions work well with
VA, such that critical management initiatives can be implemented
quickly to meet the needs of veterans and their families.
With respect to discrimination complaint processing, one of the
Office of the AS/HR&A most pressing challenges is ensuring compliance
with the Equal Employment Opportunity Commission's (EEOC) statutory
timeframes while maintaining quality. During fiscal year (FY) 2007,
like many Federal agencies, we experienced a challenge in meeting the
180-day timeframe for completing investigations. After implementing an
aggressive plan of action in December 2006 to address this issue, the
Office of Resolution Management (ORM) improved its cumulative average
processing time for investigations by 15 percent. Beginning in fiscal
year 2008, we will process all our investigations within the EEOC's
timeframes, making VA one of the best performing government agencies in
terms of complaint processing.
Other challenges include providing the leadership and oversight to
obtain commitment at all levels to achieving the President's Safety,
Health, and Return-to-Employment goals and meeting the Department's
socio-economic goals. The Office of Administration serves as VACO's
Simplified Acquisition Office and provides procurement operations for
VA Central Office. Finding qualified small disadvantaged businesses to
meet the needs of the Department is difficult but not impossible. For
the past 3 years, VA Central Office has met or exceeded these socio-
economic goals in support of minority, women, or veteran-owned small
businesses.
Question 5. What are your immediate and long-term priorities for
the office?
Response. As stated, VA has entered a critical, new era with its
workforce. Today's leadership will be long remembered for its success
or failure in dealing with human capital issues.
For the near term, the Department must create infrastructures that
enable VA's leadership to effectively manage the Federal Government's
second largest employee body of approximately 254,000 employees. The
Department must move from a paper processing operation to an electronic
infrastructure. The Department must create an ability to incorporate
flexibility, speed, and automation that will in turn enable VA to more
effectively deal with veterans and their families' needs. The words of
Omar Bradley ring as true today as they did in 1947, ``We are dealing
with veterans, not procedures; with their problems, not ours.''
This electronic transformation is well underway in several areas of
H.R., including the conversion of employee files from paper to an
electronic format.
Longer term, the Department is challenged with a ``War for Talent''
coupled with its ever aging workforce. The Department must create new
venues to attract a robust pipeline of talent that will serve the
critical needs of all three of its business centers. Programs ranging
from leadership development to on-the-job training for entry level
employees must become a reality. The use of veterans' pools must play a
critical strategic role in meeting the needs of VA service providers.
As AS/HR&A I will be challenged to create the formal and informal
links with VA's organizations needed to foster an environment of
intellectual growth and vigor and the day-to-day practicality to
sustain results, accomplishment, and accountability. During my tenure
as AS/HR&A the CHCO position will move to a performance-based culture
that will sow the seeds of short-term and long-term success.
Question 6. What are your views on training AS/HR&A's employees
nationwide?
Response. HR&A faces an ever increasing demand for its services
delivery to the three main veterans' providers, Veterans Health
Administration (VHA); Veterans Benefits Administration (VBA); and
National Cemetery Administration (NCA). As the service delivery to
veterans and families continues its record-breaking pace, the demand
for quality services to providers becomes critical. Tactical and
strategic training and development programs are essential.
In fiscal year 2006, H.R. conducted a thorough competency
assessment and subsequent gap analysis for its field staff for 22
identified competencies. The program was designed to provide the basis
of a training and development foundation. This foundation will enable
H.R. to pinpoint training needs/programs in contrast to traditional
programs designed for ``one program fits all.'' HR&A is currently in
the process of developing resources to address the largest competency
gaps identified during its diagnostic process.
HR&A has partnered with the three Administrations and the Office of
Information and Technology to develop a virtual H.R. Academy. This H.R.
Academy, currently in the developmental stage, will provide coursework
to address 22 competencies identified as necessary. The first step will
be to provide all VA H.R. professionals the opportunity to participate
in one of three pilot H.R. certification programs through a partnership
with the USDA Graduate School. At the completion of the program,
professionals will have the conceptual, technical and procedural
knowledge and skills necessary for an H.R. practitioner. VA-specific
coursework will be developed for mid-level and senior-level H.R.
professionals. This coursework will expand the participants'
competencies and build on the technical knowledge and concepts
previously obtained through classroom, online, university, or on-the-
job training.
In summary, training H.R. employees nationwide is critical to
accomplish short-term and long-term performance and service delivery
objectives. Training at all levels of the organization is essential.
Finally, as authorized in the Homeland Security Act of 2002, HR&A must
also apply methods for measuring intellectual capital and identifying
links of that capital to organizational performance and growth. HR&A
must be accountable and measure that effectiveness of its training
initiatives.
Question 7. Given the aging Federal workforce, how will you address
the need for succession planning for VA's workforce?
Response. VA's workforce succession planning is considered a ``best
practice'' within the Federal Government. In 2003, the American
Hospital Association predicted rapid growth in eleven selected health
care occupations. Eight of the eleven occupations are identified as
``mission critical'' in VA. The H.R. function will focus on health care
delivery positions inasmuch as the vast majority of our approximately
254,000 positions work for the VHA and represent the biggest challenge
for our recruitment staff.
VA has achieved an outstanding record in health care turnover. By
conducting an in-depth analysis of the workforce, coupled with the
implementation of several succession initiatives, major advances have
been achieved. The turnover rate in 2006 for VA health care workers was
9.9 percent, compared to the overall health care industry's turnover
rate of 20.3 percent.
In addition to specific succession planning initiatives there are
several other programs designed to protect the VA's human capital.
These programs include:
1) Programs to hire veterans (current workforce population--31
percent);
2) Hiring annuitants;
3) EEO Federal Career Intern Program;
4) Student Temporary Employment Program (STEP) and the Student
Career Experience Program (SCEP)--both available to all levels of
degree-seeking students;
5) Noncompetitive hiring authorities for the employment of
qualified persons with disabilities;
6) The use of retention bonuses and other incentives to attract
high-quality candidates (forgiveness of student loans).
Although VA's total veterans' workforce population is the largest
in the Federal Government, I am personally committed to maximize the
hiring of veterans and disabled veterans. I am committed to those
veterans who face the most challenging task for career opportunities;
those who have experienced a loss of limb/limbs; those who have
suffered spinal cord injuries; and those who have suffered traumatic
brain or neurological injuries.
The success of all succession planning initiatives is driven and
evaluated using performance/outcome matrixes. Targets will be
established and routinely tracked and reported to VA senior leadership.
Chairman Akaka. Thank you very much, Mr. Hager, for your
testimony.
You alluded to this, but specifically, I wanted to ask you,
what do you see as VA's principal challenge or principal
challenges in recruiting, training, and retaining a high-
quality of workforce?
Mr. Hager. I think, clearly, in your opening comments, you
have identified those key challenges. It is the talent, it is
the training of that talent, and it is, I believe, technology
to drive processes within the VA because of the sheer size of
it. To drive processes from a paper-intensive bureaucracy that
takes a long time sometimes to reach conclusion, to a value-
added process of using technology where at all possible.
I believe that there needs to be a major focus on how we
can develop a stronger pipeline of talent, and quite frankly,
how we can increase the veteran population within the VA. I
think it is a resource of talent, a pipeline of talent that we
can increase participation. I think in particular because of
the need, a special interest needs to be placed on those
veterans with major injuries, loss of limb. We heard today
about the mental health issues that are being dealt with. But
those all become issues that I believe need very much to be a
target of creating pipelines of talent into the VA.
Chairman Akaka. As you know, Senator Voinovich and I have
been working diligently and pressing hard on what we call human
capital issues and this is what we are talking about. It is
working with people and getting people to be able to do the
best job they can. It is a huge effort. And for me, I feel it
important knowledge that people need to know how to serve in
the position that they have, as they work with people--in this
case, veterans. I have been appalled at times when I get
complaints of workers who almost completely reject the
veterans. I wonder, what are they doing in that job if that is
true. They need to feel that they are there to help veterans
with their job and the responsibility they have.
Mr. Hager, what leadership lessons have you learned from
your over 35 years of experience in the private sector and your
2 years of government service will be of most use to you in
this position. So my question to you is what leadership lessons
have you learned in those years?
Mr. Hager. I think the only way to achieve full engagement
of the employees is through inspired leadership. I think the
individuals that you mentioned that are not friendly to the
veteran, I would challenge the leadership of that group to say
there is something wrong here. The mission is strong for this
Department. It is the strongest in our government. There can be
no greater mission, in my opinion, than to serve the veteran.
I had an interesting experience at a VA hospital yesterday.
Before I came here, I wanted to go through a process center,
hospital, meet each of the under secretaries and as much of the
leadership staff as I could. In walking through a hallway and
meeting a manager in charge of nursing and hearing about her
story of creating a volunteer group to go out to Andrews to
welcome home critically injured troops that hadn't seen their
families yet--giving up their personal time on the weekend to
do that, waiting recently on a plane that was supposed to land
at 3:30 in the afternoon. It was 4 hours late and they were
told, well, you can go home now. And they said, ``No, we are
staying. We are here for a purpose.'' She talked about the
mission. Our mission is so strong and our dedication to reach
out to these warriors, these troops, is overwhelming. I have
asked to go out with them, if confirmed, in the near future to
experience the same thing.
So, I think the leadership is the difference. You can look
at whether it be the VA or another department of the government
or certainly within Congress--accomplishments are, I believe,
driven almost exclusively by strong leadership. With it, much
gets done. Without it, it is failure.
Therefore, as I indicated in my comments, every day is
important because there are so few days left, and make the most
out of every day and drive the agenda of strong leadership. We
don't have to drive the mission, it is there.
Chairman Akaka. Mr. Hager, in your response to pre-hearing
questions, you indicated that one of your immediate priorities
would be moving VA from a paper processing operation to an
electronic infrastructure. You have also, in your prior
remarks, mentioned technology here. What processes do you view
as most in need of going electronic; and second, what ideas do
you have to make these improvements?
Mr. Hager. I was hoping you would ask me this question.
When you walk into the hospital environment--and again, I
experienced it yesterday--one of the things they are most proud
of is the electronic case and file that they have in the
hospital. And what that has done to focus care, what it has
done for the patient, it is unbelievable. What it has done to
reduce costs of processing is unbelievable.
My son, who is now a physician, to this day talks about the
VA patient technology that was implemented several years ago. I
believe a similar process can occur with employee files. I
believe a similar process can occur with a vast amount of
hiring that takes place, recruiting within the VA, to optimize
the use of technology.
Many programs are beyond the discussion stage in the VA,
and I have been delighted to hear about programs that are
either on a drawing board or just beyond it. For example, some
5,000 employee files per week are being converted to an
electronic paperless process with some of the most stringent
quality checks that I have ever seen in private. That process
is well underway and will incorporate an incredible amount of
facilitation for processing 254,000 employees.
I see the same thing in the recruiting side, to be able to
assist leadership/managers in identifying candidates for open
positions and, hopefully, technology that enables a prospective
employee to fill out a profile so that we can hone in on those
skills that we desperately need and complete a screening
process before we get into a huge paper processing scenario.
I do believe that we can enhance the quality of service, we
can enhance the retention of the people we hire, and we can
achieve something close to what has been done on the patient
side. So, technology is something that, if confirmed, from day
one until the day I leave my position I will incorporate with
intensity.
Chairman Akaka. Also, in your responses to pre-hearing
questions, you identified a problem that has plagued VA for
some time--how to reduce the hiring process cycle and
accelerate bringing new employees on board. In your experience
and given the limited time you will have with the Department,
how can this problem be addressed, especially in view of the
projected appropriation for 2008 that will allow VBA to
substantially increase staffing in order to address the current
claims backlog?
Mr. Hager. I want to see this process improved, and I have
had this discussion with the Acting Secretary. I want to see us
leverage the resources that we have in the VA, to take a look
at best practice. Who does this better than anyone within the
VA? There are many operating units in the VA, and it is not
necessarily a single business unit that perhaps creates best
practice. Kansas City may have created a process that is far
better than what we find in New York, for example. Well, let us
take Kansas City and have that group that created that hiring
process pitch their best practice to the other business units
to adopt those practices to streamline the hiring process.
I think we have to put a team together to take a look at
VA's best practices: ``in private'' best practice, the use of
technology, then drive for some project reengineering, drive to
an absolute minimum the amount of time it takes to create a
hiring document and give it to HR, to the time it takes for a
person to begin work. It is not just a VA issue within the
government. I believe it is an issue throughout the government.
I think it is also an issue that largely exists in private.
But, I do believe you have some great talent and you have
proven that talent on the medical side with technology. Many of
those same skills can be cascaded down to H.R. I intend to have
this as one of the leading priorities that I will be reporting
back to the Assistant Secretary, soon to be the Deputy, until
it is perfected to the extent possible within the time line
that I have here and create a legacy to be carried on after I
leave.
Chairman Akaka. Mr. Hager, of all government agencies, VA
should be the most conscientious, we believe, in hiring
veterans, especially disabled veterans. How would you ensure
that regional hiring authorities accord the best and the
highest priority to hiring veterans, especially those that are
disabled?
Mr. Hager. In my opinion, a disabled veteran that has gone
through rehab to the extent rehabilitation is possible, and the
person wants to work, we have an obligation to find a job for
that person. I think it is like any other critical process. It
has to be measured. We need to identify how many troops we have
in that category, particularly the ones that, again, have
suffered a serious injury. We must identify how many by region
and target those individuals by identifying critical
information on where they are, what are their skills, what is
their capability of working, what are their restrictions, if
any, and track them until we find a job for them.
The Acting Secretary announced this week that a targeted
group of people would spend full time on these kinds of
initiatives--to try to find jobs for those that have sacrificed
the most, those that have sustained serious injury, certainly
those that have lost limb, sight, or suffered some mental
injury. These veterans have to have a very significant target
for optimizing VA hires.
There are only so many priorities one can accomplish within
a short period of time, but this initiative has to be one of
the top of my priorities.
Chairman Akaka. Under the Uniformed Services Employment and
Reemployment Rights Act, called USERRA, employers, including
the Federal Government, have certain responsibilities to rehire
individuals who are seeking to return to their jobs following a
period of active service. It is particularly troublesome to me
that an individual who has been sent into battle by the
government would need to do battle with that same government
for the right to regain a job and its associated benefits.
However, that does happen and it happens far too often. Indeed,
according to the Department of Labor, more than 30 claims of
violations of USERRA were launched against VA in fiscal year
2006. This should be embarrassing to the agency and really
should not be happening. If confirmed, what will you do to make
sure VA follows the law?
Mr. Hager. Sir, going back and recapping the foundation
that I have indicated that I believe the H.R. function needs to
be built around, clearly--playing by the rules--is foremost and
there can be no second-guessing of that strategy. I don't have
information on what you have just cited. I would look forward
to the opportunity to work with you to come back with an
answer, why did that happen and what we have done to fix it.
And also from the private perspective, I would relish the
opportunity to work with this Committee on how we could create
better opportunities in private for a returning GI, of ensuring
that the job they gave up, to the extent possible, is a job
they will have when they return, and pay while they are gone,
to the extent possible to make them whole or make their
families as whole as possible. I would welcome the opportunity
to work with this Committee to do that.
Chairman Akaka. Well, I thank you so much for your
testimony, your responses, as well, and I want to thank you for
bringing your family here to this hearing today. I am happy to
have their presence here.
As you all know, this challenging position requires a
strong leader to provide direction and cultivate one of VA's
greatest resources, its quality workforce. With this in mind, I
will work to move Mr. Hager's nomination to the floor as soon
as possible.
With that, this hearing is adjourned.
Mr. Hager. Thank you very much.
Chairman Akaka. Thank you.
[Whereupon, at 10:45 a.m., the Committee was adjourned].
NOMINATION OF CHRISTINE HILL TO BE ASSISTANT SECRETARY OF VETERANS
AFFAIRS (CONGRESSIONAL AFFAIRS)
----------
THURSDAY, JUNE 26, 2008
U.S. Senate,
Committee on Veterans' Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 11:02 a.m., in
room 418, Russell Senate Office Building, Hon. Daniel K. Akaka,
Chairman of the Committee, presiding.
Present: Senators Akaka, Burr, and Isakson.
OPENING STATEMENT OF HON. DANIEL K. AKAKA, CHAIRMAN,
U.S. SENATOR FROM HAWAII
Chairman Akaka. The hearing will come to order. Good
morning.
Senator Dole. Good morning.
Chairman Akaka. It is great to have Senator Dole with us
this morning, and before I make my remarks, I would like to
call on you to make yours.
Senator Dole. Thank you very much, Mr. Chairman.
Chairman Akaka. Senator Dole?
PRESENTATION OF CHRISTINE O. HILL, NOMINEE TO BE ASSISTANT
SECRETARY, CONGRESSIONAL AND LEGISLATIVE AFFAIRS, U.S.
DEPARTMENT OF VETERANS AFFAIRS, BY HON. ELIZABETH DOLE, A U.S.
SENATOR FROM THE STATE OF NORTH CAROLINA
Senator Dole. Mr. Chairman, Ranking Member Burr, I am
delighted to be with you this morning, and indeed it is a great
privilege to introduce Ms. Christine Hill, who has been
nominated by the President to serve as the Assistant Secretary
for Congressional and Legislative Affairs at the Department of
Veterans Affairs.
I am honored to come before this Committee to express my
strong support for Christine's nomination. I have known her for
a number of years and I can assure you that she is highly
qualified. It is a pleasure today to see Christine's husband,
Greg, who is with us. He is also an Air Force pilot and a
veteran. Christine and Greg are true partners, and I saw that
firsthand. I saw their support for each other, for their
partner's career, when I was privileged to have Christine
working with me.
Christine has served as the Acting Secretary for
Congressional and Legislative Affairs since the beginning of
this year, and for the two previous years, she served as the
Deputy Assistant Secretary. Before joining the Department of
Veterans Affairs, Christine was the Director of Legislative and
Intergovernmental Affairs for the 2005 Base Closure and
Realignment Commission. In that capacity, she supervised the
production of 40 BRAC hearings across the country, arranged
hundreds of Commission meetings with elected officials, and
responded to thousands of Congressional inquiries. The 2005
BRAC was the most responsive and most accessible of the five
Commissions established to date. Much of the reason for that
achievement: Christine Hill's leadership and management skills.
Prior to her work on BRAC, Christine served as my military
Legislative Assistant for over 2 years, and she did a
magnificent job advising me on all matters pertaining to
veterans, our Armed Forces, and foreign affairs generally. She
is a 1983 graduate of the Air Force Academy and a career Air
Force officer with an outstanding record of accomplishments.
She held a number of staff, training, management, and
leadership positions before retiring as a Lieutenant Colonel.
She flew the KC-135 Stratotanker. She flew combat support
missions during the U.S. intervention in Panama and in support
of Operation Desert Storm. Christine was the first woman
assigned to fly the B-1 bomber.
She is a veteran with considerable familiarity and
knowledge of Capitol Hill. Christine has over 20 years of
experience in managing diverse programs and working with the
various branches of government, as well as business and
community organizations. In short, Mr. Chairman, Mr. Ranking
Member, Christine Hill is a strong leader. With her vast
experience and talents, she is the right person to become the
Assistant Secretary for Congressional and Legislative Affairs
for the Department. I have complete confidence that she will,
if confirmed, do an outstanding job, and I wholeheartedly
endorse her nomination and urge the Committee's unanimous
support.
Thank you very much.
Chairman Akaka. Thank you very much, Senator Dole. We hear
you, and thank you so much for that introduction of this great
nominee. Thank you for coming and for being so patient. Thank
you.
Ms. Hill, this Committee is here to consider your
nomination to be Assistant Secretary of Congressional Affairs.
I am pleased to welcome you and your husband, Greg, here. As we
say in Hawaii, aloha and welcome to our hearing.
Ms. Hill, if confirmed, you are the VA's point person for
all Congressional inquiries, for ensuring that we are kept
informed about policies, procedures, and actions at the VA. You
also have the task of ensuring that Congressional inquiries and
casework are handled swiftly and appropriately.
I note that the nominee has completed the Committee
questionnaire for Presidential nominees, which will appear in
the hearing record. Also included will be a letter from the
Office of Government Ethics acknowledging that she is in
compliance with laws and regulations governing conflicts of
interest. In addition, Ms. Hill's complete statement will be
printed as part of the record of these proceedings.
Chairman Akaka. We have heard the introduction from Senator
Dole and we are glad to have you as a nominee.
Senator Burr?
STATEMENT OF HON. RICHARD BURR, RANKING MEMBER,
U.S. SENATOR FROM NORTH CAROLINA
Senator Burr. Mr. Chairman, thank you. I have got one more
reason to support Colonel Hill today than all the things that I
have had an opportunity to observe: Her choice of individuals
to introduce her, my colleague and senior Senator. Mr.
Chairman, I am not sure if you have been exposed to Senator
Dole's introductions of nominees, but she is most thorough. She
picks up on things that date back in history that absolutely
give us a picture of the person that has been nominated, and
Senator Dole has done that as it relates to Christine Hill.
I want to welcome you. I want to thank you, Mr. Chairman,
for expediting this hearing and it is my hope that we can
expedite this process and have her in a position that is
permanent and confirmed by the Congress.
Clearly, Senator Dole covered all of the experience that
she has. Last week, I had the pleasure of visiting with Colonel
Hill. I am confident that her experience as an Air Force
officer, Capitol Hill staffer, an appointee at the VA, and most
importantly, Mr. Chairman, as a veteran, will enable her to
serve as the Department's chief liaison to Congress in an
incredibly effective way.
I would like to welcome her husband, Greg. I would like to
say to Colonel Hill, your nomination is a testament to your
capabilities and to your qualifications and I will be proud
when this Committee moves this nomination.
I thank the Chair.
Chairman Akaka. Thank you very much, Senator Burr.
I would tell you, Ms. Hill, that we will give you the oath
and ask you to please stand and raise your right hand.
I, Christine Hill----
Ms. Hill. I, Christine Hill----
Chairman Akaka [continuing]. Will swear to tell the truth,
the whole truth, and nothing but the truth, so help me, God.
Ms. Hill [continuing]. Will swear to tell the whole truth
and nothing but the truth, so help me, God.
Chairman Akaka. Thank you. Thank you very much for being
here, Ms. Hill, and we will ask you now to proceed with your
testimony.
STATEMENT OF CHRISTINE O. HILL, NOMINEE TO BE ASSISTANT
SECRETARY, CONGRESSIONAL AND LEGISLATIVE AFFAIRS, U.S.
DEPARTMENT OF VETERANS AFFAIRS
Ms. Hill. Mr. Chairman, Senator Burr, thank you for the
opportunity to testify today. I am honored and humbled to be
nominated by President Bush to serve as an Assistant Secretary
of the Department of Veterans Affairs.
I also want to thank Senator Dole for taking her time to be
here today. It is quite a privilege to have someone who I
consider to be the ultimate role model for any woman nominated
to serve in the executive branch to speak on my behalf. My time
on her staff was educational, inspirational, and my first
opportunity to see just how rewarding it is to work on issues
that are important to our Nation's veterans.
I am also most grateful to Secretary Jim Peake and Deputy
Secretary Gordon Mansfield for their confidence in me. I have
been given many wonderful opportunities over my career, most of
which came about because of leaders who saw my potential and
pushed me to further excellence. Both Secretary Peake and
Deputy Secretary Mansfield challenge the professionals of the
Department of Veterans Affairs, daily, toward greater
excellence, and I am fortunate to have learned from their
strong guidance.
With me today is my husband, Greg--a veteran Air Force
pilot, and my constant loving support for over the past 28
years.
When discussing the importance of a veteran's family, I
know only too well what is asked of a military spouse. We have
both spent sleepless nights wondering if the other would come
home safely. We have both missed numerous important milestones
and holidays. And we have both served as surrogate families
when fellow airmen needed support or a helping hand. If
confirmed, I look forward to working with this Committee to
ensure that veterans and the families of those veterans
recognize the VA as that helping hand, as well.
I am proud that I am the daughter and granddaughter of
veterans. My father was instrumental in sending me on the
wonderful journey of a military career. My father-in-law was a
Korean War Air Force veteran. These men served their country
selflessly with no expectation of anything in return; but I,
like you, want to make sure the best VA possible is there for
them when and if needed.
As a veteran of 20 years of active service in the Air
Force, I have a deep respect and appreciation for the personnel
who serve in our Armed Forces. Time and again, I saw in my
friends and my colleagues the honor, courage, and commitment
that make our military the greatest in the world. I see that in
the veterans of the wars before my time, and I see that in our
newest veterans from today's War on Terror.
I am inspired by them to help set the footprint that will
address the challenges in the future: the continuation of world
class health care; the smoothing of transition from active
military service to the status of veteran; and the efficient
delivery of earned and deserved benefits. If confirmed, I look
forward to continuing my work with the dedicated professionals
at the Department of Veterans Affairs who clearly appreciate
their mission and understand the many issues that are of
concern to our veterans.
I am committed to clear and open communications with this
Committee and all Members of Congress and their staffs. The
work this Committee does is crucial to the success of the VA
and only with the submission of timely, quality, and accurate
information can we support you effectively as part of this
team.
Thank you again, Mr. Chairman, Senator Burr, for your
consideration of my nomination. I would be happy to answer any
questions you have at this time.
[The prepared statement of Ms. Hill follows:]
Prepared Statement of Christine O. Hill, Nominee for Assistant
Secretary, Congressional and Legislative Affairs, Department of
Veterans' Affairs
Mr. Chairman, Senator Burr, and Members of the Committee, thank you
for the opportunity to testify today. I am honored and humbled to be
nominated by President Bush to serve as an Assistant Secretary at the
Department of Veterans Affairs. Senator Dole, thank you for taking the
time to be here today. It is quite a privilege to have someone whom I
consider the ultimate role model for any woman nominated to serve in
the Executive branch, speak on my behalf. My time on your staff was
educational, inspirational, and my first opportunity to see just how
rewarding it is to work on issues that are important to our Nation's
veterans.
I am also most grateful to Secretary Jim Peake and Deputy Secretary
Gordon Mansfield for their confidence in me. I have been given many
wonderful opportunities over my career--most of which came about
because of leaders who saw my potential and pushed me to further
excellence. Both Secretary Peake and Deputy Secretary Mansfield
challenge the professionals in the Department of Veterans Affairs,
daily, toward greater excellence and I am fortunate to have learned
from their strong guidance.
With me today is my husband Greg--a veteran, an Air Force Pilot,
and my constant loving support over the past 28 years. When discussing
the importance of a veteran's family, I know only too well what is
asked of a military spouse . . . we have both spent sleepless nights
wondering if the other would come home safely, we have both missed
numerous important milestones and holidays, and we have both served as
surrogate family when a fellow airman needed support or a helping hand.
If confirmed, I look forward to working with this Committee to ensure
that veterans, and the families of veterans, recognize the VA as that
helping hand as well.
I am proud that I am the daughter and granddaughter of veterans. My
father was instrumental in sending me on the journey of a military
career. My father-in-law was a Korean War Air Force veteran. These men
served their country selflessly, with no expectation of anything in
return . . . but I, just like you, want to make sure that the best VA
possible is there for them when needed.
As a veteran of 20 years of active service in the Air Force, I have
a deep respect and appreciation for the personnel who serve in our
Armed Forces. Time and again I saw, in my friends and colleagues, the
honor, courage and commitment that make our military the greatest in
the world. I see that in the veterans of wars before my time and I see
that in our newest veterans from today's War on Terror.
I am inspired by them to help set the footprint that will address
the challenges of the future...the continuation of world class health
care; the smoothing of transition from active military service to the
status of veteran; and the efficient delivery of earned and deserved
benefits. If confirmed, I look forward to continuing my work with the
dedicated professionals at the Department of Veterans Affairs who
clearly appreciate their mission and understand the many issues that
are of concern to our veterans. I am committed to clear and open
communication with this Committee and all Members of Congress and their
staffs. The work this Committee does is crucial to the success of the
VA and only with the submission of quality, timely and accurate
information can we work effectively as a team.
Thank you again, Mr. Chairman and Members of the Committee, for
your consideration of my nomination. I would be happy to answer any
questions you may have.
[The Committee questionnaire for Presidential nominees from
Ms. Hill follows:]
[A letter from the Office of Government Ethics follows:]
Chairman Akaka. Thank you very much for your testimony, Ms.
Hill.
You have worked for the VA for over 2 years and have done
the job you are seeking for over 5 months. What do you see as
the biggest challenge facing VA in the near future, and VA
Congressional Affairs?
Ms. Hill. Mr. Chairman, I see the biggest challenge in the
short-term is to continue our effort to ease the transition
between DOD and VA, to make it as seamless as possible.
Currently, there is unprecedented dialog between senior
leadership and the employees of DOD and VA to try and work
forward in that effort and I want to make sure that that dialog
continues. We are making considerable inroads in making that
transition as seamless as possible in the short-term and for
the future. We need to continue down that path.
Also, in the processing of disability claims, that system--
it needs to be improved. As was mentioned earlier, we have
rooms of paperwork, old-fashioned mailroom-type setups. We need
to press forward in technological solutions to improve
timeliness, efficiency, and to just provide the best customer
support for our veterans as possible.
As far as Congressional affairs, short-term, not so much a
challenge as an opportunity. In the short-term, we need to
continue to educate and advocate and make sure that
Congressional staffs, Congressional committees, and our
veterans know what the VA is doing, how we are doing it, and
how we can continue to improve.
Chairman Akaka. Ms. Hill, what do you see as your role in
VA policymaking?
Ms. Hill. Mr. Chairman, often I consider the Office of
Congressional Affairs in the example of, we don't make the
ball, we make the ball bounce. My role is not so much in making
policy, but certainly in influencing it. By working with this
Committee, with our other oversight committees, and Members of
Congress, I have ready access to the trends and the views of
your constituents, of our veterans, and for me, in a policy
influencing role. I am in a unique position to help determine
what direction that policy should proceed based on the inputs
that you receive from veterans, which is often different from
the inputs that we receive.
Chairman Akaka. I trust that you will agree that if
confirmed, one of your priorities will be ensuring the timely
receipt of testimony and other deliverables to this Committee.
As you know, we have had a number of unfortunate incidents with
late testimony and late deliverables to this Committee this
Congress. I would like your assurances that you will put timely
and accurate receipt of information to this Committee at the
top of your priority list.
Ms. Hill. Absolutely, sir.
Chairman Akaka. Thank you so much for that, and with that,
that is my final question.
Senator Burr?
Senator Burr. Mr. Chairman, thank you. I had an opportunity
to ask her every question the other day that really was
appropriate for me to ask, but I would like to reinforce a
couple of points and make one additional one.
Mr. Chairman, I am convinced that if there is anybody that
fills this role who can actually influence when testimony comes
to this Committee, we are looking at her.
Ms. Hill. That is correct, sir.
Senator Burr. I have got unbelievable confidence in it, but
I also understand that our expectations can't shoot higher than
even what somebody like Colonel Hill can do.
I think it is also important that we tend to focus on the
communications to Congress from a standpoint of your role, and
I want to urge you to communicate back to the VA the true
understanding you get from this Committee and from its Members
of the things that we are concerned with. I think we have a
tendency, as an institution--not as much this Committee but as
an institution--to be a crisis management tool. I think our
Founding Fathers envisioned that we would be a visionary
institution, that we would address problems before they were
problems. Therefore, veterans never felt it. The American
people never felt it.
I think we have failed at that. We don't accomplish that
just with the communication coming from the executive branch to
the legislative branch. It has to be a unique understanding by
the executive branch of what the heartbeat of the Congress is
at any given point in time, and I hope that that line of
communication will work both ways from the standpoint of
yourself.
Mr. Chairman, I think it is incredibly difficult. Most
nominees that we have come in have quite a period of time to
accomplish their own personal goals and, I think, the
challenges that the job entails. That is not the case for
Colonel Hill. It is a very short period of time.
I would encourage you, as you begin to look at your own
personal goals and how you can make your mark on the role that
you play, that you really take into account the length of time
that you've got. It is advantageous to this Committee, its
Members, to you, and to the VA, but, more importantly, to the
veterans, that we succeed at whatever levels you shoot for and
whatever impact you have targeted.
Again, Mr. Chairman, I thank you for having this hearing. I
think this is a superb nominee. I would hope that the Committee
and the Members and the staff would do everything they can to
expedite this as quickly as we can.
Chairman Akaka. Thank you very much, Senator Burr. We
certainly will expedite it.
Let me ask Senator Isakson for any remarks and questions he
may have.
STATEMENT OF HON. JOHHNY ISAKSON,
U.S. SENATOR FROM GEORGIA
Senator Isakson. Thank you, Mr. Chairman. I came back
because I was so impressed with Colonel Hill when I met her.
You know, a lot of times, we have people who are recommended
for jobs and if you read their resume, you question sometimes
the match between the life experience and the job ahead.
Colonel Hill is a decorated veteran, a B-1B pilot, a KC-135
pilot, who also worked in Elizabeth Dole's office. So she has
worked both sides of Congressional liaison, from being a
veteran and being a distinguished officer to actually seeing
how we work.
But I did want to make a point with regard to something
both you and Senator Burr referred to. The VA has reminded me
the last couple of years of a major league catcher without a
mitt. I mean, they have gotten fired at, fast balls right and
left. There are some really great stories coming out of what
has happened in the last 2 to 3 years in this Congress and what
the Veterans Administration has done.
So I hope as a Congressional liaison officer, you will help
to bring those stories back to Members of Congress. I have 13
installations in my State, an awful lot of veterans, and I go
visit them. So, I have seen the Warrior Transition Centers that
have been brought about and what a difference they are making;
the seamless transition between DOD health care at Eisenhower
and Augusta and the Uptown Augusta VA Center; and these are all
things that weren't happening 4 or 5 years ago and they have
happened because the VA has taken direction and has taken its
own initiative, as well.
So, I just came to commend Colonel Hill and her service to
the country and her desire to continue to serve, and tell you
that this is one of those rare situations where we have someone
who is absolutely, unequivocally qualified to do the job from
day one, and I hope we will confirm her as quickly as possible.
Senator Burr. Mr. Chairman?
Chairman Akaka. Senator Burr?
Senator Burr. May I, on behalf of Senator Isakson and I--
since I am sure I have been asked and I am sure he has been
asked, to--make the point that the Augusta VA facility is a
unique facility; that the folks that work there are very proud
of and would very much like the Secretary to come down and
visit. I would be remiss if I didn't, on behalf of both of us,
say that. As you are going through your confirmation hearing,
Colonel Hill, please make sure that you pass that on to the
Secretary, and I think you would find that Senator Isakson and
I might both visit. We might even get the Chairman to go with
us if, in fact, the Secretary can accommodate that.
Ms. Hill. Sir, I will certainly pass that on.
Senator Isakson. Mr. Chairman?
Chairman Akaka. Senator Isakson?
Senator Isakson. Since Senator Burr brought that up, let me
just tell you a remarkable story. I held a hearing there last
August on veterans' benefits and seamless transition and
wounded warrior and PTSD and TBI. After the hearing--of which
there were 250 attendees and the Washington Post covered the
hearing themselves--we took a tour of the hospital. And as we
turned the corner in the VA facility, a sergeant walks by and
the director of the facility stopped her and said, ``Sergeant
Harris, would you come over here a minute,'' and introduced
Sergeant Harris to me.
Sergeant Harris is a Georgian. She went to Iraq. The second
day she was in Iraq, her vehicle was hit with an IED. She had a
Traumatic Brain Injury, came back to the DOD, came back to
Walter Reed, and was finally severed because they couldn't
quite get the TBI corrected. She moved back home, and in this
seamless transition, Eisenhower handed her off, so to speak,
seamlessly to the doctors at the Uptown VA facility, who
immediately began treating the TBI. Within 3 months, it had
been corrected. She reenlisted and went back to Iraq.
Now, that is one of the more remarkable stories, but it
shows you how--with the coordinated effort between DOD and
Veterans Health and the attention that is now being given in
Veterans Health to TBI and PTSD--that we are making some
remarkable recoveries; and it is a prime example that the
Secretary should see as soon as possible. So we would love to
have you all down any time.
Ms. Hill. Definitely.
Chairman Akaka. Well, if there are no further comments, I
want to thank you so much, Ms. Christine Hill, and your
husband, Greg, for being here today. It is imperative that this
position be filled by a dedicated and responsive leader and
this is what has been mentioned. With this in mind, I will work
to move Ms. Hill's nomination to the floor as soon as possible
with their help. We will do that, and I am saying this for our
staff to also help us do this. We need to get you confirmed.
So thank you very much for being here. This hearing is
adjourned.
Ms. Hill. Thank you.
[Whereupon, at 11:25 a.m., the Committee was adjourned.]
NOMINATION OF HON. PATRICK W. DUNNE TO BE UNDER SECRETARY FOR BENEFITS
OF THE DEPARTMENT OF VETERANS AFFAIRS
----------
WEDNESDAY, SEPTEMBER 17, 2008
U.S. Senate,
Committee on Veterans' Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 10:09 a.m., in
room 418, Russell Senate Office Building, Hon. Daniel K. Akaka,
Chairman of the Committee, presiding.
Present: Senators Akaka, Murray, Tester, and Burr.
OPENING STATEMENT OF HON. DANIEL K. AKAKA, CHAIRMAN,
U.S. SENATOR FROM HAWAII
Chairman Akaka. Good morning, everyone. This hearing will
come to order.
The Committee convenes today to consider the nomination of
the Honorable Patrick Dunne to be Under Secretary for Benefits.
I am pleased to welcome Admiral Dunne and his family to today's
hearing. Admiral Dunne is accompanied by his wife, Diane, his
daughter, Erin, and his son, Patrick. We are glad to have you
here, and I welcome each of you.
The nominee before the Committee today had a long and
distinguished career in the United States Navy before retiring
as a Rear Admiral in December 2005. He was nominated to serve
as VA's Assistant Secretary for Policy and Planning in May 2006
and this Committee held a hearing and sent his nomination
forward to the full Senate, which confirmed him on August 3,
2006. He continues to hold this position while also being
designated as the Acting Under Secretary for Benefits since
Admiral Cooper's retirement in April of this year.
Admiral Dunne, having performed the duties of this office
for the past 5\1/2\ months, I know you are aware of the many
challenges that are facing the Veterans Benefits
Administration. The backlog of disability compensation claims
remains a major concern, even as VBA continues to explore
fundamental reforms to the structure of disability compensation
benefits. Based on your testimony and thoughtful responses to
questions at this Committee's recent hearing on claims
processing, I know that you understand the Committee's concern
that claims be processed as timely and as accurately as
possible.
There are also important decisions to be made regarding the
administration's G.I. Bill for the 21st Century, which was
recently signed by the President. It is also critically
important that the Under Secretary for Benefits be personally
committed to the joint efforts of VA and the Department of
Defense to meet the needs of servicemembers transitioning from
active to veterans' status.
The Committee realizes that there are only a few months
left in the current administration and it is uncertain how much
time you will have to tackle these challenges. Typically, this
late in the second term of an administration, I would really
not seek to act on a nomination and would leave the acting
official in place for the duration of the term. However, given
the nominee before the Committee is the acting official and
because you have been performing the duties of the office for
5\1/2\ months--and from where we are, you have been doing a
good job--I believe it prudent to give you the clear authority
and responsibility that accompanies Senate confirmation. This
will enable you to effectively lead the VA to the end of the
term and ensure a successful transition to the next
administration.
I note that the nominee answered my pre-hearing questions
and also has completed a Committee Questionnaire for
Presidential Nominees, which will appear in the hearing record.
Also included will be a letter from the Office of Government
Ethics acknowledging that the nominee is in compliance with the
laws and regulations governing conflicts of interest. In
addition, Admiral Dunne's complete statement will be printed as
part of the record of these proceedings.
I would like to at this time acknowledge the presence of
the Deputy Secretary of Veterans Affairs, Gordon Mansfield, who
I met before he appeared in this room today. He is joining us
today at this confirmation hearing at the request of Secretary
Peake. Secretary Mansfield, I want to thank you for your
service. I appreciate the relationship you have with the
Department of Defense and how you have worked well with Deputy
Secretary England in talking about issues for our military and
our veterans. So, thank you very much for being here, Secretary
Mansfield.
Before I administer the oath to Admiral Dunne, I would like
to call on our Ranking Member, Senator Richard Burr, for his
statement.
STATEMENT OF HON. RICHARD BURR, RANKING MEMBER,
U.S. SENATOR FROM NORTH CAROLINA
Senator Burr. Aloha, Mr. Chairman. Thank you not only for
holding this hearing, but thank you for the comments that you
just made. I think it is particularly important--there is a
tendency in this institution at some late date to leave the
word ``acting'' in front of somebody's name. This is clearly an
individual that deserves to have that part dropped.
Gordon, it is great to see you here today and thank you for
being here to support the Admiral as we consider the
nomination.
Admiral, welcome to you and to your family. I intended to
say to your family a minute ago that the seeming lack of
participation is a good thing. I don't want you to take that as
a bad thing. That is an indication that people aren't
concerned. They have tremendous confidence. With the arrival of
two additional Members, I look at them and would still tell
you, don't worry. They are individuals that take very seriously
the leadership that we have at the Department of Veterans
Affairs. And we are all, collectively--us on this side as well
as you, Admiral, and the staff that you have--anxious to sort
out the benefits area as quickly and as efficiently as we can.
And I personally know that that is your goal.
Some of the biggest challenges will involve the processing
of claims. We all know the system has been plagued with many
years of challenges and large backlogs and long delays. In
fact, despite recent boosts in funding and staffing, it is
still taking about 6 months to get decisions to veterans. There
are more than 390,000 pending claims, among the highest level
in 10 years. I know you think this is unacceptable, as does
Congress.
Also, VBA still uses a largely paper-based claims
processing system. This can cause delays and frustrations from
our Nation's veterans whose files must be physically moved from
one place to another, and only one person can work on a file at
a time. I think most would agree that moving to a modern
electronic system is long overdue.
There are also large differences in the services that are
provided by VA's 57 regional offices around the country. Some
have consistently exceeded expectations while others have
historically struggled. On top of that, VA's Disability Rating
Schedule, which is the cornerstone of the entire claims
process, has been outdated for many years and it needs to be
updated.
Now, I don't sit here today with any strong beliefs that
between now and the end of next week, we are going to solve
that, yet that seems to be the timeline that we are on. But I
believe that the work that you do between now and the end of
this year will pave the way to our ability, collectively,
between Congress, the VSOs, and the Department, to change that
system into a 21st century disability system: one that is
understandable; one that is manageable. More importantly, one
that truly does reach the needs of our veterans in a timely
fashion.
Also, VBA is in the process of implementing the new
veterans' education program. It would require an extraordinary
effort to do that by next fall while making sure there is no
disruption in service for our veterans or their families.
Admiral, this is a big undertaking. With the benefits of
your military career, your work at the VA, as both Assistant
Secretary for Policy and Planning and Acting Under Secretary
for Benefits, I am confident that you are prepared to lead VBA
trough a very challenging period of time. You have extensive
leadership experience, a lifetime of dedicated service to our
Nation, and an understanding of the needs of our Nation's
veterans, which I think is absolutely crucial.
Admiral, I thank you for your willingness to serve and,
more importantly, to serve our veterans and their families in
the role of Under Secretary for Benefits. I hope that in the
few months remaining you will set in motion the types of
improvements that will benefit veterans' lives for years to
come.
Mr. Chairman, again, I want to thank you for holding the
hearing. I intend to support Admiral Dunne's nomination. I hope
the Committee will support this nomination. I hope the Senate
will act quickly and that Members will find ways to get over
differences they might have with some aspect of what VA as an
agency does, and bury the hatchet to allow good people to
actually serve in the capacity that I think will help our
Nation's veterans. I would urge my colleagues for quick action
on this confirmation.
I thank the Chair.
Chairman Akaka. Thank you very much, Senator Burr from
North Carolina.
And now from the State of Washington, we will hear from
Senator Murray.
STATEMENT OF HON. PATTY MURRAY,
U.S. SENATOR FROM WASHINGTON
Senator Murray. Thank you very much, Chairman Akaka,
Senator Burr. I really appreciate you holding this hearing
today on the nomination of Admiral Patrick Dunne. If he is
confirmed to be head of the VBA, he will be responsible for a
$52 billion budget that provides compensation and pensions to
nearly four million veterans and survivors; administer the G.I.
Bill and VA Home Loan Guarantees; and will be responsible for
many other programs, as well.
At a time of war, I think it is especially important that
we do everything in our power to make sure that the benefits
that we do provide to our veterans meet today's needs and don't
lag behind. Mr. Chairman, I am sure I speak for every Member of
this Committee and every Member when I say that our country has
an obligation to give our servicemembers everything they need
from the time they begin basic training to deployment to when
they return home.
But still, too often today when I talk to veterans in my
home State of Washington, I hear stories from veterans who are
forced to wait months, if not years, to get their VA claims
processed. I hear stories about veterans with the same illness
getting vastly different ratings and benefits across the
country. And I hear about the increasing complexity and number
of claims being processed by the VBA.
Now, this Congress has taken some concrete steps to address
these problems, but there remains an awful lot of work left to
be done. The list of challenges facing the VBA right now is
really long, but if confirmed, the time Admiral Dunne will have
to tackle them is extremely short. So, I look forward to
hearing from you today, Admiral, about how you are going to
prioritize the many challenges that are facing the VBA today.
I also look forward, Mr. Chairman, to hearing from Admiral
Dunne about the implementation of the Post-9/11 G.I. Bill. We
had a meeting last week with Admiral Dunne. I appreciate the
time you took, and I talked about the number of concerns I have
about the VA's plan to outsource the launch of this updated
program and I look forward to more time to talk about that
today during the question and answer period.
But again, Mr. Chairman, thank you very much for holding
this hearing and I appreciate the opportunity to talk to the
Under Secretary--hopefully, soon, beyond acting--to deal with
the issues facing our veterans today.
Chairman Akaka. Thank you very much, Senator Murray.
And now we will receive the statement of Senator Tester.
STATEMENT OF HON. JON TESTER,
U.S. SENATOR FROM MONTANA
Senator Tester. Thank you, Chairman Akaka, and thank you,
Ranking Member Burr. I also appreciate this hearing. I want to
welcome Diane, Patrick, and Erin. I appreciate your support of
Admiral Dunne in his service to this country. I want to, of
course, welcome you, Admiral Dunne, to this hearing. We have
worked on some stuff in the past and I look forward to working
with you during the remainder of your tenure.
I think the Senator from Washington covered much of what I
had to say. I appreciate your service and I look forward to
your statement and look forward to the questions and answers
that follow. What I am going to be looking for is: your
transition, your plans for transition to the next
administration; implementation of the 21st Century G.I. Bill;
how you plan on implementing benefits, particularly for rural
frontier areas. It is a big issue, contracting, those kinds of
things--what your vision is for the VA in those areas.
I can tell you that every time I go back to Montana--we
have got a high percentage of veterans in the State, you know
that--I do hear about discrepancies in ratings and things like
that. So, hopefully, we can also have a discussion about that
ratings schedule and the template and your vision for moving
forward on that, because I agree with Senator Burr. I think it
does need to be modified, updated, whatever you want to call
it.
So, thank you. I look forward to the hearing. Thank you,
Chairman Akaka.
Chairman Akaka. Thank you very much, Senator Tester.
Now, may I ask Admiral Dunne to please stand to take the
oath and repeat after me. I, Patrick Dunne, swear to tell the
truth----
Admiral Dunne. I, Patrick Dunne, swear to tell the truth--
--
Chairman Akaka [continuing]. The whole truth, and nothing
but the truth, so help me, God.
Admiral Dunne [continuing]. The whole truth, and nothing
but the truth, so help me, God.
Chairman Akaka. Thank you. Will you please proceed with
your statement, Admiral.
STATEMENT OF HON. PATRICK W. DUNNE, NOMINEE TO BE UNDER
SECRETARY FOR BENEFITS, DEPARTMENT OF VETERANS AFFAIRS
Admiral Dunne. Mr. Chairman, Senator Burr, Senator Murray,
Senator Tester, good morning and thank you for the opportunity
to testify today. I am honored and humbled to be nominated by
President Bush to serve as Under Secretary for Benefits at the
Department of Veterans Affairs. I am also most grateful to
Secretary Peake and the Selection Commission for their
confidence in me.
Mr. Chairman, thank you for acknowledging my family this
morning. They are very important to me and I am, indeed,
grateful for their constant love and support.
Twenty-six months ago, when I appeared before this
Committee for confirmation to my current position, I spoke of
my commitment to public service based on a respect and
appreciation for the personnel who I served with in the United
States Navy. Today, my commitment is strengthened by my first-
hand interactions, not only with our many veterans who rely on
VA, but also with the many dedicated VA employees who serve
those veterans.
As a Member of the Task Force on Returning Global War on
Terror Heroes and the Senior Oversight Committee, I have been
privileged to contribute to the efforts to improve all aspects
of the continuum from active or reserve duty to veteran status.
If I am confirmed, I am prepared to continue working with my
fellow VA employees, the Department of Defense, and Congress to
ensure our veterans are aware of their benefits, can easily
apply for them, and receive an accurate and timely decision to
their application.
To accomplish this, I think there are three areas that
require continuous effort. First, communications with our
veterans and servicemembers are essential.
Second, the best tools available via technology must be
provided to our employees to help them work accurately and
expeditiously. In addition, we must allow veterans to
communicate with us electronically, consistent with the latest
technology.
Third, I intend to ensure that every VBA employee has the
requisite training to be effective in his or her job.
Technology is not the magic wand that will deliver benefits
rapidly and accurately. Rather, we need a well-trained
workforce that can effectively use those tools.
But in the end, I think it is about leadership, and that is
why I seek your confirmation. I am prepared to provide the
leadership necessary to ensure VBA moves ahead with electronic
processing, reaches out to all our veterans and servicemembers,
and responds to their requests in the minimum time with an
accurate answer.
The Under Secretary for Benefits is also a member of the
One VA Team, and if confirmed, I intend to give my very best
effort to work diligently with the other administrations and
faithfully advise the Secretary and Deputy Secretary.
Mr. Chairman and Members of the Committee, thank you again
for your consideration of my nomination and I would be happy to
answer any questions you may have.
[The prepared statement of Admiral Dunne follows:]
Prepared Statement of Patrick W. Dunne, Nominee for Under Secretary for
Benefits, Department of Veterans Affairs
Mr. Chairman, Senator Burr, and Members of the Committee, good
morning. Thank you for the opportunity to testify today. I am honored
and humbled to be nominated by President Bush to serve as Under
Secretary for Benefits at the Department of Veterans Affairs. I am also
most grateful to Secretary Peake and the selection commission for their
confidence in me.
With me today are my wife, Diane; my daughter, Erin; and son,
Patrick. I am very grateful for their constant love and support.
Twenty-six months ago when I appeared before this Committee for
confirmation to my current position, I spoke of my commitment to public
service based on a respect and appreciation for the personnel who I
served with in the United States Navy.
Today, my commitment is strengthened by my first-hand interactions,
not only with many of our veterans who rely on VA, but also with the
many dedicated VA employees who serve those veterans. As a member of
the Task Force on Returning Global War on Terror Heroes and the Senior
Oversight Committee, I have been privileged to contribute to the
efforts to improve all aspects of the continuum from active or reserve
duty to veteran status.
If I am confirmed, I am prepared to continue working with my fellow
VA employees, the Department of Defense, and Congress to ensure our
veterans are aware of their benefits, can easily apply for them, and
receive an accurate and timely decision to their application.
To accomplish this, I think there are three areas that require
continuous effort.
First, communications with our veterans and servicemembers are
essential.
Second, the best tools available via technology must be provided to
our employees to help them work accurately and expeditiously. In
addition, we must allow veterans to communicate with us electronically,
consistent with the latest technology.
Third, I intend to ensure that every VBA employee has the requisite
training to be effective in his or her job. Technology is not the magic
wand that will deliver benefits rapidly and accurately. Rather, we need
a well-trained work force that can effectively use those tools.
But in the end, I think it is about leadership, and that is why I
seek your confirmation. I am prepared to provide the leadership
necessary to ensure VBA moves ahead with electronic processing, reaches
out to all our veterans and servicemembers and responds to their
requests in the minimum time with an accurate answer.
The Under Secretary for Benefits is also a member of the One VA
team, and if confirmed, I intend to give my very best effort to work
diligently with the other Administrations and faithfully advise the
Secretary and Deputy Secretary.
Thank you again, Mr. Chairman and Members of the Committee, for
your consideration of my nomination. I would be happy to answer any
questions you may have.
[The Committee questionnaire for Presidential nominees for
Admiral Dunne follows:]
[A letter from the Office of Government Ethics follows:]
______
Response to Written Questions Submitted by Hon. Daniel K. Akaka, to
Patrick W. Dunne, Nominee to be Under Secretary for Benefits,
Department of Veterans Affairs
Question 1. What do you believe are the most important problems and
challenges currently confronting VBA? Which of these problems and
challenges will you focus on and how do you intend to address them
during what may be a short term in office? How might you set the stage
for the next administration's work?
Response. Through my experience as the Department of Veterans
Affairs (VA) Assistant Secretary for Policy and Planning and my work as
a member of the VA Department of Defense (VA/DOD) Strategic Oversight
Committee and Joint Executive Council, I have a strong understanding of
the issues and challenges facing the Veterans Benefits Administration
(VBA) as we work to proactively support our returning service men and
women in their readjustment and reintegration to civilian life and
deliver timely and accurate benefits to veterans of all eras.
I believe there are three areas that require continuous effort.
First, improving communications with our veterans is critical. Second,
the best tools using technology must be provided to our employees to
help them work accurately and expeditiously. In addition we must allow
veterans to communicate with us electronically consistent with the
latest technology. Third, I intend to ensure that every VBA employee
has the requisite training to be effective in their job. Technology is
not the magic wand that will deliver benefits accurately and rapidly.
Rather, we need a well-trained work force that can effectively use
those tools.
I am prepared to provide the leadership necessary to ensure VBA
moves ahead with electronic processing, reaches out to all our veterans
and servicemembers, and responds to their requests in the minimum time
with an accurate answer. My top priorities include improving the
timeliness and quality of benefits delivery, transitioning to paperless
claims processing, training, and implementing the new GI Bill. If
confirmed, my strategy will be to provide strong management attention
to the initiatives currently underway and continue to examine the
business processes we use to serve veterans.
Question 2. What is your management style? Are you a ``hands-on''
manager? Do you rely on significant delegation? Do you seek consensus
with those on your management team before making a decision or do you
generally gather relevant information and input, and then make a
decision?
Response. Certainly in an organization as large as VBA and with the
complexity of the programs that VBA administers, significant authority
must be delegated. However, I consider myself a ``hands on'' manager in
that I am actively involved and engaged in all major operational and
policy issues and aggressively follow up to ensure progress is achieved
and accountability maintained. While achieving consensus in some
instances is appropriate, if confirmed, I will seek the best technical
advice and input from subject matter experts and make key decisions--
with or without consensus.
Question 3. One of the biggest challenges that VA is facing is the
implementation of the new Post-9/11 GI Bill, which was signed into law
on June 30, 2008. The full effective date of the new program of
educational assistance is August 1, 2009, which means that VA has less
than 1 year to prepare for massive changes. What are your thoughts on
how VA might best prepare for implementation of the new program?
Response. First, communicate to veterans the details of the program
so that those who are eligible and desire to participate are ready to
apply as soon as the application process begins. We are already using
the internet, call centers, and the media to provide information.
Second, VA does not currently have an information technology (IT)
system capable of implementing this program. We moved expeditiously to
procure the IT development capabilities needed. The goal is to apply
current technological standards to create a rules-based system which
will expeditiously and accurately enroll our veterans and make the
necessary payments.
Third, ensure VA employees are properly trained to provide the
necessary oversight of the IT solution and be prepared to intervene
under circumstances that do not fit the rules-based engine.
Question 4. Concerns have been raised to me about VA's decision to
utilize the services of a contractor for initial implementation of the
new program. Please share your thoughts and any concerns you may have
regarding this decision.
Response. The new eligibility and payment structure created by the
Post-9/11 GI Bill is a significant departure from VA's current payment
system, and is far more complex than the current monthly payments made
under other benefit programs. VA's existing eligibility and payment
system, developed in the 1970's, is unable to support the new structure
required for implementation of this program. To meet the statutory
deadline of the Post-9/11 GI Bill, VA is seeking private-sector
contractor support to develop and provide an IT solution for a new
eligibility and payment process.
Based on the implementation strategies being pursued, VA does not
anticipate the loss of Federal employment for any present VA education
employees. Since the Post-9/11 GI Bill will result in tuition and fee
payments being made to educational institutions, some current claims
processing resources will be shifted to increased compliance and
oversight responsibilities. VA employees will continue to staff and
operate the nationwide Education Call Center in Muskogee. VA employees
will also continue to respond to all on-line inquiries received through
the VA Web site, including Post-9/11 GI Bill inquiries.
Question 5. In your view, how long should a veteran have to wait to
have his or her initial claim for compensation adjudicated?
Response. The transition between military and civilian life can be
challenging for all servicemembers, but especially to those who have
incurred a disability in the military. I believe the benefits delivery
at discharge process, the goal of which is to deliver benefits within
30 to 60 days of separation, is the best method. I will continue to
work with my counterparts at DOD to expand the program beyond the
current 152 sites and work to ensure benefits information is provided
to servicemembers at the earliest possible time so that more claims are
received prior to discharge.
Question 6. Describe how you intend to work with the Secretary and
two other Under Secretaries.
Response. If confirmed, as a member of the ``One VA'' team, I
intend to give my very best effort to work diligently with the other
administrations and faithfully advise the Secretary and Deputy
Secretary.
Question 7. How do you plan to work with the veterans service
organizations? Do you anticipate meeting with the VSO representatives
on a regular basis?
Response. I understand and appreciate the important partnership VA
has with the veterans service organizations (VSO). I plan to work
collaboratively with the VSOs--and with complete transparency. I have
had several opportunities since April 2008 to discuss issues with VSO
representatives and have found these sessions very helpful. If
confirmed, I intend to continue to regularly consult with them in the
future.
Question 8. VBA has come under fire for the lack of timeliness of
its claims processing. While VBA has made progress in improving
timeliness and accuracy of disability claims processing, further
improvement is needed. VBA turned its attention to decreasing the
amount of time it takes to process a claim, but that improvement seems
to be at the cost of a decrease in the quality of its decisionmaking.
Do you have any views on how a more balanced approach can be reached?
Response. In my short tenure as Acting Under Secretary, I have
participated in numerous discussions with Secretary Peake and VBA staff
on the issue of claims accuracy. We are currently closely tracking not
just production but also accuracy of the production. I believe all
those involved in claims processing are dedicated to getting it right
the first time. Accuracy means less rework and therefore increased
production. I am aware that the former Under Secretary made
considerable investments in training programs, and I believe this is
critical to the future success of VBA. I also believe a robust system
of oversight and quality assurance is an essential component of a
balanced approach to claims processing. Improvements will be achieved
with appropriate levels of resources, more and better training, and up-
to-date tools and technologies to support the decisionmaking and
oversight process. If confirmed, I will explore all avenues to improve
decision accuracy and consistency, as well as claims processing
timeliness.
Question 9. Accurate forecasting of usage of veterans benefits is
essential in planning for resources to administer those benefits. What
do you see as the Under Secretary's role in forecasting the need for
additional staffing resources so that Congress can appropriate those
resources in a timely manner?
Response. If confirmed as Under Secretary, I will monitor program
needs and analyze usage and performance data to ensure that VBA
appropriately addresses the needs of the veterans we are charged to
serve. I will also ensure strategic plans are formulated to ensure we
are accurately addressing staffing and other budgetary needs. An open
dialog will be maintained with stakeholders, including Congress, to
proactively address resource issues.
Question 10. Many in the newest generation of veterans are
technologically savvy. Veterans can submit claims for compensation over
the Internet. However, such applications are not integrated into the
claims process. Do you believe VA has a role in improving the use of
technology for the processing of initial applications for compensation
and to aid in the timeliness and accuracy of claims adjudication?
Response. I believe that the best technological tools must be
provided to our employees to help them work accurately and
expeditiously and that we must allow veterans to communicate with us
electronically, consistent with the latest technology. Since appointed
as Acting Under Secretary for Benefits, I have aggressively worked to
develop the paperless delivery of veterans benefits initiative and
achieve rapid progress. This initiative employs a variety of enhanced
technologies to support end-to-end claims processing. In addition, I
have directed that we redesign and enhance our existing on-line
application process. As part of this redesign, the data supplied by the
veteran will be integrated into the claims processing system to
alleviate the redundant re-keying of information from the application.
This redesign will also provide the framework for providing other types
of ``self service'' capabilities to veterans, such as change of address
or banking information, checking the status of a pending claim, and
submission of evidence.
Question 11. For some medical conditions that occur after service,
the scientific information needed to connect the medical condition and
the circumstances of service may be incomplete. When information is
incomplete, Congress or the Secretary of Veterans Affairs has authority
to presume disabilities and diseases as service-connected for purposes
of compensation. If confirmed as Under Secretary, what would be your
approach for recommending whether presumption is warranted?
Response. I believe presumptions are appropriate when information
and the state of medical knowledge are incomplete and, as a result,
there is a substantial risk that meritorious claims would otherwise be
denied. However, any decisions must be fully informed, and supported
and guided by the medical science that does exist.
Question 12. At the present time, military recruiters are actively
recruiting servicemembers from countries in the Pacific Islands, such
as the Federated States of Micronesia. Some veterans' benefits, such as
vocational rehabilitation services, VA home loans, and health care are
not normally provided outside of the Untied States. In your view, what
obligation does the government have to provide non-citizen disabled
veterans benefits and services needed to compensate for and overcome
the disabilities which they incurred after being recruited into United
States military service?
Response. During my tour as Commander, Naval Forces Marianas, I had
the opportunity to work with many of the fine servicemembers in
Micronesia, so I am somewhat familiar with the challenges in that part
of the world. I believe that all disabled veterans, both United States
citizens and non-citizens, are entitled to the benefits they earned
through their military service. I have been advised that VA-guaranteed
home loans cannot by regulation be made to veterans living outside the
United States and its territories because of problems in administering
the benefit to veterans in foreign countries where there is no VA
presence. However, VA is revising the Specially Adapted Housing (SAH)
regulations so that, as authorized by Section 2602 of Public Law 110-
289, veterans living outside the United States can take advantage of
the SAH program. Additionally, the law does not provide for independent
living services outside the United States. However, other vocational
rehabilitation programs and services can be provided to both citizen
and non-citizen veterans living outside the United States. VA also
furnishes veterans living outside the United States with medical care
and services for the treatment of their service-connected disabilities.
Question 13. In 2004, a blue-ribbon panel completed an exhaustive
review of VA's Vocational Rehabilitation and Employment program. In its
findings, it made more than 100 recommendations. Of those, VA reports
that 88 recommendations have been implemented to some extent. I remain
concerned, however, that there are far too many eligible veterans who
do not apply, complete the evaluation process, have a rehabilitation
plan developed, or complete their plan. No one seems to really know why
there is such a low completion rate when measured against the number of
veterans who apply and who are determined entitled. What priority do
you believe VA should place on determining why the successful
completion rate for individuals in this program is so low?
Response. I believe that the Vocational Rehabilitation and
Employment (VR&E) program is a key benefit program, crucial to the
successful transition of disabled veterans. I am committed to ensuring
that veterans are aware of the VR&E program and that the program meets
its commitment to assist disabled veterans throughout the transition
process to achieve their individual rehabilitation goals. As Assistant
Secretary for Policy and Planning, I directed the planning to contract
for a complete program evaluation of VA's VR&E program. This evaluation
will examine the outcomes of our VR&E veteran population and why
individuals discontinue the program, as well as a customer satisfaction
study. If confirmed, I will make certain that a high priority is given
to identifying and resolving any issues that may be impeding some
veterans from successfully completing the program.
Question 14. VA's Vocational Rehabilitation and Employment program
is one of the smallest, yet most important, programs within the
Department. It is the linchpin for helping veterans who incur service-
connected disabilities achieve a fulfilling and gainful future. I am
deeply committed to making sure that this program lives up to its full
potential, especially when individuals who have sustained serious
injuries in combat are concerned. What are your thoughts on the role
that vocational rehabilitation plays in terms of the total
rehabilitation of an individual recovering from severe combat-related
injuries?
Response. I agree that the VR&E program is vitally important to the
successful transition of veterans with service-connected disabilities,
particularly those with disabilities resulting from combat-related
injuries. I am aware that the VR&E program provides a continuum of
services that help veterans adjust to their disabling conditions and
translate their military experience into marketable civilian skills, so
that they can obtain and maintain meaningful careers in the civilian
job market. Helping disabled veterans find meaningful jobs is one of
the most important transitional services VA can offer. I believe of
equal importance are the independent living services provided to the
most seriously disabled veterans who are unable to work to enable them
to live more independently in their communities.
Question 15. Through VA's vocational rehabilitation program, VA
assumes certain responsibilities for the provision of employment
assistance to veterans who complete a plan of vocational
rehabilitation. This assistance can take a variety of forms. I am
concerned that VA cooperate and coordinate with the Department of
Labor's Veterans' Employment and Training Service so that duplication
of effort can be minimized. If confirmed as Under Secretary, what will
you do to involve both DOL and DOD in efforts to ensure that
employment-related issues are addressed seamlessly and without
duplication of effort?
Response. Since mid-2007 I have served as an ex-officio member of
the Secretary of Labor's Advisory Committee on Veterans Employment
which is coordinated by Charles Ciccolella, Assistant Secretary for
Veterans Employment and Training Service, Department of Labor. Together
we have used this as a forum to coordinate our efforts with both the
Department of Labor and DOD. In addition, the action items from the
Task Force on Returning Global War on Terror Heroes have contributed to
our collective efforts through job fairs and the transition assistance
program. If confirmed, I plan to continue these efforts.
Question 16. Under the VA's vocational rehabilitation program,
there is authority for a program of independent living services for
individuals who are severely disabled. However, there is an annual cap
of 2,500 enrollees in this program. Concerns have been expressed that
this enrollment cap may be adversely impacting the provision of
services to those most severely injured in combat. Do you believe that
this cap is appropriate or should these services be available to all
who need them?
Response. Independent living services must be available to all
service-connected veterans who need them. Although I have been advised
that the cap is not a barrier at this time to providing independent
living services to any eligible veterans, if confirmed I will monitor
this issue closely to ensure VR&E is providing services to all
qualified veterans.
Question 17. Under current policies, there is a protracted period
of evaluation and multiple reviews of decisions concerning seriously
disabled veterans seeking independent living services. If confirmed,
will you look into what steps might be taken to shorten the evaluation
period and reduce the layers of the review?
Response. Yes, I will look into that if confirmed.
Question 18. VHA has had considerable success using electronic
health records. What are your views on how technology might be used to
address problems that arise from VBA's reliance on paper files?
Response. My vision is that those veterans who choose to
communicate with VA electronically should be able to do so through an
interface which incorporates the best tools available. For those
veterans who choose to communicate with VA by paper, VA should be able
to expeditiously convert that into an electronic file. I believe the
standard should be that, as a servicemember transitions, all the
appropriate administrative and medical records are immediately
transmitted from DOD to VA and become part of the veteran's electronic
file.
Question 19. In 1941, Congress passed legislation, which, in
recognition of the difficulty of using official military records to
establish the disability of veterans who were disabled in combat areas,
provided for a relaxed evidentiary standard in the case of claims from
veterans who served in combat areas. It has recently come to my
attention that VA defines ``combat'' very narrowly when applying this
standard, requiring a veteran claimant to produce proof of direct
combat with an enemy. Do you believe this is an appropriate definition
of ``combat?''
Response. 38 U.S.C. Sec. 1154(b) currently enables ``any veteran
who engaged in combat with the enemy'' to establish service incurrence
for an injury or disease using only lay evidence. The United States
Court of Appeals for the Federal Circuit has held that ``[t]he statute
does not provide a relaxed standard of proof for determining whether a
veteran engaged in combat.'' Rather, according to the court, a veteran
must first establish that he or she engaged in combat with the enemy in
order for a veteran to be able to show service incurrence for an injury
or disease under the standards provided by 38 U.S.C. Sec. 1154(b).
A number of decisions from the Court of Appeals for Veterans Claims
deal with defining combat status and the evidentiary standards to apply
when determining such status. However, I understand the most recent
combat-related holding is from the Federal Circuit in the case of Moran
v. Peake (2008). The court held that:
``the term `engaged in combat with the enemy' in Sec. 1154(b)
requires that the veteran have personally participated in
events constituting an actual fight or encounter with a
military foe or hostile unit or instrumentality, as determined
on a case-by-case basis. A showing of no more than service in a
general `combat area' or `combat zone' is not sufficient to
trigger the evidentiary benefit of Sec. 1154(b).''
This is the definition followed by VA.
Question 20. VBA has had some success in the past with improving
the efficiency of claims processing by consolidating certain services
into fewer offices. What are your views on the pros and cons of such
consolidation?
Response. I am aware that VBA's prior consolidations in education,
loan guaranty, and insurance resulted in improved timeliness, quality
and consistency of benefit decisions, as well as overall improved
customer service. As Acting Under Secretary for Benefits, I have
reviewed and approved the continuation of consolidation initiatives
that include all original pension claims processing to the three
pension management centers, general inquiry phone calls to nine
national call centers, and the future consolidation of survivors'
benefits processing.
Many organizations studying disability claims processing have
suggested that VBA's challenges could be addressed by more
comprehensive restructuring and consolidation than has been done to
date. Potential benefits of greater consolidation of disability claims
processing activities would include:
Improved efficiency
Greater decision accuracy and consistency
Facilitate the delivery of training and quality control
efforts
Reduced administrative overhead and infrastructure costs
Optimize our ability to recruit and retain qualified staff
Availability of greater processing expertise, particularly
in critical technical areas
If confirmed, I will continue to examine areas for potential
consolidation to better serve veterans. However, as VA's past
experience has proven, consolidation is not just a shift in human
resources and real estate, but often a complex process that requires
input and support from service organizations, Members of Congress, and
other stakeholders. Even with greater consolidation, VA must maintain a
presence in each geographical region in order to meet the unique needs
of veterans and ensure all veterans have access to VA benefits
information and services.
Question 21. What changes do you anticipate making to the way
quality is measured at VBA?
Response. Based on my experience to date with VBA's systematic
technical accuracy review program, I believe it is technically sound,
but should be expanded. VBA is now significantly increasing the
national quality assurance staff to add review areas previously not
covered, expand the rating consistency review program started in fiscal
2008, and increase regional office sample numbers. If confirmed, I will
continue to support this effort.
Question 22. Short of a legislative solution, what actions do you
intend to take to ensure the continuity of the Senior Oversight
Committee process in the next administration?
Response. I am working with my DOD counterpart as co-chair of the
Senior Oversight Committee integrated process team to ensure all action
items from the lines of action are incorporated into the Joint
Strategic Plan, which will be finalized before the end of the year. I
reorganized the Office of Policy and Planning staff and directed hiring
additional personnel to work exclusively on coordination of issues with
DOD. We continue to work with DOD to properly align the duties of the
VA/DOD Joint Executive Council work groups with those of the lines of
action.
Question 23. The VA IG recently identified problems in 2006 with
sending VBA sending benefit packets to recently separated reservists.
What is VBA doing to ensure that all who previously did not receive
benefits packets now receive them?
Response. In early 2008, VBA identified problems with the Veterans
Assistance at Discharge System (VADS) process. VBA is unable to
determine which separated reservists did not receive benefits packets
during 2006. However, immediate corrective actions were taken to ensure
that all separating servicemembers now receive the benefits packages.
Staff at the Austin Automation Center were given access to contract
locator services to obtain correct addresses for packages that are
returned as undeliverable. Additionally, VBA is investigating methods
to switch to a real-time data feed from the Defense Manpower Data
Center rather than relying on the current process of waiting on DOD to
provide us with a hard copy DD-214. This will allow VBA to issue the
Welcome Home Package more efficiently and timely.
Question 24. I am interested in hearing about your view of the
IOM's report for the VDBC on Evaluation of the Presumptive Disability
Decision-Making Process for Veterans. That IOM Committee recommended a
new process for VA to follow in establishing presumptions. Can you
please comment on your view of this new process?
Response. VA's current policies are consistent with many of the
suggestions contained in the report. However, the Institute of Medicine
(IOM) recommended changes to the process that included a more stringent
standard of evidence and the establishment of new advisory committees.
These are policy considerations that have not been vetted in the
Department, and I have formulated no opinion on them.
Question 25. With respect to presumptive disability decisionmaking,
IOM also recommended a standard of ``causal effect.'' In some cases,
servicemembers may have been subjected to multiple potential exposures
of uncertain dosage. If causation is unclear, should evidence of
increased incidence of certain disabilities be a basis for service-
connection?
Response. I am advised that a standard of ``causal link'' is a
higher standard of proof than VA has traditionally used in establishing
presumptions. Using that standard would, most likely, result in fewer
disabilities being designated as presumptives. This is a policy
consideration that has not been vetted in the Department, and I have
formulated no opinion on it.
______
Response to Written Questions Submitted by Hon. Bernard Sanders, to
Patrick W. Dunne, Nominee to be Under Secretary for Benefits,
Department of Veterans Affairs
Question 1. Admiral Dunne, the VBA disability claims processing
process continues to be fraught with problems in decisionmaking that
causes undue burden on veterans and results in inefficient allocation
of scarce government resources.
Specifically:
The average claim takes 120 days to adjudicate; far from
the 78-day VA goal.
VBA admits 15% of its claims are inaccurate, but the true
number is probably much higher. Recent data shows wide variations in
payments to veterans by different regional offices, for example.
A wave of VBA's most experienced raters are retiring, and
at the same time the attrition rate for new raters is inexplicably high
at 16% in their first year.
The average veteran submits five claims.
50% of veterans appeal their claim, adding further time
and resources to the claims process.
Given these longstanding and deep structural deficiencies, do you
think there would be a benefit to the VBA of automating the VASRD (VA
Schedule for Rating Disabilities)? Do you have any plans on moving
forward with any VBA information technology enhancements between now
and January? If so, please describe them.
Response. In late fiscal 2007, the Office of Information and
Technology supported the Veterans Benefit Administration's (VBA) market
research of business-rules-engine software and other decision-support
technologies that could be leveraged to support improved decisionmaking
by claims processing personnel. During September 2008, the Department
of Veterans Affairs (VA) will engage the services of a lead systems
integration contractor (LSIC) to assist in refining and documenting
VBA's strategy and requirements for a claims process that is less
reliant on paper. This will include decision-support tools that can be
used to enhance decisionmaking and evidence-gathering throughout the
claims process, as well as streamline elements of claims workflow. We
will continue to evaluate appropriate uses of business rules technology
as part of our overall claims processing improvement strategy,
including the disability rating process.
The concept of operations for enhancing the claims process with
automated decision support tools is part of the overall strategy for
the paperless delivery of veterans benefits initiative. During the
first quarter of fiscal 2009, the LSIC will assist VBA in examining the
disability claims process to elicit the business requirements for the
paperless initiative. The LSIC will advise VA on technologies available
to enhance the business processes as well as to support the
implementation of a more efficient business model. The initial hardware
and software release in support of the paperless initiative is expected
to be implemented in fiscal 2010. In parallel, VBA will continue its
successful paperless claims processing efforts in the loan guaranty,
insurance and education business lines. Paperless claims processing in
the compensation and pension line of business will also continue to be
enhanced, using the current virtual VA platform. The end-state hardware
and software platform, designed by the LSIC to meet VBA's business
requirements, is envisioned to replace the current virtual VA platform,
and provide enhanced paperless claims processing capabilities across
VBA.
A core element of the paperless delivery of veterans benefits
initiative is on-line self service. The existing veterans on line
applications capabilities will undergo extensive modernization to
increase efficiency and improve customer service. Enhancements will
include the capability for E-authentication through an enterprise
portal, offering the capability of identifying and authenticating
veterans through the veterans information portal, which uses the
Veterans Affairs Defense Identity Repository as a means of
authentication.
Chairman Akaka. Thank you very much, Admiral.
Given the relatively short time you will hold office and
that VBA is facing seemingly unsurmountable challenges, what do
you think you can accomplish in these few remaining months?
Admiral Dunne. Sir, as you mentioned, it is a big
challenge, and I think what I can accomplish is to set a plan
in motion which we can continue to progress along as we are
currently, taking advantage of technology. Recently, last
month, I established a billet for a long-range planner. I hired
a veteran last month who has planning experience, both short-
range and long-range, to come in and work closely with me and
to gather up the efforts of the senior executives within VBA so
that we establish a plan for the G.I. Bill implementation, for
paperless implementation, and for really taking a look at the
claims process; and seeing, while we are waiting for the
technology to get us paperless, what parts of our business
process we can modify, reevaluate, and change. So, we are in
the process of building a plan over the next several months
which we will be able to turn over in January.
Chairman Akaka. How do you think you will prepare VBA and
your successor for the transition that will likely occur with
the next administration?
Admiral Dunne. Mr. Chairman, as part of this plan, we will
have a detailed analysis of those items that need to be
completed, monitoring and managing the parts of the contract,
ensuring--the different contracts, ensuring that the proper
training is available to all our VBA employees so that they can
continue on. As you know, we have hired almost 3,100 new
employees. Many of them are still in the stage of completing
their training to get to the journeyman status. We need to
follow through on those and be prepared.
Chairman Akaka. Admiral, I understand that it may be
necessary to reach outside of VA for assistance in implementing
the new Post-9/11 G.I. Bill in a smooth and seamless fashion.
However, I believe strongly that outsourcing the processing of
these important benefits on a permanent basis would be very
ill-advised. Do you have plans for bringing this function back
into VA in the future?
Admiral Dunne. Mr. Chairman, in the implementation of all
our education programs, our knowledgeable VA employees are the
crux of the process and we are going to rely on them just as
much under the new G.I. Bill Program as we are on the current
one. As you know, our IT capabilities are such that the
timeline that we need to work on and the complexity of the
benefit is such that we needed to bring in outside assistance
to develop an IT system capable of doing that. I would intend
to work with the Chief Information Officer to make sure that we
have those capabilities in-house which are necessary for us to
be able to serve veterans. So, the priority is to be able to
serve veterans; and I will work closely with the CIO on those
IT issues that we currently have to contract out to make sure
we are doing them in the best manner, sir.
Chairman Akaka. Well, thank you. I have further questions
for another round. Let me call on our Ranking Member, Senator
Richard Burr, for his questions.
Senator Burr. Thank you, Mr. Chairman. I will be very
brief. I want to explore the same area, because I would like
every Member to be very clear on exactly how you envision
implementation and the specific areas where contractors may be
used. In a conversation that we had, I believe that you
highlighted the need to use contractors to create the software
program to implement the G.I. Bill, and the potential to use
contractors to actually make the payments. I think those
payments were the payments, specifically, that dealt with the
housing allowance, because there are incredible variations on
where that is.
Now, I had the opportunity to sit down after I met with you
and after we had the American Legion meeting last week, which
the Chairman and I attended, where they were outraged at the
thought of contracting. It just so happened that, an hour
later, I sat down with you and got it from the horse's mouth.
Here is what we are trying to do. Later in the day, I had
Legion members come in and explained to them that we don't have
the capabilities within the Federal Government. We have tried
before at the FBI and spent a billion dollars to find out the
billion dollars created a program that we couldn't use and we
had to throw it away. So, I applaud the fact that we are
recognizing that writing software is not our strength, that the
outside world, the private sector does it better.
When I referenced the fact that the payment might come from
an outside vendor that is processing the checks--the VA is
intricately involved in determining who qualifies and where
they live--but the processing of that payment may be from
outside, they said, we don't care who processes and sends the
check as long as we get the check.
Now, have I simplified it too much from the standpoint of
your incorporating outside vendors? Is there an area that we
should be concerned with or alarmed? I might say to the
Chairman's question, I am not sure that either of the areas is
necessarily something that I envision that I would like to move
back in because I think, historically, government doesn't do
that piece real well. I point to numerous agencies that make
payments, that my staff spends hundreds of hours trying to
chase down Social Security payments, hundreds of hours trying
to chase down IRS payments. The thought that we could turn it
over to somebody to process in a timely fashion and, more
importantly, to make sure that a check actually got to the
person whose address it is supposed to get to, is refreshing to
me. I turn it to you to correct me anywhere I might be wrong.
Admiral Dunne. No, thank you, Senator. You have the essence
of where we are headed. We are implementing the Post-9/11 G.I.
Bill today and VA employees are involved in that, as they
should be. We are staffed up at the Education Call Center to
answer questions from veterans now so that they are ready to
apply when it is time to apply next summer to go to school. We
are manning the Internet Web site that we have. VA employees
are answering questions from veterans on that Web site as they
come in. And that is how they should be involved.
As you mentioned, due to the complexity of the different
payments, we do not currently have the IT capability to do
that. We have payment systems that pay compensation, that pay
pension, et cetera, but they are not configured to make the
payments that are required under this new G.I. Bill.
So, what we are contracting for is to build a service and
have a contractor provide us a service through software which
is rules-based. In essence, this new program--we are taking the
opportunity to bring the right technology tools to the VA
decisionmakers from the start. We want to bring the best of
technology. One of the things that we understand technology can
do is provide us this rules-based engine, which in many cases a
servicemember or veteran would be able to go to his or her
computer, log in, answer the questions that establish their
eligibility, and hit ``submit.'' It goes to the computer
program, the rules of which have been determined by VA
employees.
If everything matches as the computer's logic has been
told, then a letter would go to the veteran, servicemember,
saying you are accepted in the program. We are going to make
the payments to your college that you have told us that you are
going to. You will get your housing benefits in this amount on
a monthly basis, et cetera. That would all be happening by the
computer--the printouts, et cetera.
And the VA employees would get involved when an application
goes in and the computer says, this doesn't match my logic.
Perhaps the veteran has broken service and has two segments of
service which have to be added up. Hopefully, we get the
computer to be able to do that, too, but just as an example,
say it couldn't do that. Then it would queue up on an Education
Service employee's screen to say, this doesn't match the rule.
Is it OK? At that point, the VA employee gets involved and
either says yes, add the broken service, and approves it, or
gets information back to the veteran and says, we need this
additional information to explain it, et cetera.
Senator Burr. And this is VA personnel, not contract
personnel?
Admiral Dunne. These are the same Education Service
personnel who are out there today administering the other
programs that are currently in effect. And we are in the
process of training them so that they will be able to
understand the criteria of the new bill, and then understand
the rules-based engine that we have once it is built.
Senator Burr. Mr. Chairman, if I could, and I appreciate
the Members' indulgence here, if you took the greater
Washington area and I said to you, how many different potential
housing reimbursement numbers would exist in the greater
Washington area, is that a number that you know? Does it have
as many variations as I think it might, the way the bill was
written?
Admiral Dunne. I would start by counting zip codes, sir,
and----
Senator Burr. And every zip code could have a different
housing reimbursement in the Washington area?
Admiral Dunne. Potentially. Often, adjacent zip codes in
some areas would have the same amount, but that would be a good
place to start.
Senator Burr. Mr. Chairman, my reason for pointing this out
is we passed this piece of legislation and now we have asked VA
to implement it. This is a very difficult piece of legislation
to implement. And the fact is, I think VA has put a lot more
time into how they do it--more importantly, how they do it
correctly--than we give them credit for and that the VSOs give
them credit for. The attempt here is to make sure that, in a
timely fashion, individuals who qualify get the right amounts
and that their intent to enroll actually is followed by a check
that pays for their education.
I think this is one that we have figured out up front how
to do it, not necessarily waited until later on and figured out
how to fix it, and it is refreshing to me. But I just want to
stress to my colleagues, nothing will make this easier to
implement if the reimbursement rates change, and they do
annually around the country, depending upon the zip code that
you live in. Without that computer software foundation, this
becomes a manual process of trying to reassess what the changes
are in that living allowance and it would become a nightmare
down the road if, in fact, we did not make this attempt up
front to get it right. So, I applaud you for this and I thank
the Chair for his indulgence.
Chairman Akaka. Thank you, Senator.
We will now have questions from Senator Murray.
Senator Murray. Thank you very much, Mr. Chairman, and I
want to follow up on this, as well. We are hearing from a lot
of veterans and VSOs about the outsourcing of the
implementation. I guess I don't understand how the VA has been
able to administer the G.I. Bill since its inception but
suddenly doesn't have the ability to administer this new Post-
9/11 G.I. Bill. I think there are plenty of examples inside and
outside of government of trying to implement systems that don't
come in on time or don't come as promised, whether it is a
private company or within the government. So, outsourcing can
bring us problems, too.
But I was reminded yesterday of a saying that says, you can
delegate authority, but you can't delegate responsibility, and
I think what a number of people are concerned about is that you
are delegating both the authority and the responsibility with
the contract that is out there, and I wanted to ask you how you
plan on maintaining responsibility over the administration of
the Post-9/11 G.I. Bill benefit under this new contract.
Admiral Dunne. Well, Senator, I don't think that--I do not
feel that responsibility for the program would go to the
contractor. I feel that the responsibility would come back
directly to me and the members of VBA who are responsible for
it. We already have a management team in place of senior
executives, all of whom, short of their own retirement, will be
involved in this process right up through and beyond August
2009, implementing it.
We have been working this process since--well, before the
bill was even signed and became law in anticipation, and we are
involved in it every day, tracking the elements, not just the
work of the contractor. We are working on the Yellow Ribbon
Program and talking with the American Council of Education and
other associations so that we can get the information out
there. And as I mentioned before, we are deeply involved in
getting the information out to the veterans so that they
understand the program and can apply for it.
Senator Murray. Specifically, do you have a contingency
plan in place if the contractor fails to meet their obligations
time-wise?
Admiral Dunne. Senator, I am looking at three contingency
plans right now, and I am actually scheduled to brief Secretary
Peake on those this afternoon.
Senator Murray. So, you are already looking at that. How
long is this contract designed to last for?
Admiral Dunne. The contract has a base period of
performance of 3 years and two option years after that.
Senator Murray. Can you define for us the benchmarks that
you have within the contract that the contractor needs to meet?
Admiral Dunne. I am trying to make sure I stay in the
acquisition roles here. I think the best way to describe it is
that there is a requirement in there for continuous
improvement. Although it is IT software, the software we are
procuring as a service and the anticipation would be--the
requirement within the contract is that the contractor would
continuously improve this. So, they have written software which
we would use, but they are also able to be trying after we get
started to make improvements, revisions as is commonly made
with software to improve the efficiency or the effectiveness of
it and then come to us and recommend changes to that over the
course of the program, and the contract would be incentivized
for them to do that.
Senator Murray. OK. I think all of us are clearly on the
same page. We want the G.I. Bill out there. We want the checks
to start going. We want this to work seamlessly. We have all
had enough experience to know that doesn't always happen,
whether it is within your agency or contracted out. I think you
will see this Committee following this very closely and I think
there are a number of concerns. I hope that within the agency,
you are really looking at this as you move forward.
I just have a few seconds left. I did want to ask, you are
going to be in place for a short amount of time. Can you define
for this Committee perhaps what your top three specific changes
you hope to implement in your tenure?
Admiral Dunne. Top three. I would put the G.I. Bill, as we
have just been talking about, right up there at the top because
of its short timeframe. I intend to remain intimately involved
in that and tracking that.
Claims processing is another one of my concerns. We have a
number of initiatives underway. As I mentioned, we are not
waiting to be able to go completely electronic. We are looking
at the business process itself. For instance, as an example, we
are aware of the fact that both the National Cemetery
Administration and VBA process a first notice of death from a
veteran in various methods. We are working together with the
other administration right now so that they will be able to do
the majority of processing on that and their computer system
will update ours automatically and that will keep the VSRs on
our side from having to do that one element, so they can be
working on claims instead. So, we are looking at business
processes from that standpoint.
Another element that is very important to me is we are
about to commence on a review of the VR&E system. My intent is
to get a program evaluation in place. We have been working that
since the July timeframe, so that over the course of a year, we
can do a complete evaluation of that program, because as I am
sure you know, less than 10 percent of the eligible veterans
actually participate in the VR&E program and we would like to
understand why that participation level is so low and do
whatever is necessary to increase that.
Senator Murray. OK. Thank you very much. Thank you, Mr.
Chairman.
Chairman Akaka. Thank you very much, Senator Murray.
Senator Tester?
Senator Tester. Thank you, Mr. Chairman.
Admiral Dunne, we visited previously about the backlog, 182
days, I think currently, about that, give or take a few. In
previous discussions you had talked about senior leadership
forcing down on the bureaucracy ways to cut that time down. How
do you see this playing out in transition now, and how can you
get--just how is it playing out in the transition and go from
there?
Admiral Dunne. Senator, I guess the best way is that we
continue to move along on making the changes that are necessary
and just, you know, work as if there is no seam there in
January. I am fortunate enough to have some very experienced
senior executives in VBA who have been through transitions
before and so they are accustomed to that.
But we can't stop. I mean, we just keep right on marching.
And as you know, as an example, we have put in teleconferencing
capability with Fort Harrison and folks have been able to take
advantage of that, and as recently as last month, we increased
the number of hours per week up to 10 hours per week to make it
available to more folks. As we become aware of those things, I
don't want to save them for January. We are going to do them
now and just keep marching.
Senator Tester. There will be a new administration. There
will be some turnover in senior management. We don't know how
much at this point in time. I guess the question is are the
folks underneath you as committed as you are, as least as I
think you are, to cutting down the time for the disability
claims?
Admiral Dunne. One of the reasons I am anxious to take on
this responsibility, sir, is because I have had the opportunity
to work with the folks there and I understand their dedication
to it. It is almost a competition amongst us to understand the
numbers the best, and be able to understand not just
production, but also accuracy. And taking a look at what we
need to do to be as accurate as possible the first time around,
because if we get it right the first time, we don't have to
handle it again.
Senator Tester. On the Guard and Reserves and the denial of
claims, are you doing anything special in that regard? I think
the disparity is 2-2\1/2\ times more likely that Guardsmen are
denied benefits. I understand that it is kind of the nature of
the beast; but have you come up with any ideas to help reduce
the denials, complaints?
Admiral Dunne. Sir, first off, we are continuing to track
it and I am pleased to report to you that since we last talked
in April, the numbers have actually closed in terms of we are
now at 89 percent versus 96 percent, which is a 2-percentage
point increase since the last time we talked. But we are still
at the same level in terms of those factors that we see there,
in terms of length of service and number of disabilities that
are reported in the first place. But we continue to work very
diligently to get the information from the Guard and Reserve as
soon as possible.
I think there are a couple of elements to that. First off,
in the recent past, Secretary Peake hosted a meeting with
General Blum and the Reserves and we talked very specifically
about getting the information and getting the records. We now
are opening up the benefits delivery at discharge program to
everyone, not just at the 152 sites.
We have also put in place what we are calling the Quick
Start Program for those Guard and Reserve who oftentimes don't
meet the 60- to 180-day criteria, and we said, still come to
us. We will start working with you. We will take your record.
We will get you all the information so that we can process
those in the same time standards, hopefully, as the BDD claims.
Senator Tester. Good. One last question for now. Among
veterans who begin getting disability compensation in 2007, the
dollar amount of compensation varied wildly. I think in New
Mexico it was $12,000, compared to Minnesota, I think it was
$5,500. Montana is somewhat lower, at about $6,700. Is this
something that you are working on understanding--why this is
occurring and is it something that something can be done about?
Admiral Dunne. It is something that we are concerned about
and that we are taking a look at through our STAR Program. One
of the things they specifically are evaluating now is to expand
their review for consistency and to determine why there might
be a variation from one area to the other. And in fact, when it
is discovered, actually drilling down and taking a look at the
actual case and look at the parameters of the case to see why
that difference exists, because what we need to do in the long
run to get rid of it is to conduct the training that is
necessary so that the people making the ratings understand the
fine points of the disability system and can apply it the same
way.
Senator Tester. So, you do think it is a problem with the
ratings initially being done in the States?
Admiral Dunne. If there is variation, then we need to get
rid of the variation, whether it is on a state-by-state basis
or a zip code-by-zip code basis.
Senator Tester. OK. All right. Sounds good. And then you
are proceeding on that, because I think it is a bone of
contention, so thank you. Thank you, Admiral.
Chairman Akaka. Thank you very much, Senator Tester.
Admiral, in your testimony, you identified improving
communications with veterans as one of the Veterans Benefits
Administration's top priorities. Can you elaborate on what
specifically you are referring to and describe how VA has made
progress in this area in the 6 months that you have served as
Acting Under Secretary?
Admiral Dunne. Mr. Chairman, I think I would provide two
examples. The first is with the G.I. Bill in that we moved
expeditiously to get information available to veterans both
with press releases and our Web site and setting up within that
Web site a capability for a veteran to sign up and say, please
email me whenever you change any of the information on this
page or any of the information is updated. We have also created
a tri-fold handout which has the essence of the benefits on it
and we make that readily available at a lot of the locations
where we are, where veterans or active duty may be looking for
information.
The second example I would provide is in the loan guaranty
area. We were very concerned about veterans needing or wanting
to use their VA loan guaranty for mortgages in the current
environment and we have made several press releases as well as
updated our Web site to ensure that veterans understand that we
are not a subprime entity. We are not a lender of last resort.
If they are eligible, we want them to come see us. Recognizing
the concern among veterans, we increased the number of people
on our phone line to be able to answer more questions, not just
from veterans who have VA loans already but from those who
might have a loan which they want to try to replace with a VA-
guaranteed loan.
Chairman Akaka. In your testimony before this Committee in
July, you stated the Senior Oversight Committee was scheduled
to meet on August 12 to discuss the future of the Single
Disability Evaluation Pilot Program. Can you share with us the
results of that meeting, including any plans for offering the
next administration a template that can be followed in
additional locations?
Admiral Dunne. Yes, sir, Mr. Chairman. We did have that
meeting and there has been a great deal of work within both DOD
and VA since then. We have identified a number of sites, also
15 specific VBA Regional Offices who would participate in the
next phase. The first week in September, we had a 2-day
conference where we sat down with the VA employees from those
sites and they have gone through and created a checklist for
each of their sites on the very specific things--whether it is
IT or staffing or furniture or private meeting rooms, et
cetera--that they need in order to make their site functional
within this DES pilot. DOD is doing the same thing with their
complementary bases, and I expect over the next few weeks that
we will be merging that and then going back to the Senior
Oversight Committee with a recommendation for a timeline for
each of those areas.
Chairman Akaka. The Joint VA/DOD Senior Oversight Committee
has been successful in solving many of the problems which stem
from Walter Reed. Because I believe there is much work to be
done, I am concerned about how the work of the Senior Oversight
Committee will be transitioned to the next administration. What
is your view on how VA can sustain the Senior Oversight
Committee's high level of focus and energy to solving these
ongoing problems into the next administration?
Admiral Dunne. Mr. Chairman, I agree that the Senior
Oversight Committee is essential to continued progress, and
accordingly, I am working very closely with Mr. Mike Dominguez,
who is my counterpart on the OIPT that we run, and we have
charged each of the lines of action with ensuring that the next
Joint Strategic Plan that comes out by the end of the year
contains all the action items from those lines of action so
that they are written down, they are formal, they are part of a
plan which will then be available to the next administration.
In addition, within my Office of Policy and Planning, I
have also added additional staff who are dedicated only to the
VA/DOD relationship.
Chairman Akaka. Thank you very much.
Senator Burr?
Senator Burr. Thank you, Mr. Chairman. I am sorry my
colleagues left. I am going to go back to the G.I. Bill,
because I want to try to sort of tie this together. Senator
Murray started her inquiry of you by saying VA did the existing
G.I. Bill. What is different and why can't they do the new G.I.
Bill? Now, tell me where I am wrong.
The G.I. Bill education benefit that has been in effect was
one payment. That payment went to the veteran. That payment was
for tuition and for housing. It was a pretty standard amount.
Everybody got the same. So, it was fairly easy to target. If
somebody qualified, here is the amount they get and they
applied that wherever they went to school, and wherever they
lived, they used the housing allowance for that.
Under the new G.I. Bill, we have three separate payments.
One payment goes for housing. One payment goes for tuition and
fees. One payment goes for books and miscellaneous. It is
likely that these payments go to different entities. Within
each category, there are multiple different levels of payment
that can be made. Within housing, it is determined based upon
the zip code of where one might choose to go to school. Within
the tuition and fees area, it is determined by the highest
amount of a State institution in the State that they choose to
go to school in.
So, one can't just look at the choice that an individual
makes. They have to look further at what the highest public
tuition is to understand what the qualification amount would be
that would be applied to that institution. And at some point
after enrollment in the university, that veteran would access
their books; and the courses they chose might determine whether
that rates the maximum of $1,000 or was some figure less.
So, I point this out for my colleagues. Before, we had one
payment. That payment went to a veteran. That payment included
tuition, fees, housing, which was the definition then. Now we
have a program that has three distinct different payment areas:
Housing with multiple different levels of reimbursement;
tuition and fees with multiple different levels predicated by
the State; and three, books. Have I pretty much gotten it----
Admiral Dunne. Yes, sir, that covers it.
Senator Burr. If this were a chart we had on the board, you
would have one that had one big area and payment. The one over
here would have so many lines and so many variables, you
couldn't display it on a chart. So, I just want to say for the
record, to suggest that because you could handle internally all
the aspects of an education benefit in the VA today and that
that should suggest that you should be able to do whatever,
then one has to look at the construction that we have brought
to this program and question just how difficult this is going
to be.
I just want to tell you, I applaud you because I think you
understand the difficulty of it. You have tried to design and
you have reached out to experts to design a system that won't
eliminate 100 percent of the mistakes, but surely will allow us
to take the easy pieces and to expedite that process and to
make sure one thing happens--that veterans get their education
benefit. The payment goes to the school; they show up on the
day that they are supposed to sign up for classes and go to
classes, their payment has been made. They have got their
housing allowance so they have got the place they are going to
live; and, hopefully, at some point the books that they buy at
the bookstore are paid for and they are not getting delinquent
sheets. I applaud you for what I think is well-thought-through
in a very brief period of time for a very difficult piece of
legislation.
Admiral Dunne. Thank you.
Chairman Akaka. Senator Burr, do you have any further
questions?
Senator Burr. No, sir.
Chairman Akaka. Thank you, Senator Burr.
Well, in closing, I want to thank you very much for being
here and for having your family join you here. While there is
little time left in the current administration, I do believe
veterans and their families would be better served in this
period with a Senate-confirmed Under Secretary leading the
Veterans Benefits Administration. We would like to move the
nomination as quickly as we can. With this in mind, I will work
to bring your nomination before the Committee and the full
Senate as soon as possible.
Of course, we want to wish you well, and again, thank
Secretary Mansfield for being here.
This hearing is adjourned.
[Whereupon, at 11:06 a.m., the Committee was adjourned.]