[House Hearing, 114 Congress]
[From the U.S. Government Publishing Office]
EXAMINING THE MISSION, STRUCTURE, AND REORGANIZATION EFFORT OF THE
NATIONAL PROTECTION AND PROGRAMS DIRECTORATE
=======================================================================
HEARING
BEFORE THE
SUBCOMMITTEE ON
CYBERSECURITY, INFRASTRUCTURE
PROTECTION, AND SECURITY
TECHNOLOGIES
OF THE
COMMITTEE ON HOMELAND SECURITY
HOUSE OF REPRESENTATIVES
ONE HUNDRED FOURTEENTH CONGRESS
FIRST SESSION
__________
OCTOBER 7, 2015
__________
Serial No. 114-34
__________
Printed for the use of the Committee on Homeland Security
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COMMITTEE ON HOMELAND SECURITY
Michael T. McCaul, Texas, Chairman
Lamar Smith, Texas Bennie G. Thompson, Mississippi
Peter T. King, New York Loretta Sanchez, California
Mike Rogers, Alabama Sheila Jackson Lee, Texas
Candice S. Miller, Michigan, Vice James R. Langevin, Rhode Island
Chair Brian Higgins, New York
Jeff Duncan, South Carolina Cedric L. Richmond, Louisiana
Tom Marino, Pennsylvania William R. Keating, Massachusetts
Lou Barletta, Pennsylvania Donald M. Payne, Jr., New Jersey
Scott Perry, Pennsylvania Filemon Vela, Texas
Curt Clawson, Florida Bonnie Watson Coleman, New Jersey
John Katko, New York Kathleen M. Rice, New York
Will Hurd, Texas Norma J. Torres, California
Earl L. ``Buddy'' Carter, Georgia
Mark Walker, North Carolina
Barry Loudermilk, Georgia
Martha McSally, Arizona
John Ratcliffe, Texas
Daniel M. Donovan, Jr., New York
Brendan P. Shields, Staff Director
Joan V. O'Hara, General Counsel
Michael S. Twinchek, Chief Clerk
I. Lanier Avant, Minority Staff Director
------
SUBCOMMITTEE ON CYBERSECURITY, INFRASTRUCTURE PROTECTION, AND SECURITY
TECHNOLOGIES
John Ratcliffe, Texas, Chairman
Peter T. King, New York Cedric L. Richmond, Louisiana
Tom Marino, Pennsylvania Loretta Sanchez, California
Scott Perry, Pennsylvania Sheila Jackson Lee, Texas
Curt Clawson, Florida James R. Langevin, Rhode Island
Daniel M. Donovan, Jr., New York Bennie G. Thompson, Mississippi
Michael T. McCaul, Texas (ex (ex officio)
officio)
Brett DeWitt, Subcommittee Staff Director
Dennis Terry, Subcommittee Clerk
Christopher Schepis, Minority Subcommittee Staff Director
C O N T E N T S
----------
Page
Statements
The Honorable John Ratcliffe, a Representative in Congress From
the State of Texas, and Chairman, Subcommittee on
Cybersecurity, Infrastructure Protection, and Security
Technologies:
Oral Statement................................................. 1
Prepared Statement............................................. 3
The Honorable Cedric L. Richmond, a Representative in Congress
From the State of Louisiana, and Ranking Member, Subcommittee
on Cybersecurity, Infrastructure Protection, and Security
Technologies:
Oral Statement................................................. 4
Prepared Statement............................................. 5
The Honorable Michael T. McCaul, a Representative in Congress
From the State of Texas, and Chairman, Committee on Homeland
Security....................................................... 6
Witnesses
Ms. Suzanne E. Spaulding, Under Secretary, National Protection
and Programs Directorate, U.S. Department of Homeland Security:
Oral Statement................................................. 7
Joint Prepared Statement....................................... 10
Ms. Phyllis A. Schneck, Deputy Under Secretary, Cybersecurity and
Communications, National Protection and Programs Directorate,
U.S. Department of Homeland Security:
Oral Statement................................................. 13
Joint Prepared Statement....................................... 10
Mr. Ronald J. Clark, Deputy Under Secretary, National Protection
and Programs Directorate, U.S. Department of Homeland Security
Oral Statement................................................. 15
Joint Prepared Statement....................................... 10
Mr. Chris P. Currie, Director, Emergency Management, National
Preparedness and Critical Infrastructure Protection, Homeland
Security and Justice Team, U.S. Government Accountability
Office:
Oral Statement................................................. 16
Prepared Statement............................................. 18
For the Record
The Honorable John Ratcliffe, a Representative in Congress From
the State of Texas, and Chairman, Subcommittee on
Cybersecurity, Infrastructure Protection, and Security
Technologies:
Letters........................................................ 28
Appendix
Questions From Chairman John Ratcliffe for Suzanne E. Spaulding.. 43
Questions From Honorable Scott Perry for Suzanne E. Spaulding.... 52
Questions From Ranking Member Bennie G. Thompson for Suzanne E.
Spaulding...................................................... 52
Questions From Chairman John Ratcliffe for Phyllis A. Schneck.... 54
Question From Chairman John Ratcliffe for Ronald J. Clark........ 55
Questions From Ranking Member Bennie G. Thompson for Chris P.
Currie......................................................... 56
EXAMINING THE MISSION, STRUCTURE, AND REORGANIZATION EFFORT OF THE
NATIONAL PROTECTION AND PROGRAMS DIRECTORATE
----------
Wednesday, October 7, 2015
U.S. House of Representatives,
Committee on Homeland Security,
Subcommittee on Cybersecurity, Infrastructure Protection,
and Security Technologies,
Washington, DC.
The subcommittee met, pursuant to call, at 10:13 a.m., in
Room 311, Cannon House Office Building, Hon. John Ratcliffe
[Chairman of the subcommittee] presiding.
Present: Representatives Ratcliffe, McCaul, Perry, Clawson,
Donovan, Richmond, and Langevin.
Mr. Ratcliffe. The Committee on Homeland Security
Subcommittee on Cybersecurity, Infrastructure Protection, and
Security Technologies will come to order. The subcommittee is
meeting today to examine the National Protection and Programs
Directorate, or NPPD's, proposed reorganization effort.
I now recognize myself for an opening statement.
Prior to any reorganization of NPPD, Congress needs to
first determine whether or not the proposal would establish a
clear operational mission for the directorate, streamline the
organizational structure, and whether the proposal can be
effectively carried out by a qualified workforce.
We also have questions on how the proposed changes would
help make acquisition efforts for the cybersecurity mission
more effective and more efficient. Perhaps most importantly,
this committee needs to know how the realignment would help
build confidence in both the public and private sectors that
DHS is dedicated to focusing on its emerging cybersecurity
mission.
Growing cyber threats are presenting new homeland security
challenges every day, and as such, this committee needs to
ensure that DHS is optimally organized to successfully combat
these emerging threats.
As a Nation, we seem to finally be grasping the magnitude
of the potential consequences of a major cyber attack,
particularly as serious cyber breaches have already become part
of our daily lives.
As we have seen this year with the damaging breach to the
Office of Personnel Management and other similar breaches,
cyber subversions are only increasing in their numbers and in
their severity. We have seen cyber attacks destroy private
companies' computer and data breaches that exfiltrate corporate
information, employee data, emails, intellectual property.
Bottom line, it is vitally important that we are prepared
to combat this evolving threat.
Additionally, much of our Nation's critical infrastructure
is privately-owned, and there now exists an interconnectedness
of physical security and cybersecurity. This means that someone
sitting at a keyboard can issue commands to blow up a gas
pipeline, to cause the air traffic control system to
malfunction, or take control of someone's automobile, all of
which could result in a loss of life, not just the theft of
personal information from a database.
It is NPPD's mission to work with both public and private
partners to reduce these risks from both cybersecurity and
infrastructure threats and make the Nation's physical and
digital infrastructure more resilient and secure. NPPD is also
responsible for securing Federal networks and working with the
private sector to secure the dot-com domain.
As such, I would hope that NPPD plans on consulting with
the private sector and its partners to hear their informed
views on the proposed plan before moving forward. So far, I
have only heard from outside stakeholders that there has been
little to no outreach, and that is very disconcerting.
Additionally, despite multiple media reports that DHS
leadership is pushing to reorganize its cybersecurity and
infrastructure protection missions, the committee has received
minimal details from DHS at this point.
Over the past several years this committee has built up a
collaborative relationship working with NPPD, consulting with
it to pass several strong and bipartisan pieces of legislation
to improve chemical security and to strengthen DHS's
cybersecurity mission and stature in the Federal Government.
Given our shared goal to protect this country, several
Members of the committee and I were very disappointed to learn
about this proposal through leaked reports in the media. The
committee only received a briefing after these reports in the
press; and unfortunately, only minimal details on the
reorganization effort, after several requests, have been
provided in the time since.
Only last week did the staff here receive an additional
briefing, having been met with road blocks when trying to
obtain additional information. Even more disappointing, the
committee has heard that DHS leadership had planned to move
forward unilaterally on several efforts without Congressional
review or approval.
I remind the witnesses that it is Congress' job to create
the laws and the administration's job to execute them. After
all, the Founding Fathers purposely enumerated Congress' role
in Article I of the Constitution before any powers were given
to the Executive.
Over the past several weeks the committee has sent a strong
message to DHS leadership making it clear that transparency
with Congress and the American people is not a choice. The
committee sent a bipartisan letter to DHS leadership expressing
its disappointment in the process and reiterating the Congress'
oversight and authorization roles and responsibilities.
Additionally, the committee marked up several pieces of
legislation last week, including one that would explicitly
prohibit DHS from undertaking any reorganization or realignment
of NPPD without Congressional review and approval. Just
yesterday, that legislation passed the House unanimously.
I hope that our message is clear.
The committee is committed to working with NPPD's senior
leadership to further strengthen its efforts and ensure that it
has a clear mission, streamlined organizational structure, and
a qualified workforce to carry out both its infrastructure
protection and its cybersecurity responsibilities. But this
will be a joint effort with Congress.
I look forward to hearing more about your proposal for
reorganization and then turning the page to begin working
together to craft authorization legislation for the National
Protection and Programs Directorate that would ensure that it
has the tools and proper authorities to defend this Nation from
both cyber and physical threats.
[The statement of Chairman Ratcliffe follows:]
Statement of Chairman John Ratcliffe
Prior to any reorganization of NPPD, Congress needs to first
determine whether or not the proposal would establish a clear
operational mission for the directorate, streamline the organizational
structure, and can be effectively carried out by a qualified workforce.
We also have questions on how the proposed changes would help make
acquisition efforts for the cybersecurity mission more effective and
efficient. And perhaps most importantly, this committee needs to know
how the realignment would help build confidence in both the public and
private sectors that DHS is dedicated to focusing on its emerging
cybersecurity mission.
Growing cyber threats are presenting new homeland security
challenges every day; and as such, this committee needs to ensure that
DHS is optimally organized to successfully combat these emerging
threats.
As a Nation, we seem to finally be grasping the magnitude of the
potential consequences of a major cyber attack, particularly as serious
cyber breaches have already become part of our daily lives. As we have
seen this year with the damaging breach to the Office of Personnel
Management and other similar breaches, cyber subversions are only
increasing in number. We have seen cyber attacks destroy private
companies' computers and data breaches that exfiltrate corporate
information, employee data, emails, intellectual property. It is
vitally important that we are prepared to combat this evolving threat.
Additionally, much of our Nation's critical infrastructure is
privately owned, and there now exists an interconnectedness of physical
security and cybersecurity. This means that someone sitting at a
keyboard can issue commands to blow up a gas pipeline, cause the air
traffic control system to malfunction, or take control of someone's
automobile--all of which would result in loss of life--not just the
theft of personal information from a database.
It is NPPD's mission to work with both public and private partners
to reduce these risks from both cybersecurity and infrastructure
threats and make the Nation's physical and digital infrastructure more
resilient and secure. NPPD is also responsible for securing Federal
networks and working with the private sector to secure the ``.com''
domain. As such, I would hope that NPPD plans on consulting with the
private sector and its partners to hear their informed views on the
proposed plan before moving forward. So far, I have only heard from
outside stakeholders that there has been little to no outreach and that
is really disconcerting.
Additionally, despite multiple media reports that DHS leadership is
pushing to reorganize its cybersecurity and infrastructure protection
missions, the committee has received minimal details from DHS.
Over the past several years, this committee had built up a
collaborative working relationship with NPPD, consulting with it to
pass several strong and bipartisan pieces of legislation to improve
chemical security and strengthen DHS's cybersecurity mission and
stature in the Federal Government. Given our shared goal to protect
this country, several Members of the committee and I were very
disappointed to learn about this proposal through leaked reports in the
media. The committee only received a briefing after these reports in
the press, and unfortunately, only minimal details on the
reorganization effort, after several requests, have been provided
since.
Only last week did staff receive an additional briefing, having
been met with roadblocks when trying to obtain additional information.
Even more disappointing, the committee has heard that DHS leadership
had planned to move forward unilaterally on several efforts without
Congressional review and approval.
I will remind the witnesses that it is Congress' job to create the
laws and the administration's job to execute them. After all, the
Founding Fathers purposely enumerated Congress' role in Article One of
the Constitution, before any powers were given to the Executive.
Over the past several weeks, the committee has sent a strong
message to DHS leadership making it clear that transparency with
Congress and the American people is not a choice. The committee sent a
bipartisan letter to DHS leadership expressing disappointment in the
process and reiterating the Congress' oversight and authorization roles
and responsibilities. Additionally, the committee marked up several
pieces of legislation last week, including one that would explicitly
prohibit DHS from undertaking any reorganization or realignment of NPPD
without Congressional review and approval. Just yesterday, that
legislation passed the House unanimously. I hope our message is clear.
The committee is committed to working with NPPD's senior leadership
to further strengthen its efforts and ensure that it has a clear
mission, streamlined organizational structure, and a qualified
workforce to carry out both its infrastructure protection and
cybersecurity responsibilities--but this will be a joint effort with
Congress. I look forward to hearing more about your proposal for
reorganization and then turning the page to begin working together to
craft authorization legislation for the National Protection and
Programs Directorate that would ensure it has the tools and proper
authorities to defend this Nation from both cyber and physical threats.
Mr. Ratcliffe. The Chair now recognizes the Ranking
Minority Member of the subcommittee, the gentleman from
Louisiana, Mr. Richmond, for any statement that he may have.
Mr. Richmond. Thank you, Mr. Chairman.
I want to welcome Under Secretary Spaulding and her deputy
secretaries to the subcommittee and thank them for taking time
to come and explain their plan to transform the National
Protection and Programs Directorate, the NPPD.
I also want to thank Chris Currie, head of the emergency
management national preparedness and critical infrastructure
protection team at GAO.
Chris and his colleagues provide this subcommittee and
committee with insights and analysis into the day-to-day
operations of organizations like NPPD and inform us in ways we
couldn't learn any other way. They are invaluable to us.
Against the backdrop of challenges that the Department
faces--tightening budgets, low morale, complex oversight
structures--there are key issue areas that DHS leaders must
address in order to achieve, as Secretary Johnson has
envisioned, a Department-wide Unity of Effort, including a plan
to reorganize and realign NPPD.
There will be many details that we on the subcommittee will
need to study and evaluate before we feel comfortable enough to
give recommendations or assess legislative initiatives for the
plan, and I hope we can begin that process today.
We know that NPPD is a large and multi-layered directorate
with a wide range of responsibility, from chemical facility
security, pipelines, refineries, ports, and other critical
infrastructure protection, to cybersecurity. It covers such a
range that some might say it lacks a single central mission.
I am interested today in learning how the Secretary's plan
to allow NPPD to become operational will be accomplished
without shredding or rearranging its current responsibilities,
and how it will create an overall central mission.
This is important because my district is a prime example of
the importance of both physical infrastructure security and
cyber network security. My district includes the largest port
network in the country, the largest petrochemical footprint in
the Nation, and significant refining capacity. All of these
facilities have complex and challenging physical security and
cybersecurity challenges.
There are funding concerns too. If the reorganization or
realignment will require modifications to NPPD's appropriations
structure, will the Department request additional budgetary
flexibility or transfer authority from Congress beyond those
that the Department already has available?
Let's be clear: This reorganization is both massive and a
crucial undertaking. I continue to have a lot of questions
about both this kind of major--how this kind of major overhaul
will work and what all the implications are for the proposed
changes.
So I hope this hearing leads to some answers so that we can
work together to improve the Department.
With that, I look forward to hearing the testimony and I
yield back.
[The statement of Ranking Member Richmond follows:]
Statement of Ranking Member Cedric L. Richmond
October 7, 2015
Thank you Mr. Chairman.
I want to welcome Under Secretary Spaulding and her deputy
secretaries to the subcommittee and thank them for taking time to come
explain their plan to ``transform'' the National Protection and
Programs Directorate, the NPPD.
I also want to thank Chris Currie, head of the Emergency Management
National Preparedness and Critical Infrastructure Protection Team at
GAO. Chris and his colleagues provide this subcommittee and committee
with insights and analysis into the day-to-day operations of
organizations like NPPD, and inform us in ways we couldn't learn any
other way--they are invaluable to us.
Against the backdrop of challenges that the Department faces;
tightening budgets, low morale, complex oversight structures, there are
key issue areas that DHS leaders must address in order to achieve, as
Secretary Johnson has envisioned, a Department-wide Unity of Effort,
including a plan to reorganize and realign NPPD.
There will be many details that we on the subcommittee will need to
study and evaluate before we will feel comfortable enough to give
recommendations, or assess legislative initiatives for the plan, and I
hope we can begin that process today.
We know that NPPD is a large and multi-layered directorate, with a
wide range of responsibility: From chemical facility security,
pipelines, refineries, ports and other critical infrastructure
protection, to cybersecurity. It covers such a range that some might
say it lacks a single, central mission.
I am interested today in learning how the Secretary's plan to allow
NPPD to become ``operational'' will be accomplished without shedding or
re-arranging its current responsibilities, and how it will create an
overall, central mission.
This is important because my district is a prime example of the
importance of both physical infrastructure security and cyber network
security. My district includes the largest port network in the country,
the largest petrochemical footprint in the Nation, and significant
refining capacity. And all of these facilities have complex and
challenging physical security and cybersecurity challenges.
There are funding concerns too.
If the reorganization or realignment will require modifications to
NPPD's appropriations structure, will the Department request additional
budgetary flexibilities, or transfer authority from Congress, beyond
those that the Department already has available?
Let's be clear, this reorganization is both a massive and a crucial
undertaking.
I continue to have a lot of questions about both how this kind of
major overhaul would work, and what all the implications are for the
proposed changes, so I hope this hearing leads to some answers so that
we can work together to improve the Department.
I look forward to the testimony and discussion today, and I yield
back.
Mr. Ratcliffe. The gentleman yields back.
The Chair now recognizes the Chairman of the full
committee, the gentleman from Texas, Mr. McCaul, for any
statement he may have.
Mr. McCaul. Thank the Chairman. Thank you for holding this
hearing on the National Protection and Program Directorate.
I also want to thank Under Secretary Spaulding for the
meeting I had yesterday. I thought it was a very good briefing
on moving forward, and I think that is important because
Congress has to review the proposal in its entirety once it is
finally submitted and understand how it could improve our
Nation's cybersecurity posture and protection of our critical
infrastructures.
Additionally, any effort that will significantly alter the
way the Department carries out its responsibilities is one that
Congress needs to weigh in on. The Chairman mentioned the
letter we sent on September 15, and the most recent legislation
that Mr. Richmond passed on the floor, I believe yesterday.
We take the Department's cybersecurity mission very
seriously.
I want to commend the good work that you have done--both
you and Dr. Schneck--in this very, very important mission and
in building the capabilities within DHS to carry it out. You
only need to read the newspaper to know what the threat really
is, and you know it better than anybody.
From the OPM hack to the Sony attacks to Iran's constant
attacks on the financial sector, from Russia, from China--it is
everywhere. It is not just the future; it is the here and now,
of criminal theft of intellectual property, of espionage, and
cyber warfare.
So we want to, as we have in the past, work with you to
advance this mission. I would say that the Members of this
committee are perhaps your biggest advocates in the Congress
because we believe that what you are doing is so important.
So I look forward to hearing more about the reorganization
and the proposed changes, but I do think that should be done in
full collaboration with the Congress, and specifically with
this committee. We passed 15 bills, marked them up last week,
to improve the Department, and I think this hearing will go a
long way to strengthening the NPPD's mission that we strongly
believe in.
If I could just end with--I know that the Senate is taking,
finally, up the cybersecurity legislation that we passed out of
this committee many months ago by an overwhelming majority. I
would ask that they take into account the bills that we passed
out of the House and the bills that we passed previously in the
last Congress and not do anything that would conflict with
existing law.
My concern is that these laws we passed last Congress may
be disregarded, and I think that would be very
counterproductive to the process and counterproductive to a
conference committee, in the event we ever get to that point.
So I would ask that the Senate look at that as they measure
and weigh in on the final bill that they mark up on
cybersecurity legislation. This has to be done right, because I
can think of no more important mission than this one.
So with that, again, I want to thank the Chairman.
I want to thank the witnesses not only for being here but
for the work that you do day in and day out. We don't often say
``thank you'' enough, and I would just like to, on behalf of
this committee, say thanks for the great work you do to protect
our country.
With that, I yield back.
Mr. Ratcliffe. Thank you, Mr. Chairman.
Other Members of the committee are reminded that opening
statements may be submitted for the record.
We are pleased, as the Chairman referenced, to have a
distinguished panel of witnesses with us on this important
topic today.
The Honorable Suzanne Spaulding serves as the under
secretary for the National Protection and Programs Directorate
at the U.S. Department of Homeland Security.
Welcome back, Under Secretary.
Dr. Phyllis Schneck serves as the deputy under secretary
for cybersecurity and communications for the National
Protection and Programs Directorate at the U.S. Department of
Homeland Security.
Dr. Schneck, good to see you again.
Dr. Ronald Clark serves as the deputy under secretary for
the National Protection and Programs Directorate at the U.S.
Department of Homeland Security.
Welcome back to this subcommittee.
Mr. Chris Currie is the director of emergency management
national preparedness and critical infrastructure protection
for the homeland security and justice team at the U.S.
Government Accountability Office.
Welcome, Mr. Currie.
I would like to ask the witnesses to stand and raise your
right hand so I can swear you in to testify.
[Witnesses sworn.]
Let the record reflect that the witnesses have answered in
the affirmative.
You may be seated.
The witnesses' full statements will appear in the record.
The Chair recognizes Under Secretary Spaulding for 5
minutes for her opening statement.
STATEMENT OF HON. SUZANNE E. SPAULDING, UNDER SECRETARY,
NATIONAL PROTECTION AND PROGRAMS DIRECTORATE, U.S. DEPARTMENT
OF HOMELAND SECURITY
Ms. Spaulding. Thank you.
Chairman McCaul, thank you for your very gracious remarks.
Chairman Ratcliffe, Ranking Member Richmond, distinguished
Members of the committee, thank you very much for this
opportunity to be here today to discuss the Department's
important cyber and infrastructure protection mission and the
changes in the National Protection and Programs Directorate
that I have the privilege of leading that we believe are
necessary to keep pace with the dynamic and evolving risks that
our partners in Government and the private sector face each and
every day.
I want to start by saying that I understand the committee's
frustration that information related to the changes that were
under consideration leaked prematurely to the media before we
had a plan that the Secretary had an opportunity to review and
I could get down here to brief the committee on that plan.
This is an on-going process that continues, and managing
change is always a challenge as I balance the need to follow
appropriate Executive branch procedures, continue to be
inclusive and transparent with my workforce, respect your very
important legislative and oversight roles, and communicate
appropriately with our public and our private stakeholders.
I place a very high priority on making sure that we are
consulting with you and with the rest of Congress. We have
tried to ensure that your staff is informed at appropriate
points throughout this process, and we look forward to
continuing to work with you toward our shared objective of
strengthening DHS's ability to execute its critical mission of
cyber and infrastructure priority--protection.
We will do this by working to achieve three key priorities
with the changes that we have proposed: Achieving greater Unity
of Effort, strengthening operations, and improving our mission
support.
Achieving greater Unity of Effort in our cyber and
infrastructure protection mission is part of Secretary
Johnson's overall work to bring greater Unity of Effort across
the entire Department. Within NPPD, we need to take a holistic
approach across cyber and physical risks the private sector
increasingly takes and reflect the world that they face--a
world in which cyber and physical, as Chairman Ratcliffe noted,
and Ranking Member Richmond, are increasingly intertwined.
We see this in the Internet of Things. We know that cyber
attacks can have physical consequences, such as disrupting the
electric grid or causing a dam to malfunction, just as physical
events, such as storms and flooding, can cause cyber outages.
We need to understand these connections and we need to manage
those risks in the same interconnected way.
In this time of scarce resources we must fully leverage all
the outstanding expertise, capabilities, insights, information,
relationships across our entire organization to accomplish our
cyber and infrastructure protection mission. We cannot afford
to operate in stovepipes that hamper essential collaboration
and integration.
Ultimately, the transition we are talking about is about
strengthening operations--our ability to make a difference on
the ground, in partnership with our stakeholders in Government
and the private sector. To fully accomplish this objective we
need excellence in our mission support functions, particularly
acquisition and program management.
This plan includes not only some restructuring of the
organization, but also cultural, governance, and process
changes, and even changing our name. You should each have a
copy of our proposed organizational structure, and I am going
to start at the bottom of that organizational chart with our
three entities that will be executing operational activity: The
National Cybersecurity and Communications Integration Center,
our NCCIC; Infrastructure Security; and the Federal Protective
Service.
Under our plan, the NCCIC, our 24 7 operations center, is
elevated and focused on operations to effectively respond to
and mitigate cyber incidents. It would include all the current
NCCIC functions but also bring in important dot-gov functions,
including Einstein and our continuous diagnostics and
mitigation.
The second operational entity would be Infrastructure
Security. This entity will work on stakeholder engagement and
build capacity throughout our stakeholders in Government, in
State, local, territorial, and Tribal, and the private sector.
They will provide training, technical assistance,
assessments, and work with those folks in the field and through
support to sector coordinating councils. They will bring in
those same activities that are now occurring in the Office of
Cybersecurity and Communications including the Office of
Emergency Communications; our effort to promote the adoption of
the NIST Cybersecurity Framework, called C-Cubed V.P.; and our
cybersecurity advisors, field forces that are now deployed all
across the country. They will have the protective security
advisors and our chem inspectors, so that we can integrate our
field forces and that operational activity more effectively.
Third is the Federal Protective Service, which will
continue its law enforcement and security operations to protect
Federal facilities all across the country and the people who
work in them and visit them every single day. This plan will
increase their ability to bring cybersecurity fully into that
security assessments and mitigation measures for those Federal
facilities and help to better integrate their field operations
so that they can leverage what goes on and the capabilities
across the rest of NPPD and vice-versa. To ensure that
interconnectedness and to facilitate that, we are establishing
an operations and watch function that brings together existing
capabilities so that we can better integrate our operational
planning and our situational awareness.
Finally, we are strengthening our mission support
operations by flattening and streamlining those functions and
in some cases, particularly in acquisition and program
management, bringing together a cadre of professionals that can
make sure we have got clear oversight and guidance, who will
then be embedded with the users whose requirements they have to
ensure they are meeting on a daily basis.
Implementation of this plan will require Congressional
action. We understand the committee is working on possible
legislation and has asked for DHS input, and we are working to
respond quickly to that request.
In closing, I want to again thank the committee for its
strong support for our mission and for this opportunity to
share our vision for an organization that can meet the Nation's
challenges--the challenges that we face today and for years to
come.
Thank you very much. I am very pleased to be accompanied
today by my outstanding deputies, and I understand that they
will have a few opening remarks, Chairman.
Thank you.
[The joint prepared statement of Ms. Spaulding, Ms.
Schneck, and Mr. Clark follows:]
Joint Prepared Statement of Suzanne E. Spaulding, Phyllis A. Schneck,
and Ronald J. Clark
October 7, 2015
Thank you, Chairman Ratcliffe, Ranking Member Richmond, and
distinguished Members of the subcommittee. I appreciate the opportunity
to appear before you today to discuss the Department's cyber and
infrastructure protection mission and the proposed transformation of
the National Protection and Programs Directorate (NPPD). The growing
demand for NPPD services as a result of the evolving risks requires the
organization to be prepared to address whatever challenges we face in
the future. Therefore we are developing a plan that will strengthen our
ability to carry out NPPD's mission.
nppd's cyber and infrastructure protection mission
NPPD serves a critical role in homeland security by leading the
National effort to secure and enhance the resilience of the Nation's
infrastructure against cyber and physical risks. NPPD works with
interagency partners as well as owners and operators of critical
infrastructure in the private sector and State, local, Tribal, and
territorial government agencies to, collectively, maintain secure,
functioning, and resilient infrastructure that is vital to public
confidence and the Nation's safety, prosperity, and well-being.
I'd like to thank Members of this subcommittee for the continued
recognition and support of this critical mission. In just the past
year, the subcommittee demonstrated bi-partisan support for NPPD's
mission by introducing legislation that enhanced authority for NPPD
operations in the areas of cybersecurity and infrastructure protection,
specifically chemical facility security. Through the leadership of this
subcommittee, as well as Chairman McCaul and Ranking Member Thompson,
these bills ultimately became law. Most recently, the subcommittee
introduced legislation, which was passed by the House of
Representatives to improve cybersecurity by encouraging voluntary
information sharing between and amongst the private sector and NPPD's
National Cybersecurity & Communications Integration Center (NCCIC).
This important legislation would strengthen cybersecurity by enabling
automated sharing of cyber threat indicators in a way that protects
privacy and brings this important information together so that trends
can be seen and malicious cyber activity can be better understood and
detected. I appreciate your continued support for our mission, and I am
committed to continuing working with you to ensure we have the
authority and tools necessary to succeed.
NPPD was initially created in 2007 as a headquarters component of
the Department by combining several existing entities. Over the years,
the mission has evolved and NPPD has taken on more operational
responsibility; especially as threats have grown. Malicious cyber
activity has become more sophisticated over time, requiring an equally
sophisticated and agile response. Given the importance of the mission
and the evolving risks to critical infrastructure, NPPD must transition
to an operational focus that fully leverages the combined expertise,
skills, information, and relationships throughout DHS.
transforming nppd
To accomplish this vision, DHS is proposing a transformation that
will achieve three key priorities: (1) Greater Unity of Effort across
the organization, particularly across cyber and physical threats,
vulnerabilities, consequences, and mitigation; (2) Enhanced operational
activity; and (3) Excellence in acquisition program management and
other mission support functions. This transformation includes
restructuring the organization; cultural, governance, and process
changes; further cementing the organization as an operational component
within the Department, and changing our name to better reflect our
mission.
DHS is proposing changes in the structure of the organization to
enable enhancements in operations. In the new structure, operations
would be carried out through three interconnected, operational
directorates. This will allow for focused operations with the necessary
coordination to ensure our operations mitigate risk in a holistic,
comprehensive manner.
The first directorate, Infrastructure Security, will focus on
activities to protect the Nation's infrastructure from cyber and
physical risks by working with private and public-sector owners and
operators to build the capacity to assess and manage these risks.
Through regionally-based field operations--to include the Protective
Security Advisors, Cyber Security Advisors, Regional Emergency
Communications Coordinators, and the Chemical Security Inspectors--
Infrastructure Security will deliver training, technical assistance,
and assessments directly to stakeholders to enable these owners and
operators to increase security and resilience. This includes working
with facilities that are often identified as soft targets because of
their open access. The foundation of Infrastructure Security will
include existing programs within the Office of Cybersecurity and
Communications, including the Office of Emergency Communications, the
Cyber Security Advisor program, and the Critical Infrastructure Cyber
Community (C3) Voluntary Program. In addition, Infrastructure Security
will include programs currently within the Office of Infrastructure
Protection, including the Protective Security Advisor program and the
Chemical Facility Anti-Terrorism Standards program. It will also
execute the Sector-Specific Agency responsibilities for nine sectors
and serve as the National coordinator for the remaining sectors.
The second operational directorate will focus on cyber-specific
operations and DHS's responsibility to mitigate and respond to threats
to information technology (IT) and communication assets, networks, and
systems. Through an enhanced and elevated NCCIC, we would execute
cyber-specific protection, prevention, mitigation, incident response
and recovery operations for private and public-sector partners,
including protection of Federal networks. The focus on this area of
operational activity will ensure DHS is able to respond to malicious
cyber activity at the speed demanded by the rapidly-evolving threat,
while closely aligning pre-incident prevention and protection with
incident detection, response, and recovery. The NCCIC will also
collaborate with the other two operational directorates to ensure cyber
operations and expertise support, and benefit from, the operational
activity of those protecting Federal facilities and building capacity
with public and private-sector stakeholders.
The third operational directorate, the Federal Protective Service,
will continue to focus on the direct protection of Federal facilities,
and those who work in and visit them, across the Nation, through
integrated law enforcement and security operations. It will increase
its focus on protecting cybersecurity aspects of Federal facilities in
coordination with the NCCIC. In addition, the Federal Protective
Service will better integrate its field operations with field forces in
Infrastructure Security to enable comprehensive security and resilience
for our stakeholders, as well as co-locate incident management support
with the combined watch functions of the NCCIC and the National
Infrastructure Coordinating Center (NICC) to gain efficiencies and
improve situational awareness.
To ensure coordinated execution of the mission and better
integration among the three operational activities, we will combine
existing elements to establish a mission support element for
coordinated operations, joint operational planning, and integrated
situational awareness. NPPD is currently piloting these enhancements to
strengthen situational awareness and operational coordination using the
National Infrastructure Coordinating Center as a foundation. We will
use the results of the pilot to inform the establishment of permanent
mechanisms for integrated situational awareness, coordinated
operations, operational planning, and integrated continuity planning.
The Office of Cyber and Infrastructure Analysis will support this
important coordination function. In 2014, NPPD established the Office
of Cyber and Infrastructure Analysis as a first step in integrating key
risk-assessment activity, particularly with regard to understanding
interdependencies and consequences across physical and cyber. This
function will provide essential analysis to support coordinated
operational planning and joint situational awareness. This integrated
operations and watch function will serve as a critical element of the
Department's counterterrorism mission in protecting critical
infrastructure, including Federal facilities and those who work in and
visit them.
Enhanced operations will be supported through improved mission
support functions. We will re-orient the roles of operational and
mission support elements so operators are focused on operations and
mission support elements are structured with appropriate authorities to
effectively and efficiently support operations, consistent with the
structure of other DHS operating components. We will change the way the
organization executes and manages acquisition programs. DHS is
proposing an Acquisition Program Management function to enable greater
effectiveness and accountability in acquisition programs and ensure
that operational programs have the tools required in a timely manner.
These changes will also help us collaborate with the DHS Science and
Technology Directorate to strengthen our ability to leverage
innovation, research, and development for DHS and National benefit.
Aligning activities that provide oversight and accountability for these
large acquisition programs will allow operational directorates to focus
on executing daily operations with the confidence that their
requirements are being met by a team of acquisitions professionals. In
many instances, these acquisition professionals will continue to be co-
located with the programs they support to ensure user requirements are
well-understood and being met.
We will also enable those carrying out day-to-day operations to
focus on the mission by changing current business models for other
management functions as well. Streamlining and centralizing management
of business support functions will create efficiencies by reducing
management layers and provide greater predictability and agility in
meeting the needs of the workforce and of our operations. We will
ensure the delivery of these services remains customer-focused by
placing staff in the same location as the operators when their needs
can best be met by in-person support. Centralizing management of these
activities will support the goal of enabling operators to focus on
operations while ensuring mission support elements are empowered to
support the operators and effectively carry out our mission.
This proposed structure reflects the three priorities of the
transition; but a critical part of the transformation to achieve these
priorities includes an underlying support structure with updated
processes and internal governance to ensure the organizational
structure permits the necessary flexibility and integration of programs
required to carry out NPPD's mission. In addition, the proposed
structure will allow for enhanced operations and performance of its
critical mission with minimal requirements for new resources by
identifying and implementing a series of efficiencies. In a time of
growing mission demands and continued resource constraints, greater
efficiencies are imperative and DHS is committed to ensuring that
direct impacts to budget from the transformation are minimal. This
approach can be achieved through the combination and co-location of
similar functions, the establishment of a joint planning function that
leverages existing planning resources in a coordinated manner, and a
flattening of certain management functions.
benefit to stakeholders
Reducing risks to critical infrastructure is a joint effort between
the private and public sectors. DHS is unable to carry out our mission
without the support and participation of stakeholders within the public
and private sectors, including critical infrastructure owners and
operators, public safety and Government officials at all levels of
Government, and our interagency partners. Therefore, this
transformation is designed to directly benefit these stakeholders.
Through the changes outlined above, DHS will be able to more
effectively and efficiently leverage relationships to support
operational activity by identifying, coordinating, managing, and
countering physical and cyber risks to infrastructure.
DHS is committed to improving service delivery to customers by
enhancing our staff presence outside the District of Columbia and
better integrating field activities. A more robust field force will
directly engage with stakeholders located throughout the Nation and
carry out operations at a local level. In order to create efficiencies,
improve the delivery of services to public and private-sector customers
in the field, and ensure DHS is addressing cybersecurity and
infrastructure protection regional priorities, we will more fully
integrate and support regional operations. To achieve the priorities of
both enhancing operations and achieving a Unity of Effort across
programs, we will use the results of an on-going regional pilot project
to inform a plan for aligning field forces into a more cohesive
organization. By embracing a regionally-focused organizational
framework, we can tailor the delivery of programs that reflect regional
needs and that evolve as the capabilities of each region to mature and
expand. This framework also will better position us to develop career
path options for regional and headquarters-based employees.
In addition to our external stakeholders, this transformation will
benefit the workforce. I am privileged to serve with the committed men
and women of NPPD. Our workforce carries out the incredibly difficult
and demanding mission of protecting our Nation's infrastructure, both
cyber and physical. The hard work and dedication of our staff forms the
backbone of our operations as we strive to meet evolving mission needs.
Many of the ideas I have discussed above for this transformation came
directly from our workforce, and our employees have served a critical
role in this process by developing plans and recommendations. Our
employees best know the requirements and demands of this mission;
therefore, I value their input and feedback. Their efforts and
continued role in this process will be all the more important as we
move forward to strengthen our capabilities to carry out this
challenging and evolving mission.
As we continue to develop NPPD's organizational structure and
improve our governance processes to support are evolving mission, a new
organizational name would support our efforts help create a more
unified and strong sense of identity, enhance stakeholder outreach, and
reflect the operational activities NPPD employees carry out each day.
next steps
The plan for NPPD's transformation I have just outlined provides a
clear path to further enhance and improve our ability to carry out the
mission. However, our work is not yet complete. Senior executives are
now working on action plans to further develop details for the proposed
areas of change I named above. We are also working with our stakeholder
community to ensure their feedback is incorporated into this
organizational construct.
Several of the areas I have identified above will require
Congressional action to amend existing law, seek approval of
organizational changes, and enable the changes. I appreciate the
opportunity to appear before you today to discuss our proposal and look
forward to working with Members of Congress on the implementation of
this plan. Your support to date has enabled NPPD to carry out our
critical operations and make significant progress, in collaboration
with our stakeholders, to protect the Nation's infrastructure. Together
we can ensure DHS is best positioned to carry out the critical mission
of cybersecurity and infrastructure protection now and in the future.
In closing, I would like to note that October is National
Cybersecurity Awareness Month and next month, November, is Critical
Infrastructure Security and Resilience Month. Every year we use these
opportunities to raise awareness of the importance of the cybersecurity
and infrastructure protection mission. This hearing is an important
part of that dialogue and I thank you for the opportunity to testify
before you today.
I look forward to your questions.
Mr. Ratcliffe. Thank you, Under Secretary Spaulding.
The Chair now recognizes Dr. Schneck for 5 minutes.
STATEMENT OF PHYLLIS A. SCHNECK, DEPUTY UNDER SECRETARY,
CYBERSECURITY AND COMMUNICATIONS, NATIONAL PROTECTION AND
PROGRAMS DIRECTORATE, U.S. DEPARTMENT OF HOMELAND SECURITY
Ms. Schneck. Chairman Ratcliffe, Ranking Member Richmond,
Chairman McCaul, distinguished Members of the committee, thank
you for this opportunity to appear today. In my over, now, 2
years in Government, I continue to really be impressed and
enjoy the support that we get from our Congressmen and Senators
in truly making things happen.
Our critical infrastructures, as you know, and our cyber
connectivity therein, are under attack; they have become open
hunting season for a very egregious and witted adversary.
These adversaries seek to damage our way of life. It is a
broad range of threat, as you know, from the economic money or
turning our information--our private information, our health
information, our financial information--into currency. It moves
up the spectrum to the theft of intellectual property, and then
to the destructive side where, as the under secretary
mentioned, a single computer instruction or command can cause a
change that creates a physical event. That is why we are here
today.
Our critical infrastructures are owned and operated mostly
by the private sector. There has never been a harder time for a
large private-sector company, like the one from which I came,
to work with the U.S. Government in our environment, but there
has never been a more urgent time.
All of this work that is needed is based on trust, customer
service, stakeholder engagement, and the ability for us to be
able to reach out and bring a field of expertise, from our
cyber experts to our electric power experts to those in between
that run our programs.
This transformation will strengthen our cyber mission. It
will strengthen our ability to reach out to our customers and
to serve them well.
Fighting back against this constantly-evolving threat
requires this fully collaborative approach. NPPD can't do our
mission if we don't do this.
We have been doing it well. We can do it faster and better,
and as the adversary excels, with no lawyers and no way of life
to protect and plenty of money, we will not be able to fight
them if we don't organize the way that is being suggested today
so that we can bring everything we have to bear, just as we did
in the private sector.
This adversary takes an expeditious fight, and we can bring
that. NPPD has been evolving for several years, as our mission
has demanded. The latest step will improve our ability and--to
carry out both our cyber and our infrastructure protection
mission in better collaboration with our stakeholders, and
programmatically, these changes are designed to make it easier
for us to bring everything we have to the table, meaning we can
bring expertise about the sector, we can bring the people that
have the trusted relationships within the sector, we can bring
the exact cyber people that understand the problem, and come to
the fight more quickly.
We can bring that team today, and we do, but we can
assemble it and be designed as a much more efficiently well-
oiled machine to do this mission and take on this adversary.
Through this transformation we focus on customer service,
delivering this service to our customers, and making sure that
we provide our stakeholders across the Nation not only the
service in helping them fix an event or spot a threat, but to
teach them, to give them programs such as the C-Cubed V.P.--or
the Cybersecurity and Critical Infrastructure Community
Voluntary Program that comes with the President's Executive
Order on best practices for cyber--bringing them these programs
so they can teach themselves how to protect their networks, and
teach their supply chain, and teach their colleagues.
So we are building more secure communities by joining our
critical infrastructure expertise, our outreach, and joining
that trust with our cyber experts. We need to have a structure
that lets us continue to operate in this time of growing
mission demand and continued resource constraints.
I wish I could say that the threat was going away. It is
growing. Our job is to neutralize that, and the way we do that
is to be more artful.
Our adversaries are constantly evolving. They have
absolutely no barrier to overcome.
If we are to overcome their artful hold, we have to be more
masterful and more agile, and that is what this realignment is
designed to do. It allows us to be more efficient and allows us
to be more efficient with the tools that you have provided us
in legislation; it allows us to make better use of your
tremendous advocacy and get out there with the strength that we
bring as a whole of Government, and do that with a whole of
NPPD.
Our Secretary always tells us that homeland security--that
cybersecurity is a part of homeland security. Our job is to
make sure that technology and innovation are enabled, that the
private sector is enabled to make more money so they can
innovate and build great things, and that our citizens can
enjoy new technologies.
Our job is to make our infrastructure resilient to damage
so that the American way of life continues to be enjoyable, and
fun, and a great place to make these new technologies without a
fear of what new technology can bring. To neutralize that, we
need this transformation to strengthen our cybersecurity
mission, to bring everything we have got in trust, in
capability, in infrastructure knowledge, infrastructure
expertise, sector knowledge, feet on the street--use the field
forces, our Federal Protective Service, who see everything that
is happening in a Federal building and day out--use their
awareness of the HVAC systems that have been known as targets
to understand exactly what is happening and bring that all
together.
Our transformation will enable all of this. It will enable
the cybersecurity piece of homeland security in the Secretary's
Unity of Effort. We look forward to bringing more customer
service and being even more of a service that our taxpayers
will be proud of.
So thank you, and I look forward to your questions.
Mr. Ratcliffe. Thank you, Dr. Schneck.
Chair now recognizes Dr. Clark for 5 minutes for his
opening statement.
STATEMENT OF RONALD J. CLARK, DEPUTY UNDER SECRETARY, NATIONAL
PROTECTION AND PROGRAMS DIRECTORATE, U.S. DEPARTMENT OF
HOMELAND SECURITY
Mr. Clark. Chairman Ratcliffe, Ranking Member Richmond,
Chairman McCaul, and distinguished Members of the subcommittee,
thank you for the opportunity to appear before you today.
With 2 decades of service as a United States Marine Corps
infantry officer, 5 years at the National Security Council, my
mission and instinct at NPPD has been to focus on mitigating
threats, driving down risk, and executing intelligence-driven
operations--operations focused on the protection of Federal
facilities, critical infrastructure, and the American people.
NPPD occupies unique mission space, and we must ensure the
full leveraging of its unique expertise, information, and
capabilities. We are committed to enhancing our operational
capacity and capability and taking the actions needed to
enhance our security of critical infrastructure.
The threat we face today is increasingly elusive,
unpredictable, and violent. The threat increasingly extends
across physical and cyber domains and can be carried out by
criminal elements; aspirants of an extremist ideology; or
terrorists, foreign, or domestic.
In response to this dynamic threat environment, over the
past year we have executed a series of enhanced security
operations across the country to detect, deter, and deny
potential threats to thousands of Federal facilities and
millions of occupants. These operations entailed a series of
intensified security protocols that increased our presence,
awareness, and ability to respond.
We have also enhanced our efforts directed at State and
local partners, private-sector owners and operators of critical
infrastructure. This dimension of our security campaign focused
on building capacity, sharing threat information and trends,
and, most importantly, addressing the very real concerns of
local partners, private-sector stakeholders, and the faith-
based community.
While we have seen progress to date, we must continue to
enhance our operational capabilities because our adversaries
have repeatedly demonstrated their ability to adapt to our
security measures. Whether the operation is focused on the
direct protection of a Federal building, ensuring the security
parameters of a chemical facility, deploying a cybersecurity
advisor team, or expanding the capacity of public and private-
sector partners, robust analytical support is essential.
Operations must be driven by the best possible information.
Toward this end, we have focused on sharpening our analytic
capabilities. For example, today our ability to complete
forward-looking analysis and to systematically map the
interdependencies of critical infrastructure by our Office of
Cyber and Infrastructure Analysis is exceptional.
Their analytical support to the decision-making process is
critical. We have pragmatically integrated this robust analytic
capability with an enduring focus on fielding low-cost, high-
impact tools that increase mission assurance, team welfare,
precision, and speed.
Thank you again for this opportunity. Thank you, as well,
for your enduring support to the Department of Homeland
Security over many years.
Thank you.
Mr. Ratcliffe. Thank you, Dr. Clark.
Chair now recognizes Mr. Currie for 5 minutes for his
opening statement.
STATEMENT OF CHRIS P. CURRIE, DIRECTOR, EMERGENCY MANAGEMENT,
NATIONAL PREPAREDNESS AND CRITICAL INFRASTRUCTURE PROTECTION,
HOMELAND SECURITY AND JUSTICE TEAM, U.S. GOVERNMENT
ACCOUNTABILITY OFFICE
Mr. Currie. Thank you, Mr. Chairman, Ranking Member
Richmond, and other Members of the subcommittee. I appreciate
the opportunity to be here today to talk about the potential
reorganization of NPPD.
I wanted to say up front that we at GAO don't have many
details on the specific reorganization or any on-going work on
this issue. However, over the years we have evaluated numerous
agency creations and transformations and reorganizations, and
based on real-life lessons learned, we have developed a number
of questions and--that need to be answered and factors that
need to be addressed during these types of changes.
Also, as the committee knows, the initial implementation of
DHS and broader management issues at the Department are still
on our high-risk list. So we think our work across these areas
is important to consider in any potential change in NPPD's
structure or mission.
Before I get into the specifics of our work I did want to
make a key point: NPPD has the critical and difficult mission
of securing both cyber and physical critical infrastructure and
the interdependencies between both of those things. To do this,
it needs to be able to adapt and change with the threat as
needed, so it is not surprising that NPPD would propose a
reorganization to adapt to the changing threat and additional
responsibilities it has.
However, our experience at DHS and other agencies has shown
that it is often the management issues that can creep in as
problems later on after these things are done in areas like
human capital and acquisition. These areas are just as critical
to think through as the mission need that is driving the
reorganization because they can hinder success.
Our work across Government points to key questions that
need to be answered in these situations. For example: What are
the goals? What are the real costs and benefits? How can the
up-front cost be funded? This one is important: Who are the key
stakeholders and how are their views being considered?
Specifically, during the creation of DHS we outlined a
number of key practices and steps for successful organizational
transformations. Although an NPPD reorg is maybe not on that
scale, they are still applicable and important, and here are
just a few examples from that work: Establishing a coherent
mission and integrated strategic goals to guide the
transformation; establishing a communication strategy to create
shared expectations and report progress; and last, involving
employees to obtain their ideas and gain their ownership for
the transformation because they are the ones that are going to
have to make it happen.
We have also found that successful Government
reorganizations balance executive and legislative roles, as you
mentioned up front, Mr. Chairman. For example, Congressional
deliberative processes, such as this hearing, serve as an
important function of getting input from Congress but also a
variety of stakeholders that are affected by the change. They
also provide important checks and balances.
Now, let me talk a bit about our high-risk work and DHS
management. DHS has made much progress in this area since its
creation, but more work is needed.
We have found that management challenges have had a direct
impact on DHS's ability to meet its mission. For example, in
the area of acquisitions, which has been discussed a lot this
morning--or to put it in plain speak, when an agency purchases
a service or a technology--delivering major acquisitions aimed
at achieving mission capabilities that are on time and within
budget has been difficult for the Department. It will be
important for NPPD to consider that as it rolls out large cyber
acquisitions across Government, sometimes now under accelerated
time frames.
In the area of human capital, or people management, DHS and
NPPD have struggled with low employee morale, which can affect
mission execution. Also, NPPD faces a challenge in attracting
people with the technical skills it needs to accomplish its
mission, such as cybersecurity specialists.
The last quick point I would make is that while there are
risks to any reorganization, there can also be many benefits.
The best practices we have developed and I discussed--and there
is a lot more detail in my formal written statement--are things
that we have developed from real-life case examples from real
agencies; they are not just theory. If done effectively,
organizations can emerge from reorganization stronger than
before.
This concludes my prepared statement, and I look forward to
your questions.
[The prepared statement of Mr. Currie follows:]
Prepared Statement of Chris P. Currie
October 7, 2015
Chairman Ratcliffe, Ranking Member Richmond, and Members of the
Subcommittee: I am pleased to be here today to discuss our observations
on the potential reorganization of the Department of Homeland
Security's (DHS) National Protection and Programs Directorate (NPPD).
NPPD is the DHS component responsible for addressing physical and cyber
infrastructure protection, a mission area of critical importance in
today's threat environment. Critical infrastructure owners and
operators continue to experience increasingly sophisticated cyber
intrusions and a ``cyber-physical convergence'' has changed the risks
to critical infrastructure ranging from energy and transportation to
agriculture and health care, according to a DHS strategic review.\1\
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\1\ DHS, The 2014 Quadrennial Homeland Security Review (Washington,
DC: June 2014).
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NPPD's potential reorganization is the latest in DHS's
organizational evolution. In 2003, we designated implementing and
transforming DHS as high-risk because DHS had to transform 22
agencies--several with major management challenges--into one
department.\2\ Further, failure to effectively address DHS's management
and mission risks could have serious consequences for U.S. National and
economic security. Over the past 12 years, the focus of this high-risk
area has evolved in tandem with DHS's maturation and evolution. The
overriding tenet has consistently remained DHS's ability to build a
single, cohesive, and effective department that is greater than the sum
of its parts--a goal that requires effective collaboration and
integration of its various components and management functions.
---------------------------------------------------------------------------
\2\ GAO, High-Risk Series: An Update, GAO-15-290 (Washington, DC:
Feb. 11, 2015).
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You asked us to offer our perspectives on reorganizations, given
anticipated but unspecified changes planned at NPPD. This statement
describes key factors for consideration in a NPPD reorganization. It
includes observations from our prior work on organizational change,
reorganization, and transformation, applicable themes from GAO's high-
risk list, and NPPD-related areas from our work in assessing
programmatic duplication, overlap, and fragmentation.
This testimony is based on reports we issued from 2003 through
2015.\3\ For this work, among other things, we convened a forum to
identify and discuss useful practices and lessons learned from major
private- and public-sector organizational mergers, acquisitions, and
transformations; conducted interviews with knowledgeable officials;
reviewed relevant literature and agency documentation; reviewed the
status of high-risk issues; and identified material in our routine
audit work where areas of potential fragmentation, overlap, and
duplication were identified. Recurring themes and findings from those
data-gathering efforts are summarized in the published reports. More
detailed information on our scope and methodology appears in the
published reports.
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\3\ GAO, Streamlining Government: Questions to Consider When
Evaluating Proposals to Consolidate Physical Infrastructure and
Management Functions, GAO-12-542 (Washington, DC: May 23, 2012); GAO,
Government Efficiency and Effectiveness: Opportunities for Improvement
and Considerations for Restructuring, GAO-12-454T (Washington, DC:
March 21, 2012); GAO, High-Risk Series: An Update, GAO-15-290
(Washington, DC: Feb. 11, 2015); GAO, 2015 Annual Report: Additional
Opportunities to Reduce Fragmentation, Overlap, and Duplication and
Achieve Other Financial Benefits, GAO-15-404SP (Washington, DC: April
14, 2015); GAO, Results-Oriented Cultures: Implementation Steps to
Assist Mergers and Organizational Transformations, GAO-03-669
(Washington, DC: July 2, 2003).
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We conducted the work upon which this statement is based in
accordance with generally-accepted Government auditing standards. Those
standards require that we plan and perform the audit to obtain
sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that
the evidence obtained provides a reasonable basis for our findings and
conclusions based on our audit objectives.
background
The Homeland Security Act of 2002 created DHS and gave the
Department wide-ranging responsibilities for, among other things,
leading and coordinating the overall National critical infrastructure
protection effort.\4\ For example, the Act required DHS to develop a
comprehensive National plan for securing the Nation's critical
infrastructure and key resources, including power production,
generation, and distribution systems, and information technology and
telecommunication systems, among others.\5\ Homeland Security
Presidential Directive (HSPD) 7 further defined critical infrastructure
protection responsibilities for DHS and other departments.\6\ For
example, HSPD-7 directed DHS to establish uniform policies, approaches,
guidelines, and methodologies for integrating Federal infrastructure
protection and risk management activities within and across critical
infrastructure sectors. Various other statutes and directives provide
specific legal authorities for infrastructure protection and resiliency
programs.\7\
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\4\ See generally Pub. L. No. 107-296, 116 Stat. 2135 (2002). Title
II of the Homeland Security Act, as amended, primarily addresses the
Department's responsibilities for critical infrastructure protection.
\5\ See 6 U.S.C. 121(d)(5). ``Critical infrastructure'' are
systems and assets, whether physical or virtual, so vital to the United
States that their incapacity or destruction would have a debilitating
impact on National security, National economic security, National
public health or safety, or any combination of those matters. 42 U.S.C.
5195c(e). Key resources are publicly or privately controlled
resources essential to minimal operations of the economy or Government.
6 U.S.C. 101(10).
\6\ Homeland Security Presidential Directive/HSPD-7, Critical
Infrastructure Identification, Prioritization, and Protection (Dec. 17,
2003).
\7\ For example, the Cyber Security Research and Development Act,
enacted in January 2002, authorized funding through fiscal year 2007
for the National Institute of Standards and Technology and the National
Science Foundation to facilitate increased research and development for
computer and network security and to support related research
fellowships and training. See generally Pub. L. No. 107-305, 116 Stat.
2367 (2002). Other critical infrastructure-related Presidential
Directives include HSPD-3, which addresses implementation of the
Homeland Security Advisory System; HSPD-9, which establishes a National
policy to defend the Nation's agriculture and food system; HSPD-10,
which addresses U.S. efforts to prevent, protect against, and mitigate
biological weapons attacks perpetrated against the United States and
its global interests; HSPD-19, which addresses the prevention and
detection of, protection against, and response to terrorist use of
explosives in the United States; HSPD-20, which addresses the
establishment of a comprehensive and effective National continuity
policy; and HSPD-22, which, as described in the NIPP, addresses the
ability of the United States to prevent, protect, respond to, and
recover from terrorist attacks employing toxic chemicals. Presidential
Policy Directive/PPD-21--Critical Infrastructure Security and
Resilience--issued February 12, 2013, revoked HSPD-7 but provided that
plans developed pursuant to HSPD-7 shall remain in effect until
specifically revoked or superseded.
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NPPD was established in 2007 as DHS evolved. Specifically, after
the Post-Katrina Emergency Management Reform Act of 2006 transferred to
the Federal Emergency Management Agency most of what was then termed
the Preparedness Directorate, the Secretary of Homeland Security at
that time created NPPD. NPPD combined most of the remaining functions
of the Preparedness Directorate, such as the Office of Infrastructure
Protection, with other functions.\8\ For example, the Office of Cyber
Security and Telecommunications combined with the National
Communications System and the new Office of Emergency Communications
and was renamed the Office of Cyber Security and Communications. As
reported in DHS's fiscal year 2016 budget request, NPPD employs
approximately 3,500 staff. NPPD's current organizational structure
includes 5 divisions.
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\8\ See 6 U.S.C. 315. See also 6 U.S.C. 452 (authorizing the
Secretary to allocate or reallocate functions among the officers of the
Department, and to establish, consolidate, alter, or discontinue
organizational units within the Department).
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The Federal Protective Service is the agency charged with
protecting and delivering law enforcement to and protection
services for Federal facilities.
The Office of Biometric Identity Management, formerly US-
VISIT, provides biometric identity services to DHS and its
mission partners.
The Office of Cybersecurity and Communications has the
mission of assuring the security, resiliency, and reliability
of the Nation's cyber and communications infrastructure.
The Office of Cyber and Infrastructure Analysis provides
consolidated all-hazards consequence analysis focusing on cyber
and physical critical infrastructure interdependencies and the
impact of a cyber threat or incident to the Nation's critical
infrastructure.
The Office of Infrastructure Protection leads the
coordinated National effort to reduce risk to critical
infrastructure posed by acts of terrorism.
Many of NPPD's activities are guided by the 2013 National
Infrastructure Protection Plan (NIPP). NPPD issues the NIPP in
accordance with requirements set forth in the Homeland Security Act, as
amended, HSPD-7, and more recently Presidential Policy Directive-21--
Critical Infrastructure Security and Resilience. The NIPP was developed
through a collaborative process involving critical infrastructure
stakeholders. Central to the NIPP is managing the risks from
significant threat and hazards to physical and cyber critical
infrastructure, requiring an integrated approach to:
Identify, deter, detect, disrupt, and prepare for threats
and hazards to the Nation's critical infrastructure;
Reduce vulnerabilities of critical assets, systems, and
networks; and
Mitigate the potential consequences to critical
infrastructure of incidents or adverse events that do occur.
key factors for consideration in a nppd reorganization
Our prior work includes four areas that offer valuable insights for
agency officials to consider when evaluating or implementing a
reorganization or transformation. These areas include: (1) Considering
key questions for consolidation decision making and factors for success
when implementing an organizational change; (2) balancing Executive and
Congressional roles in the decision-making process; (3) considering
themes and findings in our DHS high-risk work; and (4) addressing any
related duplication, overlap, or fragmentation of existing programs.
Key Questions to Consider During Organizational Consolidation and
Practices for Transformation Implementation
Two sets of considerations for organizational transformations
provide insights for NPPD's organizational change decision making and
implementation. First, in May 2012, we reported on key questions for
agency officials to consider when evaluating an organizational change
that involves consolidation.\9\ Table 1 provides a summary of these key
questions from our previous work on organizational transformations,
which we developed through a review of selected consolidation
initiatives at the Federal agency level, among other things. Attention
to these factors would provide NPPD with assurance that important
aspects of effective organizational change are addressed.
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\9\ GAO-12-542.
------------------------------------------------------------------------
Key Questions
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What are the goals of the consolidation? What opportunities will be
addressed through the consolidation and what problems will be solved?
What problems, if any, will be created?
What will be the likely costs and benefits of the consolidation? Are
sufficiently reliable data available to support a business-case
analysis or cost-benefit analysis?
How can the up-front costs associated with the consolidation be funded?
Who are the consolidation stakeholders, and how will they be affected?
How have the stakeholders been involved in the decision, and how have
their views been considered? On balance, do stakeholders understand the
rationale for consolidation?
To what extent do plans show that change management practices will be
used to implement the consolidation?
------------------------------------------------------------------------
Source: GAO-12-542.
Second, as DHS was formed, we reported in July 2003 on key
practices and implementation steps for mergers and organizational
transformations. The factors listed in Table 2 were built on the
lessons learned from the experiences of large private and public-sector
organizations. The resulting practices we developed are intended to
help agencies transform their cultures so that they can be more
results-oriented, customer-focused, and collaborative in nature. As
NPPD reorganizes, consulting each of these practices would ensure that
lessons learned from other organizations are considered.
TABLE 2.--KEY PRACTICES AND IMPLEMENTATION STEPS FOR MERGERS AND
ORGANIZATIONAL TRANSFORMATIONS
------------------------------------------------------------------------
Key Factors When Implementing
Organizational Change Implementation Step
------------------------------------------------------------------------
Ensure top leadership drives the Define and articulate
transformation. a succinct and compelling
reason for change.
Balance continued
delivery of services with
merger and transformation
activities.
Establish a coherent mission and Adopt leading
integrated strategic goals to guide practices for results-oriented
the transformation. strategic planning and
reporting.
Focus on a key set of principles and Embed core values in
priorities at the outset of the every aspect of the
transformation. organization to reinforce the
new culture.
Set implementation goals and a time Make public
line to build momentum and show implementation goals and time
progress from Day 1. line.
Seek and monitor
employee attitudes and take
appropriate follow-up actions.
Identify cultural
features of merging
organizations to increase
understanding of former work
environments.
Attract and retain key
talent.
Establish an
organization-wide knowledge
and skills inventory to
exchange knowledge among
merging organizations.
Dedicate an implementation team to Establish networks to
manage the transformation process. support implementation team.
Select high-performing
team members.
Use the performance management system Adopt leading
to define responsibility and assure practices to implement
accountability for change. effective performance
management systems with
adequate safeguards.
Establish a communication strategy to Communicate early and
create shared expectations and report often to build trust.
related progress. Ensure consistency of
message.
Encourage two-way
communication.
Provide information to
meet specific needs of
employees.
Involve employees to obtain their ideas Use employee teams.
and gain their ownership for the Involve employees in
transformation. planning and sharing
performance information.
Incorporate employee
feedback into new policies and
procedures.
Delegate authority to
appropriate organizational
levels.
Build a world-class organization....... Adopt leading
practices to build a world-
class organization.
------------------------------------------------------------------------
Source: GAO-03-669.
Balancing Executive and Congressional Roles in Reorganization Decision-
making
In March 2012, we found that successful Government reorganizations
balanced Executive and Legislative roles and that all key players
engaged in discussions about reorganizing Government: The President,
Congress, and other parties with vested interests, including State and
local governments, the private sector, and citizens.\10\ It is
important that consensus is obtained on identified problems and needs,
and that the solutions our Government legislates and implements can
effectively remedy the problems we face in a timely manner. Fixing the
wrong problems, or even worse, fixing the right problems poorly, could
cause more harm than good.
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\10\ GAO-12-454T.
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We found that it is imperative that Congress and the administration
form an effective working relationship on restructuring initiatives.
Any systemic changes to Federal structures and functions should be
approved by Congress and implemented by the Executive branch, so each
has a stake in the outcome. In addition, Congressional deliberative
processes serve the vital function of both gaining input from a variety
of clientele and stakeholders affected by any changes and providing an
important Constitutional check and counterbalance to the Executive
branch.
applicable gao high-risk work
Securing Cyber Critical Infrastructure and Federal Information Systems
and Protecting the Privacy of Personally Identifiable
Information
Safeguarding the systems that support critical infrastructures--
referred to as cyber critical infrastructure protection--is a
continuing concern cited in our 2015 High-Risk Series Update.\11\ Given
NPPD's current cybersecurity activities, addressing these concerns in
any reorganization effort would be critical. For example, NPPD conducts
analysis of cyber and physical critical infrastructure
interdependencies and the impact of a cyber threat or incident to the
Nation's critical infrastructure. Sustained attention to this function
is vitally important. In our 2015 High-Risk Series Update report, we
note that to address the substantial cyber critical infrastructure
risks facing the Nation, Executive branch agencies, in particular DHS,
need to continue to enhance their cyber analytical and technical
capabilities (including capabilities to address Federal cross-agency
priorities), expand oversight of Federal agencies' implementation of
information security, and demonstrate progress in strengthening the
effectiveness of public/private-sector partnerships in securing cyber
critical infrastructures.
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\11\ GAO-15-290.
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In our 2015 High-Risk Series Update report, we highlight two
additional high-risk areas related to securing cyber critical
infrastructure. The security of our Federal cyber assets has been on
our list of high-risk areas since 1997. In 2003, we expanded this high-
risk area to include the protection of critical cyber infrastructure.
This year, we added protecting the privacy of personally identifiable
information (PII)--information that is collected, maintained, and
shared by both Federal and non-Federal entities.
Strengthening DHS Management Functions
Our 2015 High-Risk Series Update found that DHS made significant
progress in addressing our concerns, but that considerable work remains
in several areas. To the extent that these issues are relevant to a
reorganized NPPD, consideration of each area would be important so as
not to jeopardize DHS's progress in taking steps toward addressing its
implementation and transformation as a high-risk area. These areas of
concern include:
Acquisition management.--DHS has taken a number of actions
to establish effective component-level acquisition capability,
such as initiating assessments of component policies and
processes for managing acquisitions. In addition, DHS is
working to assess and address whether appropriate numbers of
trained acquisition personnel are in place at the Department
and component levels, an outcome it has partially addressed.
Further, while DHS has initiated efforts to demonstrate that
major acquisition programs are on track to achieve their cost,
schedule, and capability goals, DHS officials have acknowledged
it will be years before this outcome has been fully addressed.
Much of the necessary program information is not yet
consistently available or up-to-date. Attention to effective
acquisition management is particularly important in an NPPD
reorganization, given the substantial costs for cybersecurity
programmatic efforts. For example, NPPD's National
Cybersecurity Protection System, intended to defend the Federal
civilian Government's information technology infrastructure
from cyber threats, had a life-cycle cost of $5.7 billion as of
January 2015.
IT management.--While the Department obtained a clean
opinion on its financial statements, in November 2014, the
Department's financial statement auditor reported that
continued flaws in security controls such as those for access
controls, configuration management, and segregation of duties
were a material weakness for fiscal year 2014 financial
reporting. Thus, the Department needs to remediate the material
weakness in information security controls reported by its
financial statement auditor.
Financial management.--We reported in September 2013 that
DHS needs to modernize key components' financial management
systems and comply with financial management system
requirements. The components' financial management system
modernization efforts are at various stages due, in part, to a
bid protest and the need to resolve critical stability issues
with a legacy financial system before moving forward with
system modernization efforts. Without sound controls and
systems, DHS faces long-term challenges in ensuring its
financial management systems generate reliable, useful, and
timely information for day-to-day decision making.
Human capital management.--The Office of Personnel
Management's 2014 Federal Employee Viewpoint Survey data showed
that DHS's scores continued to decrease in all 4 dimensions of
the survey's index for human capital accountability and
assessment--job satisfaction, talent management, leadership and
knowledge management, and results-oriented performance culture.
Morale problems are particularly an issue among NPPD employees,
who report some of the lowest morale scores among Federal
agency subcomponents. DHS has taken steps to identify where it
has the most significant employee satisfaction problems and
developed plans to address those problems. In September 2012,
we recommended, among other things, that DHS improve its root-
cause analysis efforts related to these plans. As of February
2015, DHS reported actions underway to address our
recommendations but had not fully implemented them. Given the
sustained decrease in DHS employee morale indicated by Federal
Employee Viewpoint Survey data, it is particularly important
that DHS fully implement these recommendations and thereby help
identify appropriate actions to take to improve morale within
its components and Department-wide. In addition, given NPPD's
low morale scores, attention to employee concerns during
reorganization is crucial to engaging employees in
accomplishing NPPD's missions.
Management integration.--The Secretary's April 2014
Strengthening Departmental Unity of Effort memorandum
highlighted a number of initiatives designed to allow the
Department to operate in a more integrated fashion, such as the
Integrated Investment Life Cycle Management initiative, to
manage investments across the Department's components and
management functions. DHS completed its pilot for a portion of
this initiative in March 2014 and, according to DHS's Executive
Director for Management Integration, has begun expanding its
application to new portfolios, such as border security and
information sharing, among others. However, given that these
main management integration initiatives are in the early stages
of implementation and contingent upon DHS following through
with its plans, it is too early to assess their impact. To
achieve this outcome, DHS needs to continue to demonstrate
sustainable progress integrating its management functions
within and across the Department and its components.
Related GAO Work on Duplication, Overlap, or Fragmentation
Our prior work identified areas where agencies may be able to
achieve greater efficiency or effectiveness by reducing programmatic
duplication, overlap, and fragmentation.\12\ Since 2011, we have
reported annually on this topic, presenting nearly 200 areas wherein
opportunities existed for Executive branch agencies or Congress to
reduce, eliminate, or better manage fragmentation, overlap, or
duplication; achieve costs savings; or enhance revenue. Several of our
findings in the reports relate to DHS and NPPD activities. For example,
consistent with a previous recommendation with which DHS agreed, in
2015 we reported that DHS could mitigate potential duplication or gaps
by consistently capturing and maintaining data from overlapping
vulnerability assessments of critical infrastructure and improving data
sharing and coordination among the offices and components involved with
these assessments, of which NPPD is one.\13\ Also, in 2012, we found
that Federal facility risk assessments were duplicative, as they were
conducted by multiple Federal agencies, including NPPD's Federal
Protective Service (FPS). We recommended that DHS should work with
Federal agencies to determine their reasons for duplicating the
activities included in FPS's risk assessments and identify measures to
reduce this duplication.\14\ DHS did not comment on whether it agreed
with this recommendation at the time it was made and the recommendation
was not fully addressed as of March 2015. Addressing these duplication
concerns and any other fragmentation, overlap, or unnecessary
duplication that agency officials may identify as part of its
reorganization will improve the agencies' overall efficiency and
effectiveness.
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\12\ Fragmentation refers to those circumstances in which more than
one Federal agency (or more than one organization within an agency) is
involved in the same broad area of National need and opportunities
exist to improve service delivery. Overlap occurs when multiple
agencies or programs have similar goals, engage in similar activities
or strategies to achieve them, or target similar beneficiaries.
Duplication occurs when 2 or more agencies or programs are engaged in
the same activities or provide the same services to the same
beneficiaries.
\13\ GAO-15-404SP and GAO, Critical Infrastructure Protection: DHS
Action Needed to Enhance Integration and Coordination of Vulnerability
Assessment Efforts, GAO-14-507 (Washington, DC: Sept. 15, 2014).
\14\ GAO-12-342SP.
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Given the critical nature of NPPD's mission, considering key
factors from our previous work would help inform a reorganization
effort. For example, the lessons learned by other organizations
involved in substantial transformations could provide key insights for
agency officials as they consider and implement reorganization.
Attention to these and the other factors we identified would improve
the chances of a successful NPPD reorganization.
Chairman Ratcliffe, Ranking Member Richmond, and Members of the
subcommittee, this concludes my prepared statement. I would be happy to
respond to any questions you may have.
Mr. Ratcliffe. Thank you, Mr. Currie.
I now recognize myself for 5 minutes for questions.
So, as I referenced in my opening statement, it was 5
months ago, it was back in June that I first read about this
possible reorganization at NPPD through various media sources.
After several months of requests for information from DHS,
Chairman McCaul and Ranking Member Richmond and I wrote to
Secretary Johnson 3 weeks ago to express our concern about our
ability to fill our role of Congressional oversight and
authorization.
It was yesterday that I received from Secretary Johnson a
hand-delivered response to that letter, which essentially says,
``I approved NPPD's transition plan and understand that Under
Secretary Suzanne Spaulding is scheduled to brief you this
week. Thank you again for your letter and your interest in this
important issue.''
Under Secretary Spaulding, you and I did, in fact, meet
yesterday. But I want to make sure that we are all on the same
page here, because I heard your testimony today about the
collaborative effort that--in moving forward in this process,
but the letter from Secretary Johnson appears to say, ``I have
approved this and the ship has sailed.''
So I want to give you an opportunity to address that point
again.
Ms. Spaulding. Thank you, Mr. Chairman. I appreciate that
opportunity.
This has, as I said, been an on-going process. In fact, it
is one that did not start with looking at a wiring diagram but
really did start with looking at finding all of the ways which
we could work more collaboratively and efficiently and
effectively across NPPD.
When we reached a point where we felt that the benefits of
that collaboration and integration were increasingly apparent
and that it was also increasingly apparent that we were asking
our folks every day to fight the organizational structure, to
accomplish that collaboration and integration we were asking
them to do, we started looking at how we could better align our
missions--our functions to facilitate what we were asking them
to do.
The first step in that was to create an overarching
structure. What are the broad outlines? What would that look
like if we did that?
So we came up with a proposal. I sat down with the
Secretary.
He said, ``That looks right to me. That seems to be on the
right track.'' I briefed my workforce that this is what we were
proposing to the Secretary.
As soon as the Secretary had approved that, we came down to
the Hill to talk about, ``These are the overarching--this is
the broad outline of what we are doing.'' That was this summer.
Unfortunately, in trying to be transparent with my
workforce and inclusive, make sure that they are providing
essential input, we have increased the number of people who
have this information and who have the potential to go and talk
to the press.
But we have all through this process--again, and the
Secretary directed us to develop a more detailed implementation
plan, to get it to him by the end of the summer, by August 31,
which we did. He took a very quick opportunity to review that
and make sure that he was comfortable with it, gave us some
guidance.
We got final approval on that plan and were immediately on
the phone to say, ``We are--we now have something we can come
up and brief you on.''
So this is a difficult process of, you know, going through
the steps and making sure that all of our various folks are
informed at the appropriate times, but it is absolutely our
intent to work in a collaborative way with Congress----
Mr. Ratcliffe. Okay.
Ms. Spaulding [continuing]. On this process.
Mr. Ratcliffe. Thank you, Under Secretary. But just so we
are clear, do you agree with me that DHS can't move forward on
at least certain elements of this reorganization without
Congressional authorization under the Homeland Security Act?
Ms. Spaulding. Absolutely.
Mr. Ratcliffe. Okay. Your conversations with Secretary
Johnson are that he is clear on that as well?
Ms. Spaulding. Absolutely.
Mr. Ratcliffe. Okay.
Given NPPD's responsibility for engaging with and
encouraging stakeholder input for both its cybersecurity and
physical security missions, can you tell us what your
engagement has been at this point in time with NPPD's
stakeholders regarding this reorganization effort?
Ms. Spaulding. Yes. Again, as I said, my priority has been
to make sure that we are up here telling you as we have gone
through this process where we are in the process and giving you
the detail as we develop it in this plan. So this is part of
what I have talked about balancing.
So when we had the broad outline, and once we had been up
here to be able to talk with your staff about that, I took
advantage of opportunities in front of some of our stakeholder
groups to tell them--to give them that same broad picture about
where NPPD was moving, so that as we went through this process
they would not be surprised by things that came out.
Now that we have had an opportunity to get up and brief the
Congress on this next level of detail in our plan, which is an
on-going process, we are reaching out to our further
stakeholder groups to make sure that we are providing them that
additional detail, as well. So again, this is an outreach
effort that is on-going.
Mr. Ratcliffe. Okay. My time is expired, but--so very
quickly, have you reached out to the financial services and the
tech sectors?
Ms. Spaulding. So the financial services and tech sectors
are part of the cross-sector coordinating council, and I met
with them a couple of months ago to make sure that they
understood that this process was underway and the direction in
which we are moving.
Mr. Ratcliffe. And----
Ms. Spaulding. We are now going sector-by-sector to do our
outreach. But again, I wanted to be up on the Hill first.
Mr. Ratcliffe. Okay. Have you at this point had any
discussions with your Federal cybersecurity partners, like FBI
and DOD, on this proposed reorg and gotten any feedback from
them at this point?
Ms. Spaulding. Not in any formal way, Chairman. But again,
both of those are very close working partners and they are
aware of the direction in which NPPD has been moving.
Mr. Ratcliffe. Okay. With respect to all those
stakeholders, is it your intent to take their input into
account in--with respect to this reorganization as--and if
necessary adjust what has been proposed?
Ms. Spaulding. There is a lot of detail that still is being
worked out on this plan. In fact, I have designated champions
for each of the key areas who are working--continue to work in
an inclusive way with my workforce to fill out those details,
and they will be seeking input from our stakeholders to make
sure that we are, as we move forward on this, that we are
getting it right.
Mr. Ratcliffe. Thank you. My time is expired.
The Chair now recognizes Ranking Minority Member of the
subcommittee, Mr. Richmond, for his questions.
Mr. Richmond. Thank you.
I would just start with a quick statement, which is, you
know, I am really disappointed that we had to get here the way
we got here. I think it is just a lack of communication.
What I hope it is not is the dismissing our role and our
task and our authority and responsibility to make sure that the
people of this country are protected and Government is running
as efficiently and as smoothly as possible. We take that very
seriously.
I think that this committee, more than other committees,
works in a bipartisan fashion, and we try to be part of the
solution and not part of the problem. So just in the future, I
would hope that we could communicate so that we don't have to
have these type of meetings.
I don't want to be in the business of reorganizing NPPD.
You all wake up and you do it every day.
We do a million and one things. We have to figure out peace
in the Middle East; we have to figure out how to stop breaches;
and we have to figure out how to pass a budget.
So we have a million things on our plate, and I always
believe in deferring to the experts that do it, and I defer.
But I think that in deferring we still have a role to play in
making sure that, No. 1, it makes sense; No. 2, that we think
it achieves the efficiency and Unity of Effort which we all
hope to accomplish.
So just think of us as part of the team and--at least me--
and I would like to be helpful.
With all of that, let me ask you a question. With the
reorganization, with your mission, how does operating under
continuing resolution affect your ability to not only
reorganize but to budget, to plan, and to accomplish your
overall mission?
Ms. Spaulding. Ranking Member, first let me again thank you
personally, as well as the committee, for your strong support
for DHS and for NPPD and, most importantly, for our mission. We
have very much appreciated the partnership here, the
collaboration with the committee. I cannot emphasize enough
that that is--has always been our intent and continues to be
our intent, and I make that firm commitment to you.
I appreciate the question about the impact of a continuing
resolution. I mean, effectively what the continuing resolution
says is: Everything is frozen in place at last year's level of
funding and activity.
Unfortunately, our adversaries are not frozen in place. Our
adversaries are moving as fast as they can. They are changing;
they are evolving; they are responding to what we are doing,
and getting better, and finding ways around the mitigations
that we put in place, whether it is terrorists or cyber
hackers, or nation-states.
This transition reflects that, but every day we are looking
at ways in which we can build our capacity, we can do this
better, and we can continue to meet the challenge from our
adversary. Continuing resolution makes that very difficult.
Mr. Richmond. In my district, which we have talked about
the infrastructure and the petrochemical and the refineries and
the ports, I also have a lot of labor and union membership in
my district; not only people work for DHS, but in the ports,
the refineries, the other areas. What measures are in place to
engage with labor, both public and private, regarding the
changes you plan to make?
Ms. Spaulding. We have had on-going consultations and
discussions with the unions throughout this process, both
because I value their input as representatives of important
parts of my work force, but also, obviously, to be respectful
of bargaining agreements and the requirements of the law and
policies. So we certainly have, as I said, had a number of
meetings and briefings with our union representatives.
We also have regular meetings with a coalition that
includes labor generally, and in areas like our implementation
of Chemical Facility Anti-Terrorism Standards, for example,
with our high-risk chemical facilities, we have benefited from
the input of labor union representatives throughout that
industry. So those consultations and discussions continue.
Mr. Richmond. Really quickly to Chris, what are your
biggest concerns about this reorganization, and what could
derail success?
Mr. Currie. Thank you, sir, for the question.
You know, I wouldn't so much say at this point I have
concerns. I don't know that many details about it.
I think the biggest factor is that--that I am thinking
about in this is that these best practices for reorganizations
and transformations are followed. Oftentimes what we have seen
is when organizations rush these things, or they rush through
these things to address a real and pressing mission need,
oftentimes it is later on that the, like I said in my
statement, the management issues creep up, the acquisition
problems, the human capital problems.
Because, quite frankly, some of these things take time and
they take deliberation. For example, gathering employee
feedback is one of our best practices, but not just gathering
it, but showing employees how it was incorporated and actually
using the feedback and closing the loop on that so they feel
invested in it. That takes time and it can be a little painful,
quite frankly.
So, not that NPPB is rushing through this--I am not aware
of the details. But when that happens, sometimes mistakes can
be made.
Mr. Ratcliffe. Gentleman yields back.
I ask unanimous consent at this time to enter into the
record the September 15--yes, September 15, 2015 letter from
Members of the committee to Secretary Johnson, and Secretary
Johnson's October 6, 2015 response to the Members of the
committee that I referenced earlier in my opening and
questions.
Without objection, so ordered.
[The information follows:]
Letter Submitted For the Record by Chairman John Ratcliffe
September 15, 2015.
Dear Secretary Johnson: As leaders of the primary committee of
oversight of the Department of Homeland Security (Department), we are
encouraged by many of the efforts you are undertaking to strengthen
unity of effort within the Department. We share your desire to ensure
the Department is optimally organized to achieve its vital mission and
appreciate the responsiveness of your staff on some of the aspects of
this effort. However, we are concerned with the lack of transparency on
the proposed reorganization of the National Protection and Programs
Directorate (NPPD).
Despite multiple media reports on the proposal to reorganize NPPD
and numerous requests for information from our staff, we have yet to
receive any specific details from the Department. NPPD is home to a
number of important organizations, including the National Cybersecurity
and Communications Integration Center, the Office of Biometric Identity
Management, the Office of Emergency Communications, the Office of
Infrastructure Protection, and the Federal Protective Service, which
all need to be properly represented in any reorganization of NPPD to
effectively carry out their missions.
As you are aware, we are drafting legislation to update and improve
the Department, including NPPD. We took the first step in this effort
with the passage of H.R. 1731, which would rename NPPD as Cybersecurity
and Infrastructure Protection and codify a Deputy Under Secretary for
Cybersecurity and a Deputy Under Secretary for Infrastructure
Protection. As the Committee continues to work to fulfill its oversight
responsibilities and strengthen the Department, we will lead further
efforts to reorganize NPPD. We value your perspective on this process.
As such, receipt of information on your recommendation for the
organization of NPPD is necessary promptly.
We look forward to working hand-in-hand with you and Under
Secretary Spaulding on this critical effort. Thank you for your
consideration.
Sincerely,
Michael T. McCaul,
Chairman, Committee on Homeland Security.
Bennie Thompson,
Ranking Member, Committee on Homeland Security.
John Ratcliffe,
Chairman, Subcommittee on Cybersecurity, Infrastructure Protection,
and Security Technologies.
Cedric Richmond,
Ranking Member, Subcommittee on Cybersecurity, Infrastructure
Protection,
and Security Technologies.
Candice Miller,
Chairman, Subcommittee on Border and Maritime Security.
Filemon Vela,
Ranking Member, Subcommittee on Border and Maritime Security.
Scott Perry,
Chairman, Subcommittee on Oversight and Management Efficiency.
Bonnie Watson Coleman,
Ranking Member, Subcommittee on Oversight and Management
Efficiency.
Martha McSally,
Chairman, Emergency Preparedness, Response, and Communications.
Donald Payne,
Ranking Member, Emergency Preparedness, Response, and
Communications.
______
Letter Submitted For the Record by Chairman John Ratcliffe
October 6, 2015.
The Honorable John Ratcliffe,
Chairman, Subcommittee on Cybersecurity, Infrastructure Protection, and
Security Technologies, U.S. House of Represetatives,
Washington, DC 20515.
Dear Chairman Ratcliffe: Thank you for your September 15, 2015
letter.
The U.S. Department of Homeland Security's (DHS) National
Protection and Programs Directorate (NPPD) executes core parts of the
Department's mission. In particular, NPPD oversees operational activity
aimed at securing and enhancing the resilience of the Nation's
infrastructure against cyber and physical risks. I recently approved
NPPD's transition plan and understand that Under Secretary Suzanne
Spaulding briefed your staff on this plan last week and is scheduled to
brief you this week. In addition, Under Secretary Spaulding will appear
before your Committee's Cybersecurity, Infrastructure Protection, and
Security Technologies Subcommittee on October 7, 2015, to address
additional concerns. The transition plan includes the steps necessary
for NPPD to become a DHS Operating Component through strengthening the
operational aspects of the cyber and infrastructure protection missions
and realigning the mission support functions of NPPD to better support
these operations.
I am grateful for the support the Committee on Homeland Security
has provided to the Department's cyber and infrastructure protection
mission--particularly the actions taken to clarify the authority to
carry out our operations effectively. I am committed to continuing this
collaboration and look forward to working with you and your staff to
ensure the Department is best situated to carry out the mission of
cyber and infrastructure protection.
Thank you again for your letter and interest in this important
issue. The co-signers of your letter will receive separate, identical
responses. Should you wish to discuss this matter further, please do
not hesitate to contact me.
Sincerely,
Jeh Charles Johnson.
Mr. Ratcliffe. Chair will now recognize other Members of
the subcommittee for 5 minutes for questions they may wish to
ask the witnesses. In accordance with committee rules and
practice, I plan to recognize Members who were present at the
start of the hearing by seniority of the subcommittee. Those
coming in later will be recognized in the order of arrival.
Chair now recognizes the gentleman from New York, Mr.
Donovan, for 5 minutes.
Mr. Donovan. Thank you, Mr. Chairman.
To the panel, let me also, as the Chairman said, as our
Ranking Member said, thank you for the efforts that you make to
protect our Nation. They are very, very much appreciated by
everyone here and everyone in America.
Under Secretary Spaulding, I heard in your testimony and
read your testimony that was submitted that you have identified
areas where Congressional action is required to change existing
regulations that you have. That statement makes it very clear
that--why it is important to engage directly with the committee
before going so far down the road in a major reorganization.
I would also note that one of the specific areas of
improvement noted by the Government Accountability Office in
its review of DHS management functions is the need to better
communicate with Congress.
Can you outline for us specific areas that you believe
Congressional action is necessary before you are able to
reorganize as you wish to? I know this is a difficult forum to
do that, so if there is an opportunity after today's hearing to
put that in writing for us so we can understand what you feel
is necessary from us so you can perform your functions.
Ms. Spaulding. Great. Thank you, Congressman. We will take
advantage of that opportunity to provide the committee with
some input on the legislation that I believe the committee is
considering, as well.
But I will give you, you know, at least one example where
it is very clear that Congress needs to act. We would like to
move the Office of Emergency Communications to align it with
other stakeholder outreach and capacity-building efforts that
go on in NPPD that are very similar functions and put that into
that infrastructure security organization.
Right now the Office of Emergency Communications, by
statute, reports to the assistant secretary for cybersecurity.
So that will require a statutory change.
There is really not a lot about NPPD that is in statute,
but those things that are there will require some statutory
change.
In addition, we are very aware that Congress has said
significant reorganizations require Congressional approval, and
so, you know, again, we will be coming down and continue to
work with you to accomplish those things.
Mr. Donovan. It is just very helpful to us to know what it
is that you need.
Just briefly, Mr. Currie, you describe--this is an
incredibly talented panel of individuals who dedicated their
careers or part of their careers to helping protect our Nation.
You mentioned about how difficult it is to recruit people.
You all were recruited. Maybe Jeh had the--put the arm on
you to make you guys come along, but you guys were recruited.
You talked about the difficulty with morale with the employees
of DHS.
Can you explain to me why it is so difficult, do you feel,
to recruit candidates to perform this very essential duty to
our Nation and why you feel like morale in the Department is so
low?
Mr. Currie. Yes, sir. Well, first of all, I mean, I think--
and this--folks on this panel could probably speak to the
details of the difficulty in cyber recruiting more than me, but
I think it is pretty clear that the types of individuals with
the specializations and experiences you need are very
attractive to those in the private sector that are looking for
the same skills and can pay much more. So that is one piece.
The other piece is--we have reported on this in hiring--is
that the process in Federal hiring can be a disincentive, too,
and it can often take, you know, a very, very long time--6
months to a year--to get processed. They have to undergo very
stringent personnel background checks, and in these positions
have to get probably Top Secret or Secure Compartmentalized
Information clearances. That takes even more time.
So all of these processes make it very difficult to attract
and retain. But I know this is something that the under
secretary has talked about in the different forums and thinks
about a lot.
The issue of DHS morale is something that we have
actually--we have done several engagements or audits looking
specifically at that issue. It is a challenge. We have not
really zeroed it down to one specific reason, but there are a
lot of key themes.
The way the Department was formed initially, bringing
together 22 different component agencies, all with very
different missions and cultures, from agencies like TSA all the
way to agencies like Coast Guard, created a huge challenge in
becoming one different department.
I think the challenge that NPPD has--one of the challenges
is--and the folks on the panel mentioned it--is all these
disparate missions and workforces coming together. For example,
FPS was added to NPPD in 2009. They serve a completely
different mission than folks at the NCCIC in the cyber role.
So I think, you know, having--and from what I understand
from my behind-the-scenes discussions, part of this
reorganization is intended to bring the group together and the
workforces together under one clear mission, too.
Mr. Donovan. Thank you very much.
I don't have any time to yield, Mr. Chairman. Thank you.
Ms. Spaulding. Congressman, if I might, Mr. Chairman, on
the morale issue, I would note that NPPD in the latest survey
results did go up slightly, but it is at least a trend in the
right direction. The numbers are nowhere near where we would
like them to be or where they ought to be for our workforce,
but we are at least encouraged that we are nudging along in the
right direction.
I mentioned in my opening statement that one of the things
we are hoping to do is to change our name. I actually think
that while that may seem superficial, that that will also help
improve our morale by providing our workforce with a clear
sense of their identity and that cyber and infrastructure
protection is what we are all about--FPS, the NCCIC,
Infrastructure Security, all of our organization.
We are all part of the same team. One team, one fight. I
think that will help morale.
I know that the under secretaries are prepared to--our
deputy under secretaries--to talk about what we are doing on
the hiring front at the appropriate time.
Mr. Ratcliffe. Chair now recognizes the gentleman from
Florida, Mr. Clawson.
Mr. Clawson. Thank you, Ms. Under Secretary, and the rest
of you, for your good work. Appreciate you coming in today.
You know, our budgets seem to go up every year. We seem to
spend, you know, 5 or 10 percent more no matter what happens,
and the taxpayer is on the tab for that while the median wage
in our country continues to fall.
So we are kind of in this pressure where we seem to forget
the constituents that pay the bills--I am speaking in general
terms now--while our own budgets go up and up.
If we do the--when you do the reorganization, will the
budget actually go down? Will we actually get cost efficiencies
and cost productivity like the rest of the world lives with, or
is it just going to keep going up every year whether we do this
reorganization or not?
I see the 8.5 percent, you know, when I--so I hear
everything you are saying today, and I look at the 8.6
percent--am I--do I have the number right for 2016 for a year-
over-year increase, if I have the right number--and I say what,
you know, what--we are doing all these great things but we just
keep spending more money. Am I missing on the data there or am
I correct?
Ms. Spaulding. Congressman, I will have to get back to you.
I don't have that number in my head. But I would----
Mr. Clawson. But you agree----
Ms. Spaulding [continuing]. I would bet that you have got
that number right, but I can certainly get back to you on that.
But I certainly take your broader point, and I want to
emphasize that a significant part of what we are--why we are
doing this is to make sure that we are operating as efficiently
as we can. Our mission is growing every single day, and we are
painfully aware that there are not a lot of resources--
additional resources out there that can be handed over to us to
meet that growing demand.
We have got to become more efficient at doing our mission
so that we do not have to keep coming back and asking for
additional resources to do that. We think that, again, picking
up on GAO's emphasis on management, that has been a clear
focus.
I said I had three priorities: Unity of Effort, stronger
operations, and improved mission support. That is our
management function. There is a place where we have already
begun to create efficiencies--they are reflected in the fiscal
year 2016 budget--where we identified over $21 million of
efficiencies within our budget.
But we are going to continue to work at flattening that
organization and creating those efficiencies. I think by
leveraging our work force all toward this mission and bringing
them, for example, our folks who are out there in the field
doing infrastructure protection fully into the cyber mission,
that creates a significant efficiency that allows us to do more
in that cyber mission without asking for as--you know, the kind
of additional resources that that growth in mission might
suggest.
So I hear you, and it is a key objective of mine.
Mr. Clawson. Mr. Currie, do you have any comments on this?
Do you believe that if we do the reorganization we will get
better cost control and cost reduction for the taxpayer, or do
you have enough information to have an opinion?
Mr. Currie. No, sir. We don't have enough information on
it.
But this is really important. One of the first things that
we note to do in such a transformation is to do a full
assessment of the costs and benefits.
When I say that, that is not just, you know, a 1-page list
of, ``here is what is going to work well and here is what we
are going to save or not.'' I mean, this is a--we ask for an
extensive assessment of what the actual costs of this are going
to be over time and then what the perceived benefits are, and
then ask officials to weigh that in the future to see, you
know, what decisions they need to make.
Mr. Clawson. I agree with everything I am hearing on a
qualitative level, you know, unifying the mission, better
communication, common metrics. We all understand all that.
But if going into next year your budget goes up in a
meaningful way on a year-over-year basis then we have a much
more difficult conversation about why we did this. So if we are
going to constantly reorganize just to increase the budget,
then I would be remiss in my responsibilities to my
stakeholders, which is the taxpayers, if we didn't point that
out.
So at least speaking for me and my constituents, I would
like to support it. You certainly have a positive tone here and
all over it. But if your numbers are going to keep going up
then we ought to have--reorganization or not, we ought to have
a budget conversation because that is part of our
responsibility is oversight, as well.
You agree with what I am saying, Under Secretary?
Ms. Spaulding. Absolutely. Congress clearly has a, you
know, a vital role in determining the level of resources that
should be devoted to this mission space.
You know, what I am--we are trying to accomplish this
transformation or reorganization and restructuring of our
organization in as budget-neutral a fashion as possible. We are
realigning existing missions and functions.
That having been said, you know, if Congress wants DHS to
do more in the cyber space and to take on additional roles and
additional functions, we will have to come down and have a
conversation about resources devoted to that. But as I said,
this transition is designed to do what we are doing today more
efficiently and more effectively.
Mr. Ratcliffe. Thank the gentleman.
Welcome the gentleman from Rhode Island, recognize him for
5 minutes. Mr. Langevin.
Mr. Langevin. Thank you, Mr. Chairman.
I want to thank our witnesses for being here today and your
work you are doing on this issue.
So for Secretary Spaulding, I think--let me begin, if I
could, with you. I think I am beginning to get my head around
the proposed organizational changes that we are making, but I
am still a bit confused as to how the restructuring will affect
cybersecurity roles and responsibilities. For instance, it
seems that the NCCIC will be responsible for some outreach to
sectors, but critical infrastructure, cyber community program,
and cyber advisors will be in the Infrastructure Security
component.
So can you clarify what cybersecurity responsibilities
Infrastructure Security and the Federal Protective Service will
have, and why the Department assigned those responsibilities?
Ms. Spaulding. Yes. Thank you, Congressman.
You know, one of the things that we want to emphasize is
that putting both cyber and physical stakeholder outreach and
engagement management within Infrastructure Security is meant
to strengthen, facilitate, coordinate that outreach, not to get
in the way of existing relationships.
So for example, the private sector is represented on the
floor of the NCCIC today. That will not change. Those tactical
operational relationships that are focused on that, you know,
making sure that we have the capabilities for incident response
and mitigation that is the lifeblood of the NCCIC--those
relationships and that work will not change.
What we will change is that our work that goes on every day
all across the country, where we sit down with critical
infrastructure owners and operators, primarily today through
our protective security advisors in the Office of
Infrastructure Protections, those field forces will be fully
enlisted in our cyber mission, in addition to the physical
security mission that they focus on today. So that will
strengthen our cybersecurity mission and ability to execute
that, and I will give you an example that I know you are, you
know, you are very well aware of.
If, for example, today the NCCIC sees malicious activity,
say, in a water facility, their ability to turn quickly to the
folks who have on-going relationships with that sector and with
individual owners and operators all across the country to get--
to use that network, to use those field forces, to get that
word out quickly, ``This is what to be on the lookout for; this
is what to watch for,'' that kind of speed of getting that
information out is what is going to help us protect and do
effective network defense. That is what we are trying to build
in this.
Mr. Langevin. So do you feel that this is going to help you
to be more proactive, as opposed to reactive? Is that what you
are suggesting?
Ms. Spaulding. Absolutely. They will be out there every day
with those owners and operators doing not just physical
security assessments but cybersecurity assessments, identifying
ahead of time critical vulnerabilities, configuration, et
cetera, and working with them, in collaboration with the NCCIC
and our cyber ninjas, as I call them, on mitigation measures.
Mr. Langevin. All right. I think that is critically
important that--not being so much in a reactive role but being
more proactive. That is what is going to really ultimately keep
us safer.
Secretary Spaulding, DHS has a number of important
responsibilities under FISMA, and some in Congress are looking
to expand them even further. These responsibilities encompass
information sharing but extend far beyond it. DHS is also
responsible for developing and helping to deploy network
security technologies on Federal networks.
Can you explain why these functions are included under the
NCCIC?
Ms. Spaulding. I am going to have Deputy Under Secretary
Schneck weigh in on this, as well, but the NCCIC is really
designed to be our--execute our operations on cybersecurity. A
big part of that is the EINSTEIN and Continuous Diagnostics and
Mitigation, and our best practices under FISMA with the dot-
gov.
Part of what Deputy Under Secretary Schneck has been
working on in her time at NPPD is making sure that we do, in
fact, have an integrated architecture and an overarching
strategy that brings these things together. So again, this is
an area where we want the organizational structure to support
that.
Dr. Schneck.
Ms. Schneck. Thank you.
Thank you, Congressman Langevin, for all of your support
over many, many years.
So the NCCIC is the tip of the spear. That is the 24 7
watch center and it houses our CERT, our Computer Emergency
Readiness Teams, for both regular I.T. as well as those systems
that control physical infrastructure such as lights, water,
refineries, as was mentioned earlier, ports.
Within that we also have now--we are going to be looking at
the Einstein and CDM programs, as we have been doing over the
past 2 years. There is not just protecting the Federal
agencies--so the EINSTEIN program, as you recall, watches
whether bad guys are trying to get into Federal agencies and
whether those agencies are unknowingly calling out to bad guys.
We also get a large piece of situational awareness from
that program. We see, with the help of our privacy and civil
liberties experts, all the traffic going--all the internet
traffic going in and out of our Federal agencies, and we use
that for situational awareness.
As we roll out Continuous Diagnostics and Mitigation to
protect the inside of the agency networks, each agency gets a
dashboard, like the one in your car that shows you gas and
speed and things about your car. This dashboard shows you 24/7
things about the security of each agency's network.
As we combine the data from each agency's dashboard--this
is just coming out now--with the data that we see from outside,
watching who is trying to hurt our agencies by coming in and
where they might be calling--we put together a large map of how
to connect the dots, so a large piece of situational awareness.
I sometimes nickname it ``The Weather Map,'' because when you
put all that data together you see things that you wouldn't see
without it.
That helps that NCCIC, that response center, understand
exactly what is happening, and it helps us as being the center
of machine-to-machine, so very fast information sharing, make
sense of what we are seeing, and push more context and more
cyber-threat indicators, if you will, to everyone--not just to
Government, but to private sector, to universities, so that we
can paint a much bigger security picture across our country.
So all those programs--sometimes I call it the artifacts,
the data they produce, or the exhaust across the Federal
Government--we push that out to everyone, to the private
sector, and again, with the help of all of our privacy and
civil liberties experts.
Mr. Langevin. Thank you.
Mr. Chairman, are we going to go for a second round?
Because I had one more question, as well.
Mr. Ratcliffe. We are.
Mr. Langevin. Okay.
Mr. Ratcliffe. So the gentleman yields back?
Mr. Langevin. I yield back.
Mr. Ratcliffe. I would like to take advantage of having you
all here to get some additional information, and so we will do
a second round of questions for any Members that want to take
advantage of that opportunity.
So I recognize myself for an additional 5 minutes of
questions.
Under Secretary Spaulding, we have obviously got some
information. Can you give us a date for when we will get the
full plan? We have talked about some of the parameters of it
and a transition plan, but can you give us some idea of when we
could expect to see the full plan as you propose it?
Ms. Spaulding. So again, I keep emphasizing that this is an
on-going process, and so, you know, we--again, we are striving
to have by the end of this calendar year the next level of
details on this plan and be ready, you know, in consultation
with Congress, to really begin to move out on some of the
things particularly that will require Congressional approval.
But again, I want to emphasize that this has been a--part
of this on-going process has been that we have been doing the
things that enhance collaboration and integration all along,
and as we see those opportunities, like the regional field
pilot project, you know, we will be undertaking those.
Mr. Ratcliffe. Well, let me follow up on that because, you
know, what I hear you saying is that obviously we agree on the
fact that there are a number of things that absolutely do
require Congressional authorization, but I--as I hear your
testimony and the collaborative spirit in which you are here, I
would--would it be fair to say that you are committed to
collaborating with Congress to authorize 100 percent of NPPD?
Ms. Spaulding. I believe Congress today authorizes 100
percent of NPPD. Chairman, I am not sure I am getting the
thrust of your question. Congress authorizes our activities and
appropriates the funding for those.
Mr. Ratcliffe. Absolutely. I just want to be clear because
we talk about parts of things that Congress may authorize, and
I just wanted to--I think we are very much on the same page
there, so I appreciate that.
Dr. Schneck and Dr. Clark, question for you: In this
proposed--this new Office of Infrastructure Security it appears
that you have got the CFATS, or the Chemical Facility
Antiterrorism Standards, program in there, which is a
regulatory program, in with the Critical Infrastructure Cyber
Community Voluntary Program, which some refer to as C-Cubed.
Is there a concern there of having a regulatory program in
with a voluntary program? Because my experience is that folks
are very reluctant in a voluntary program to share their
vulnerabilities with a regulator who may then hold them
accountable for that.
Mr. Clark. Chairman, I think it is a fair concern, and a
particular concern, I think, for industry, whether this--
whether they are entering into a regulatory relationship or one
that they are voluntarily entering into. The current structural
separation of the divisions and the management of that
information sharing, I believe both for yourself and Ranking
Member, you have a number of CFATS facilities with--inside your
district, so there is a very clear compartmented mechanism that
allows us to differentiate the two. We need to continue to be
clear with our stakeholders the difference and which regulatory
regime they are a part of.
Mr. Ratcliffe. Dr. Schneck.
Ms. Schneck. Yes, I would echo that, and I would add, we
are accustomed to this. So the structure today, if I am not
mistaken, has a large voluntary work piece within the Office of
Infrastructure Protection, so basically all of the voluntary
outreach to all sectors except for I.T. and coms that come
under cybersecurity and communication. So our stakeholders are
very, very accustomed to working within an organization that
houses a regulatory regime as well.
In addition, DHS itself has law enforcement inside of the
agency itself, although our part is not law enforcement. Our
stakeholders--customers, as I call them--are also very okay and
very accustomed to working with us as the non-law enforcement
piece, and then reach out as needed and desired to Homeland
Security Investigations, or the Secret Service, or even
externally to our friends at the FBI.
Ms. Spaulding. I would add, we do have two statutory
regimes that enable us to protect that information. Under CFATS
we have a critical vulnerability information regime that
requires that that information that is provided under that
regulatory regime be held within that regulatory regime. We
also have a PCII, Protected Critical Infrastructure
Information, where companies that voluntarily provide us with
vulnerability information, we are prohibited from giving it to
regulators.
So we have in place that--and again, as Dr. Schneck said,
our stakeholders are very comfortable with these things
coexisting today.
Mr. Ratcliffe. Okay. Thank you.
I do want to follow up on the, you know, a point that Dr.
Schneck made about the law enforcement components, and
something that you said earlier, a term that you used a number
of times, Under Secretary, and that is that part of the goal
here of this reorganization or realignment is to make NPPD an
operational component. But I think that most people would agree
that NPPD has some operational aspects, but when most people--I
think when most people think of the term ``operational
component'' they think of Secret Service or Customs and Border
Protection.
So I guess I want to get you on the record to say, what do
you mean when you use the term ``operational''?
Ms. Spaulding. So, you know, I would ask people to think
more like FEMA, which is an operational component. What I mean
by that is making a difference on the ground, that we are about
being out there and executing this mission directly with our
stakeholders, so sitting down with them to do these
assessments, to offer this technical assistance and training,
whether it is active-shooter training or it is table-top
exercises for responding to combine physical and cyber
consequences and incidents, that our PSAs, our chemicals
inspectors are out there every day.
What I want to do is to make sure that both within my
organization, within the Department, and within our stakeholder
community, everyone understands that is what we are about. We
are about that activity on the ground, making a difference in
security and resilience of our Nation's critical
infrastructure.
Mr. Ratcliffe. Terrific. My time is expired.
Recognize the gentleman from Louisiana, Mr. Richmond.
Mr. Richmond. Thank you.
Let me go back to the back-and-forth that you had with the
Chairman about your need to have Congressional approval. I
guess as I see it, as you are doing your reorganization and you
see things that you all need to do and you start to implement
it, you don't believe that you have to get Congressional
approval for every step of your reorganization, do you?
Ms. Spaulding. There is a Congressional prohibition on
significant reorganizations without Congressional approval, and
so I am consulting all the time to make sure that we are not
doing anything that would, you know, run afoul of that
obligation.
Mr. Richmond. But the things you can do that you think
bring in efficiencies, make us more secure, and are going
towards the Unity of Effort you all are moving forward with?
Ms. Spaulding. Have been. So developing a strategic plan
that is much more integrated across all of our organization,
setting up, you know, a function to provide a better-integrated
briefing to me every day, you know, a set of folks who ping all
of the components and find out what they are doing.
I want to take that to the next step, where they are
actually providing an integrated versus just compiled, but we
need to beef up that function.
But absolutely. You know, we moved our National
Infrastructure Coordinating Center into the same building as
our National Cybersecurity Integration Center to bring the
physical--people watching the physical world closer together
with the people watching our networks, right, our cyber space.
I want to get them in the same room, for example.
Mr. Richmond. Okay.
I guess you also have a pilot in Atlanta, where you are
now--your consolidation project. Do you plan any more of those?
Ms. Spaulding. So, given the terrific results of that pilot
project to date, I think it is very likely that we will be
coming down to talk with you about our plans to extend that
across the country to have this regional integration in the
field--not just at headquarters, but really where it matters,
which is out in the field.
I would encourage Members of this committee and--but, you
know, to get down to Atlanta and visit with those folks if you
find yourself in the area, because it is very inspiring and
very exciting.
Just putting these various field forces together in the
same office to sit around the table every day, the light bulbs
have been going off every single day about the ways in which
they can all do their mission and we can do our mission better
by working more closely together.
Mr. Richmond. Well, and I will actually make that
commitment and take you up on that offer to----
Ms. Spaulding. Excellent.
Mr. Richmond [continuing]. Go visit.
The other thing I would just say is as concerned as I am
about, you know, anyone keeping to themselves about
reorganization and where we think we should go, I guess I am
just as concerned that--it is my understanding that the
Majority side is working on a reorganization also, and I would
just hope that we don't get into, you know, a power contest
about who does what and when and we just actually sit down and
get together and figure out how we continue to make--and
protect our cybersecurity networks and keep our citizens safe.
I will say again, my philosophy in life, and I think that
Congress would be better off if everybody understood and know
what they know, and know what they don't know. The fact that
there are experts that wake up every day trying to keep us safe
and protect the internet, I think we have a role to play in
oversight; I think we have a role to play in planning the
mission; but I think that there are other people who actually
go out and run the plays after we meet in the huddle and we
call the play.
So I just want to make sure that as we are in the huddle
that everybody is talking. I guess that is for the Majority
side, that is for you all, and that is for us, that we are not
working in seclusion when I think that if we work together we
can get to where we want to be faster because you said it--
these things change every day, every night, and we have to be
perfect 100 percent of the time and the hackers have to get
lucky once. When they get lucky we all pay for it.
So I just think that this is one of those areas, and I do
commend the Chairman because we have worked in a bipartisan
manner, for the most part, because it is so important.
I would just encourage you to continue to do that because
the mission is so great and the consequences are even greater.
With that, I yield back.
Mr. Ratcliffe. Thank the gentleman. I thank the gentleman--
appreciate the spirit of the Ranking Member's comments and
certainly associate myself with his comments that, you know
cybersecurity should not be a partisan issue.
With that, I recognize the gentleman from Rhode Island
again, Mr. Langevin.
Mr. Langevin. Thank you, Mr. Chairman. I completely agree,
and I want to thank you, Mr. Chairman, and the Ranking Member,
for the time and attention you are placing on this issue on
cyber and on the reorganization.
To our panel, thank you again for your testimony.
Sticking with Federal network security, one of my chief
concerns is that because agencies are primarily responsible for
their own InfoSec, DHS inherently has a more reactive posture.
It is basically limited in the protective measures that it can
take by the action or inaction of the agencies that it is
helping to protect.
So do you believe that a reorganization will--or, for that
matter, even can--help DHS be more proactive, given that the
primary responsibility still lies elsewhere? Do you believe
that agencies should, in fact, have primary responsibility for
their own InfoSec?
Ms. Spaulding. Congressman, we are obviously not waiting
for reorg to step up our efforts in the dot-gov arena, and we
have been greatly aided in that by the work of this committee
and of the Congress, including the authority that the Secretary
was given in legislation that you enacted last year to issue
binding operational directives.
So we do not feel in any way that we are limited to being
reactive when incidents happen. Our folks are out there every
day working with departments and agencies to make sure they are
aware of the requirements of FISMA and broader best practices
and standards. Using the Secretary's authority, he issued his
first binding operational directive related to patching
critical identified vulnerabilities, and it has made a
significant difference.
So I do think that this reorganization will help us to
strengthen that, but I--but we are moving out on that right
now.
Deputy Under Secretary, I don't know if you want to add----
Ms. Schneck. I would only say on the proactivity front I
think the merging of expertise more expeditiously across the
different sectors will help us greatly as we build out on our
vision. Einstein is a tool in the box. It is a platform. It
provides us data and the ability to see and stop some things.
But moving out on top of that, we have the opportunity to
leverage innovation across the private sector. That goes to, as
we open our Silicon Valley office and get more and more
exposure to the latest and greatest technologies, not only how
to protect them but to use them and to bring them back into
Federal civilian government and all of our customers. As we
look at all across the sectors, it is going to allow the cyber
folks to work faster to understand what part of what place
needs to be protected better, how to leverage data analytics,
and how to move with the agility that before this only our
adversary has enjoyed.
Mr. Langevin. Thank you.
I hope this will help us to be more proactive.
I just would point out once again, Under Secretary, that,
you know, the term ``binding operational directive'' sounds
very authoritative, but it still has no teeth. There are no
consequences.
So if agencies aren't really compelled, they are not held
accountable, then you--we are still back at Square 1. So I will
be anxious to see the actual--how we quantify action on these
binding operational directives, and that it is not just a fancy
term with no teeth.
So with that, I just want to also turn back to the issue of
regional coordination.
New Jersey recently stood up the New Jersey Cybersecurity
and Communications Integration Cell, and other States have
begun similar efforts to coordinate critical infrastructure
protection, particularly with respect to cybersecurity. Again,
can you expand upon this a little more--how will regional
integration take advantage of and avoid conflicting with
existing State efforts?
Ms. Spaulding. We work very closely with State homeland
security advisors and emergency response and public safety, but
various parts of our organization work with various parts of
that--those State, local, territorial, and Tribal governments,
and that is part of what we are trying to do with this
reorganization is to make sure that we are doing that--that
those engagements are coordinated; that they are integrated
where it is appropriate, where they are operating in a
collaborative way.
Where relationships that a protective security advisor may
have by virtue of having been there in the wake of a storm--
Super Storm Sandy--to help identify critical infrastructure and
prioritize the allocation of resources, that those
relationships can be brought to bear when our cybersecurity
advisor has information to impart or wants to talk about how
the emergency communications need to be strengthened against
cyber--potential cybersecurity vulnerabilities, for example.
So I do think this will strengthen, as opposed to conflict
with, those very important relationships and the kind of
integration that is happening in our States. It will happen at
the field. In addition to the work we will do at headquarters,
the key really is going to be making sure that we have our
field forces talking to each other, and that is what this
regionalization is really all about.
Mr. Langevin. Do you envision that these regional
integration, say, centers, are they going to be co-located or
actually happen at the FEMA Region One--at the FEMA regional
headquarters?
Ms. Spaulding. They will align with FEMA regions, and
certainly in Region Four the goal is to share a building, I
think, with FEMA. FEMA is moving right now. But that won't
necessarily be the model for every region across the country.
But certainly that relationship is absolutely critical. We
support FEMA in very important ways.
The team down there is supporting the response to the
flooding in South Carolina, for example, and across the
Southeast. So those relationships are important, and where co-
location makes sense we will do that.
Mr. Langevin. Very good.
Thank you all.
Thank you, Mr. Chairman. I yield back.
Mr. Ratcliffe. Gentleman yields back.
Thank all the witnesses for being here today. I thank you
for your testimony, for its content, for the spirit of your
testimony, and for the candor of your responses to the
questions.
I thank the--all the Members for their presence and for
their thoughtful questions to the panel.
Members of the committee may have some additional questions
for the witnesses, and I think that has been indicated, and we
will ask you to respond to those in writing.
Pursuant to committee rule 7(e), the hearing record will be
held open for a period of 10 days. Without objection, the
subcommittee stands adjourned.
[Whereupon, at 11:40 a.m., the subcommittee was adjourned.]
A P P E N D I X
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Questions From Chairman John Ratcliffe for Suzanne E. Spaulding
Question 1. What problem are you trying to solve with this
reorganization? Why move forward on a reorganization, now, towards the
end of an administration?
Question 2. What is the mission of NPPD? What mission will this
reorganization create?
Answer. The mission of NPPD is to lead the National effort to
secure and enhance the resilience of the Nation's infrastructure in the
face of cyber and physical risks. As discussed in the Transition Plan,
NPPD underwent a review of its mission and core functions that has
informed the proposed transformation. NPPD is not proposing a new
mission. The new structure proposed by NPPD will allow the organization
to carry out and deliver the current mission in a more integrated and
effective manner.
NPPD is undertaking this transformation to strengthen operations,
enhance unity across the organization to address both cyber and
physical risks to infrastructure, create greater efficiency, and
improve services provided to stakeholders. NPPD's legacy structure,
particularly the programmatic divide between physical and cybersecurity
and resilience efforts, limits the effectiveness of operations, creates
silos between programs, is less efficient because there are multiple
layers of business support functions, and does not provide service to
our stakeholders at a level reflective of NPPD's capability. The need
for these changes has been steadily growing as the Nation faces an
evolving threat environment, especially within the cyber mission. These
threats facing businesses and governments at every level are not
receding; our adversaries are not pausing. We cannot wait to optimize
our capability to meet this challenge. Moreover, since the concepts and
plans for these changes were developed by the NPPD workforce made up of
career civil servants, we expect the transformation to be enduring
across administrations.
Question 3. This is the second major reorganization within NPPD in
3 years (CS&C and OCIA were recently reorganized as well as the
movement of offices like OBIM and FPS into NPPD). NPPD was itself
created less than a decade ago. What specific metrics do you have that
support the argument that this reorganization is best for DHS in the
long term, is manageable in the long term, and is the best use of
employee time and taxpayer dollars?
Answer. The proposed restructuring is focused on the component's
full mission space to respond to evolving threats. Subcomponents within
NPPD have undergone organizational change but there has never been a
component-wide restructuring that addressed the component's full
mission space and evolving threat requirements. NPPD was created on
March 31, 2007, pursuant to DHS's authority under Section 872 of the
Homeland Security Act of 2002 (Pub. L. 107-296). Upon its creation,
NPPD was comprised of the Office of Cybersecurity and
Telecommunications (CS&T), the Office of Infrastructure Protection
(IP), the Office of Risk Management and Analysis (RMA), the Office of
Intergovernmental Programs (IGP), and United States Visitor and
Immigrant Status Indicator Technology (US-VISIT). Over the years,
various pieces of the organization have been transitioned out of the
organization (RMA and IGP) or have been altered (US-VISIT became Office
of Biometric and Identity Management (OBIM) at the direction of
Congress). NPPD also assumed responsibility for the Federal Protective
Service (FPS) in 2009 and established the Office of Cyber and
Infrastructure Analysis (OCIA) in 2014. Most significantly, NPPD has
grown from a headquarters component of a few hundred to an operational
entity with a workforce of more than 3,000 Federal employees and
approximately 15,000 contractors located throughout the country.
Guidance on enhancing the security and resilience of critical
infrastructure, including the 2014 Quadrennial Homeland Security Review
and the 2013 National Infrastructure Protection Plan, has increasingly
recognized that entities must use a holistic risk management framework
that considers both cyber and physical risks. Over the past few years,
NPPD has conducted a thorough review of current functions in order to
align the structure of its programs to known industry best practices as
well as understand how NPPD can operate more efficiently. This has
included working with the Department to identify functions that may be
better located in other parts of the organization and engaging the NPPD
workforce to determine how NPPD should best carry out its mission.
While organizational change can be challenging, when carried out
following best practices, such as those identified by the Government
Accountability Office, the change will ultimately benefit the mission.
Question 4. You have said that one of the reasons for this
reorganization is to adapt to an evolving threat. Is it the correct
answer to reorganize every time the Nation faces a new threat? Does
reorganization not distract from the addressing the threat?
Answer. Our adversaries are agile and adaptive; we must be also.
Since NPPD was created in 2007, the evolving cyber threat has resulted
in clarified operational authorities, including significant legislation
initiated by this committee. The organization has grown in complexity,
and the convergence of risks facing infrastructure require that NPPD
better integrate its efforts across the organization to more
effectively and efficiently carry out its mission. In a time of growing
mission demands and continued resource constraints, greater
efficiencies are imperative. NPPD is balancing current operations by
following U.S Government Accountability Office (GAO) best practices for
reorganization to ensure the mission does not suffer.
Question 5. In late September, it was reported that the Department
of Homeland Security was rated last in the 2015 Federal Employee
Viewpoint Survey. How will this reorganization impact this finding?
Will a major reorganization or realignment not increase the turmoil?
Answer. The transformation is designed to provide greater clarity
of mission, a stronger sense of identity, and structures and
capabilities that make it easier for the workforce to effectively
accomplish mission requirements. The NPPD workforce carries out the
incredibly difficult and demanding mission of protecting our Nation's
infrastructure and their hard work forms the backbone of our operations
as we strive to meet evolving mission needs. Having structures in place
that facilitate the operational focus and holistic approach that the
mission requires, as well as a name that clearly conveys that mission,
should help improve morale. Although NPPD still needs to make
significant progress in improving morale, Federal Employee Viewpoint
Survey scores have been rising. Moreover, NPPD is following best
practices in change management, particularly those recommended by GAO,
to involve employees, build trust, and gain ownership for the
transformation. More than 100 employees participated in working groups
that took place from July-August 2015, and many more have become
involved as the planning efforts continue. Many of the ideas we
proposed in the Transition Plan came directly from our workforce, and
our employees have served a critical role in this process by developing
recommendations, the Transition Plan, and follow-on action plans.
Question 6. GAO recommends obtaining consensus with stakeholders on
identified problems and needs as well as solutions when considering
reorganization. Do you have a record of input provided by your
employees? If so, please share that information. If not, why not? If
not, how was input formally tracked and integrated? Was any feedback
provided in response to specific employee comments? Morale at NPPD is
and has been dismal. (Among the lowest at DHS and the Federal
Government). How confident are you that this proposal will improve
morale? How can you know when the plan has been recently completed? How
can you ensure any reorganization will not affect morale in a negative
way? Have you surveyed your workforce? If this negatively impacts
morale, who should we hold accountable?
Answer. As noted above, GAO best practices on transition recommends
obtaining consensus with stakeholders on identified problems and needs
as well as solutions when considering reorganization. This
transformation and the ideas proposed in the Transition Plan have been
driven by NPPD employees. Feedback was first collected through the
working groups of the Mission Integration Cell in the form of
recommendations on how to better integrate programs (attached as
requested).* The Mission Integration Cell recommendations were used to
develop the framework for the proposed organization. Employees were
then asked to participate in working groups to develop the Transition
Plan. The Transition Plan, which was previously provided to the
committee, but is also attached,* includes input provided by employees.
Feedback was provided to all specific comments received. In addition,
NPPD has established an email account for employees to submit questions
and receive answers regarding the transformation. These questions are
tracked and cleared of personally identifiable information, then posted
to the internal NPPD Transformation site.
---------------------------------------------------------------------------
* [The information was not received at the time of publication.]
---------------------------------------------------------------------------
Cultural change is often more difficult than structural change, but
when accomplished, it can generate dramatic, positive results for the
workforce. NPPD's Federal Employee Viewpoint Survey results have risen
slightly over the last few years. While we still have a long way to go,
making cultural changes as discussed in the Transition Plan will
further support improving morale. Critical to this success is ensuring
that changes to structure, process, vision, human capital and knowledge
management systems, and governance are designed to reinforce the new
culture of the organization. We are cognizant of the impact to the
workforce. However, an organizational structure that is agile and
allows flexibility to respond to the evolving mission provides
stability to the workforce as well as clarity of focus for the
organization going forward. NPPD has taken steps to ensure there is
appropriate change management support throughout the transition.
Question 7. Part of your plan includes regional integration, but
the regional pilot that has not yet concluded, nor has it formally
reported its findings. What is the purpose of this pilot, if not to
gather data for the proposal? How much has this pilot cost, and how
much will it cost, including office costs, equipment, travel, per diem,
overtime, and man-hours?
Answer. In July 2015, NPPD established a 6-month Regional
Integration Pilot to assess the benefits of integrated field forces and
to provide recommendations for aligning NPPD's field forces into a more
cohesive organization. To achieve the priorities of both enhancing
operations and achieving a Unity of Effort across programs, NPPD will
evaluate the on-going results of the pilot project to inform any plan
to shift resources and personnel from the National Capital Region (NCR)
and establish regional headquarters in the 10 Federal regions.
Initial findings have indicated the need for additional staff to be
located in the field, but specifics on which positions will wait until
the After-Action Report is completed. In addition, NPPD will need to
work closely with the Department's Management Directorate for space and
resource allocations as consideration is made for regional integration.
Costs for the first quarter of the pilot are included below. This
does not include salaries and benefits since those are not new costs
and would be incurred whether the position was stationed in the field
or headquarters.
PILOT COSTS FOR QUARTER 4 FISCAL YEAR 2015 (JULY-SEPTEMBER)
------------------------------------------------------------------------
Expense Amount
------------------------------------------------------------------------
Rent.................................................... $82,127.22
Security................................................ 9,331.86
Information Technology (IT)............................. 14,463.75
Supplies................................................ 26,380.00
Travel (includes Per Diem).............................. 199,170.61
---------------
Total............................................. 335,676.52
------------------------------------------------------------------------
Question 8. How will the proposed reorganization affect CS&C and IP
partners? Are there any metrics to indicate their preferences? Has
formal feedback on the plan been requested through the Sector-Specific
Agencies?
Answer. The key changes for the Office of Cybersecurity and
Communications (CS&C) and the Office of Infrastructure Protection (IP)
are the elevation of the National Cybersecurity and Communications
Integration Center (NCCIC) to the Assistant Secretary level and the
enlistment of IP's expertise and relationships fully into the cyber
mission. Through the organizational changes outlined in the Transition
Plan, NPPD will be able to more effectively and efficiently support our
partners in the private sector, across the interagency, and in State,
local, territorial, and Tribal governments. It will elevate and focus
cyber mitigation and response operations, facilitate a holistic
approach to NPPD's risk management support, and allow the entire
organization to better leverage stakeholder relationships to support
operational activity countering physical and cyber risks. NPPD is also
committed to improving service delivery to customers by enhancing the
presence of NPPD staff in the field and better integrating field
service activities. A robust field force will directly engage with
stakeholders located throughout the country and carry out NPPD
operations at a local level.
NPPD has been engaging stakeholder groups, including partners
through the sectors, to inform them of the proposed plan and receive
their feedback. This includes briefings to the Cross-Sector Council
(Federal Senior Leadership Council; Critical Infrastructure-Cross
Sector Council; Regional Consortium Coordinating Council Chair and Vice
Chair; State, Local, Tribal, and Territorial Government Coordinating
Council Chair and Vice Chair; and the National Council of ISACs Chair
and Vice Chair); the Information Technology, Communications, and Energy
(Electricity Subsector) Sectors; the SAFECOM Executive Committee and
Emergency Response Council; the National Council of State-wide
Interoperability Coordinators; the National Security Telecommunications
Advisory Committee; the Homeland Security Advisory Committee; as well
as other sector and stakeholder groups.
Question 9. How does the proposed reorganization help build
confidence in the public and private sectors that DHS is focusing on
its cybersecurity mission?
Answer. A key outcome of the transition to elevate the stature of
the National Cybersecurity and Communications Integration Center
(NCCIC) within the organization. This will enable the Department to
focus on the technical cyber operations that are essential to increase
the operational readiness and resilience of information technology and
communications assets, systems, and networks through vulnerability
mitigation, incident response, and recovery. In addition, integrating
stakeholder capacity-building efforts within the new infrastructure
security entity will bring coordinated mission support to public and
private sectors by more effectively bringing existing relationships,
critical infrastructure expertise, and relevant data to bear on the
cyber mission. Finally, changing NPPD's name to Cyber and
Infrastructure Protection will clarify who is responsible for this
mission space.
Question 10. One of the top priorities of this committee has been
to ensure DHS and NPPD have a qualified cyber workforce to carry out
its mission. With the proposed reorganization, Infrastructure Security
would include several cybersecurity programs that would be moved out of
NPPD's cyber entity, CS&C, and merged with NPPD's physical mission. It
is hard enough to recruit good cybersecurity talent, how will the
Department be able to recruit individuals that have expertise in the
cybersecurity mission and physical mission?
Answer. Hiring technical experts with the appropriate level of
cyber expertise is a challenge for all of Government and will continue
to be so. This committee addressed this issue with the development of
legislation that passed Congress last year to enhance cyber workforce
hiring efforts. However, it is important to understand that not all of
these positions require technical cyber expertise. The concept is to
bring physical security experts and cybersecurity experts together to
achieve a holistic approach to the risk-management capacity of NPPD's
stakeholders. The stakeholder engagement programs that are currently
located within the Office of Cybersecurity and Communications and are
proposed to move to the new Infrastructure Security would retain the
staff currently running these programs. Within Infrastructure Security,
these programs would align with programs currently residing within the
Office of Infrastructure Protection also currently focus on stakeholder
engagement; combining these efforts enhances the ability of the
organization to address cyber risks.
In addition, through the transformation, NPPD is planning ways to
raise the baseline expertise of our current staff. For example, we have
been offering cybersecurity training to Protective Security Advisors to
raise their level of expertise and we plan to continue this with the
entire organization, to include training provided at the National
Computer Forensics Institute (NCFI). As a cybersecurity organization,
the entire NPPD workforce must have a basic level knowledge of
cybersecurity. One of the Transformation Plan actions is to increase
training for our current staff and ensure future staff has access to
the training necessary to carry out their positions.
Question 11. Given that cybersecurity is an emerging National
priority, why do you think it is necessary to potentially disrupt
current operations and support activities? (Possibly creating risk for
current operations.) Is NPPD and DHS's cybersecurity mission somehow
under-performing? If so, why hasn't this been mentioned before?
Answer. Our adversaries are constantly improving their
capabilities. We must do the same. The increased operational
responsibilities that have been assigned to NPPD over the last few
years reflect a growing appreciation for the important work NPPD has
been doing. NPPD's responsibilities in this mission area will continue
to grow, making greater efficiency imperative. For example, the NCCIC
has seen a tremendous increase in workload over the last few years.
From fiscal year 2012 to fiscal year 2013, there was an increase of 35%
of reported incidents. From fiscal year 2013 to fiscal year 2014, there
was a 31% increase, and preliminary data suggests that from fiscal year
2014 to fiscal year 2015, there was a 40% increase in reported
incidents. Overall, this is a 146% increase in reported incidents from
fiscal year 2012 to fiscal year 2015. The technical operations being
carried out by the NCCIC must remain the priority of NCCIC leadership,
but not at the expense of capacity-building activities that are
proposed to transfer to the new Infrastructure Security. The
transformation will ensure the organization is best suited to address
current and future challenges.
Question 12. Has NPPD attempted to formally align business process
across IP and CS&C? Have any joint or cross-cutting policies and
procedures been created? (Please provide all of the policies,
procedures, and management directives or formal management guidance
focused on achieving better integration prior to this reorganization
attempt--to include any finalized pilot reports). How much management
oversight was dedicated to aligning these offices, short of
reorganization? If these efforts failed or were insufficient, why did
they fail? Has a formal Business Impact Analysis been done? When will
this be completed?
Answer. To create efficiencies, and ensure greater agility in
mission support functions, NPPD is proposing to formally align business
processes by centralizing the strategic management of many of its
business support functions of existing subcomponents, while embedding
business support professionals with operators. This will improve
operational efficiencies by providing strategic management direction
while ensuring the effective delivery of business support functions. In
this model, NPPD will ensure high levels of customer service by
distributing staff according to the needs of the operational or mission
support element, and embedding staff to support operations directly.
The intended outcome for NPPD is an effective, efficient, integrated
business support structure for better coordination and better support
to the mission areas.
NPPD leadership has also issued management guidance in the past
specific to better integrating programs to support cyber and physical
risks to infrastructure. In 2011, then-Under Secretary Rand Beers
established the Integrated Analysis Task Force as a pilot to assess the
best approach for integrating analytic support for all of NPPD. For
example, to demonstrate the value of bringing expertise from across
NPPD to understand the potential physical consequences from a cyber
incident, Integrated Analysis Task Force collaborated with the State of
New Jersey at 4 Water and Wastewater Sector facilities to assess the
facilities' systems and identify site-specific options to mitigate
potential physical consequences that could stem from exploited cyber
vulnerabilities within those systems. Through the fiscal year 2014
budget process, Congress formally approved the establishment of the
Office of Cyber and Infrastructure Analysis to continue this work
permanently.
Another example of a temporary task force created by NPPD
leadership to integrate programs to support cyber and physical risks to
infrastructure was the Integrated Task Force, established from February
2013 to February 2014. The Integrated Task Force was established to
lead the Department's implementation of Executive Order (EO) 13636 on
Improving Critical Infrastructure Cybersecurity and Presidential Policy
Directive (PPD)-21 on Critical Infrastructure Security and Resilience.
The Integrated Task Force coordinated interagency, public- and private-
sector efforts and ensured that implementation across the homeland
security enterprise was effectively integrated and synchronized.
Both of these efforts demonstrate the effectiveness of taking an
integrated approach to NPPD's mission; however, due to limitations
related to permanently establishing task forces and assigning personnel
on long-term detail assignments, the model is unsustainable for long-
term success. Just as the success of the Integrated Analysis Task Force
led to formal integration of NPPD's analytic functions, the efforts of
the Integrated Task Force have informed NPPD's proposal to formally
integrate programs to address cyber and physical risks.
Question 13. How will NPPD perform better separating the NCCIC from
CS&C and moving other cybersecurity functions to an infrastructure
security division? What assurances can you provide that capabilities
will not be duplicated or re-created?
Answer. Elevating the NCCIC to the Assistant Secretary level will
bring focused, senior-level attention to those critical cyber
operations. And bringing cyber risk management expertise together with
physical risk management expertise will allow NPPD to bring a holistic
approach to its capacity-building efforts with the private and public
sectors. GAO has specifically called for NPPD to analyze its programs
for ``fragmentation, overlap, or unnecessary duplication.'' DHS is
proposing alignment of like functions--those that currently exist
within the Office of Cybersecurity and Communications and the Office of
Infrastructure Protection. These capacity-building operations are
different than the technical operations that exist within the current
NCCIC. Together, capacity building and technical operations ensure
private and public-sector partners can prepare for, prevent, mitigate,
and respond to cyber and physical threats to infrastructure. Through
the planning process the development of clear roles and
responsibilities will ensure NPPD capabilities are not duplicated.
Question 14. Where will DHS's responsibilities for State and local
government cybersecurity reside? Critical Infrastructure cybersecurity?
Best practice development? Will the NCCIC retain or re-create any cyber
outreach functions, or will it rely on the new organization? Where will
operational coordination and stakeholder outreach take place?
Answer. Responsibility for State and local cybersecurity, critical
infrastructure cybersecurity, and best practice development will reside
within the proposed Cyber and Infrastructure Protection organization.
Specifically, the NCCIC will continue its work with the Multi-State
Information Sharing and Analysis Center (MS-ISAC) and will continue to
conduct necessary outreach and engagement with public and private-
sector stakeholders to support its technical cyber operations.
Operational coordination will be a primary function of the proposed
Operations Coordination and Watch Center, ensuring there are
appropriate plans in place and these plans are exercised regularly.
Infrastructure Security will serve as the lead for ensuring strategic
engagement plans are developed in an integrated manner. These technical
and strategic engagement efforts will be integrated in the new
organization through the establishment of processes that will enable
the new structure to engage stakeholders in a coordinated manner. This
will include the use of technology such as a customer relationship
management tool. It is envisioned that Infrastructure Security will be
responsible for the overarching management of coordinating engagement
activities to ensure appropriate technology is leveraged, processes are
developed, and engagement activities meet stakeholder requirements.
Question 15. Your peers in the cybersecurity community seem to be
moving in a different direction: Consolidation around cyber. They are
creating cyber-focused organizations, not cyber and physical hybrids.
(CYBERCOM, FBI Cyber Division, etc.) Why are you moving to diffuse
cybersecurity functions and missions rather than consolidating?
Answer. DHS has consolidated cyber mitigation and response
operations in the NCCIC, and the Transition Plan strengthens that
consolidation by bringing into the NCCIC key cyber operational
capabilities like EINSTEIN and Continuous Diagnostics and Mitigation.
Effectively meeting the challenge to critical infrastructure posed by
cyber threats, however, also requires a risk management approach that
reflects the increasing convergence of cyber and physical. We see this
convergence in the Internet of Things, in the potential for cyber
attacks to produce physical consequences, in attacks that combine
disruption of information and communication technology and physical
destruction, and in the cyber dependence of networked security systems
like closed circuit security cameras and electronic access controls. It
is essential to avoid cyber and physical stovepipes when assessing
critical infrastructure threats, vulnerabilities, consequences, and
mitigation measures. The first indication of a major cyber attack may
come from detecting its manifestation in the physical world. And the
most cost-effective measure to address a cyber threat may be to
mitigate potential physical consequences or to create redundancies that
are not cyber dependent. By aligning voluntary partnership and
communications programs to Infrastructure Security, NPPD's cyber and
physical security capacity-building programs will be better positioned
to support public and private-sector stakeholders in the development of
risk management assessments and investments across physical and cyber.
In addition, by leveraging the entirety of the organization to address
its cybersecurity responsibilities, NPPD will enhance its effectiveness
to achieve the cyber mission.
Question 16. How many CIKR, State, and local and other partners
combine their physical security organizations and cybersecurity
organizations? Is this kind of re-organization a best practice
somewhere, or do other organizations use processes to bridge gaps
between cybersecurity and physical security? If DHS is leading the way,
do you have any evidence that anyone else is following?
Answer. Physical and cybersecurity requirements for critical
infrastructure owners and operators are inextricably linked. An attack
on an IT-based system may have impacts on physical security and vice
versa, which is why NPPD has been focused on integrating its programs
related to cyber and physical risks to infrastructure and better
understanding the link between physical and cybersecurity. For example,
in 2014 GAO released a report on Federal facility cybersecurity and
recommended that NPPD develop and implement a strategy to address cyber
risk to building and access control systems. In addition, GAO
recommended that NPPD, through the Interagency Security Committee,
revise its Design-Basis Threat report to include cyber threats to
building and access control systems (Federal Facility Cybersecurity:
DHS and GSA Should Address Cyber Risk to Building and Access Control
Systems; GAO-15-6). The proposed transformation is designed to enable
the services NPPD provides for comprehensive security of
infrastructure.
Adopting holistic enterprise risk management frameworks has been a
growing best practice in the private sector and is now being identified
as an approach Federal agencies need to take by the Office of
Management and Budget through Circular A-11.
As described in a 2013 National Security Telecommunications
Advisory Committee (NSTAC) Report to the President on Secure Government
Communications,\1\ industry has realized many advantages to creating a
centralized risk management governance model. The report notes that
``Instituting this centralized risk management governance framework
requires defining and prioritizing the functions and capabilities
relevant to the organization's objectives (risks and opportunities),
assessing them in terms of likelihood and magnitude of impact,
determining a response strategy, and monitoring progress. Industry
representatives briefing the NSTAC held that centralizing risk
governance allows an organization to more effectively manage all risks
to the business/mission (including but not limited to IT risks) and
create a strategy for managing consequences of intrusions. By
identifying and proactively addressing risks and opportunities,
business enterprises protect and create value for their stakeholders,
including owners, employees, customers, regulators, and society
overall.''\2\ The report goes on to describe how industry has
implemented this new approach. ``Industry leaders and some Government
leaders have shifted their organizational responsibilities and made
qualitative changes to how they manage enterprise risks. (Emphasis
added.) The new paradigm covers all lines of business, creating a shift
in strategic emphasis from compliance to improving how security risks
are managed. Risks can come from uncertainty in financial markets,
project failures, legal liabilities, credit risk, accidents, natural
causes, and disasters, as well as deliberate attacks by an adversary.
Once organizations expand the alignment of current threats solely from
IT to all mission functions, a holistic view of the risks can be
addressed.''\3\
---------------------------------------------------------------------------
\1\ NSTAC Report to the President on Secure Government
Communications, http://www.dhs.gov/sites/default/files/publications/
NSTAC%20Report%20to%20the%20President%20-
on%20Secure%20Government%20Communications%20%20Fina%20%20%20_1.pdf.
\2\ Id. at page 36.
\3\ Id. at page 36.
---------------------------------------------------------------------------
Question 17. How many man-hours have been committed to this
reorganization effort and how many man-hours will be required to carry
it to its conclusion? What is the time frame for finalizing the
reorganization, and are you committed to seeing it through personally?
Answer. While initial efforts for enhanced integration were started
in June 2014, NPPD assigned a team of 7 employees in July 2015 to serve
full-time on the implementation planning team. In accordance with GAO
best practices, NPPD has involved employees in the development of the
Transition Plan, with more than 100 employees participating in the
development of the Transition Plan between July and August; although
the numbers of hours committed from each employee were different. NPPD
has completed an initial phase of planning and will continue planning
efforts in the new calendar year. This will include the development of
processes and other activities that will position the organization to
implement the Transition Plan following Congressional action. The time
frame for final completion will be dependent on Congressional action as
indicated in the Transition Plan. NPPD is committed to seeing the plan
implemented.
Question 18. The argument is that in order to achieve greater Unity
of Effort, enhanced operational activities, and excellence in
acquisition program management a reorganization or transformation is
required. Why can't these goals be accomplished working within NPPD's
current structure?
Answer. NPPD's workforce endeavors every day to work more
collaboratively and efficiently across the organization. However, the
current organizational structure makes it harder to achieve Unity of
Effort by promoting stovepipes and layers. The Transition Plan is
designed instead to facilitate the kind of integration we seek, rather
than asking employees to overcome structural impediments.
Question 19. Congress recently passed a law designating the NCCIC
as the Federal civilian interface for sharing information concerning
cybersecurity risks, incidents, analysis, and warnings for Federal and
non-Federal entities, including owners and operators of critical
infrastructure information systems. Yet, you propose to create a new
organization outside of the NCCIC that would be the primary mechanism
for communicating about cybersecurity risk to a large segment of your
customers. Why re-create a new organization to conduct these activities
outside of the NCCIC?
Answer. Congress's designation of the NCCIC as a Federal civilian
interface for sharing information concerning cybersecurity risks,
incidents, analysis, and warnings for Federal and non-Federal entities,
including owners and operators of critical infrastructure information
systems, was a significant step and will remain as envisioned by this
committee. Within the NPPD structure, there are other entities
responsible for communicating about risks to critical infrastructure--
the Office of Infrastructure Protection is responsible for engaging
public and private-sector partners on risks to infrastructure,
including cyber infrastructure, and within the Office of Cybersecurity
and Communications, the Stakeholder Engagement and Critical
Infrastructure Resilience division is also responsible for engaging
public and private-sector partners on cyber risks to infrastructure,
including communications infrastructure. NPPD is proposing to align
these like activities in order to ensure a more integrated approach for
managing risk to infrastructure. These activities would be informed by
and directly complement the operational work of the NCCIC.
Question 20. GAO has DHS cybersecurity operations on its high-risk
list. How will this help directly address their concerns?
Answer. The proposed transformation will directly address the GAO
High-Risk list related to cybersecurity by enhancing NPPD's ability to
carry out its mission. NPPD is undertaking this transformation to
strengthen operations, enhance unity across the organization to address
both cyber and physical risks to infrastructure, create greater
efficiency, and improve services provided to stakeholders. Elevating
the NCCIC within the organization will enable the Department to focus
on the technical cyber operations that are essential to increase the
operational readiness and resilience of information technology and
communications assets, systems, and networks through vulnerability
mitigation, incident response, and recovery. In addition, integrating
stakeholder capacity-building efforts within a new infrastructure
security entity will bring coordinated mission support to public and
private sectors by more effectively bring existing relationships,
critical infrastructure expertise, and relevant data to bear on the
cyber mission.
Question 21. How will focusing on a reorganization and having
employees adapt to new supervisors and chains of command distract the
workforce from a real-time, 24/7 operational mission?
Answer. There will inevitably be some period of adjustment, but
there will not be significant disruption to the operational mission.
Our workforce has been a priority as we have developed this plan, and
will continue to be in the future. The primary way we have ensured
preparation for the challenges related to the workforce is by directly
involving our employees in the development of the plan and keeping them
informed throughout the process. We have brought in change management
support to help us ensure that as we move forward in this process; and
we are appropriately communicating and engaging with our employees.
All of these actions are best practices as defined by GAO in their
report ``Implementation Steps to Assist Mergers and Organizational
Transformations.'' Making these changes will offer our employees new
opportunities and demonstrate the importance of their work. It is
recognized that we must be diligent in our commitment to addressing
challenges as we continue forward in this process.
Question 22. The testimony you provided noted that you were looking
to develop career path options for regional and headquarters-based
employees. What are the current options? Why is reorganization
necessary to offer these options?
Answer. There is not currently a well-defined career path for NPPD
employees, especially in the field where there are limited positions.
Placing more positions at different grade levels in the field would
allow for career path options, which would aid in employee retention
and job satisfaction. In addition, the centralization of business
support functions, specifically human resources, will allow for the
development of cross-component strategies for career paths and
development opportunities for employees. Placing more positions in the
field at various grade levels and centralizing business support
functions are key aspects of the overall Transition Plan.
Question 23. In your testimony you noted, ``Infrastructure
Security, will focus on activities to protect the Nation's
infrastructure from cyber and physical risks.'' If one of the goals of
Infrastructure Security is to look at the cyber and physical risk to
critical infrastructure, why has the Office of Cybersecurity and
Infrastructure Analysis or OCIA not moved into Infrastructure Security?
Isn't that the mission of OCIA?
Answer. The Office of Cyber and Infrastructure Analysis (OCIA)
provides mission support across NPPD, informing decision makers on
potential impacts to critical infrastructure from all-hazards through
comprehensive consequence analysis during both steady-state and crisis
action. The establishment of OCIA was the first step in formally
integrating NPPD's programs and OCIA now serves as an integrated
analysis function for the organization. OCIA will continue in the new
structure to provide infrastructure consequence analysis, decision
support, and modeling capabilities in support of the NCCIC,
Infrastructure Security, and the Federal Protective Service.
Question 24. When the proposed reorganization first came to light,
the general thought was that NPPD was seeking its own Acquisition
authority to build on its work through Network Security Deployment of
programs like EINSTEIN and Continuous Diagnostics and Mitigation.
However, from the briefing you provided recently this goal is not as
clear. What is your goal or plan for acquisitions within NPPD? What is
the new proposed function, Acquisition Program Management? What does it
mean for the directorate? Why move functions like life-cycle logistics
and the role of contracting office representative away from the
organizations and programs that utilize the programs and tools that
result from acquisition programs?
Answer. NPPD is not seeking Head of Contracting Activity (HCA)
Authority, which currently resides within the DHS Management
Directorate.
The Transition Plan envisions the creation of an Acquisition
Program Management function to oversee the planning, implementation,
and management of NPPD acquisition programs. Similar to other DHS
components, the Acquisition Program Management function will be led by
an acquisition executive with the knowledge and experience to oversee
such programs. The Director of Acquisition Program Management will be
supported by a cadre of acquisition professionals (i.e., systems
engineers, cost estimators, life-cycle logisticians, and other subject-
matter experts) to help support and oversee acquisition programs.
Acquisition Programs will be established and staffed within the
particular function that is being supported by the acquisition program.
For example, the National Cybersecurity Protection System (NCPS), more
commonly known as EINSTEIN, would have dedicated staff within the NCCIC
and be supported by the Acquisition Program Management function to
ensure the acquisition is properly managed. Acquisition Programs
(depending on their level/dollar value and complexity) will fall under
the purview of a Portfolio Manager who reports to the operational
entity, and is staffed by one or more program managers and supporting
staff including Contracting Officer's Representatives and other
subject-matter experts needed to adequately staff the program. The
Director of Acquisition Program Management will provide input into the
performance evaluation of the Portfolio Manager. This proposed
structure is based on best practices currently in use for large-scale
acquisitions and is consistent with structure(s) recommended by the
Management Directorate.
Question 25. The Office of Emergency Communications (OEC) has
extensive experience working with State and local first responders to
enhance communications interoperability. What outreach have you done
with State and local stakeholders on the NPPD reorganization proposal
and what it specifically means for OEC?
Answer. NPPD has briefed stakeholders of the Office of Emergency
Communications (OEC) on the transition plan, including members of the
SAFECOM Executive Committee and Emergency Response Council and the
National Council of State-wide Interoperability Coordinators.
Question 26. How will the movement of OEC into an Infrastructure
Security division enhance its operations or at least continue its level
of engagement with State and local first responders?
Answer. OEC carries out a critical part of NPPD's mission by
advancing interoperable and National security/emergency preparedness
communications by building the capacity of first responders through
training, technical assistance, and development of governance
structures across the country. Placing OEC within an organization that
is focused on these types of capacity-building operations will enable
OEC to continue the excellent work it does every day as well as expand
its reach to new stakeholders through Infrastructure Security's sector
relationships, such as the Emergency Services Sector, and the
integrated field forces that will promote the wide range of NPPD
programs and services.
Question 27. As DHS and GSA looks to implement Phase 2 and Phase 3
of the Continuous Diagnostic & Mitigation (CDM) program, is secure
content management or data encryption at the document level an area of
focus? What is CDM's time line for implementing these types of secure
content management solutions for Federal agencies as a part of CDM?
Answer. Yes. Secure content management and data encryption are
associated with the CDM Phase 3 capability. Under the Boundary
Protection technical requirements currently in draft, secure content
management is addressed by in-coming inspection of web, email, and
other traffic. Data protection is being addressed through Digital
Rights Management Capabilities. The CDM program is a dynamic approach
to fortifying the cybersecurity of Government networks and systems. CDM
provides Federal departments and agencies with capabilities and tools
that identify cybersecurity risks on an on-going basis, prioritize
these risks based upon potential impacts, and enable cybersecurity
personnel to mitigate the most significant problems first.
Task order planning to provide the Phase 3 capabilities is
underway. We are on schedule to release the draft technical
requirements to the Continuous Monitoring as a Service (CMaaS) Blanket
Purchase Agreement holders in the second quarter of fiscal year 2016.
That will be followed by additional technical requirements for the
remainder of Phase 3 capabilities (i.e., Incident Management and
Security Lifecycle Management) in the third quarter of fiscal year
2016. We expect solicitations to be released by fiscal year 2017.
We will continue to update the committee as appropriate.
Questions From Honorable Scott Perry for Suzanne E. Spaulding
Question 1. The testimony you provided noted that the proposed
reorganization will increase FPS's focus on protecting cybersecurity
aspects of Federal facilities in coordination with the NCCIC. Is
anything like this happening now? How will the reorganization change
current behavior?
Answer. In 2013, NPPD carried out a cross-NPPD assessment of a
Federal facility that examined the cybersecurity of the facility. As a
result, over the last few years NPPD has directed more attention to
ensuring Federal facilities are appropriately considering cyber risks.
GAO released a report in December 2014 that recommended NPPD develop
and implement a strategy to address cyber risk to building and access
control systems. NPPD is currently finalizing that strategy. The
reorganization would support this strategy by appropriately
prioritizing resources to ensure the strategy is effectively
implemented.
Question 2. How do you view the role of the Federal Protective
Service (FPS) relative to NPPD? How will this reorganization affect
that organization? How will FPS be integrated into the directorate? How
do you view the role of FPS in protecting physical infrastructure? How
do you view FPS's role in terms of physical-cyber alignment?
Answer. The Federal Protective Service (FPS) carries out NPPD's
mission by managing risk and ensuring continuity for one of the most
crucial elements of National critical infrastructure--the Nation's
Federal facilities. A key aspect of their work is assessing the
security of Federal facilities and recommending mitigation measures to
the Facility Security Committees. The transformation will provide
mechanisms and structure to better leverage this data, expertise, and
activity across NPPD. FPS will better integrate its field operations
with field forces throughout the organization to enable comprehensive
security and resilience for NPPD stakeholders, as well as co-locate
incident management support with NPPD Watch functions to gain
efficiencies and improve situational awareness. Cybersecurity of
Federal facilities will continue to expand as an area requiring
attention as they adopt the use of more technology for physical
security and other purposes. Through the transformation and integrated
operations, FPS will have greater access to cybersecurity support to
enable the protection of Federal facilities from cyber risks.
Questions From Ranking Member Bennie G. Thompson for Suzanne E.
Spaulding
Question 1. You have said that the reorganization of NPPD is
intended to result in integrated situational awareness and operational
coordination. In August, I wrote to you asking to explain the
limitations of the current operational structure; however, you failed
to give specific examples in your response. Once again, I ask, what are
the limitations of the current organizational structure that can only
be addressed through reorganization?
Answer. NPPD's current organizational structure evolved over
several years. It consists of 5 subcomponents as well as the Office of
the Under Secretary which primarily provides management services. The
current organizational structure is not optimized to ensure that we are
fully leveraging our resources, expertise, relationships, and data
across all of NPPD. Nor does it provide the level of agility that is
required to achieve our mission against rapidly evolving threats and a
dynamic set of adversaries.
To date, we've made some progress toward achieving this necessary
integration. In 2014, NPPD established the Office of Cyber and
Infrastructure Analysis to serve as an integrated analysis function for
the organization. We have seen the benefit of having an integrated
function and we are now seeking to formalize additional integrated
functions, such as the proposed Operations Coordination and Watch
function. The Operations Coordination and Watch function would pull
together information received from our staff, as well as stakeholders,
and ensure we develop a comprehensive picture of the state of
infrastructure across all sectors. We currently develop situational
awareness reports for various stakeholder groups, but because
situational awareness is developed within the subcomponents, we do not
always have an integrated picture of infrastructure.
In addition, the Operations Coordination and Watch function will
also provide essential operations coordination to ensure that the
operations we carry out on an everyday basis, as well as operations
during incidents, are well-coordinated and achieve mission objectives.
For example, in support of the pilot taking place in Region IV, the
joint operations coordination function developed a cross-NPPD hurricane
response plan. The team has been able to use that plan to prepare for
and respond to hurricanes, storms, and even the recent flooding in
South Carolina. Without the integrated operational planning function
being piloted, we would not have been as successful in carrying out our
mission.
Question 2. In May 2013, NPPD issued a strategic plan, which was
intended to guide the directorate's activities for the next 5 years.
Today, we are considering a wide-scale reorganization of the component.
Before we consider this reorganization it would be good to hear a
little about any past or current efforts at ``leveraging synergies'''
within NPPD to get subcomponents to work ``in concert across
subcomponent.'' Please share with the committee what has been done
since this strategic plan and if any of the results are informing the
reorganization of the component.
Answer. Integrating NPPD operations and having the subcomponents
work better together, has been a priority for several years and is
reflected in the strategic plan. In June 2014, in an effort to identify
ways to better integrate program across NPPD, the Mission Integration
Cell was established. Over the next 6 months, members of the Mission
Integration Cell facilitated working groups comprised of employees from
across the organization to brainstorm ideas for better integrating our
operations and provided recommendations to me. As a result of these
recommendations, we have implemented several interim solutions and used
the recommendations as the basis for the proposed transformation.
For example, one of the recommendations of the working group was to
establish a pilot to assess whether integrated field operations would
improve our ability to carry out our mission. The pilot includes staff
currently based in the region, as well as staff based in the NCR, who
have been placed in the region on a temporary basis. By the end of the
pilot, we hope to have a better sense of what resources are necessary
in the field to ensure the services we deliver to our stakeholders
(technical assistance, training, assessments, etc.) are enabling secure
and resilient infrastructure. The pilot will further inform our
proposal for reorganization.
Question 3. There are over 3,500 employees that could potentially
be impacted by a reorganization at NPPD. To what degree have you
planned for the inevitable challenges, particularly personnel
challenges, associated with major organizational reorganizations?
Answer. Our workforce has been a priority as we have developed this
plan and will continue to be in the future. We are providing regular
communications along with engaging employees in the transition work
groups from across a broad spectrum of the organization. This effort
has been driven by employees, going back to the Mission Integration
Cell working groups and the recommendations that were presented from
our employees as a part of that initial effort. To develop the
Transition Plan, we established 5 working groups of more than 100
staff. Their ideas shaped the proposal we are discussing today. We've
also offered a forum for employees to provide feedback and ask
questions, through town halls as well as emails and newsletters.
In addition, we brought in change management support to help ensure
that, as we move forward in this process, we are addressing the
challenges associated with the transformation and appropriately
communicating and engaging with our employees. All of these actions are
best practices as defined by GAO in its report ``Implementation Steps
to Assist Mergers and Organizational Transformations.'' We expect that
the proposed transformation will offer our employees new opportunities
and demonstrate the importance of their work. However, we know that we
must be diligent in our commitment to addressing challenges as we
continue this process.
Question 4. According to your NPPD Transformation Plan, there is a
regional integration pilot field office located in Atlanta, Georgia.
Will you please describe the functions of this field office? How are
you using the outcomes from this ``pilot'' to inform your
reorganization plans?
Answer. In July 2015, NPPD established a Regional Integration Pilot
to assess the benefits of integrated field forces and provide
recommendations for aligning NPPD's field forces into a more cohesive
organization. The office includes personnel who were already assigned
to Atlanta as well as staff who normally carry out similar job duties
based in the National Capital Region (NCR). NPPD is also testing a few
new positions to see if those positions are useful to integrated field
operations. Together, these professionals are carrying out the various
programs and services that NPPD currently provides.
To achieve the priorities of both enhancing operations and
achieving a Unity of Effort across programs, NPPD will evaluate the
results of the pilot project to inform any plan to shift resources and
personnel from the NCR and establish regional headquarters in the 10
Federal regions. The results of the pilot will assist NPPD in
developing a regionally-focused organizational framework. This will
enable NPPD to tailor the delivery of programs that reflect regional
needs and evolve as the capabilities of each region to mature and
expand. This framework will better position NPPD to integrate programs
at headquarters and in the field and move towards a unified, field-
based service delivery model; integrate current field forces and field
business support operations; expand capabilities of regional assets in
order to provide enhanced and regionally relevant support to regional
and local stakeholders; and develop career path options for regional
and headquarter-based employees.
Question 5. Under Secretary Spaulding, as you know, OEC is the home
of SAFECOM and performs important outreach to first-responder
organizations. As the NPPD reorganization proposal was developed, how
do you engage with first responder groups?
Answer. NPPD has briefed stakeholders of the Office of Emergency
Communications (OEC) on the Transition Plan, including members of the
SAFECOM Executive Committee and Emergency Response Council and the
National Council of State-wide Interoperability Coordinators. As we
move forward with planning efforts, feedback from these stakeholders
will be critical to the continued success of OEC and NPPD as whole.
Question 6. Under Secretary Spaulding, historically, Members of
this committee have raised concerns that the Office of Emergency
Communications was overshadowed by the cybersecurity mission at CS&C.
How will moving OEC and NPPD's other emergency communications
activities to Infrastructure Protection address the concerns this
committee has raised in the past, and result in improved emphasis on
developing robust National emergency communications capabilities?
Answer. NPPD leadership appreciates the committee's concerns about
the future of OEC and has taken this feedback into account as we have
developed the Transition Plan. OEC carries out a critical part of
NPPD's mission in advancing interoperable and National security/
emergency preparedness communications, building the capacity of first
responders through training/technical assistance, and development of
governance structures across the Nation. Integrating OEC with the
Infrastructure Security organization that is focused on these types of
capacity-building operations will enable OEC to more readily
collaborate with colleagues and expand its reach to new stakeholders
through Infrastructure Security's sector relationships, such as the
Emergency Services Sector, and the integrated field forces who will
promote the wide range of NPPD programs and services.
Questions From Chairman John Ratcliffe for Phyllis A. Schneck
Question 1. According to the proposed new organization chart the
NCCIC, FNR, and NSD activities of CS&C would be separated out and the
Office of Emergency Communications and stakeholder engagement would be
moved into the new infrastructure security division. There is concern
that this separates and potentially limits the directorate's current
cybersecurity roles and missions. There is also concern that this will
change the way the overarching cybersecurity strategy and policy
decisions are made within NPPD and DHS. In order to accomplish the
Department's cybersecurity mission, and strategy (especially as
required in the bill passed by the House on October 6) there needs to
be a central function that is constantly addressing needs and evolving
strategy and policy. Where will those essential strategy, mission, and
vision roles take place under the proposed structure?
Answer. The proposed new structure for NPPD would include a
centralized policy function to ensure that infrastructure security and
resilience strategies, plans, and policies are integrated across NPPD's
entire mission space. This centralized function will be a critical link
between policymaking and operations, and the working group is currently
developing an implementation plan for these functions that ensures
essential connectivity with the operational entities. A reorganized
NPPD will ensure policy development is more connected to NPPD
leadership priorities and more coordinated across the organization,
which will benefit stakeholders with whom we engage on policy matters.
The new structure will aim to consolidate and potentially elevate
policy functions, align and coordinate activity across all NPPD
components, and maintain links between policy development and
operational activity.
Question 2. Currently, CS&C is responsible for the Office of
Emergency Communications, the NCCIC, Stakeholder Engagement and Cyber
Infrastructure Resilience, Federal Network Resilience and Network
Security Deployment. A number of these offices and related roles and
responsibilities would be moved in the proposed reorganization. The
proposal seems to focus NPPD's cybersecurity work more fully on the
cybersecurity of our Nation's critical infrastructure. However, based
on the comprehensive nature of CS&C, is this new direction limiting to
CS&C's work with public sector and the cybersecurity mission more
broadly?
Answer. No. The Transition Plan further consolidates the public-
sector cyber operational activity in an elevated NCCIC, which will
strengthen the cyber mission overall and particularly with regard to
.gov. It will provide continued, and where appropriate, enhanced
engagement with public-sector stakeholders, especially in addressing
cyber risks. This includes work with State and local partners through
the Multi-State Information Sharing and Analysis Center (MS-ISAC),
continued engagement and capacity-building operations with State and
local officials such as chief information security officers and chief
information officers, as well as continued cyber resilience assessments
for State and local officials. In addition, NPPD will be better-
positioned to execute our statutory authorities related to securing the
.gov and working with the interagency on areas like Federal Information
Security Management Act (FISMA) compliance.
Question 3. The Office of Emergency Communications (OEC) is
currently authorized in law. Based on the latest information provided,
under this proposal it would be shifted to the new infrastructure
security division. How do you see the role and functions of OEC
changing in this reorganization? Why does the office need to move? Is
this move possible under current law?
Answer. OEC carries out a critical part of NPPD's mission by
advancing interoperable and National security/emergency preparedness
communications by building the capacity of first responders through
training, technical assistance, and development of governance
structures across the country. The role of OEC is not envisioned to
change within the new structure. Integrating OEC with the
Infrastructure Security organization that is focused on these types of
capacity-building operations will enable OEC to more readily
collaborate with colleagues and expand its reach to new stakeholders
through Infrastructure Security's sector relationships, such as the
Emergency Services Sector, and the integrated field forces who will
promote the wide range of NPPD programs and services.
As the Under Secretary stated in response to a question from Rep.
Donovan during the hearing, moving OEC is one example where NPPD would
require Congressional action to support its proposed reorganization.
The Homeland Security Act, as amended, requires the Director of the
Office of Emergency Communications to report to the Assistant Secretary
for Cybersecurity and Communications.
Question 4. Understanding DHS has a significant volume of sensitive
and personally-identifiable information (PII) which has been exposed
over the last few years, does the agency have plans to fund and deploy
enterprise-wide digital rights management solutions across the
Department to protect against future data leaks?
Answer. Security of data and protecting sensitive and PII will
continue to be a priority for the Department as well as for Cyber and
Infrastructure Protection. The Transition Plan envisions enhanced
privacy and IT security, including carrying out new requirements under
the Federal Information Technology Acquisition Reform Act (FITARA). The
Department will continue to explore ways to manage data and protect
against data leaks.
Questions From Chairman John Ratcliffe for Ronald J. Clark
Question 1. Protective Security Advisors (PSA's) have become the
primary interface for private-sector stakeholders. The proposal would
also create cybersecurity advisors. While the distinction does seem
useful, isn't this inconsistent with your overall plan to merge
physical and cyber skills? If you need distinct and separate security
advisors, isn't that an indication that these are two distinct and
separate missions?
Answer. NPPD established the Cyber Security Advisor program several
years ago to complement the PSAs, who work directly with our public and
private-sector partners. Cyber Security Advisors and PSAs work together
to conduct assessments and inform public and private-sector owners and
operators of existing programs and resources available to protect
infrastructure in support of NPPD's mission. The proposed
transformation would enable greater effectiveness by providing
institutional structures, particularly in the field, to enable these
key collaborative activities. We ``merge'' these skills by creating
institutional and operational mechanisms that make it easier for cyber
experts and physical security experts to work closely together, learn
from each other, and better support our stakeholders with the kind of
holistic assistance that reflects the world they face; a world in which
the lines between cyber and physical risks are increasingly blurred.
Question 2. Last Congress, the committee made significant
improvements to the Chemical Facility Anti-Terrorism Standards or CFATS
program within the Infrastructure Security Compliance Division (ISCD).
ISCD has made significant improvements in clearing the backlog of
facility inspections and certifications. The committee is committed to
seeing this success continue, how will this reorganization impact ISCD
and the CFATS program?
Answer. NPPD appreciates the committee's support of the Chemical
Facility Anti-Terrorism Standards (CFATS) program and is committed to
the program's continued success. The CFATS program is an excellent
example of how infrastructure owners and operators must address both
cyber and physical risks to infrastructure, as one of the Risk-Based
Performance Standards requires facilities to assess their cybersecurity
as part of the CFATS regulatory requirements. Under the Transition
Plan, the CFATS program would reside within the Infrastructure Security
entity to align with other similar capacity-building operations, but
would retain the integrity of the regulatory program. Chemical Security
Inspectors will remain an important part of NPPD's field forces and
will continue to interact with Protective Security Advisors and Cyber
Security Advisors.
Questions From Ranking Member Bennie G. Thompson for Chris P. Currie
Question 1. Mr. Currie, you testified that successful Government
reorganizations balanced both the Executive and Legislative roles. You
also testified that parties with vested interests should be involved in
discussions about reorganizing. I agree. The party with one of the most
vested interests with the reorganization of NPPD is its workforce. How
important is it for NPPD to have a workforce plan that minimalizes
negative impacts on morale? What should a Government successful
workforce plan look like?
Answer. It is vitally important for NPPD to have a workforce plan
that minimizes any negative impacts on morale that may arise due to
reorganization. Employee morale at NPPD is consistently low relative to
other DHS components and to other Federal agency subcomponents.
Therefore, it is imperative that NPPD consider how the planned
reorganization could potentially enhance and not further lower employee
morale, as an engaged and motivated workforce will be crucial
accomplishing NPPD's missions.
In our previous work identifying key factors for implementing
successful organizational change based on the experiences of past large
and small organizational transformations, we found that involving
employees to obtain their ideas and gain their ownership of a
reorganization was crucial. Specifically, it is important to seek out
and monitor employee attitudes, as well as to take appropriate follow-
up actions. Especially at the outset of the transformation, obtaining
employees' attitudes through pulse surveys, focus groups, or
confidential hotlines can serve as a quick check of how employees are
feeling about the large-scale changes that are occurring and the new
organization as a whole. While monitoring employee attitudes provides
good information, it is important for employees to see that top
leadership not only listens to their concerns, but also takes action
and makes appropriate adjustments to the transformation in a visible
way. By not taking appropriate follow-up action, negative attitudes may
translate into actions, such as employee departures, among other
things, that could have a detrimental effect on the transformation.
Beyond these concerns specific to organizational change, we
identified in past work on strategic workforce planning 5 key
principles that lead to more effective workplans. Inclusion of these
principles in NPPD's workforce planning will be important for ensuring
success.
Involve top management, employees, and other stakeholders in
developing, communicating, and implementing the strategic
workforce plan.
Determine the critical skills and competencies that will be
needed to achieve current and future programmatic results.
Develop strategies that are tailored to address gaps in
number, deployment, and alignment of human capital approaches
for enabling and sustaining the contributions of all critical
skills and competencies.
Build the capability needed to address administrative,
educational, and other requirements important to support
workforce planning strategies.
Monitor and evaluate the agency's progress toward its human
capital goals and the contribution that human capital results
have made toward achieving programmatic results
Question 2. As you know, Secretary Johnson's Unity of Effort
initiative has not been principally focused on driving reorganizations,
but rather putting in place structures to improve performance across
the Department and foster greater collaboration and coordination. Based
on your observations of Federal reorganizing, how can a reorganization
of NPPD contribute to the Unity of Effort at the Department?
Answer. DHS's Unity of Effort initiative calls for better
traceability between DHS's strategic objectives and mission execution,
among other things, in order to improve both Departmental cohesiveness
and operational effectiveness. In testimony before this committee,
Under Secretary Spaulding stated that the proposed reorganization would
include 3 interconnected operational directorates that will allow for
focused operations with the necessary coordination to ensure that
operations mitigate risk in a holistic, comprehensive manner. To the
extent that this reorganization approach would create better alignment
between DHS's overall strategic objectives and mission execution, it
would contribute to DHS's Unity of Effort initiative.
Our past work identifying lessons learned from private and public-
sector transformations found that a key factor to successfully
implementing large-scale change is to focus on a key set of principles
and priorities at the outset of the transformation and to embed these
core values into every aspect of the organization to reinforce the new
culture. In this case, DHS's Unity of Effort may be supported by NPPD's
proposed reorganization if Unity of Effort principles were made
explicit in the initial stages of the process and reinforced throughout
NPPD's new proposed directorates. As we note in our work on
organizational transformations, key principles--such as DHS's Unity of
Effort--can serve as an anchor that remains valid and enduring while
organizations, personnel, programs, and processes may change.
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