[Congressional Record (Bound Edition), Volume 154 (2008), Part 1]
[Senate]
[Pages 1194-1196]
[From the U.S. Government Publishing Office, www.gpo.gov]




                         SUBMITTED RESOLUTIONS

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 SENATE RESOLUTION 437--ESTABLISHING A SPECIAL COMMITTEE OF THE SENATE 
 TO INVESTIGATE THE AWARDING AND CARRYING OUT OF CONTRACTS TO CONDUCT 
  ACTIVITIES IN AFGHANISTAN AND IRAQ AND TO FIGHT THE WAR ON TERRORISM

  Mr. DORGAN submitted the following resolution; which was referred to 
the Committee on Rules and Administration:

                              S. Res. 437

       Whereas the wars in Iraq and Afghanistan have exerted very 
     large demands on the Treasury of the United States and 
     required tremendous sacrifice by the members of the Armed 
     Forces of the United States;
       Whereas Congress has a constitutional responsibility to 
     ensure comprehensive oversight of the expenditure of United 
     States Government funds;
       Whereas waste and corporate abuse of United States 
     Government resources are particularly unacceptable and 
     reprehensible during times of war;
       Whereas the magnitude of the funds involved in the 
     reconstruction of Afghanistan and Iraq and the war on 
     terrorism, together with the speed with which these funds 
     have been committed, presents a challenge to the effective 
     performance of the traditional oversight function of Congress 
     and the auditing functions of the executive branch;
       Whereas the Senate Special Committee to Investigate the 
     National Defense Program, popularly know as the Truman 
     Committee, which was established during World War II, offers 
     a constructive precedent for bipartisan oversight of wartime 
     contracting that can also be extended to wartime and postwar 
     reconstruction activities;
       Whereas the Truman Committee is credited with an extremely 
     successful investigative effort, performance of a significant 
     public education role, and achievement of fiscal savings 
     measured in the billions of dollars; and
       Whereas the public has a right to expect that taxpayer 
     resources will be carefully disbursed and honestly spent: 
     Now, therefore, be it
       Resolved,

     SECTION 1. SPECIAL COMMITTEE ON WAR AND RECONSTRUCTION 
                   CONTRACTING.

       There is established a special committee of the Senate to 
     be known as the Special Committee on War and Reconstruction 
     Contracting (hereafter in this resolution referred to as the 
     ``Special Committee'').

     SEC. 2. PURPOSE AND DUTIES.

       (a) Purpose.--The purpose of the Special Committee is to 
     investigate the awarding and performance of contracts to 
     conduct military, security, and reconstruction activities in 
     Afghanistan and Iraq and to support the prosecution of the 
     war on terrorism.
       (b) Duties.--The Special Committee shall examine the 
     contracting actions described in subsection (a) and report on 
     such actions, in accordance with this section, regarding--
       (1) bidding, contracting, accounting, and auditing 
     standards for Federal Government contracts;
       (2) methods of contracting, including sole-source contracts 
     and limited competition or noncompetitive contracts;
       (3) subcontracting under large, comprehensive contracts;
       (4) oversight procedures;
       (5) consequences of cost-plus and fixed price contracting;
       (6) allegations of wasteful and fraudulent practices;
       (7) accountability of contractors and Government officials 
     involved in procurement and contracting;
       (8) penalties for violations of law and abuses in the 
     awarding and performance of Government contracts; and
       (9) lessons learned from the contracting process used in 
     Iraq and Afghanistan and in connection with the war on 
     terrorism with respect to the structure, coordination, 
     management policies, and procedures of the Federal 
     Government.
       (c) Investigation of Wasteful and Fraudulent Practices.--
     The investigation by the Special Committee of allegations of 
     wasteful and fraudulent practices under subsection (b)(6) 
     shall include investigation of allegations regarding any 
     contract or spending entered into, supervised by, or 
     otherwise involving the Coalition Provisional Authority, 
     regardless of whether or not such contract or spending 
     involved appropriated funds of the United States.
       (d) Evidence Considered.--In carrying out its duties, the 
     Special Committee shall ascertain and evaluate the evidence 
     developed by all relevant governmental agencies regarding the 
     facts and circumstances relevant to contracts described in 
     subsection (a) and any contract or spending covered by 
     subsection (c).

     SEC. 3. COMPOSITION OF SPECIAL COMMITTEE.

       (a) Membership.--
       (1) In general.--The Special Committee shall consist of 7 
     members of the Senate of whom--

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       (A) 4 members shall be appointed by the President pro 
     tempore of the Senate, in consultation with the majority 
     leader of the Senate; and
       (B) 3 members shall be appointed by the minority leader of 
     the Senate.
       (2) Date.--The appointments of the members of the Special 
     Committee shall be made not later than 90 days after the date 
     of the enactment of this Act.
       (b) Vacancies.--Any vacancy in the Special Committee shall 
     not affect its powers, but shall be filled in the same manner 
     as the original appointment.
       (c) Service.--Service of a Senator as a member, chairman, 
     or ranking member of the Special Committee shall not be taken 
     into account for the purposes of paragraph (4) of rule XXV of 
     the Standing Rules of the Senate.
       (d) Chairman and Ranking Member.--The chairman of the 
     Special Committee shall be designated by the majority leader 
     of the Senate, and the ranking member of the Special 
     Committee shall be designated by the minority leader of the 
     Senate.
       (e) Quorum.--
       (1) Reports and recommendations.--A majority of the members 
     of the Special Committee shall constitute a quorum for the 
     purpose of reporting a matter or recommendation to the 
     Senate.
       (2) Testimony.--One member of the Special Committee shall 
     constitute a quorum for the purpose of taking testimony.
       (3) Other business.--A majority of the members of the 
     Special Committee, or \1/3\ of the members of the Special 
     Committee if at least one member of the minority party is 
     present, shall constitute a quorum for the purpose of 
     conducting any other business of the Special Committee.

     SEC. 4. RULES AND PROCEDURES.

       (a) Governance Under Standing Rules of Senate.--Except as 
     otherwise specifically provided in this resolution, the 
     investigation, study, and hearings conducted by the Special 
     Committee shall be governed by the Standing Rules of the 
     Senate.
       (b) Additional Rules and Procedures.--The Special Committee 
     may adopt additional rules or procedures if the chairman and 
     ranking member agree that such additional rules or procedures 
     are necessary to enable the Special Committee to conduct the 
     investigation, study, and hearings authorized by this 
     resolution. Any such additional rules and procedures--
       (1) shall not be inconsistent with this resolution or the 
     Standing Rules of the Senate; and
       (2) shall become effective upon publication in the 
     Congressional Record.

     SEC. 5. AUTHORITY OF SPECIAL COMMITTEE.

       (a) In General.--The Special Committee may exercise all of 
     the powers and responsibilities of a committee under rule 
     XXVI of the Standing Rules of the Senate.
       (b) Hearings.--The Special Committee or, at its direction, 
     any subcommittee or member of the Special Committee, may, for 
     the purpose of carrying out this resolution--
       (1) hold such hearings, sit and act at such times and 
     places, take such testimony, receive such evidence, and 
     administer such oaths as the Special Committee or such 
     subcommittee or member considers advisable; and
       (2) require, by subpoena or otherwise, the attendance and 
     testimony of such witnesses and the production of such books, 
     records, correspondence, memoranda, papers, documents, tapes, 
     and materials as the Special Committee considers advisable.
       (c) Issuance and Enforcement of Subpoenas.--
       (1) Issuance.--Subpoenas issued under subsection (b) shall 
     bear the signature of the Chairman of the Special Committee 
     and shall be served by any person or class of persons 
     designated by the Chairman for that purpose.
       (2) Enforcement.--In the case of contumacy or failure to 
     obey a subpoena issued under subsection (a), the United 
     States district court for the judicial district in which the 
     subpoenaed person resides, is served, or may be found may 
     issue an order requiring such person to appear at any 
     designated place to testify or to produce documentary or 
     other evidence. Any failure to obey the order of the court 
     may be punished by the court as a contempt of that court.
       (d) Meetings.--The Special Committee may sit and act at any 
     time or place during sessions, recesses, and adjournment 
     periods of the Senate.

     SEC. 6. REPORTS.

       (a) Initial Report.--The Special Committee shall submit to 
     the Senate a report on the investigation conducted pursuant 
     to section 2 not later than 270 days after the appointment of 
     the Special Committee members.
       (b) Updated Report.--The Special Committee shall submit an 
     updated report on such investigation not later than 180 days 
     after the submittal of the report under subsection (a).
       (c) Additional Reports.--The Special Committee may submit 
     any additional report or reports that the Special Committee 
     considers appropriate.
       (d) Findings and Recommendations.--The reports under this 
     section shall include findings and recommendations of the 
     Special Committee regarding the matters considered under 
     section 2.
       (e) Disposition of Reports.--Any report made by the Special 
     Committee when the Senate is not in session shall be 
     submitted to the Clerk of the Senate. Any report made by the 
     Special Committee shall be referred to the committee or 
     committees that have jurisdiction over the subject matter of 
     the report.

     SEC. 7. ADMINISTRATIVE PROVISIONS.

       (a) Staff.--
       (1) In general.--The Special Committee may employ in 
     accordance with paragraph (2) a staff composed of such 
     clerical, investigatory, legal, technical, and other 
     personnel as the Special Committee, or the chairman or the 
     ranking member, considers necessary or appropriate.
       (2) Appointment of staff.--
       (A) In general.--The Special Committee shall appoint a 
     staff for the majority, a staff for the minority, and a 
     nondesignated staff.
       (B) Majority staff.--The majority staff shall be appointed, 
     and may be removed, by the chairman and shall work under the 
     general supervision and direction of the chairman.
       (C) Minority staff.--The minority staff shall be appointed, 
     and may be removed, by the ranking member of the Special 
     Committee, and shall work under the general supervision and 
     direction of such member.
       (D) Nondesignated staff.--Nondesignated staff shall be 
     appointed, and may be removed, jointly by the chairman and 
     the ranking member, and shall work under the joint general 
     supervision and direction of the chairman and ranking member.
       (b) Compensation.--
       (1) Majority staff.--The chairman shall fix the 
     compensation of all personnel of the majority staff of the 
     Special Committee.
       (2) Minority staff.--The ranking member shall fix the 
     compensation of all personnel of the minority staff of the 
     Special Committee.
       (3) Nondesignated staff.--The chairman and ranking member 
     shall jointly fix the compensation of all nondesignated staff 
     of the Special Committee, within the budget approved for such 
     purposes for the Special Committee.
       (c) Reimbursement of Expenses.--The Special Committee may 
     reimburse the members of its staff for travel, subsistence, 
     and other necessary expenses incurred by such staff members 
     in the performance of their functions for the Special 
     Committee.
       (d) Payment of Expenses.--There shall be paid out of the 
     applicable accounts of the Senate such sums as may be 
     necessary for the expenses of the Special Committee. Such 
     payments shall be made on vouchers signed by the chairman of 
     the Special Committee and approved in the manner directed by 
     the Committee on Rules and Administration of the Senate. 
     Amounts made available under this subsection shall be 
     expended in accordance with regulations prescribed by the 
     Committee on Rules and Administration of the Senate.

     SEC. 8. EFFECTIVE DATE; TERMINATION.

       (a) Effective Date.--This resolution shall take effect on 
     November 5, 2008.
       (b) Termination.--The Special Committee shall terminate two 
     years after the date of the adoption of this resolution.

     SEC. 9. SENSE OF SENATE ON CERTAIN CLAIMS REGARDING THE 
                   COALITION PROVISIONAL AUTHORITY.

       It is the sense of the Senate that any claim of fraud, 
     waste, or abuse under the False Claims Act that involves any 
     contract or spending by the Coalition Provisional Authority 
     should be considered a claim against the United States 
     Government.
  Mr. DORGAN. Mr. President, I am going to be introducing legislation--
I have previously introduced this--that deals with the construction in 
the Congress of what is called a Truman Committee.
  In fact, President Truman was from the home State of the Presiding 
Officer and the ranking member of the Intelligence Committee on the 
floor. So the two Senators from Missouri, of course, I know harbor 
great pride in Harry Truman.
  One of the interesting things about Truman's tenure here in 
Washington, DC was not just his service in the Senate and not just him 
being President, but one of the sources of pride was his stewardship of 
something called the Truman Committee.
  At a time when a President of his own party was in power in the White 
House, he and the Congress created a committee here in the Senate to 
take a look at waste, fraud, and abuse in contracting, particularly in 
the military. It cost him $15,000 to start it. Estimates are they saved 
$15 billion--in dollars from that time. Think of that: $15,000 to start 
the committee and saved $15 billion.
  Now I know there are some who will disagree, but I happen to think it 
is long past time for us to be far more aggressive to find out what is 
happening to all this money. I will give you a couple of examples. One 
I have used a lot--

[[Page 1196]]

I shall not today--by bringing a towel to the floor of the Senate, but 
I have held up a towel that Henry Bunting brought. He was a buyer for 
Kellogg, Brown, and Root, a subsidiary of Halliburton. He was a buyer 
stationed in Kuwait. One of the things he was to do was buy hand towels 
for American soldiers. So he filed out the order for hand towels. His 
supervisor saw it and said: No, we are not going to buy those hand 
towels; we are going to buy hand towels with the initials of our 
company embroidered on the hand towels, KBR.
  He said: Well, that will almost triple the cost. He was told: That 
does not matter; this is a cost-plus contract. The American taxpayer is 
going to pick up that tab.
  So they ordered the towels that cost four or five times more. It did 
not matter; the taxpayers pick up the tab. That little towel is a very 
small reminder of what has been going on and how much the taxpayer has 
been fleeced. There is so much more.
  Why do we need to track these things? Well, Paul Mullinax is a good 
reason. I called Paul Mullinax one Sunday. He was a truck driver in 
Florida. Here is what Paul Mullinax did. This is a good example of 
contracting in FEMA.
  Paul Mullinax drives a refrigerated 18-wheeler. He was in Florida. He 
got a call from FEMA when Hurricane Katrina hit. They needed ice down 
in the Gulf of Mexico. So Paul Mullinax, God bless him, drove up, and 
he picked up some ice in New York for a FEMA contract; picked up a load 
of ice in his refrigerated truck. They said: Take it to Carthage, MO. 
This is ice that is destined for the Gulf of Mexico for the relief of 
the Katrina victims.
  He drove his truck from New York to Carthage, MO; got there, they 
said: No, you are not supposed to be in Carthage, MO; you are supposed 
to be in Montgomery, AL. So he turned his truck south and east and went 
to Montgomery, AL. When he got there, he said there were over 100 18-
wheel trucks. They had him park. He sat there for about 12 days with 
his refrigerated unit running on his truck. After about 12 or so days 
they sent him to Gloucester, MA, to offload his ice. This is ice 
destined for victims of Katrina. He picked it up in New York, went to 
Carthage, went to Alabama, and then they said: Offload it in a 
warehouse in Massachusetts, 15,000 bucks for that truckload of ice.
  There were another 100 18-wheelers sitting where he was sitting. 
Should somebody ask questions and say: Who on Earth is responsible for 
this? The answer is yes. Waste, fraud, and abuse in contracting is 
epidemic. It is unbelievable.
  Connected to the Katrina issue, this is a photograph, of course, of 
8,420 brandnew, never-used FEMA trailers clogging an unused airport. 
The question is: Who made that decision and why? Were there any 
consequences as a result of this decision? I do not know.
  This is money wrapped in Saran Wrap. Hundred dollar bills. This guy, 
by the way, told me--this is in a basement in Baghdad. This guy told me 
that they wrapped this money in Saran Wrap and occasionally threw it 
around like a football because it is about the size of a football--I 
have never wrapped hundred dollar bills. I have never seen that many 
hundred dollar bills. But if you wrap hundred dollar bills in Saran 
Wrap, I guess that is what it looks like. He said they actually threw 
them around like footballs in that room in Baghdad. The reason these 
were wrapped in Saran Wrap, with some rubber bands around them, is 
because this guy was in charge of distributing the money. He said we 
were paying contractors and subcontractors in Iraq, and our motto was: 
We pay in cash; you bring a bag.
  This payment happened to be a $2 million payment. We pay in cash, so 
bring a bag. He said it was just like the Wild West.
  Question: Who is watching over all of this? Who is tracing it all? 
There is, I think, substantial evidence, with the release just 2 days 
ago of the Special Inspector General for Iraq, and another report, if 
you go through all of those reports, not just with Iraq, go through the 
reports on Katrina, and so many other similar examples, there is, I 
think, substantial evidence to lead one to conclude this is the 
greatest waste, fraud, and abuse in the history of this country.
  Harry Truman, at a time when there was substantial concern about 
that, was able to get a select or special committee created here in the 
Congress, bipartisan; cost $15,000 to create, they saved $15 billion. 
Pretty successful. It ought to happen again. I am going to introduce 
legislation today, once again. We have voted on it several times 
previously. I propose that we once again create a Truman Committee, a 
bipartisan committee to investigate waste, fraud, and abuse, and on 
behalf of the American taxpayer say: This cannot continue. This has to 
stop.
  I am going to make a longer presentation at some point, but I wanted 
to simply indicate that there is so much that needs to be done on this 
issue, and my hope is that at last, at long, long last, this Senate 
will adopt a select committee or a special committee similar to the 
Truman Committee.
  If ever the American taxpayer deserved good Government, it is now, 
with something like this in which we can begin to unravel who got what 
and how we stop this from happening again.

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