[Senate Report 114-33]
[From the U.S. Government Publishing Office]
114th Congress } { Report
SENATE
1st Session } { 114-33
_______________________________________________________________________
ACTIVITIES OF THE COMMITTEE ON
HOMELAND SECURITY AND
GOVERNMENTAL AFFAIRS
__________
R E P O R T
of the
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
and its
SUBCOMMITTEES
for the
ONE HUNDRED THIRTEENTH CONGRESS
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
April 20, 2015--Ordered to be printed
______
U.S. GOVERNMENT PUBLISHING OFFICE
49-010 WASHINGTON : 2015
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
RON JOHNSON, Wisconsin, Chairman
JOHN McCAIN, Arizona THOMAS R. CARPER, Delaware
ROB PORTMAN, Ohio CLAIRE McCASKILL, Missouri
RAND PAUL, Kentucky JON TESTER, Montana
JAMES LANKFORD, Oklahoma TAMMY BALDWIN, Wisconsin
MICHAEL B. ENZI, Wyoming HEIDI HEITKAMP, North Dakota
KELLY AYOTTE, New Hampshire CORY A. BOOKER, New Jersey
JONI ERNST, Iowa GARY PETERS, Michigan
BEN SASSE, Nebraska
Keith B. Ashdown, Staff Director
Christopher R. Hixon, Chief Counsel
Gabrielle A. Batkin, Minority Staff Director
John P. Kilvington, Minority Deputy Staff Director
MaryBeth Schultz, Minority Chief Counsel
Laura W. Kilbride, Chief Clerk
------
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS DURING THE
113TH CONGRESS
THOMAS R. CARPER, Delaware, Chairman
CARL LEVIN, Michigan TOM COBURN, Oklahoma
MARK L. PRYOR, Arkansas JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana RON JOHNSON, Wisconsin
CLAIRE McCASKILL, Missouri ROB PORTMAN, Ohio
JON TESTER, Montana RAND PAUL, Kentucky
MARK BEGICH, Alaska MICHAEL B. ENZI, Wyoming
TAMMY BALDWIN, Wisconsin KELLY AYOTTE, New Hampshire
HEIDI HEITKAMP, North Dakota JEFF CHIESA, New Jersey\1\
------
SUBCOMMITTEES OF THE 113TH CONGRESS
PERMANENT SUBCOMMITTEE ON INVESTIGATIONS (PSI)
CARL LEVIN, Michigan, Chairman
MARK L. PRYOR, Arkansas JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana RON JOHNSON, Wisconsin
CLAIRE McCASKILL, Missouri ROB PORTMAN, Ohio
JON TESTER, Montana RAND PAUL, Kentucky
TAMMY BALDWIN, Wisconsin KELLY AYOTTE, New Hampshire
HEIDI HEITKAMP, North Dakota JEFF CHIESA, New Jersey\1\
------
FINANCIAL AND CONTRACTING OVERSIGHT (FCO)
CLAIRE McCASKILL, Missouri. Chairman
CARL LEVIN, Michigan RON JOHNSON, Wisconsin
MARK L. PRYOR, Arkansas JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana MICHAEL B. ENZI, Wyoming
MARK BEGICH, Alaska KELLY AYOTTE, New Hampshire
TAMMY BALDWIN, Wisconsin
------
EFFICIENCY AND EFFECTIVENESS OF FEDERAL PROGRAMS AND THE FEDERAL
WORKFORCE (FPFW)
JON TESTER, Montana, Chairman
MARK L. PRYOR, Arkansas ROB PORTMAN, Ohio
CLAIRE MCCASKILL, Missouri RON JOHNSON, Wisconsin
MARK BEGICH, Alaska RAND PAUL, Kentucky
TAMMY BALDWIN, Wisconsin MICHAEL B. ENZI, Wyoming
HEIDI HEITKAMP, North Dakota
------
EMERGENCY MANAGEMENT, INTERGOVERNMENTAL RELATIONS, AND THE DISTRICT OF
COLUMBIA (EMDC)
MARK BEGICH, Alaska, Chairman
CARL LEVIN, Michigan RAND PAUL, Kentucky
MARK L. PRYOR, Arkansas JOHN McCAIN, Arizona
MARY L. LANDRIEU, Louisiana ROB PORTMAN, Ohio
JON TESTER, Montana MICHAEL B. ENZI, Wyoming
HEIDI HEITKAMP, North Dakota JEFF CHIESA, New Jersey\1\
------
\1\Senator Jeff Chiesa served on the Committee from 6/20/2013 to 10/30/
2013.
CONTENTS
------
Page
I. Highlights of Activities.........................................1
Homeland Security.......................................... 2
A. Cybersecurity......................................... 2
B. Immigration and Border Security....................... 4
C. Chemical Security..................................... 5
D. Department of Homeland Security Management and
Oversight................................................ 5
E. Preparedness.......................................... 6
Government Affairs......................................... 7
A. Leadership............................................ 7
B. Curbing Improper Payments, Waste, and Fraud........... 7
C. Inspectors General.................................... 7
D. Federal Workforce..................................... 8
E. Security Clearance Processes.......................... 8
F. Federal Property...................................... 9
G. Information Technology Management..................... 9
H. Government Management and Efficiency.................. 9
I. Federal Procurement................................... 10
J. Department of Defense Financial Practices and Improved
Management............................................... 10
K. Grants Management..................................... 11
L. Census................................................ 11
M. District of Columbia.................................. 11
II. Committee Jurisdiction..........................................11
III. Bills and Resolutions Referred and Considered...................15
IV. Hearings........................................................15
V. Reports, Prints, and GAO Reports................................37
VI. Official Communications.........................................53
VII. Legislative Actions.............................................53
Measures Enacted Into Law................................ 53
Postal Naming Bills...................................... 66
VIII.Activities of the Subcommittees.................................70
Efficiency and Effectiveness of Federal Programs and the Federal
Workforce (FPFW)
I. Authority.......................................................70
II. Activity........................................................70
III. Legislation.....................................................74
IV. GAO Reports.....................................................75
Financial and Contracting Oversight (FCO)
I. Authority.......................................................76
II. Activity........................................................76
III. Legislation.....................................................99
Emergency Management, Intergovernmental Relations, and the District of
Columbia (EMDC)
I. Authority......................................................103
II. Activity.......................................................103
III. Legislation....................................................108
IV. GAO Reports....................................................108
Permanent Subcommittee on Investigations (PSI)
I. Historical Background..........................................110
A. Subcommittee Jurisdiction............................. 110
B. Subcommittee Investigations........................... 112
II. Subcommittee Hearings during the 113th Congress................118
III. Legislation Activities during the 113th Congress.............. 129
IV. Reports, Prints, and Studies...................................131
114th Congress } { Report
SENATE
1st Session } { 114-33
======================================================================
ACTIVITIES OF THE COMMITTEE ON HOMELAND
SECURITY AND GOVERNMENTAL AFFAIRS
DURING THE 113TH CONGRESS
_______
April 20, 2015--Ordered to be printed
_______
Mr. JOHNSON, from the Committee on Homeland Security and Governmental
Affairs, submitted the following
R E P O R T
This report reviews the legislative and oversight
activities of the Committee on Homeland Security and
Governmental Affairs and its Subcommittees during the 113th
Congress. These activities were conducted pursuant to the
Legislative Reorganization Act of 1946, as amended; by Rule
XXV(k) of the Standing Rules of the Senate; and by additional
authorizing resolutions of the Senate. See Section II,
``Committee Jurisdiction,'' for details.
Senator Carper was Chairman of the Committee during the
113th Congress; Senator Coburn was the Ranking Member.
Major activities of the Committee during the 113th Congress
included investigations, oversight, and legislation involving
strengthening our nation's critical infrastructure facilities,
cybersecurity, and borders; Postal Service reform; increasing
transparency into government spending; and curbing waste,
fraud, and abuse in government programs. Discussion of these
major activities appears in Section I below; additional
information on these and other measures appears in Section VII,
``Legislative Actions.''
Extensive information about the Committee's history,
hearings, legislation, documents, Subcommittees, and other
matters is available at the Web site, http://hsgac.senate.gov/.
I. HIGHLIGHTS OF ACTIVITIES
During the 113th Congress, the Homeland Security and
Governmental Affairs Committee (``the Committee'' or ``HSGAC'')
worked to address critical issues facing our Nation and Federal
agencies. Through oversight and legislation, the Committee
worked to bolster the effectiveness and efficiency of the
Federal Government, in ways such as protecting our critical
infrastructure from cyber attacks, securing our Nation's
chemical facilities, reducing wasteful and fraudulent spending,
and getting better results from Federal programs.
The 9/11 terrorist attacks prompted one of the greatest
reorganizations the Federal Government has seen since World War
II and brought to light a number of vulnerabilities that our
Nation faces both domestically and abroad. Recent threats from
cyber attacks to the Boston Marathon Bombings to the rise of
the violent extremists, including the Islamic State of Iraq and
Syria (ISIS), show that threats to our Nation continue to
evolve and underscore that our homeland security needs to
evolve with it. In response to the evolving threats, the
Committee prioritized homeland security legislation and
oversight to bolster the Department of Homeland Security, to
strengthen our Nation's critical infrastructure facilities,
cybersecurity, and borders, and to ensure that the men and
women who keep us safe receive the support, resources, and
authorities needed to protect Americans and our country.
Much of the Committee's efforts on governmental affairs
issues centered on working to reform and modernize the U.S.
Postal Service, including through Committee passage of a bill
offering solutions to this American institution's financial
crisis. Further, an overarching goal of the Committee's
government affairs agenda this Congress was working on a strong
bipartisan basis to drive agencies to deliver better results
for less money in their Federal programs. Through leveraging
the work of the Government Accountability Office (GAO) and
agency Inspectors General, the Committee passed a number of
pieces of legislation to make strides in that effort, including
legislation to curb waste, fraud and abuse in government
programs, provide greater transparency into government
spending, strengthen programs against improper payments, and
improve the government's multi-billion dollar information
technology (IT) portfolio management.
Homeland Security
As the Department of Homeland Security (``the Department''
or ``DHS'') celebrated its 10 year anniversary in 2013,
Chairman Carper and Ranking Member Coburn conducted a top to
bottom review of the Department to help ensure it was
effectively and efficiently accomplishing its missions. As part
of this review the Committee held several oversight hearings
including ``DHS at 10 Years: A Progress Report on Management,''
``DHS at 10 Years: Harnessing Science and Technology to Protect
National Security and Enhance Government Efficiency,'' and
``DHS at 10 Years: Examining Challenges and Achievements and
Addressing Emerging Threats.'' This review helped inform the
Committee's legislative and oversight work for this Congress.
The Committee also conducted several briefings and hearings
to examine evolving threats to the Homeland, including
cybersecurity, terrorism, and radiological materials.
A. Cybersecurity
In the 113th Congress, the Committee continued its focus on
cybersecurity. Following President Obama's 2013 Executive Order
regarding cybersecurity which put in motion the creation of an
industry driven framework for voluntary cybersecurity
standards, the Committee did careful oversight and worked to
develop bipartisan cybersecurity legislation. By the end of the
113th Congress, the Committee had worked with its House
counterparts to pass into law four critical bills to strengthen
our national and economic security by modernizing our Nation's
cybersecurity and strengthening the Department of Homeland
Security's cyber work force.
At the beginning of the 113th Congress, the Committee held
a joint cybersecurity hearing with the Senate Commerce,
Science, and Technology Committee, entitled ``The Cybersecurity
Partnership Between the Private Sector and Our Government:
Protecting Our National and Economic Security.'' This was the
first joint hearing with the Homeland Security and Governmental
Affairs Committee (as well as its predecessor committee--the
Governmental Affairs Committee) and the Senate Committee on
Commerce, Science, and Transportation in over 35 years. The
Committee continued to examine the evolving issue of
cybersecurity through several other hearings, including
``Strengthening Public-Private Partnerships to Reduce Cyber
Risks to Our Nation's Critical Infrastructure,'' and ``Data
Breach on the Rise: Protecting Personal Information from
Harm.'' Cybersecurity was also discussed at several briefings
and hearings focused on evolving threats, including
``Cybersecurity, Terrorism, and Beyond: Addressing Evolving
Threats to the Homeland.''
In December 2014, Congress passed and the President signed
into law four cybersecurity bills which were top priorities of
the Committee. The Federal Information Security Modernization
Act of 2014, P.L. 113-283, updates the Federal Information
Security Management Act of 2002 to better protect Federal
agencies from cyber attacks. The National Cybersecurity
Protection Act of 2014, P.L. 113-282, codifies the existing
National Cybersecurity and Communications Integration Center at
the Department of Homeland Security and the Center's existing
cybersecurity responsibilities. The DHS Cybersecurity Workforce
Recruitment and Retention Act of 2014, passed out of Committee
and enacted into law as part of the Border Patrol Agent Pay
Reform Act of 2013, P.L. 113-277, helps the Department hire and
retain cybersecurity professionals by providing the Department
with personnel authorities similar to those of the Secretary of
Defense. The Cybersecurity Workforce Assessment Act, P.L. 113-
246, strengthens the Department of Homeland Security's
cybersecurity work force by requiring the Secretary of Homeland
Security to assess the cybersecurity workforce of DHS and
develop a strategy to enhance the department's ability to
protect our Nation from cyber-attacks.
Following the announcement of major data breaches at the
Office Personnel Management and a Federal contractor
responsible for processing security clearances, the Committee
worked in bipartisan fashion through letters and briefings to
better understand how the data breaches potentially exposed the
personal information of tens of thousands of Federal employees
and jeopardized the security clearance process. The Committee's
oversight helped ensure steps were taken to better secure the
information obtained through the security clearance process and
that Federal agencies were working closely with personnel
impacted by the breaches.
B. Immigration and Border Security
The Committee continued to be an active and important
participant in the broad debate on comprehensive immigration
reform legislation during the 113th Congress. The Committee
conducted robust oversight in this area through a series of
hearings on border security, beginning with hearings on the
State of border security: ``Border Security: Measuring the
Progress and Addressing the Challenges,'' and ``Border
Security: Frontline Perspectives on Progress and Remaining
Challenges.'' The Committee then held a hearing specifically on
legislative language regarding border security within the
comprehensive immigration reform legislation being considered
in the Judiciary Committee: ``Examining Provisions in the
Border Security, Economic Opportunity, and Immigration
Modernization Act (S. 744).'' During these hearings, various
witnesses discussed the large investments made by the Federal
Government in securing the northern and southern borders and
noted that the border was more secure than it had ever been in
the past though challenges still remain.
In June 2013, the Senate began debate on the comprehensive
immigration reform legislation, S. 744. The legislation was
ultimately approved by the Senate with a bipartisan vote of 68-
32. Notably, the bill included two amendments offered by the
Chairman. The first amendment (Amdt. 1273) would authorize a
pilot program to notify visa holders on the looming expiration
of their visas. The second amendment (Amdt. 1408) would require
the Department of State and the Department of Homeland Security
to provide training and material assistance to border and law
enforcement officials in Mexico and Central America in order to
help them operate more effectively. This amendment would also
create a ``truth campaign'' aimed at disseminating educational
materials to would-be migrants about the perils of the journey
across Mexico.
In addition to its work on S. 744, the Committee examined
other challenges associated with border security and the
Nation's ports of entry. For example, in response to the surge
of unaccompanied minors and families apprehended along the
southwest border in the spring and summer of 2014, the
Committee studied the humanitarian crisis with a series of
hearings to examine the factors driving the historic surge of
Central Americans arriving at the border, and in many cases
seeking asylum, as well as the government response. The
hearings included: ``Challenges at the Border: Examining the
Causes, Consequences, and Responses to the Rise in
Apprehensions at the Southern Border,'' and ``Challenges at the
Border: Examining and Addressing the Root Causes Behind the
Rise in Apprehensions at the Southern Border.'' As part of the
Committee's oversight agenda on this issue and border security
more broadly, Chairman Carper went on six congressional
delegation trips to examine the northern and southern borders
as well as Mexico, Guatemala, El Salvador, and Honduras.
The Committee also addressed concerns about the misuse of
Administratively Uncontrollable Overtime at Customs and Border
Protection. The Committee approved and helped to enact The
Border Patrol Agent Pay Reform Act of 2013 (S. 1691), P.L. 113-
277, which simplifies the current pay system for Border Patrol
agents, addresses concerns about the misuse of Administratively
Uncontrollable Overtime, and saves taxpayers more than $100
million a year. At the same time, the bill adds more than two
million hours of border enforcement by frontline agents--the
equivalent of adding 1,500 agents to patrol our Nation's land
borders. The Committee held hearings to examine this issue more
closely, including: ``Examining the Use and Abuse of
Administratively Uncontrollable Overtime at the Department of
Homeland Security,'' held before the Subcommittee on the
Efficiency and Effectiveness of Federal Programs and the
Federal Workforce, and ``Examining the Implications of S. 1691,
the Border Patrol Agent Pay Reform Act of 2013,'' held by the
full Committee.
C. Chemical Security
The Committee conducted a variety of oversight activities
on the Chemical Facility Anti-Terrorism Standards (CFATS)
program at the Department of Homeland Security, including
holding a hearing, ``Charting a Path Forward for the Chemical
Facilities Anti-Terrorism Standards Program'', and multiple
briefings. This robust oversight helped inform the CFATS
reauthorization legislation drafted by the Committee and passed
by Congress. The Chemical Facility Anti-Terrorism Standards
Program Authorization and Accountability Act of 2014, now P.L.
113-254, reauthorizes the CFATS program within the Department
and implements a series of important changes to make the
program more efficient and effective. Specifically, the law
reauthorizes the CFATS program for 4 years, establishes a
voluntary new expedited approval procedure for site security
plans for certain chemical facilities, improves aspects of
information sharing with State and local officials, and
enhances the Department's ability to identify high-risk
chemical facilities that otherwise go unmonitored.
D. Department of Homeland Security Management and Oversight
Throughout the 113th Congress, the Committee examined and
looked for ways to improve the management, efficiency and
effectiveness of the Department and its various components. The
Committee focused on streamlining management decisions,
increasing collaboration among agency components, filling key
Department leadership vacancies, building a more unified
Department, and finding ways to improve Department-wide
employee morale.
The Committee conducted significant oversight on the
Department's financial management, specifically on the
Department's ability to obtain a clean financial audit, through
hearings, letters, and multiple briefings. In 2013, the
Department obtained its first clean audit and repeated this
important accomplishment in 2014. Additionally, the Committee
engaged on a regular basis with senior officials of the
Department, the Office of Inspector General of the Department,
and subject matter experts at the Government Accountability
Office to discuss progress and challenges in the Department's
management of acquisitions, human capital, information
technology and financial systems.
Another priority for the Committee during the 113th
Congress was confirming individuals to fill the many vacancies
in the senior leadership at the Department of Homeland
Security, including: Jeh Johnson, Secretary; Alejandro
Mayorkas, Deputy Secretary; Suzanne Spaulding, Under Secretary;
L. Reginald Brothers, Jr., Under Secretary for Science and
Technology; Joseph Nimmich, Deputy Administrator, Federal
Emergency Management Agency; Sarah Saldana, Assistant
Secretary, Immigration and Customs Enforcement; and John Roth,
Inspector General. As part of the Committee's ongoing efforts
to oversee Department management, Chairman Carper attended a
roundtable to discuss low worker morale and supported
undertakings to foster unity of effort throughout the
Department.
Chairman Carper's Majority Committee Staff produced a staff
report, entitled ``Security and Savings: The Importance of
Consolidating the Department of Homeland Security's
Headquarters at St. Elizabeths.'' This report found that the
Department's consolidation at the St. Elizabeths campus will
improve the Department's ability to carry out its mission,
while saving the taxpayer money. Specifically, consolidation
would foster unity of effort, improve morale and productivity,
reduce management challenges and travel inefficiencies, improve
crisis management, and save the Federal Government
approximately $1 billion over the next 30 years. The report
drew its findings from interviews with the Department's former
Secretaries Tom Ridge, Michael Chertoff, and Janet Napolitano,
other top former Department officials, agency documents, and
independent analysis.
E. Preparedness
As part of its Federal emergency management oversight, the
Committee continued to explore different cases to assess and
examine how prepared the Federal Government is to respond to
disasters, both natural and man-made, and what it needs to do
to improve.
Following the April 15, 2013 bombings at the Boston
Marathon, the Committee conducted oversight through letters,
hearings, and briefings to examine the response to the
bombings, coordination after the event, intelligence and
information sharing among agencies, and what could be improved
to prevent another lone wolf terrorist attack. The Committee
held a series of two hearings on the incident: ``Lessons
Learned from the Boston Marathon Bombing: Improving
Intelligence and Information Sharing'' and ``Lessons Learned
from the Boston Marathon Bombings: Preparing for and Responding
to the Attack.'' The oversight provided by Congress on the
Boston Marathon resulted in a number of counterterrorism
improvements across multiple Federal agencies.
Following the addition of the risk and costs associated
with climate change and extreme weather on the Government
Accountability Office's High Risk List in 2013, the Committee
held a hearing entitled, ``Extreme Weather Events: The Costs of
Not Being Prepared.'' The Ebola epidemic in summer 2014 in West
Africa prompted the Committee to hold the hearing,
``Preparedness and Response to Public Health Threats: How Ready
Are We?'', which examined Ebola and other health threats. The
Committee also held a hearing examining lessons learned from
the Hurricane Sandy response entitled ``Hurricane Sandy:
Getting the Recovery Right and the Value of Mitigation.''
Government Affairs
A. Leadership
The Committee moved several key nominations to senior
positions in the executive branch responsible for government
management: Sylvia Mathews Burwell, Director, Office of
Management and Budget; Shaun L. S. Donovan, Director, Office of
Management and Budget; Brian C. Deese, Deputy Director, Office
of Management and Budget; Beth F. Cobert, Deputy Director for
Management, Office of Management and Budget; David Mader,
Controller, Office of Management and Budget; Anne E. Rung,
Administrator for Federal Procurement Policy, Office of
Management and Budget; Howard Shelanski, Administrator, Office
of Information and Regulatory Affairs, Office of Management and
Budget; Katherine Archuleta, Director, Office of Personnel
Management; Daniel M. Tangherlini, Administrator of the General
Services Administration; and John H. Thompson, Director of the
Census, U.S. Department of Commerce. In moving these
nominations expeditiously, Chairman Carper underscored strong
leadership as the key to success of any organization, including
the Federal Government.
B. Curbing Improper Payments, Waste, and Fraud
The Committee continued its oversight and efforts to better
identify and reduce improper payments across the Federal
Government. The Improper Payments Agency Cooperation
Enhancement (IPACE) Act of 2013 (S. 1360), which passed the
Senate, would direct the Commissioner of Social Security to
provide information on all deceased individuals that is
furnished to or maintained by the Commissioner to Federal or
State agencies in order to reduce improper payments and to
administer programs more efficiently.
In addition to sponsoring the IPACE Act, Chairman Carper
and Ranking Member Coburn testified before House Oversight and
Government Reform Committee hearing entitled ``Waste in
Government: What's Being Done?''. The Committee sent multiple
letters to the executive branch and conducted a review of
implementation of improper payments legislation across the
government. The Committee also sent numerous letters to the
executive branch calling attention to Medicare prescription
drug fraud and highlighting promising methods of improved
oversight of Medicare and Medicaid, including Recovery Act
Contracting. Additionally, the Committee held three hearings
related to waste, fraud and abuse, ``Curbing Prescription Drug
Abuse in Medicare'', ``Curbing Federal Agency Waste and Fraud:
New Steps to Strengthen the Integrity of Federal Payments'',
and ``Social Security Disability Benefits: Did a Group of
Judges, Doctors, and Lawyers Abuse Programs for the Country's
Most Vulnerable?''.
C. Inspectors General
The Committee began the 113th Congress with a letter to
President Obama urging him to fill Inspector General (IG)
vacancies throughout the Federal Government. In addition, the
Committee spent considerable time working with the IG community
and the Administration on a range of issues. For example, the
Committee opened a productive conversation with the IG
community and other members of the Council of the Inspectors
General on Integrity and Efficiency to discuss ways to expedite
and otherwise improve the process for investigating allegations
against IGs and other top officials in IG offices.
The Committee helped to enact the OPM IG Act (H.R. 2860),
now P.L. 113-80. This law authorizes the use of funding from
the Office of Personnel Management (OPM) revolving fund to pay
for audits and investigations by the Inspector General of OPM.
This will allow the OPM IG to conduct important oversight of
the activities funded by the revolving fund, which include the
conduct of background investigations of Federal employees and
contractors. The Senate version of this legislation, S. 1276,
the Security Clearance Oversight and Reform Enhancement Act,
was reported favorably out of committee and passed the Senate.
The Committee also took legislative action to help the
Inspector General's Office at the Department of Homeland
Security operate more effectively and efficiently. The
Committee approved the DHS OIG Mandates Revision Act of 2014
(S. 2651), P.L. 113-284, which eliminated a number of
unnecessary and duplicative congressional mandated audits
performed by the Office of Inspector General of the Department
of Homeland Security.
D. Federal Workforce
The Committee successfully helped to enact the All Circuit
Review Extension Act (H.R. 4197), P.L. 113-170. This law
strengthens the protection of Federal-employee whistleblowers
who suffer retaliation, by extending for an additional 3 years
the ability of these whistleblowers to appeal their case to any
Federal circuit court of appeals, rather than being limited to
the Federal Court of Appeals for the Federal Circuit. The
committee also successfully helped to enact the Smart Savings
Act (H.R. 4193), P.L. 113-255, which was the House companion to
S. 2117. This new law will help Federal employees save for
retirement in the Thrift Savings Plan (TSP) by investing the
employee's TSP funds, by default, in an age-appropriate target-
date asset-allocation investment fund (L Fund), instead of the
Government Securities Investment Fund (G Fund), if the employee
makes no election.
E. Security Clearance Processes
The Committee conducted extensive oversight of the
government's security clearance processes in response to a
series of incidents--the leak of military information to
Wikileaks by Pfc Bradley Manning, the leaks of classified
information by Edward Snowden, the Washington Navy Yard
shooting by Aaron Alexis, and allegations of massive fraud in
the conduct of background investigations by OPM's contractor
USIS. In response to the September 2013 shooting at the
Washington Navy Yard, the Committee held two hearings, ``The
Navy Yard Tragedy: Examining Government Clearances and
Background Checks'' and ``Examining Physical Security for
Federal Facilities.''
Following the Navy Yard shooting, President Obama called
for an interagency review of clearances processes. The inter-
agency recommendations to the President from this review were
released in March 2014. The Committee hosted several briefings
by the interagency team, chaired by Office of Management and
Budget, that managed the President's review. The Committee also
reported three bills to improve the security clearance process:
the Security Clearance Accountability, Reform and Enhancement
Act (S. 1744), the Enhanced Security Clearance Act of 2014 (S.
1618), and the Preventing Conflicts of Interest with
Contractors Act (S. 2061). These bills would have,
respectively, required random checks of security clearance
holders, ensured that Federal employees or contractors who
undermine the security clearance process are banned from
further work related to that process, and prohibited
contractors who perform background investigations from doing
the final quality review of their own work. While these bills
were not enacted, their consideration by Congress helped keep
pressure on the ongoing interagency reform efforts.
F. Federal Property
The Committee conducted extensive oversight to examine and
implement ways to improve the management of the Federal
Government's real property portfolio, including the activities
of agencies and the Federal Real Property Council, which helped
inform the Chairman's legislation, the Federal Real Property
Asset Management Reform Act (S. 1398). The bill would codify
the responsibilities of the Federal Real Property Council and
require agencies to take steps to improve the management of
property. In addition, the bill would establish a pilot program
for expedited disposal of real property. While the bill did not
pass, the Committee's oversight continued to highlight the need
for improvements in this area. These efforts helped give force
to President Obama's drive to reduce the Federal footprint of
government office space, resulting in a reduction of 10.2
million square feet in 2013.
G. Information Technology Management
The Committee passed key pieces of legislation that will
modernize and update the Federal Government's management of its
massive information technology (IT) portfolio. FITARA, which
was included in the Carl Levin and Howard P. ``Buck'' McKeon
National Defense Authorization Act for Fiscal Year 2015 (H.R.
3979), P.L. 113-291, strengthens the authorities of agency
Chief Financial Officers and improves transparency and
oversight over Federal IT projects. This bill also includes the
language of S. 1611, the Federal Data Center Consolidation Act
of 2013, which was reported out of the Committee and passed the
Senate. The Committee also held two hearings to examine the
acquisition and management of IT programs and projects:
``Identifying Critical Factors for Success in Information
Technology Acquisitions'' and ``Reducing Duplication and
Improving Outcomes in Federal Information Technology.''
H. Government Management and Efficiency
Throughout the 113th Congress, the Committee made it a top
priority to help ensure that the Federal Government develop and
maintain a wiser and more effective management strategy and to
make Federal agencies operate more efficiently.
In a hearing, ``The Costs and Impacts of Crisis
Governing,'' the Committee examined the effects of stop-gap
continuing resolutions and government shut downs, both of which
happened during the 113th Congress. The Committee also focused
on updating and modernizing the Federal Government's overall
management strategy in a two-part hearing series: ``Management
Matters: Creating a 21st Century Government.'' The Committee
also approved the Government Reports Elimination Act of 2014
(H.R. 4194), now P.L. 113-188, to improve government efficiency
by eliminating requirements for agencies to produce over fifty
reports that are no longer needed.
I. Federal Procurement
The Committee focused on ways to help the Federal
Government save billions of dollars each year through better
procurement practices. For example, the Committee held the
hearing, ``Strategic Sourcing: Leveraging the Government's
Buying Power to Save Billions.'' Additionally, oversight in
this area laid the groundwork for a provision within the
Federal Information Technology Acquisition Reform Act (FITARA),
which includes a provision requiring agencies to produce an
analysis justifying any decision to use contracts other than
those available under the Federal Strategic Sourcing Initiative
when goods and services are available under the Initiative.
Committee staff also received regular briefs on efforts to
achieve better results in Federal contracting from the Office
of Federal Procurement Policy, the General Services
Administration, and the Defense Contract Audit Agency.
The Committee also held a hearing entitled ``The
Intelligence Community: Keeping Watch Over Its Contractor
Workforce.'' This hearing was convened in response to a
Government Accountability Report entitled, ``The Civilian
Intelligence Community: Additional Actions Needed to Improve
Reporting on and Planning for Use of Contract Personnel'' (GAO-
14-204). The hearing highlighted the need for the intelligence
community to track work performed by contractors and costs
associated with the contractor work force, and to analyze
whether work being performed by contractors should be performed
instead by Federal employees.
The Committee also approved the Never Contract with the
Enemy Act (S. 675), which was signed into law as part of the
Carl Levin and Howard P. ``Buck'' McKeon National Defense
Authorization Act for Fiscal Year 2015 (H.R. 3979), P.L. 113-
291. This legislation provides a streamlined process for
cutting off government contracts or grants that flow to persons
who actively oppose U.S. forces who are engaged in hostilities.
J. Department of Defense Financial Practices and Improved Management
The Committee held the hearing, ``Improving Financial
Management at the Department of Defense'' to examine challenges
still facing the Department of Defense (DOD) in achieving
auditability and sent oversight letters to senior DOD leaders
to emphasize the importance of sound financial management.
While the Department has made some notable progress in
improving financial management, the Committee's oversight has
highlighted that DOD has a long road to travel for the
Department to become fully auditable by the 2017 deadline. The
Committee also sent oversight letters related to management of
DOD ammunition, the return of vehicles from Afghanistan, and
DOD overstock of inventory.
K. Grants Management
The Committee continued its oversight of governmentwide
grants management in order to ease the administrative burden
for those applying for and receiving grants, and to ensure that
recipients are good stewards of Federal funds. Attention to
this issue prompted the Office of Management and Budget to
release new guidance in December 2013 to ease administrative
burdens and curb waste and fraud in grants. The Committee
continued its oversight in 2014 to evaluate the new guidance
and its implementation.
L. Census
The Committee pressed the Census Bureau throughout the
113th Congress to learn from and act on the lessons from the
technology problems and cost overruns of the 2010 Decennial
Census. The Committee sent a detailed oversight letter to the
Director of the Census Bureau expressing concern about
preparations for the 2020 Decennial Census, including the
Bureau's testing and research for the September 2015 design
decision.
M. District of Columbia
The Committee convened the hearing, ``Equality for the
District of Columbia: Discussing the Implications of S. 132,
the New Columbia Admission Act of 2013'', to examine Statehood
proposals for the District of Columbia and the lack of voting
representation for the District in Congress, reinvigorating
discussion of the ongoing difficulties for the District that
result from its unique status. The Chairman also pushed for
confirmation of judges to the D.C. Superior Court and wrote
letters to the Appropriations Committee advocating legislative
and budget autonomy for the District. This advocacy helped
secure language in the omnibus appropriations bills for fiscal
years 2014 and 2015 that will allow the District to continue to
spend its local funds into 2016 in the event of a Federal
Government shutdown.
Finally, the Committee helped enact several bills involving
District of Columbia issues, including: (1) H.R. 1246, the
District of Columbia Chief Financial Officer Vacancy Act, P.L.
113-8; (2) H.R. 3343, a bill to amend the District of Columbia
Home Rule Act to clarify the rules regarding the determination
of the compensation of the Chief Financial Officer of the
District of Columbia, P.L. 113-71; and (3) H.R. 4192, a bill to
amend the Act entitled ``An Act to regulate the height of
buildings in the District of Columbia'' to clarify the rules of
the District of Columbia regarding human occupancy of
penthouses above the top story of the building upon which the
penthouse is placed, P. L. 113-103.
II. COMMITTEE JURISDICTION
The jurisdiction of the Committee (which was renamed the
Committee on Homeland Security and Governmental Affairs when
the 109th Congress convened) derives from the Rules of the
Senate and Senate Resolutions:
RULE XXV
* * * * * * * *
(k)(1) Committee on Governmental Affairs, to which
committee shall be referred all proposed legislation, messages,
petitions, memorials, and other matters relating to the
following subjects:
1. Archives of the United States.
2. Budget and accounting measures, other than
appropriations, except as provided in the Congressional Budget
Act of 1974.
3. Census and collection of statistics, including economic
and social statistics.
4. Congressional organization, except for any part of the
matter that amends the rules or orders of the Senate.
5. Federal Civil Service.
6. Government information.
7. Intergovernmental relations.
8. Municipal affairs of the District of Columbia, except
appropriations therefore.
9. Organization and management of United States nuclear
export policy.
10. Organization and reorganization of the executive branch
of the Government.
11. Postal Service.
12. Status of officers and employees of the United States,
including their classification, compensation, and benefits.
(2) Such committee shall have the duty of----
(A) receiving and examining reports of the Comptroller
General of the United States and of submitting such
recommendations to the Senate as it deems necessary or
desirable in connection with the subject matter of such
reports;
(B) studying the efficiency, economy, and effectiveness of
all agencies and departments of the Government;
(C) evaluating the effects of laws enacted to reorganize
the legislative and executive branches of the Government; and
(D) studying the intergovernmental relationships between
the United States and the States and municipalities, and
between the United States and international organizations of
which the United States is a member.
SENATE RESOLUTION 253, 113th CONGRESS
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS.
Sec. 12. (a) * * *
* * * * * * * *
(d) INVESTIGATIONS----
(1) IN GENERAL.--The committee, or any duly authorized
subcommittee of the committee, is authorized to study or
investigate----
(A) the efficiency and economy of operations of all
branches of the Government including the possible existence of
fraud, misfeasance, malfeasance, collusion, mismanagement,
incompetence, corruption, or unethical practices, waste,
extravagance, conflicts of interest, and the improper
expenditure of Government funds in transactions, contracts,
and, activities of the Government or of Government officials
and employees and any and all such improper practices between
Government personnel and corporations, individuals, companies,
or persons affiliated therewith, doing business with the
Government; and the compliance or noncompliance of such
corporations, companies, or individuals or other entities with
the rules, regulations, and laws governing the various
governmental agencies and its relationships with the public;
(B) the extent to which criminal or other improper
practices or activities are, or have been, engaged in the field
of labor-management relations or in groups or organizations of
employees or employers, to the detriment of interests of the
public, employers, or employees, and to determine whether any
changes are required in the laws of the United States in order
to protect such interests against the occurrence of such
practices or activities;
(C) organized criminal activity which may operate in or
otherwise utilize the facilities of interstate or international
commerce in furtherance of any transactions and the manner and
extent to which, and the identity of the persons, firms, or
corporations, or other entities by whom such utilization is
being made, and further, to study and investigate the manner in
which and the extent to which persons engaged in organized
criminal activity have infiltrated lawful business enterprise,
and to study the adequacy of Federal laws to prevent the
operations of organized crime in interstate or international
commerce; and to determine whether any changes are required in
the laws of the United States in order to protect the public
against such practices or activities;
(D) all other aspects of crime and lawlessness within the
United States which have an impact upon or affect the national
health, welfare, and safety; including but not limited to
investment fraud schemes, commodity and security fraud,
computer fraud, and the use of offshore banking and corporate
facilities to carry out criminal objectives;
(E) the efficiency and economy of operations of all
branches and functions of the Government with particular
reference to----
(i) the effectiveness of present national security methods,
staffing, and processes as tested against the requirements
imposed by the rapidly mounting complexity of national security
problems;
(ii) the capacity of present national security staffing,
methods, and processes to make full use of the Nation's
resources of knowledge and talents;
(iii) the adequacy of present intergovernmental relations
between the United States and international organizations
principally concerned with national security of which the
United States is a member; and
(iv) legislative and other proposals to improve these
methods, processes, and relationships;
(F) the efficiency, economy, and effectiveness of all
agencies and departments of the Government involved in the
control and management of energy shortages including, but not
limited to, their performance with respect to----
(i) the collection and dissemination of accurate statistics
on fuel demand and supply;
(ii) the implementation of effective energy conservation
measures;
(iii) the pricing of energy in all forms;
(iv) coordination of energy programs with State and local
government;
(v) control of exports of scarce fuels;
(vi) the management of tax, import, pricing, and other
policies affecting energy supplies;
(vii) maintenance of the independent sector of the
petroleum industry as a strong competitive force;
(viii) the allocation of fuels in short supply by public
and private entities;
(ix) the management of energy supplies owned or controlled
by the Government;
(x) relations with other oil producing and consuming
countries;
(xi) the monitoring of compliance by governments,
corporations, or individuals with the laws and regulations
governing the allocation, conservation, or pricing of energy
supplies; and
(xii) research into the discovery and development of
alternative energy supplies; and
(G) the efficiency and economy of all branches and
functions of Government with particular references to the
operations and management of Federal regulatory policies and
programs.
(2) EXTENT OF INQUIRIES.--In carrying out the duties
provided in paragraph (1), the inquiries of this committee or
any subcommittee of the committee shall not be construed to be
limited to the records, functions, and operations of any
particular branch of the Government and may extend to the
records and activities of any persons, corporation, or other
entity.
(3) SPECIAL COMMITTEE AUTHORITY.--For the purposes of this
subsection, the committee, or any duly authorized subcommittee
of the committee, or its chairman, or any other member of the
committee or subcommittee designated by the chairman is
authorized, in its, his or her, or their discretion----
(A) to require by subpoena or otherwise the attendance of
witnesses and production of correspondence, books, papers, and
documents;
(B) to hold hearings;
(C) to sit and act at any time or place during the
sessions, recess, and adjournment periods of the Senate;
(D) to administer oaths; and
(E) to take testimony, either orally or by sworn statement,
or, in the case of staff members of the Committee and the
Permanent Subcommittee on Investigations, by deposition in
accordance with the Committee Rules of Procedure.
(4) AUTHORITY OF OTHER COMMITTEES.--Nothing contained in
this subsection shall affect or impair the exercise of any
other standing committee of the Senate of any power, or the
discharge by such committee of any duty, conferred or imposed
upon it by the Standing Rules of the Senate or by the
Legislative Reorganization Act of 1946.
(5) SUBPOENA AUTHORITY.--All subpoenas and related legal
processes of the committee and its subcommittee authorized
under S. Res. 64, agreed to March 5, 2013 (113th Congress) are
authorized to continue.
III. BILLS AND RESOLUTIONS REFERRED AND CONSIDERED
During the 113th Congress, 173 Senate bills and 87 House
bills were referred to the Committee for consideration. In
addition, 4 Senate Resolutions and 1 Senate Concurrent
Resolutions were referred to the Committee.
The Committee reported 69 bills; an additional 15 measures
were discharged.
Of the legislation received by the Committee, 40 measures
became public laws, including 33 postal naming bills.
IV. HEARINGS
During the 113th Congress, the Committee held 70 hearings
on legislation, oversight issues, and nominations. Hearing
titles and dates follow.
The Committee also held 18 scheduled business meetings.
Lists of hearings with copies of statements by Members and
witnesses, with archives going back to 1997, are online at the
Committee's Web site, http://hsgac.senate.gov/.
Solutions to the Crisis Facing the U.S. Postal Service. February 13,
2013. (S. Hrg. 113-18)
The purpose of this three-panel hearing was to examine the
financial and other challenges facing the Postal Service and
proposals that have been put forward to address those
challenges, including proposals made by the management of the
Postal Service and legislative proposals that have been or are
being considered in Congress. The Committee was also interested
in the witnesses' assessments of the implications if Congress
does not enact postal reform legislation.
Witnesses: Panel I: Hon. Darrell E. Issa, U.S. House of
Representatives; and Hon. Elijah E. Cummings, U.S. House of
Representatives. Panel II: Hon. Patrick R. Donahoe, Postmaster
General and Chief Executive Officer, U.S. Postal Service; and
Hon. Eugene L. Dodaro, Comptroller General of the United
States, U.S. Government Accountability Office. Panel III: Cliff
Guffey, President, American Postal Workers Union; Jeanette P.
Dwyer, President, National Rural Letter Carriers' Association;
Robert J. Rapoza, President, National Association of
Postmasters of the United States; Joel Quadracci, Chairman,
President, and Chief Executive Officer, Quad/Graphics, Inc.;
and R. Richard Geddes, Ph.D., Associate Professor, Department
of Policy Analysis and Management, Cornell University.
The Cybersecurity Partnership Between the Private Sector and Our
Government: Protecting Our National and Economic Security.
March 7, 2013. (S. Hrg. 113-295)
The purpose of this two-panel hearing, held jointly with
the Senate Committee on Commerce, Science, and Transportation,
was to examine the cybersecurity partnership between the
Federal Government and the private sector, as well as the
Cybersecurity Framework and other provisions outlined in the
Executive Order issued by President Obama on February 12, 2013.
The witnesses addressed the Federal Government's progress in
designing and implementing risk-based Federal and critical
infrastructure programs, as well as concerns about detecting,
responding to, and mitigating cyber incidents in both the
public and private sector.
Witnesses: Panel I: Hon. Janet A. Napolitano, Secretary,
U.S. Department of Homeland Security; and Hon. Patrick D.
Gallagher, Under Secretary for Standards and Technology, U.S.
Department of Commerce. Panel II: Gregory C. Wilshusen,
Director, Information Security Issues, U.S. Government
Accountability Office; and David E. Kepler, Chief
Sustainability Officer, Chief Information Officer, Business
Services and Executive Vice President, The Dow Chemical
Company.
The Costs and Impacts of Crisis Budgeting. March 13, 2013. (S. Hrg.
113-25)
The purpose of this single-panel hearing was to examine the
fiscal and operational impacts of chronic Federal budget
uncertainty on agency operations and management. Further, the
hearing explored the cascading effects of this uncertainty on
state and local governments, Federal employee morale, and the
economy at large.
Witnesses: Philip G. Joyce, Ph.D., Professor of Management,
Finance, and Leadership, School of Public Policy, University of
Maryland; Scott D. Pattison, Executive Director, National
Association of State Budget Officers; Colleen M. Kelley,
National President, National Treasury Employees Union; and Stan
Z. Soloway, President and Chief Executive Officer, Professional
Services Council.
Border Security: Measuring the Progress and Addressing the Challenges.
March 14, 2013. (S. Hrg. 113-254)
This single-panel hearing was the first in a series. The
purpose was to examine the progress that has been made over the
past decade toward securing the border and to explore what
challenges remain to be addressed. The witnesses were asked to
discuss the amount of resources that our nation has devoted to
securing our borders, the results of those investments, as well
as how border security fits into our overall immigration
picture and the need for reforms. Additionally, they addressed
concerns over what metrics should be used to gauge
effectiveness at the border.
Witnesses: Hon. Doris Meissner, Senior Fellow and Director,
U.S. Immigration Policy Program, Migration Policy Institute;
Edward Alden, Bernard L. Schwartz Senior Fellow, Council on
Foreign Relations; and David A. Shirk, Ph.D., Director, Trans-
Border Institute, University of San Diego.
Hurricane Sandy: Getting the Recovery Right and the Value of
Mitigation. March 20, 2013. (S. Hrg. 113-435)
This single-panel hearing examined the ongoing recovery
from Hurricane Sandy. Testimony focused on how well Federal
officials are supporting and coordinating recovery efforts,
including through the Hurricane Sandy Rebuilding Task Force;
what Federal, state, and local officials are doing to ensure
that disaster funds are coordinated and well spent; and debris
removal efforts, which included a discussion of how it is being
handled in New Jersey and New York. Additionally, the witnesses
discussed the value of mitigation, including prior mitigation
efforts in areas affected in Hurricane Sandy, and the
importance of incorporating smart mitigation measures early
into the Hurricane Sandy rebuilding process.
Witnesses: Hon. W. Craig Fugate, Administrator, Federal
Emergency Management Agency, U.S. Department of Homeland
Security; Hon. Shaun L.S. Donovan, Secretary, U.S. Department
of Housing and Urban Development; and Hon. Jo-Ellen Darcy,
Assistant Secretary for Civil Works, U.S. Department of the
Army.
The Department of Homeland Security at 10 Years: A Progress Report on
Management. March 21, 2013. (S. Hrg. 113-296)
This two-panel hearing was the first in a series marking
the tenth anniversary of the Department of Homeland Security
(DHS). The purpose was to examine the progress that DHS has
made and the challenges that remain in improving the management
of the department. The committee heard from the witnesses on
the evolution of management in the department, the discussion
of DHS management in the 2013 ``High Risk'' report issued by
the Government Accountability Office (GAO), and the major
management challenges still facing the department.
Additionally, the witnesses provided their views on the
relationship between the department's homeland security
missions and its ability to execute the critical functions
identified by GAO, such as acquisitions, human capital,
information technology, and financial management.
Witnesses: Panel I: Hon. Jane Holl Lute, Deputy Secretary,
U.S. Department of Homeland Security; and Hon. Eugene L.
Dodaro, Comptroller General of the United States, U.S.
Government Accountability Office, accompanied by Cathleen A.
Berrick, Managing Director, Homeland Security and Justice
Issues. Panel II: Hon. Elaine C. Duke, Former Under Secretary
for Management of the U.S. Department of Homeland Security;
Hon. Richard L. Skinner, Former Inspector General of the U.S.
Department of Homeland Security; and Shawn Reese, Analyst in
Emergency Management and Homeland Security Policy,
Congressional Research Service, Library of Congress.
Nomination of the Honorable Sylvia M. Burwell to be Director, Office of
Management and Budget. April 9, 2013. (S. Hrg. 113-63)
This one-panel hearing considered the nomination of the
Honorable Sylvia M. Burwell to be Director, Office of
Management and Budget. The nominee was introduced by Sen. John
D. Rockefeller IV.
Border Security: Frontline Perspectives on Progress and Remaining
Challenges. April 10, 2013. (S. Hrg. 113-254)
This single-panel hearing was the second in a series. The
purpose was to examine the progress being made in securing the
border, how this progress can best be measured, and the
challenges we continue to face. The witnesses discussed how
their agencies' efforts to investigate immigration and customs
law violations have progressed and evolved over the past
decade, the challenges frontline personnel are facing today,
and how their offices measure progress and effectiveness.
Witnesses: Kevin K. McAleenan, Acting Deputy Commissioner,
U.S. Customs and Border Protection, U.S. Department of Homeland
Security; Michael J. Fisher, Chief, U.S. Border Patrol, U.S.
Customs and Border Protection, U.S. Department of Homeland
Security; Randolph D. Alles, Assistant Commissioner, Office of
Air and Marine, U.S. Customs and Border Protection, U.S.
Department of Homeland Security; and James A. Dinkins,
Executive Associate Director, Homeland Security Investigations,
U.S. Immigration and Customs Enforcement, U.S. Department of
Homeland Security.
The Homeland Security Department's Budget Submission for Fiscal Year
2014. April 17, 2013. (S. Hrg. 113-158)
The purpose of this annual, one-panel hearing was to
discuss the Department of Homeland Security (DHS) budget
request for Fiscal Year 2014. Specifically, it examined how the
DHS budget request meets the current and future homeland
security needs of the nation.
Witness: Hon. Janet A. Napolitano, Secretary, Department of
Homeland Security.
Border Security: Examining Provisions in the Border Security, Economic
Opportunity, and Immigration Modernization Act
(S. 744). May 7, 2013. (S. Hrg. 113-254)
This single-panel hearing was third in a series. The
purpose of this hearing was to analyze the enforcement
provisions of S. 744, the Border Security, Economic
Opportunity, and Immigration Modernization Act. The witnesses'
testimony focused on how different components of the Department
of Homeland Security would be affected by this legislation.
Witnesses: Hon. David F. Heyman, Assistant Secretary for
Policy, U.S. Department of Homeland Security; Kevin K.
McAleenan, Acting Deputy Commissioner, U.S. Customs and Border
Protection, U.S. Department of Homeland Security; Michael J.
Fisher, Chief, U.S. Border Patrol, U.S. Customs and Border
Protection, U.S. Department of Homeland Security; Daniel H.
Ragsdale, Deputy Director, U.S. Immigration and Customs
Enforcement, U.S. Department of Homeland Security; and Anne L.
Richards, Assistant Inspector General, Office of Audits Office
of Inspector General, U.S. Department of Homeland Security.
Curbing Federal Agency Waste and Fraud: New Steps to Strengthen the
Integrity of Federal Payments. May 8, 2013. (S. Hrg. 113-114)
The purpose of this single-panel hearing was to examine the
implementation of the Improper Payments Elimination and
Recovery Improvement Act (P.L. 112-248), passed last Congress,
which refined similar statutes addressing improper payments and
furthered the goals of detecting and preventing waste and
fraud. Additionally, the hearing explored potential next steps
for similar initiatives, such as improving the accuracy and
sharing of data to prevent improper payments to dead people.
Witnesses: Hon. Daniel I. Werfel, Controller, Office of
Federal Financial Management, Office of Management and Budget;
Hon. Patrick P. O'Carroll Jr., Inspector General, U.S. Social
Security Administration; Richard L. Gregg, Fiscal Assistant
Secretary, U.S. Department of the Treasury; Daniel Bertoni,
Director of Education, Workforce, and Income Security Issues,
U.S. Government Accountability Office; and Marianna LaCanfora,
Acting Deputy Commissioner for Retirement and Disability
Policy, U.S. Social Security Administration.
Nomination of Brian C. Deese to be Deputy Director, Office of
Management and Budget. May 13, 2013. (S. Hrg. 113-120)
This one-panel hearing considered the nomination of Brian
C. Deese to be Deputy Director, Office of Management and
Budget.
Nominations of Michael K. O'Keefe and Robert D. Okun to be Associate
Judges, Superior Court of the District of Columbia. May 15,
2013. (S. Hrg. 113-74)
This single-panel hearing considered the nominations of
Michael K. O'Keefe and Robert D. Okun to be Associate Judges,
Superior Court of the District of Columbia. Mr. O'Keefe and Mr.
Okun were introduced by Del. Eleanor Holmes Norton. Senator
Mark Begich, Chairman of the Subcommittee on Emergency
Management, Intergovernmental Relations, and the District of
Columbia, presided.
Performance Management and Congressional Oversight: 380 Recommendations
to Reduce Overlap and Duplication to Make Washington More
Efficient. May 22, 2013. (S. Hrg. 113-68)
This single-panel hearing examined the Government
Accountability Office's report titled ``2013 Annual Report to
Congress: Actions Needed to Reduce Fragmentation, Overlap, and
Duplication and Achieve Other Financial Benefits,'' which
highlighted areas of fragmentation, overlap, and duplication
throughout the Federal Government and made recommendations to
both Congress and the Executive Branch agencies to address
these problems. In addition to GAO's report, the hearing also
looked at tools Congress and agencies can use to address
fragmentation, overlap, and duplication, including
implementation of the Government Performance and Results
Modernization Act of 2010.
Witnesses: Hon. Gene L. Dodaro, Comptroller General of the
United States, U.S. Government Accountability Office,
accompanied by Cathleen A. Berrick, Managing Director, Homeland
Security and Justice Issues.
Reducing Duplication and Improving Outcomes in Federal Information
Technology. June 11, 2013. (S. Hrg. 113-97)
The purpose of this single-panel hearing was to examine the
Administration's efforts to identify and eliminate areas of
duplication and waste in Federal information technology (IT)
and the role of agency Chief Information Officers (CIOs) in
that process. The hearing also reviewed ongoing efforts to
consolidate data centers, empower agency CIOs, and strengthen
management of IT projects.
Witnesses: Steven L. VanRoekel, U.S. Chief Information
Officer, Office of Management and Budget; Simon Szykman, Chief
Information Officer, U.S. Department of Commerce; Frank
Baitman, Chief Information Officer, U.S. Department of Health
and Human Services; and David A. Powner, Director of
Information Technology Management Issues, U.S. Government
Accountability Office.
Nomination of Howard A. Shelanski to be the Administrator, Office of
Information and Regulatory Affairs, Office of Management and
Budget. June 12, 2013. (S. Hrg. 113-207)
This one-panel hearing considered the nomination of Howard
A. Shelanski to be the Administrator, Office of Information and
Regulatory Affairs, Office of Management and Budget.
Nomination of the Honorable Daniel M. Tangherlini to be the
Administrator, U.S. General Services Administration. June 18,
2013. (S. Hrg. 113-124)
This one-panel hearing considered the nomination of the
Honorable Daniel M. Tangherlini to be the Administrator, U.S.
General Services Administration.
Curbing Prescription Drug Abuse in Medicare. June 24, 2013. (S. Hrg.
113-244)
The purpose of the single-panel hearing was to examine
initiatives by the Administration to reduce the fraudulent
diversion of prescription drugs from the Medicare program, as
well as additional opportunities to improve oversight. The
hearing also looked at opportunities for stronger coordination
among Federal agencies, private sector entities, and others.
Witnesses: Joseph T. Rannazzisi, Deputy Assistant
Administrator, Office of Diversion Control, Drug Enforcement
Administration, U.S. Department of Justice; Jonathan Blum,
Acting Principal Deputy Administrator and Director of the
Center for Medicare, Centers for Medicare and Medicaid
Services, U.S. Department of Health and Human Services; Gary L.
Cantrell, Deputy Inspector General for Investigations, Office
of Inspector General, U.S. Department of Health and Human
Services; Stuart E. Wright, Deputy Inspector General for
Evaluation and Inspections, Office of Inspector General, U.S.
Department of Health and Human Services; and Alanna Lavelle,
Director of Special Investigations, WellPoint, Inc.
Nomination of John H. Thompson to be Director of the Census, U.S.
Department of Commerce. July 9, 2013. (S. Hrg. 113-251)
This one-panel hearing considered the nomination of John H.
Thompson to be Director of the Census, U.S. Department of
Commerce. The nominee was introduced by Sen. Richard J. Durbin.
Lessons Learned from the Boston Marathon Bombings: Preparing for and
Responding to the Attack. July 10, 2013. (S. Hrg. 113-226)
This one-panel hearing examined the preparedness for and
response to the April 15th Boston Marathon attack. In
particular the hearing looked at steps that Federal, state, and
local officials took to prepare for terrorist attacks and what
lessons could be learned from that response. Witnesses agreed
that the city of Boston was well-prepared for the attack and
that the response was excellent. However, they noted that more
attention must be paid to helping the city cope with the long
term recovery efforts that follow a disaster.
Witnesses: The Honorable Richard Serino, Deputy
Administrator, Federal Emergency Management Agency, U.S.
Department of Homeland Security; Kurt N. Schwartz,
Undersecretary for Homeland Security and Emergency Management,
Executive Office of Public Safety and Security, The
Commonwealth of Massachusetts; Edward F. Davis III,
Commissioner, Boston Police Department, City of Boston; and
Arthur L. Kellermann, M.D., Paul O'Neill Alcoa Chair in Policy
Analysis, RAND Corporation.
Strategic Sourcing: Leveraging the Government's Buying Power to Save
Billions. July 15, 2013. (S. Hrg. 113-208)
This one panel hearing examined efforts to expand strategic
sourcing for goods and services throughout the Federal
Government. Specifically, the witnesses discussed the primary
benefits of strategic sourcing, the precise plans for future
strategic sourcing vehicles, and performance metrics that are
to be used to judge the success of the program. Witnesses also
shared their views on impediments to agency use of strategic
sourcing contracts, as well as lessons that the government
could draw from the private sector on strategic sourcing.
Witnesses: Hon. Joseph G. Jordan, Administrator, Office of
Federal Procurement Policy, Office of Management and Budget;
Hon. Daniel M. Tangherlini, Administrator, U.S. General
Services Administration; and Cristina T. Chaplain, Director,
Acquisition and Sourcing Management, U.S. Government
Accountability Office.
Nomination of Katherine Archuleta to be Director, Office of Personnel
Management. July 16, 2013. (S. Hrg. 113-297)
This one-panel hearing considered the nomination Katherine
Archuleta to be Director, Office of Personnel Management. The
nominee was introduced by Sen. Mark Udall. Senator Jon Tester,
Chairman of the Subcommittee on Efficiency and Effectiveness of
Federal Programs and Federal Workforce, presided.
The Department of Homeland Security at 10 Years: Harnessing Science and
Technology to Protect National Security and Enhance Government
Efficiency. July 17, 2013. (S. Hrg. 113-296)
This one-panel hearing was the second in a series marking
the tenth anniversary of the Department of Homeland Security
(DHS). The hearing examined the role of the Science and
Technology Directorate at the Department of Homeland Security
and how the role has evolved over the past ten years. Witnesses
addressed the Directorate's current duties, how these duties
have changed over time, and how they believe the Directorate
assists DHS and its components in carrying out their missions
more efficiently and effectively. Additionally, witnesses
discussed the Directorate's decision-making process in
conducting research and development.
Witnesses: Hon. Tara J. O'Toole, Under Secretary for
Science and Technology, U.S. Department of Homeland Security
and David C. Maurer, Director, Homeland Security and Justice
Issues, U.S. Government Accountability Office.
The 90/10 Rule: Improving Educational Outcomes for our Military and
Veterans. July 23, 2013. (S. Hrg. 113-206)
This one-panel hearing examined practices put in place by
the Veterans Administration to safeguard veteran and military
students from questionable practices by some institutions of
higher education. The hearing also assessed the current
incentive structure for some propriety schools to enroll this
student population and identified current initiatives to
collect and make available data on educational outcomes.
Witnesses: Curtis L. Coy, Deputy Under Secretary for
Economic Opportunity, Veterans Benefits Administration, U.S.
Department of Veterans Affairs; Hollister K. Petraeus,
Assistant Director, Office of Servicemember Affairs, Consumer
Financial Protection Bureau; Hon. Steven C. Gunderson,
President and Chief Executive Officer, Association of Private
Sector Colleges and Universities; Tom Tarantino, Chief Policy
Officer, Iraq and Afghanistan Veterans of America; Sergeant
Christopher J. Pantzke, USA, (Ret.), Veteran.
Nomination of the Honorable Alejandro N. Mayorkas to be Deputy
Secretary, U.S. Department of Homeland Security. July 25, 2013.
(S. Hrg. 113-404)
This one-panel hearing considered the nomination of the
Honorable Alejandro N. Mayorkas to be Deputy Secretary, U.S.
Department of Homeland Security. The nominee was introduced by
Senator Dianne Feinstein.
The Department of Homeland Security at 10 Years: Examining Challenges
and Achievements and Addressing Emerging Threats. September 11,
2013. (S. Hrg. 113-296)
This one-panel hearing was the third in a series marking
the tenth anniversary of the Department of Homeland Security
(DHS). The hearing examined the achievements the Department has
made, the challenges it has had to address, and the emerging
issues and threats the Department should focus on in the
future. Witnesses discussed cybersecurity and options for DHS
to enhance resilience to disasters and counter evolving terror
threats.
Witnesses: Hon. Thomas J. Ridge, Former Secretary of
Homeland Security; Hon. Jane Harman, Former Member of the U.S.
House of Representatives from the State of California; Admiral
Thad W. Allen, USCG, Retired, Former Commandant of the U.S.
Coast Guard; and Hon. Stewart A. Baker, Former Assistant
Secretary for Policy at the Department of Homeland Security.
Nominations of Stevan E. Bunnell to be General Counsel, U.S. Department
of Homeland Security, and Suzanne E. Spaulding to be Under
Secretary (for National Protection and Programs), U.S.
Department of Homeland Security. September 18, 2013. (S. Hrg.
113-142)
This one-panel hearing considered the nominations of Stevan
E. Bunnell to be General Counsel, U.S. Department of Homeland
Security, and Suzanne E. Spaulding to be Under Secretary (for
National Protection and Programs), U.S. Department of Homeland
Security. Mr. Bunnell was introduced by the Honorable Kenneth
L. Wainstein and Ms. Spaulding was introduced by Senators Mark
R. Warner and Tim Kaine.
Outside the Box: Reforming and Renewing the Postal Service, Part 1--
Maintaining Services, Reducing Costs, and Increasing Revenue
Through Innovation and Modernization. September 19, 2013. (S.
Hrg. 113-405)
The purpose of this two-panel hearing was to explore how
the Postal Service can be renewed and reformed to thrive in an
era when Americans increasingly relying on digital
communications. It included an examination of solutions
proposed in S. 1486, the Postal Reform Act of 2013. This
hearing was the first of two the Committee will hold on this
topic. Witnesses provided their views on postal services,
including delivery schedules, delivery standards, and post
office services; possible changes in the postal ratemaking
system; and innovation at the Postal Service, including the
potential offering of new and innovative products and services.
Witnesses: Panel I: Hon. Patrick R. Donahoe, Postmaster
General and Chief Executive Officer, U.S. Postal Service; Hon.
Ruth Y. Goldway, Chairman, Postal Regulatory Commission; Hon.
David C. Williams, Inspector General, U.S. Postal Service.
Panel II: Cliff Guffey, President, American Postal Workers
Union; Jeanette P. Dwyer, President, National Rural Letter
Carriers' Association; John Beeder, President and Chief
Operating Officer, American Greetings Corporation; Jerry
Cerasale, Senior Vice President, Government Affairs, Direct
Marketing Association, Inc.; and Seth Weisberg, Chief Legal
Officer, Stamps.com.
Combating Human Trafficking: Federal, State, and Local Perspectives.
September 23, 2013. (S. Hrg. 113-455)
The purpose of this two-panel hearing was to raise
awareness about domestic human trafficking, and examine efforts
to coordinate Federal, state, tribal and local efforts to
combat human trafficking within the United States. Witnesses
discussed the incidence of human trafficking within the U.S.
and their respective communities, causes of human trafficking,
as well as existing Federal, state, and local strategies to
combat it. Additionally, witnesses offered strategies for
increasing national awareness of human trafficking, and
opportunities for increased collaboration between Federal,
state, tribal and local authorities.
Witnesses: Panel I: Hon. Alice C. Hill, Chair, Blue
Campaign, U.S. Department of Homeland Security; James A.
Dinkins, Executive Associate Director, Homeland Security
Investigations, U.S. Immigration and Customs Enforcement, U.S.
Department of Homeland Security; Anne Gannon, National
Coordinator for Child Exploitation Prevention and Interdiction,
Office of the Deputy Attorney General, U.S. Department of
Justice; Joseph S. Campbell, Deputy Assistant Director,
Criminal Investigative Division, Federal Bureau of
Investigation, U.S Department of Justice. Panel II: John J.
Farmer, Jr., Senior Vice President and University Counsel,
Rutgers, The State University of New Jersey; Suzanne
Koepplinger, Executive Director, Minnesota Indian Women's
Resource Center; Lisa Brunner, Program Specialist, National
Indigenous Women's Resource Center; Daniel Papa, Director,
Project Stay Gold.
Nominations of Hon. Carol W. Pope, Hon. Ernest W. DuBester, and Patrick
Pizzella to be Members, Federal Labor Relations Authority.
September 25, 2013. (S. Hrg. 113-430)
This one-panel hearing considered the nominations of Hon.
Carol W. Pope, Hon. Ernest W. Dubester, and Patrick Pizzella to
be Members of the Federal Labor Relations Authority. The Hon.
Carol W. Pope was introduced by Delegate Eleanor Holmes Norton.
Senator Jon Tester, Chairman of the Subcommittee on Efficiency
and Effectiveness of Federal Programs and Federal Workforce,
presided.
Outside the Box: Reforming and Renewing the Postal Service, Part II--
Promoting a 21st Century Workforce. September 26, 2013. (S.
Hrg. 113-405)
The purpose of this two-panel hearing was to explore how
the Postal Service can be renewed and reformed to thrive in an
era when Americans increasingly relying on digital
communications. It included an examination of solutions
proposed in S. 1486, the Postal Reform Act of 2013. This
hearing was the second of two the Committee held on this topic.
Witnesses provided their views on issues related to the postal
workforce, including matters related to health care and
pensions for postal workers; the manner in which the Postal
Service calculates and funds such obligations; and the evolving
role of postal workers in the digital age.
Witnesses: Panel I: Hon. Patrick R. Donahoe, Postmaster
General and Chief Executive Officer, U.S. Postal Service;
Jonathan Foley, Director, Planning and Policy Analysis, U.S.
Office of Personnel Management; Frank Todisco, Chief Actuary,
U.S. Government Accountability Office; John E. Dicken,
Director, Health Care, U.S. Government Accountability Office.
Panel II: Frederic V. Rolando, President, National Association
of Letter Carriers, AFL-CIO; John F. Hegarty, National
President, National Postal Mail Handlers Union; Robert J.
Rapoza, President, National Association of Postmasters of the
United States; Douglas J. Holtz-Eakin, Ph.D., President,
American Action Forum; Dean Baker, Ph.D., Co-Director, Center
for Economic and Policy Research.
Nomination of Beth F. Cobert to be Deputy Director for Management,
Office of Management and Budget. October 2, 2013. (S. Hrg. 113-
333)
This one-panel hearing considered the nomination of Beth F.
Cobert to be Deputy Director for Management, Office of
Management and Budget.
Nominations of the Hon. Tony Hammond and the Hon. Nanci E. Langley to
be Commissioners, Postal Regulatory Commission. October 2,
2013. (S. Hrg. 113-429)
This one-panel hearing considered the nominations of the
Honorable Tony Hammond and the Honorable Nanci E. Langley to be
Commissioners, Postal Regulatory Commission. Mr. Hammond was
introduced by Sen. Roy Blunt.
Nomination of William W. Nooter to be an Associate Judge, Superior
Court of the District of Columbia. October 8, 2013. (S. Hrg.
113-237)
This one-panel hearing considered the nomination of William
W. Nooter to be an Associate Judge, Superior Court of the
District of Columbia. The nominee was introduced by Delegate
Eleanor Holmes Norton. Senator Mark Begich, Chairman of the
Subcommittee on Emergency Management, Intergovernmental
Relations, and the District of Columbia, presided.
Nomination of the Honorable Jeh C. Johnson to be Secretary, U.S.
Department of Homeland Security. October 13, 2013. (S. Hrg.
113-427)
This one-panel hearing considered the nomination of Hon.
Jeh C. Johnson to be Secretary, U.S. Department of Homeland
Security. The nominee was introduced by Sen. Robert Menendez
and Sen. Cory Booker.
Threats to the Homeland. November 14, 2013. (S. Hrg. 113-426)
This one-panel hearing assessed the major threats to our
homeland as well as the status of U.S. defenses against these
threats. Witness testimony focused on the current status of
homeland threats such as terrorism threats, cyber threats,
transnational organized crime, homegrown violent extremism, and
lone wolf offenders. The hearing reflected on how these threats
have evolved since the committee's 2012 threat hearing and also
highlighted the major initiatives carried out by DHS, the FBI,
and the NCTC in response to these threats.
Witnesses: Hon. Rand Beers, Acting Secretary, U.S.
Department of Homeland Security; Hon. James B. Comey, Jr.,
Director, Federal Bureau of Investigation, U.S. Department of
Justice; Hon. Matthew G. Olsen, Director, National
Counterterrorism Center, Office of the Director of National
Intelligence.
Beyond Silk Road: Potential Risks, Threats, and Promises of Virtual
Currencies. November 18, 2013. (S. Hrg. 113-516)
This two-panel hearing explored the threats, risks, and
promises related to virtual currency for the Federal Government
and society at large. The hearing focused on how Federal
departments and agencies are defining virtual currencies, the
unique challenges virtual currencies present for law
enforcement, and the approach by Federal regulatory agencies to
coordinate efforts to deal with this emerging technology.
Witnesses discussed the extent to which virtual currencies are
being used in organized crime, terrorist organizations, or
large scale money laundering activities, but also presented
examples of opportunities and advantages that virtual
currencies can provide. Witness provided the committee with
their assessment of probable future trends in virtual
currencies, and potential policy consideration for Congress and
other policymakers.
Witnesses: Panel I: Jennifer Shasky Calvery, Director,
Financial Crimes Enforcement Network, U.S Department of the
Treasury; Mythili Raman, Acting Assistant Attorney General,
Criminal Division, U.S. Department of Justice; Edward W. Lowery
III, Special Agent in Charge, Criminal Investigative Division,
U.S. Secret Service, U.S. Department of Homeland Security.
Panel II: Ernie Allen, President and Chief Executive Officer,
The International Centre for Missing & Exploited Children;
Patrick Murck, General Counsel, The Bitcoin Foundation, Inc.;
Jeremy Allaire, Chief Executive Officer, Circle Internet
Financial, Inc.; Jerry Brito, Senior Research Fellow, The
Mercatus Center, George Mason University.
The Navy Yard Tragedy: Examining Physical Security for Federal
Facilities. December 17, 2013. (S. Hrg. 113-425)
This two-panel hearing was the second of two the Committee
held on the Navy Yard tragedy. This hearing examined
governmental efforts to physically secure Federal facilities in
light of the Washington Navy Yard attack. Witness testimony
focused on Federal practices to identify, prioritize, and
mitigate threats against Federal facilities; collaboration
amongst Federal agencies; and what modifications for security
at Federal facilities have been or need to be implemented
following the attack at the Washington Navy Yard. Members and
witnesses agreed that to increase physical security for Federal
facilities there needs to be greater coordination among Federal
agencies, open GAO recommendations need to be implemented, and
employees need further training and clarification regarding
what to do in an active shooter situation.
Witnesses: Panel I: Caitlin A. Durkovich, Acting Secretary
for Infrastructure Protection, National Protection and Programs
Directorate, U.S. Department of Homeland Security; L. Eric
Patterson, Director, Federal Protective Service, U.S.
Department of Homeland Security; Stephen Lewis, Deputy Director
for Personnel, Industrial and Physical Security Policy,
Directorate of Security Policy & Oversight, Office of Under
Secretary of Defense for Intelligence, U.S. Department of
Defense. Panel II: Mark L. Goldstein, Director, Physical
Infrastructure Issues, U.S. Government Accountability Office;
Stephen D. Amitay, Executive Director, National Association of
Security Companies; David L. Wright, President, Federal
Protective Service Union, American Federal of Government
Employees.
Nomination of John Roth to be the Inspector General, U.S. Department of
Homeland Security. January 8, 2014. (S. Hrg. 113-436)
This one-panel hearing considered the nomination of John
Roth to be the Inspector General, U.S. Department of Homeland
Security.
Examining Conference and Travel Spending Across the Federal Government.
January 14, 2014. (S. Hrg. 113-431)
The purpose of this two-panel hearing was for GSA to
provide an update on its conference and travel policies, to
examine the government-wide policies that OMB has put in place
related to conference and travel spending by Federal agencies,
and for a selection of IGs to report on the current conference
and travel policies of Federal agencies. Additionally, the
hearing explored recommendations for controlling conference and
travel spending in the future, such as using videoconferencing
tools or scheduling back-to-back sessions for decreased travel
costs.
Witnesses: Panel I: Hon. Beth F. Cobert, Deputy Director
for Management, Office of Management and Budget; Hon. Daniel M.
Tangherlini, Administrator, U.S. General Services
Administration. Panel II: Hon. Michael E. Horowitz, Inspector
General, U.S. Department of Justice; Hon. Brian D. Miller,
Inspector General, U.S. General Services Administration; Hon.
J. Russell George, Inspector General for Tax Administration,
U.S. Department of the Treasury.
Extreme Weather Events: The Costs of Not Being Prepared. February 12,
2014. (S. Hrg. 113-000)
The purpose of this two-panel hearing was to look at the
costs of not being prepared for extreme weather events and
explore ways the Federal Government can help make our
communities more resilient and save money in the long run.
Witnesses discussed the need for increased efforts to mitigate
risks before extreme weather hits, investing in resilient
infrastructure, and possibly incentivizing communities that are
well prepared.
Witnesses: Panel I: Hon. David F. Heyman, Assistant
Secretary for Policy, U.S. Department of Homeland Security;
Caitlin A. Durkovich, Assistant Secretary for Infrastructure
Protection, National Protection and Programs Directorate, U.S.
Department of Homeland Security; Mark E. Gaffigan, Managing
Director, Natural Resources and Environment Issues, U.S.
Government Accountability Office. Panel II: Collin P. O'Mara,
Secretary, Delaware Department of Natural Resources and
Environmental Control; Paul Kirshen, Ph.D., Research Professor,
Environmental Research Group, Civil Engineering Department &
Institute for the Study of Earth, Oceans, and Space, University
of New Hampshire; Lindene E. Patton, Chief Climate Product
Officer, Zurich Insurance Group, Ltd.
Recycling Electronics: A Common Sense Solution for Enhancing Government
Efficiency and Protecting Our Environment. February 27, 2014.
(S. Hrg. 113-000)
The purpose of this one-panel hearing was to explore how
electronics recycling not only helps to preserve our
environment, but also contributes to job creation and economic
development. Witnesses discussed strategies for improving and
increasing electronics recycling in the Federal Government and
across the country.
Witnesses: Kevin Kampschroer, Director, Office of Federal
High-Performance Green Buildings, Office of Governmentwide
Policy, U.S. General Services Administration; Thomas G. Day,
Chief Sustainability Office, U.S. Postal Service; Brenda
Pulley, Senior Vice President of Recycling, Keep America
Beautiful; Walter L. Alcorn, Vice President, Environmental
Affairs and Industry Sustainability, Consumer Electronics
Association; Stephen Skurnac, President, Sims Recycling
Solutions, Inc.
Nominations of L. Reginald Brothers, Jr. to be Under Secretary for
Science and Technology, U.S. Department of Homeland Security
and the Honorable Francis X. Taylor to be Under Secretary for
Intelligence and Analysis, U.S. Department of Homeland
Security. March 5, 2014. (S. Hrg. 113-441)
This one-panel hearing considered the nominations of L.
Reginald Brothers, Jr. to be Under Secretary for Science and
Technology, U.S. Department of Homeland Security and the
Honorable Francis X. Taylor to be Under Secretary for
Intelligence and Analysis, U.S. Department of Homeland
Security.
Management Matters: Creating a 21st Century Government. March 12, 2014.
(S. Hrg. 113-418)
The purpose of the single-panel hearing was to review the
Administration's management initiatives, with a focus on
priorities for the remainder of the second term. Witnesses
provided an update on the President's second term management
agenda as well as a description of management initiatives in
the President's proposed Fiscal Year 2015 budget. Testimony
addressed management challenges through implementation of the
Government Performance and Results Modernization Act of 2010,
including the issuance of new Cross Agency Priority Goals,
individual agency priority goals, and agency strategic plans.
Witnesses: Hon. Beth F. Cobert, Deputy Director for
Management, Office of Management and Budget; Hon. Daniel M.
Tangherlini, Administrator, U.S. General Services
Administration; Hon. Eugene L. Dodaro, Comptroller General of
the United States, U.S. Government Accountability Office.
The Homeland Security Department's Budget Submission for Fiscal Year
2015. March 13, 2014. (S. Hrg. 113-000)
The purpose of this annual, one-panel hearing was to
discuss the Department of Homeland Security (DHS) budget
request for Fiscal Year 2015. Specifically, it examined how the
DHS budget request meets the current and future homeland
security needs of the nation.
Witness: Hon. Jeh C. Johnson, Secretary, Department of
Homeland Security.
Strengthening Public-Private Partnerships to Reduce Cyber Risks to our
Nation's Critical Infrastructure. March 26, 2014. (S. Hrg. 113-
000)
The purpose of this two-panel hearing was to examine the
cybersecurity partnerships among the Federal Government,
states, and the private sector to secure critical
infrastructure, including the Cybersecurity Framework and other
provisions outlined in the Executive Order issued by President
Obama on February 12, 2013. Witnesses described cyber
vulnerabilities and threats to critical infrastructure and
efforts to increase the security and resiliency of such
networks and assets. Additionally, the hearing explored ways in
which Federal and State governments can partner with the
private sector to address cyber threats and vulnerabilities.
Witnesses: Panel I: Phyllis A. Schneck, Ph.D., Deputy Under
Secretary for Cybersecurity, National Protection and Programs
Directorate, U.S. Department of Homeland Security; Donna
Dodson, Chief Cybersecurity Advisor, National Institute of
Standards and Technology, U.S. Department of Commerce; Stephen
L. Caldwell, Director, Homeland Security and Justice Issues,
U.S. Government Accountability Office (accompanied by Gregory
C. Wilshusen, Director, Information Security Issues, U.S.
Government Accountability Office). Panel II: Elayne Starkey,
Chief Security Officer, Delaware Department of Technology and
Information; David M. Velazquez, Executive Vice President for
Power Delivery, Pepco Holdings, Inc.; Doug Johnson, Vice
Chairman, Financial Services Sector Coordinating Council;
Steven R. Chabinsky, Chief Risk Officer, CrowdStrike, Inc.
(testifying in his personal capacity).
Nominations of Sherry M. Trafford and Steven M. Wellner to be Associate
Judges, Superior Court of the District of Columbia. March 27,
2014. (S. Hrg. 113-442)
This one-panel hearing considered the nominations of Sherry
M. Trafford and Steven M. Wellner to be Associate Judges,
Superior Court of the District of Columbia. The nominees were
introduced by Delegate Eleanor Holmes Norton. Senator Mark
Begich, Chairman of the Subcommittee on Emergency Management,
Intergovernmental Relations, and the District of Columbia,
presided.
Management Matters: Creating a 21st Century Government--Part II,
Outside Views. March 31, 2014. (S. Hrg. 113-418)
The purpose of the single-panel hearing was to help
identify priorities for improving the management of the Federal
Government. Witnesses provided their views on goals that the
Administration and Congress should set for short- and long-term
management initiatives, as well as suggestions to improve the
delivery of government services. Additionally, witnesses
offered their views on how the Administration is addressing
management challenges through implementation of the Government
Performance and Results Modernization Act of 2010, including
the issuance of new Cross Agency Priority Goals, individual
agency priority goals, and agency strategic plans.
Witnesses: Max Stier, President and Chief Executive
Officers, Partnership for Public Service; Shelley H.
Metzenbaum, Ph.D., President, The Volcker Alliance; Robert
Johnston Shea, Principal, Global Public Sector, Grant Thorton
LLP; Tom Lee, Director, Sunlight Labs, The Sunlight Foundation.
Data Breach on the Rise: Protecting Personal Information From Harm.
April 2, 2014. (S. Hrg. 113-000)
The purpose of this two-panel hearing was to examine data
breaches, including those at Target and Neiman Marcus, and the
efforts that industry and government are taking to address this
growing challenge. Witnesses discussed what needs to be done to
address this ever growing problem, including the steps being
taken to prevent and investigate such breaches, as well as
efforts taken to better inform and notify consumers after a
breach. Additionally, witnesses offered their thoughts on S.
1927 and other legislative proposals they believed may be
necessary to better address data breaches.
Witnesses: Panel I: Hon. Edith Ramirez, Chairwoman, Federal
Trade Commission; William Noonan, Deputy Special Agent in
Charge, Criminal Investigative Division, Cyber Operations
Branch, U.S. Secret Service, U.S. Department of Homeland
Security; Gregory C. Wilshusen, Director, Information Security
Issues, U.S. Government Accountability Office. Panel II: Hon.
Tim Pawlenty, Chief Executive Officer, Financial Services
Roundtable; Sandra L. Kennedy, President, Retail Industry
Leaders Association; Tiffany O. Jones, Senior Vice President
and Chief Revenue Officer, iSIGHT Partners, Inc.
Nomination of Julia A. Clark to be General Counsel, Federal Labor
Relations Authority. April 29, 2014. (S. Hrg. 113-443)
This one-panel hearing considered the nomination of Julia
A. Clark to be General Counsel, Federal Labor Relations
Authority. Senator Jon Tester, Chairman of the Subcommittee on
the Efficiency and Effectiveness of Federal Programs and the
Federal Workforce, presided.
Lessons Learned from the Boston Marathon Bombings: Improving
Intelligence and Information Sharing. April 30, 2014. (S. Hrg.
113-444)
This one-panel hearing examined the systems and processes
for sharing intelligence and information regarding the Boston
bombers and their actions leading up to the attack on April 15,
2013. Specifically, the hearing focused on the joint work by
the Inspectors General for the Intelligence Community, the
Department of Homeland Security, the Department of Justice, and
the Central Intelligence Agency, to determine the extent of
information available to the U.S. Government prior to the
bombings, where the sharing of information was complete,
accurate, and in compliance with government's ability to detect
potential threats to national security. Witnesses discussed the
findings and recommendations contained in the recent report
issued by the Inspectors General, as well as additional steps
needed to improve intelligence and information sharing
processes. Following the open session, the committee continued
the hearing in a classified session.
Witnesses: Hon. I. Charles McCullough III, Inspector
General of the Intelligence Community, Office of the Director
of National Intelligence; Hon. John Roth, Inspector General,
U.S. Department of Homeland Security; Hon. Michael E. Horowitz,
Inspector General, U.S. Department of Justice; Hon. David B.
Buckley, Inspector General, Central Intelligence Agency.
Identifying Critical Factors for Success in Information Technology
Acquisitions. May 8, 2014. (S. Hrg. 113-000)
The purpose of this two-panel hearing was to examine the
best practices and critical factors that lead to the successful
acquisition of information technology (IT) investments.
Witnesses discussed the challenges both government and industry
organizations face in implementing IT systems, the similarities
and differences between government and industry in this area,
and lessons the Federal Government can learn from how industry
implements IT.
Witnesses: Panel I: Hon. Daniel M. Tangherlini,
Administrator, U.S. General Services Administration; Steven L.
Vanroekel, U.S. Chief Information Officer, Office of Management
and Budget; David A. Powner, Director of Information Technology
Management Issues, U.S. Government Accountability Office. Panel
II: Daniel J. Chenok, Executive Vice Chair, Industry Advisory
Council, American Council for Technology and Industry Advisory
Council; Karen S. Evans, Partner, KE&T Partners, LLC.
Improving Financial Management at the Department of Defense. May 13,
2014. (S. Hrg. 113-000)
The purpose of this two-panel hearing was to examine the
Department of Defense (DOD) plans and challenges for improving
Department-wide financial management. Congress established a
requirement for the DOD to become financially ``audit ready''
by 2017. However, past hearings and studies brought into
question whether the DOD, and the military services and
agencies, will meet this deadline, as well as achieve other
financial improvement goals. Witnesses discussed the
consequence to the Department and its missions for inadequate
financial management.
Witnesses: Panel I: Hon. Robert F. Hale, Under Secretary
(Comptroller) and Chief Financial Officer, Office of the Under
Secretary of Defense (Comptroller), U.S. Department of Defense;
Robert M. Speer, Acting Assistant Secretary of the Army
(Financial Management and Comptroller), U.S. Department of the
Army; Hon. Susan J. Rabern, Ph.D., Assistant Secretary of the
Navy (Financial Management and Comptroller), U.S. Department of
the Navy; Hon. Jamie M. Morin, Ph.D., Assistant Secretary of
the Air Force (Financial Management and Comptroller), U.S.
Department of the Air Force. Panel II: Hon. Jon T. Rymer,
Inspector General, U.S. Department of Defense; Asif Khan,
Director, Financial Management and Assurance, U.S. Government
Accountability Office.
Charting a Path Forward for the Chemical Facilities Anti-Terrorism
Standards Program. May 14, 2014. (S. Hrg. 113-000)
The purpose of this two-panel hearing was to examine the
Department of Homeland Security's Chemical Facility Anti-
Terrorism Standards (CFATS) program and the progress that has
been made in working with more than 4,000 high-risk chemical
facilities to reduce the risk of terrorism or sabotage against
those facilities. Witness testimony focused on previous
enhancements to the program made by the Department, how the
Department could accelerate efforts to review security plans
and conduct compliance inspections, and what additional actions
could be taken to improve management of the CFATS program,
including providing a long term legislative reauthorization of
the program.
Witnesses: Panel I: Hon. Suzanne E. Spaulding, Under
Secretary, National Protection and Programs Directorate, U.S.
Department of Homeland Security; David M. Wulf, Director,
Infrastructure Security Compliance Division, Office of
Infrastructure Protection, National Protection and Programs
Directorate, U.S. Department of Homeland Security; Stephen L.
Caldwell, Director, Homeland Security and Justice Issues, U.S.
Government Accountability Office. Panel II: Dana A. Shea,
Ph.D., Specialist in Science and Technology Policy,
Congressional Research Service, Library of Congress; Anna
Fendley, MPH, Legislative Representative, United Steelworkers;
Timothy J. Scott, Chief Security Officer, The Dow Chemical
Company, Appearing on behalf of Dow and the American Chemistry
Council.
Evaluating Port Security: Progress Made and Challenges Ahead. June 4,
2014. (S. Hrg. 113-000)
The purpose of this one-panel hearing was to examine the
Department of Homeland Security's (DHS) progress in securing
the nation's ports and waterways, protecting global supply
chains that make use of U.S. ports, and in implementing the
SAFE Port Act, while continuing to facilitate the flow of
essential trade and transportation. Witness testimony focused
on the actions taken by DHS to physically secure U.S. ports and
waterways from a variety of threats, including nuclear threats;
how DHS works with state and local authorities and private
sector stakeholders to improve maritime security, including
through the use of grants; and what progress has been made in
securing global supply chains in cooperation with international
authorities and private sector stakeholders.
Witnesses: Panel I: Ellen McCain; Deputy Assistant
Secretary for Transborder Policy, Office of Policy, U.S.
Department of Homeland Security; Rear Admiral Paul F. Thomas,
USCG, Assistant Commandant for Prevention Policy, U.S. Coast
Guard, U.S. Department of Homeland Security; Kevin K.
McAleenan, Acting Deputy Commissioner, U.S. Customs and Border
Protection, U.S. Department of Homeland Security; Brian E.
Kamoie, Assistant Administrator for Grant Programs, Federal
Emergency Management Agency, U.S. Department of Homeland
Security; Stephen Sadler, Assistant Administrator for
Intelligence and Analysis, Transportation Security
Administration, U.S. Department of Homeland Security; Stephen
L. Caldwell, Director, Homeland Security and Justice Issues,
U.S. Government Accountability Office.
Border Security: Examining the Implications of S. 1691, the Border
Patrol Pay Reform Act of 2013. June 9, 2014. (S. Hrg. 113-000)
The purpose of this one-panel hearing was to examine the
implications of S. 1691, the Border Patrol Agent Pay Reform Act
of 2013. Witness testimony focused on the impact this bill
would have on Customs and Border Protection's ability to secure
the border, manage its workforce, and make the most effective
use of taxpayer resources.
Witnesses: Panel I: Ronald D. Vitiello, Deputy Chief, U.S.
Border Patrol, U.S. Customs and Border Protection, U.S.
Department of Homeland Security; Brandon Judd, President,
National Border Patrol Council; Paul L. Hamrick, Deputy
Assistant Commissioner, Office of Internal Affairs, U.S.
Customs and Border Protection, U.S. Department of Homeland
Security; Adam Miles, Deputy Special Counsel for Policy and
Congressional Affairs, U.S. Office of Special Counsel.
Nomination of the Hon. Shaun L. S. Donovan to be Director, Office of
Management and Budget. June 11, 2014. (S. Hrg. 113-000)
This one-panel hearing considered the nomination of the
Honorable Shaun L. S. Donovan to be Director, Office of
Management and Budget. The nominee was introduced by Sen. Mary
L. Landrieu and Sen. Susan M. Collins.
Securing Radiological Materials: Examining the Threat Next Door. June
12, 2014. (S. Hrg. 113-000)
The purpose of this one-panel hearing was to examine the
threat to the nation posed by terrorists seeking to detonate
explosives designed to disperse radiological material or
``dirty bombs'' within the U.S.'s borders. Building upon a 2012
Subcommittee on Oversight of Government Management
investigation into the security of radiological material in
medical facilities that could be used to construct a dirty
bomb, this hearing analyzed the adequacy of the security
measures for radiological sources used in industrial and
commercial applications. Witness testimony focused on the role
of various government agencies in safeguarding industrial
radiological sources from terrorist theft or sabotage.
Witnesses: Panel I: Hon. Anne Harrington, Deputy
Administrator for Defense Nuclear Nonproliferation, National
Nuclear Security Administration; Huban A. Gowadia, Ph.D.,
Director, Domestic Nuclear Detection Office, U.S. Department of
Homeland Security; Mark Satorius, Executive Director for
Operations, U.S. Nuclear Regulatory Commission; David Trimble,
Director, Natural Resources and Environment, U.S. Government
Accountability Office.
The Intelligence Community: Keeping Watch Over its Contractor
Workforce. June 18, 2014. (S. Hrg. 113-000)
The purpose of this one-panel hearing was to examine the
issues raised by the report of the Government Accountability
Office (GAO) entitled ``Civilian Intelligence Community:
Additional Actions Needed to Improve Reporting on and Planning
for the Use of Contract Personnel'' (GAO-14-204). Witness
testimony addressed overall trends in the use of contractor
personnel for core functions, and efforts by the civilian
intelligence community (IC) to inventory core contract
personnel. Witnesses also discussed challenges associated with
compiling the inventory and plans to improve accuracy,
consistency, and comparability of the surveys across the
civilian IC. Following the open session, the committee
continued the hearing in a classified session.
Witnesses: Panel I: Hon. Stephanie O'Sullivan, Principal
Deputy Director, Office of the Director of National
Intelligence; Timothy J. DiNapoli, Director, Acquisition and
Sourcing Management, U.S. Government Accountability Office.
Challenges at the Border: Examining the Causes, Consequences, and
Response to the Rise in Apprehensions at the Southern Border.
July 9, 2014. (S. Hrg. 113-000)
The purpose of this one-panel hearing was to examine the
current situation along our southern border with Mexico. This
was the first of two hearings the Committee will hold on this
topic. Witness testimony focused on the impact that the
increasing number of individuals from Central America-including
unaccompanied children and family units- arriving at our
borders is having on agency operations and the status of the
current interagency response. Witnesses highlighted efforts
their agencies are taking to address the root cause of the
situation along our border, and recommended various solutions
to curb it.
Witnesses: Panel I: Hon. W. Craig Fugate, Administrator,
Federal Emergency Management Agency, U.S. Department of
Homeland Security; Hon. R. Gil Kerlikowske, Commissioner, U.S.
Customs and Border Protection, U.S. Department of Homeland
Security; Thomas S. Winkowski, Principal Deputy Assistant
Security, U.S. Immigration and Customs Enforcement, U.S.
Department of Homeland Security; Mark H. Greenberg, Acting
Assistant Secretary, Administration for Children and Families,
U.S. Department of Health and Human Services; Francisco
Palmieri, Deputy Assistant Secretary for the Caribbean and
Central America, Bureau of Western Hemisphere Affairs, U.S.
Department of State; Juan P. Osuna, Director, Executive Office
of Immigration Review, U.S. Department of Justice.
Nominations of Hon. James C. Miller III, Stephen Crawford, David M.
Bennett, and Victoria Reggie Kennedy to be Governors, U.S.
Postal Service. July 14, 2014. (S. Hrg. 113-000)
This one-panel hearing considered the nominations of Hon.
James C. Miller III, Stephen Crawford, David M. Bennett, and
Victoria Reggie Kennedy to be Governors, U.S. Postal Service.
Mrs. Kennedy was introduced by Sen. Edward J. Markey.
Challenges at the Border: Examining and Addressing the Root Causes
Behind the Rise in Apprehensions at the Southern Border. July
16, 2014. (S. Hrg. 113-000)
The purpose of this one-panel hearing was to examine the
reasons that so many Central Americans--particularly
unaccompanied children and families--are leaving their home
countries and trying to enter the United States. This hearing
was the second of two the Committee held on this topic. Witness
testimony focused on the root causes of this migration and
various efforts that might help to alleviate those causes.
Witnesses highlighted the effectiveness of current and
potential initiatives by the U.S. government, international
organizations, faith institutions, and the private sector to
address those factors.
Witnesses: Panel I: Michael Shifter, President, Inter-
American Dialogue; Eric L. Olson, Associate Director, Latin
American Program, Woodrow Wilson International Center for
Scholars; Eric Farnsworth, Vice President, Americas Society/
Council of the Americas; Richard Jones, Deputy Regional
Director for Global Solidarity and Justice in Latin America and
the Caribbean, Catholic Relief Services; Bryan Roberts, Ph.D.,
Senior Economist, Econometrica, Inc.
Nomination of Anne E. Rung to be Administrator, Office of Federal
Procurement Policy, Office of Management and Budget. July 24,
2014. (S. Hrg. 113-000)
This one-panel hearing considered the nomination of Anne E.
Rung to be Administrator, Office of Federal Procurement Policy,
Office of Management and Budget. Senator Claire McCaskill,
Chairman of the Subcommittee on Financial and Contracting
Oversight, presided.
Nomination of Joseph L. Nimmich to be Deputy Administrator, Federal
Emergency Management Agency, U.S. Department of Homeland
Security. July 24, 2014. (S. Hrg. 113-000)
This one-panel hearing considered the nomination of Joseph
L. Nimmich to be Deputy Administrator, Federal Emergency
Management Agency, U.S. Department of Homeland Security.
Senator Mark Begich, Chairman of the Subcommittee on Emergency
Management, Intergovernmental Relations, and the District of
Columbia, presided.
Oversight of Federal Programs for Equipping State and Local Law
Enforcement Agencies. September 9, 2014. (S. Hrg. 113-000)
The purpose of this two-panel hearing was to examine
Federal programs responsible for distributing surplus military
equipment and grant funding to state and local law enforcement
agencies. The hearing assessed the justification for the
programs and the policies in place for coordinating, managing,
and overseeing them. Witness testimony discussed the processes
for awarding grants, disposing of excess and surplus Defense
Department property to state and local law enforcement, and how
agencies ensure that recipients of equipment and grant funding
use, manage, and account for them.
Witnesses: Panel I: Hon. Alan F. Estevez, Principal Deputy
Under Secretary of Defense for Acquisition, Technology, and
Logistics, U.S. Department of Defense; Brian E. Kamoie,
Assistant Administrator for Grant Programs, Federal Emergency
Management Agency, U.S. Department of Homeland Security; Karol
Mason, Assistant Attorney General, Office of Justice Programs,
U.S. Department of Justice. Panel II: Chief Jim Bueerman,
President, Police Foundation; Peter B. Kraska, Ph.D.,
Professor, School of Justice Studies, Eastern Kentucky
University; Mark Lomax, Executive Director, National Tactical
Officers Association; Mr. Lomax was accompanied by Major Ed
Allen, Seminole County Sheriff's Office; Wiley Price,
Photojournalist, The St. Louis American Newspaper; Hilary O.
Shelton, Washington Bureau Director and Senior Vice President
for Advocacy, National Association for the Advancement of
Colored People.
Cybersecurity, Terrorism, and Beyond: Addressing Evolving Threats to
the Homeland. September 10, 2014. (S. Hrg. 113-000)
The purpose of this one-panel hearing was to examine
several key global threats and how they impact the U.S.
homeland. The hearing predominately focused on cyber threats,
but also addressed other homeland threats, such as the
terrorist threat from the Islamic State of Iraq in the Greater
Levant (ISIL), Syrian foreign fighters, and terrorist travel.
Witnesses provided the committee with an update on the current
status of these threats, including how they have evolved over
the past year, and highlighted the major initiatives carried
out by DHS, the FBI, and the NCTC in response to these threats.
Witnesses: Hon. Francis X. Taylor, Under Secretary for
Intelligence and Analysis, U.S. Department of Homeland
Security; Hon. Suzanne E. Spaulding, Under Secretary, National
Protection and Programs Directorate, U.S. Department of
Homeland Security; Nicholas J. Rasmussen, Deputy Director,
National Counterterrorism Center, Office of the Director of
National Intelligence; Robert Anderson, Jr., Executive
Assistant Director, Criminal, Cyber, Response, and Services
Branch, Federal Bureau of Investigation, U.S. Department of
Justice.
Equality for the District of Columbia: Discussing the Implications of
S. 132, the New Columbia Admissions Act of 2013. September 15,
2014. (S. Hrg. 113-000)
The purpose of this two-panel hearing was to examine the
rationale for and implications of S. 132, the New Columbia
Admissions Act of 2013. Witnesses discussed the challenges and
disadvantages the District of Columbia faces due to its current
status and shared their assessment of S. 132 and the effect it
would have on the District of Columbia. Witness testimony also
addressed the constitutionality, legality, and feasibility of
achieving statehood for the District of Columbia through
legislative means.
Witnesses: Panel I: Hon. Eleanor Holmes Norton, Delegate of
the District of Columbia, U.S. House of Representatives; Hon.
Vincent C. Gray, Mayor, District of Columbia; Hon. Philip H.
Mendelson, Chairman, Council of the District of Columbia. Panel
II: Hon. Viet D. Dinh, Professor, Georgetown University Law
Center; Hon. Alice M. Rivlin, Ph.D., Senior Fellow and Leonard
D. Schaeffer Chair in Health Policy Studies, The Brookings
Institution; Wade Henderson, President, Leadership Conference
on Civil and Human Rights; Roger Pilon, Ph.D., Vice President
for Legal Affairs and B. Kenneth Simon Chair in Constitutional
Studies, Cato Institute; Hon. Paul Strauss, Shadow Senator,
District of Columbia; Hon. Michael D. Brown, Shadow Senator,
District of Columbia.
Nominations of Hon. Sarah R. Saldanna to be Assistant Secretary for
Immigration and Customs Enforcement, U.S. Department of
Homeland Security; Russell C. Deyo to be Under Secretary for
Management, U.S. Department of Homeland Security; Hon. Mickey
D. Barnett to be a Governor, U.S. Postal Service. September 17,
2014. (S. Hrg. 113-000)
This one-panel hearing considered the nominations of Hon.
Sarah R. Saldanna to be Assistant Secretary for Immigration and
Customs Enforcement, U.S. Department of Homeland Security;
Russell C. Deyo to be Under Secretary for Management, U.S.
Department of Homeland Security; and Hon. Mickey D. Barnett to
be a Governor, U.S. Postal Service. Mrs. Saldanna was
introduced by Sen. John Cornyn and Mr. Deyo was introduced by
The Honorable Michael Chertoff.
Nomination of Rear Admiral Earl L. Gay, USN, (Ret.) to be Deputy
Director, Office of Personnel Management. November 18, 2014.
(S. Hrg. 113-000)
This one-panel hearing considered the nomination of Rear
Admiral Earl L. Gay, USN, (Ret.) to be Deputy Director, Office
of Personnel Management. The nominee was introduced by
Representative John Lewis. Senator Jon Tester, Chairman of the
Subcommittee on the Efficiency and Effectiveness of Federal
Programs and the Federal Workforce, presided.
Preparedness and Response to Public Health Threats: How Ready Are We?
November 19, 2014. (S. Hrg. 113-000)
The purpose of this one-panel hearing was to examine our
country's preparedness for and ability to respond to a public
health threat or incident in the United States, and the efforts
that Federal and State governments are making to prepare for
and respond to public health threats and incidents. Witness
testimony discussed the measures Federal and state governments
are taking to respond to public health threats, as well as
preparations that are being made in the event that an outbreak
such as Ebola may become a more significant international or
domestic threat. The hearing also highlighted the strengths and
lessons learned in the past few months of the Ebola response,
and how the overall U.S. public health system can be improved
to address the current and future threats posed by disease
outbreaks and pandemics.
Witnesses: Hon. Nicole Lurie, M.D., Rear Admiral, U.S.
Public Health Service, Assistant Secretary for Preparedness and
Response, U.S. Department of Health and Human Services; Hon.
Thomas Frieden, M.D., Director, Centers for Disease Control and
Prevention; Hon. Gil Kerlikowske, Commissioner, U.S. Customs
and Border Protection, U.S. Department of Homeland Security;
Commissioner Kerlikowske was accompanied by Dr. Kathryn
Brinsfield, Chief Medical Officer, U.S. Department of Homeland
Security; Hon. Nancy E. Lindborg, Assistant Administrator, U.S.
Agency for International Development; David L. Lakey, M.D.,
Commissioner, Texas Department of State Health Services.
V. REPORTS, PRINTS, AND GAO REPORTS
During the 113th Congress, the Committee prepared and
issued 33 reports and 7 Committee Prints on the following
topics. Reports issued by Subcommittees are listed in their
respective sections of this document.
COMMITTEE REPORTS
To reauthorize the Congressional Award Act. S. Rept. 113-
109, re. S. 1348.
To increase oversight of the Revolving Fund of the Office
of Personnel Management, strengthen the authority to terminate
or debar employees and contractors involved in misconduct
affecting the integrity of security clearance background
investigations, enhance transparency regarding the criteria
utilized by Federal departments and agencies to determine when
a security clearance is required. S. Rept. 113-111, re. S.
1276.
Activities of the Committee on Homeland Security and
Governmental Affairs and its Subcommittees for the One Hundred
Twelfth Congress. S. Rept. 113-115.
To require the Federal Government to expedite the sale of
underutilized Federal real property. S. Rept. 113-122, re. S.
1398.
To amend the Improper Payments Elimination and Recovery
Improvement Act of 2012, including making changes to the Do Not
Pay initiative, for improved detection, prevention, and
recovery of improper payments to deceased individuals. S. Rept.
113-124, re. S. 1360.
To amend title 31, United States Code, to make improvements
in the Government Accountability Office. S. Rept. 113-128, re.
H.R. 1162.
To expand the Federal Funding Accountability and
Transparency Act of 2006 to increase accountability and
transparency in Federal spending. S. Rept. 113-139, re. S. 994.
To require certain agencies to conduct assessments of data
centers and develop data center consolidation and optimization
plans. S. Rept. 113-157, re S. 1611.
To improve cybersecurity recruitment and retention. S.
Rept. 113-207, re. S. 2354.
To prohibit contracting with the enemy. S. Rept. 113-216,
re. S. 675.
To prohibit the use of Federal funds for the costs of
official portraits of Members of Congress, heads of executive
agencies, and heads of agencies and offices of the legislative
branch. S. Rept. 113-217, re. S. 1820.
To amend chapter 22 of title 44, United States Code,
popularly known as the Presidential Records Act, to establish
procedures for the consideration of claims of constitutionally
based privilege against disclosure of Presidential records. S.
Rept. 113-218, re. H.R. 1233.
To provide for the elimination or modification of Federal
reporting requirements. S. Rept. 113-232, re. H.R. 4194.
To reauthorize the Multinational Species Conservation Funds
Semipostal Stamp. S. Rept. 113-235, re. S. 231.
To require the purchase of domestically made flags of the
United States of America for use by the Federal Government. S.
Rept. 113-236, re. S. 1214.
To require the purchase of domestically made flags of the
United States of America for use by the Federal Government. S.
Rept. 113-237, re. S. 1486.
To codify an existing operations center for cybersecurity.
S. Rept. 113-240, re. S. 2519.
To provide taxpayers with an annual report disclosing the
cost and performance of Government programs and areas of
duplication among them. S. Rept. 113-243, re. S. 2113.
To amend title 5, United States Code, to change the default
investment fund under the Thrift Savings Plan. S. Rept. 113-
244, re. S. 2117.
To amend title 44, United States Code, to require
information on contributors to Presidential library fundraising
organizations. S. Rept. 113-245, re. S. 2640.
To amend title 5, United States Code, to improve the
security of the United States border and to provide for reforms
and rates of pay for border patrol agents. S. Rept. 113-248,
re. S. 1691.
To amend chapter 21 of title 5, United States Code, to
provide that fathers of certain permanently disabled or
deceased veterans shall be included with mothers of such
veterans as preference eligibles for treatment in the civil
service. S. Rept. 113-249, re. S. 2323.
To amend the Robert T. Stafford Disaster Relief and
Emergency Assistance to provide eligibility for broadcasting
facilities to receive certain disaster assistance. S. Rept.
113-250, re. S. 2665.
To amend chapter 35 of title 44, United States Code, to
provide for reform to Federal information security. S. Rept.
113-256, re. S. 2521.
To prevent conflicts of interest relating to contractors
providing background investigation fieldwork services and
investigative support services. S. Rept. 113-257, re. S. 2061.
To require adequate information regarding the tax treatment
of payments under settlements agreements entered into by
Federal agencies. S. Rept. 113-259, re. S. 1898.
To repeal certain mandates of the Department of Homeland
Security Office of Inspector General. S. Rept. 113-261, re. S.
2651.
To amend titles 40, 41, and 44, United States Code, to
eliminate duplication and waste in information technology
acquisition and management. S. Rept. 113-262, re. H.R. 1232.
To recodify and reauthorize the Chemical Facility Anti-
Terrorism Standards Program. S. Rept. 113-263, re. H.R. 4007.
To provide transparency, accountability, and limitations of
Government sponsored conferences. S. Rept. 113-268, re. S.
1347.
To amend title 5, United States Code, to provide that
persons having seriously delinquent tax debts shall be
ineligible for Federal employment. S. Rept. 113-272, re. S.
1045.
To strengthen the accountability of individuals involved in
misconduct affecting the integrity of background
investigations, to update guidelines for security clearances.
S. Rept. 113-276, re. S. 1744.
To enhance the Office of Personnel Management background
check system for the granting, denial, or revocation of
security clearances or access to classified information of
employees and contractors of the Federal Government. S. Rept.
113-283, re. S. 1618.
COMMITTEE PRINTS
The Committee issued the following Committee Prints during
the 113th Congress:
Rules of Procedure. Committee on Homeland Security and
Governmental Affairs. (Printed. 41 pp. S. Prt. 113-10.)
Rules of Procedure. Senate Permanent Subcommittee on
Investigations. (Printed. 22 pp. S. Prt. 113-9.)
Rules of Procedure. Committee on Homeland Security and
Governmental Affairs. (Printed. 42 pp. S. Prt. 113-19.)
Rules of Procedure. Senate Permanent Subcommittee on
Investigations. (Printed. 22 pp. S. Prt. 113-20.)
IRS and TIGTA Management Failures Related to 501 (c)(4)
Applicants Engaged in Campaign Activity. (Printed. 1991 pp. S.
Prt. 113-26.)
The Air Force's Expeditionary Combat Support System (ECSS):
A Cautionary Tale on the Need for Business Process
Reengineering and Complying with Acquisition Best Practices.
(Printed. 53 pp. S. Prt. 113-27.)
Defense Acquisition Reform: Where Do We Go From Here?--A
Compendium of Views by Leading Experts. (Printed. 250 pp. S.
Prt. 113-28.)
GAO REPORTS
Also during the 113th Congress, the Government
Accountability Office (GAO) issued 268 reports at the request
of the Committee. GAO reports requested by the Subcommittees
appear in their respective sections. Reports are listed here by
title, GAO number, and release date.
Financial Regulation: A Framework for Crafting and
Assessing Proposals to Modernize the Outdated U.S. Financial
Regulatory System. GAO-09-216. January 8, 2009.
Veteran-Owned Small Businesses: Planning and Data System
for VA's Verification Program Need Improvement. GAO-13-95.
January 14, 2013.
U.S. Postal Service: Overview of Initiatives to Increase
Revenue and Introduce Nonpostal Services and Experimental
Postal Products. GAO-13-216. January 15, 2013.
Financial Audit: U.S. Government's Fiscal Years 2012 and
2011 Consolidated Financial Statements. GAO-13-271R. January
17, 2013.
Information Security: Actions Needed by Census Bureau to
Address Weaknesses. GAO-13-63. January 22, 2013.
Performance Measures and Comprehensive Funding Data Could
Enhance Management of National Capital Region Preparedness
Resources. GAO-13-116R. January 25, 2013.
Broadcasting Board of Governors: Additional Steps Needed to
Address Overlap in International Broadcasting. GAO-13-172.
January 29, 2013.
Warfighter Support: DOD Needs Additional Steps to Fully
Integrate Operational Contract Support into Contingency
Planning. GAO-13-212. February 8, 2013.
Human Services: Sustained and Coordinated Efforts Could
Facilitate Data Sharing While Protecting Privacy. GAO-13-106.
February 8, 2013.
U.S. Postal Service: Urgent Action Needed to Achieve
Financial Sustainability. GAO-13-347T. February 13, 2013.
Government Reorganization: Potential Benefits and Drawbacks
of Merging the National Marine Fisheries Service into the Fish
and Wildlife Service. GAO-13-248. February 14, 2013.
2020 Census: Local Administrative Records and Their Use in
the Challenge Program and Decennial. GAO-13-269. February 21,
2013.
Iran: U.S. and International Sanctions Have Adversely
Affected the Iranian Economy. GAO-13-326. February 25, 2013.
Defense Contracting: Actions Needed to Explore Additional
Opportunities to Gain Efficiencies in Acquiring Foreign
Language Support. GAO-13-251R. February 25, 2013.
Managing for Results: Data-Driven Performance Reviews Show
Promise But Agencies Should Explore How to Involve Other
Relevant Agencies. GAO-13-228. February 27, 2013.
Combating Autism Act: HHS Agencies Responded with New and
Continuing Activities, Including Oversight. GAO-13-232.
February 27, 2013.
Characteristics of Presidential Appointments that do not
Require Senate Confirmation. GAO-13-299R. March 1, 2013.
Agricultural Quarantine Inspection Fees: Major Changes
Needed to Align Fee Revenues with Program Costs. GAO-13-268.
March 1, 2013.
Use of Remanufactured Parts in the Federal Vehicle Fleet Is
Based On a Variety of Factors. GAO-13-316R. March 7, 2013.
Cybersecurity: A Better Defined and Implemented National
Strategy Is Needed to Address Persistent Challenges. GAO-13-
462T. March 7, 2013.
Wind Energy: Additional Actions Could Help Ensure Effective
Use of Federal Financial Support. GAO-13-136. March 11, 2013.
Information Sharing: Additional Actions Could Help Ensure
That Efforts to Share Terrorism-Related Suspicious Activity
Reports Are Effective [Reissued on March 26, 2013]. GAO-13-233.
March 13, 2013.
Budget Issues: Effects of Budget Uncertainty from
Continuing Resolutions on Agency Operations. GAO-13-464T. March
13, 2013.
Border Security: DHS's Progress and Challenges in Securing
U.S. Borders. GAO-13-414T. March 14, 2013.
President's Emergency Plan For Aids Relief: Per-Patient
Costs Have Declined Substantially, but Better Cost Data Would
Help Efforts to Expand Treatment. GAO-13-345. March 15, 2013.
Information Security: IRS Has Improved Controls but Needs
to Resolve Weaknesses. GAO-13-350. March 15, 2013.
High-Risk Series: Government-wide 2013 Update and Progress
Made by the Department of Homeland Security. GAO-13-444T. March
21, 2013.
FEMA Reservists: Training Could Benefit from Examination of
Practices at Other Agencies. GAO-13-250R. March 22, 2013.
Critical Infrastructure Protection: DHS List of Priority
Assets Needs to Be Validated and Reported to Congress. GAO-13-
296. March 25, 2013.
Major Automated Information Systems: Selected Defense
Programs Need to Implement Key Acquisition Practices. GAO-13-
311. March 28, 2013.
Energy Efficiency: Better Coordination among Federal
Programs Needed to Allocate Testing Resources. GAO-13-135.
March 28, 2013.
Acquisition Workforce: Federal Agencies Obtain Training to
Meet Requirements, but Have Limited Insight into Costs and
Benefits of Training Investment. GAO-13-231. March 28, 2013.
Medicaid: Enhancements Needed for Improper Payments
Reporting and Related Corrective Action Monitoring. GAO-13-229.
March 29, 2013.
CMS: Activities, Staffing, and Funding for the Center for
Strategic Planning. GAO-13-377R. April 1, 2013.
2012 Lobbying Disclosure: Observations on Lobbyists'
Compliance with Disclosure Requirements. GAO-13-437. April 1,
2013.
Federal Employees' Compensation Act: Case Examples
Illustrate Vulnerabilities That Could Result in Improper
Payments or Overlapping Benefits. GAO-13-386. April 3, 2013.
Political Intelligence: Financial Market Value of
Government Information Hinges on Materiality and Timing. GAO-
13-389. April 4, 2013.
Information Sharing: Agencies Could Better Coordinate to
Reduce Overlap in Field-Based Activities. GAO-13-471. April 4,
2013.
Critical Infrastructure Protection: DHS Efforts to Assess
Chemical Security Risk and Gather Feedback on Facility Outreach
Can Be Strengthened. GAO-13-353. April 5, 2013.
Border Security: Partnership Agreements and Enhanced
Oversight Could Strengthen Coordination of Efforts on Indian
Reservations. GAO-13-352. April 5, 2013.
2013 Annual Report: Actions Needed to Reduce Fragmentation,
Overlap, and Duplication and Achieve Other Financial Benefits.
GAO-13-279SP. April 9, 2013.
President's Emergency Plan for AIDS Relief: Shift toward
Partner- Country Treatment Programs Will Require Better
Information on Results. GAO-13-460. April 12, 2013.
Strategic Sourcing: Leading Commercial Practices Can Help
Federal Agencies Increase Savings When Acquiring Services. GAO-
13-417. April 15, 2013.
Managing For Results: Agencies Have Elevated Performance
Management Leadership Roles, but Additional Training Is Needed.
GAO-13-356. April 16, 2013.
Grants Management: Oversight of Selected States'
Disbursement of Federal Funds Addresses Timeliness and
Administrative Allowances. GAO-13-392. April 16, 2013.
Medicare: Legislative Modifications Have Resulted in
Payment Adjustments for Most Hospitals. GAO-13-334. April 17,
2013.
Prescription Drugs: Comparison of DOD and VA Direct
Purchase Prices. GAO-13-358. April 19, 2013.
Managing For Results: Agencies Should More Fully Develop
Priority Goals under the GPRA Modernization Act. GAO-13-174.
April 19, 2013.
Data Center Consolidation: Strengthened Oversight Needed to
Achieve Cost Savings Goal. GAO-13-378. April 23, 2013.
President's Emergency Plan For AIDS Relief: Drug Supply
Chains Are Stronger, but More Steps Are Needed to Reduce Risks.
GAO-13-483. April 26, 2013.
Centers for Disease Control and Prevention: Lobbying
Policies and Monitoring for Program to Reduce Obesity and
Tobacco Use. GAO-13-477R. April 30, 2013.
Social Security Administration: Preliminary Observations on
the Death Master File. GAO-13-574T. May, 8, 2013.
Medicare Program Integrity: Few Payments in 2011 Exceeded
Limits under One Kind of Prepayment Control, but Reassessing
Limits Could Be Helpful. GAO-13-430. May 9, 2013.
Federal Reserve Banks: Areas for Improvement in Information
Systems Controls. GAO-13-419R. May 9, 2013.
Bureau of the Public Debt: Areas for Improvement in
Information Systems Controls. GAO-13-416R. May 9, 2013.
Management Report: Improvements Are Needed to Enhance the
Internal Revenue Service's Internal Controls. GAO-13-420R. May
13, 2013.
DOD Financial Management: Significant Improvements Needed
in Efforts to Address Improper Payment Requirements. GAO-13-
227. May 13, 2013.
Financial Audit: Congressional Award Foundation's Fiscal
Years 2012 and 2011 Financial Statements. GAO-13-554. May 15,
2013.
Nuclear Nonproliferation: IAEA Has Made Progress in
Implementing Critical Programs but Continues to Face
Challenges. GAO-13-139. May 16, 2013.
Government Efficiency and Effectiveness: Opportunities to
Reduce Fragmentation, Overlap, and Duplication through Enhanced
Performance Management and Oversight. GAO-13-590T. May 22,
2013.
Grants Management: Improved Planning, Coordination, and
Communication Needed to Strengthen Reform Efforts. GAO-13-383.
May 23, 2013.
UN Compensation: United Nations Should Clarify the Process
and Assumptions Underlying Secretariat Professional Salaries.
GAO-13-526. May 29, 2013.
Corporate Income Tax: Effective Tax Rates Can Differ
Significantly from the Statutory Rate. GAO-13-520. May 30,
2013.
Managing for Results: Leading Practices Should Guide the
Continued Development of Performance.gov. GAO-13-517. June 6,
2013.
Information Technology: OMB and Agencies Need to Focus
Continued Attention on Eliminating Duplicative Investments.
GAO-13-685T. June 11, 2013.
Information Technology: Additional Executive Review
Sessions Needed to Address Troubled Projects. GAO-13-524. June
13, 2013.
Personnel Security Clearances: Further Actions Needed to
Improve the Process and Realize Efficiencies. GAO-13-728T. June
20, 2013.
Grants Performance: Justice and FEMA Collect Performance
Data for Selected Grants, but Action Needed to Validate FEMA
Performance Data. GAO-13-552. June 24, 2013.
U.S. Postal Service: Opportunities to Increase Revenue
Exist with Competitive Products; Reviewing Long-Term Results
Could Better Inform Promotions Decisions. GAO-13-578. June 25,
2013.
National Preparedness: FEMA Has Made Progress, but
Additional Steps Are Needed to Improve Grant Management and
Assess Capabilities. GAO-13-637T. June 25, 2013.
Program Evaluation: Strategies to Facilitate Agencies' Use
of Evaluation in Program Management and Policy Making. GAO-13-
570. June 26, 2013.
Managing For Results: Executive Branch Should More Fully
Implement the GPRA Modernization Act to Address Pressing
Governance Challenges. GAO-13-518. June 26, 2013.
Managing for Results: 2013 Federal Managers Survey on
Organizational Performance and Management Issues. (GAO-13-
519SP, June 2013), an E-supplement to GAO-13-518, GAO-13-519SP.
June 26, 2013.
Medicare: Ownership Status of Inpatient Prospective Payment
System Hospitals That Qualify for Payment Adjustments. GAO-13-
667R. June 27, 2013.
Management Report: Improvements Needed in Controls over the
Preparation of the U.S. Consolidated Financial Statements. GAO-
13-540. June 28, 2013.
Grant Workforce: Agency Training Practices Should Inform
Future Government-wide Efforts. GAO-13-591. June 28, 2013.
Federal Telework: Office of Personnel Management's 2012
Telework Report Shows Opportunities for Improvement. GAO-13-
298R. June 28, 2013.
President's Emergency Plan for Aids Relief: Millions Being
Treated, but Better Information Management Needed to Further
Improve and Expand Treatment. GAO-13-688. July 8, 2013.
Strategic Sourcing: Improved and Expanded Use Could Provide
Significant Procurement Savings. GAO-13-765T. July 15, 2013.
Department of Homeland Security: Oversight and Coordination
of Research and Development Efforts Could Be Strengthened. GAO-
13-766T. July 17, 2013.
U.S. Postal Service: Proposed Health Plan Could Improve
Financial Condition, but Impact on Medicare and Other Issues
Should Be Weighed before Approval. GAO-13-658. July 18, 2013.
Medicare Program Integrity: Increasing Consistency of
Contractor Requirements May Improve Administrative Efficiency.
GAO-13-522. July 23, 2013.
Overstay Enforcement: Additional Actions Needed to Assess
DHS's Data and Improve Planning for a Biometric Air Exit
Program. GAO-13-683. July 30, 2013.
Agricultural Trade: USDA Is Monitoring Market Development
Programs as Required but Could Improve Analysis of Impact. GAO-
13-740. July 31, 2013.
DOD Financial Management: Ineffective Risk Management Could
Impair Progress toward Audit-Ready Financial Statements. GAO-
13-123. August 2, 2013.
Health Care Workforce: Federally Funded Training Programs
in Fiscal Year 2012. GAO-13-709R. August 15, 2013.
Disability Insurance: Work Activity Indicates Certain
Social Security Disability Insurance Payments Were Potentially
Improper. GAO-13-635. August 15, 2013.
Standards for Internal Control in the Federal Government:
2013 Exposure Draft. GAO-13-830SP. September 3, 2013.
Space: Defense and Civilian Agencies Request Significant
Funding for Launch-Related Activities. GAO-13-802R. September
9, 2013.
Small Business Administration: Review of 7(a) Guaranteed
Loans to Select Franchisees. GAO-13-759. September 10, 2013.
Security Clearances: Additional Mechanisms May Aid Federal
Tax-Debt Detection. GAO-13-733. September 10, 2013.
National Archives and Records Administration: Actions
Needed to Ensure Facilities That Store Federal Records Meet
Standards. GAO-13-668. September 10, 2013.
Information Technology: Key Federal Agencies Need to
Address Potentially Duplicative Investments. GAO-13-718.
September 12, 2013.
Federal Data Transparency: Opportunities Remain to
Incorporate Lessons Learned as Availability of Spending Data
Increases. GAO-13-758. September 12, 2013.
Supply Chain Security: DHS Could Improve Cargo Security by
Periodically Assessing Risks from Foreign Ports. GAO-13-764.
September 16, 2013.
DHS Recruiting and Hiring: DHS Is Generally Filling
Mission-Critical Positions, but Could Better Track Costs of
Coordinated Recruiting Efforts. GAO-13-742. September 17, 2013.
Federal Real Property: Greater Transparency and Strategic
Focus Needed for High-Value GSA Leases. GAO-13-744. September
19, 2013.
U.S. Postal Service: Health and Pension Benefits Proposals
Involve Trade-offs. GAO-13-872T. September 26, 2013.
Federal Information Security: Mixed Progress in
Implementing Program Components; Improved Metrics Needed to
Measure Effectiveness. GAO-13-776. September 26, 2013.
Department of Homeland Security: Opportunities Exist to
Enhance Visibility over Collaborative Field Mechanisms. GAO-13-
734. September 27, 2013.
Nuclear Terrorism Response Plans: Major Cities Could
Benefit from Federal Guidance on Responding to Nuclear and
Radiological Attacks. GAO-13-736. September 30, 2013.
Health Care Workforce: HRSA Action Needed to Publish Timely
National Supply and Demand Projections. GAO-13-806. September
30, 2013.
Health Care Fraud and Abuse Control Program: Indicators
Provide Information on Program Accomplishments, but Assessing
Program Effectiveness is Difficult. GAO-13-746. September 30,
2013.
DHS Financial Management: Additional Efforts Needed to
Resolve Deficiencies in Internal Controls and Financial
Management Systems. GAO-13-561. September 30, 2013.
Civil Support: Actions Are Needed to Improve DOD's Planning
for a Complex Catastrophe. GAO-13-763. September 30, 2013.
Federal Real Property: Selected Agencies Plan to Use
Workforce Mobility to Reduce Space, but Most Efforts Are Too
New to Have Realized Savings. GAO-14-41. October 17, 2013.
Electronic Health Records: Number and Characteristics of
Providers Awarded Medicare Incentive Payments for 2011-2012.
GAO-14-21R. October 24, 2013.
Medicare Program Integrity: Contractors Reported Generating
Savings, but CMS Could Improve Its Oversight. GAO-14-111.
October 25, 2013.
2020 Census: Additional Actions Could Strengthen Future
Census Test Designs, GAO-14-26. October 25, 2013.
Federal Real Property: Improved Standards Needed to Ensure
That Agencies' Reported Cost Savings Are Reliable and
Transparent. GAO-14-12. October 29, 2013.
Personnel Security Clearances: Full Development and
Implementation of Metrics Needed to Measure Quality of Process.
GAO-14-157T. October 31, 2013.
Federal Real Property: GSA Should Clarify Savings Goals for
the National Broker Contract Program. GAO-1414. October 31,
2013.
Information Technology: Agencies Need to Strengthen
Oversight of Multibillion Dollar Investments in Operations and
Maintenance. GAO-14-66. November 6, 2013.
Information Technology: Additional OMB and Agency Actions
Are Needed to Achieve Portfolio Savings. GAO-14-65. November 6,
2013.
GPS Disruptions: Efforts to Assess Risks to Critical
Infrastructure and Coordinate Agency Actions Should Be
Enhanced. GAO-14-15. November 6, 2013.
Federal Employees Health Benefits Program: Oversight of
Carriers' Fraud and Abuse Programs. GAO-14-39. November 14,
2013.
Personnel Security Clearances: Actions Needed to Help
Ensure Correct Designations of National Security Positions.
GAO-14-139T. November 20, 2013.
Federal Autism Activities: Better Data and More
Coordination Needed to Help Avoid the Potential for Unnecessary
Duplication. GAO-14-16. November 20, 2013.
2020 Census: Bureau Needs to Improve Scheduling Practices
to Enhance Ability to Meet Address List Development Deadlines.
GAO-14-59. November 21, 2013.
National Preparedness: Actions Taken by FEMA to Implement
Select Provisions of the Post-Katrina Emergency Management
Reform Act of 2006. GAO-14-99R. November 26, 2013.
Social Security Death Data: Additional Action Needed to
Address Data Errors and Federal Agency Access. GAO-14-46.
November 27, 2013.
Health Resources and Services Administration: Review of
Internal Communication Mechanisms, Staffing, and Use of
Contracts. GAO-14-52. December 3, 2013.
DHS Management and Administration Spending: Reliable Data
Could Help DHS Better Estimate Resource Requests. GAO-14-27.
December 4, 2013.
Telecommunications: GSA Needs to Share and Prioritize
Lessons Learned to Avoid Future Transition Delays. GAO-14-63.
December 5, 2013.
Border Security: DHS's Efforts to Modernize Key Enforcement
Systems Could be Strengthened. GAO-14-62. December 5, 2013.
Medicaid: CMS Should Ensure That States Clearly Report
Overpayments. GAO-14-25. December 6, 2013.
Internal Controls: Corrective Actions Under Way to Address
Control Deficiencies at the Morris K. Udall and Stewart L.
Udall Foundation. GAO-14-95. December 6, 2013.
Reverse Auctions: Guidance Is Needed to Maximize
Competition and Achieve Cost Savings. GAO-14-108. December 9,
2013.
Information Security: Agency Responses to Breaches of
Personally Identifiable Information Need to Be More Consistent.
GAO-14-34. December 9, 2013.
Fiscal Year 2013 Agreed-Upon Procedures: Excise Tax
Distributions to the Airport and Airway Trust Fund and the
Highway Trust Fund. GAO-14-162R. December 9, 2013.
IT Dashboard: Agencies Are Managing Investment Risk, but
Related Ratings Need to Be More Accurate and Available. GAO-14-
64. December 12, 2013.
Financial Audit: IRS's Fiscal Years 2013 and 2012 Financial
Statements. GAO-14-169. December 12, 2013.
Financial Audit: Bureau of the Fiscal Service's Fiscal
Years 2013 and 2012 Schedules of Federal Debt. GAO-14-173.
December 12, 2013.
Homeland Security: Federal Protective Service Continues to
Face Challenges with Contract Guards and Risk Assessments at
Federal Facilities. GAO-14-235T. December 17, 2013.
IRS's Offshore Voluntary Disclosure Program: 2009
Participation by State and Location of Foreign Bank Accounts.
GAO-14-265R. January 6, 2014.
Federal Real Property: Actions Needed to Improve How
Agencies Manage Structures. GAO-14-87. January 6, 2014.
U.S. Postal Service: Actions Needed to Strengthen the
Capital Investment Process. GAO-14-155. January 7, 2014.
Department of Homeland Security: Ammunition Purchases Have
Declined since 2009. GAO-14-119. January 13, 2014.
Computer Matching Act: OMB and Selected Agencies Need to
Ensure Consistent Implementation. GAO-14-44. January 13, 2014.
Federal Real Property: Improved Transparency Could Help
Efforts to Manage Agencies' Maintenance and Repair Backlogs.
GAO-14-188. January 23, 2014.
Recovery Act: Grant Implementation Experiences Offer
Lessons for Accountability and Transparency. GAO-14-219.
January 24, 2014.
Civilian Intelligence Community: Additional Actions Needed
to Improve Reporting on and Planning for the Use of Contract
Personnel. GAO-14-204. January 29, 2014.
Federal Contracting: Commercial Item Test Program
Beneficial, but Actions Needed to Mitigate Potential Risks.
GAO-14-178. February 4, 2014.
Commercial Space Launches: FAA's Risk Assessment Process Is
Not Yet Updated. GAO-14-328T. February 4, 2014.
Medicare: Nurse Anesthetists Billed for Few Chronic Pain
Procedures; Implementation of CMS Payment Policy Inconsistent.
GAO-14-153. February 7, 2014.
K-12 Education: Characteristics of the Investing in
Innovation Fund. GAO-14-211R. February 7, 2014.
DOD Business Systems Modernization: Air Force Business
System Schedule and Cost Estimates. GAO-14-152. February 7,
2014.
Extreme Weather Events: Limiting Federal Fiscal Exposure
and Increasing the Nation's Resilience. GAO-14-364T. February
12, 2014.
Civilian Intelligence Community: Additional Actions Needed
to Improve Reporting on and Planning for the Use of Contract
Personnel. GAO-14-257T. February 13, 2014.
Managing for Results: Implementation Approaches Used to
Enhance Collaboration in Interagency Groups. GAO-14-220.
February 14, 2014.
Contingency Contracting: State and USAID Made Progress
Assessing and Implementing Changes, but Further Actions Needed.
GAO-14-229. February 14, 2014.
Financial Audit: U.S. Government's Fiscal Years 2013 and
2012 Consolidated Financial Statements. GAO-14-319R. February
27, 2014.
Defense Transportation: DOD Can Better Ensure That Federal
Agencies Fully Reimburse for Using Military Aircraft. GAO-14-
189. February 27, 2014.
Army Workload and Performance System: Actions Needed to
Complete Assessment of Unnecessary Overlap with Logistics
Modernization Program. GAO-14-266. February 28, 2014.
The Air Force's Evolved Expendable Launch Vehicle
Competitive Procurement. GAO-14-377R. March 4, 2014.
Nuclear Nonproliferation: Stronger Planning and Evaluation
Needed for Radiological Security Zone Pilot Project. GAO-14-
209. March 6, 2014.
Federal Student Loans: Better Oversight Could Improve
Defaulted Loan Rehabilitation. GAO-14256. March 6, 2014.
Electronic Health Record Programs: Participation Has
Increased, but Action Needed to Achieve Goals, Including
Improved Quality of Care. GAO-14-207. March 6, 2014.
Federal Rulemaking: Regulatory Review Processes Could Be
Enhanced. GAO-14-423T. March 11, 2014.
Government Efficiency and Effectiveness: Views on the
Progress and Plans for Addressing Government-wide Management
Challenges. GAO-14-436T. March 12, 2014.
Capital Financing: Alternative Approaches to Budgeting for
Federal Real Property. GAO-14239. March 12, 2014.
Large Partnerships: Characteristics of Population and IRS
Audits. GAO-14-379R. March 19, 2014.
Electronic Health Records: HHS Strategy to Address
Information Exchange Challenges Lacks Specific Prioritized
Actions and Milestones. GAO-14-242. March 24, 2014.
Federal Contracting: Noncompetitive Contracts Based on
Urgency Need Additional Oversight. GAO-14-304. March 26, 2014.
Critical Infrastructure Protection: Observations on Key
Factors in DHS's Implementation of Its Partnership Approach.
GAO-14-464T. March 26, 2014.
Major Automated Information Systems: Selected Defense
Programs Need to Implement Key Acquisition Practices. GAO-14-
309. March 27, 2014.
Electricity Markets: Demand-Response Activities Have
Increased, but FERC Could Improve Data Collection and Reporting
Efforts. GAO-14-73. March 27, 2014.
Defense Logistics: Actions Needed to Improve Department-
Wide Management of Conventional Ammunition Inventory. GAO-14-
182. March 31, 2014.
Information Security: Federal Agencies Need to Enhance
Responses to Data Breaches. GAO-14-487T. April 2, 2014.
2020 Census: Prioritized Information Technology Research
and Testing Is Needed for Census Design Decisions. GAO-14-389.
April 3, 2014.
Information Security: IRS Needs to Address Control
Weaknesses That Place Financial and Taxpayer Data at Risk. GAO-
14-405. April 8, 2014.
2014 Annual Report: Additional Opportunities to Reduce
Fragmentation, Overlap, and Duplication and Achieve Other
Financial Benefits. GAO-14-343SP. April 8, 2014.
Inspectors General: Oversight of Small Federal Agencies and
the Role of the Inspectors General. GAO-14-503T. April 10,
2014.
Reexamining Regulations: Agencies Often Made Regulatory
Changes, but Could Strengthen Linkages to Performance Goals.
GAO-14-268. April 11, 2014.
Defense Contracting: DOD's Use of Class Justifications for
Sole-Source Contracts. GAO-14-427R. April 16, 2014.
Information Security: SEC Needs to Improve Controls over
Financial Systems and Data. GAO-14-419. April 17, 2014.
Homeland Security Acquisitions: DHS Could Better Manage Its
Portfolio to Address Funding Gaps and Improve Communications
with Congress. GAO-14-332. April 17, 2014.
Foster Children: Additional Federal Guidance Could Help
States Better Plan for Oversight of Psychotropic Medications
Administered by Managed-Care Organizations. GAO-14-362. April
28, 2014.
DOD Financial Management: Actions Under Way Need to Be
Successfully Completed to Address Long-standing Funds Control
Weaknesses. GAO-14-94. April 29, 2014.
Information Security: Agencies Need to Improve Cyber
Incident Response Practices, GAO-14-354. April 30, 2014.
Information Technology: Agencies Need to Establish and
Implement Incremental Development Policies. GAO-14-361. May 1,
2014.
NASA: Actions Needed to Improve Transparency and Assess
Long-Term Affordability of Human Exploration Programs. GAO-14-
385. May 8, 2014.
Information Technology: Implementing Best Practices and
Reform Initiatives Can Help Improve the Management of
Investments. GAO-14-596T. May 8, 2014.
Management Report: Improvements Needed in SEC's Internal
Controls and Accounting Procedures. GAO-14-416R. May 12, 2014.
DOD Financial Management: Effect of Continuing Weaknesses
on Management and Operations and Status of Key Challenges. GAO-
14-576T. May 13, 2014.
Disaster Resilience: Actions Are Underway, but Federal
Fiscal Exposure Highlights the Need for Continued Attention to
Longstanding Challenges. GAO-14-603T. May 14, 2014.
Critical Infrastructure Protection: Observations on DHS
Efforts to Implement and Manage its Chemical Security Program.
GAO-14-608T. May 14, 2014.
School-Meals Programs: USDA Has Enhanced Controls, but
Additional Verification Could Help Ensure Legitimate Program
Access. GAO-14-262. May 15, 2014.
Financial Audit: Congressional Award Foundation's Fiscal
Years 2013 and 2012 Financial Statements. GAO-14-540. May 15,
2014.
State Department: Process to Track Responses to
Congressional Correspondence Can Be Improved. GAO-14-424. May
20, 2014.
Medicaid: Financial Characteristics of Approved Applicants
and Methods Used to Reduce Assets to Qualify for Nursing Home
Coverage. GAO-14-473. May 22, 2014.
Federal Software Licenses: Better Management Needed to
Achieve Significant Savings Government-Wide. GAO-14-413. May
22, 2014.
2013 Lobbying Disclosure: Observations on Lobbyists'
Compliance with Disclosure Requirements. GAO-14-485. May 28,
2014.
Virtual Currencies: Emerging Regulatory, Law Enforcement,
and Consumer Protection Challenges GAO-14-496 May 29, 2014.
Trusted Travelers: Programs Provide Benefits, but
Enrollment Processes Could Be Strengthened. GAO-14-483. May 30,
2014.
DOD Financial Management: Improvements Needed in Army's
Efforts to Ensure the Reliability of Its Statement of Budgetary
Resources. GAO-14-60. May 30, 2014.
Maritime Security: Progress and Challenges with Selected
Port Security Programs. GAO-14-636T. June 4, 2014.
DHS Intelligence Analysis: Additional Actions Needed to
Address Analytic Priorities and Workforce Challenges. GAO-14-
397. June 4, 2014.
Nuclear Nonproliferation: Additional Actions Needed to
Increase the Security of U.S. Industrial Radiological Sources.
GAO-14-293. June 6, 2014.
Managing for Results: OMB Should Strengthen Reviews of
Cross-Agency Goals. GAO-14-526. June 10, 2014.
Information Technology: Reform Initiatives Can Help Improve
Efficiency and Effectiveness. GAO-14-671T. June 10, 2014.
Nuclear Nonproliferation: Additional Actions Needed to
Increase the Security of U.S. Industrial Radiological Sources.
GAO-14-681T. June 12, 2014.
Management Report: Areas for Improvement in the Federal
Reserve Banks' Information Systems Controls. GAO-14-691R. June
18, 2014.
Civilian Intelligence Community: Additional Actions Needed
to Improve Reporting on and Planning for the Use of Contract
Personnel. GAO-14-692T. June 18, 2014.
Management Report: Improvements Needed in Controls over the
Processes Used to Prepare the U.S. Consolidated Financial
Statements. GAO-14-543. June 19, 2014.
DOD Financial Management: The Defense Finance and
Accounting Service Needs to Fully Implement Financial
Improvements for Contract Pay. GAO-14-10. June 23, 2014.
Transportation Security Information Sharing: Stakeholder
Satisfaction Varies; TSA Could Take Additional Actions to
Strengthen Efforts. GAO-14-506. June 24, 2014.
Transportation Security Information Sharing: Results of
GAO's Survey of Stakeholder Satisfaction with TSA Products and
Mechanisms (GAO-14-488SP, June 2014), an E-supplement to GAO-
14-506. GAO-14-488SP. June 24, 2014.
Information Security: Additional Oversight Needed to
Improve Programs at Small Agencies. GAO-14-344. June 25, 2014.
United Nations: Key Compensation Elements Should Be
Reviewed to Address Costs and Sustainability. GAO-14-546. June
26, 2014.
Prescription Drugs: Comparison of DOD, Medicaid, and
Medicare Part D Retail Reimbursement Prices. GAO-14-578. June
30, 2014.
Data Transparency: Oversight Needed to Address
Underreporting and Inconsistencies on Federal Award Website.
GAO-14-476. June 30, 2014.
Management Report: Improvements Are Needed to Enhance the
Internal Revenue Service's Internal Controls. GAO-14-433R. July
2, 2014.
USDA Farm Programs: Farmers Have Been Eligible for Multiple
Programs and Further Efforts Could Help Prevent Duplicative
Payments. GAO-14-428. July 8, 2014.
Export-Import Bank: Information on Export Credit Agency
Financing Support for Wide-Body Jets. GAO-14-642R. July 8,
2014.
New Markets Tax Credit: Better Controls and Data Are Needed
to Ensure Effectiveness, GAO-14-500. July 10, 2014.
Electricity Markets: Actions Needed to Expand GSA and DOD
Participation in Demand-Response Activities. GAO-14-594. July
11, 2014.
Supplemental Security Income: Wages Reported for Recipients
Show Indications of Possible SSN Misuse. GAO-14-597. July 16,
2014.
Medicare Program Integrity: Increased Oversight and
Guidance Could Improve Effectiveness and Efficiency of
Postpayment Claims Reviews. GAO-14-474. July 18, 2014.
Management Report: Improvements Are Needed in the Bureau of
the Fiscal Service's Information Systems Controls. GAO-14-693R.
July 18, 2014.
State Department: Implementation of Grants Policies Needs
Better Oversight. GAO-14-635. July 21, 2014.
Managing for Results: Enhanced Goal Leader Accountability
and Collaboration Could Further Improve Agency Performance.
GAO-14-639. July 22, 2014.
Large Partnerships: Growing Population and Complexity
Hinder Effective IRS Audits. GAO-14-746T. July 22, 2014.
World Trade Center Health Program: Approach Used to Add
Cancers to List of Covered Conditions Was Reasonable, but Could
Be Improved. GAO-14-606. July 23, 2014.
Space Launch System: Resources Need to be Matched to
Requirements to Decrease Risk and Support Long Term
Affordability. GAO-14-631. July 23, 2014.
Patient Protection and Affordable Care Act: Preliminary
Results of Undercover Testing of Enrollment Controls for Health
Care Coverage and Consumer Subsidies Provided Under the Act.
GAO-14-705T. July 23, 2014.
Information Management: The National Technical Information
Service's Dissemination of Technical Reports Needs Attention.
GAO-14-781T. July 23, 2014.
Federal Emergency Management Agency: Opportunities to
Achieve Efficiencies and Strengthen Operations. GAO-14-687T.
July 24, 2014.
Security Clearances: Tax Debts Owed by DOD Employees and
Contractors. GAO-14-686R. July 28, 2014.
Healthcare.gov: Ineffective Planning and Oversight
Practices Underscore the Need for Improved Contract Management.
GAO-14-694. July 30, 2014.
Federal Grants: Agencies Performed Internal Control
Assessments Consistent with Guidance and Are Addressing
Internal Control Deficiencies. GAO-14-539. July 30, 2014.
Contractor Performance: Actions Taken to Improve Reporting
of Past Performance Information. GAO-14-707. August 7, 2014.
Information Security: Agencies Need to Improve Oversight of
Contractor Controls. GAO-14-612. August 8, 2014.
Crop Insurance: Considerations in Reducing Federal Premium
Subsidies. GAO-14-700. August 8, 2014.
Federally Funded Research Centers: Agency Reviews of
Employee Compensation and Center Performance. GAO-14-593.
August 11, 2014.
Bureau of Prisons: Management of New Prison Activations Can
Be Improved. GAO-14-709. August 22, 2014.
Patient Protection and Affordable Care Act: Largest Issuers
of Health Coverage Participated in Most Exchanges, and Number
of Plans Available Varied. GAO-14-657. August 29, 2014.
Standards for Internal Control in the Federal Government.
GAO-14-704G. September 10, 2014.
DHS Training: Improved Documentation, Resource Tracking,
and Performance Measurement Could Strengthen Efforts. GAO-14-
688. September 10, 2014.
Federal Rulemaking: Agencies Included Key Elements of Cost-
Benefit Analysis, but Explanations of Regulations' Significance
Could Be More Transparent [Reissued on September 12, 2014].
GAO-14-714. September 11, 2014.
Healthcare.gov: Actions Needed to Address Weaknesses in
Information Security and Privacy Controls. GAO-14-730.
September 16, 2014.
8(a) Subcontracting Limitations: Continued Noncompliance
with Monitoring Requirements Signals Need for Regulatory
Change. GAO-14706. September 16, 2014.
Large Partnerships: With Growing Number of Partnerships,
IRS Needs to Improve Audit Efficiency. GAO-14-732. September
18, 2014.
Federal Real Property: DHS and GSA Need to Strengthen the
Management of DHS Headquarters Consolidation. GAO-14-648.
September 19, 2014.
Federal Real Property: DHS and GSA Need to Strengthen the
Management of DHS Headquarters Consolidation. GAO-14-864T.
September 19, 2014.
Health Resources and Services Administration: Action Taken
to Train and Oversee Grantee Monitoring Staff, but Certain
Guidance Could Be Improved. GAO-14-800. September 23, 2014.
Federal Software Licenses: Most Agencies Have Reported
Planned Actions to Address Our Prior Recommendations on
Software License Management. GAO-14-835R. September 23, 2014.
U.S. Postal Service: Information on Recent Changes to
Delivery Standards, Operations, and Performance. GAO-14-828R.
September 25, 2014.
Data Center Consolidation: Reporting Can Be Improved to
Reflect Substantial Planned Savings. GAO-14-713. September 25,
2014.
Cloud Computing: Additional Opportunities and Savings Need
to Be Pursued. GAO-14-753. September 25, 2014.
Managing for Results: Agencies' Trends in the Use of
Performance Information to Make Decisions. GAO-14-747.
September 26, 2014.
Federal Real Property: More Useful Information to Providers
Could Improve the Homeless Assistance Program. GAO-14-739.
September 30, 2014.
DOD Business Systems Modernization: Additional Enhancements
Are Needed for Army Business System Schedule and Cost Estimates
to Fully Meet Best Practices. GAO-14-470. September 30, 2014.
Disability Compensation: Review of Concurrent Receipt of
Department of Defense Retirement, Department of Veterans
Affairs Disability Compensation, and Social Security Disability
Insurance. GAO-14-854R. September 30, 2014.
2020 Census: Census Bureau Can Improve Use of Leading
Practices When Choosing Address and Mapping Sources. GAO-15-21.
October 2, 2014.
Market Research: Better Documentation Needed to Inform
Future Procurements at Selected Agencies. GAO-15-8. October 9,
2014.
Federal Paid Administrative Leave: Additional Guidance
Needed to Improve OPM Data. GAO-15-79. October 17, 2014.
Health Care Transparency: Actions Needed to Improve Cost
and Quality Information for Consumers. GAO-15-11. October 20,
2014.
Labor Relations Activities: Actions Needed to Improve
Tracking and Reporting of the Use and Cost of Official Time.
GAO-15-9. October 23, 2014.
Managing for Results: Selected Agencies Need to Take
Additional Efforts to Improve Customer Service. GAO-15-84.
October 24, 2014.
Government Efficiency and Effectiveness: Inconsistent
Definitions and Information Limit the Usefulness of Federal
Program Inventories. GAO-15-83. October 31, 2014.
Information Sharing: DHS Is Assessing Fusion Center
Capabilities and Results, but Needs to More Accurately Account
for Federal Funding Provided to Centers. GAO-15-155. November
4, 2014.
Fiscal Year 2014 Agreed-Upon Procedures: Excise Tax
Distributions to the Airport and Airway Trust Fund and the
Highway Trust Fund. GAO-15-152R. November 6, 2014.
Financial Audit: Office of Financial Stability (Troubled
Asset Relief Program) Fiscal Years 2014 and 2013 Financial
Statements. GAO-15-132R. November 7, 2014.
Financial Audit: Bureau of the Fiscal Service's Fiscal
Years 2014 and 2013 Schedules of Federal Debt. GAO-15-157.
November 10, 2014.
Program Evaluation: Some Agencies Reported that Networking,
Hiring, and Involving Program Staff Help Build Capacity. GAO-
15-25. November 13, 2014.
Financial Audit: Securities and Exchange Commission's
Fiscal Years 2014 and 2013 Financial Statements. GAO-15-166R.
November 17, 2014.
Consumer Product Safety Oversight: Opportunities Exist to
Strengthen Coordination and Increase Efficiencies and
Effectiveness. GAO-15-52. November 19, 2014.
VI. OFFICIAL COMMUNICATIONS
During the 113th Congress, 964 official communications were
referred to the Committee. Of these, 956 were Executive
Communications, and 8 were Petitions or Memorials. Of the
official communications, 347 dealt with the District of
Columbia.
VII. LEGISLATIVE ACTIONS
During the 113th Congress, the Committee reported
significant legislation that was approved by Congress and
signed into law by the President.
The following are brief legislative histories of measures
to the Committee and, in some cases, drafted by the Committee,
which (1) became public law or (2) were favorably reported from
the Committee and passed by the Senate, but did not become law.
In addition to the measures listed below, the Committee
received during the 113th Congress numerous legislative
proposals that were not considered or reported, or that were
reported but not passed by the Senate. Additional information
on these measures appears in the Committee's Legislative
Calendar for the 113th Congress, S. Prt. 113-63, Government
Printing Office (December 31, 2011).
MEASURES ENACTED INTO LAW
The following measures considered by the Committee were
enacted into Public Law. The descriptions following the signing
date of each measure note selected provisions of the text, and
are not intended to serve as section-by-section summaries.
H.R. 1171.--Formerly Owned Resources for Veterans to
Express Thanks for Service Act of 2013 or FOR VETS Act of 2013.
(Public Law 113-26). August 9, 2013.
Authorizes the transfer of Federal surplus property to a
state agency for distribution through donation within the state
for purposes of education or public health for organizations
whose membership comprises substantially veterans and whose
representatives are recognized by the Secretary of Veterans
Affairs (VA) in the preparation, presentation, and prosecution
of claims under laws administered by the Secretary.
H.R. 1233.--Presidential and Federal Records Act Amendments
of 2014. (Public Law 113-187). November 26, 2014.
(Sec. 2) Amends the Presidential Records Act to require the
Archivist of the United States, upon determining to make
publicly available any presidential record not previously made
available, to: (1) promptly provide written notice of such
determination to the former President during whose term of
office the record was created, to the incumbent President, and
to the public; and (2) make such record available to the public
within 60 days, except any record with respect to which the
Archivist receives notification from a former or incumbent
President of a claim of constitutionally-based privilege
against disclosure. Prohibits the Archivist from making a
record that is subject to such a claim publicly available
unless: (1) the incumbent President withdraws a decision
upholding the claim, or (2) the Archivist is otherwise directed
to do so by a final court order that is not subject to appeal.
Prohibits the Archivist from making available any original
presidential records to anyone claiming access to them as a
designated representative of a President or former President if
that individual has been convicted of a crime relating to the
review, retention, removal, or destruction of the records of
the Archives. Prohibits the President, the Vice President, or a
covered employee (i.e., the immediate staff of the President
and Vice President or office advising and assisting the
President or Vice President) from creating or sending a
presidential or vice presidential record using a non-official
electronic messaging account unless the President, Vice
President, or covered employee: (1) copies an official
electronic messaging account of the President, Vice President,
or covered employee in the original creation or transmission of
the presidential or vice presidential record; or (2) forwards a
complete copy of the presidential record to an official
electronic messaging account of the President, Vice President,
or covered employee not later than 20 days after the original
creation or transmission of the presidential or vice
presidential record. (Sec. 3) Provides that the transfer to the
Archivist of records by a Federal agency that have historical
significance shall take place as soon as practicable but not
later than 30 years after the creation or receipt of such
records by an agency. Expands the authority of the Archivist
with respect to the creation and preservation of audio and
visual records. (Sec. 5) Revises the definition of "records"
for purposes of this Act to include all recorded information,
regardless of form or characteristics. Makes the Archivist's
determination of whether recorded information is a record
binding on all Federal agencies. (Sec. 6) Directs the Archivist
to prescribe internal procedures to prevent the unauthorized
removal of classified records from the National Archives and
Records Administration (NARA) or the destruction or damage of
such records, including when such records are accessed
electronically. Requires such procedures to: (1) prohibit any
person, other than personnel with appropriate security
clearances (covered personnel), from viewing classified records
in any room that is not secure, except in the presence of NARA
personnel or under video surveillance, from being left alone
with classified records unless under video surveillance, or
from conducting any review of classified records while in the
possession of any personal communication device; (2) require
all persons seeking access to classified records to consent to
a search of their belongings upon conclusion of their records
review; and (3) require all writings prepared by persons, other
than covered personnel, during the course of a review of
classified records to be retained by NARA in a secure facility
until such writings are determined to be unclassified, are
declassified, or are securely transferred to another secure
facility. (Sec. 7) Repeals provisions authorizing the National
Study Commission on Records and Documents of Federal Officials.
(Sec. 9) Transfers responsibility for records management from
the Administrator of the General Services Administration (GSA)
to the Archivist. Requires the transfer of records from Federal
agencies to the National Archives in digital or electronic form
to the greatest extent possible. (Sec. 10) Prohibits an officer
or employee of an executive agency from creating or sending a
record using a non-official electronic messaging account unless
such officer or employee: (1) copies an official electronic
messaging account of the officer or employee in the original
creation or transmission of the record, or (2) forwards a
complete copy of the record to an official electronic messaging
account of the officer or employee not later than 20 days after
the original creation or transmission of the record. Provides
for disciplinary action against an agency officer or employee
for an intentional violation of such prohibition.
H.R. 2952.--Cybersecurity Workforce Assessment Act. (Public
Law 113-246). December 18, 2014.
Directs the Secretary of Homeland Security, within 180 days
and annually thereafter for three years, to conduct an
assessment of the cybersecurity workforce of the Department of
Homeland Security (DHS), which shall include information on:
LThe readiness and capacity of such workforce to
meet its cybersecurity mission;
LWhere cybersecurity workforce positions are
located within DHS;
LWhich such positions are performed by permanent
full-time equivalent DHS employees, by independent contractors,
and by individuals employed by other Federal agencies;
LWhich such positions are vacant;
LThe percentage of individuals within each
Cybersecurity Category and Specialty Area who received
essential training to perform their jobs; and
LIn cases in which such training was not received,
what challenges were encountered regarding the provision of
such training.
Directs the Secretary to develop, maintain, and update a
comprehensive workforce strategy to enhance the readiness,
capacity, training, recruitment, and retention of DHS's
cybersecurity workforce, which shall include a description of:
LA multi-phased recruitment plan,
LA 5-year implementation plan,
LA 10-year projection of the cybersecurity
workforce needs of DHS,
LAny obstacle impeding the hiring and development
of such workforce, and
LAny gap in the existing DHS cybersecurity
workforce and a plan to fill such gap.
Requires the Secretary to submit to the appropriate
congressional committees: (1) annual updates on such assessment
and on the Secretary's progress in carrying out such strategy;
and (2) a report on the feasibility, cost, and benefits of
establishing a Cybersecurity Fellowship Program to offer a
tuition payment plan for individuals pursuing undergraduate and
doctoral degrees who agree to work for DHS for an agreed-upon
period.
H.R. 4007.--Protecting and Securing Chemical Facilities
from Terrorist Attacks Act of 2014. (Public Law 113-263).
December 18, 2014.
(Sec. 2) Amends the Homeland Security Act of 2002 to
reestablish the Chemical Facility Anti-Terrorism Standards
(CFATS) Program in the Department of Homeland Security (DHS)
and to authorize appropriations for such Program for FY2015-
FY2017. Requires the Secretary of Homeland Security, under such
Program, to: (1) establish risk-based performance standards
designed to protect covered chemical facilities from acts of
terrorism and other security risks; and (2) require such
facilities to submit security vulnerability assessments and
develop and implement site security plans. Authorizes the
Secretary to approve an alternative security program
established by a private sector entity or a Federal, State, or
local authority that meets the requirements of this Act.
Requires the Secretary to:
LReview and approve or disapprove each such
assessment and plan using the risk assessment policies and
procedures developed under this Act;
LConduct the audit and inspection of covered
chemical facilities, including by using a non-government
entity, to determine compliance with this Act;
LPrescribe standards for the training and
retraining of DHS or non-governmental auditors and inspectors;
and
LProvide written notification (including a clear
explanation of any deficiency in the security vulnerability
assessment or site security plan) to the owner or operator of a
covered facility determined to not be in compliance with this
Act; and
LIssue to the owner or operator of such a facility
an order to comply with this Act.
Authorizes the Secretary to issue an order assessing a
civil penalty or requiring such a facility to cease operations
if the owner or operator fails to comply. Defines: (1) a
"covered chemical facility" to mean a chemical facility that
the Secretary designates as a facility of interest and
determines meets specified risk criteria, and (2) a "chemical
facility of interest" to mean a facility that holds a chemical
of interest at a threshold quantity that meets relevant risk-
related criteria developed under this Act. Excepts certain
chemical facilities, including Department of Defense (DOD) and
Department of Energy (DOE) facilities. Requires the Secretary
to carry out a Personnel Surety Program that provides a
participating facility owner or operator with feedback about
individuals based on vetting against the terrorist screening
database. Authorizes a covered chemical facility to use such a
Federal screening program in order to satisfy the requirements
of a risk-based performance standard that address personnel
surety. Requires the Secretary to direct DHS's Security
Screening Coordination Office to coordinate with the National
Protection and Programs Directorate to expedite the development
of a common credential that screens against the terrorist
screening database on a recurrent basis. Directs the Secretary
to: (1) consult with the heads of other Federal agencies,
states and political subdivisions, and relevant business
associations to identify all chemical facilities of interest;
and (2) develop a risk assessment approach and corresponding
tiering methodology that incorporates all relevant elements of
risk, including threat, vulnerability, and consequence.
Requires the criteria for determining the security risk of
terrorism associated with a facility to include: (1) the
relevant threat information, (2) the potential economic
consequences and the potential loss of human life in the event
of the facility being subject to a terrorist attack, and (3)
the vulnerability of the facility to a terrorist attack.
Requires: (1) information developed pursuant to this Act to be
protected from public disclosure, but permits the sharing of
such information with state and local government officials
possessing the necessary security clearances; and (2)
information submitted to or obtained by the Secretary under
this Act to be treated as classified material in any proceeding
to enforce this Act. Sets forth civil penalties for violations
of orders issued under this Act. Directs the Secretary to
publish, including on the DHS website, the whistleblower
protections that an individual providing information under this
Act would have. Requires: (1) the Secretary to submit to
Congress, within 18 months after enactment of this Act, a
report on the CFATS Program, including certifications that the
Secretary has made significant progress in the identification
of all chemical facilities of interest and has developed a risk
assessment approach and corresponding tiering methodology and
an assessment of DHS's implementation of any recommendations
made by the Homeland Security Studies and Analysis Institute as
outlined in the Institute's Tiering Methodology Peer Review;
and (2) the Comptroller General (GAO) to submit a semiannual
assessments of the implementation of this Act. Authorizes the
Secretary to: (1) provide guidance and tools, methodologies, or
computer software to assist small covered chemical facilities
(covered facilities having fewer than 350 employees) in
developing their physical security; and (2) submit a report on
best practices that may assist small chemical facilities.
Directs the Secretary to: (1) establish an outreach
implementation plan to identify chemical facilities of interest
and make available compliance assistance materials and
information on education and training, (2) commission a third-
party study to assess vulnerabilities to acts of terrorism
associated with the Program, and (3) submit a plan for the
utilization of metrics to assess the effectiveness of the
Program to reduce the risk of a terrorist attack or other
security risk to citizens and communities surrounding covered
chemical facilities.
H.R. 4194.-- Government Reports Elimination Act of 2014.
(Public Law 113-188). November 26, 2014.
Provides for the elimination or modification of reporting
and notification requirements of specified Federal agencies and
departments. Title I: Department of Agriculture--Eliminates:
(1) peanut base acres data collection and publication under the
Food, Conservation, and Energy Act of 2008; (2) the report on
export credit guarantees to emerging markets; (3) the
evaluation of the rural development, business and industry
guaranteed loan program financing of locally or regionally
produced food products; (4) quarterly reports on export
assistance provided by the Commodity Credit Corporation and the
Secretary of Agriculture; (5) annual progress reports in
achieving benchmarks established in the regional investment
strategy of the Rural Collaborative Investment Program; and (6)
the annual report on the foreign market development cooperator
program. Title II: Department of Commerce--Eliminates: (1) the
annual report on efforts and progress of colleges,
universities, institutions, associations, and alliances to be
designated as Sea Grant Colleges or Institutes; (2) the annual
report on Enterprise Integration Standardization and
Implementation activities under the Enterprise Integration Act
of 2001; (3) the biennial report on efforts to ensure equal
access to the Sea Grant Fellowship Program; (4) the annual
reports on activities of the Technology Innovation Program
(TIP) and on the Technology Innovation Program Advisory Board;
and (5) the annual report on activities of the Northwest
Atlantic Fisheries Commission and related entities. Title III:
Corporation for National and Community Service--Eliminates: (1)
the reporting requirements of Federal agencies and departments
to the Corporation for National and Community Service, and (2)
the impact study and report on service-learning activities.
Title IV: Department of Defense (DOD)--Eliminates: (1) the
requirement for submission with the annual DOD budget of a
display that covers all programs and activities of the Air
Sovereignty Alert Mission of the Air Force, and (2) the annual
report on the reliability of DOD financial statements. Title V:
Department of Education--Eliminates the report of the Secretary
of Education justifying the award of school facility emergency
and modernization grants. Title VI Department of Energy (DOE)--
Eliminates reports on: (1) the science and engineering
education pilot program, (2) the development of strategic
unconventional fuels, and (3) energy efficiency standards for
industrial equipment. Title VII: Environmental Protection
Agency (EPA)--Amends the Federal Water Pollution Control Act
(commonly known as the Clean Water Act) to eliminate the
comprehensive report on Great Lakes management. Title VIII:
Executive Office of the President--Eliminates the notification
requirement and the report on waivers of sanctions by the
President against North Korea. Title IX: Government
Accountability Office (GAO)--(Sec. 901) Eliminates reports on:
(1) expenditures of local educational agencies under the
Elementary and Secondary Education Act of 1965, and (2) the use
of funds under the American Recovery and Reinvestment Act of
2009 by states and local governments. Amends the Help America
Vote Act of 2002 to eliminate the mandatory audit of all funds
provided by such Act. Amends the Small Business Jobs Act of
2010 to eliminate the audits and reports on the state small
business credit initiative and the small business lending fund
program. Amends the Food, Conservation, and Energy Act of 2008
to eliminate the audit and report on assistance to the Housing
Assistance Council. (Sec. 902) Amends the Patient Protection
and Affordable Care Act to make the Secretary of Health and
Human Resources (HHS) (currently, the Secretary and the
Comptroller General) responsible for surveying the public with
respect to health and health care. Requires the Comptroller
General to publish on the GAO website (currently, deliver to
Congress) lists of GAO reports. Amends the Congressional Award
Act to provide for a independent public accountant (currently,
the Comptroller General) to conduct the annual audit of the
financial records of the Congressional Award Board. Requires
the Comptroller General to review, and report on, each annual
audit. Amends title XVIII (Medicare) of the Social Security Act
to terminate at the end of 2014 the review by the Comptroller
General of the threshold amount for injury-related liabilities
under Medicare. Title X: Department of Homeland Security
(DHS)--Eliminates: (1) reporting requirements under the Tariff
Act of 1930 relating to the prohibition on importation of
products made with dog or cat fur, (2) the biennial Port of
Entry Infrastructure Assessment Study, (3) the biennial
National Land Border Security Plan, (4) reporting requirements
with respect to fees for customs services, and (5) the status
report on the modernization of the National Distress and
Response System. Title XI: Department of the Interior--
Eliminates reporting requirements of the program on oil and gas
royalties in-kind. Title XII: Department of Labor--Eliminates
the continuing study by the Secretary of Labor on the impact of
the Andean trade preference on U.S. labor. Title XIII: Office
of the Director of National Intelligence (DNI)--Eliminates the
report on the Treaty on Conventional Armed Forces in Europe.
Title XIV: Department of State--Eliminates the annual State
Department report on nuclear proliferation in South Asia and
efforts to achieve a regional agreement on nuclear non-
proliferation. Title XV: Department of Transportation (DOT)--
(Sec. 1601) Eliminates: (1) the reporting requirements of the
Air Traffic Services Committee, (2) the annual summaries of
airport financial reports, (3) the annual report on pipeline
safety information grants to communities, (4) the annual report
on the pilot program for innovative financing of air traffic
control equipment and the reports on justifications for air
defense identification zones under the Vision 100--Century of
Aviation Reauthorization Act, and (5) the annual report on the
application of new standards or technologies to reduce aircraft
noise levels under the Wendell H. Ford Aviation Investment and
Reform Act for the 21st Century. (Sec. 1502) Eliminates the
requirement for an annual evaluation and audit of the programs
and expenditures of the National Transportation Safety Board
(NTSB), allowing such evaluation and audit to be conducted as
determined necessary by the Comptroller General. Title XVI:
Department of the Treasury--Eliminates: (1) the annual report
on the North American Development Bank, (2) the annual report
on loans considered by the Boards of Executive Directors of
international financial institutions engaged in activities to
promote the cause of human rights, (3) the report on new
International Monetary Fund (IMF) borrowing arrangements
regarding rates and maturities, and (4) the requirement for
notification to Congress of any significant modifications in
the auction process for issuing Treasury obligations. Title
XVII: Department of Veterans Affairs (VA)--Eliminates the
annual report on procurement of health care items by VA medical
facilities.
H.R. 4197.--All Circuit Review Extension Act (Public Law
113-170). September 26, 2014.
Extends from two to five years after the effective date of
the Whistleblower Protection Enhancement Act of 2012 (i.e.,
December 27, 2012), the period allowed for: (1) filing a
petition for judicial review of Merit Systems Protection Board
decisions in whistleblower cases, and (2) any review of such a
decision by the Director of the Office of Personnel Management
(OPM).
S. 231.--Multinational Species Conservation Funds
Semipostal Stamp Reauthorization Act of 2013. (Public Law 113-
165). September 19, 2014.Amends the Multinational Species
Conservation Funds Semipostal Stamp Act of 2010 to require such
stamp to be made available to the public for an additional four
years.
S. 994.--Digital Accountability and Transparency Act of
2014 or the DATA Act. (Public Law 113-101). May 9, 2014.
(Sec. 2) States as the purposes of this Act to: (1) expand
the Federal Funding Accountability and Transparency Act of 2006
by disclosing direct Federal agency expenditures and linking
Federal contract, loan, and grant spending information to
Federal programs to enable taxpayers and policy makers to track
Federal spending more effectively; (2) establish government-
wide data standards for financial data and provide consistent,
reliable, and searchable government-wide spending data that is
displayed accurately for taxpayers and policy makers on
USASpending.gov; (3) simplify reporting for entities receiving
Federal funds by streamlining reporting requirements and
reducing compliance costs while improving transparency; (4)
improve the quality of data submitted to USASpending.gov by
holding Federal agencies accountable for the completeness and
accuracy of the data submitted; and (5) apply approaches
developed by the Recovery Accountability and Transparency Board
to spending across the Federal Government. (Sec. 3) Amends the
Federal Funding Accountability and Transparency Act of 2006 to
define ``Federal agency,'' for purposes of such Act, to mean an
executive department, a government corporation, or an
independent establishment. Directs the Secretary of the
Treasury, not later than three years after the enactment of
this Act and monthly, when practicable, but not less than
quarterly thereafter, to ensure that information on funds made
available to or expended by a Federal agency is posted online,
in a searchable, downloadable format. Directs the Secretary and
the Director of the Office of Management and Budget (OMB) to
establish government-wide financial data standards for Federal
funds and entities receiving such funds. Requires such data
standards, to the extent reasonable and practicable, to: (1)
incorporate widely-accepted common data elements and a widely-
accepted, nonproprietary, searchable, platform-independent,
computer-readable format; (2) include government-wide universal
identifiers for Federal awards and entities; (3) be consistent
with and implement applicable accounting principles; (4) be
capable of being continually updated; (5) produce consistent
and comparable data; and (6) establish a standard method of
conveying the reporting period, reporting entity, unit of
measure, and other associated attributes. Requires the
Secretary and the Director to issue guidance to Federal
agencies on such data standards and consult with public and
private stakeholders in establishing such standards. Requires
the Director to review the information required to be reported
by recipients of Federal awards to identify: (1) common
reporting elements across the Federal Government, (2)
unnecessary duplication in financial reporting, and (3)
unnecessarily burdensome reporting requirements for recipients
of Federal awards. Requires the Director to establish a two-
year pilot program to develop recommendations for: (1)
standardized reporting elements across the Federal Government,
(2) the elimination of unnecessary duplication in financial
reporting, and (3) the reduction of compliance costs for
recipients of Federal awards. Requires such pilot program to
include: (1) a combination of Federal contracts, grants, and
subawards, with an aggregate value of not less than $1 billion
and not more than $2 billion; (2) a diverse group of recipients
of Federal awards; (3) recipients who receive awards from
multiple programs across multiple agencies; and (4) data
collected during a 12-month reporting cycle. Requires the
Director, not later than 90 days after the termination of the
pilot program, to submit a report to the House Committees on
the Budget and Oversight and Government Reform and the Senate
Committees on the Budget and Homeland Security and Governmental
Affairs that includes: (1) a description of the data collected
under the pilot program, its usefulness, and the cost to
collect the data from other recipients; and (2)
recommendations. Directs the Inspector General of each Federal
agency to: (1) review a statistically valid sampling of the
spending data submitted under this Act by the Federal agency;
and (2) submit to Congress and make publicly available a report
assessing the completeness, timeliness, quality, and accuracy
of the data sampled and the implementation and use of data
standards by the Federal agency. Directs the Comptroller
General (GAO) to submit a publicly available report to Congress
assessing and comparing the data completeness, timeliness,
quality, and accuracy of the data submitted under this Act by
Federal agencies and the implementation and use of data
standards by Federal agencies. Authorizes the Secretary to
establish a data analysis center, or expand an existing
service, to provide data, analytic tools, and data management
techniques to support: (1) the prevention and reduction of
improper payments, and (2) the improvement of efficiency and
transparency in Federal spending. Transfers assets of the
Recovery Accountability and Transparency Board to the
Department of the Treasury upon the establishment of the data
analysis center. Declares that nothing in this Act: (1) shall
require disclosure to the public of information protected from
disclosure under the Freedom of Information Act (FOIA) or
information protected under the Privacy Act of 1974 or the
Internal Revenue Code; and (2) shall be construed to create a
private right of action. (Sec. 4) Requires the OMB Director to
make available on the OMB website a financial management status
report and government-wide five-year financial management plan.
(Sec. 5) Requires a Federal agency to notify the Secretary of
the Treasury of any legally enforceable non-tax debt owed to
such agency that is over 120 (currently, 180) days delinquent
so that the Secretary can offset such debt administratively.
Requires the Secretary to notify Congress of any instance in
which an agency fails to notify the Secretary of such a debt.
S. 1348.--Congressional Award Program Reauthorization Act
of 2013. (Public Law 113-43). October 4, 2013.
Amends the Congressional Award Act to extend the date for
termination of the Congressional Award Board from October 1,
2013, to October 1, 2018.
S. 1691.--Border Patrol Agent Pay Reform Act of 2014.
(Public Law 113-277). December 18, 2014.
(Sec. 2) States as the purposes of this Act: (1)
strengthening U.S. Customs and Border Protection (CBP) and
ensuring that border patrol agents are sufficiently ready to
conduct necessary work and will perform overtime hours in
excess of a 40-hour workweek based on the needs of CBP, and (2)
ensuring CBP has the flexibility to cover shift changes and
retains the right to assign scheduled and unscheduled work for
mission requirements and planning based on operational need.
Requires a border patrol agent, not later than 30 days before
the first day of each year beginning after the enactment of
this Act, to make an election whether such agent shall, for
that year, be assigned to: (1) the level 1 border patrol rate
of pay (i.e., hourly rate of pay equal to 1.25 times the
otherwise applicable hourly rate of basic pay); (2) the level 2
border patrol rate of pay (i.e., the hourly rate of pay equal
to 1.125 times the otherwise hourly rate of basic pay); or (3)
the basic border patrol rate of pay, with additional overtime
as needed by CBP. Requires: (1) the Office of Personnel
Management (OPM) to promulgate regulations establishing
procedures for such elections, and (2) CBP to provide each
border patrol agent with information on each type of election
available and how to make an election. Exempts from such
limitation agents working at CBP headquarters or a CBP training
location. Provides that an agent who fails to elect a pay level
or an agent who is assigned a canine shall be assigned to the
level 1 rate of pay. Requires CBP to: (1) assign an agent to
the basic border patrol rate of pay until it determines that
the agent is able to perform scheduled overtime on a daily
basis, and (2) take such action to ensure that not more than 10
percent of the agents stationed at a location are assigned to
the level 2 border patrol rate of pay or the basic border
patrol rate of pay. Allows CBP to waive the 10 percent
limitation if it determines that it may do so and adequately
fulfill its operational requirements. Requires CBP to develop,
implement, and report on, a plan to ensure that the assignment
of a border patrol agent during the three years of service
before such agent becomes eligible for immediate retirement are
consistent with the average border patrol rate of pay level to
which the agent has been assigned during the course of his or
her career. Requires the Comptroller General (GAO) to report to
Congress on the effectiveness of the plan in ensuring that
agents are not able to artificially enhance their retirement
annuities. Specifies the terms and conditions of level 1 and 2
border patrol rates of pay, premium pay, eligibility for leave
without pay, overtime, and compensatory time off. Requires CBP
to avoid the use of scheduled overtime work by border patrol
agents to the maximum extent practicable. Includes supplemental
pay from levels 1 and 2 rates of pay as part of a border patrol
agent's basic pay for purposes of calculating retirement
annuities. Requires: (1) CBP to conduct a comprehensive
analysis that examines the staffing requirements for CBP and
estimates the cost of such requirements and submit a report on
such analysis to GAO, and (2) GAO to report on the methodology
used by CBP to carry out its analysis and whether GAO concurs
with the findings in the CBP report. States that nothing in
this Act shall be construed to: (1) limit the right of CBP to
assign both scheduled and unscheduled work to a border patrol
agent based on the needs of the agency in excess of the hours
of work normally applicable under the election made by the
agent; (2) require compensation of an agent for other than for
hours during which the agent is actually performing work or
using approved leave; or (3) exempt an agent from any
limitations on pay, earnings, or compensation prescribed by
law. Requires OPM to promulgate regulations to carry out this
Act. (Sec. 3) Amends the Homeland Security Act of 2002 to
authorize the Secretary of Homeland Security to: (1) establish
positions in the excepted service in which the incumbent
performs, manages, or supervises functions that execute the
responsibilities of the Department of Homeland Security (DHS)
relating to cybersecurity (qualified positions), including
positions formerly identified as senior level positions and
positions in the Senior Executive Service (SES); and (2)
appoint an individual to such a qualified position. Requires
the Secretary to fix the rates of basic pay for any qualified
position in relation to the rates of pay provided for
comparable positions in the Department of Defense (DOD) and
allows the Secretary to provide such employees with additional
compensation, incentives, and allowances. Requires the
Secretary to annually submit to Congress for five years a
report that: (1) discusses the process used in accepting
applications and accessing candidates for qualified positions,
ensuring adherence to veteran preferences; (2) describes how
the Secretary plans to fulfill the critical need of DHS to
recruit and retain employees in a qualified position; (3)
discusses how such planning is integrated into the strategic
workforce of DHS; (4) provides information on the number of
employees, including veterans, hired and the number of
separations and retirements of employees in qualified
positions; and (5) describes the training provided to
supervisors of employees in qualified positions on the use of
new authorities. Establishes a probationary period of three
years for all employees hired. Directs the National Protection
and Programs Directorate to report to Congress on the
availability of, and benefits of using, cybersecurity personnel
and facilities outside of the National Capital Region. (Sec. 4)
Homeland Security Cybersecurity Workforce Assessment Act--
Requires the Secretary to: (1) identify all cybersecurity
workforce positions within DHS; (2) determine the primary
cybersecurity work category and specialty area of all DHS
cybersecurity workforce positions; (3) assign the corresponding
data element code, as set forth in OPM's Guide to Data
Standards, that is aligned with the National Initiative for
Cybersecurity Education's National Cybersecurity Workforce
Framework report; (4) establish procedures to identify open
positions that include cybersecurity functions; and (5) assign
the appropriate employment code to each such position. Directs
the Secretary, annually through 2021, to: (1) identify
cybersecurity work categories and specialty areas of critical
need in the DHS cybersecurity workforce, and (2) submit a
report to the OPM Director that describes such categories and
areas and substantiates the critical need designations.
Requires: (1) the OPM Director to provide the Secretary with
guidance for identifying cybersecurity work categories and
specialty areas of critical need, including areas with acute
skill and emerging skill shortages; and (2) the Secretary to
identify specialty areas of critical need in DHS's
cybersecurity workforce and submit a progress report to
Congress. Directs GAO to analyze, monitor, and report on the
implementation of DHS cybersecurity workforce measures.
S. 2519.--National Cybersecurity Protection Act of 2014.
(Public Law 113-282). December 18, 2014.
(Sec. 3) Amends the Homeland Security Act of 2002 to
establish a national cybersecurity and communications
integration center in the Department of Homeland Security (DHS)
to carry out the responsibilities of the DHS Under Secretary
responsible for overseeing critical infrastructure protection,
cybersecurity, and related DHS programs. Requires the center to
be the Federal civilian interface for sharing cybersecurity
risks, incidents, analysis, and warnings for Federal and non-
Federal entities. Directs the center to: (1) enable real-time,
integrated, and operational actions across Federal and non-
Federal entities; (2) facilitate cross-sector coordination to
address risks and incidents that may be related or could have
consequential impacts across multiple sectors; (3) conduct and
share analysis; and (4) provide technical assistance, risk
management, and security measure recommendations. Directs the
center to ensure: (1) continuous, collaborative, and inclusive
coordination across sectors and with sector coordinating
councils, information sharing and analysis organizations, and
other appropriate non-Federal partners; (2) development and use
of technology-neutral, real-time mechanisms for sharing
information about risks and incidents; and (3) safeguards
against unauthorized access. Provides the Under Secretary with
unreviewable discretion as to whether governmental or private
entities are included in the center or are provided assistance
or information. (Sec. 4) Requires the DHS Secretary to submit
to Congress recommendations regarding how to expedite
implementation of information-sharing agreements for
cybersecurity purposes between the center and non-Federal
entities. (Sec. 5) Directs the Secretary to report annually to
Congress concerning: (1) the number of non-Federal
participants, the length of time taken to resolve requests to
participate in the center, and the reasons for any denials of
such requests; (2) DHS's information sharing with each critical
infrastructure sector; and (3) privacy and civil liberties
safeguards. (Sec. 6) Requires a Comptroller General (GAO)
report on the effectiveness of the center. (Sec. 7) Directs the
Under Secretary to develop, maintain, and exercise adaptable
cyber incident response plans to address cybersecurity risks to
critical infrastructure. Requires the Secretary to make the
application process for security clearances relating to a
classified national security information program available to
sector coordinating councils, sector information sharing and
analysis organizations, and owners and operators of critical
infrastructure. Directs the Office of Management and Budget
(OMB) to ensure that data breach notification policies require
affected agencies, after discovering an unauthorized
acquisition or access, to notify: (1) Congress within 30 days,
and (2) affected individuals as expeditiously as practicable.
Allows the Attorney General (DOJ), heads of elements of the
intelligence community, or the Secretary to delay notice to
affected individuals for purposes of law enforcement
investigations, national security, or security remediation
actions. Requires OMB to assess agency implementation of data
breach notification policies. (Sec. 8) Prohibits this Act from
being construed to: (1) grant the Secretary any authority to
promulgate regulations or set standards relating to the
cybersecurity of private sector critical infrastructure that
was not in effect on the day before the enactment of this Act,
or (2) require any private entity to request the Secretary's
assistance or to implement any recommendation suggested by the
Secretary in response to such a request.
S. 2521.--Federal Information Security Modernization Act of
2014. (Public Law 113-283). December 18, 2014.
Amends the Federal Information Security Management Act of
2002 (FISMA) to: (1) reestablish the oversight authority of the
Director of the Office of Management and Budget (OMB) with
respect to agency information security policies and practices,
and (2) set forth authority for the Secretary of Homeland
Security (DHS) to administer the implementation of such
policies and practices for information systems. Requires the
Secretary to develop and oversee implementation of operational
directives requiring agencies to implement the Director's
standards and guidelines for safeguarding Federal information
and systems from a known or reasonably suspected information
security threat, vulnerability, or risk. Authorizes the
Director to revise or repeal operational directives that are
not in accordance with the Director's policies. Requires the
Secretary (currently, the Director) to ensure the operation of
the Federal information security incident center (FISIC).
Directs the Secretary to administer procedures to deploy
technology, upon request by an agency, to assist the agency to
continuously diagnose and mitigate against cyber threats and
vulnerabilities. Requires the Director's annual report to
Congress regarding the effectiveness of information security
policies to assess agency compliance with OMB data breach
notification procedures. Provides for OMB's information
security authorities to be delegated to the Director of
National Intelligence (DNI) for certain systems operated by an
element of the intelligence community. Directs the Secretary to
consult with and consider guidance developed by the National
Institute of Standards and Technology (NIST) to ensure that
operational directives do not conflict with NIST information
security standards. Directs agency heads to ensure that: (1)
information security management processes are integrated with
budgetary planning; (2) senior agency officials, including
chief information officers, carry out their information
security responsibilities; and (3) all personnel are held
accountable for complying with the agency-wide information
security program. Provides for the use of automated tools in
agencies' information security programs, including for periodic
risk assessments, testing of security procedures, and
detecting, reporting, and responding to security incidents.
Requires agencies to include offices of general counsel as
recipients of security incident notices. Requires agencies to
notify Congress of major security incidents within seven days
after there is a reasonable basis to conclude that a major
incident has occurred. Directs agencies to submit an annual
report regarding major incidents to OMB, DHS, Congress, and the
Comptroller General (GAO). Requires such reports to include:
(1) threats and threat actors, vulnerabilities, and impacts;
(2) risk assessments of affected systems before, and the status
of compliance of the systems at the time of, major incidents;
(3) detection, response, and remediation actions; (4) the total
number of incidents; and (5) a description of the number of
individuals affected by, and the information exposed by, major
incidents involving a breach of personally identifiable
information. Authorizes GAO to provide technical assistance to
agencies and inspectors general, including by testing
information security controls and procedures. Requires OMB to
ensure the development of guidance for: (1) evaluating the
effectiveness of information security programs and practices,
and (2) determining what constitutes a major incident. Directs
FISIC to provide agencies with intelligence about cyber
threats, vulnerabilities, and incidents for risk assessments.
Directs OMB, during the two-year period after enactment of this
Act, to include in an annual report to Congress an assessment
of the adoption by agencies of continuous diagnostics
technologies and other advanced security tools. Requires OMB to
ensure that data breach notification policies require agencies,
after discovering an unauthorized acquisition or access, to
notify: (1) Congress within 30 days, and (2) affected
individuals as expeditiously as practicable. Allows the
Attorney General, heads of elements of the intelligence
community, or the DHS Secretary to delay notice to affected
individuals for purposes of law enforcement investigations,
national security, or security remediation actions. Requires
OMB to amend or revise OMB Circular A-130 to eliminate
inefficient and wasteful reporting. Directs the Information
Security and Privacy Advisory Board to advise and provide
annual reports to DHS.
S. 2651.--DHS OIG Mandates Revision Act of 2014. (Public
Law 113-284). December 18, 2014.
Repeals requirements that the Department of Homeland
Security (DHS) Inspector General: (1) conduct an annual
evaluation of the Cargo Inspection Targeting System pursuant to
the Coast Guard and Maritime Transportation Act of 2004, (2)
conduct an annual review of Coast Guard Performance pursuant to
the Homeland Security Act of 2002 (HSA), and (3) conduct an
annual review of grants to states and high-risk urban areas
under HSA.
POSTAL NAMING BILLS
H.R. 43--To designate the facility of the United States
Postal Service located at 14 Red River Avenue North in Cold
Spring, Minnesota, as the ``Officer Tommy Decker Memorial Post
Office.'' (Public Law 113-204). December 16, 2014.
H.R. 78--To designate the facility of the United States
Postal Service located at 4110 Almeda Road in Houston, Texas,
as the ``George Thomas `Mickey' Leland Post Office Building.''
(Public Law 113-205). December 16, 2014.
H.R. 451--To designate the facility of the United States
Postal Service located at 500 North Brevard Avenue in Cocoa
Beach, Florida, as the ``Richard K. Salick Post Office.''
(Public Law 113-206). December 16, 2014.
H.R. 606--To designate the facility of the United States
Postal Service located at 815 County Road 23 in Tyrone, New
York, as the ``Specialist Christopher Scott Post Office
Building.'' (Public Law 113-147). August 8, 2014.
H.R. 1036--To designate the facility of the United States
Postal Service located at 103 Center Street West in Eatonville,
Washington, as the ``National Park Ranger Margaret Anderson
Post Office.'' (Public Law 113-110). June 9, 2014.
H.R. 1228--To designate the facility of the United States
Postal Service located at 123 South 9th Street in De Pere,
Wisconsin, as the ``Corporal Justin D. Ross Post Office
Building.'' (Public Law 113-111). June 9, 2014.
H.R. 1376--To designate the facility of the United States
Postal Service located at 369 Martin Luther King Jr. Drive in
Jersey City, New Jersey, as the ``Judge Shirley A. Tolentino
Post Office Building.'' (Public Law 113-139). July 25, 2014.
H.R. 1391--To designate the facility of the United States
Postal Service located at 25 South Oak Street in London, Ohio,
as the ``London Fallen Veterans Memorial Post Office.'' (Public
Law 113-207). December 16, 2014.
H.R. 1451--To designate the facility of the United States
Postal Service located at 14 Main Street in Brockport, New
York, as the ``Staff Sergeant Nicholas J. Reid Post Office
Building.'' (Public Law 113-112). June 9, 2014.
H.R. 1671--To designate the facility of the United States
Postal Service located at 6937 Village Parkway in Dublin,
California, as the ``James `Jim' Kohnen Post Office.'' (Public
Law 113-148). August 8, 2014.
H.R. 1707--To designate the facility of the United States
Postal Service located at 302 East Green Street in Champaign,
Illinois, as the ``James R. Burgess Jr. Post Office Building.''
(Public Law 113-208). December 16, 2014.
H.R. 1813--To redesignate the facility of the United States
Postal Service located at 162 Northeast Avenue in Tallmadge,
Ohio, as the ``Lance Corporal Daniel Nathan Deyarmin, Jr., Post
Office Building.'' (Public Law 113-140). July 25, 2014.
H.R. 2112--To designate the facility of the United States
Postal Service located at 787 State Route 17M in Monroe, New
York, as the ``National Clandestine Service of the Central
Intelligence Agency NCS Officer Gregg David Wenzel Memorial
Post Office.'' (Public Law 113-209). December 16, 2014.
H.R. 2223--To designate the facility of the United States
Postal Service located at 220 Elm Avenue in Munising, Michigan,
as the ``Elizabeth L. Kinnunen Post Office Building.'' (Public
Law 113-211). December 16, 2014.
H.R. 2291--To designate the facility of the United States
Postal Service located at 450 Lexington Avenue in New York, New
York, as the ``Vincent R. Sombrotto Post Office.'' (Public Law
113-149). August 8, 2014.
H.R. 2391--To designate the facility of the United States
Postal Service located at 5323 Highway N in Cottleville,
Missouri as the ``Lance Corporal Phillip Vinnedge Post
Office.'' (Public Law 113-113). June 9, 2014.
H.R. 2678--To designate the facility of the United States
Postal Service located at 10360 Southwest 186th Street in
Miami, Florida, as the ``Larcenia J. Bullard Post Office
Building.'' (Public Law 113-213). December 16, 2014.
H.R. 3027--To designate the facility of the United States
Postal Service located at 442 Miller Valley Road in Prescott,
Arizona, as the ``Barry M. Goldwater Post Office.'' (Public Law
113-247). December 18, 2014.
H.R. 3060--To designate the facility of the United States
Postal Service located at 232 Southwest Johnson Avenue in
Burleson, Texas, as the ``Sergeant William Moody Post Office
Building.'' (Public Law 113-115). June 9, 2014.
H.R. 3085--To designate the facility of the United States
Postal Service located at 3349 West 111th Street in Chicago,
Illinois, as the ``Captain Herbert Johnson Memorial Post Office
Building.'' (Public Law 113-214). December 16, 2014.
H.R. 3472--To designate the facility of the United States
Postal Service located at 13127 Broadway Street in Alden, New
York, as the ``Sergeant Brett E. Gornewicz Memorial Post
Office.'' (Public Law 113-151). August 8, 2014.
H.R. 3534--To designate the facility of the United States
Postal Service located at 113 West Michigan Avenue in Jackson,
Michigan, as the ``Officer James Bonneau Memorial Post
Office.'' (Public Law 113-216). December 16, 2014.
H.R. 3765--To designate the facility of the United States
Postal Service located at 198 Baker Street in Corning, New
York, as the ``Specialist Ryan P. Jayne Post Office Building.''
(Public Law 113-153). August 8, 2014.
H.R. 3957--To designate the facility of the United States
Postal Service located at 218-10 Merrick Boulevard in
Springfield Gardens, New York, as the ``Cynthia Jenkins Post
Office Building.'' (Public Law 113-218). December 16, 2014.
H.R. 4189--To designate the facility of the United States
Postal Service located at 4000 Leap Road in Hilliard, Ohio, as
the ``Master Sergeant Shawn T. Hannon, Master Sergeant Jeffrey
J. Rieck and Veterans Memorial Post Office Building.'' (Public
Law 113-219). December 16, 2014.
H.R. 4416--To redesignate the facility of the United States
Postal Service located at 161 Live Oak Street in Miami,
Arizona, as the ``Staff Sergeant Manuel V. Mendoza Post Office
Building.'' (Public Law 113-528). December 18, 2014.
H.R. 4443--To designate the facility of the United States
Postal Service located at 90 Vermilyea Avenue, in New York, New
York, as the ``Corporal Juan Mariel Alcantara Post Office
Building.'' (Public Law 113-220). December 16, 2014.
H.R. 4651--To designate the facility of the United States
Postal Service located at 601 West Baker Road in Baytown,
Texas, as the ``Specialist Keith Erin Grace, Jr. Memorial Post
Office.'' (Public Law 113-259). December 18, 2014.
H.R. 4919--To designate the facility of the United States
Postal Service located at 715 Shawan Falls Drive in Dublin,
Ohio, as the ``Lance Corporal Wesley G. Davids and Captain
Nicholas J. Rozanski Memorial Post Office.'' (Public Law 113-
222). December 16, 2014.
H.R. 4939--To designate the facility of the United States
Postal Service located at 2551 Galena Avenue in Simi Valley,
California, as the ``Neil Havens Post Office.'' (Public Law
113-224). December 16, 2014.
H.R. 5030--To designate the facility of the United States
Postal Service located at 13500 SW 250 Street in Princeton,
Florida, as the ``Corporal Christian A. Guzman Rivera Post
Office Building.'' (Public Law 113-225). December 16, 2014.
H.R. 5106--To designate the facility of the United States
Postal Service located at 100 Admiral Callaghan Lane in
Vallejo, California, as the ``Philmore Graham Post Office
Building.'' (Public Law 113-226). December 16, 2014.
H.R. 5331--To designate the facility of the United States
Postal Service located at 73839 Gorgonio Drive in Twentynine
Palms, California, as the ``Colonel M.J. `Mac' Dube, USMC Post
Office Building.'' (Public Law 113-266). December 18, 2014.
H.R. 5562--To designate the facility of the United States
Postal Service located at 801 West Ocean Avenue in Lompoc,
California, as the ``Federal Correctional Officer Scott J.
Williams Memorial Post Office Building.'' (Public Law 113-267).
December 18, 2014.
H.R. 5687--To designate the facility of the United States
Postal Service located at 101 East Market Street in Long Beach,
California, as the ``Juanita Millender-McDonald Post Office.''
(Public Law 113-268). December 18, 2014.
S. 885--A bill to designate the facility of the United
States Postal Service located at 35 Park Street in Danville,
Vermont, as the ``Thaddeus Stevens Post Office.'' (Public Law
113-189). November 26, 2014.
S. 1093--A bill to designate the facility of the United
States Postal Service located at 130 Caldwell Drive in
Hazlehurst, Mississippi, as the ``First Lieutenant Alvin
Chester Cockrell, Jr. Post Office Building.'' (Public Law 113-
191). November 26, 2014.
S. 1499--A bill to designate the facility of the United
States Postal Service located at 278 Main Street in Chadron,
Nebraska, as the ``Sergeant Cory Mracek Memorial Post Office.''
(Public Law 113-192). November 26, 2014.
S. 1512--A bill to designate the facility of the United
States Postal Service located at 1335 Jefferson Road in
Rochester, New York, as the ``Specialist Theodore Matthew
Glende Post Office.'' (Public Law 113-193). November 26, 2014.
VIII. ACTIVITIES OF THE SUBCOMMITTEES
SUBCOMMITTEE ON THE EFFICIENCY AND
EFFECTIVENESS OF FEDERAL PROGRAMS
AND THE FEDERAL WORKFORCE
Chairman: Jon Tester (D-MT)
Ranking Member: Rob Portman (R-OH)
I. Authority
The Subcommittee on the Efficiency and Effectiveness of
Federal Programs and the Federal Workforce oversees the
management, efficiency, effectiveness, and economy of all
agencies and departments in the Federal Government, including
the Federal workforce and Federal programs. The Subcommittee
has a broad authority for conducting oversight across the
Federal Government and for seeking to improve the efficiency of
Federal programs. In addition, the Subcommittee is responsible
for exploring policies that promote a skilled, efficient, and
effective Federal workforce which will, in turn, work to ensure
efficient and effective management of Federal programs.
II. Activity
During the 113th Congress, the Subcommittee on the
Efficiency and Effectiveness of Federal Programs and the
Federal Workforce held 10 hearings and introduced, or joined as
original co-sponsor, nine related pieces of legislation.
A. Hearings
Health Care in Rural America: Developing the Workforce and Building
Partnerships. May 23, 2013. (S. Hrg. 113-512)
The purpose of the hearing was to discuss efforts by the
Federal health care workforce to address the needs of rural
America, including veterans and Native Americans in those
communities. The hearing sought to identify some of the
challenges of this task, including efforts to recruit and
retain a quality Federal health care workforce, and to
highlight opportunities for collaboration and cost-sharing,
including stronger partnerships between agencies, local
individuals, and the private sector. In addition, the hearing
provided an opportunity to discuss how individuals in rural
communities are affected by a lack of access to health care
services, specifically mental health care, and what can be done
to improve access for these individuals.
Witnesses: Hon. Robert A. Petzel, Under Secretary for
Health, U.S. Department of Veterans Affairs; Hon. Yvette
Roubideaux, Director, Indian Health Service, U.S. Department of
Health and Human Services; Tom Morris, Associate Administrator
for Rural Health Policy, Health Resources and Services
Administration, U.S. Department of Health and Human Services;
Matt Kuntz, Executive Director, National Alliance on Mental
Illness for Montana; Ralph Ibson, National Policy Director;
Wounded Warrior Project.
Safeguarding our Nation's Secrets: Examining the Security Clearance
Process. June 20, 2013. (S. Hrg. 113-316)
The purpose of the joint subcommittee hearing was to review
how the Federal Government conducts investigations to determine
whether Federal employees and contractors are eligible for
access to classified information. The hearing examined the
management and oversight of the Federal employees and
contractors responsible for planning, conducting and reviewing
investigations, and issuing security clearances. The hearing
also examined the efficiency and effectiveness of the security
clearance process.
Witnesses: Hon. Patrick E. McFarland, Inspector General,
U.S. Office of Personnel Management; Merton W. Miller,
Associate Director of Investigations, Federal Investigative
Services, U.S. Office of Personnel Management; Stephen F.
Lewis, Deputy Director, Security Directorate, Office of the
Under Secretary of Defense (Intelligence), U.S. Department of
Defense; Brenda S. Farrell, Director, Defense Capabilities and
Management, U.S. Government Accountability Office.
Protecting our Northern Border: Enhancing Collaboration and Building
Local Partnerships. July 12, 2013. (S. Hrg. 113-537)
The purpose of the field hearing in Havre, Montana was to
identify some of the challenges confronting that task,
including overlapping jurisdictions of government agencies that
could impede our efforts and potentially create critical gaps
in security along the border. The hearing also sought to
identify and highlight various opportunities for collaboration
and cost-sharing, including stronger partnerships between
agencies, local officials, tribes, and the private sector to
secure our border and preserve the cross-border commerce that
is critical to economic development and job creation.
Witnesses: Don Brostrom, Sheriff of Hill County, Montana;
Nathan Burr, Havre Sector Vice President and U.S. Border Patrol
Agent, National Border Patrol Council; Debbie Vandeberg,
Executive Director, Havre Chamber of Commerce; Kumar Kibble,
Special Agent in Charge, Denver, U.S. Immigrations and Customs
Enforcement; Christopher Richards, Havre Sector Chief Patrol
Agent, U.S. Border Patrol; Robert Desrosier, Homeland Security
Director, Blackfeet Nation.
Strengthening Government Oversight: Examining the Roles and
Effectiveness of Oversight Positions Within the Federal
Workforce. November 19, 2013. (S. Hrg. 113-367)
The purpose of the hearing was to examine the various
positions within the Federal Government tasked with oversight
duties, including Inspectors General, privacy officers, and the
Office of Special Counsel. It hit upon some of the obstacles
currently preventing the performance of thorough and effective
oversight--whether it be the number of vacant oversight
positions across the government, a lack of resources devoted to
oversight or the lack of authority or access provided to
positions of oversight--and sought to identify potential
solutions to such obstacles.
Witnesses: Hon. Peggy E. Gustafson, Inspector General, U.S.
Small Business Administration; Hon. Michael Horowitz, Inspector
General, U.S. Department of Justice; Hon. Carolyn Lerner,
Special Counsel, U.S. Office of Special Counsel; Karen Neuman,
Chief Privacy and Freedom of Information Act Officer, U.S.
Department of Homeland Security; Wendy Ginsberg, Ph.D.,
Congressional Research Service, Library of Congress.
Safeguarding Our Nation's Secrets: Examining the National Security
Workforce. November 20, 2013. (S. Hrg. 113-368)
This hearing followed up on a previous subcommittee hearing
on security clearance reform. The focus was on the designation
of Federal positions as ``national security sensitive,'' as
well as the requirements for personnel to have access to
classified information. The hearing sought to examine the
impact these policies have on background investigations and the
adjudication of security clearances, as well as implications
for Federal employee rights and subsequent costs to the
taxpayer.
Witnesses: Brian A. Prioletti, Assistant Director, Special
Security Directorate, National Counterintelligence Executive,
Office of the Director of National Intelligence; Tim Curry
Deputy Associate Director for Partnership and Labor Relations,
Office of Personnel Management; Brenda Farrell, Director,
Defense Capabilities and Management, U.S. Government
Accountability Office; David Borer, General Counsel, The
American Federation of Government Employees; Angela Canterbury,
Director of Public Policy, Project on Government Oversight.
Examining the Use and Abuse of Administratively Uncontrollable Overtime
at the Department of Homeland Security. January 28, 2014. (S.
Hrg. 113-369)
The purpose of the hearing was to examine the instances of
Administratively Uncontrollable Overtime (AUO) abuse raised in
the Special Counsel's Report, and to learn more about how DHS
and U.S. Customs and Border Protection (CBP) are responding to
the recent investigative report, what disciplinary actions are
being taken, and what additional cases of payroll fraud have
been discovered. On October 31, 2013, the U.S. Office of
Special Counsel (OSC) issued a report to the President
detailing ``long-standing abuse of overtime payments by the
Department of Homeland Security.'' The report reveals that, for
years, Homeland Security employees have abused a fund meant to
compensate workers who must sometimes stay on duty beyond
normal business hours, such as law enforcement officers
responding to criminal activity. Despite a 2008 investigation
and subsequent pledge from DHS officials to rein in on the
misuse of AUO, the OSC report shows that numerous agencies
within the department continue to allow their employees to
illegally claim overtime pay. It is estimated that the practice
is costing taxpayers millions of dollars each year.
Witnesses: Hon. Carolyn Lerner, Special Counsel, U.S.
Office of Special Counsel; Ron Vitiello, Deputy Chief, U.S.
Border Patrol, U.S. Customs and Border Protection; Catherine
Emerson, Chief Human Capital Officer, U.S. Department of
Homeland Security; Brandon Judd, President, National Border
Patrol Council.
A More Efficient and Effective Government: Improving the Regulatory
Framework. March 11, 2014. (S. Hrg. 113-371)
The purpose of the hearing was to review progress made and
challenges faced by the Office of Information and Regulatory
Affairs in reviewing proposed rules and regulations. The
hearing also examined current and potential efforts to
streamline and reform the regulatory process.
Witnesses: Hon. Angus J. King, Jr., U.S. Senate; Hon.
Howard Shelanski, Administrator, Office of Information and
Regulatory Affairs, The Office of Management and Budget; Hon.
C. Boyden Gray, Founding Partner, Boyden Gray & Associates,
PLLC; Katherine McFate, President and Chief Executive Officer,
Center for Effective Government; Michelle Sager, Director,
Strategic Issues, U.S. Government Accountability Office.
A More Efficient and Effective Government: Cultivating the Federal
Workforce. May 6, 2014. (S. Hrg. 113-507)
The purpose of the hearing was to examine the state of the
Federal workforce, and the impact of factors such as the
Federal Government shutdown, sequestration, and hiring and pay
freezes on employee morale, productivity and efficiency, and
agency recruitment and retention efforts. It also discussed
ongoing efforts by agencies with the highest and lowest job
satisfaction rates, as well as innovative programs and actions
by agencies to overcome the ongoing challenges of recruiting
and retaining a highly capable and qualified workforce.
Witnesses: Hon. Katherine Archuleta, Director, U.S. Office
of Personnel Management; Hon. Carol Waller Pope, Chairman,
Federal Labor Relations Authority; Jeri L. Buchholz, Assistant
Administrator for Human Capital Management, National
Aeronautics and Space Administration; Paige Hinkle-Bowles,
Deputy Assistant Secretary of Defense for Civilian Personnel
Policy, U.S. Department of Defense; J. David Cox, National
President, American Federation of Government Employees; Colleen
M. Kelley, National President, National Treasury Employees
Union; Carol A. Bonosaro, President, Senior Executives
Association; Max Stier, President and Chief Executive Officer,
Partnership for Public Service.
A More Efficient and Effective Government: Examining Federal IT
Initiatives and the IT Workforce. June 10, 2014. (S. Hrg. 113-
534)
This hearing examined the state of major Federal
information technology projects, as well as the process through
which they are solicited and coordinated government-wide.
Through this discussion, the Subcommittee identified ways to
improve the process, reduce waste, and increase collaboration
and cost-sharing. The hearing also examined the state of the
Federal IT workforce and the qualifications and capacity of
information technology professionals within the Federal
Government.
Witnesses: Luke J. McCormack, Chief Information Officer,
U.S. Department of Homeland Security; Stephen W. Warren,
Executive in Charge of Information and Technology, U.S.
Department of Veterans Affairs; Donna K. Seymour, Chief
Information Officer, U.S. Office of Personnel Management; David
A. Powner, Director, Information Technology Management Issues,
U.S. Government Accountability Office; Christopher A. Miller,
Program Executive Officer, DOD Healthcare Management Systems,
U.S. Department of Defense.
A More Efficient and Effective Government: Examining Efforts to Address
Law Enforcement, Infrastructure and Human Capital Needs in the
Bakken. September 26, 2014. (S. Hrg. 113-587)
This field hearing held in Sidney, Montana examined how
local, State, and Federal officials are coordinating their law
enforcement efforts (including human and drug trafficking) and
addressed the infrastructure and human capital needs of the
region. The hearing also addressed how improved coordination
between local, State, tribal, and Federal officials can be
facilitated, and to highlight various proposals to address the
most urgent needs of local communities and the region.
Witnesses: Hon. A.T. ``Rusty'' Stafne, Chairman,
Assiniboine and Sioux Tribes of the Fort Peck Reservation; Hon.
Angela McLean, Lieutenant Governor, State of Montana; Leslie
Messer, Executive Director, Richland Economic Development
Corp.; Hon. Rick Norby, Mayor, Sidney, Montana; Hon. Michael W.
Cotter, United States Attorney, District of Montana; Michael
Gottleib, National High Intensity Drug Trafficking Areas
(HIDTA) Director, Office of National Drug Control Policy; Scott
Vito, Assistant Special Agent In Charge, Salt Lake City
Division, Federal Bureau of Investigation; Hon. Tim Foxx,
Attorney General, State of Montana; Hon. Craig Anderson,
Sheriff, Dawson County, Montana; Anthony Preite, State
Director, U.S. Department of Agriculture, Montana Office of
Rural Development; Mike Tooley, Director, Montana Department of
Transportation; John Dynneson, Deputy, Richland County
Sheriff's Office; Paul Groshart, Director, Richland County
Housing Authority; Loren Young, Chairman, Richland County
Commission.
III. Legislation
The following bills were considered by the Subcommittee on
the Efficiency and Effectiveness of Federal Programs and the
Federal Workforce during the 113th Congress:
S. 1120--The Land Management Workforce Flexibility Act--
Allows temporary seasonal Federal land management workers the
ability to compete for vacant permanent seasonal positions
identical to those they are already performing.
S. 1276--The Security Clearance Oversight and Reform
Enhancement Act--Increases accountability and oversight over
how the government conducts background investigations and
awards security clearances.
S. 1691--The Border Patrol Agent Pay Reform Act of 2013--
Ensures predictability of U.S. Border Patrol's pay system and
to improve the use of overtime and increase border patrol
manpower.
S. 1744--The Security Clearance Accountability, Reform, and
Enhancement Act--Requires action against misconduct relating to
background investigations and directs the President to review
and update guidance regarding security clearances.
S. 1809--Security Workforce and Whistleblower Protection
Act--Restores Merit Systems Protection Board access for
employees in sensitive positions.
S. 1953--Oversight Workforce Improvement Act--Expands
privacy protections over more oversight cases, makes oversight
officials more independent and clarifies that Inspectors
General may be paid at the same level as senior government
officials.
S. 2061--Preventing Conflicts of Interest with Contractors
Act--Prohibits the U.S. Office of Personnel Management from
awarding contracts to conduct final quality reviews to the same
contractor conducting background investigations.
S. 2541--Competitive Service Act--Allows Federal agencies
to share certification lists of well-qualified applicants for
similar jobs, allowing agencies to hire off each other's
certification lists and tap into talent across agencies is both
cost-effective and more efficient.
S. 3001--Wounded Warriors Federal Leave Act--Ensures that
first-year Federal employees with service-related disabilities
can get the medical care they need without being forced to take
unpaid leave.
IV. GAO Reports
On January 15, 2014, Senator Tester sent a letter to the
Government Accountability Office, requesting it report how the
Postal Service measures delivery times and adheres to service
standards.
On July 10, 2013, Senator Tester sent a letter to the
Government Accountability Office, requesting that it assess how
Federal agencies are adhering to quality standards in the
background investigation process and how the awarding of
security clearances across Federal agencies can be improved.
GAO accepted the Tester request and the report is to be
published in February of 2015.
SUBCOMMITTEE ON FINANCIAL AND CONTRACTING OVERSIGHT
Chairman: Claire McCaskill (D-MO)
Ranking Member: Ron Johnson (R-WI)
I. Authority
The Subcommittee on Financial and Contracting Oversight has
broad oversight over all aspects of Federal financial
management, Federal contracting, and policies to prevent the
waste, fraud, or abuse of taxpayer dollars.
II. Activity
During the 113th Congress, the Subcommittee on Financial
and Contracting Oversight held 18 hearings or roundtables,
authorized 32 investigations. Currently, the Subcommittee has
16 ongoing investigations.
The following is a summary of the major activities of the
Subcommittee, organized by topic.
A. Army Recruiting
The Subcommittee initiated new two investigations and held
two hearings on the management and oversight of Army
recruiting. The hearings focused on the Recruiting Assistance
Program and marketing and sponsorship contracts.
1. Investigation: Army Recruiting Assistance Programs
On September 13, 2013, Chairman McCaskill sent a letter to
the Secretary of the Army requesting information and documents
regarding Army Recruiting Assistance Programs (ARAP). Chairman
McCaskill requested that the Army provide a copy of the report
on its investigation into an ARAP contractor called Document
and Packaging, Inc. (Docupak) and the allegations that funds
were fraudulently distributed to Army Reserve and Army National
Guard recruiters. In addition to a copy of the report, Chairman
McCaskill requested a briefing on the findings in the report,
including whether the Army had considered suspending and
debarring Docupak from future contracts.
On November 1, 2013, and January 13, 2014, following the
Army briefing to Subcommittee Staff regarding ARAP and the
Army's reliance on Docupak, Chairman McCaskill requested
information and documents from the Army regarding the Army
Recruiting Assistance Program, the Army Reserve Recruiting
Assistance Program, and the National Guard Recruiting Program.
On November 1, 2013, Chairman McCaskill also sent a letter to
Docupak requesting a briefing detailing Docupack's operation
and oversight of ARAP, the internal reviews that were conducted
following the discontinuation of ARAP, and providing
information on other government contracts held by Docupak.
2. Fraud and Abuse in Army Recruiting Contracts (S. Hrg. 113-377)
(February 4, 2014)
This hearing focused on the creation and management of the
Recruiting Assistance Programs (RAP) operated by the Army
National Guard, Army, and Army Reserve. The hearing also
addressed the role of Docupak, the contractor responsible for
RAP, accountability for military officials involved with the
program, and the ongoing Army investigation of potentially
fraudulent activity. Specifically, the hearing examined
fraudulent payments under RAP, potentially involving over 1,200
recruiters and not limited to service members. There was also a
discussion of Army audits that found significant mistakes by
the National Guard in designing and implementing RAP.
Witnesses: Lt. Gen. William T. Grisoli, Director of the
Army Staff, U.S. Army; Maj. Gen. David E. Quantock, Commanding
General, U.S. Army Criminal Investigation Command and Army
Corrections Command; Joseph P. Bentz, Principal Deputy Auditor
General, U.S. Army Audit Agency; Lt. Gen. Clyde A. Vaughn
(ret.), former Director, Army National Guard; Col. Michael L.
Jones (ret.), former Division Chief, Army National Guard
Strength Maintenance Division; Philip Crane, President,
Docupak; and Lt. Col. Kay Hensen (ret.), Corporate Compliance
Officer, Docupak.
3. Investigation: Army and National Guard Marketing and Sponsorship
Contracts
Following the February 4, 2014 hearing on ``Fraud and Abuse
in Army Recruiting Contracts,'' Chairman McCaskill sent a
letter to the Secretary of the Army on February 27, 2014
requesting regular updates regarding the Recruiting Assistance
fraud cases being pursued by the Criminal Investigative
Command. Chairman McCaskill also requested additional
information regarding other National Guard recruiting and
marketing contracts within which there appeared to be evidence
of waste and abuse.
On March 31, 2014, Chairman McCaskill then sent letters to
the Coast Guard, Navy and Air Force, requesting information and
documents regarding their current fraud investigations as well
as their current recruiting and marketing contracts. On April
8, 2014 and April 11, 2014, Chairman McCaskill sent letters to
the Secretary of the Army requesting additional information and
documents regarding the Army recruiting and marketing
contracts, specifically with respect to sponsorships,
recruiting promotional items, and conferences.
Following the May 8, 2014 hearing on National Guard
Marketing and Recruiting contracts, Chairman McCaskill sent a
letter to the Army on June 13, 2014, requesting a copy of the
Army Inspector General's Report in the alleged failure of
senior Army officials to perform proper oversight of Recruiting
Assistance Programs. The Subcommittee had been assured that the
report would be completed first in January of 2014, and then in
May of 2014. As of June 13, 2014, the Subcommittee had not
received a copy of the completed report. Chairman McCaskill
requested that the Army provide a copy of the report, and if
the report was still incomplete, a status report on its
progress.
On June 19, 2014, Chairman McCaskill sent a letter to the
Acting Director of the Army National Guard requesting a copy of
the analysis that Army National Guard Staff conducted on the
Army National Guard's current sports marketing program and a
briefing for Subcommittee staff regarding the Army National
Guard's plans for professional sports contracts in 2015.
4. Waste and Abuse in National Guard Sponsorship and Marketing
Contracts (S. Hrg. 113-412) (May 8, 2014)
This hearing focused on reports of waste and abuse in Army
National Guard sponsorship and marketing contracts. In
particular, the hearing examined reports that National Guard
spending on NASCAR and other sports sponsorships--a significant
portion of its advertising budget--is an ineffective recruiting
tool. Maj. Gen. Judd Lyons testified that the National Guard's
oversight over the NASCAR spending was inadequate, and a review
of its sports marketing programs was underway.
The National Guard announced on August 6, 2014 that it
would end its NASCAR and IndyCar sponsorships. The Guard
acknowledged that in spite of committing $88 million over 3
years to sponsor NASCAR driver Dale Earnhardt Jr. and with a
heavy presence in NASCAR, the National Guard failed to generate
any recruits through the program.
Witnesses: Major General Judd H. Lyons, Acting Director,
Army National Guard; and Kathy A. Salas, Principal Assistant
Responsible for Contracting, National Guard Bureau.
B. Alaska Native Corporations
The Subcommittee continued its oversight of Alaska Native
Corporations.
1. Investigation: Fort Greely Renovation
After receiving information from whistleblowers alleging
waste and abuse during the renovation of a building in Ft.
Greely, Alaska by the U.S. Army Corps of Engineers (USACE),
Chairman McCaskill sent a letter to the Small Business
Administration (SBA) on March 28, 2014, requesting that the SBA
conduct a review of the renovation process, and, if necessary,
perform an audit of the acquisition process to determine
whether the acquisition was conducted in compliance with
applicable Federal laws and best practices.
On June 30, 2014, Chairman McCaskill sent a letter to the
USACE regarding USACE's actions during the acquisition process
for the renovation of Building660 in Ft. Greely, Alaska. In
light of information provided by the Small Business
Administration's Office of Inspector General (SBA OIG) that
raised concerns about USACE's actions during the acquisition
process, Chairman McCaskill requested documents from USACE,
including correspondence between USACE and SBA regarding the
Ft. Greely renovation project.
2. Investigation: Small Business Administration's 8(a) Program
On April 18, 2013, Chairman McCaskill sent a letter to the
Comptroller General for the Government Accountability Office
(GAO) requesting that GAO review how Federal agencies monitor
the work performed by subcontractors under 8(a) contracts.
On June 30, 2014 Chairman McCaskill sent a letter to the
Small Business Administration (SBA) requesting information
regarding the SBA's review of the participation of Alaska
Native Corporations (ANCs) in the 8(a) small and disadvantaged
business contracting program. In particular, Chairman McCaskill
requested a list of joint ventures awarded under the 8(a)
program, reports filed by ANC's detailing the benefits flowing
back to their communities, and information regarding SBA's
oversight of the new rules related to joint ventures and
follow-up contracts for ANCs and tribal entities.
C. Administration Oversight
The Subcommittee continued its oversight of the Obama
Administration's management and oversight of Federal
contracting activities.
1. Investigation: Department of Veterans Affairs Accreditation
On January 14, 2013, Chairman McCaskill sent a letter to
the Secretary of Veterans Affairs requesting a briefing on the
Department of Veterans Affairs' (VA) accreditation process. The
Chairman's letter followed reports of fraud and negligent
representation of veterans by individuals who had received
accreditation from the VA.
On March 31, 2014, Chairman McCaskill wrote to the VA
requesting copies of complaints regarding the accreditation
process and details of any actions that the VA had taken
related to those complaints. On July 30, 2014, Chairman
McCaskill sent a second request for the information regarding
complaints about the accreditation process. Although the VA
provided some information following the March 31 request, it
failed to provide all of the documents requested during the
four intervening months. As of the end of the Congress, the VA
had not yet provided the requested documents.
2. Investigation: Lifeline
The Subcommittee continued its investigation of the
Lifeline Program. On May 13, 2013, Chairman McCaskill sent a
letter to the Comptroller General for the Government
Accountability Office (GAO) requesting an evaluation of the
reforms put in place by the Federal Communication Commission
(FCC) to combat fraud in the Universal Service Fund Low Income
Program. In particular, Chairman McCaskill requested a forensic
audit of the Low-Income program to pinpoint specific case study
examples of fraud or abuse, identify additional reforms that
might be beneficial to the program, and determine the extent to
which the FCC's reforms have limited fraud with in the program.
On September 11, 2014, Chairman McCaskill assisted GAO in their
review of the Lifeline program by providing documents received
from the FCC regarding contractors employed to manage the
Lifeline program. GAO's review is expected to be complete in
2015.
3. Management of Air Traffic Controller Training Contracts (S. Hrg.
113-323) (January 14, 2014)
This hearing focused on areas of program and contract
mismanagement by the Federal Aviation Administration (FAA) with
regards to the Air Traffic Controller Optimum Training Solution
(ATCOTS) program. The hearing also addressed the FAA's failure
to adhere to recommendations from two separate audit reports
issued by the Department of Transportation's Office of
Inspector General. Additionally, the hearing sought to provide
clarity on the need for and costs of air traffic controller
training as well as the FAA's plans for improvement going
forward.
Witnesses: Mary Kay Langan-Feirson, Assistant Inspector
General for Acquisition and Procurement Audits at the U.S.
Department of Transportation Office of Inspector General;
Patricia McNall, Chief Acquisition Officer and Deputy Assistant
Administrator for Finance and Management at the Federal
Aviation Administration; and Lynn Dugle, President of Raytheon
Intelligence, Information, and Services.
4. Investigation: Department of Defense Contractor Inventory
On May 22, 2014, Chairman McCaskill sent a letter to the
Secretary of the Army requesting a briefing regarding the
Army's contractor inventory management practices. Chairman
McCaskill was alerted to possible mismanagement of contractor
inventory by a call to the Department of Defense Office of
Inspector General (DOD IG) Hotline. Because of these concerns,
Chairman McCaskill requested a briefing from the Army on its
contract management practices as well as on how the DOD IG
Hotline complaint was handled and investigated.
On July 21, 2014, Chairman McCaskill sent a letter to the
Secretary of Defense requesting information regarding the
Department of Defense's (DOD) failure to meet the statutory
requirements to track service contracts cited in the Government
Accountability Office' (GAO) report on defense acquisitions.
GAO's report on defense acquisitions addressed concerns raised
by Chairman McCaskill in a 2012 hearing on the use of
contractors by government agencies.
5. Oversight of Contractor Performance Information (S. Hrg. 113-382)
(March 6, 2014)
This hearing focused on how the Federal Government
collects, manages, and uses information about contractor
performance and integrity. The hearing reviewed how the Federal
Awardee Performance and Integrity Information System (FAPIIS)
has been implemented and used over its first four years. In
addition to addressing issues with FAPIIS, the hearing also
addressed shortcomings of the Past Performance Information
Retrieval System (PPIRS) and the Contractor Performance
Assessment Reporting System (CPARS).
Witnesses: Captain Brian Drapp, Commanding Officer of the
U.S. Navy Supply Corps at the Naval Sea Logistics Center; Kevin
Youel Page, Assistant Commissioner of the U.S. General Services
Administration Integrated Award Environment (IAE); and Beth
Cobert, Deputy Director for Management of the Office of
Management and Budget, was invited but did not attend.
D. Afghanistan & Iraq
The Subcommittee held one hearing and continued its ongoing
oversight of contracts in Iraq and Afghanistan. The hearing
focused on the implementation of the wartime contracting
reforms passed into law in the Fiscal Year 2013 National
Defense Authorization Act (NDAA).
1. Investigation: Justice Sector Support Program
On February 15, 2013, Chairman McCaskill sent a letter to
the Special Inspector General for Afghanistan Reconstruction
(SIGAR) requesting that as a part of their review of Rule of
Law Programs conducted by the State Department and the
Department of Defense in Afghanistan that they review the State
Department's Justice Sector Support Program (JSSP). Chairman
McCaskill requested the review due to concerns regarding the
effectiveness of JSSP, given the apparent absence of consistent
performance measures and the lack of State Department input or
oversight of contractor objectives.
In their January 2014 audit of the JSSP program, SIGAR
found that the State Department's Bureau of International
Narcotics and Law Enforcement Affairs' (INL) management and
oversight of the JSSP contract had failed to adequately assess
contractor performance and program efficacy. SIGAR recommended
that the State Department include in future JSSP and/or
successor program contracts, specific provisions to hold
contractors accountable for the successful completion of goals,
complete and share additional evaluations of JSSP, renegotiate
contractor agreements to ensure the right of the U.S.
Government to audit and inspect records, and finalize the
updates to the 2009 U.S. Government Rule of Law Strategy.
2. Investigation: DynCorp
On April 10, 2013, Chairman McCaskill wrote to the
Commanding General and Chief of Engineers for the United States
Army Corps of Engineers (USACE) regarding USACE's review of the
settlement agreement with DynCorp International, LLC. Chairman
McCaskill wrote to request materials related to the settlement
that USACE agreed to provide the Subcommittee during a meeting
the Army's settlement with DynCorp.
In April 2013, USACE provided the Subcommittee their review
of the settlement. They acknowledged that the settlement was
not ideal and could have resulted in terms more favorable to
the government. However, the review recognized that the USACE
team that settled the contract did so out of reasonable
concerns that it faced a poor litigating position against
DynCorp. USACE did make process changes in light of their
review, and established a team with better skills and knowledge
to handle contract terminations and settlements. Given that
USACE recognized mistakes on their part, that there were
reasonable conditions that lead the USACE team to release
DynCorp, and the new processes that were implemented by USACE
in light of the incident, we concluded our investigation.
On July 24, 2014, Chairman McCaskill sent a letter to the
Secretary of State regarding recommendations made by the State
Department Office of Inspector General (State OIG) to the
Department of State (State) regarding contractor DynCorp.
Between 2004 and 2014, the State OIG published 18 reports
related to contracts held by DynCorp, finding problems and
inefficiencies and making several recommendations to State.
Chairman McCaskill requested that State provide details on how
they are implementing the recommendations made by State OIG.
The State Department provided satisfactory responses to
Chairman McCaskill's request for additional details regarding
the implementation of changes recommended by State OIG. The
majority of State OIG's recommendations concerned (1) creating
better policies and procedures for contract administration and
Economy Act reimbursement and (2) providing reimbursements to
DOD and retrieving funds from DynCorp. In response, State has
published various reimbursement policies and procedures in
2012, 2013, and 2014. Additionally, DOD will receive a transfer
of approximately $25 million by the end of the 2014. State will
also be required to wait for the final report from the Defense
Contract Audit Agency (DCAA) before adopting a negotiating
position to retrieve money from DynCorp. State has indicated
that DynCorp disagreed with the OIG's report, which alleged
that DynCorp owed State money.
Disagreements between the State and State OIG arose from
two separate allegations that State owed DOD money. State
alleged that their original agreement with DOD supported their
view. When State determined that the agreement did not
sufficiently document this belief, State renegotiated the
agreement with DOD alleviating the need to return any money.
3. Implementation of Wartime Contracting Reforms (Hrg. 113-424) (July
16, 2013)
This hearing focused on the implementation of the wartime
contracting reforms passed into law in the Fiscal Year 2013
National Defense Authorization Act (NDAA). The hearing assessed
steps taken by the Defense Department, State Department, and
USAID to comply with the law, including requirements for the
management of service contracts, responsibility for contingency
contracting support, and use of risk assessments for private
security contracting functions.
Witnesses: Richard Ginman, Director of Defense Procurement
and Acquisition Policy, U.S. Department of Defense; Patrick
Kennedy, Under Secretary of State for Management, Department of
State; and Aman Djahanbani, Senior Procurement Executive and
Director, Office of Acquisition and Assistance, U.S. Agency for
International Development (USAID).
4. Investigation: Embassy Security
On September 11, 2013, Chairman McCaskill and Ranking
Member Johnson sent a letter to the Under Secretary for
Management at the Department of State regarding the performance
of Aegis, a contractor employed by the Department of State to
perform security functions at the U.S. embassy in Kabul. Prior
to sending the letter, the Subcommittee became aware of
evidence that embassy security was inadequate and that
testimony given by the Under Secretary during a 2013 hearing
was inconsistent with facts later discovered regarding
contractor performance and security measures. The letter
requested that the Under Secretary correct and explain any
inconsistencies in his testimony and provide additional
information regarding the role and performance of Aegis. On
September 17, 2013, the Under Secretary responded in a letter
addressing the inconsistencies in his testimony and providing
explanations for the changes that were made.
On November 19, 2014, Chairman McCaskill sent a letter to
the Under Secretary for Management at the Department of State,
following the Inspector General's report on the contract for
security services at the embassy in Kabul, Afghanistan.
Chairman McCaskill requested a briefing from State regarding
the Inspector General's finding of numerous deficiencies in the
management of the security contract, and detailing State's
failure to address the Inspector General's concerns.
5. Investigation: Afghan Ministries Assessment
On January 29, 2014, Chairman McCaskill wrote to
Administrator Rajiv Shah from U.S. Agency for International
Development (USAID) requesting information from USAID regarding
their assessment of the systems and internal controls for
receiving direct assistance from the United States government
within Afghan ministries. This request for information from
USAID followed a report from the Special Inspector General for
Afghanistan Reconstruction (SIGAR) which revealed that controls
need to be implemented to manage donor funds and mitigate risk.
On February 21, 2014, Chairman McCaskill sent a second request
for information and documents related to USAID's assessment of
the internal controls and systems used by Afghan ministries to
manage donor funds.
On April 30, 2014, Chairman McCaskill spoke with Dr. Shah
regarding USAID's assistance in Afghanistan. Following this
conversation, USAID provided the subcommittee with figures that
had been previously redacted which related to USAID's
assessment and expenditures in Afghanistan. USAID's assessments
showed significant vulnerabilities at the Afghan ministries,
including everything from unlocked filing cabinets to
opportunities for fraud and corruption that place taxpayer
dollars at risk.
E. Campus Sexual Assault
The Subcommittee initiated one investigation and held three
roundtables related to campus sexual assault. The Subcommittee
also released a report summarizing the results of its
investigation into how colleges and universities handle reports
of sexual assault.
1. Investigation: Campus Sexual Assault
On April 1, 2014, Chairman McCaskill sent letters to the
Department of Education and the Department of Justice
requesting information, documents, and a briefing to
Subcommittee staff regarding their efforts to ensure accurate
reporting of sexual assault incidents and to ensure
accountability for the perpetrators who commit the offences and
the institutions that fail to comply with Federal law.
On April 16, 2014, Chairman McCaskill sent an unprecedented
survey to hundreds of colleges and universities across the
country to gather information on how each institution conducts
outreach to students and staff on policies and procedures
related to sexual assault and sexual harassment, how incidents
are reported and investigated, how these reports are reviewed
and handled, and how students are notified about available
crisis and mental health services.
Following the dispersal of the survey, Chairman McCaskill
received information that the American Counsel of Education
(ACE) planned to hold a webinar for Colleges and Universities
instructing them on how to manage Congressional investigations
and the survey sent by Chairman McCaskill. On May 12, 2014,
Chairman McCaskill sent a letter to ACE regarding their
webinar, and on May 28, 2014, Chairman McCaskill sent a letter
to ACE requesting the materials used in the webinar.
On July 9, 2014, the Subcommittee issued a report that
included the results of the survey. The results demonstrated a
disturbing failure by many institutions to comply with the law
and with best practices in how they handle sexual violence
against students. The 440 institutions represented in the
survey are currently educating more than five million students
across the country. The survey's key findings included the fact
that more than 40 percent of schools have not conducted a
single investigation in 5 years, and 21 percent of schools
provide no training to faculty and staff on how to handle
sexual violence. More than 10 percent of institutions surveyed
do not have a Title IX coordinator, as required by law. The
survey also found that law enforcement officials at 30 percent
of institutions receive no training on how to respond to
reports of sexual violence.
On July 24, 2014, Chairman McCaskill sent a letter to the
National Collegiate Athletic Association (NCAA) regarding the
oversight of campus sexual assault by its member institutions
and encouraging the NCAA to explore how it can help its member
institutions address the problem of sexual assault on campus.
2. Complying with and Enforcing the Clery Act and the Campus SaVE Act
(May 19, 2014)
This roundtable focused on the challenges involved with
rules and regulations related to the Clery and Campus SaVE
Acts. In particular, the roundtable was framed by a discussion
about how to simplify the complex labyrinth that exists among
SaVE, Clery, and Title IX legislation, as well as the different
state statutes and standards of proof. The roundtable also
examined the utility of certain tools for estimating the scope
of the problem of sexual violence, such as Clery data and
climate surveys.
Participants: Laura Dunn, Executive Director of
SurvJustice; Caroline Fultz-Carver, Compliance Officer for
Title IX and the Clery Act at the University of South Florida;
Eric Heath, Chief of Police at George Mason University; Alison
Kiss, Executive Director of the Clery Center for Security on
Campus; Lynn Mahaffie, Director of Policy in the Office of
Postsecondary Education in the U.S. Department of Education;
Holly Rider-Milkovich, Director of the Sexual Assault
Prevention and Awareness Center (SAPAC) in the University of
Michigan; and Tracey Vitchers, Communications Coordinator for
Students Active for Ending Rape (SAFER).
3. Campus Sexual Assault--The Role of Title IX (June 2, 2014)
This roundtable focused on the role of Title IX and related
legislation in addressing sexual violence on college campuses.
The roundtable examined realistic ways to enforce Title IX in
the context of sexual violence and harassment, without unfairly
punishing innocent students through unreasonable penalties.
Ways to make campus sexual assault policies simpler and more
transparent were also discussed, as was the possibility of
streamlining or centralizing the government's ability to
investigate Title IX violations.
Participants: Cat Riley, Title IX Coordinator for the
University of Texas Medical Branch; Katie Eichele, Director for
the Aurora Center for Advocacy and Education; Jocelyn Samuels,
the Acting Assistant Attorney General for the Civil Rights
Division of the Department of Justice (DOJ); Anne Hedgepeth
with the American Association of University Women; John Kelly,
Special Project Organizer for Know Your IX; Dana Bolger,
Founding Co-Director of Know Your IX; Lindy Aldrich, Deputy
Director for the Victim Rights Law Center; and Deborah Noble-
Triplett, Assistant Vice President for Academic Affairs for the
University of Missouri.
4. Campus Sexual Assault--The Administrative Process and the Criminal
Justice System (June 23, 2014)
This roundtable focused on different ways for campus
administrators, law enforcement officials, and prosecutors to
coordinate their efforts to combat sexual assault on college
campuses. The roundtable examined the different obstacles to
such coordination, as well as successful models that have
overcome these obstacles. Some options that were discussed
included increased training for campus officials and law
enforcement, the creation of memoranda of understanding (MOUs)
between local and campus police officers, and making policies
both simpler and more victim-centric.
Participants: Katharina Booth, Chief Trial Deputy in the
Sexual Assault and Domestic Violence Unit in the office of the
District Attorney of the 20th District in Boulder, Colorado;
Alexandra Brodsky, co-founder at Know Your IX and law student
at Yale University; Nancy Chi Cantalupo, research fellow at the
Victim Rights Law Center and Adjunct Professor at Georgetown
Law School; Paul Denton, Chief of the Ohio State University
Police Division; Darcie Folsom, Director of Sexual Violence
Prevention and Advocacy at Connecticut College; Jennifer
Gaffney, Deputy Chief of the Special Victim's Bureau of the New
York District Attorney's Office; Carrie Hull, a detective in
the Ashland, Oregon Police Department; Mike Jungers, Dean of
Students at Missouri State University; Jessica Ladd-Webert,
Director of the Office of Victim Assistance at the University
of Colorado, Boulder; Rebecca O'Connor, Vice President of
Public Policy at RAINN (Rape, Abuse, and Incest National
Network); and Kathy Zoner, Chief of Police at the Cornell
University Police Department.
5. Investigation: The Collection of Crime Data
On September 11, 2014, Chairman McCaskill sent a letter to
the Comptroller General for the Government Accountability
Office (GAO) requesting that GAO review crime data collected by
the Bureau of Justice Statistics, the Federal Bureau of
Investigation, and the Department of Homeland Security.
Chairman McCaskill requested that GAO specifically review the
sources of the crime data, the data collection methods, the
subject matter of the data, the challenges posed by different
data collection methods, and the efforts being taken by these
agencies to improve data collection.
F. Chemical, Biological, Radiological, and Nuclear Threats
The Subcommittee initiated two investigations into the
management and oversight of contracts related to chemical,
biological, radiological, and nuclear threats.
1. Investigation: Anthrax
On June 18, 2013, Chairman McCaskill sent a letter to the
Deputy Inspector General for the Department of Homeland
Security (DHS) asking them to review the circumstances under
which DHS determined that drug-resistant anthrax constituted a
material threat to the United States. This letter followed
reports regarding the role of Richard Danzig, biodefense
advisor to the government and Director of the company what made
the antitoxin for Anthrax, in the decision to classify drug-
resistant Anthrax as a material threat.
On June 18, 2013, Chairman McCaskill sent a letter to the
Office of the Inspector General for the Department of Defense
(DOD IG) requesting that DOD IG review the circumstances under
which the Department of Defense (DOD) awarded contracts to
Richard Danzig for the provision of biodefense-related
consulting services. Chairman McCaskill was concerned that Mr.
Danzig had improper influence over the decision to heavily fund
the development and stockpiling of Anthrax antitoxin due to his
positions as a former Secretary of the Navy and at the time of
the contract award, biodefense advisor to the government and
member of the Board of Directors of Human Genome Sciences,
Inc., the developer of the antitoxin.
On November 13, 2013, Chairman McCaskill sent a letter to
the Assistant Secretary for Preparedness and Response for the
department of Health and Human Services (HHS) regarding Project
BioShield, a program designed to promote the expeditious
creation of medical countermeasures for use against chemical,
biological, radiological, and nuclear agents. This program
authorized HHS to procure contracts for countermeasures through
limited competition and sole source contracts between 2004 and
2014. Chairman McCaskill requested information regarding these
contracts and the contracting process to determine whether
funds were being judiciously spent and whether waste, fraud, or
abuse took place during their procurement.
2. Investigation: BioWatch
On January 28, 2014, Chairman McCaskill and Senator Coburn
sent a letter to the Comptroller General of the Government
Accountability Office (GAO) asking to co-request the review of
the technical capabilities of the Department of Homeland
Security's BioWatch program requested by members of the House
Committee on Energy and Commerce.
G. Counternarcotics
The Subcommittee continued its oversight of
counternarcotics contracts. On May 30, 2014, Chairman McCaskill
sent a letter to the Secretary of Defense requesting
information regarding the Department of Defense's (DOD)
counternarcotics contracts. The Chairman's request followed
reports by the Department of Defense Inspector General (DOD IG)
that one counternarcotics contractor, Northrop Grumman,
improperly charged the U.S. Government more than $100 million
over almost 6 years. Chairman McCaskill requested a briefing
from DOD that would include an explanation of how the
overbilling occurred and how DOD plans to recover the charges.
In the wake of the DOD IG's report on counternarcotics
contracts management, Chairman McCaskill wrote to the Inspector
General for the Department of State (State IG) on May 30, 2014,
requesting that the State IG review the State Department's
(State) counternarcotics contracts. The predecessor of the
Subcommittee on Financial and Contracting Oversight, the
Subcommittee on Contracting Oversight, then chaired by Senator
McCaskill, released a report in 2011 that reviewed State's
counternarcotics contracts and found a lack of contract
oversight. Given the DOD IG's report on DOD counternarcotics
contracts and that several of State's counternarcotics
contracts were with the same subcontractor used by Northrop
Grumman, Chairman McCaskill requested that the State IG conduct
a review to ensure that similar overbilling and waste had not
occurred.
H. Duplication
The Subcommittee held two hearings focusing on overlap and
duplication among Federal agencies.
1. A More Efficient Government: Streamlining Overseas Trade and
Development Agencies (S. Hrg. 113-256) (December 11, 2013)
This hearing focused on ways to examine opportunities to
improve the efficiency and effectiveness of Overseas Private
Investment Corporation (OPIC), and the U.S. Trade and
Development Agency (TDA). The hearing examined the lack of
independent oversight of both agencies, the agencies'
functions, the level to which OPIC's investments comport with
its development mission, and the apparent lack of transparency
of TDA's awards. The hearing also addressed what opportunities
may exist to streamline or combine the functions of OPIC and
TDA, including financial management and oversight, with other
Federal agencies.
Witnesses: Elizabeth Littlefield, President; and CEO,
Overseas Private Investment Corporation, and Leocadia Zak,
Director, U.S. Trade and Development Agency.
2. A More Efficient and Effective Government: The National Technical
Information Service (S. Hrg. 113-511) (July 23, 2014)
This hearing focused on the role of the National Technical
Information Service (NTIS), a little-known agency whose
valuable mission to maintain a database of technical government
documents has become largely obsolete with the advent of the
internet. The hearing also examined the NTIS's strategy of
selling services to other government agencies, draining Federal
money, in order to maintain its database. The proposed
bipartisan ``Let Me Google that for You'' Act, which would
allow the government to more efficiently maintain the core
services provided by NTIS without inefficient duplication, was
also discussed.
Witnesses: Valerie Melvin, Director of Information
Management and Technology Resource Issues at GAO; and the
Honorable Bruce Borzino, Director of the National Technical
Information Service.
I. Energy Department Contracts
The Subcommittee continued its oversight of contract
management and oversight at the Department of Energy.
1. Investigation: Department of Energy
On September 13, 2013, Chairman McCaskill sent Senator
Wyden, Chairman of the Committee on Energy and Natural
Resources, information regarding the Department of Energy's
(DOE) reimbursement of contractors' legal fees for defending
against whistleblower reprisal claims, for the committee's use
in their oversight of DOE.
On June 24, 2014, Chairman McCaskill sent a letter
requesting DOE's response to the questions for the record that
were provided on March 26, 2014.
On October 20, 2014, Chairman McCaskill sent a letter to
DOE regarding DOE IG's allegation that they could not reach a
conclusion regarding the termination of Donna Busche because
DOE contractors had refused to adequately respond and provide
documents. Chairman McCaskill requested that DOE provide a
briefing to Subcommittee staff detailing DOE's plans to address
the contractor's lack of cooperation with DOE IG's request.
2. Contract Management by the Department of Energy (S. Hrg. 113-294)
(June 27, 2013)
This hearing examined the Department of Energy's long
history of poor oversight in the Office of Environmental
Management. The hearing examined the Department's oversight of
environmental remediation at active cleanup sites, including
its ability to manage and control the projects' costs,
schedules, and safety. The hearing also assessed the
Department's reliance on cost-based contracts and examined a
handful of contractors who continue to be awarded contracts at
multiple facilities despite a record of mismanagement.
Witnesses: Gregory H. Friedman, Inspector General,
Department of Energy Office of Inspector General; Joseph F.
Bader, Board Member, U.S. Defense Nuclear Facilities Safety
Board; J.E. ``Jack'' Surash, Deputy Assistant Secretary,
Acquisition and Project Management, Office of Environmental
Management, U.S. Department of Energy; Michael Graham,
Principal Vice President, Bechtel National, Inc.; Michael
McKelvy, President and Division Chief, Executive Government,
Environment, and Infrastructure Division, CH2M HILL; and Frank
Sheppard, Jr., Vice President and Deputy Project Manager,
Parsons Corporation.
3. Whistleblower Retaliation at the Hanford Nuclear Site (S. Hrg. 113-
370) (March 11, 2014)
This hearing focused on safety culture and whistleblower
retaliation by Department of Energy (DOE) contractors at the
Hanford Waste Treatment Plant (WTP). The hearing examined a
litany of cost overruns and schedule delays in connection with
the plant, as well as allegations that DOE and its contractors
engaged in retaliation against employees who raised concerns
about the safety of the WTP's design and construction. The
firing of whistleblowers who raised safety concerns reflected a
chilled atmosphere regarding safety at the WTP.
Witnesses: Bill Eckroade, Deputy Chief of Operations,
Office of Health Safety and Security, U.S. Department of
Energy; Matt Moury, Deputy Assistant Secretary for Safety,
Security and Quality Programs, Environmental Management, U.S.
Department of Energy; James Taylor, Senior Vice President,
Global Management and Operations Services, URS Corporation;
Michael Graham, Principal Vice President, Bechtel National,
Inc.
4. Whistleblower Retaliation at the Hanford Nuclear Site (March 11,
2014)
This roundtable focused on the safety culture at the
Hanford Waste Treatment Plant (WTP) and the allegations of
whistleblower retaliation that resulted when safety and
technical concerns were brought to the attention of the
Department of Energy (DOE) and contractor management. The
roundtable also examined the large legal fees that can be
racked up in whistleblower lawsuits, with taxpayers footing
bills for millions of dollars while whistleblowers are slowly
ground down in a barrage of filings.
Participants: Former WTP Manager for Environmental and
Nuclear Safety; Donna Busche, former WTP Manager of Research
and Technology Dr. Walter L. Tamosaitis; and Executive Director
of Hanford Challenge Tom Carpenter.
5. Investigation: ORISE Fellowship Program
While conducting oversight of POW/MIA accounting, Chairman
McCaskill became aware that a Department of Defense component
known as the Joint Prisoner of War/Missing in Action Accounting
Command (JPAC) relies heavily on members of the Oak Ridge
Institute for Science and Education (ORISE) fellowship program
to accomplish its mission, and that a significant portion of
what JPAC pays for fellows goes towards overhead. On September
13, 2013, Chairman McCaskill sent a letter to the Department of
Energy (DOE) and Oak Ridge Associated Universities requesting
information about the ORISE fellowship program. In addition to
requesting information about the rules and nature of the
fellowship program, Chairman McCaskill requested a briefing to
better understand the extent to which there exists oversight of
the program by government officials.
On January 16, 2014, Chairman McCaskill sent a letter to
the President and Chief Executive Office of Oak Ridge
Associated Universities requesting that he investigate
allegations that an ORISE Fellow working at the JPAC, named
Paul Cole, had harassed several individuals while at JPAC.
On January 31, 2014, after conducting a review of the ORISE
program, Chairman McCaskill sent a letter to the Comptroller
General for the Government Accountability Office (GAO)
requesting that GAO review the ORISE fellowship program to
determine the cost of the ORISE fellowship program, the
benefits afforded to ORISE fellows, and what oversight, if any,
exists for the program.
J. Federal Housing Administration
The Subcommittee initiated one investigation into the
Federal Housing Administration's Real Estate Owned Properties
Program.
On July 7, 2014, Chairman McCaskill sent a letter to the
Assistant Secretary for Housing at the Department of Housing
and Urban Development regarding the Federal Housing
Administration's (FHA) Real Estate-Owned (REO) properties
program. This request followed a Government Accountability
Office (GAO) report that found that FHA's divided property
custody approach between mortgage services and REO contractors
had jeopardized billions of dollars in potential savings. To
conduct oversight of the REO program, Chairman McCaskill
requested information related to Field Service Managers, Asset
Managers, and REO disposition practices.
On December 5, 2014, Chairman McCaskill sent a letter to
the Acting Assistant Secretary and Federal Housing
Administration Commissioner, expressing gratitude that FHA was
beginning to address the deficiencies in contract management
outlined by GAO. Chairman McCaskill encouraged FHA to continue
its oversight of contractors, and to use all available tools to
ensure that contractors continue to perform satisfactorily.
K. Durable Medical Equipment
The Subcommittee initiated one investigation and held one
hearing to review oversight of durable medical equipment
reimbursements under Medicare Part B by the Centers for
Medicare and Medicaid Services, including its efforts to
control costs and detect and prevent abusive practices and
improper payments.
1. Oversight and Business Practices of Durable Medical Equipment
Companies, Part I (S. Hrg. 113-322) (April 24, 2013)
This hearing reviewed payments by the Centers for Medicare
& Medicaid Services (CMS) under Medicare Part B to suppliers of
medical products such as diabetic testing equipment, CPAP
machines, power mobility devices, and back braces, also known
as durable medical equipment (DME). The hearing also examined
the promotion and marketing of these types of products by DME
companies to patients and their doctors. The hearing assessed
CMS' oversight of DME reimbursements under Medicare Part B,
including its efforts to control costs and detect and prevent
abusive practices and improper payments.
Witnesses: Invited but Failed to appear: Jon Letko, U.S.
Healthcare Supply, LLC; Invited: Dr. Steve Silverman, Med-Care
Diabetic and Medical Supplies; Peter Budetti, Deputy
Administrator and Director, Center for Program Integrity,
Centers for Medicare & Medicaid Services; Laurence Wilson,
Director, Chronic Care Policy Group, Center for Medicare,
Centers for Medicare and Medicaid Services; Charlene Stanley,
Zone Program Integrity Contractor Operations Director,
AdvanceMed Corporation.
2. Oversight and Business Practices of Durable Medical Equipment
Companies, Part II (S. Hrg. 113-322) (May 22, 2013)
This hearing was a continuation of the Subcommittee's April
24, 2013 hearing on durable medical equipment (DME). Two
witnesses invited by the Subcommittee to provide testimony at
that hearing failed to appear. The Subcommittee subpoenaed
these witnesses to appear and answer questions regarding their
marketing practices.
The witness representing U.S. Healthcare Supply, LLC
asserted his Fifth Amendment right and was excused from the
hearing. The witness from Med-Care Diabetic & Medical Supplies
answered questions regarding his company's sale and
reimbursement of DME to Medicare beneficiaries under Medicare
Part B. He also discussed the promotion and marketing of DME to
Medicare beneficiaries, including his compliance with
applicable statutes and regulations. Further, he responded to
inquiries about audits and closed investigations relating to
the sale of DME under Medicare Part B.
Witnesses: Jon Letko, U.S. Healthcare Supply, LLC; and Dr.
Steve Silverman, Med-Care Diabetic and Medical Supplies.
3. Investigation: Durable Medical Equipment Follow-up
On June 19, 2013, Chairman McCaskill sent a letter to the
Department of Health and Human Services (HHS), providing a list
of companies about which the Subcommittee had received
complaints for HHS to review and, if warranted, conduct
investigations into wrongdoing.
4. Investigation: Healthcare.gov
In response to information provided by whistleblowers,
Chairman McCaskill sent a letter on May 15, 2014 to the
Department of Health and Human Services Inspector General (HHS
IG) requesting that the HHS IG review allegations of wrongdoing
on the Healthcare.gov contract by Cognosante, a subcontractor
of the prime contractor Serco.
On November 22, 2013, Chairman McCaskill sent a letter to
the Comptroller General for the Government Accountability
Office (GAO) requesting a review of the award, management, and
oversight of contracts for websites related to the
Healthcare.gov platform. Following a 2010 Subcommittee hearing
regarding the management and oversight of contracts awarded by
the Centers for Medicare and Medicaid Services (CMS), reports
surfaced that CMS was not following the recommendations set
forth in the related GAO report. Chairman McCaskill, therefore,
requested that GAO review all aspects of contract management
and oversight for the Healthcare.gov platform, including those
contracts awarded by CMS.
L. Inspectors General
1. Investigation: Department of Homeland Security Office of Inspector
General
On June 27, 2013, Chairman McCaskill sent a letter to
Deputy Inspector General for the Department of Homeland
Security, Charles Edwards, informing him of allegations of
misconduct that had been brought to the Subcommittee's
attention by several whistleblowers. Chairman McCaskill's
letter laid out the allegations against Edwards and requested
information and documents that would help the Subcommittee in
its investigation. On October 30, 2013, Chairman McCaskill and
Ranking Member Johnson wrote a second letter to Deputy
Inspector Edwards re-requesting the information and documents
requested on June 27, 2013. As of June 27, 2013, Edwards had
produced partial responses to the requests made by Chairman
McCaskill and several employees had refused interviews.
On April 23, 2014, Chairman McCaskill and Ranking Member
Johnson sent a letter to the Chair of the Council of the
Inspectors General on Integrity and Efficiency informing the
council that the Subcommittee had concluded its bipartisan
investigation of Deputy Inspector General Charles Edwards, and
had found that Mr. Edwards jeopardized the independence of the
Office of the Inspector General and abused agency resources.
The letter provided a copy of the report produced by the
Subcommittee and requested that the council conduct an
investigation into the allegations of wrong doing, as required
by the Inspector General Act.
On June 13, 2014, in response to the request by Ranking
Member Zoe Lofgren for information regarding the Subcommittee's
investigation into Deputy Inspector General Charles Edwards,
Chairman McCaskill and Ranking Member Johnson provided a copy
of the relevant portion of the interview transcript referred to
in the report by the Subcommittee.
2. Investigation: The Denali Commission
On September 23, 2013, Chairman McCaskill and Chairman Issa
sent a letter to the Office of Management and Budget (OMB)
regarding the independence of the Denali Commission's Office of
Inspector General. This letter responded to reports that the
Denali Commission planned to apply a provision of the Dodd-
Frank Wall Street Reform and Consumer Protection Act to the
Denali Commission, which would change the head of the Denali
Commission and compromise the independence of the Inspector
General. Chairmen McCaskill and Chairman Issa requested that
OMB provide guidance by responding in writing to the Denali
Commission and the Inspector General, and publish the List of
Designated Federal Entities in the Federal Register.
On December 2, 2013, OMB responded to Chairmen McCaskill
and Chairman Issa's concerns regarding the Denali Commission,
informing McCaskill that the Denali Commission had received the
necessary guidance. OMB published its list of Designated
Federal Entities in on January 10, 2014 for the first time in
four years.
3. Oversight of Small Agencies (S. Hrg. 113-409) (April 10, 2014)
This hearing focused on the processes and mechanisms by
which small agencies and other Federal entities without
statutory inspectors general receive oversight. The hearing
examined the challenges faced by both large and small IG
offices in providing oversight to small agencies. The hearing
also examined potential legislative actions to improve the
oversight of small agencies.
Witnesses: Hon. Peggy E. Gustafson, Inspector General of
the U.S. Small Business Administration; Hon. Osvaldo L.
Gratacos, Inspector General of the Export-Import Bank of the
United States; Hubert Sparks, Inspector General of the
Appalachian Regional Commission; Michael G. Carroll, Acting
Inspector General of the U.S. Agency for International
Development; and Beryl Davis, Director of Financial Management
and Assurance of the U.S. Government Accountability Office.
M. Police Militarization
1. Investigation: Police Militarization
In August 2014, Subcommittee staff began an investigation
into the militarization of police forces, and the means by
which local law enforcement agencies receive military-grade
equipment and weapons. On August 27, 2014, Chairman McCaskill
sent letters to DOD, DOJ, and DHS requesting information and
documents regarding the programs that they have that allow
local law enforcement to receive military-grade equipment. As a
part of this investigation, the Subcommittee staff also met
with stakeholders in the law enforcement community, community
activists, DOJ, DHS, and DOD officials to discuss their views
and concerns.
This investigation culminated in a full committee hearing
on September 9, 2014, chaired by Senator McCaskill, entitled
``Oversight of Federal Programs for Equipping State and Local
Law Enforcement.'' This hearing included witnesses from DHS,
DOD, DOJ, the Police Foundation, The National Tactical Officers
Association, and the National Association for the Advancement
of Colored People, as well as a photojournalist who was present
during the protests that took place in Ferguson, MO, and an
academic who has specialized in studying the militarization of
police forces.
The hearing revealed that 36 percent of the equipment sent
to local police departments through the Department of Defense
(DOD) was either never or little used by the military, that
more than 450 guns have been lost by state and local police
departments that were sent as part of the DOD programs, and
that local police departments in 49 of 50 states have more
Mine-Resistant Ambush Protected Vehicles (MRAPs) than their
state's National Guard units.
N. Postal Service
1. Investigation: Postal Service
On February 4, 2014, Chairman McCaskill sent a letter to
the Postmaster General requesting information and documents to
help the Subcommittee's investigation into the relationship
between the United States Postal Service (USPS), United Parcel
Service (UPS), and FedEx, as it relates to ``last mile''
delivery services or Parcel Select contracts undertaken by
USPS.
On February 4, 2014, Chairman McCaskill sent a letter to
the Comptroller General for the Government Accountability
Office (GAO) requesting that GAO review USPS agreements with
FedEx and UPS and conduct a cost study to assess the accuracy
of the annual costs attributable to the Parcel Select mail
class.
On August 1, 2014 Chairman McCaskill and Ranking Member
Johnson sent a letter to members of the Committee on
Appropriations requesting that they include language in any
omnibus appropriations legislation or continuing resolution
that would prevent USPS from closing or consolidating mail
processing facilities during Fiscal Year 2015.
O. POW/MIA
The Subcommittee initiated an investigation and held a
hearing on the management and oversight of POW/MIA recovery
activities at the Department of Defense.
1. Investigation: POW/MIA
On July 8, 2013, Chairman McCaskill sent a letter to the
Commander of the Joint POW/MIA Accounting Command (JPAC)
regarding allegations of waste, fraud and abuse at JPAC that
had been investigated in an internal JPAC report. Chairman
McCaskill requested a copy of the internal JPAC report, a
briefing on the findings, and JPAC's response, related
communications, evaluations, or findings related to the report.
Following the hearing entitled ``Mismanagement of POW/MIA
Accounting'' Chairman McCaskill and Senator Ayotte sent a
letter on September 13, 2013 to the Secretary of Defense
discussing the findings of the hearing and the Department of
Defense's (DOD) plans to implement changes to improve the
organizational structure and communication within the Joint
Prisoner of War/Missing in Action Accounting Command (JPAC) and
the Defense Prisoner of War/Missing Person Personnel Office
(DPMO). Chairman McCaskill and Senator Ayotte requested that
DOD provide detailed information regarding their plan to
implement changes recommended by the Government Accountability
Office (GAO) and assurances that DOD would investigate
whistleblower claims and protect whistleblowers from
retaliation.
On September 13, 2013, Chairman McCaskill sent a letter to
the Department of Defense Office of Inspector General (DOD IG)
urging the investigation of alleged hostile work environments
within the POW/MIA accounting community and the review of the
POW/MIA accounting community as a whole.
On October 25, 2013, Chairman McCaskill sent a letter to
the Secretary of Defense regarding reports that the DOD was
staging ``arrival'' ceremonies for recovered remains that were
already at the JPAC Central Identification Laboratory (CIL).
Chairman McCaskill requested detailed information and documents
regarding these ceremonies and all representations made to the
families of the identified service members by DOD. Chairman
McCaskill also requested a briefing regarding the DOD's
progress implementing recommended changes to DOD's management
of POW/MIA accounting practices.
On January 9, 2014, Chairman McCaskill and Senator Ayotte
sent a letter to the Secretary of Defense regarding DOD's
efforts to implement reforms, including a review by Cost
Assessment and Program Evaluation (CAPE). While pleased that
reform was taking place, the Senators remained concerned that
DOD was not adequately addressing serious problems in the
accounting community such as transparency, infrequent
reporting, and the absence of honest accountability. Chairman
McCaskill and Senator Ayotte alerted DOD of the new reporting
requirements included in the 2014 National Defense
Authorization Act, and requested a briefing following the
completion of the CAPE evaluation.
2. Mismanagement of POW/MIA Accounting (S. Hrg. 113-293) (August 1,
2013)
This hearing focused on the Defense Department's financial
management and oversight of its accounting mission. It examined
the roles of JPAC, DPMO, CIL, and LSEL. The hearing examined
the discrepancy between increased funds allocated for the
identification of missing personnel and the lack of any
significant increase in identifications. The hearing also
involved a discussion of the role of communication and
coordination within the Department of Defense, the operational
responsibilities of the various agencies, and the steps that
can be taken to help the Department better fulfill its
accounting mission.
Witnesses: Major General Kelly K. McKeague, Commander,
Joint POW/MIA Accounting Command (JPAC); Major General W.
Montague Winfield, (Ret.), Deputy Assistant Secretary of
Defense for POW/Missing Personnel Affairs and Director, Defense
Prisoner of War/Missing Personnel Office (DPMO); and John A.
Goines, Chief, Life Sciences Equipment Laboratory (LSEL),
United States Air Force.
P. Access to Classified Information and Secure Facilities
The Subcommittee continued its oversight of how government
agencies allow access to classified information and secure
facilities.
1. Investigation: Security Clearances
On July 10, 2013, Chairman McCaskill sent a letter to the
Comptroller General for the Government Accountability Office
(GAO), requesting that GAO evaluate the differences in the
quality and depth of security clearance background
investigations that agencies use to allow access to classified
national security information.
On December 9, 2013, Chairman McCaskill sent a letter to
the Chair of the Council of the Inspectors General on Integrity
and Efficiency (CIGIE) requesting that CIGIE review the role of
Inspectors General in the security clearance review process and
evaluate the procedures used by the Inspectors General to
ensure that relevant information is shared with security
clearance review offices. Chairman McCaskill additionally
requested that CIGIE prepare and disseminate guidelines and
best practices for Inspectors General participation in the
security clearance process.
On April 7, 2014, Chairman McCaskill and Senators Collins,
Ayotte, and Heitkamp sent a letter to Chairman Carper and
Ranking Member Coburn urging the mark up of the bill introduced
on October 30, 2013, entitled ``The Enhanced Security Clearance
Act of 2013.''
On July 21, 2014, Chairman McCaskill and Chairman Carper
sent a letter to the Secretary of the Department of Homeland
Security (DHS) regarding U.S. Citizen and Immigration Services'
(USCIS) decision to award a $190 million contract to U.S.
Investigation Services, Inc., (USIS). USUS is a contractor that
was joined in a lawsuit on behalf of the Department of Justice
alleging a systematic failure by USIS to adequately conduct
security clearance investigations. Chairmen McCaskill and
Carper requested information and a briefing regarding the DHS's
acquisition process including the nature of the services
contracted from USIS and the source selection procedures used.
2. Safeguarding Our Nation's Secrets: Examining the Security Clearance
Process (S. Hrg. 113-316) (June 20, 2013)
This joint hearing, held with the Subcommittee on the
Efficiency and Effectiveness of Federal Program and the Federal
Workforce, reviewed how the Federal government conducts
investigations to determine whether Federal employees and
contractors are eligible for access to classified information.
The hearing examined the management and oversight of the
Federal employees and contractors responsible for planning,
conducting, and reviewing investigations and issuing security
clearances. The hearing also examined the efficiency and
effectiveness of the security clearance process.
Witnesses: Hon. Patrick E. McFarland, Inspector General for
the U.S. Office of Personnel Management (OPM) accompanied by
Michelle B. Schmitz, Associate Inspector General for
Investigations for OPM; Merton W. Miller, Associate Director of
Investigations of the Federal Investigative Services (FIS) for
OPM; Stephen F. Lewis, Deputy Director for the Security
Directorate Office of the Under Secretary of Defense
(Intelligence) for the U.S. Department of Defense accompanied
by Stanley L. Sims, Director of the Defense Security Service
for the U.S. Department of Defense; and Brenda S. Farrell,
Director of Defense Capabilities and Management for the U.S.
Government Accountability Office (GAO).
3. Investigation: Navy Yard Shooting
On September 16, 2013, Chairman McCaskill received an
advance copy of the Defense Department's Office of Inspector
General's (DOD IG) report which revealed the Navy's failure to
adequately manage and oversee the contract associated with the
Navy Commercial Access Control System (NCACS), which was
responsible for background checks for contractor personnel. In
particular, this report revealed that Eid Passport, the
contractor charged with the administration of the NCACS
program, failed to prevent access to military installations
before background checks were completed. On September 17, 2013,
in the wake of the September 16 shooting at the Navy Yard
complex in Washington, DC, Chairman McCaskill sent a letter to
the Secretary of the Navy regarding the Navy's management and
oversight of contractor access to Navy installations. Chairman
McCaskill requested a briefing detailing the Navy's management
and oversight of contractor access to Navy installations under
both the NCACS and all alternative systems.
On September 18, 2013, Chairman McCaskill, Ranking Member
Johnson, and Senators Tester and Portman sent a letter to the
Inspector General for the Office of Personnel Management (OPM
IG) requesting a review of the security clearance background
investigation conducted for Aaron Alexis, the perpetrator of
the Navy Yard shooting.
On October 28, 2013, Chairman McCaskill sent letters to the
Secretary of the Army, the Commandant of the Coast Guard, and
the Administrator of NASA requesting that each respective
department review their contracts for the use of Eid Passport's
Rapidgate system.
Q. State Department Contracts
The Subcommittee continued its oversight of the State
Department's management and oversight of contracts.
On April 29, 2014, Chairman McCaskill sent a letter to the
Secretary of State regarding the State Department's decision to
solicit a contract for ``Congressional Training'' to provide
training for senior level officials within the State Department
on how to give effective congressional testimony and briefings.
The Chairman requested information and documents regarding the
contract solicitation to assist the Subcommittee in its
oversight of State Department contracting. On June 19, 2014,
Chairman McCaskill sent a second letter to the Secretary of
State regarding the State Department's solicitation of a
contract for ``Congressional Training.'' This June 19th letter
reiterated the request for information and added a request for
copies of all course material used in the congressional
training sessions.
On April 9, 2014, Chairman McCaskill sent a letter to the
Under Secretary for management at the State Department
regarding the State Department Inspector General's (State IG)
report which identified ``significant vulnerabilities'' in
contract management at the State Department. Chairman McCaskill
requested that the State Department provide information
regarding their plans to implement changes in their contract
management to conform with State IG's management-related
recommendations.
R. Student Loans
The Subcommittee initiated an investigation into the
Department of Education's management and oversight of contracts
related to student loans.
On July 8, 2014, Chairman McCaskill along with Senators
Warren, Tester, Baldwin, Murray, Durbin, Reed, Brown, and
Blumenthal sent a letter to the Secretary of Education
regarding the Department of Education's (DOE) contracts for the
origination, disbursement, and servicing of student loans. The
letter expressed concerns over the DOE's planning, management,
and competition of student loan servicing contracts. The
Senators expressed particular concern for the DOE's choice to
re-negotiate a contract with Navient Inc., a loan servicer that
was formerly part of Sallie Mae, and that has agreed to pay
nearly $100 million to settle allegations that they improperly
charged U.S. service members for their student loans. The
Senators requested information and documents to assist in the
Subcommittee's oversight of the DOE's contracting process. The
Subcommittee's investigation is ongoing.
S. Traumatic Brain Injury (TBI) and Veterans' Mental Health
The Subcommittee initiated an investigation into the
National Guard's management and oversight of contracts for
mental health service personnel.
The Subcommittee received information revealing that the
National Guard's management and oversight of contracts for
mental health service personnel coordination may have resulted
in inadequate mental health care for service members of the
National Guard. On June 19, 2013, Chairman McCaskill sent a
letter to the Chief of the National Guard Bureau requesting
information and documents regarding the National Guard's
contracts for the coordination of mental health services
personnel at both Air National Guard and National Guard bases
across the country. On July 29, 2013 Chairman McCaskill sent
letters to National Guard mental health contractors Global
Consulting Alliance, Goldbelt Glacier Health Services, MHN,
Serco, Inc., and Skyline Ultd Inc., requesting information and
documents regarding the contract management for their work in
coordinating mental health services and mental health personnel
for the National Guard.
On December 12, 2014, Chairman McCaskill sent a letter to
the Chief of the National Guard Bureau thanking them for their
responses and cooperation with the Subcommittee's
investigation. As a result of the Subcommittee's investigation,
the National Guard is currently addressing many of the
deficiencies cited by the Subcommittee; including taking
measures to make formerly contracted positions Federal
positions and expanding its psychological health program.
T. Whistleblowers
The Subcommittee continued its ongoing oversight of the
protections afforded to whistleblowers.
On February 4, 2014, Chairman McCaskill and Senator
Grassley sent a letter to the Comptroller General for the
Government Accountability Office (GAO) requesting that GAO
conduct a review of whistleblower reprisal investigations
conducted by the Department of Defense's Office of Inspector
General (DOD IG), with a particular focus on investigations
conducted by the inspectors general of the military services.
The report is expected to be completed in spring 2015.
On September 18, 2014, Chairman McCaskill, along with
Ranking Member Johnson, Senators Carper, Coburn, Levin, and
Representatives Smith, Issa, and Cummings, sent a letter to the
DOD IG regarding the DOD IG's interpretation of the protections
afforded to whistleblowers in the 2008 and 2013 National
Defense Authorization Acts. The members of Congress strongly
disagreed with the DOD IG's interpretation of the whistleblower
protection provisions, stating that DOD IG's interpretation
``disregards both the plain language and the spirit of the
legislation'' that was meant to protect government contractor
and subcontractor whistleblowers. The members of Congress
requested that the DOD IG review its interpretation and
implementation of whistleblower protections to determine
whether they had complied with the laws granting increased
protection to government contractors and subcontractors and
that DOD IG produce a report on their findings for review by
the respective congressional Committees. On October 22, 2014,
DOD IG sent a response stating that they were taking steps to
implement changes to their interpretation of whistleblower
protections.
On June 19, 2014, Chairman McCaskill sent a letter to the
Office of Special Counsel (OSC) requesting that OSC take prompt
action in investigating and adjudicating the cases of alleged
whistleblower retaliation at the Department of Veterans Affairs
(VA), and requesting that OSC provide information to the
Subcommittee regarding the alleged retaliation and the progress
of OSC's investigation. On June 23, 2014, OSC provided its
findings on whistleblower disclosures from the VA center in
Jackson, Mississippi, and outlined recommendations and next
steps including the designation of a high-level VA official to
assess the conclusions found by OSC.
III. Legislation
The Subcommittee's investigations and hearings have
revealed the need for changes to existing law. During the 113th
Congress, Chairman McCaskill introduced the following
legislative proposals in her capacity as a Senator.
A. A Bill to Prohibit Performance Awards in the Senior Executive
Service during Sequestration Periods (S.986)
On May 16, 2013, Chairman McCaskill, along with co-sponsors
Senator Coburn and Senator Johnson, introduced S. 986, A Bill
to Prohibit Performance Awards in the Senior Executive Service
during Sequestration Periods. The bill would prohibit a Federal
agency from paying a performance award to an employee in a
Senior Executive Service position during a sequestration period
or any period during which a sequestration order is issued
under the Balanced Budget and Emergency Deficit Control Act. On
May 16, 2013, the bill was referred to the Committee on
Homeland Security and Governmental Affairs.
B. Contracting and Tax Accountability Act of 2014 (S.2247)
On April 10, 2014, Chairman McCaskill introduced S. 2247,
the Contracting and Tax Accountability Act of 2014. The bill
would require the head of any executive agency that issues an
invitation for bids or a request for proposals for a contract,
or that offers a grant, in an amount greater than the
simplified acquisition threshold to require each person that
submits a bid or proposal to submit with the bid or proposal a
form certifying whether they have seriously delinquent tax
debt, and authorizing the Secretary of the Treasury to disclose
information limited to whether the person has such debt. The
bill was referred to the Committee on Homeland Security and
Governmental Affairs on April 10, 2014.
C. NSA Internal Watchdog Act (S. 2439)
On June 5, 2014, Chairman McCaskill introduced S. 2439, the
NSA Internal Watchdog Act. The bill would amend the Inspector
General Act of 1978 to require the President to appoint, with
advice and consent of the Senate, the Inspector General of the
National Security Agency (NSA). Under the Inspector General Act
of 1978, the NSA Inspector General was appointed by the NSA
Director. The bill was referred to the Senate Committee on
Intelligence on June 5, 2014.
D. A bill to require the termination of any employee of the Department
of Veterans Affairs who is found to have retaliated against a
whistleblower (S. 2606)
On July 15, 2014, Chairman McCaskill introduced S. 2606, a
bill to require the termination of any employee of the
Department of Veterans Affairs who is found to have retaliated
against a whistleblower. The bill was referred to the Committee
on Veterans Affairs on July 15, 2014.
E. National Defense Authorization Act for FY 2014 (H.R. 3304)
The National Defense Authorization Act (NDAA) for Fiscal
Year 2014 included an amendment proposed by Senator McCaskill
aimed at reforming POW/MIA accounting within the Department of
Defense (DOD). More specifically, under this amendment DOD is
required to submit a formal plan for reorganizing and boosting
accountability within the POW/MIA recovery program. That plan
would include: an analysis of whether different segments of the
recovery effort should be combined, such as the Joint POW/MIA
Accounting Command (JPAC) and the Defense Prisoner of War/
Missing Person Personnel Office (DPMO); a determination as to
which of these components should have direct responsibility for
accounting activities; and an analysis of how other countries
conduct POW/MIA accounting to identify best practices that
could be adopted in the United States. Senator McCaskill's
amendment also requires DOD to report on the actual number of
POW/MIA, including: (1) the total current number of POW/MIA,
including a break-out of these numbers by conflict, and
specifically how many are believed to be located in North
Korea, (2) the number of POW/MIA believed to be lost at sea or
in a geographically inaccessible location by each conflict, (3)
the number of remains in the custody of the Defense Department
that are awaiting identification, and the number of remains
that have been interred without identification, and (4) the
number of cases in which next of kin have refused to provide
DNA samples.
F. National Defense Authorization Act for FY 2015
(H.R. 3979)
Several of the amendments to the National Defense
Authorization Act (NDAA) for Fiscal Year 2015, proposed by
Senator McCaskill and based on her work with the Subcommittee,
were adopted during the markup of the bill and signed into law
by the President on December 19, 2014. These included
provisions for improving the oversight of infrastructure
projects in Afghanistan, increasing accountability for POW/MIA
program management, strengthening whistleblower protections,
and curbing waste in contractor response to congressional
hearings and Army National Guard Advertising.
1. Afghan Ministries Infrastructure
Section 1531 prohibits any funding authorized in the bill
from being used for the Afghanistan Infrastructure Fund.
Section 1230 prohibits funding for construction projects in
Afghanistan greater than $1 million that cannot be audited and
physically inspected by U.S. Government personnel or designated
representatives. This section also provides for a waiver based
on factors that were included in the Senate version of the
bill, including a determination that the project has been
coordinated with the government of Afghanistan and that
adequate arrangements have been made for the sustainment of
projects.
2. POW/MIA
Section 916 requires the establishment of a single defense
agency responsible for POW/MIA efforts and requires the
Department to report on policies and proposals for providing
access to information and documents to the next of kin of
missing service personnel.
3. Whistleblower Protections
Section 856 extends whistleblower protections to Department
of Defense contract grantees and sub-grantees.
4. Contractor Waste
Section 857 prohibits the reimbursement of costs incurred
by Federal contractors in connection with a congressional
investigation or inquiry into an issue that is the subject
matter of a proceeding resulting in a disposition.
5. Army National Guard Contracts
The NDAA for FY 2015 cuts $13.8 million from the Army
National Guard advertising budget.
G. S. Amendment 504 to S. CON. RES. 8
On March 21, 2013, Chairman McCaskill submitted S.A. 504 to
S. Con. Res. 8, a bill setting forth the congressional budget
for the United States Government for Fiscal Year 2014. This
amendment would allow the Committee on the Budget of the Senate
to revise the allocations of a committee that achieve savings
through various means, including reform of acquisition policy,
the use of scientific methodology for the elimination, reform,
or consolidation of Federal agencies or programs, the sale of
Federal property, a reduction of improper payments, an increase
in the use of strategic sourcing, a reduction in the use of
sole-source contracting, an increase in the use of fixed-price
contracting, improved training and utilization of the
acquisition workforce, or the removal of contracting
preferences for Alaska Natives beyond those available to other
participants in the program under section 8(a) of the Small
Business Act, such as the ability to receive sole-source
contracts above threshold amounts, and that reduce the deficit
over a period of years.
SUBCOMMITTEE ON EMERGENCY MANAGEMENT,
INTERGOVERNMENTAL RELATIONS, AND THE DISTRICT OF COLUMBIA
Chairman: Mark Begich (D-AK)
Ranking Member: Rand Paul (R-KY)
I. Authority
The Subcommittee on Emergency Management, Intergovernmental
Relations, and the District of Columbia focuses on emergency
management, disaster relief, and issues relating to the
oversight of the District of Columbia. This Subcommittee is
responsible for oversight of the Federal Emergency Management
Agency (FEMA) and all of its emergency management
responsibilities, including preparation for, response to,
recovery from and mitigation against natural and man-made
disasters. The Subcommittee also reviews the administration of
post-disaster relief funds and oversight of financial
assistance programs, like homeland security grants. In addition
to these responsibilities, the subcommittee oversees the
interrelationship between the Department of Homeland Security
and states, localities, and first responders in preventing and
responding to natural disasters, terrorism, and other man-made
disasters. The Subcommittee is also responsible for all matters
regarding the oversight of the District of Columbia, including
the District court system.
II. Activity
During the 113th Congress, the Subcommittee on Emergency
Management, Intergovernmental Relations, and the District of
Columbia held 12 hearings, authorized one investigation, and
introduced, or joined as original co-sponsor, eight related
pieces of legislation.
The following is a summary of the activities of the
Subcommittee, organized by topic.
A. HEARINGS
1. The Role of the Private Sector in Preparedness and Emergency
Response. May 8, 2013. (S. Hrg. 113-216)
The hearing was held in order to consider issues related to
the inclusion of the private sector in disaster preparedness
and response activities at the Federal, State, and local
levels. The subcommittee hoped to examine how the private
sector could best support community preparedness in response to
natural and manmade disasters and explore the ways that FEMA
and the Federal government reach out to the private sector.
There was also to be some discussion regarding the budget
efficiencies that could be achieved by empowering the private
sector and non-profit organizations in the recovery process.
Furthermore, the hearing was to focus on the value of
mitigation from a business perspective and the importance of
highlighting best practices while taking into account the
lessons learned in regards to loss avoidance strategies that
support economically resilient communities. It was anticipated
that the hearing would develop an understanding of how the
private sector could better prepare for disasters by developing
plans, identifying priorities, engaging stakeholders, and
reducing disaster cost.
Witnesses: Elizabeth Zimmerman, Deputy Associate
Administrator, Office of Response and Recovery, Federal
Emergency Management Agency; Michael Chodos, Associate
Administrator, Office of Entrepreneurial Development, U.S.
Small Business Administration; Chris Terzich, Chiar, Regional
Consortium Coordinating Council; Michael Merwath, Senior Vice
President and Chief Underwriter of the United Services
Automobile Association; and Daniel Stoecker, Executive Director
of the National Volunteer Organizations Active in Disasters.
2. Are We Prepared? Measuring the Impact of Preparedness Grants Since
9/11. June 25, 2013. (S. Hrg. 113-217)
The hearing focused on measuring of the impact of FEMA
grants since 9/11 and the role Federal, State, and local
governments play in developing metrics to assess preparedness
for natural and manmade events. Since September 11, 2001, the
nation has invested almost $40 billion in equipment, training,
and exercising and in order to enhance and sustain essential
capabilities, assessments must be done to determine our current
level of preparedness and identify gaps that will inform future
investment of tax-payer dollars.
Witnesses: Hon. Timothy Manning, Deputy Administrator,
Protection and National Preparedness, Federal Emergency
Management Agency, U.S. Department of Homeland Security; Anne
Richards, Assistant Inspector General for Audits, Office of
Inspector General, U.S. Department of Homeland Security; David
Maurer, Director, Homeland Security Department and Justice
Department, U.S. Government Accountability Office; John Madden,
Director, Alaska Division of Homeland Security and Emergency
Management, National Emergency Management Association, National
Governors Association; Hon. William Euille, Mayor, City of
Alexandria, Virginia, U.S. Conference of Mayors; Josh Filler;
Founder and President, Filler Security Strategies, Inc.; and
Matt Mayer, Visiting Fellow, Heritage Foundation.
3. How Prepared is the National Capital Region for the Next Disaster?
July 31, 2013. (S. Hrg. 113-218)
The focus of the hearing was to: (1) examine the National
Capital Region's emergency preparedness and response
capabilities, (2) discuss regional coordination and information
sharing challenges that are applicable to cities and states
across the country, and (3) offer suggestions for how FEMA and
other Federal agencies in the National Capital Region might
prepare and respond to future disasters.
Witnesses: Hon. Eleanor Holmes Norton, Congresswoman for
the District of Columbia; Christopher Geldart, Director,
District of Columbia Homeland Security and Emergency Management
Agency; Kenneth Mallette, Executive Director, Maryland
Emergency Management Agency; Barbara Donnellan, County Manager,
Arlington County, Virginia, Metropolitan Washington Council of
Governments; James Schwartz, Fire Chief, Arlington County Fire
Department.
4. Extreme Weather in Alaska: State and Federal Response to Imminent
Disasters in the Arctic. September 14, 2013. (S. Hrg. 113-542)
The focus of this field hearing was to examine the effects
of erosion and flooding on at-risk communities throughout
Alaska and highlight the challenges that must be addressed by
the development of a long-term strategy for adaptation and
mitigation in the face of increasingly extreme weather. The
hearing also highlighted the challenges faced in the Arctic in
regards to Federal and State agency coordination while drawing
attention to the gaps that exist in Federal policy that, if
addressed, could streamline actions taken to assess risk and
protect critical infrastructure.
Witnesses: Vivian Korthuis, Project Development Director,
Alaska Association of Village Council Presidents; Thomas
Ravens, Ph.D., Professor, University of Alaska at Anchorage;
Melanie Bahnke, President, Kawerak, Inc.; David Miller,
Associate Administrator, Federal Insurance and Mitigation
Administration, Federal Emergency Management Agency, U.S.
Department of Homeland Security; Kenneth Murphy, Regional
Administrator, Region X, Federal Emergency Management Agency,
U.S. Department of Homeland Security; Colonel Christopher
Lestochi, U.S. Army Corps of Engineers, U.S. Army Engineer
District, Alaska; John Madden, Director, Alaska Division of
Homeland Security and Emergency ManagementAlaska Department of
Military and Veterans Affairs.
5. One Year Later: Examining the Ongoing Recovery from Hurricane Sandy.
November 6, 2013. (S. Hrg. 113-495)
The focus of the hearing was to examine the response to and
recovery from Hurricane Sandy, with particular emphasis on the
challenges faced by affected communities as they navigated the
various Federal agencies tasked with supporting the region
following the storm. The hearing highlighted the critical gaps
that exist in long-term recovery, including the barriers to
rebuilding communities in a timely manner while incorporating
innovative mitigation practices that reduce risk from future
storms. The discussion focused on the lessons learned by areas
hit hardest by Sandy and the gaps in Federal policy that may
need to be addressed to fully incorporate innovative disaster
relief programs across the country. Witnesses were asked to
elaborate on the progress being made to spend the $60 billion
provided to Sandy relief and the effort underway to track this
spending to support efficiency across the affected region.
Implementation of the Sandy Recovery Improvement Act and the
effectiveness of these new tools for future extreme weather
events was also examined.
Witnesses: Hon. Shaun L. S. Donovan, Secretary, U.S.
Department of Housing and Urban Development; Hon. John D.
Porcari, Deputy Secretary, Department of Transportation; Hon.
W. Craig Fugate, Administrator, Federal Emergency, Management
Agency, U.S. Department of Homeland Security; Hon. Jo-Ellen
Darcy, Assistant Secretary of the Army (Civil Works), U.S.
Department of the Army; Hon. Kathleen S. Tighe, Chair, The
Recovery Accountability and Transparency Board;Cas F. Holloway,
Deputy Mayor for Operations, City of New York.
6. Shutdown: Examining Federal Government Closure Impacts on the
District of Columbia. January 30, 2014. (S. Hrg. 113-543)
The hearing was held in order to examine the impacts of
Federal Government shutdown, particularly the most recent
closure in October 2013, on the District of Columbia. The
subcommittee hoped to highlight the extent of any impacts on
the city government's daily operations, particularly public
service provision, and longer-term effects upon spending
efficiency. Furthermore, the hearing served to review the
effectiveness of measures undertaken by Congress and District
government during the most recent shutdown to mitigate these
impacts, as well as steps that might be taken to ensure that
the disruption due to any future shutdown is minimized. This
hearing allowed the opportunity to have a bipartisan panel of
witnesses testify to the importance of passing DC budget
autonomy.
Witnesses: Congresswoman Eleanor Holmes Norton, D.C.
Delegate to the United States House of Representatives; Hon.
Tom Davis, Former Chairman, House Government Reform Committee;
Allen Lew, City Administrator, The District of Columbia; Robert
Vogel, Superintendent of the National Mall and Memorial Parks,
National Park Service.
7. The Federal Emergency Management Agency's Budget Submission for
Fiscal Year 2015. March 13, 2014. (S. Hrg. 113-496)
The purpose of the hearing was to examine the President's
Fiscal Year 2015 budget submission for FEMA and evaluate any
programmatic proposals that may be included. Specifically, the
Subcommittee is interested in specific details that can be
provided on any structural changes the Administration may
propose to the preparedness grants.
Witness: Hon. W. Craig Fugate, Administrator, Federal
Emergency Management Agency, U.S. Department of Homeland
Security.
8. Transparency and Training: Preparing our First Responders for
Emerging Threats and Hazards. March 25, 2014. (S. Hrg. 113-317)
The focus of the hearing was to examine the challenges
posed to first responders by the transportation of hazardous
materials. Given the dramatic increase in the transportation of
a wide range of hazardous substances, the discussion
highlighted the increased need for preparedness and training
for first responders as well as the transparency needed to
equip these responders with critical information. The hearing
discussed the process for integration of emerging threats into
emergency response planning and discussed opportunities for
critical data to be shared during the planning process.
Witnesses: Mike King, Acting Director of National Training
and Education, Superintendent of the Center for Domestic
Preparedness, Federal Emergency Management Agency, U.S.
Department of Homeland Security; Tim McLean, Chief, Casselton
Fire Department, Wheatland, North Dakota; Lisa Stabler,
President, Transportation Technology Center, Inc.
9. Fifty Years Since the Great Alaska Earthquake: The Role of First
Responders in Catastrophic Disaster Planning. April 4, 2014.
(S. Hrg. 113-533)
The purpose of this field hearing was to evaluate the role
of first responders in catastrophic disaster planning. The
hearing highlighted the critical relationships between Federal,
State, and local emergency response officials and assessed the
value of coordinated planning, training, and exercising. The
hearing also examined any observations and lessons learned from
recent national exercises and how they might be incorporated
into future planning efforts.
Witnesses: Hon. W. Craig Fugate, Administrator, Federal
Emergency Management Agency, U.S. Department of Homeland
Security; John Madden, Director, Alaska Division of Homeland
Security and Emergency Management, Alaska Department of
Military and Veterans Affairs; George Keeney, Fire Chief,
Valdez Fire Department; Danita Koehler, MD, Chair, Rural
Committee, National Association of Emergency Medical Services
Physicians; Victor Joseph, President and Chairman, Tanana
Chiefs Conference; Mike Abbott Assistant Superintendent,
Anchorage School District.
10. The Role of Mitigation in Reducing Federal Expenditures for
Disaster Response. May 14, 2014. (S. Hrg. 113-497)
The focus of the hearing was to examine the potential
relationship between investment in mitigation and disaster
response and recovery expenditures, discuss the potential
impact of mitigation investments on the sustainability and
success of the National Flood Insurance Program, highlight
innovative examples of mitigation incentives (including public
private partnerships) across the country, and offer suggestions
for how to overcome barriers that may prevent or deter
mitigation from being utilized across the Federal Government.
Witnesses: David Miller, Associate Administrator, Federal
Insurance and Mitigation Administration, Federal Emergency
Management Agency, U.S. Department of Homeland Security;
Christopher Currie, Director, Emergency Management and National
Preparedness Issues, U.S. Government Accountability Office;
Chad Berginnis, Executive Director, Association of State
Floodplain Managers; Robert Detlefsen, Vice President of Public
Policy, National Association of Mutual Insurance Companies,
Testifying on behalf of the BuildStrong Coalition.
11. Wildfires: Assessing First Responder Training and Capabilities.
June 5, 2014. (S. Hrg. 113-498)
Given the increasing prevalence of wildfires, primarily in
the Southwest and West, it is important that Congress takes a
comprehensive look at the training and resources currently
provided to firefighters and first responders in at-risk
communities. The focus of the hearing was to bring together
leaders from state, local, and Federal levels to assess present
capabilities and discuss ways to ensure robust and adaptable
fire prevention and response throughout the country.
Witnesses: Jim Hubbard, Deputy Chief, U.S. Forest Service,
U.S. Department of Agriculture; William Dougan, National
President, National Federation of Federal Employees; Kevin
O'Connor, Assistant to the General President for Public Policy,
International Association of Firefighters; Hon. Mike Navarre,
Mayor, Kenai Peninsula Borough
12. The Path to Efficiency: Making FEMA More Effective for Streamlined
Disaster Operations. July 24, 2014. (S. Hrg. 113-586)
The focus of the hearing was to offer a systems-level
examination of FEMA disaster-related programs. Specifically,
the hearing discussed long-standing challenges to FEMA
efficiency and performance, FEMA's recent efforts to find cost
efficiencies and program improvements, as well as potential
opportunities for additional improvements.
Witnesses: Hon. John Roth, Inspector General, U.S.
Department of Homeland Security; Joseph Nimmich, Associate
Administrator, Office of Response and Recovery, Federal
Emergency Management Agency, U.S. Department of Homeland
Security; Christopher Currie, Director, Emergency Management
and National Preparedness Issues, U.S. Government
Accountability Office; Dr. Daniel Sutter, Professor of
Economics, Johnson Center for Political Economy, Troy
University.
III. Legislation
The following bills were considered by the Subcommittee on
Emergency Management, Intergovernmental Relations, and the
District of Columbia during the 113th Congress:
S. 1819--Emergency Information Improvement Act of 2013--A
bill to amend the Robert T. Stafford Disaster Relief and
Emergency Assistance Act to provide eligibility for public
broadcasting facilities to receive certain disaster assistance,
and for other purposes.
S. 1396--A bill to authorize the Federal Emergency
Management Agency to award mitigation financial assistance in
certain areas by wildfire.
IV. GAO Reports
The following reports were issued by the Government
Accountability Office at the request of the Chairman/Ranking
Member of the Subcommittee on Emergency Management,
Intergovernmental Relations, and the District of Columbia
during the 113th Congress:
``Federal Emergency Management Agency: Opportunities Exist
to Strengthen Oversight of Administrative Costs for Major
Disasters,'' GAO-15-65: Published: Dec 17, 2014.
In addition, the Chairman of the Subcommittee on Emergency
Management, Intergovernmental Relations, and the District of
Columbia requested/co-requested the following reports during
the 113th Congress which are currently in progress:
Review of the Federal Government's efforts to mitigate
earthquake hazard risks; Co-request with Senators Carper and
Feinstein.
Review of State budgeting efforts for disaster relief; Co-
request with Senators Carper, Coburn, and McCaskill.
Review of FEMA regulations and policies related to Federal
recovery and disaster mitigation activities; Co-request with
Senators Paul, Reed, Whitehouse, and Congressman Bennie
Thompson.
Review of the impact of post-Hurricane Katrina reforms on
FEMA and disaster relief programs; Co-request with Senator
Coburn, and Congressmen McCaul and Brooks.
Permanent Subcommittee on Investigations
Chairman: Carl Levin
Ranking Minority Member: John McCain
The following is the Activities Report of the Permanent
Subcommittee on Investigations for the 113th Congress.
I. Historical Background
A. Subcommittee Jurisdiction
The Permanent Subcommittee on Investigations was originally
authorized by Senate Resolution 189 on January 28, 1948. At its
creation in 1948, the Subcommittee was part of the Committee on
Expenditures in the Executive Departments. The Subcommittee's
records and broad investigative jurisdiction over government
operations and national security issues, however, actually
antedate its creation, since it was given custody of the
jurisdiction of the former Special Committee to Investigate the
National Defense Program (the so-called ``War Investigating
Committee'' or ``Truman Committee''), chaired by Senator Harry
S. Truman during the Second World War and charged with exposing
waste, fraud, and abuse in the war effort and war profiteering.
Today, the Subcommittee is part of the Committee on Homeland
Security and Governmental Affairs.\1\
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\1\In 1952, the parent committee's name was changed to the
Committee on Government Operations. It was changed again in early 1977,
to the Committee on Governmental Affairs, and again in 2005, to the
Committee on Homeland Security and Governmental Affairs, its present
title.
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The Subcommittee has had nine chairmen: Senators Homer
Ferguson of Michigan (1948), Clyde R. Hoey of North Carolina
(1949-1952), Joseph R. McCarthy of Wisconsin (1953-1954), John
L. McClellan of Arkansas (1955-1972), Henry M. Jackson of
Washington (1973-1978), Sam Nunn of Georgia (1979-1980 and
1987-1994), William V. Roth of Delaware (1981-1986 and 1995-
1996), Susan M. Collins of Maine (1997-2001); Norm Coleman of
Minnesota (2003-2007); and Carl Levin of Michigan (2001-2002
and 2007-2014).
Until 1957, the Subcommittee's jurisdiction focused
principally on waste, inefficiency, impropriety, and illegality
in government operations. Its jurisdiction then expanded over
time, today encompassing investigations within the broad ambit
of the parent committee's responsibility for matters relating
to the efficiency and economy of operations of all branches of
the government, including matters related to: (a) waste, fraud,
abuse, malfeasance, and unethical practices in government
contracting and operations; (b) organized criminal activities
affecting interstate or international commerce; (c) criminal
activity affecting the national health, welfare, or safety,
including investment fraud, commodity and securities fraud,
computer fraud, and offshore abuses; (d) criminality or
improper practices in labor-management relations; (e) the
effectiveness of present national security methods, staffing
and procedures, and U.S. relationships with international
organizations concerned with national security; (f) energy
shortages, energy pricing, management of government-owned or
controlled energy supplies; and relationships with oil
producing and consuming countries; and (g) the operations and
management of Federal regulatory policies and programs. While
retaining the status of a subcommittee of a standing committee,
the Subcommittee has long exercised its authority on an
independent basis, selecting its own staff, issuing its own
subpoenas, and determining its own investigatory agenda.
The Subcommittee acquired its sweeping jurisdiction in
several successive stages. In 1957--based on information
developed by the Subcommittee--the Senate passed a Resolution
establishing a Select Committee on Improper Activities in the
Labor or Management Field. Chaired by Senator McClellan, who
also chaired the Subcommittee at that time, the Select
Committee was composed of eight Senators--four of whom were
drawn from the Subcommittee on Investigations and four from the
Committee on Labor and Public Welfare. The Select Committee
operated for 3 years, sharing office space, personnel, and
other facilities with the Permanent Subcommittee. Upon its
expiration in early 1960, the Select Committee's jurisdiction
and files were transferred to the Subcommittee on
Investigations, greatly enlarging the latter body's
investigative authority in the labor-management area.
The Subcommittee's jurisdiction expanded further during the
1960s and 1970s. In 1961, for example, it received authority to
make inquiries into matters pertaining to organized crime and,
in 1963, held the famous Valachi hearings examining the inner
workings of the Italian Mafia. In 1967, following a summer of
riots and other civil disturbances, the Senate approved a
Resolution directing the Subcommittee to investigate the causes
of this disorder and to recommend corrective action. In January
1973, the Subcommittee acquired its national security mandate
when it merged with the National Security Subcommittee. With
this merger, the Subcommittee's jurisdiction was broadened to
include inquiries concerning the adequacy of national security
staffing and procedures, relations with international
organizations, technology transfer issues, and related matters.
In 1974, in reaction to the gasoline shortages precipitated by
the Arab-Israeli war of October 1973, the Subcommittee acquired
jurisdiction to investigate the control and management of
energy resources and supplies as well as energy pricing issues.
In 1997, the full Committee on Governmental Affairs was
charged by the Senate to conduct a special examination into
illegal or improper activities in connection with Federal
election campaigns during the 1996 election cycle. The
Permanent Subcommittee provided substantial resources and
assistance to this investigation, contributing to a greater
public understanding of what happened, to subsequent criminal
and civil legal actions taken against wrongdoers, and to
enactment of campaign finance reforms in 2001.
In 1998, the Subcommittee marked the fiftieth anniversary
of the Truman Committee's conversion into a permanent
subcommittee of the U.S. Senate.\2\ Since then, the
Subcommittee has developed particular expertise in complex
financial matters, examining the collapse of Enron Corporation
in 2001, the key causes of the 2008 financial crisis,
structured finance abuses, financial fraud, unfair credit
practices, money laundering, commodity speculation, and a wide
range of offshore and tax haven abuses. It has also focused on
issues involving health care fraud, foreign corruption, and
waste, fraud and abuse in government programs. In the half-
century of its existence, the Subcommittee's many successful
investigations have made clear to the Senate the importance of
retaining a standing investigatory body devoted to keeping
government not only efficient and effective, but also honest
and accountable.
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\2\This anniversary also marked the first date upon which internal
Subcommittee records generally began to become available to the public.
Unlike most standing committees of the Senate whose previously
unpublished records open after a period of 20 years has elapsed, the
Permanent Subcommittee on Investigations, as an investigatory body, may
close its records for 50 years to protect personal privacy and the
integrity of the investigatory process. With this 50th anniversary, the
Subcommittee's earliest records, housed in the Center for Legislative
Archives at the National Archives and Records Administration, began to
open seriatim. The records of the predecessor committee--the Truman
Committee--were opened by Senator Nunn in 1980.
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B. Subcommittee Investigations
Armed with its broad jurisdictional mandate, the
Subcommittee has conducted investigations into a wide variety
of topics of public concern, ranging from financial misconduct,
to commodities speculation, predatory lending, and tax evasion.
Over the years, the Subcommittee has also conducted
investigations into criminal wrongdoing, including money
laundering, the narcotics trade, child pornography, labor
racketeering, and organized crime activities. In addition, the
Subcommittee has investigated a wide range of allegations of
waste, fraud, and abuse in government programs and consumer
protection issues, addressing problems ranging from unfair
credit card practices to health care fraud. In the 113th
Congress, the Subcommittee held eight hearings and issued ten
reports on a wide range of issues, including bank misconduct,
hidden offshore bank accounts, corporate tax avoidance, online
advertising abuses, conflicts of interest affecting the stock
market, missteps in processing 501(c)(4) applications for tax-
exempt status, defense acquisition problems, and inappropriate
bank involvement with physical commodities.
(1) Historical Highlights
The Subcommittee's investigatory record as a permanent
Senate body began under the Chairmanship of Republican Senator
Homer Ferguson and his Chief Counsel (and future Attorney
General and Secretary of State) William P. Rogers, as the
Subcommittee inherited the Truman Committee's role in
investigating fraud and waste in U.S. Government operations.
This investigative work became particularly colorful under the
chairmanship of Senator Clyde Hoey, a North Carolina Democrat
who took the chair from Senator Ferguson after the 1948
elections. The last U.S. Senator to wear a long frock coat and
wing-tipped collar, Mr. Hoey was a distinguished southern
gentleman of the old school. Under his leadership, the
Subcommittee won national attention for its investigation of
the so-called ``five percenters,'' notorious Washington
lobbyists who charged their clients five percent of the profits
from any Federal contracts they obtained on the client's
behalf. Given the Subcommittee's jurisdictional inheritance
from the Truman Committee, it is perhaps ironic that the ``five
percenters'' investigation raised allegations of bribery and
influence-peddling that reached right into the White House and
implicated members of President Truman's staff. In any event,
the fledgling Subcommittee was off to a rapid start.
What began as colorful soon became contentious. When
Republicans returned to the Majority in the Senate in 1953,
Wisconsin's junior Senator, Joseph R. McCarthy, became the
Subcommittee's Chairman. Two years earlier, as Ranking Minority
Member, Senator McCarthy had arranged for another Republican
Senator, Margaret Chase Smith of Maine, to be removed from the
Subcommittee. Senator Smith's offense, in Senator McCarthy's
eyes, was her issuance of a ``Declaration of Conscience''
repudiating those who made unfounded charges and used character
assassination against their political opponents. Although
Senator Smith had carefully declined to name any specific
offender, her remarks were universally recognized as criticism
of Senator McCarthy's accusations that communists had
infiltrated the State Department and other government agencies.
Senator McCarthy retaliated by engineering Senator Smith's
removal, replacing her with the newly-elected Senator from
California, Richard Nixon.
Upon becoming Subcommittee Chairman, Senator McCarthy
staged a series of highly publicized anti-communist
investigations, culminating in an inquiry into communism within
the U.S. Army, which became known as the Army-McCarthy
hearings. During the latter portion of those hearings, in which
the parent Committee examined the Wisconsin Senator's attacks
on the Army, Senator McCarthy recused himself, leaving South
Dakota Senator Karl Mundt to serve as Acting Chairman of the
Subcommittee. Gavel-to-gavel television coverage of the
hearings helped turn the tide against Senator McCarthy by
raising public concern about his treatment of witnesses and
cavalier use of evidence. In December 1954, the Senate censured
Senator McCarthy for unbecoming conduct. In the following year,
the Subcommittee adopted new rules of procedure that better
protected the rights of witnesses. The Subcommittee also
strengthened the rules ensuring the right of both parties on
the Subcommittee to appoint staff, initiate and approve
investigations, and review all information in the
Subcommittee's possession.
In 1955, Senator John McClellan of Arkansas began 18 years
of service as Chairman of the Permanent Subcommittee on
Investigations. Senator McClellan appointed a young Robert F.
Kennedy as the Subcommittee's Chief Counsel. That same year,
Members of the Subcommittee were joined by Members of the
Senate Labor and Public Welfare Committee on a special
committee to investigate labor racketeering. Chaired by Senator
McClellan and staffed by Robert Kennedy and other Subcommittee
staff members, this special committee directed much of its
attention to criminal influence over the Teamsters Union, most
famously calling Teamsters' leaders Dave Beck and Jimmy Hoffa
to testify. The televised hearings of the special committee
also introduced Senators Barry Goldwater and John F. Kennedy to
the nation, as well as leading to passage of the Landrum-
Griffin Labor Act.
After the special committee completed its work, the
Permanent Subcommittee on Investigations continued to
investigate organized crime. In 1962, the Subcommittee held
hearings during which Joseph Valachi outlined the activities of
La Cosa Nostra, or the Mafia. Former Subcommittee staffer
Robert Kennedy--who had by then become Attorney General in his
brother's Administration--used this information to prosecute
prominent mob leaders and their accomplices. The Subcommittee's
investigations also led to passage of major legislation against
organized crime, most notably the Racketeer Influenced and
Corrupt Organizations (RICO) provisions of the Crime Control
Act of 1970. Under Chairman McClellan, the Subcommittee also
investigated fraud in the purchase of military uniforms,
corruption in the Department of Agriculture's grain storage
program, securities fraud, and civil disorders and acts of
terrorism. In addition, from 1962 to 1970, the Subcommittee
conducted an extensive probe of political interference in the
awarding of government contracts for the Pentagon's ill-fated
TFX (``tactical fighter, experimental'') aircraft. In 1968, the
Subcommittee also examined charges of corruption in U.S.
servicemen's clubs in Vietnam and elsewhere around the world.
In 1973, Senator Henry ``Scoop'' Jackson, a Democrat from
Washington, replaced Senator McClellan as the Subcommittee's
Chairman. During his tenure, recalled Chief Clerk Ruth Young
Watt--who served in this position from the Subcommittee's
founding until her retirement in 1979--Ranking Minority Member
Charles Percy, an Illinois Republican, became more active on
the Subcommittee than Chairman Jackson, who was often
distracted by his Chairmanship of the Interior Committee and
his active role on the Armed Services Committee.\3\ Senator
Percy also worked closely with Georgia Democrat Sam Nunn, a
Subcommittee member who subsequently succeeded Senator Jackson
as Subcommittee Chairman in 1979. As Chairman, Senator Nunn
continued the Subcommittee's investigations into the role of
organized crime in labor-management relations and also
investigated pension fraud.
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\3\It had not been uncommon in the Subcommittee's history for the
Chairman and Ranking Minority Member to work together closely despite
partisan differences, but Senator Percy was unusually active while in
the Minority--a role that included his chairing an investigation of the
hearing aid industry.
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Regular reversals of political fortunes in the Senate
during the 1980s and 1990s saw Senator Nunn trade the
chairmanship three times with Delaware Republican William Roth.
Senator Nunn served from 1979 to 1980 and again from 1987 to
1995, while Senator Roth served from 1981 to 1986, and again
from 1995 to 1996. These 15 years saw a strengthening of the
Subcommittee's bipartisan tradition in which investigations
were initiated by either the Majority or Minority and fully
supported by the entire Subcommittee. For his part, Senator
Roth led a wide range of investigations into commodity
investment fraud, offshore banking schemes, money laundering,
and child pornography. Senator Nunn led inquiries into Federal
drug policy, the global spread of chemical and biological
weapons, abuses in Federal student aid programs, computer
security, airline safety, and health care fraud. Senator Nunn
also appointed the Subcommittee's first female counsel,
Eleanore Hill, who served as Chief Counsel to the Minority from
1982 to 1986 and then as Chief Counsel from 1987 to 1995.
Strong bipartisan traditions continued in the 105th
Congress when, in January 1997, Republican Senator Susan
Collins of Maine became the first woman to chair the Permanent
Subcommittee on Investigations. Senator John Glenn of Ohio
became the Ranking Minority Member, while also serving as
Ranking Minority Member of the full Committee. Two years later,
in the 106th Congress, after Senator Glenn's retirement,
Michigan Democrat Carl Levin succeeded him as the
Subcommittee's Ranking Minority Member. During Senator Collins'
chairmanship, the Subcommittee conducted investigations into
issues affecting Americans in their day-to-day lives, including
mortgage fraud, deceptive mailings and sweepstakes promotions,
phony credentials obtained through the Internet, day trading of
securities, and securities fraud on the Internet. Senator Levin
initiated an investigation into money laundering. At his
request, in 1999, the Subcommittee held hearings on money
laundering issues affecting private banking services provided
to wealthy individuals, and, in 2001, on how major U.S. banks
providing correspondent accounts to offshore banks were being
used to advance money laundering and other criminal schemes.
During the 107th Congress, both Senator Collins and Senator
Levin chaired the Subcommittee. Senator Collins was chairman
until June 2001, when the Senate Majority party changed hands;
at that point, Senator Levin assumed the chairmanship and
Senator Collins, in turn, became the Ranking Minority Member.
In her first six months chairing the Subcommittee at the start
of the 107th Congress, Senator Collins held hearings examining
issues related to cross border fraud, the improper operation of
tissue banks, and Federal programs designed to fight diabetes.
When Senator Levin assumed the chairmanship, as his first major
effort, the Subcommittee initiated an 18-month bipartisan
investigation into the Enron Corporation, which had collapsed
into bankruptcy. As part of that investigation, the
Subcommittee reviewed over 2 million pages of documents,
conducted more than 100 interviews, held four hearings, and
issued three bipartisan reports focusing on the role played by
Enron's Board of Directors, Enron's use of tax shelters and
structured financial instruments, and how major U.S. financial
institutions contributed to Enron's accounting deceptions,
corporate abuses, and ultimate collapse. The Subcommittee's
investigative work contributed to passage of the Sarbanes-Oxley
Act which enacted accounting and corporate reforms in July
2002. In addition, Senator Levin continued the money laundering
investigation initiated while he was the Ranking Minority
Member, and the Subcommittee's work contributed to enactment of
major reforms strengthening U.S. anti-money laundering laws in
the 2001 Patriot Act. Also during the 107th Congress, the
Subcommittee opened new investigations into offshore tax
abuses, border security, and abusive practices related to the
pricing of gasoline and other fuels.
In January 2003, at the start of the 108th Congress, after
the Senate Majority party again changed hands, Senator Collins
was elevated to Chairman of the full Committee on Governmental
Affairs, and Republican Senator Norm Coleman of Minnesota
became Chairman of the Subcommittee. Over the next two years,
Senator Coleman held hearings on topics of national and global
concern including illegal file sharing on peer-to-peer
networks, abusive practices in the credit counseling industry,
the dangers of purchasing pharmaceuticals over the Internet,
SARS preparedness, border security, and how Saddam Hussein
abused the United Nations Oil for Food Program. At the request
of Senator Levin, then Ranking Minority Member, the
Subcommittee also examined how some U.S. accounting firms,
banks, investment firms, and tax lawyers were designing,
promoting, and implementing abusive tax shelters across the
country; and how some U.S. financial institutions were failing
to comply with anti-money laundering controls mandated by the
Patriot Act, using as a case history Riggs Bank accounts
involving Augusto Pinochet, the former President of Chile, and
Equatorial Guinea, an oil-rich country in Africa.
During the 109th Congress, Senator Coleman held additional
hearings on abuses associated with the United Nation's Oil for
Food Program, and initiated a series of hearings on Federal
contractors who were paid with taxpayer dollars but failed to
meet their own tax obligations, resulting in billions of
dollars in unpaid taxes. He also held hearings on border
security issues, securing the global supply chain, Federal
travel abuses, abusive tax refund loans, and unfair energy
pricing. At Senator Levin's request, the Subcommittee held
hearings on offshore tax abuses responsible for $100 billion in
unpaid taxes each year, and on U.S. vulnerabilities caused by
states forming 2 million companies each year with hidden
owners.
(2) More Recent Investigations
During the 110th Congress, in January 2007, after the
Senate majority shifted, Senator Levin once again became
Subcommittee Chairman, while Senator Coleman became the Ranking
Minority Member. Senator Levin chaired the Subcommittee for the
next seven years. He focused the Subcommittee on investigations
into complex financial and tax matters, including unfair credit
card practices, executive stock option abuses, excessive
speculation in the natural gas and crude oil markets, and
offshore tax abuses involving tax haven banks and non-U.S.
persons dodging payment of U.S. taxes on U.S. stock dividends.
The Subcommittee's work contributed to enactment of two
landmark bills, the Credit Card Accountability Responsibility
and Disclosure Act (Credit CARD Act) which reformed credit card
practices, and the Foreign Account Tax Compliance Act (FATCA)
which tackled the problem of hidden offshore bank accounts used
by U.S. persons to dodge U.S. taxes. At the request of Senator
Coleman, the Subcommittee also conducted bipartisan
investigations into Medicare and Medicaid health care providers
who cheat on their taxes, fraudulent Medicare claims involving
deceased doctors or inappropriate diagnosis codes, U.S. dirty
bomb vulnerabilities, Federal payroll tax abuses, abusive
practices involving transit benefits, and problems involving
the United Nations Development Program.
During the 111th Congress, Senator Levin continued as
Subcommittee Chairman, while Senator Tom Coburn joined the
Subcommittee as its Ranking Minority Member. During the 111th
Congress, the Subcommittee dedicated much of its resources to a
bipartisan investigation into key causes of the 2008 financial
crisis, looking in particular at the role of high risk home
loans, regulatory failures, inflated credit ratings, and high-
risk, conflicts-ridden financial products designed and sold by
investment banks. The Subcommittee held four hearings and
released thousands of documents. The Subcommittee's work
contributed to passage of another landmark financial reform
bill, the Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010. In addition, the Subcommittee held hearings on
excessive speculation in the wheat market, tax haven banks that
helped U.S. clients evade U.S. taxes, how to keep foreign
corruption out of the United States, and social security
disability fraud.
During the 112th Congress, Senator Levin and Senator Coburn
continued in their respective roles as Chairman and Ranking
Minority Member of the Subcommittee. In a series of bipartisan
investigations, the Subcommittee examined how a global banking
giant, HSBC, exposed the U.S. financial system to an array of
money laundering, drug trafficking, and terrorist financing
risks due to poor anti-money laundering controls; how two U.S.
multinational corporations engaged in offshore tax abuses,
including how Microsoft shifted profits offshore to dodge U.S.
taxes, and Hewlett Packard secretly brought offshore funds back
home without paying taxes by utilizing abusive short term loan
schemes; and how excessive commodity speculation by mutual
funds and others were taking place without Dodd-Frank
safeguards such as position limits being put into effect. At
the request of Senator Coburn, the Subcommittee also conducted
bipartisan investigations into problems with Social Security
disability determinations that, due to poor procedures,
perfunctory hearings, and poor quality decisions, resulted in
over 1 in 5 disability cases containing errors or inadequate
justifications; how DHS state and local intelligence fusion
centers failed to yield significant, useful information to
support Federal counterterrorism efforts; and how certain
Federal contractors that received taxpayer dollars through
stimulus funding nevertheless failed to pay their Federal
taxes.
During the 113th Congress, Senator Levin continued as
Chairman, while Senator John McCain joined the Subcommittee as
its Ranking Minority Member. They continued to strengthen the
Subcommittee's strong bipartisan traditions, conducting all
investigations in a bipartisan manner. During the 113th
Congress, the Subcommittee held eight hearings and released ten
reports on a variety of investigations. The investigations
examined high risk credit derivatives trades at JPMorgan;
hidden offshore accounts opened for U.S. clients by Credit
Suisse in Switzerland; corporate tax avoidance in case studies
involving Apple, Caterpillar, and a structured financial
product known as basket options; online advertising abuses;
conflicts of interest affecting the stock market and high speed
trading; IRS processing of 501(c)(4) applications; defense
acquisition reforms; and bank involvement with physical
commodities. At the end of the 113th Congress, Senator Levin
retired from the Senate.
II. Subcommittee Hearings During the 113th Congress
A. JPMorgan Chase Whale Trades: A Case History of Derivatives Risks &
Abuse (March 13, 2013)
The Subcommittee's first hearing in the 113th Congress
focused on high risk credit derivative trades which were
undertaken by JPMorgan Chase out of its London office and which
were responsible for losses totaling more than $6.2 billion.
The trades used funds supplied by JPMorgan's Chief Investment
Office (CIO), including federally insured deposits from the
bank. The trades were conducted by a JPMorgan London trader
whose transactions were so large that they triggered
speculation over who was behind the ``whale'' trades and whose
identity was unmasked by the media.
The Subcommittee investigation determined that, over the
course of the first quarter of 2012, the CIO used a ``Synthetic
Credit Portfolio'' to knowingly engage in high stakes
derivatives trading involving a mix of complex credit
derivatives. The investigation found that JPMorgan mismarked
its trading book to hide increasing portfolio losses;
disregarded multiple indicators of increasing risk; breached
five different risk limits; manipulated risk models to
eliminate or prevent those breaches; dodged regulatory
oversight; and misinformed investors, regulators, and the
public about what happened. The investigation exposed not only
high risk activities and abuses at JPMorgan Chase, but also
broader, systemic problems related to the valuation, risk
analysis, disclosure, and oversight of synthetic credit
derivatives. The evidence also disproved the assertion that
credit derivatives inherently lower financial risk.
In March 2013, the Subcommittee released a bipartisan
report and held a hearing detailing the JPMorgan Chase whale
trades. The first panel of witnesses consisted of three senior
JPMorgan Chase Bank officers, Ina Drew, former head of the CIO;
Ashley Bacon, acting Chief Risk Officer; and Peter Weiland,
former head of Market Risk for the CIO. They discussed the
nature of the whale trades, risk management practices, and how
the bank handled the increasing losses. The second panel of
witnesses presented testimony from Michael J. Cavanagh, who
headed a JPMorgan task force reviewing the CIO losses and also
served as co-head of JPMorgan Chase's corporate and investment
bank; and Douglas Braunstein, former JPMorgan Chief Financial
Officer and then Vice Chairman of the Board of Directors. They
discussed bank oversight of the whale trades, JPMorgan's
interaction with regulators, and information provided by the
bank to the public and investors. The third panel included
Thomas Curry, Comptroller of the Currency and primary regulator
of JPMorgan Chase Bank; Scott Waterhouse, Federal Examiner-in-
Charge at JPMorgan Chase Bank; and Michael Sullivan, Deputy
Comptroller for Risk Analysis at the Office of the Comptroller
of the Currency (OCC). They discussed JPMorgan's failure to
disclose the existence of the Synthetic Credit Portfolio, the
bank's lack of cooperation with regulators, and the regulators'
failure to detect the high risk portfolio as well as systemic
problems with derivative valuation and risk management.
JPMorgan later paid civil fines totaling $1 billion for
misstating its financial results, engaging in unsafe and
unsound banking practices, and manipulating the credit market.
Two of its traders were indicted for hiding losses, but have
resisted standing trial. The London whale trading abuses
resulted in stronger implementing regulations for the Volcker
Rule to prevent federally insured banks and their subsidiaries
from engaging in proprietary trading disguised as risk-reducing
hedges. Federal regulators also clarified that banks may not
change their derivative valuation methodologies to hide losses,
and that U.S. derivatives requirements apply to a U.S. bank's
foreign branches as well as its domestic branches. U.S. and
international regulatory bodies also reviewed issues related to
the manipulation of bank risk models for derivatives
activities.
B. Offshore Profit Shifting and the U.S. Tax Code--Part 2 (Apple, Inc.)
(May 21, 2013)
The Subcommittee's second hearing was the latest in a
Subcommittee series on corporate offshore profit shifting, and
focused on a case study involving a leading U.S. multinational
corporation, Apple Inc. For the last decade, the Subcommittee
has examined how multinational corporations and wealthy
individuals use offshore tax schemes to dodge U.S. taxes,
leaving other taxpayers to make up the difference. According to
the Congressional Research Service, the share of corporate
income taxes in the United States has fallen from a high of 32
percent of Federal tax revenue in 1952, to less than 10 percent
in 2012. Meanwhile, payroll taxes--which almost every working
American must pay--have increased from 10 percent of Federal
revenue to 35 percent.
In May 2013, the Subcommittee investigation released a
bipartisan memorandum and held a hearing showing how Apple Inc.
established three Irish subsidiaries with no tax residency
anywhere, ran those subsidiaries from the United States, and
shifted more than $74 billion in profits over four years to
Ireland while dodging payment of U.S. taxes. The Irish
subsidiaries, Apple Operations International, Apple Sales
International, and Apple Operations Europe, were controlled by
the U.S. parent company, Apple Inc. Since Ireland bases tax
jurisdiction over companies that are managed and controlled in
Ireland, and the United States bases tax residency on where a
company is incorporated, Apple exploited the gap between the
two, and its subsidiaries failed to file an income tax return
in either country, or any other country, for at least five
years. One did pay taxes in Ireland on a tiny fraction of its
income, resulting, for example, in an effective 2011 Irish tax
rate of only five hundreds of one percent. The hearing also
showed that, in addition to creating non-tax resident foreign
affiliates, Apple Inc. utilized U.S. tax loopholes to avoid
U.S. taxes on $44 billion in otherwise taxable offshore income
over four years.
The hearing heard from three panels of witnesses. The first
panel consisted of two international corporate tax experts,
Stephen E. Shay, former head of international tax policy at the
U.S. Department of the Treasury and professor at Harvard Law
School; and J. Richard Harvey, professor of law at Villanova
University School of Law. Both criticized actions taken by
Apple to avoid U.S. corporate taxes. The second panel presented
testimony from three senior Apple executives, Timothy D. Cook,
the CEO; Peter Oppenheimer, the Chief Financial Officer; and
Phillip A. Bullock, the head of Tax Operations. All three
defended Apple's actions, but admitted the company had formed
three Irish subsidiaries with no tax residency anywhere. The
third panel consisted of Mark J. Mazur, Treasury Assistant
Secretary for Tax Policy, and Samuel M. Maruca, Director of
Transfer Pricing Operations in the Large Business &
International Division at the Internal Revenue Service. While
neither would comment on the Apple case in particular, both
expressed concerns about corporate tax loopholes that enabled
U.S. companies to avoid payment of U.S. taxes.
The bipartisan memorandum released by the Subcommittee
offered recommendations to strengthen U.S. transfer pricing
rules and reform the so-called ``check-the-box'' and ``look-
through'' loopholes that enable multinationals to shield
offshore income from U.S. taxes. As a result of this and other
examples of multinational corporate tax abuse, in 2013, G8
world leaders called for an end to offshore corporate profit
shifting and initiated international efforts to stop
multinational corporate tax avoidance. G8 leaders also reached
consensus on the need for an international template for
multinational corporations to disclose their tax payments on a
country-by-country basis. In addition, Ireland changed its law
to prevent multinational corporations from establishing Irish
subsidiaries with no tax residency in any country.
C. Offshore Tax Evasion: The Effort to Collect Unpaid Taxes on Billions
In Hidden Offshore Accounts (February 26, 2014)
The Subcommittee's next hearing built upon two earlier
hearings, held by the Subcommittee in 2008 and 2009, showing
how well-known international banks, located in secrecy
jurisdictions and tax havens, were deliberately helping U.S.
clients cheat on their taxes by opening offshore accounts never
reported to the Internal Revenue Service (IRS), despite U.S.
laws requiring their disclosure. The earlier hearings focused,
in part, on UBS, Switzerland's largest bank, which made a
dramatic admission at the 2008 hearing that it had facilitated
tax evasion by opening undisclosed Swiss accounts for U.S.
clients. After the hearing, in 2009, UBS signed a deferred
prosecution agreement with the U.S. Department of Justice (DOJ)
on charges of conspiring to defraud the United States by
impeding U.S. tax collection, paid a $780 million fine,
disclosed the names of some U.S. clients with hidden Swiss
accounts, and agreed to no longer provide U.S. clients with
undeclared Swiss accounts.
In February 2014, the Subcommittee released a bipartisan
report and held a hearing on how Credit Suisse, Switzerland's
second largest bank, engaged in similar conduct and delayed
closing Swiss accounts for some U.S. clients for up to five
years. The Subcommittee investigation disclosed that, at its
peak, Credit Suisse had over 22,000 U.S. customers with Swiss
accounts containing more than 12 billion Swiss francs, which
translated into $10 to $12 billion U.S. dollars. Nearly 1,500
of those accounts were opened in the names of offshore shell
companies to hide U.S. ownership. Another nearly 2,000 were
opened at Clariden Leu, Credit Suisse's own private bank.
Almost 10,000 were serviced by a special Credit Suisse branch
at the Zurich airport which enabled clients to fly in to do
their banking without leaving airport grounds. One client
disclosed that, at Credit Suisse headquarters in Zurich, he was
ushered into a remotely controlled elevator with no floor
buttons, and escorted into a bare room with white walls to
conduct his banking transactions, all dramatizing the bank's
focus on secrecy.
In addition to disclosing Credit Suisse's actions, the
investigation criticized DOJ for failing to use U.S. legal
tools, such as grand jury subpoenas and John Doe summonses, to
obtain the names of U.S. tax evaders with hidden Credit Suisse
accounts, choosing instead to file Swiss treaty requests with
little success. The investigation noted that, over a five-year
period, due to Swiss secrecy laws, DOJ had obtained
information, including U.S. client names, for only 238
undeclared Swiss accounts out of the tens of thousands that
Credit Suisse opened. The hearing criticized DOJ for its slow
enforcement efforts to collect unpaid taxes on funds held
offshore, and hold accountable the tax evaders, banks, and
bankers involved.
The hearing heard from two panels of witnesses. The first
consisted of senior officers from Credit Suisse, including
Brady Dougan, the CEO; Romeo Cerutti, the General Counsel; and
Hans-Ulrich Meiser and Robert Shafir, co-heads of the Private
Banking and Wealth Management division. While the officers
admitted that the bank had moved too slowly to close the hidden
Swiss accounts, they also asserted that the misconduct was the
result of rogue bankers rather than bank policy. The second
panel of witnesses consisted of James M. Cole, Deputy Attorney
General at DOJ, and Kathryn M. Keneally, Assistant Attorney
General for the Tax Division. Both defended DOJ's use of Swiss
treaty requests instead of U.S. discovery tools to obtain
accountholder names, DOJ's failure to request the extradition
of any of the seven Credit Suisse bankers indicted in 2011 for
facilitating tax evasion, and DOJ's failure to obtain the names
of thousands of U.S. tax evaders with hidden Credit Suisse
accounts.
After the hearing, Credit Suisse entered a guilty plea to
DOJ charges of aiding and abetting U.S. tax evasion, and paid a
$2.6 billion penalty, including $1.8 billion to DOJ, $100
million to the Federal Reserve, and $715 million to the New
York State Department of Financial Services. Credit Suisse also
paid a $196 million fine to the U.S. Securities and Exchange
Commission for providing broker-dealer and investment advisory
services to U.S. clients without first registering with the
agency. In addition, in July 2014, the Foreign Account Tax
Compliance Act (FATCA), inspired in part by Subcommittee
hearings on secret offshore accounts, took effect and made it
more difficult to conceal offshore accounts opened for U.S.
clients in the future.
D. Caterpillar's Offshore Tax Strategy (April 1, 2014)
The Subcommittee's next hearing was another in its series
of hearings on corporate offshore profit shifting, this time
focused on a case study involving Caterpillar Inc., an American
manufacturer of heavy equipment. As explained earlier, for the
last decade, the Subcommittee has examined how multinational
corporations and wealthy individuals have been using offshore
tax schemes to dodge U.S. taxes, leaving other taxpayers to
make up the difference.
In April 2014, the Subcommittee held a hearing and issued a
majority staff report examining how Caterpillar Inc. shifted $8
billion in profits from its foreign parts business--a business
run primarily from the United States--to a Swiss affiliate to
avoid paying $2.4 billion in U.S. taxes to date. The case
history showed that, in 1999, Caterpillar paid its accountant,
PriceWaterhouseCoopers (PWC), over $55 million to develop and
implement the offshore tax strategy. The strategy called for
Caterpillar Inc. to issue a license to one of its Swiss
affiliates, Caterpillar SARL, to sell Caterpillar parts
worldwide. The parts license changed almost nothing in the
actual functioning of Caterpillar's parts business. Its Swiss
affiliate lacked the personnel, infrastructure, and expertise
to actually run the worldwide parts operation and instead
simply paid Caterpillar Inc. to continue running the business.
The Swiss affiliate also paid Caterpillar Inc. a ``royalty
payment'' equal to about 15 percent of the parts profits, while
attributing the remaining profits to Switzerland. The result
was that Caterpillar switched from reporting 85 percent or more
of its foreign parts profits on its U.S. tax return to
reporting 85 percent of more of those same profits on its Swiss
tax return, subject to at a negotiated effective Swiss tax rate
of 4 percent to 6 percent. PWC, in its role as independent
accountant for the company, approved Caterpillar's use of the
offshore tax strategy, essentially auditing the very tax
strategy it had developed and sold to the company.
Although Caterpillar had spent 90 years working to build up
its international parts business, Caterpillar gave its Swiss
affiliate the license to sell its parts worldwide without
requiring any compensation for developing the business. In an
arm's length transaction, no company would turn over a
profitable business that took decades to develop without
receiving compensation. Nor would a business relinquish 85
percent of the ongoing profits from that business in exchange
for 15 percent of the profits. But that was the arrangement
Caterpillar entered into with its affiliate. The result was
that, from 2000 to 2012, the Swiss tax strategy shifted $8
billion in profits from Caterpillar Inc. to its Swiss
affiliate, cutting Caterpillar's U.S. tax bill by $2.4 billion.
Caterpillar's actions provided additional evidence of the need
to close unjustified U.S. corporate tax loopholes that enable
profitable corporations to avoid paying U.S. taxes.
The hearing heard from three panels of witnesses. The first
panel consisted of two international corporate tax experts,
Reuven S. Avi-Yonah, the Irwin I. Cohn Professor Law at the
University of Michigan School of Law, and Bret Wells, Assistant
Professor of Law at the University of Houston Law Center. Both
criticized Caterpillar's offshore tax strategy as an improper
attempt to avoid U.S. corporate taxes. The second panel of
witnesses presented testimony from three PWC accountants who
helped develop and implement Caterpillar's Swiss tax strategy,
Thomas F. Quinn, TWC tax partner; Steven R. Williams, PWC
managing director; and James G. Bowers, PWC tax partner. All
three defended the company's use of the PWC-developed tax
strategy and denied that PWC had a conflict of interest in
developing, selling, auditing, and approving use of that tax
strategy. The third panel consisted of three senior Caterpillar
officers, Robin D. Beran, Chief Tax Officer; Rodney Perkins,
former Senior International Tax Manager; and Julie A. Lagacy,
Vice President from the Finance Services Division. All three
defended Caterpillar's use of its offshore tax strategy and
shifting its parts profits from the United States to
Switzerland.
Caterpillar's actions, as well as other examples of
multinational corporate tax abuse, contributed to G8 world
leaders, in 2013, calling for an end to offshore profit
shifting and initiating international efforts to stop
multinational corporate tax avoidance. G8 leaders also reached
consensus on the need for an international template for
multinational corporations to disclose their tax payments on a
country-by-country basis. In addition, the Public Company
Accounting Oversight Board initiated a review of the propriety
of an independent accounting firm auditing an offshore tax
strategy that the firm sold to its client.
E. Online Advertising and Hidden Hazards to Consumer Security and Data
Privacy (May 15, 2014)
The Subcommittee's next hearing addressed a new
investigative topic initiated by Ranking Member John McCain
related to data privacy. In May 2014, the Subcommittee held a
hearing and released a bipartisan report examining how current
online advertising practices expose online consumers to hidden
hazards, including data breaches, malware attacks, and other
cybercrimes.
In 2013, U.S. online advertising revenues for the first
time surpassed that of broadcast television advertising as
companies spent $42.8 billion to reach consumers. The hearing
examined the enormous complexity of the online advertising
ecosystem, including the many parties involved in delivering a
single ad. The investigation showed that a simple display of an
online advertisement can trigger consumer interactions with a
chain of other companies, many of which are unknown to the
consumer and each of which could compromise the consumer's
privacy or become a source of vulnerability for cybercriminals.
In one instance, for example, the investigation found that
visiting a popular tabloid news website triggered a user
interaction with some 352 other web servers as well. On radio
or television, the content of an advertisement is generally
transmitted by the same party that hosts the rest of the
content on the station. In contrast, host websites commonly
sell ad space on their sites through an intermediary company,
most often associated with a well-known tech company. The
intermediary--often referred to as an ad network or exchange--
typically directs an internet user's browser to display an
advertisement from a server controlled by neither the ad
network nor the original host website. The investigation
disclosed that host websites often do not select and cannot
predict which intermediary advertising networks will deliver
advertisements to consumers visiting their sites, exposing
consumers to unmanaged risks. Today, most ad networks also have
limited control over the content of the advertisements whose
placements they facilitate.
The growth of online advertising has also brought with it a
rise in cybercriminals attempting to use mainstream websites to
infect consumers' computers with advertisement-based malware or
``malvertising.'' Some estimates indicate that malvertising
increased over 200 percent in 2013, to over 209,000 incidents
generating over 12.4 billion malicious ad impressions. A recent
study found that more than half of internet website publishers
have suffered a malware attack through a malicious
advertisement. The report detailed examples in which consumers
were subjected to malicious software delivered through the
online advertising network. The complexity and many
vulnerabilities of the online advertising ecosystem also made
it difficult for individual industry participants to adopt
effective long-term security countermeasures. The investigation
disclosed that host websites often operate under voluntary
compliance regimes or contractual arrangements that are
ineffective, unreliable, or poorly enforced. In addition, as
the online advertising industry grows more complex, it is also
becoming more difficult to ascertain responsibility when
consumers are hurt by malicious advertising or data collection.
Moreover, there is currently no standard reporting requirement
that informs the public when an ad network is compromised by
malware or cybercriminals. The lack of accountability and
disclosure requirements in online advertising may lead to lax
security regimes, creating serious vulnerabilities for Internet
users. The investigation determined that the Federal Trade
Commission also needs tools to protect consumers from online
advertising abuses.
The hearing heard from two panels of witnesses. The first
panel consisted of three individuals with industry experience
in online advertising problems and data privacy threats. They
included Alex Stamos, Chief Information Security Officer for
Yahoo! Inc.; George F. Salem, Senior Product Manager for Google
Inc., and Craig Spiezle, Executive Director, founder and
President of Online Trust Alliance. All three discussed
instances of malicious online advertising and what is being
done and can be done by the private sector to protect online
consumers. The second panel heard from Maneesha Mithal, Federal
Trade Commission Associate Director for the Division of Privacy
and Identity Protection; and Lou Mastria, Managing Director of
the Digital Advertising Alliance. Both discussed the
development of standards and procedures to protect online
consumers from malicious online advertising and the need for
stronger FTC tools to combat online advertising abuses.
F. Conflicts of Interest, Investor Loss of Confidence, and High Speed
Trading in U.S. Stock Markets (June 17, 2014)
The Subcommittee's next hearing focused on conflicts of
interest affecting how stock brokers place trading orders in
U.S. stock markets, including for high speed traders. The
conflicts arise from millions of dollars in opaque payments
made to brokers in order to attract client orders, including
``payments for order flow'' made by wholesale brokers to retail
brokers, and so-called ``maker-taker'' rebates and fees paid by
trading venues to broker dealers, both of which created
incentives for brokers to put their financial interests before
those of their clients, fueling public distrust of U.S. stock
markets.
The June 2014 hearing examined both conflicts of interest
affecting broker placement of trading orders. The first
conflict, involving payment for order flow, arose when a retail
broker chose a wholesale broker to execute client trades and
accepted payment from that wholesale broker for placing those
orders. One reason wholesale brokers pay for order flow is to
enable the wholesale broker to fill the orders out of its own
inventory and profit from the trades. The Subcommittee
investigation determined that payments from wholesale to retail
brokers can add up to millions of dollars, yet were rarely
disclosed or passed on to retail customers. The second conflict
of interest, involving maker-taker rebates and fees, arose when
a broker decided to place client orders on a trading venue
rather than with a wholesale broker, and chose the venue based
upon the broker's financial interest, rather than on best
execution for its clients. Under the maker-taker system, when a
broker makes an offer on a venue to buy or sell a stock at a
certain price, the broker is generally classified as a
``maker,'' and most trading venues will pay the broker a rebate
when that offer is accepted. A broker who accepts a maker's
offer to buy or sell is called a ``taker,'' and will generally
pay a fee to the trading venue. The investigation found that,
by routing customer orders in a manner that maximizes maker
rebates and avoids taker fees, a broker dealer can add millions
of dollars to its bottom line, creating a powerful incentive
for the broker dealer to send client orders to the trading
venues that are in the broker's best interest even if they are
not in the clients' best interest. The investigation also found
that the extent of those payments were largely undisclosed by
broker dealers. In addition, the investigation found that the
market complexity and fragmentation caused by the maker-taker
system could be exploited by high frequency traders.
The hearing heard from two panels of witnesses. The first
panel included Bradley Katsuyama, President and CEO of IEX
exchange, who discussed the conflicts of interest affecting
U.S. stock markets and advocated action to address them. In
addition, Robert H. Battalio, Professor of Finance at the
Mendoza College of Business at the University of Notre Dame,
discussed research he had conducted indicating that when given
a choice, four leading retail brokers sent their orders to the
trading venues offering the biggest maker rebates, even when
those venues did not offer the best execution for clients. The
second panel heard from four senior industry officials with
differing views on the nature of the conflicts of interest and
what should be done about them. They included Thomas W. Farley,
President of the New York Stock Exchange, which described the
conflicts as having a ``corrosive impact'' on stock markets;
Joseph P. Ratterman, CEO of BATS Global Markets, which did not
view the conflicts as creating substantial problems; Joseph P.
Brennan, Global Equity Index head at the Vanguard Group, a
major mutual fund company that has expressed concerns about the
broker conflicts of interest; and Steven Quirk, Senior Vice
President of the Trader Group at TD Ameritrade, a retail broker
that derived significant revenues from payments for order flow
and maker rebates.
After the hearing, the Financial Industry Regulatory
Authority launched a probe into how retail brokers route
customer orders. The inquiry seeks to determine, among other
things, how brokers determine where to route orders so that
customers receive the best price possible under prevailing
market conditions. The Securities and Exchange Commission also
told the Subcommittee that it would consider issuing a rule to
enhance order routing disclosures.
G. Abuse of Structured Financial Products: Misusing Basket Options to
Avoid Taxes and Leverage Limits (July 22, 2014)
The Subcommittee's next hearing addressed a capital gains
tax scheme involving hedge funds avoiding the payment of
billions of dollars in Federal taxes. It exposed how, from 1999
through 2013, two global banks used a structured financial
product known as a basket option to help more than a dozen
hedge funds dodge limits on trading with borrowed money, earn
huge trading profits, and then claim that those profits
qualified for the lower long-term capital gains tax rate, even
for trades that lasted seconds. One hedge fund, Renaissance
Technology Corp. (RenTec), used this scheme to avoid paying
taxes estimated at more than $6 billion.
In July 2014, the Subcommittee held a hearing and issued a
bipartisan report detailing the misuse of basket options to
avoid U.S. taxes. The two banks, Deutsche Bank and Barclays
Bank, sold 199 basket options to hedge funds that used them to
make over $100 billion in trades, including 79 involving
RenTec, the largest participant. To produce the tax savings,
each bank opened a designated account in its own name,
appointed the hedge fund as the ``investment advisor'' for the
account, authorized the investment advisor to buy and sell
securities for the account, and then gave the hedge fund an
``option'' on the account with a payoff equal to any profits
generated by the ``basket'' of securities in the account. The
hedge fund put up 10 percent of the cash needed to buy the
securities, while the bank lent the other 90 percent. The hedge
fund made all the trading decisions and reaped all the trading
profits, while in effect holding an ``option'' on its own
trading efforts. RenTec estimated that it used the basket
option accounts to make 100,000--150,000 trades per day or
approximately 30 million trades per year per bank.
The key to the tax savings was the claim that basket
options exercised after one year produced trading profits that
qualified for the reduced long-term capital gains tax rate,
even if the underlying trades had lasted seconds or were
executed the day before the option was exercised. The lower
long-term capital gains tax rate is intended to provide an
incentive for investors to risk capital on long-term
investments that grow the economy and create jobs; the high-
volume trading that, for example, RenTec conducted through its
basket options did not meet that test.
In addition, the banks used the basket options to enable
the hedge funds to trade stocks using borrowed money, in excess
of regulatory limits. The 1929 stock market crash harmed the
U.S. economy, not just by the collapse of thousands of stock
speculators, but also by the failure of thousands of banks that
had lent them money and couldn't collect on the loans. In
response, Congress enacted limits on the use of borrowed money
to trade securities. Had the hedge funds used normal brokerage
accounts, they would have been subject to the 2-to-1 Federal
leverage limit; instead the banks used basket options to
provide the hedge funds with leverage of up to 20-to-1, by
treating the funds deposited into the option accounts as
deposits of their own money rather than as loans, despite
charging the hedge funds financing fees for use of the funds.
The end result was that the hedge funds, facilitated by the
banks, claimed billions of dollars in unjustified tax savings
while avoiding leverage limits that protect the U.S. financial
system from systemic risks caused by stock speculation fueled
by borrowed funds.
As part of its investigation, the Subcommittee commissioned
and released, along with other Senators, a Government
Accountability Office (GAO) report disclosing that the Internal
Revenue Service (IRS) audits less than 1 percent of large
partnerships per year, including partnerships that function as
hedge funds. GAO found that, in 2012, just 0.8 percent of large
partnerships, defined as having $100 million or more in assets
and 100 or more direct and indirect partners, underwent an IRS
audit versus 27 percent of traditional C corporations. That low
audit rate made it difficult for the IRS to detect abusive tax
practices and underpayment of U.S. taxes by hedge funds,
including in connection with basket options.
The hearing heard from three panels of witnesses. The first
panel consisted of Steven Rosenthal, a Senior Fellow at the
Urban-Brookings Tax Policy Center, who criticized the basket
option tax scheme; and James R. White, Director of Tax Issues
at GAO, who discussed the GAO report on IRS audits of large
partnerships. The second panel heard testimony from four senior
officials at the banks and RenTec, all of whom defended their
basket option activities. They included Martin Malloy, Managing
Director at Barclays Bank; Satish Ramakrishna, Managing
Director at Deutsche Bank Securities; Mark Silber, RenTec's
Chief Financial Officer, Chief Compliance Officer, Chief Legal
Officer, and Vice President; and Jonathan Mayers, RenTec's
Counsel. The third panel consisted of high level officials from
the banks and RenTec, including Gerard LaRocca, Chief
Administrative Officer for the Americas at Barclays; M. Barry
Bausano, President and Managing Director of Deutsche Bank
Securities; and Peter Brown, Co-CEO and Co-President of RenTec.
They also defended their use of basket options.
The Subcommittee investigation called for the IRS to review
the hedge funds' basket option activities; for the U.S.
Securities and Exchange Commission to review the hedge funds'
and banks' circumvention of Federal leverage limits; and for
Federal bank regulators to review the banks' facilitation of
the basket option tax schemes.
H. Wall Street Bank Involvement With Physical Commodities (November 20
and 21, 2014)
The Subcommittee's final hearing during the 113th Congress,
and Chairman Levin's final hearing as Subcommittee Chairman,
examined Wall Street bank involvement with physical
commodities.
In November 2014, the Subcommittee held a hearing and
released a bipartisan report detailing case studies of Goldman
Sachs, Morgan Stanley, and JPMorgan Chase, and their extensive
physical commodity activities, including warehousing aluminum,
copper, and other metals, trading uranium, mining coal,
operating oil and gas storage and pipeline facilities,
supplying jet fuel to airlines, and controlling power plants.
The Subcommittee investigation also described a three-year
review of those physical commodity activities by Federal
Reserve examiners who identified a host of risks and
recommended steps to reduce those risks. The investigation
examined not only the catastrophic event and environmental
risks incurred by the banks, but also their involvement with
commodity price manipulation and use of non-public information
to gain unfair trading advantages in financial commodity
markets.
The hearing took place over two days and heard from five
panels of witnesses. On the first day, three panels presented
evidence. The first panel consisted of two witnesses involved
with Goldman's aluminum warehousing activities, Christopher
Wibbelman, President and CEO of Metro International warehouse,
and Jacques Gabillon, head of Goldman's Global Commodities
Principal Investing Group and Chairman of the Board of the
warehouse company. Both admitted that the wait to remove
aluminum from the warehouse had grown dramatically during
Goldman's ownership of the company, and that the warehouse had
engaged in so-called merry-go-round transactions to keep
aluminum from leaving the warehouse system, but denied that
those actions manipulated aluminum supplies or prices, or that
Goldman took advantage of non-public warehouse information when
trading aluminum-related financial products. The second panel
consisted of two aluminum experts, Jorge Vazquez, Founder and
Managing Director of Harbor Aluminum Intelligence, and a
leading aluminum analyst; and Nick Madden, Senior Vice
President and Chief Supply Chain Officer for Novelis Inc., the
largest purchaser of aluminum in the world. Both testified that
Goldman's activities had disrupted normal aluminum pricing, and
that confidential warehouse information could be used to gain
trading advantages. The third panel for the day consisted of
senior officials from the three banks, Gregory A. Agran, Co-
Head of Goldman's Global Commodities Group; Simon Greenshields,
Co-Head of Morgan Stanley's Global Commodities group; and John
Anderson, Co-Head of JPMorgan's Global Commodities group. All
three answered questions about their physical commodity
activities.
On the second day, two additional panels of witnesses
provided testimony at the hearing. The first panel consisted of
Saule Omarova, Professor of Law at Cornell University and an
expert on banking law; and Chiara Trabucchi, a principal at
Industrial Economics Inc. and an expert on financial and
environmental risk management. Professor Omarova testified that
current bank involvement with physical commodities was
unprecedented and contrary to longstanding U.S. principles
against mixing banking with commerce. Ms. Trabucchi testified
that banks appeared ill prepared to address the catastrophic
event risks associated with their physical commodity
activities. The second panel consisted of two Federal
regulators, Daniel K. Tarullo, a Federal Reserve Governor
involved with bank holding company oversight, and Larry D.
Gasteiger, Acting Director of the Office of Enforcement at the
Federal Energy Regulatory Commission (FERC). Mr. Gasteiger
discussed FERC's legal actions against banks for manipulating
electricity prices and payments, while Mr. Tarullo discussed
the Federal Reserve's concerns with bank holding company
involvement with physical commodities and its plans to propose
a rulemaking in the first quarter of 2015 to reduce related
risks.
After the hearing, bipartisan legislation was introduced by
the Subcommittee Chairman and Ranking Member to prevent banking
entities from engaging in financial commodity trading if they
own or have an interest in businesses or facilities involved
with the same physical commodities.
III. Legislative Activities During the 113th Congress
The Permanent Subcommittee on Investigations does not have
legislative authority, but because its investigations play an
important role in bringing issues to the attention of Congress
and the public, the Subcommittee's work frequently contributes
to the development of legislative initiatives. The
Subcommittee's activity during the 113th Congress was no
exception, with Subcommittee hearings and Members playing
prominent roles in several legislative initiatives.
A. Cut Unjustified Tax (CUT) Loopholes Act (S. 268)
On February 11, 2013, Senators Levin and Whitehouse re-
introduced S. 268, the Cut Unjustified Tax Loopholes or CUT
Loopholes Act, to close a series of tax loopholes, not only to
increase the fairness of the tax code, but also to produce
significant revenues for deficit reduction and avoid the
across-the-board budget cuts known as sequestration. The
proposed changes to the tax code were the product of a series
of Subcommittee hearings on corporate tax avoidance. The bill
included provisions to close a host of corporate offshore tax
loopholes, including loopholes allowing corporations to deduct
expenses for moving operations offshore, lower their taxes by
manipulating foreign tax credits or moving intellectual
property moved offshore, and avoid paying taxes by shifting
corporate profits to tax havens. The bill also targeted
domestic corporate tax loopholes, including those allowing
corporations to take stock option tax deductions that were
billions of dollars greater than the stock option expenses
shown on their books; use a so-called ``derivatives blended
rate'' enabling hedge funds and others to treat earnings from
short-term investments in certain derivatives as long-term
capital gains; exclude tar sands oil from excise taxes
supporting the Oil Spill Liability Trust Fund; and enable
investment managers, such as hedge fund managers, to use the
so-called carried interest loophole to pay less than ordinary
income tax rates on income earned from providing investment
management services.
Closing those loopholes was estimated to produce, over ten
years, at least $260 billion in deficit reduction. The bill was
referred to the Finance Committee which took no further action.
B. Stop Tax Haven Abuse Act (S. 1533)
On September 19, 2013, Senators Levin, Whitehouse, Shaheen,
and Begich--later joined by Senators Markey and Mikulski--
reintroduced the Stop Tax Haven Abuse Act, S. 1533, to close
offshore tax loopholes and strengthen offshore tax enforcement.
This legislation was based upon more than ten years of
Subcommittee investigations into offshore tax havens, abusive
tax shelters, and the professionals who design, market, and
implement tax dodges. While some provisions from earlier
versions of this bill were enacted into law, offshore tax
abuses have continued and additional reforms are needed. The
Subcommittee has estimated that offshore tax abuses cost the
Treasury at least $150 billion per year.
Among other measures, the bill would authorize Treasury to
take special measures against foreign jurisdictions and
financial institutions that impede U.S. tax enforcement; and
establish rebuttable presumptions in tax enforcement cases that
offshore companies and trusts are controlled by the U.S.
persons who send or receive assets from them. The bill would
also prevent companies that are managed and controlled from the
United States from claiming foreign status for tax purposes;
and close a loophole allowing swap payments to be treated as
non-U.S. source income when sent from the United States to
persons offshore. Other provisions would require multinational
corporations to report the taxes they pay on a country-by-
country basis in public SEC filings; and require U.S. hedge
funds and company formation agents to establish anti-money
laundering programs. Still other provisions would stop
corporations from deducting expenses for moving operations
offshore, manipulating foreign tax credit abuses, and using
short-term loan abuses to dodge taxes. The bill would also
repeal the so-called check-the-box and CFC look-through rules
that create tax incentives for U.S. multinationals to shift
profits offshore and manipulate their offshore affiliates to
avoid paying U.S. taxes on passive income.
This bill is very similar to Title I of the CUT Loopholes
Act, described above. The Senate bill was referred to the
Finance Committee which took no further action.
C. Incorporation Transparency and Law Enforcement Assistance Act (S.
1465)
On August 1, 2013, Senators Levin, Grassley, Feinstein and
Harkin, later joined by Senator Whitehouse, re-introduced S.
1465, the Incorporation Transparency and Law Enforcement
Assistance Act, to protect the United States from U.S.
corporations with hidden owners being misused to commit crimes,
including terrorism, drug trafficking, money laundering, tax
evasion, financial fraud, and corruption. The bill is based
upon a series of Subcommittee investigations which found that
the 50 states establish nearly two million U.S. companies each
year without knowing who is behind them, that the lack of
ownership information invites wrongdoers to incorporate in the
United States, and that the same lack of ownership information
impedes U.S. law enforcement efforts when U.S. corporations are
misused to commit crimes.
Among other provisions, the bill would require the states
to obtain beneficial ownership information for the corporations
or limited liability companies formed within their borders;
require states to provide that information to law enforcement
in response to a subpoena or summons; and impose civil and
criminal penalties for persons who knowingly submit false
ownership information. The bill would exempt all publicly
traded and regulated corporations, as well as certain other
corporations whose ownership information was already available.
In 2013, after G8 world leaders called for disclosing
corporate owners, the White House issued an action plan
championing legislation like the Levin-Grassley bill, which has
been endorsed by multiple law enforcement groups. The bill was
referred to the Committee on the Judiciary which took no
further action.
D. Ending Insider Trading in Commodities Act (S. 3013)
On December 12, 2014, Senators Levin and McCain introduced
S.3013, the Ending Insider Trading in Commodities Act. This
bill is the product of the Subcommittee's investigation into
Wall Street bank involvement with physical commodities,
described above, and is intended to prevent price manipulation
and unfair trading. It would prevent a large financial
institution from trading in physical commodities and commodity-
related financial instruments while at the same time in
possession of material, non-public information related to the
storage, shipment, or use of a commodity arising from its
ownership or interest in a business or facility used to store,
ship, or use the commodity.
The bill was referred to the Committee on Agriculture
which, due to the ending of the Congress, took no further
action.
E. Partnership Auditing Fairness Act (S. 3018)
On December 16, 2014, Senators Levin introduced S. 3018,
the Partnership Auditing Fairness Act to improve and streamline
audit procedures for large partnerships, such as hedge funds,
private equity funds, and publicly traded partnerships.
According to a report by the Government Accountability Office,
in 2012, the Internal Revenue Service (IRS) audited less than 1
percent of large partnerships compared to 27 percent of large
corporations. The bill is intended to ensure that large for-
profit partnerships, like other large profitable businesses,
are subject to routine audits by the IRS and eliminate audit
red tape that currently impedes IRS oversight. The bill is the
product of the Subcommittee's investigation during this
Congress into hedge fund use of a structured financial product
known as basket options, which was used to avoid billions of
dollars in U.S. taxes and demonstrated the need for routine IRS
audits of hedge funds and other large partnerships. The bill
mirrors a provision in the Tax Reform Act of 2014, introduced
in the House of Representatives earlier this year by
Congressman David Camp.
The bill was referred to the Committee on Finance which,
due to the ending of the Congress, took no further action.
IV. Reports, Prints, and Studies
In connection with its investigations, the Subcommittee
often issues lengthy and detailed reports. During the 113th
Congress, the Subcommittee released ten such reports, listed
below, some of which have already been partly described in
connection with Subcommittee hearings.
A. JPMorgan Chase Whale Trades: A Case History of Derivatives Risks &
Abuses, March 15, 2013 (Report Prepared by the Majority and
Minority Staffs of the Permanent Subcommittee on Investigations
and released in conjunction with the Subcommittee's hearing on
March 15, 2013)
In March 2013, following a nine-month probe, the
Subcommittee released its first report of the 113th Congress.
This 300-page bipartisan staff report examined the so-called
``whale trades'' that, in 2012, caused JPMorgan Chase & Co.,
America's biggest bank and largest derivatives dealer, to lose
at least $6.2 billion. As explained earlier, this report was
released in connection with a Subcommittee hearing examining
that trading activity.
The report detailed how the whale trades were conducted,
presenting information on actions taken by the traders in the
London office of the Chief Investment Office (CIO) of JPMorgan
Chase Bank, their supervisors, and associated risk management
and financial personnel. The report described the nature and
extent of the high risk synthetic credit derivative trades
executed over the first quarter of 2012, and how JPMorgan Chase
personnel handled the mounting losses. It described how the
traders mismarked the trading book to hide the losses; managers
disregarded multiple indicators of increasing risk and allowed
ongoing breaches of five different risk limits; quantitative
experts manipulated the risk models; and the bank dodged
regulatory oversight and misinformed investors, regulators, and
the public about its risky derivatives trades. The report
exposed not only high risk activities and abuses at JPMorgan
Chase, but also broader, systemic problems related to the
valuation, risk analysis, disclosure, and oversight of
synthetic credit derivatives. As indicated earlier, the report
presented detailed evidence disproving the assertion that
credit derivatives inherently lower financial risk.
The report offered a number of bipartisan recommendations
to detect, prevent, and stop high risk derivatives trading
involving synthetic credit derivatives at federally insured
banks. They included requiring Federal bank regulators to
identify and obtain performance data for all derivatives
investment portfolios at the banks they oversee; require
contemporaneous documentation of all hedges, including how each
so-called hedge lowered risks associated with specified assets;
and strengthen credit derivative valuation procedures to ensure
derivatives are accurately priced and valued. The report also
recommended that Federal regulators identify and investigate
all large or sustained breaches of risk limits and all risk or
capital evaluation models which, when activated, materially
lower the purported risk or capital requirements associated
with derivative trading activities. In addition, the report
recommended that regulators promptly issue a final regulation
implementing the Volcker Rule to stop high risk proprietary
trading at federally insured banks, and to impose additional
capital charges for those trading activities to ensure banks
can cover potential losses.
B. Social Security Disability Benefits: Did a Group of Judges, Doctors,
and Lawyers Abuse Programs for the Country's Most Vulnerable?,
October 7, 2013 (Report Prepared by the Majority and Minority
Staffs of the Committee on Homeland Security and Governmental
Affairs and of its Permanent Subcommittee on Investigations,
and released by the full Committee in conjunction with a full
Committee hearing on October 7, 2013)
In October 2013, the full Committee, under the leadership
of Senator Coburn, released a 160-page joint bipartisan staff
report from the Chairmen and Ranking Members of the full
Committee and the Subcommittee, presenting a case study of how
one lawyer living in Kentucky, Eric Conn, engaged in a raft of
improper practices to obtain disability benefits for thousands
of claimants. This report followed an earlier report, issued by
the Subcommittee's Minority staff in September 2012, finding
deficiencies in how Social Security administrative law judges
(ALJs) decided Social Security disability cases, detailing
decisions which ``failed to properly address insufficient,
contradictory, or incomplete evidence.'' The 2013 report built
upon that earlier work as well as investigative efforts
conducted, in part, by the Subcommittee when Senator Coburn was
the Subcommittee's Ranking Member during the 112th Congress.
The joint bipartisan report detailed improper Social
Security disability practices by Mr. Conn and his law firm,
which included the manufacture of boilerplate medical forms,
the misuse of waivers to submit disability claims that should
have gone elsewhere, the employment of suspect doctors willing
to conduct cursory medical exams, and apparent collusion with
Social Security ALJs on practices that improperly favored the
Conn clients. One ALJ's practices included improperly assigning
the Conn cases to himself, secretly informing Mr. Conn of what
cases he would decide and what documentation should be
submitted, accepting boilerplate medical forms, relying on
conclusory medical opinions to reverse prior benefit denials,
skipping hearings, and churning out short, poor quality
decisions. The report also presented evidence of repeated
unexplained cash payments to the ALJ's bank account. In
addition, the report faulted lax oversight by Social Security
officials that allowed the abuses to continue for years and
exposed U.S. taxpayers to millions of dollars in attorney and
physician fees paid to the professionals who engaged in abusive
practices.
The report offered a number of bipartisan recommendations
to detect, prevent, and stop abusive practices like those
exposed in the Conn case study. The recommendations included
strengthening Social Security quality reviews of ALJ decisions,
reforming outdated medical-vocational guidelines, and
prohibiting claimants from submitting medical opinions from
doctors with revoked or suspended licenses. The report also
recommended that Social Security provide improved training on
how ALJs should handle medical opinions that directly conflict
with other evidence in a claimant's medical files; and on how
AMJs should articulate and support their decisions on claims.
In addition, the report recommended that the Social Security
Administration Inspector General conduct an annual review of
the practices of the law firms earning the most attorney fees
from processing disability cases to detect any abusive conduct.
C. Offshore Tax Evasion: The Effort to Collect Unpaid Taxes on Billions
in Hidden Offshore Accounts, February 26, 2014 (Report Prepared
by the Majority and Minority Staffs of the Permanent
Subcommittee on Investigations and released in conjunction with
the Subcommittee's hearing on February 26, 2014)
In February 2014, following a two-year Subcommittee
investigation, the Subcommittee released a 175-page bipartisan
staff report detailing how Swiss banks aided and abetted tax
evasion by their U.S. customers, using Credit Suisse,
Switzerland's second largest bank, as a case study. The report
described how Credit Suisse opened Swiss accounts for over
22,000 U.S. customers with assets that, at their peak, totaled
roughly $10 billion to $12 billion, the vast majority of which
were hidden from U.S. authorities. The report also described
how U.S. law enforcement officials were slow to collect the
unpaid taxes and hold accountable both the tax evaders and the
bank.
The report provided context for the Credit Suisse case
study by describing how, in 2008 and 2009, the Subcommittee
held a series of hearings into how Swiss banks, including UBS,
Switzerland's largest, had colluded with U.S. tax evaders,
aided by Switzerland's bank secrecy laws. It described how, in
a 2008 Subcommittee hearing, UBS had acknowledged its
wrongdoing and, in the year after the hearing, paid a $780
million fine, entered into a deferred prosecution agreement
with the U.S. Department of Justice (DOJ), and identified
thousands of previously undisclosed U.S. accounts to the IRS,
including providing U.S. client names. The report explained
that Credit Suisse had engaged in similar conduct from at least
2001 to 2008, had been slow to close the hidden Swiss accounts
held by U.S. accountholders, and had disclosed almost none of
the names of those U.S. accountholders to U.S. tax authorities.
The report described the misconduct engaged in by Credit
Suisse, which included sending Swiss bankers into the United
States to recruit U.S. customers, opening Swiss accounts,
including accounts opened in the name of offshore shell
corporations, that were not disclosed to U.S. authorities, and
servicing Swiss accounts here in the United States without
leaving a paper trail. The report also described how, after the
UBS scandal broke, Credit Suisse began a series of Exit
Projects that took five years to close Swiss accounts held by
18,900 U.S. clients. In addition, the report detailed how
Credit Suisse had conducted an internal investigation into its
activities, but produced no report and identified no leadership
failures that allowed the bank to become involved with U.S. tax
evasion. The report noted that, despite a 2011 indictment of
seven of its bankers and a DOJ letter stating that the bank
itself was an investigation target, Credit Suisse had yet to be
held legally accountable by DOJ, and none of its bankers had
yet stood trial.
The report also examined DOJ conduct. It found that,
despite 2008 and 2009 DOJ testimony pledging to use U.S. legal
tools such as grand jury subpoenas and John Doe summonses to
obtain the names of U.S. tax evaders with hidden offshore
accounts, DOJ had failed to use those tools, choosing instead
to file Swiss treaty requests with little success. The report
noted that, over the prior five years, DOJ had not sought to
enforce a single grand jury subpoena against a Swiss bank, had
not assisted in the filing of a single John Doe summons to
obtain client names or account information in Switzerland, and
had not requested the extradition of a single indicted Swiss
banker. It also noted that DOJ had prosecuted only one Swiss
bank, Wegelin & Co., despite more than a dozen under
investigation for facilitating U.S. tax evasion. The report
found that, in five years, DOJ had obtained U.S. client names
for only 238 undeclared Swiss accounts out of the tens of
thousands opened offshore. Finally, the report examined the
conduct of the Swiss government in response to allegations that
Swiss banks had facilitated U.S. tax evasion. The report
described Swiss efforts to preserve bank secrecy, its
unwillingness to provide U.S. client names, and its stance
against extraditing indicted bankers to stand trial in the
United States.
The report made a number of bipartisan recommendations to
revitalize U.S. efforts to stop tax haven banks from
facilitating U.S. tax evasion. They included urging DOJ to step
up its prosecution of tax haven banks and offshore U.S.
accountholders, using U.S. legal tools rather than treaty
requests to obtain U.S. client names; and to strengthen
transparency requirements for tax haven banks with deferred
prosecution agreements. The report also recommended that
Congress amend U.S. tax laws to streamline the use of John Doe
summons procedures to uncover offshore accounts; that the U.S.
Senate ratify a 2009 protocol strengthening disclosures under
the U.S.-Swiss tax treaty; and that the U.S. Treasury and IRS
close legal loopholes enabling offshore accounts held by U.S.
persons to remain hidden.
D. Caterpillar's Offshore Tax Strategy, April 1, 2014 (Report Prepared
by the Majority Staff of the Permanent Subcommittee on
Investigations and released in conjunction with the
Subcommittee's hearing on April 1, 2014)
In April 2014, following a year-long investigation, the
Subcommittee released a 95-page majority staff report detailing
how Caterpillar Inc., an American manufacturer of heavy
equipment, used a wholly owned Swiss affiliate to shift $8
billion in profits from the United States to Switzerland to
take advantage of a 4-6 percent corporate tax rate it had
negotiated with the Swiss government and defer or avoid paying
$2.4 billion in U.S. taxes to date. This report was the latest
in a series of Subcommittee investigations into tax avoidance
by U.S. multinational corporations, including Apple, Microsoft,
and Hewlett-Packard.
The report described how Caterpillar paid
PricewaterhouseCoopers, acting as both its tax consultant and
auditor, over $55 million to develop and implement its Swiss
tax strategy. The report explained that, under that tax
strategy, in exchange for a small royalty, Caterpillar gave a
license to its wholly controlled Swiss affiliate called CSARL
to make all non-U.S. sales of Caterpillar's third party
manufactured parts to Caterpillar's non-U.S. dealers. The
report noted that Caterpillar redirected those profits from the
United States to Switzerland essentially by replacing its name
with CSARL on the parts invoices, and without moving any
personnel or parts activities to Switzerland. The report
presented detailed evidence showing that Caterpillar's global
parts business continued to be run from the United States, and
that virtually none of the manufacturing, warehousing,
distribution, or parts management activities took place in
Switzerland. Because CSARL lacked the personnel,
infrastructure, and expertise to run the global parts business,
CSARL paid Caterpillar to keep doing the work, reimbursing it
for its costs plus a small service fee. The report showed that,
prior to implementing the Swiss tax strategy, Caterpillar had
booked 85 percent or more of its non-U.S. parts profits in the
United States, where 70 percent of those parts were made and
warehoused and where its global parts operation was managed,
while afterward it booked 85 percent or more of the parts
profits in Switzerland.
The report offered a number of recommendations to detect,
prevent, and stop corporate tax avoidance using suspect
offshore tax strategies like that exposed in the Caterpillar
case study. The recommendations included urging the Internal
Revenue Service (IRS) to analyze the economic substance of all
intercompany transactions in which licenses are issued to
offshore affiliates to sell U.S. produced products, require
U.S. parent corporations to identify and value the functions
performed by those offshore affiliates, and require U.S.
parents to justify the profit allocation between themselves and
their offshore affiliates. The report also recommended that the
United States participate in ongoing international efforts to
develop better principles for taxing multinational
corporations, including by requiring those multinationals to
disclose their business operations and tax payments on a
country-by-country basis. In addition, the report recommended
that public accounting firms be prohibited from simultaneously
providing auditing and tax consulting services to the same
corporation, to prevent the conflicts of interest that arise
when an accounting firm's auditors are asked to audit the tax
strategies designed and sold by the firm's tax consultants.
E. Online Advertising and Hidden Hazards to Consumer Security and Data
Privacy, May 15, 2014 (Report Prepared by the Majority and
Minority Staffs of the Permanent Subcommittee on Investigations
and released in conjunction with the Subcommittee's hearing on
May 15, 2014)
In May 2014, after nearly a year-long investigation under
the leadership of Senator McCain, the Subcommittee released a
40-page bipartisan staff report detailing how online
advertising, which has surpassed broadcast television as the
largest advertising medium in the United States with $42.8
billion in 2013 revenues, exposed online consumers to hidden
hazards, including data breaches, malware attacks, and other
cybercrimes.
The report described the complex system used for online
advertising, which involves the participation of many parties
in delivering a single ad. The report showed how the display of
a single online advertisement can trigger online consumer
interactions with a chain of other companies, many of which are
unknown to the consumer and each of which could compromise the
consumer's privacy or become a source of vulnerability for
cybercriminals. The report described one instance, for example,
in which a consumer visit to a popular tabloid news website
triggered the consumer's interaction with over 350 other web
servers, even without the consumer's clicking on the
advertisement display. The report explained that, on radio or
television, the content of an advertisement is generally
transmitted by the same party that hosts the rest of the
content on the station while, in contrast, host websites
commonly sell ad space on their sites through intermediary
companies and typically have no control or even notice of the
advertisements that will be displayed. The report noted that
host websites often do not select and cannot predict which
intermediary advertising networks will deliver advertisements
to consumers visiting their sites, and typically have limited
control over the content of the advertisements whose placements
they facilitate. The report also described how cyber criminals
use malicious advertising to target consumers, including by
using online ads to place malware on consumer devices.
The report offered a number of bipartisan recommendations
to detect, prevent, and stop abusive practices in online
advertising. The recommendations included urging the online
advertising industry to establish better practices and clearer
rules to prevent abuses, strengthening cyber threat-related and
other security information exchanges within the online
advertising industry to detect and prevent abuses, and
clarifying specific prohibited practices. The report also
recommended that self-regulatory bodies develop comprehensive
security guidelines for preventing online advertising malware
attacks; that additional ``circuit breakers'' be developed to
introduce check-points to catch malicious advertisements at an
earlier stage before transmission to consumers; and that online
companies thoroughly vet new advertisers and perform rigorous
and ongoing checks to ensure legitimate advertisements do not
morph into malware. In addition, the report recommended that
the Federal Trade Commission consider issuing comprehensive
regulations to prohibit deceptive and unfair online advertising
practices that facilitate or fail to take reasonable steps to
prevent malware, invasive cookies, and inappropriate data
collection delivered to Internet consumers through online
advertisements.
F. The Air Force's Expeditionary Combat Support System (ECSS): A
Cautionary Tale on the Need for Business Process Reengineering
and Complying with Acquisition Best Practices, July 7, 2014)
(Report Prepared by the Majority and Minority Staffs of the
Permanent Subcommittee on Investigations)
In July 2014, under Senator McCain's leadership, the
Subcommittee released a 40-page bipartisan staff report on the
Air Force's Expeditionary Combat Support System (ECSS) program,
a $1 billion failed effort to form a unified logistics and
supply-chain management system to track all Air Force physical
assets from airplanes to fuel to spare parts. Following the
program's cancellation in 2012, the report analyzed the factors
that led to the failure, including a lack of leadership and
cultural resistance to adopting ``best practices'' in Air Force
procurements.
The report described the development of the ECSS system. It
found, among other problems, that the Air Force admitted it did
not understand what it needed to do to implement the ECSS. The
report noted that, in the eight years ECSS was active, the Air
Force transitioned six program managers and five program
executive officers, resulting in constant leadership turnover
and leaving no one accountable for ECSS's failure. The report
also determined that the Department of Defense (DOD) and Air
Force had a strong cultural resistance to change and adoption
of ``best practices'' to improve their procurement systems. The
report found that their resistance hindered effective
implementation of business process reengineering (BPR) efforts
intended to ensure that enterprise resource planning (ERP)
systems were effectively integrated into the relevant business
units. The report concluded that the Air Force squandered over
$1 billion in taxpayer funds over eight years without producing
a workable ECSS capability.
The report offered a number of bipartisan recommendations
to prevent future acquisition failures. The recommendations
included improving ERP systems outcomes by initiating BPR
assessments earlier in the acquisition process, improving
oversight to ensure DOD has a sufficient understanding of the
existing business processes to be changed, and ensuring sound
budget decision making by integrating the Investment Review
Boards (IRB) at the beginning of the budget process. The report
also recommended reducing duplicative reporting requirements by
utilizing a single governance structure for the acquisition of
ERP systems, improving accountability by aligning the tenure of
program executives with key acquisition decision points, and
strengthening resource verifications of self-reporting BPR
certification from program offices.
To help alleviate the problems disclosed by the ECSS
failure, at Senator McCain's request, the Senate Armed Services
Committee included in the Fiscal Year 2015 defense
authorization bill provisions that required DOD to gain an
understanding of the existing legacy systems before procuring
any large new business system and to complete a report on
enhancing the role of DOD civilian and military program
managers in developing and carrying out defense acquisition
programs.
G. Abuse of Structured Financial Products: Misusing Basket Options to
Avoid Taxes and Leverage Limits, July 22, 2014 (Report Prepared
by the Majority and Minority Staffs of the Permanent
Subcommittee on Investigations and released in conjunction with
the Subcommittee's hearing on July 22, 2014)
In July 2014, the Subcommittee released at 95-page
bipartisan staff report describing how two global banks,
Deutsche Bank AG and Barclays Bank PLC, and more than a dozen
hedge funds misused a complex financial structure known as a
basket option to claim billions of dollars in unjustified tax
savings and avoid leverage limits that protect the financial
system from risky debt. This report was the latest in a line of
Subcommittee reports documenting bank participation in
transactions designed to help clients avoid or evade U.S.
taxes.
The report outlined how, over the course of more than a
decade, from 1998 to 2013, the banks sold 199 basket options to
13 hedge funds which used them to conduct more than $100
billion in trades. The report provided detailed information on
options involving two of the largest basket option users,
Renaissance Technologies Corporation LLC (``RenTec'') and
George Weiss Associates. The report explained how the banks and
hedge funds used the option structure to open proprietary
trading accounts in the names of the banks and create the
fiction that the banks owned the account assets, when in fact
the hedge funds exercised total control over the assets,
executed all the trades, and reaped all the trading profits.
The report also explained that when the hedge funds exercised
the options shortly after the one-year mark, they claimed that
the trading profits were eligible for the lower income tax rate
that applies to long-term capital gains on assets held for at
least a year, even for short-term trades. The report noted, for
example, that RenTec claimed it could treat the trading profits
as long term gains, even though it executed an average of 26 to
39 million trades per year and held many assets for mere
seconds. The report also noted that, in 2010, the Internal
Revenue Service (IRS) had issued an opinion prohibiting the use
of basket options to claim long-term capital gains. The report
estimated that the hedge funds used the basket option
structures to avoid taxes in excess of $6 billion.
The report also explained that, in addition to avoiding
taxes, the basket option structure was used by the banks and
hedge funds to evade Federal leverage limits on trading
securities with borrowed money. Leverage limits were enacted
into law after the stock market crash of 1929, when stock
losses led to the collapse of not only the stock speculators,
but also the banks that lent them money and were unable to
collect on the loans. Had the hedge funds made their trades in
a normal brokerage account, they would have been subject to a
2-to-1 leverage limit--that is, for every $2 in total holdings
in the account, $1 could be borrowed from the broker. But
because the option accounts were in the name of the bank, the
option structure created the fiction that the bank was
transferring its own money into its own proprietary trading
accounts instead of lending to its hedge-fund clients, in some
cases leading to a leverage ratio of 20-to-1. The banks
pretended that the money placed into the accounts were not
loans to its customers, even though the hedge funds paid
financing fees for use of the money. While the two banks have
stopped selling basket options as a way for clients to claim
long-term capital gains, they continue to use the structures to
avoid Federal leverage limits.
The report offered a number of bipartisan recommendations
to detect, prevent, and stop basket option abuses. The
recommendations included urging the IRS to audit each of the
hedge funds that used basket option products to collect any
unpaid taxes; and urging Federal financial regulators, as well
as Treasury and the IRS, to intensify warnings against,
scrutiny of, and legal actions to penalize bank participation
in tax-motivated transactions. The report also recommended that
Treasury and the IRS revamp the Tax Equity and Fiscal
Responsibility Act (TEFRA) regulations to reduce impediments to
audits of large partnerships, and that Congress amend TEFRA to
facilitate those audits. In addition, the report recommended
that the Financial Stability Oversight Council, working with
other agencies, establish new reporting and data collection
mechanisms to enable financial regulators to analyze the use of
derivative and structured financial products to circumvent
Federal leverage limits on purchasing securities with borrowed
funds, gauge the systemic risks, and develop preventative
measures.
H. IRS and TIGTA Management Failures Related to 501(c)(4) Applicants
Engaged in Campaign Activity, September 5, 2014 (Report
Prepared by the Majority Staff of the Permanent Subcommittee on
Investigations with Minority Staff Dissenting Views)
In September 2014, after more than a year-long
investigation, the Subcommittee released a 225-page report
summarizing the Subcommittee's bipartisan investigation into
problems with how the Internal Revenue Service (IRS) processed
applications for tax exempt status under Section 501(c)(4) of
the tax code. The report was prepared by the majority staff and
included dissenting views by the minority staff, which did not
join the majority staff report. The report was accompanied by
the release of over 1,700 pages of documents from the IRS and
Treasury Inspector General for Tax Administration (TIGTA),
including emails, correspondence, memoranda, charts,
handwritten notes, reports, and analyses.
The majority staff report reached many of the same
conclusions as an audit report that was released earlier by
TIGTA about the 501(c)(4) application process. The majority
staff report found that the IRS used inappropriate screening
criteria when it flagged for increased scrutiny applications
based upon the applicants' names or political views rather than
direct evidence of their involvement with campaign activities.
The report also presented evidence of significant program
mismanagement, including years-long delays in processing
501(c)(4) applications; inappropriate, intrusive, and
burdensome questioning of groups; and poor communication and
coordination between IRS officials in Washington and
Cincinnati. At the same time, like TIGTA, the report found no
evidence of IRS political bias in selecting 501(c)(4)
applications for heightened review, as distinguished from using
poor judgment in crafting the selection criteria. Based on
investigative work that went beyond what TIGTA examined, the
majority staff report also determined that the same problems
affected IRS review of 501(c)(4) applications filed by liberal
groups, detailing several examples.
The majority staff report also criticized the TIGTA audit.
It found that, by focusing exclusively on how the IRS handled
501(c)(4) applications filed by conservative groups and
excluding any comparative data on applications filed by liberal
groups, the TIGTA audit produced distorted audit results that
continue to be misinterpreted. The report explained that the
TIGTA audit engagement letter stated that the audit's ``overall
objective'' was to examine the ``consistency'' of IRS actions
in identifying and reviewing 501(c)(4) applications, including
whether ``conservative groups'' experienced ``inconsistent
treatment.'' The report found that, instead, the TIGTA audit
focused solely on IRS treatment of conservative groups, and
omitted any mention of other groups. For example, while the
TIGTA audit report criticized the IRS for using ``Tea Party,''
``9/12,'' and ``Patriot'' to identify applications filed by
conservative groups, it left out that the IRS also used
``Progressive,'' ``ACORN,'' ``Emerge,'' and ``Occupy'' to
identify applications filed by liberal groups. The majority
staff report noted that, while the TIGTA audit report
criticized the IRS for subjecting conservative groups to
delays, burdensome questions, and mismanagement, it failed to
disclose that the IRS subjected liberal groups to the same
treatment. The majority staff report explained that the result
was that when the TIGTA audit report presented data showing
conservative groups were treated inappropriately, it was
interpreted to mean conservative groups were handled
differently and less favorably than liberal groups, when in
fact, both groups experienced the same mistreatment. The
majority staff report also criticized TIGTA for failing to
include in its audit report its conclusion that the TIGTA audit
had `found no evidence of political bias' by the IRS in
processing 501(c)(4) applications, an omission which led to the
TIGTA audit report being misconstrued to inaccurately and
unfairly damage public confidence in the impartiality of the
IRS.
The majority staff report offered a number of
recommendations to reform IRS processing of 501(c)(4)
applications filed by groups planning to engage in both social
welfare and campaign activities. The recommendations included
urging the IRS to stop using a ``facts and circumstances'' test
to evaluate the applications and groups, since it produced a
time-consuming, case-by-case, non-transparent, subjective, and
unpredictable method of evaluation that not only confused and
delayed IRS decisionmaking, but also invited public suspicion
that the IRS may have been influenced by politics. Instead, the
majority staff report recommended developing objective
standards and bright line rules to produce more consistent,
timely, transparent, and predictable treatment of 501(c)(4)
applications filed by groups that engage in campaign
activities. The report also recommended that the IRS revise its
rules to comply with the statutory requirement that 501(c)(4)
groups engage `exclusively' in social welfare activities,
including by applying an `insubstantial' test to limit other
activities, similar to the one already applied to 501(c)(3)
charities, and by applying a percentage test to ensure campaign
activities comprise no more than an insubstantial portion of a
tax-exempt social welfare organization's activities. In
addition, the report recommended that the IRS require 501(c)(4)
groups to provide the IRS with a copy of any filing submitted
to the Federal Election Commission, so that the IRS can use
those filings to identify 501(c)(4) groups warranting
heightened review for campaign activity.
The dissenting views filed by the minority staff disagreed
that the IRS mistreated both conservative and liberal groups.
The dissenting views found that, while some liberal groups were
examined by the IRS from May 2010 to May 2012, there were far
fewer such groups, they were systematically separate from the
review of conservative groups, their questioning was far less
intrusive, and, in some cases, the liberal groups were
affiliates of specific organizations that had behaved illegally
in the past and could reasonably have expected additional
scrutiny. The dissenting views found that the inclusion of a
few liberal groups by the IRS did not bear comparison to the
targeting of conservative groups, that conservative groups
received the bulk of unfair and burdensome treatment, and that
the IRS screening resulted in a clearly disparate impact on
conservative group applications. The dissenting views also
noted that, while the majority and minority staffs were unable
to come to agreement in their analysis, the Subcommittee
conducted its investigation through joint interviews and
document requests, and continued its tradition of in-depth fact
finding and frequent consultations that are the hallmark of the
Subcommittee's oversight work and led to a deepened
understanding of key issues.
I. Defense Acquisition Reform: Where Do We Go from Here? A Compendium
of Views by Leading Experts, October 2, 2014 (Report Prepared
by the Majority and Minority Staffs of the Permanent
Subcommittee on Investigations)
In October 2014, under the leadership of Senator McCain,
the Subcommittee released a bipartisan staff report containing
a collection of 31 essays from a variety of defense acquisition
experts offering views on defense acquisition reform. While the
Subcommittee made no recommendations of its own, the report's
experts provided a comprehensive review of current shortcomings
in the acquisition process and provided a wide range of options
to improve the defense acquisition system. This compendium
provides a starting point for defense acquisition reforms in
the next Congress.
J. Wall Street Bank Involvement With Physical Commodities, November 20
and 21, 2014 (Report Prepared by the Majority and Minority
Staffs of the Permanent Subcommittee on Investigations and
released in conjunction with the Subcommittee's hearing on
November 20 and 21, 2014)
In November 2014, after a two-year investigation, the
Subcommittee released a 400-page bipartisan staff report
detailing the nature and extent of the involvement of large
Wall Street banks with physical commodities. The report
explained how physical commodity activities were eroding the
longstanding separation of banking and commerce; increasing
risks to the banks, their holding companies, and the financial
system; and raising questions about price manipulation and
unfair trading in commodity markets.
The report presented three case studies involving Goldman,
Morgan Stanley, and JPMorgan Chase. In each case study, the
report provided detailed evidence on several examples of
physical commodity activities, including warehousing aluminum
and other metals, trading uranium, mining coal, operating oil
and gas storage and pipeline facilities, supplying jet fuel to
airlines, constructing a compressed natural gas facility, and
controlling power plants. The report provided detailed
information about Goldman's ownership of Metro Trade Services
International, a U.S. warehouse company which was certified to
store aluminum warranted by the London Metal Exchange for use
in settling trades and which operated a number of Detroit-area
warehouses. The report noted that, after Goldman bought Metro
in 2010, Metro warehouses accumulated 85 percent of the LME
aluminum storage market in the United States, began to engage
in so-called ``merry-go-round'' deals that shuttled metal from
building to building without actually shipping aluminum out of
Metro's system; and increased the wait to withdraw LME-
warranted metal from storage from about 40 days to more than
600, reducing aluminum availability and tripling the U.S.
premium for storage and delivery costs. The report noted that,
during the same period, Goldman engaged in massive aluminum
trades in both the physical and financial markets, further
increasing the length of the warehouse queue and raising
concerns about whether Goldman was manipulating aluminum prices
or making trades using non-public warehouse information.
The report also detailed how JPMorgan amassed physical
commodity holdings equal to nearly 12 percent of its Tier 1
capital, while telling regulators its holdings were far
smaller; owned or controlled 30 electrical power plants across
the country; and incurred a $410 million penalty for
manipulative bidding strategies that produced excessive
electricity payments that hurt consumers in California and the
Midwest. The report also described JPMorgan's involvement with
stockpiling and trading copper and designing an exchange traded
fund based on copper prices. In addition, the report described
how, at one time, Morgan Stanley controlled 55 million barrels
of oil storage capacity as well as 6,000 miles of pipeline,
while also working to build its own compressed natural gas
facility and supplying major airlines with jet fuel. The report
also described how the Federal Reserve conducted an intensive
review of the physical commodity activities being engaged in by
financial holding companies, determined they carried novel and
troubling risks to both the holding companies and the financial
system, and was considering new rules to rein in physical
commodity risks.
The report offered a long list of bipartisan
recommendations to reduce physical commodity activities at
banks and their holding companies. The recommendations included
urging the Federal Reserve to reaffirm the separation of
banking from commerce, and reconsider all of the rules and
practices related to physical commodity activities in light of
that principle; to issue a clear and comprehensive limit on the
size of a financial holding company's physical commodity
activities; and strengthen public disclosures of those
activities to support effective oversight. The report also
recommended narrowing the scope of the legal authorities
permitting physical commodity activities, and establishing
capital and insurance minimums to protect against potential
losses from catastrophic events. In addition, the report
recommended barring large traders, including financial holding
companies, from using material non-public information gained
from physical commodities activities to benefit their trading
activities in the financial markets. The report also urged the
Federal Reserve to use its upcoming rulemaking to address these
concerns and reduce the risks associated with financial company
involvement in physical commodity activities.
V. Requested and Sponsored Reports
In connection with its investigations, the Subcommittee
makes extensive use of the resources and expertise of the
Government Accountability Office (GAO), the Offices of
Inspectors General (OIGs) at various Federal agencies, and
other entities. During the 113th Congress, the Subcommittee
requested a number of reports and studies on issues of
importance. Several of these reports have already been
described in connection with Subcommittee hearings. Several
additional reports that were of particular interest, and that
were not covered by Subcommittee hearings, are the following.
A. Corporate Income Tax: Effective Tax Rates Can Differ Significantly
from the Statutory Rate (GAO-13-520), May 30, 2013
Over the past ten years, the Subcommittee has conducted a
series of investigations into corporate nonpayment of U.S.
income taxes. In 2008, in part at the Subcommittee's request,
GAO issued a report on corporate tax payments (GAO-08-957)
which found that nearly 55 percent of all large U.S.-controlled
corporations reported no Federal tax liability in at least one
year between 1998 and 2005. In response to a bipartisan request
from the Subcommittee to update that report five years later,
GAO assessed the extent to which corporations pay U.S.
corporate income tax, and compared the average effective tax
rate for corporations to the U.S. statutory corporate tax rate
of 35 percent.
The GAO report determined that large, profitable U.S.
corporations paid an average effective Federal tax rate of 12.6
percent in 2010, or only about one-third of the U.S. statutory
rate. The report's findings added to a growing body of evidence
that large, profitable corporations bear a dwindling share of
the U.S. tax burden, and that the Treasury collects far less
revenue from large, profitable corporations than might be
expected under the 35 percent statutory tax rate. GAO's year-
long study examined, in particular, how effective tax rates are
typically calculated, and then developed a new, more accurate
methodology using actual corporate tax return data. GAO
compiled the tax return data from large corporations for tax
years 2008 through 2010, using M-3 tax returns filed with the
Internal Revenue Service by corporations with at least $10
million in assets. Using actual tax return data enabled GAO to
develop more accurate figures for the taxes paid by large U.S.
corporations than studies using tax information provided in
corporate financial statements. The GAO report noted that the
amounts reported in the corporate tax returns were, on the
whole, lower than the tax liabilities reported in the corporate
financial statements filed with the Securities and Exchange
Commission. The GAO report explained that average corporate
effective tax rates are generally computed as the ratio of
taxes paid or tax liabilities accrued in a given tax year over
the net income declared by the corporation during that same
year.
GAO found that, on average, large, profitable U.S.
corporations paid U.S. Federal income tax amounting to just
12.6 percent of their worldwide income. In addition, GAO found
that the relatively low effective tax rate paid by U.S.
corporations did not substantially increase when other taxes
paid by those corporations were taken into account. For
example, GAO found that, in 2010, adding foreign, state, and
local taxes to Federal income taxes increased the average
effective tax rate of large, profitable U.S. corporations by
about 4 percentage points to 16.9 percent of their worldwide
income. That composite tax rate was still less than half the
U.S. statutory rate.
GAO noted that some studies calculating effective tax rates
included unprofitable corporations in their analysis, but
explained that ``[t]he inclusion of unprofitable firms, which
pay little if any actual tax, can result in relatively high
estimates because the losses of unprofitable corporations
greatly reduce the denominator of the effective rate'' and ``do
not accurately represent the tax rate on the profitable
corporations that actually pay the tax.'' GAO calculated that
when unprofitable corporations were included in its data, the
average effective Federal tax rate rose from 12.6 percent to
16.6 percent, because those corporations had lost $315 billion
and thereby reduced the overall net income against which the
corporate tax payments were compared. GAO concluded that the
resulting tax rate overstated the effective tax rate actually
paid by large, profitable U.S. corporations.
GAO's finding that corporations pay far less than the U.S.
statutory rate was consistent with other Subcommittee
investigative work detailing the many tax loopholes and tax
shelters used by some U.S. profitable corporations to avoid or
evade paying U.S. taxes. It was also consistent with other
studies demonstrating that large, profitable corporations are
often able to minimize, if not entirely avoid, paying U.S.
income taxes. GAO did not make any recommendations in its
report.
B. Disability Insurance: Work Activity Indicates Certain Social
Security Disability Insurance Payments Were Potentially
Improper (GAO-13-635), August 15, 2013
For a number of years, the Subcommittee has examined issues
related to Social Security disability programs and benefits. In
August 2013, in response to a bipartisan request from the
Subcommittee, GAO examined the extent to which the Federal
Social Security Disability Insurance (DI) program may be
overpaying benefits. This program is the nation's largest cash
assistance program for workers with disabilities. Although
program rules allow beneficiaries to engage in a limited amount
of certain types of work, other work activities indicate that
the beneficiaries are not disabled and therefore not entitled
to DI benefits. Consequently, the Social Security
Administration (SSA) may overpay beneficiaries if the agency
does not detect disqualifying work activity and suspend
benefits appropriately.
GAO estimated that, as of January 2013, SSA made $1.29
billion in potential cash benefit overpayments to about 36,000
individuals, representing an estimated 0.4 percent of all
primary DI beneficiaries as of December 2010. GAO developed
this estimate by analyzing SSA data on individuals who were DI
beneficiaries as of December 2010, and earnings data from the
National Directory of New Hires (NDNH). GAO noted that the
exact number of individuals who received improper disability
payments and the exact amount of improper payments cannot be
determined without detailed case investigations. GAO also noted
that SSA, using a different methodology, had estimated its DI
overpayments in Fiscal Year 2011 at $1.62 billion, or 1.27
percent of all DI benefits in that Fiscal Year.
GAO explained that its estimate included consideration of
work activity performed by two populations of individuals. The
first population performed work activity during the DI
program's mandatory 5-month waiting period--a statutory program
requirement to help ensure that SSA does not pay benefits to
individuals who do not have long-term disabilities. Prior to
receiving benefits, individuals must complete a 5-month waiting
period, in which the individual cannot exceed a certain level
of earnings, known as substantial gainful activity, during any
month in order to be eligible for DI benefits. Earnings that
exceed program limits during the waiting period indicate that
individuals might not have long-term disabilities. The second
population performed work activity beyond the program's trial
work period which allows certain types of work for up to 9
months, to see if the beneficiary can do that work and no
longer requires DI benefits. Beneficiaries whose earnings
consistently exceed program limits after completing the trial
work period are generally no longer entitled to DI benefits.
GAO determined that SSA uses its enforcement operation to
generate alerts for potentially disqualifying earnings, but
those alerts are not issued for earnings that occur in all
months of the waiting period and potentially disqualifying work
activity may remain undetected. SSA officials indicated to GAO
that modifying its enforcement operation could be costly, and
that the agency had not performed a cost assessment for making
that modification.
GAO recommended that SSA assess the cost and feasibility of
establishing a mechanism to detect potentially disqualifying
earnings during all months of the waiting period. SSA
concurred, despite raising concerns about GAO's estimates.
C. IRS's Offshore Voluntary Disclosure Program: 2009 Participation by
State and Location of Foreign Bank Accounts (GAO-14-265R),
January 6, 2014
For a number of years, the Subcommittee has examined issues
related to offshore tax abuses, including actions taken by
banks located in tax havens to open offshore accounts for U.S.
clients without disclosing those accounts to the Internal
Revenue Service (IRS). At a 2008 Subcommittee hearing, UBS,
Switzerland's largest bank, admitted that it had facilitated
U.S. tax evasion by opening undisclosed Swiss accounts for U.S.
clients. In 2009, UBS signed a deferred prosecution agreement
with the United States on charges of conspiring to defraud the
United States by impeding U.S. tax collection, paid a $780
million fine, and agreed to disclose the names of some U.S.
clients with hidden Swiss accounts. Also in 2009, the IRS
established an Offshore Voluntary Disclosure Program to
encourage U.S. taxpayers to disclose the existence of their
offshore accounts and, using a system of reduced penalties, pay
the back taxes, interest, and penalties they owed for evading
U.S. taxes. As a condition to participating in the program, the
IRS required taxpayers to provide information about the
offshore banks, investment firms, law firms, and others that
helped them hide their assets offshore.
In March 2013, at the request of the Finance Committee and
others, GAO issued a report (GAO-13-318) analyzing the Offshore
Voluntary Disclosure Program. The report found that, as of
December 2012, the IRS had received more than 39,000
disclosures from taxpayers and revenues exceeding $5.5 billion.
GAO also analyzed about 10,500 taxpayer filings from the
program and determined that, during the 2009 initiative, the
median offshore account amount was $570,000, while accounts
with penalties greater than $1 million represented only about 6
percent of the cases, but accounted for almost half the
penalties. In addition, GAO determined that many other
taxpayers had made so-called ``quiet disclosures'' of offshore
assets or income, by either amending a past return or
disclosing offshore income for the first time on a current
return, without paying any back taxes, interest, or penalties
on previously hidden income. GAO noted, for example, that from
tax year 2007 through tax year 2010, IRS estimated that the
number of taxpayers reporting foreign accounts had nearly
doubled to 516,000. GAO described these quiet disclosures as
resulting in lost revenues while also undermining the
effectiveness of the Offshore Voluntary Disclosure Program, and
recommended review by the IRS.
In January 2014, in response to a request from the
Subcommittee, GAO issued a report providing supplemental
information about the taxpayers who participated in the 2009
Offshore Voluntary Disclosure Program. GAO found that the
participants had together filed over 12,800 Foreign Bank and
Financial Account Reports (FBARs), as part of their disclosure
obligations. GAO reported that its review of a sample of those
FBARs found that some participants disclosed dozens of offshore
accounts with multiple banks in multiple countries, while other
participants disclosed only one account. Of the 12,800 FBARs
reviewed, GAO determined that about 5,400 or 42 percent
reported at least one account in Switzerland, while the next
highest country total was the United Kingdom with about 1,000
accounts. GAO also determined that U.S. taxpayers across the
country filed those FBARs, with the most filed by taxpayers in
the five states with generally the largest populations,
California, New York, Florida, New Jersey, and Texas. No
comparable analysis has yet been performed for FBARs filed in
later stages of the Offshore Voluntary Disclosure Program, nor
has any analysis been made public regarding other types of
information provided by program participants. GAO did not make
any recommendations in this report.
D. Large Partnerships: Characteristics of Population and IRS Audits
(GAO-14-379R), March 19, 2014; and Large Partnerships: With
Growing Number of Partnerships, IRS Needs to Improve Audit
Efficiency (GAO-14-732), September 18, 2014
Over the years, the Subcommittee has examined a number of
tax issues involving partnerships, including hedge funds. In
March and September 2014, in response to a bipartisan request
from the Subcommittee, GAO examined the IRS audit rate for
large partnerships, defined by GAO as those with at least 100
direct and indirect partners and $100 million in assets. They
include hedge funds, private equity funds, and publicly traded
partnerships. The March report provided preliminary graphics
and data, while the September report provided a more
comprehensive examination of IRS audits of large partnerships.
In its reports, GAO determined that, from 2002 to 2011, the
number of large partnerships had tripled to over 10,000, while
the number of C corporations being created, including the
largest U.S. publicly traded corporations, fell by 22 percent.
GAO found that large partnerships had also increased in both
the average number of direct partners and average asset size.
GAO also found that some of those partnerships had revenues
totaling billions of dollars per year and estimated that they
collectively held more than $7.5 trillion in assets. In
addition, GAO found that the IRS was auditing only a tiny
fraction of the partnerships. According to GAO, in 2012, the
IRS audited less than 1 percent of large partnerships compared
to 27 percent of C corporations, making C corporations 33 times
more likely to face an audit than a partnership.
The GAO report described the complexity of some large
partnerships, which made them difficult for the IRS to audit
effectively. GAO reported that some partnerships had 100,000 or
more partners arranged in multiple tiers, and some of those
partners were not individuals or corporate entities but pass-
through entities--essentially, partnerships within
partnerships. In addition, at publicly traded partnerships, the
partners can change on a daily basis. GAO reported that one IRS
official calculated that there were more than 1,000
partnerships with more than a million partners in 2012.
The GAO report also discussed a number of statutory
obstacles to IRS audits of large partnerships. The report
explained that the key statute, the Tax Equity and Fiscal
Responsibility Act (TEFRA), was three decades old, was enacted
at a time when many partnerships had 30 to 50 partners, and was
not designed to handle partnerships with a million partners or
a partnership roster that changed on a daily basis. Among the
TEFRA problems identified by the report was a requirement that
the IRS identify a ``tax matters partner'' to represent the
partnership on tax issues, even though many partnerships did
not designate such a partner, and simply identifying one in a
complex partnership could take months. Second, the report
described notification requirements that essentially required
the IRS to notify individual partners prior to commencing an
audit of the partnership, even though such notices were time
consuming, carried large costs, and produced few, if any,
benefits. Third, the report noted that TEFRA required any tax
adjustments called for by an audit to be passed through to the
partnership's taxable partners, even though the IRS's process
for identifying, assessing, and collecting from those partners
was laborious, time consuming, costly, and subject to error. In
addition, the report explained that, under TEFRA, any tax
adjustments had to be applied to past tax years, using
complicated and expensive filing and amendment requirements,
instead of being applied to the year in which the audit was
performed and the adjustment made.
GAO offered several recommendations for Congress and the
IRS in its September report. GAO recommended that Congress
consider requiring large partnerships to identify a partner to
represent them during audits and to pay taxes on audit
adjustments at the partnership level. GAO recommended that the
IRS take multiple actions, including defining large
partnerships, tracking audit results using revised audit codes,
and implementing project planning principles for the audit
procedure projects.
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