[LESSONS LEARNED: ENSURING THE DELIVERY OF DONATED GOODS TO SURVIVORS OF CATASTROPHES
]
[From the U.S. Government Printing Office, www.gpo.gov]
LESSONS LEARNED: ENSURING THE DELIVERY
OF DONATED GOODS TO SURVIVORS OF
CATASTROPHES
=======================================================================
JOINT HEARING
before the
SUBCOMMITTEE ON EMERGENCY COMMUNICATIONS,
PREPAREDNESS, AND RESPONSE
of the
COMMITTEE ON HOMELAND SECURITY
HOUSE OF REPRESENTATIVES
and the
AD HOC SUBCOMMITTEE ON DISASTER RECOVERY
of the
COMMITTEE ON HOMELAND SECURITY
AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
ONE HUNDRED TENTH CONGRESS
SECOND SESSION
__________
JULY 31, 2008
__________
Serial No. 110-134
__________
Printed for the use of the Committee on Homeland Security
[GRAPHIC] [TIFF OMITTED] TONGRESS.#13
Available via the World Wide Web: http://www.gpoaccess.gov/congress/
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HOUSE COMMITTEE ON HOMELAND SECURITY
Bennie G. Thompson, Mississippi, Chairman
Loretta Sanchez, California Peter T. King, New York
Edward J. Markey, Massachusetts Lamar Smith, Texas
Norman D. Dicks, Washington Christopher Shays, Connecticut
Jane Harman, California Mark E. Souder, Indiana
Peter A. DeFazio, Oregon Tom Davis, Virginia
Nita M. Lowey, New York Daniel E. Lungren, California
Eleanor Holmes Norton, District of Mike Rogers, Alabama
Columbia David G. Reichert, Washington
Zoe Lofgren, California Michael T. McCaul, Texas
Sheila Jackson Lee, Texas Charles W. Dent, Pennsylvania
Donna M. Christensen, U.S. Virgin Ginny Brown-Waite, Florida
Islands Gus M. Bilirakis, Florida
Bob Etheridge, North Carolina David Davis, Tennessee
James R. Langevin, Rhode Island Paul C. Broun, Georgia
Henry Cuellar, Texas Candice S. Miller, Michigan
Christopher P. Carney, Pennsylvania
Yvette D. Clarke, New York
Al Green, Texas
Ed Perlmutter, Colorado
Bill Pascrell, Jr., New Jersey
I. Lanier Lavant, Staff Director
Rosaline Cohen, Chief Counsel
Michael Twinchek, Chief Clerk
Robert O'Connor, Minority Staff Director
------
SUBCOMMITTEE ON EMERGENCY COMMUNICATIONS,
PREPAREDNESS, AND RESPONSE
HENRY CUELLAR, Texas, Chairman
Loretta Sanchez, California Charles W. Dent, Pennsylvania
Norman D. Dicks, Washington Mark E. Souder, Indiana
Nita M. Lowey, New York David Davis, Tennessee
Eleanor Holmes Norton, District of Tom Davis, Virginia
Columbia Candice S. Miller, Michigan
Donna M. Christensen, U.S. Virgin Peter T. King, New York (Ex
Islands Officio)
Bob Etheridge, North Carolina
Bennie G. Thompson, Mississippi (Ex
Officio)
Veronique Pluvoise-Fenton, Director
Nichole Francis, Counsel
Daniel Wilkins, Clerk
Heather Hogg, Minority Senior Professional Staff Member
SENATE COMMITTEE ON HOMELAND SECURITY
AND GOVERNMENTAL AFFAIRS
Joseph I. Lieberman, Connecticut, Chairman
Carl Levin, Michigan Susan M. Collins, Maine
Daniel K. Akaka, Hawaii Ted Stevens, Alaska
Thomas R. Carper, Delaware George V. Voinovich, Ohio
Mark L. Pryor, Arkansas Norm Coleman, Minnesota
Mary L. Landrieu, Louisiana Tom Coburn, Oklahoma
Barack Obama, Illinois Pete V. Domenici, New Mexico
Claire McCaskill, Missouri John Warner, Virginia
Jon Tester, Montana John E. Sununu, New Hampshire
Michael L. Alexander, Staff Director
Brandon L. Milhorn, Minority Staff Director and Chief Counsel
Trina Driessnack Tyrer, Chief Clerk
------
AD HOC SUBCOMMITTEE ON DISASTER RECOVERY
Mary L. Landrieu, Louisiana, Chairman
Thomas R. Carper, Delaware Ted Stevens, Alaska
Mark L. Pryor, Arkansas Pete V. Domenici, New Mexico
Donny R. Williams, Jr., Staff Director
Aprille C. Raabe, Minority Staff Director
Kelsey Stroud, Chief Clerk
C O N T E N T S
----------
Page
Statements
The Honorable Henry Cuellar, a Representative in Congress From
the State of Texas, and Chairman, Subcommittee on Emergency
Communications, Preparedness, and Response..................... 1
The Honorable Charles W. Dent, a Representative in Congress From
the State of Pennsylvania, and Ranking Member, Subcommittee on
Emergency Communications, Preparedness, and Response........... 3
Witnesses
Panel I
Mr. William Eric Smith, Assistant Administrator, Logistics
Management, Federal Emergency Management Agency, Department of
Homeland Security:
Oral Statement................................................. 12
Prepared Statement............................................. 14
Mr. Carlos J. Castillo, Assistant Administrator, Disaster
Assistance, Federal Management Agency, Department of Homeland
Security:
Oral Statement................................................. 21
Prepared Statement............................................. 14
Mr. Barney L. Brasseux, Deputy Commissioner, Federal Acquisition
Service, General Services Administration:
Oral Statement................................................. 23
Prepared Statement............................................. 24
Panel II
Mr. Paul Rainwater, Executive Director, Louisiana Recovery
Authority:
Oral Statement................................................. 43
Prepared Statement............................................. 46
Mr. Oliver R. Davidson, Donations Management Committee, National
Voluntary Organizations Active in Disaster:
Oral Statement................................................. 49
Prepared Statement............................................. 50
Mr. Bill Stallworth, Executive Director, East Biloxi Coordination
and Relief Center:
Oral Statement................................................. 52
Prepared Statement............................................. 53
Ms. Valerie Keller, Chief Executive Officer, Acadiana Outreach
Center:
Oral Statement................................................. 55
Prepared Statement............................................. 58
For The Record
Governor Scott McCallum, President and Chief Executive Officer,
Aidmatrix Foundation:
Statement...................................................... 3
Mr. Paul W. Rainwater, Executive Director, Louisiana Recovery
Authority:
Letter to Mr. Jim Stark, Submitted by Senator Mary L. Landrieu. 31
Appendix
Questions From Senator Mary L. Landrieu.......................... 69
LESSONS LEARNED: ENSURING THE DELIVERY OF DONATED GOODS TO SURVIVORS OF
CATASTROPHES
----------
Thursday, July 31, 2008
U.S. House of Representatives,
Committee on Homeland Security,
Subcommittee on Emergency Communications,
Preparedness, and Response, and
U.S. Senate,
Committee on Homeland Security and Governmental
Affairs,
Ad Hoc Subcommittee on Disaster Recovery,
Washington, DC.
The subcommittee met, pursuant to call, at 1:05 p.m., in
Room 311, Cannon House Office Building, Hon. Henry Cuellar
[Chairman of the subcommittee] presiding.
Present: Representatives Cuellar, Etheridge, Thompson (ex
officio), Dent, and Senator Landrieu.
Also present: Representative Jackson Lee.
Mr. Cuellar. The House Committee on Homeland Security and
Emergency Communications, Preparedness, and Response, and the
Senate Committee on Homeland Security and Governmental Affairs
Ad Hoc Subcommittee on Disaster Recovery will come to order.
The subcommittee is meeting today to receive testimony
regarding ``Lessons Learned: Ensuring the Delivery of Donated
Goods to the Survivors of Catastrophes.'' Again, good afternoon
to all. On behalf of the Members of the Subcommittee on
Emergency Communications, let me first of all welcome my
colleagues from the Senate, the Ad Hoc Subcommittee on Disaster
Recovery.
I would like to, of course, single out Senator Landrieu for
her tireless efforts to expedite the recovery process on behalf
of her constituents, who felt the full brunt of Hurricane
Katrina. Senator, again, welcome.
Today is a rare bicameral joint subcommittee hearing, and I
want to thank our Chairman for providing this opportunity and
taking the lead on this issue because, again, it is an
opportunity for Members to receive testimony from key FEMA and
General Services Administration, GSA, officials, along with key
State officials and nonprofit organizations from Louisiana and
Mississippi regarding the management of donated household goods
intended for the survivors of Hurricane Katrina.
FEMA's shortcomings, in response to Hurricane Katrina, have
been well documented. Today's joint subcommittee hearing will
be forward-looking in the sense that we want to examine the
lessons learned to ensure that the intended survivors of this
catastrophe do, in fact, receive the goods that have been
donated for such purposes.
Specifically, I am looking forward to our witnesses'
discussion. You have, No. 1, FEMA's handling and distribution
of unsolicited donated goods in response to Hurricane Katrina;
and, No. 2, the current system FEMA had implemented to receive
and distribute donated goods.
This hearing will also be an occasion for the Members to
examine the steps that FEMA has taken to improve its logistics
operations, especially since the enactment of the Post-Katrina
Emergency Management Reform Act that got passed by Congress.
Many of us were disturbed to see the CNN investigation on
June 11 entitled ``FEMA Gives Away $85 Million of Supplies for
Katrina Victims,'' which outlined that the agency was spending
more than $1 million per year to store donated goods that were
intended for Hurricane Katrina survivors. Surely, the 16,596
households that still reside in FEMA temporary housing units
could have maybe used the pallets of cots, cleansers, first-aid
kits, coffee makers, camp stoves that were stacked to the
ceilings in two GSA warehouse facilities in Fort Worth, Texas.
I would like to note upon learning that the surplus goods
were intended for Hurricane Katrina survivors, my home State of
Texas returned the supplies and delivered them to the New
Orleans nonprofit organization on June 20, 2008.
So to move on with this hearing, I look forward to hearing
from Mr. Smith, Mr. Castillo, about the concrete steps that
FEMA has taken to improve its logistics management when
receiving and distributing unsolicited donated goods.
Mr. Brasseux, this joint subcommittee wants assurances that
the proper procedures regarding the distribution of surplus
goods were followed even though GSA maintains that FEMA did not
inform it that the materials in the warehouses were from
Hurricane Katrina.
Mr. Rainwater, Mr. Davidson, Mr. Stallworth, Ms. Keller, we
want to hear about the level of outreach that FEMA did
regarding the handling and distribution of donated goods.
Also, we want to better understand your coordination and
your cooperation efforts with other States and nonprofit
organizations that have prioritized service to the survivors of
Hurricane Katrina.
In addition, this joint subcommittee wants to know if your
State or nonprofit organization has used the Aidmatrix
Foundation software to assist you in the availability of
donated foods.
Also, we want to understand if FEMA informed your State or
your nonprofit organization about the Aidmatrix software to
which FEMA awarded a $3.5 million grant for the development of
a software program to better streamline donated goods.
I would note for the record that Aidmatrix chose not to
testify today, although they did submit a written testimony for
the record. With that, I want to thank the witnesses for
coming, and I look forward to a robust discussion about
improving logistic procedures and processes and capacities.
I want to thank the witnesses, again, for their testimony.
The Chair now recognizes the Ranking Member of the
Subcommittee on Emergency Communications, Preparedness, and
Response, the gentleman from Pennsylvania, Mr. Dent, for an
opening statement.
Mr. Dent. Thank you, Mr. Chairman, I would like to welcome
our Senate colleagues here today.
Today's hearing continues the Emergency Communications
Preparedness and Response Subcommittee's review of the
Department of Homeland Security implementation of the Post-
Katrina Emergency Management Reform Act of 2006.
The Committee on Homeland Security was instrumental in the
enactment of this important legislation, which has helped
strengthen FEMA and its ability to lead Federal efforts to
prepare for and respond to recover from a terrorist attack and
natural disaster.
As a result of that legislation and the lessons learned
from Hurricane Katrina, FEMA has greatly improved logistics
management.
For instance, prior to Katrina, FEMA did not have
sufficient asset management and distribution capability.
Through initiatives such as the total asset visibility program,
FEMA is applying best practices in the private sector and can
now track more than 200 commodities crucial to disaster
response, including meals, water and emergency generators.
In addition to reforming its logistics management
practices, FEMA is proactively offering donations management
assistance to States through a partnership with the Aidmatrix
Foundation. While States have a primary responsibility to
manage donations and offers of assistance, Hurricane Katrina
made clear that States can quickly become overwhelmed with this
task and may require Federal assistance.
Therefore, to help States better manage this task, FEMA set
up a national agreement with the Aidmatrix Foundation, based in
Texas, that provides States a web-based donations management
system free of charge.
By utilizing supply-chain technology, Aidmatrix leverages
public and private sector resources to match the needs of
disaster areas to offers of assistance. This system eliminates
the need for States to use complicated spreadsheets to track
donations, helps inform donors of the kinds of assistance
needed, and eliminates the need to establish and maintain
warehouse operations. The Aidmatrix network has been used
successfully in California in response to the wildfires and by
midwestern States like Iowa that received severe flooding this
summer.
While the President and CEO of Aidmatrix Foundation could
not be here today to testify, he has submitted written
testimony.
At this point, I would like to ask unanimous consent that
Governor McCallum's testimony be included in the record.
Mr. Cuellar. Without objection.
[The statement of Mr. McCallum follows:]
Statement of Governor Scott McCallum, President and Chief Executive
Officer, Aidmatrix Foundation
July 27, 2008
To The House Committee on Homeland Security: The Aidmatrix Network
is a national disaster relief coordination system funded by FEMA, The
UPS Foundation, Accenture, and the Aidmatrix Foundation, Inc. to better
manage unsolicited donations and volunteers. It connects State and
local governments with donors, State Voluntary Organizations Active in
Disaster (VOAD), National VOAD, and FEMA.
Aidmatrix is a nonprofit organization that leverages technology and
partnerships. We believe that by working together we can make a bigger
impact than anyone of us working alone. Our powerful technology serves
as a hub that supports donors, nonprofits, and governments working
together to get the right aid to people when and where they need it
most. The Aidmatrix Network provides transparency and accountability to
all constituents in the supply chain of giving.
Aidmatrix focuses in the areas of hunger, medical, and disaster. We
partner with over 35,000 nonprofits and world class for-profit
organizations worldwide to help move over $1.5 billion of aid annually.
In the United States specifically, our solutions are used to deliver
aid to every State in the Nation. Those most in need in each of your
districts are helped each day by food and medical products connected
more efficiently through Aidmatrix technology.
Aidmatrix focuses on applying the same principles of efficiency and
accountability to all aspects of work. For example, we are accredited
by the Better Business Bureau for meeting the Wise Giving Alliance's
Standards for Charity Accountability. In addition, every dollar into
Aidmatrix mobilizes over $1,000 in aid, perhaps one of the best returns
on investment made by Congress and the Federal Government.
The initial award (Cooperative Agreement) was given from FEMA to
Aidmatrix in October 2006, initiating the Public-Private Partnership.
Leaders from both sides of the aisle, notably Congressman Silvestre
Reyes, were critical supporters in helping the Agency determine the
best path to actually embark on a true public-private partnership
program. Though the Cooperative Agreement part of the partnership, the
costs of the program that are not donated by other entities are
reimbursed by FEMA on an actual cost basis only, after those costs are
incurred. For the year 2006, Aidmatrix received $72,557.28 in
reimbursement from FEMA for our participation in the program. The
Cooperative Agreement continues to represent a less than 10 percent of
the social investment made in Aidmatrix by all of our supporters each
year. Additional private sector investments continue to fuel the
program's expansion and bring positive exposure to the Government,
nonprofit, and private sector entities involved.
The system was deployed ahead of the initial planned release to
support disaster response in Alabama--for which the Governor's Office
commended FEMA and Aidmatrix's efforts. See attached. Other State
deployments have included emergency activations to support wildfire-
related donations activity in California, and flood recovery efforts in
the Midwest. In these cases, Aidmatrix Foundation and our volunteers
and sponsors provided significant support beyond the Cooperative
Agreement and did so on a donated basis.
The initial release was in June 2007 and subsequent releases have
happened and will continue between now and 2010. As of June 1 of this
year, the full breadth of system functionality was released. Additional
annual funding is required to maintain and operate the system, as well
as perform ongoing training, readiness, and State/territory
recruitment.
The Aidmatrix Network is designed to facilitate efficient movement
of donated offers, honoring established best practices in donations
management. States in turn share the offers with their State VOAD
membership. The system tracks offers and provides visibility to FEMA
and State Emergency Management leadership.
The program's warehouse management components have provided
Government and voluntary agency professionals oversight capability and
real-time visibility and tracking of donated materials in relief
warehouses in responses to disasters including California, Iowa, and
Indiana.
Aidmatrix solutions are web-based tools designed to reduce
paperwork and allow for easy information sharing. No software, hardware
or additional IT staff is required with this hosted solution, and
training is minimal.
As of July 2008, 22 States and one territory have singed onto the
Aidmatrix Network. The Aidmatrix Network has received positive feedback
from States, private sector and the media including:
Business Week featured a story, Public-Private Alliances to
the Rescue, http://www.businessweek.com/technology/content/
jul2008/tc2008072--734064.htm;
Indiana flood relief.--WISH TV 8 CBS Indianapolis Features
Aidmatrix Network for Flood Disaster Relief;
The U.S. Chamber featured the Aidmatrix Network's in
response to the California wild fires, http://
www.uschamber.com/bclc/resources/newsletter/2007/
0712--aidmatrixfeature.
It may be fashionable to find fault with FEMA. At the same time,
credit should also be given when FEMA adjusts and improves. All of us
will continue to work together to create the best possible disaster
response system in the United States. The Aidmatrix Disaster Relief
Network is one of the positive changes that will address problems we
have seen in the past. It is a system now proven through several
disasters to provide a huge support net to emergency responders,
decisionmakers, and to providing the right relief to those victims in
need.
Examples of comments from recent disasters include those from last
month flooding in the Midwest when [sic]:
Joyce Flinn, Operations Officer, Public Defense, Iowa
Homeland Security and Emergency Management Division, ``I think
the Aidmatrix is a wonderful resource tool. I am grateful FEMA
provided the funding support for making the system available to
states.''
Greg Smith, of California's Governor's Office of Emergency
Services, is quoted as ``These are indeed exciting times in the
field of disaster-related donations management, and the
Aidmatrix solution is the cornerstone of it.''
Joe Watts, NVOAD Donations Management Committee Director and
National Disaster Director, Adventist Community Services,
``This (warehouse) application makes it possible to control the
inventory as it comes into the warehouse and then track it as
items are taken to the distribution areas. With pass codes,
appropriate persons at the state and FEMA are able to look at
the warehouse inventory in real time. This application has
tremendous potential [to] . . . be better able to place vital
supplies where they are needed and where they are in short
supply.''
Many in Congress are to be commended for pushing for this type of
solution to logistics issues in a disaster. It is especially noted that
the vast majority of total costs are born by sources outside of
Government. Furthermore, Aidmatrix staff have gone beyond the
commitment of the FEMA grant and have donated many hours toward the
success of this national program. This makes it not only a truly
bipartisan reform, but one which belongs to the public, the private
sector, and nonprofit organizations alike. It is a model of being able
to help society.
I would like to add as well, that beyond the scope of this specific
hearing, Aidmatrix disaster relief systems are becoming a global data
standard. Due to the overwhelming success proven in U.S. disasters,
other countries are now building Aidmatrix Networks to connect the
private sector with those most seriously in need.
Attachments
Mr. Dent. Thank you, Mr. Chairman. I look forward to
hearing from several of our witnesses about how this system is
continuing to develop and how it will help ensure that these
donations are utilized for their intended purpose.
Again I would like to thank all our witnesses for joining
us today. I look forward to receiving your testimony.
At this time I yield back my time, Mr. Chairman.
Mr. Cuellar. Thank you, Mr. Dent, for your statements.
Before I recognize the Senator, I would like to first recognize
a Member of our full committee, Congresswoman Sheila Jackson
Lee, who is in attendance with us.
Without objection, we would like to recognize her and have
her join us here today. Welcome.
The Chair now recognizes the Chairwoman of the Senate Ad
hoc Subcommittee on Disaster Recovery, the gentlelady from the
State of Louisiana, for an opening statement.
Senator Landrieu. Thank you, Mr. Chairman. I really am
pleased to join my colleagues here on the House side, Chairman
Thompson, particularly from the full committee, Ranking Member
King, who is not here, but I want to recognize his efforts.
You, Mr. Chairman, have done an outstanding job, and your
Ranking Member. Thank you for keeping the focus on this
recovery.
To my neighbor and wonderful colleague, the Congresswoman
from Houston, Texas, she has continued to be just a completely
wonderful ally in this effort. Thank you very much.
This is a very important hearing because it is important
for us to examine the delivery of goods that were donated and
purchased for survivors of Hurricanes Katrina and Rita.
Unfortunately, Mr. Chairman, many of those goods that were
donated and purchased on their behalf never arrived. FEMA has
received a black eye in the press, to say the least, over these
recent reports of these returned surplus Katrina supplies to
Federal and State agencies.
This, however, though, is not the first time that Congress
has investigated the administration's handling of hurricane
supplies and donated goods that failed to reach their intended
purpose.
Last April, the Washington Post reported that almost $1
billion in foreign assistance that was offered in the wake of
Katrina and Rita, out of $1 billion, only $126 million was
accepted by our Government at FEMA's request. We will remember
that more than 150 nations offered nearly $1 billion in cash
and supplies and, of course, you know the number was $126
million that was accepted.
The State Department and FEMA were ill-equipped to
coordinate these donations and distributions. Some were
accepted, but many of them, including telecommunications
equipment, medical supplies and blankets were declined.
As a member of the State Foreign Ops Appropriations
Committee, I questioned Secretary Rice exactly on this issue a
little over a year ago, and here we find ourselves over a year
later again in a committee looking into how offers of
assistance or items purchased failed to get to the intended
purpose.
I do acknowledge that FEMA has made, as the Ranking Member
pointed out, some notable progress improving its logistical
capabilities. I will not deny that some progress has been made.
The agency has established new professionalized logistics in
management, a directorate that reached out to the private
sector to incorporate more advanced systems of the supply
chain.
It has also shifted its focus from maintaining large
inventories that are expensive to drafting contingency
contracts which reduce waste to save taxpayer money. This is
good, and new Aidmatrix systems allow States to view donated
goods and volunteer services in real time in a process we hope
will give them more choices in the way they would like to
coordinate their assistance.
But, Mr. Chairman, this agency's mindset has proven tougher
to change. FEMA needs to move away from its stubborn assistance
on detailed requests for specific forms of assistance and must
lean forward to proactively identify problems on the ground and
jump in and tackle those problems in a much more collaborative
manner, in my view.
I understand that FEMA today will try to blame the State of
Louisiana for not requesting supplies that the State did not
even know existed. It is like if a house was on fire and the
fire department operated the same way FEMA does, we would have
to call the fire department and specifically request the hose,
the pressurized water, the truck, the firefighters and the
ladder all before FEMA would acknowledge that they should send
this equipment to help.
This is the wrong approach. I have said we deserve a better
FEMA, and if I have anything to do with it, with your help, we
will one day have one. We need a FEMA that functions like a
work horse not a show horse. FEMA's region 6 office did not
contact Louisiana recovery authority about the supplies that
were missing. We understand now it was over $18 million.
In fact, FEMA didn't contact anyone at the State at all.
The only communication that occurred with our State happened
after the supplies were designated to surplus and turned over
to GSA, and then it was GSA and not FEMA that initiated the
contact.
I can't understand how FEMA thought it could determine if
the emergency supplies were needed without even contacting
anyone, before they even declared them as surplus, but that is
what happened in Louisiana. I am not sure, exactly, of the
details in Mississippi.
The first CNN report aired on June 11. On June 12, the LRA
adopted oversight of FEMA supply chain, which is Louisiana
Recovery Authority. On June 20, the State of Texas delivered
supplies that it had received to an organization in New Orleans
called Unity. I thank the State of Texas for acting so quickly.
On July 1, the Postal Service agreed to return all the supplies
they had gotten as surplus, and they returned it as well to us.
On July 14, the State of Arkansas delivered its supplies to
a city in southwest Louisiana, the city of Lafayette, Acadian
Outreach Center, which outreaches to low-income families in
that area, and the postal supplies arrived in Baton Rouge last
week.
So this is what happened. I am interested to hear more
detail about it, but looking ahead, in conclusion, while we
have been successful in redirecting some of these returned
supplies back to Louisiana and Mississippi, where they are
needed. It is important to identify where the breakdown in
communication occurred so they don't happen again.
I would also like to know if there are other supplies that
can be returned, and if there are others that were identified
for victims in the 2005 hurricanes that never got distributed,
and which supplies are in FEMA's regional warehouse in Ft.
Worth and Atlanta could still be sent.
I was able, and finally, to secure $73 million in recently
enacted supplemental appropriations to help 3,000 families.
With Chairman Thompson's help, with the Members on the House
side, we were able to get vouchers for 3,000 families that had
been without a place to live for 3 years, but these household
supplies can help to equip those new households, whether its
blankets or bedding supplies or cooking supplies, with people
who have lost everything.
So, in closing, I can only quote something Teddy Roosevelt
once said. He said, ``I think there is only one quality worse
than hardness of heart, and it's softness of head.'' So if
disaster strikes again, we all want FEMA to have the right
heart and the right head to get the job done.
We are willing in our States to lean forward and to do our
part, but these systems have got to improve, as the recent
floods in Iowa, California, tornadoes in Kansas have suggested.
I thank this Chairman for taking the time to look into this
issue.
Mr. Cuellar. Thank you again, Senator Landrieu, for your
statement. At this time the Chair now recognizes the Chairman
of the House Committee on Homeland Security, the gentleman from
Mississippi, Mr. Thompson, for his opening remarks.
Mr. Thompson. Thank you very much, Mr. Chairman, Senator
Landrieu, I thank both of you for holding this hearing today.
As you know, we postponed it because of an earlier emergency,
so I think it is really important going forward that we
understand how logistics and donated goods will be housed.
However, it was disappointing to me that almost 3 years
after Hurricane Katrina we are still discovering critical
governmental flaws which must be corrected. Today we examine
FEMA's distribution of donated supplies that were originally
intended for Katrina survivors. It is almost as if 3 years
after that catastrophic hurricane FEMA does not realize that
there are still survivors in need of basic necessities.
In the weeks since the news network began airing the story
of donated supplies, my office has been contacted by various
nonprofit organizations in Mississippi, my home State, telling
me that they still need supplies for Hurricane Katrina
survivors.
I have learned that my State of Mississippi chose to accept
the supplies and has been housing them in a warehouse in Pearl,
Mississippi. I have further learned that prisoners at the
Mississippi Department of Corrections, employees at the
Mississippi Department of Wildlife and Fisheries, none of whom
I can verify are Katrina victims, have received these donated
supplies.
It is clear to me that FEMA did not properly manage and
distribute these donated supplies after Hurricane Katrina. That
is why in 2006, Congress passed comprehensive legislation to
reform FEMA and give it the tools it needs to respond to
disasters both large and small. Since the enactment of that
law, we know that FEMA has made an effort to improve the
process.
But I find it disturbing that these supplies were
warehoused for 2 years, designated as surplus, and given away.
So I want to know from this hearing how FEMA arrived at the
conclusion that these donated goods were no longer needed by
Katrina survivors. Specifically, what outreach was done to
validate the donations? It is this committee's sincere hope
that we will hear of the logistical capabilities that have been
dramatically revamped and that States and nonprofits are
working together to ensure that supplies reach the intended
people.
The committee also understands that shortly after Katrina
FEMA awarded a $3 million grant to Aidmatrix Foundation to
create a software program to better streamline donated goods,
and while Aidmatrix chose not to testify here today, I look
forward to hearing from our State and nonprofit witnesses about
the effectiveness of this software. Specifically, I want to
know how FEMA is alerting States and nonprofits about this
software program so that it can receive donated goods should a
catastrophe occur again.
Again, I would like to thank Chairman Cuellar and Chair
Senator Landrieu for holding this hearing. I look forward to
learning from our witnesses the status of the logistics process
and what is being done to ensure that Hurricane Katrina
survivors received the donated goods promptly.
Mr. Cuellar. Thank you, Mr. Chairman.
At this time I would like to remind other Members of the
subcommittee, I am reminded that under the committee rules
opening statements may be submitted for the record.
At this time we will move forward and welcome our panel of
witnesses that we have here today.
Our first witness today, Mr. Eric Smith, is the Assistant
Administrator for the new Logistics Management Directorate of
FEMA. Mr. Smith orchestrates the multi-functional logistics,
planning and operation for the directorate. Prior to the
position at FEMA, Mr. Smith served as the Senior Executive
Assistant at the Defense Logistics Agency, where he was
responsible for all facets of executive level support and
tasked for a $34 billion joint service activity, with a
worldwide work force of more than 21,000 civilians, active duty
and reserve joint service personnel.
Our second witness is Mr. Carlos Castillo. Mr. Castillo is
the Assistant Administrator for Disaster Assistance Directorate
at FEMA. He has dedicated over 25 years of--dedication to local
fire fighting and local emergency management. He served as the
Assistant Fire Chief for Technical Services and as the Director
of the Miami-Dade County Office of Emergency Management. There
Mr. Castillo managed the response during seven hurricane
activations and oversaw the domestic preparedness and community
activity outreach and the county's participation in the urban
area security initiatives programs.
Our third witness is Mr. Barney Brasseux, who currently
serves as the Acting Deputy Commissioner for the FAS, Federal
Acquisition Service. Prior to his appointment, he joined the
General Services Administration Federal Supply Service, where
he has held many positions, such as Chief of Staff, Chairman of
the Management Council and the Assistant Commissioner for
Vehicle Acquisitions and Leasing of Services. With the
consolidation of the FSS and the Federal Technology Service to
create the FAS, Mr. Brasseux served as an Assistant
Commissioner for Travel, Motor Vehicles, Car Services, until
his appointment to the current position.
Again, welcome.
Our second panel, if you will allow me to go ahead and
introduce the second panel, we will hear from the following.
Mr. Paul Rainwater, who is currently the Executive Director of
the LRA, Louisiana Recovery Authority. At the LRA he serves as
the Governor's Chief Hurricane Recovery Adviser, providing
daily oversight and direction for the State's recovery
initiatives to carry out the mission of rebuilding a safer,
stronger and smarter Louisiana. Prior to his current
appointment, Mr. Rainwater was a Legislative Director and Chief
of Operations for a U.S. Senator, Mary Landrieu, where he
managed the Disaster Recovery Committee of Homeland Security
and helped the LRA and Senator Landrieu secure the $3 billion
necessary to provide full funding for the Road Home Program.
Mr. Rainwater is also currently serving as a Lieutenant Colonel
and Joint Director of the Military Support for the Louisiana
National Guard.
Again, welcome.
Our fifth witness is Mr. Ollie Davidson. Mr. Davidson
currently serves as a senior adviser for the Emergency Services
for the Humane Society and member of the Donations Management
Committee of the VOAD, the national Voluntary Organization
Active in Disaster. At the VOAD, he coordinates planning
efforts by voluntary organizations, responding to disasters.
Mr. Davidson has also served 20 years in the Office of the U.S.
Foreign Disaster Assistance and a disaster adviser to the
Business Civic Leadership Center of the U.S. Chamber of
Commerce.
Again, welcome.
Our sixth witness is Mr. Bill Stallworth, the Executive
Director of the East of Biloxi Coordination and Relief Center.
In addition to serving as Executive Director, Mr. Stallworth
has contributed to improving his community through numerous
positions, such as community development planner, community
development specialist, Vice President for Economic Development
for the Biloxi Chamber of Commerce Board of Directors.
Finally, our final witness is Ms. Valerie Keller, who
serves as the Chief Executive Officer for the Acadiana Outreach
Center in Louisiana, which provides families with necessary
services. Ms. Keller currently serves as an advisory council
member of the Louisiana Trust Fund and is cochair of the
Louisiana Advocacy Coalition for the Homeless.
We are pleased to have all of you here with us, and we
certainly appreciate your time, your efforts, your energies,
and, of course, your testimony that you are about to provide.
Without objection, the witnesses' full statements will be
entered into the record, and I now ask each witness to
summarize his or her statement for 5 minutes.
We will begin with Mr. Smith. Again, welcome, Mr. Smith.
STATEMENT OF WILLIAM ERIC SMITH, ASSISTANT ADMINISTRATOR,
LOGISTICS MANAGEMENT, FEDERAL EMERGENCY MANAGEMENT AGENCY,
DEPARTMENT OF HOMELAND SECURITY
Mr. Smith. Good afternoon, Chairman Thompson, Chairman
Cuellar, Congressman Dent, Chairman Landrieu, and Members of
the subcommittee.
I am Eric Smith, FEMA's Assistant Administrator for
Logistics Management Directorate. I am a retired Army officer
with over 24 years of technical training and experience and as
a multi-functional logistician specializing in the areas of
logistics management, planning and operations.
I joined FEMA in April 2007, leaving the Defense Logistics
Agency, to head FEMA's newly established Logistics Management
Directorate, which is responsible for planning, managing, and
sustaining the national logistics response and recovery
operations in support of disaster operations and special
events.
Thank you for the opportunity to address this committee and
provide you with a full explanation of FEMA's inventory, its
disposition, and opportunity to respond to recent media reports
alleging FEMA improperly excessed surplus goods. I would
discuss the Logistics Management's role in this process, and my
colleague, Carlos Castillo, will discuss donations management
and Aidmatrix.
FEMA has and continues to incorporate lessons learned from
Hurricane Katrina and other events to establish better business
practices and processes that will meet the needs of States in
assisting disaster survivors quickly and efficiently. As we
identify past processes and procedures that hinder FEMA and
provide support to our customers and partners, we correct them.
Recent incomplete, misleading, and inaccurate media reports
accuse FEMA of giving away supplies intended for Hurricane
Katrina survivors, and these reports often did not adhere to
standards of fairness or accuracy. FEMA staff were afforded
opportunity to brief your committee staff on July 16 and
provided facts in support of FEMA's perspective on what
happened.
For instance, FEMA continues to this day to distribute
disaster survivor living kits, which includes household items
such as kitchen cookware, blankets, towels, mops, brooms and
other basics as they transition out of FEMA-provided housing.
We have more than an adequate stock of living kits positioned
in Louisiana today to address the needs of eligible disaster
survivors.
After Hurricane Katrina and Rita, FEMA received certain
goods through donations and acquired other items through direct
Government purchase to help support affected individuals and
families in the Gulf Coast. These goods were stored locally at
operational sites across the region and were provided to
affected States which, in turn, worked through local volunteer
and charitable organizations to quickly and efficiently
distribute them to disaster survivors.
As the recovery effort progressed in the Gulf Coast and
Gulf support sites were closed, remaining supplies were then
shipped to and stored at FEMA's distribution center in Ft.
Worth, Texas. In late 2006, the Ft. Worth distribution center
continued to receive supplies from the Gulf Coast and other
areas and open additional warehouses to store them.
These supplies had accumulated in odd lots and came from
several different FEMA field sites. These supplies were
actually valued at $18.5 million, not the $85 million as CNN
reported. The change in value was due to an errant calculation
that has since been corrected.
In accordance with the Government-wide Federal management
regulation, FEMA is not permitted to give away excess or
surplus property.
In view of the unprecedented quantity of goods returned to
our distribution center and manner in which the donations were
received after Hurricane Katrina and other events, FEMA was
unable to clearly distinguish between the donated items from
Government-purchased items that were returned to our
warehouses. Therefore, we complied with otherwise applicable
Federal management regulation process and requested GSA
services to excess them.
Again, it is important to note that FEMA legally cannot
give away Government-purchased items to nondisaster survivors
in the recovery phase of a Presidentially declared disaster.
Earlier this year all four States were given the opportunity to
visit the Ft. Worth distribution center and examine these
supplies. State agencies assisting Hurricane Katrina and other
disaster survivors, including Louisiana, Texas, Mississippi and
Alabama, were all notified by GSA to participate in obtaining
surplus property through the State representatives. There were
16 States that took advantage of the notification from GSA to
obtain excess or surplus property.
Currently, the distributed excess items are beyond the
control of either FEMA or any other Federal agency and cannot
be reclaimed or redistributed. We understand that Louisiana has
taken the opportunity to make the State agency surplus property
program more accessible to eligible nonprofits, and has
identified a lead agency and efforts to better understand the
needs of nonprofits as they work to fulfill unmet needs of
disaster survivors.
FEMA will support Louisiana and all affected States in
meeting the continued needs of disaster survivors within the
scope of its regulations. During the field operations, FEMA
logistics sites now understand that if donated items are
received at logistics staging areas they are to be segregated
and kept separate from Government-purchased initial response
resources. If donated goods are received, the staging area
manager will immediately notify FEMA's designated
representative for disposition instructions.
Again, thank you for the opportunity to testify and give
FEMA's perspective on the unfavorable media reports. I am at
your pleasure to answer any questions you may have.
[The statement of Mr. Smith and Mr. Castillo follows:]
Prepared Statement of William Eric Smith and Carlos J. Castillo
July 31, 2008
Good afternoon Chairman Thompson, Chairman Cuellar, Congressman
Dent, Chairwoman Landrieu, Senator Stevens and Members of the
subcommittees.
We appreciate the opportunity to represent the Department of
Homeland Security's Federal Emergency Management Agency (FEMA) to
respond to recent media reports alleging that FEMA improperly disposed
of surplus goods, provide you with a full explanation of FEMA's
inventory, its disposition, and discuss improvements that FEMA has made
to it donations and volunteer management efforts post-Katrina.
FEMA has and continues to incorporate lessons learned from
Hurricane Katrina and other disasters to establish better, stronger
business practices that will best meet the needs of States in assisting
disaster victims quickly and efficiently. As we identify past systems
and procedures that plagued FEMA and our partners, we correct them.
Recent media reports accuse FEMA of ``giving away'' supplies
intended for Hurricane Katrina victims. These reports often did not
adhere to a standard of fairness or accuracy. We appreciate the
opportunity to discuss this issue with you today and report FEMA's side
of the story.
Eric Smith, Assistant Administrator for the Logistics Management
Directorate will discuss the logistic aspects and Carlos Castillo will
discuss ESF No. 6 efforts to improve our assistance to States in
managing donations of goods and supplies.
historical perspective
Traditionally, after a disaster, financial donations and donations
of goods and services are coordinated at the State and local levels
through voluntary and nonprofit organizations that work together with
FEMA to identify and address survivors' unmet needs.
Prior to the 2005 Hurricane Season, and as part of FEMA's standard
operating procedures for donations and volunteer management, FEMA,
through our Voluntary Agency Liaisons, worked closely with Federal,
State and local entities to provide addresses of centers receiving
donations. As soon as a State's communications were restored, hotline
numbers were provided to assist volunteers in assessing where their
services and donations were most critically needed. These phone banks
were staffed by voluntary agencies, as well as by State and local
personnel.
Following Hurricanes Katrina and Rita, the States of Mississippi,
Alabama and Louisiana established Katrina Hotlines to coordinate public
contributions of money, goods and services for the purpose of assisting
victims. These hotlines were staffed by State personnel and supported
by FEMA-trained State Donations/Volunteer Coordinators and
participating voluntary agencies. FEMA also established a toll-free
number to supplement the efforts of the States because their resources
were severely taxed.
Offers were channeled down to the affected State Donations
Coordination Teams for their consideration. FEMA also made use of the
National Emergency Resource Registry developed by the DHS Private
Sector Office. While this was an immediate solution to cataloguing
incoming offers of assistance, the system was not constructed to track
matches between States and companies offering goods. Its purpose was
solely to provide an on-line resource list of available goods and
service.
In addition to domestic offers of assistance, Gulf Coast States
received offers of financial and material aid from over 150 nations and
international organizations. To coordinate and effectively utilize the
assistance offered, FEMA turned to the agency that has diplomatic
expertise working with the international community in a disaster
context, the U.S. Agency for International Development (USAID) and its
Office of Foreign Disaster Assistance (OFDA). FEMA formally tasked
USAID/OFDA to manage the logistics and operations of incoming
international donations. We also quickly developed a system with our
Federal partners, including the Department of State (DOS), which acted
as the intermediary for offers of international assistance to the
United States as was required, at that time, by the National Response
Plan (NRP).
FEMA formally tasked USAID/OFDA for multiple reasons. First, as a
signatory to the NRP, USAID is committed to the principles underlying
the NRP and committed to support DHS/FEMA in responding to incidents of
national significance. Second, FEMA has an on-going working
relationship with USAID/OFDA and recognizes USAID/OFDA's excellent
logistics capability. Third, FEMA tasked USAID/OFDA because that agency
knows the international emergency management community. USAID/OFDA has
a good understanding of the kinds of emergency supplies that may be
offered by our international partners. USAID/OFDA also works closely
with major international relief organizations.
To facilitate operations, some USAID/OFDA staff members were
physically co-located at FEMA headquarters. FEMA also asked USAID/OFDA
to deploy staff members to the Joint Field Office (JFO) in the affected
region. This proved to be invaluable support for the logisticians and
response providers at headquarters and in the field.
For all international donations that the U.S. Government received,
DHS took responsibility to ensure that they could be distributed in the
Gulf Coast and would not place extra burdens on response operations.
However, despite our best efforts to quickly put together, with DOS and
USAID/OFDA, a mechanism to manage material offers, it was difficult to
rapidly integrate such a large quantity of foreign assistance into the
on-going disaster response. Some of these challenges included
incidental goods being shipped along with accepted items; lack of
specificity in qualifying U.S. Government acceptance; and a lack of
understanding of the specifics of the offers.
Nevertheless, the U.S. Government did successfully accept blankets,
cots, tents, generators, school supplies, and other materials.
Ultimately, USAID/OFDA distributed 143 truckloads of international
donations to distribution centers in Louisiana, Alabama, Mississippi,
Texas, and Arkansas.
As part of FEMA's after-action review of its disaster-response
efforts, we initiated meetings with those Departments and agencies that
had participated in the receipt of international donations following
Hurricane Katrina. Our aim was to formalize a system to identify
requirements and accept international offers of assistance, so that
valuable time would not be spent developing the system in the midst of
future disaster responses.
These meetings led to establishment of an interagency work group of
the Departments and agencies that had participated in Hurricane
Katrina's international donations effort. This working group has begun
formalizing an international coordination system. Participants have
included components of DHS such as FEMA, Customs and Border Protection,
Immigration and Customs Enforcement (ICE), Citizenship and Immigration
Services (CIS) and other Departments and agencies such as USAID, DOS,
Defense, Food and Drug Administration, Agriculture, and the U.S. Army
Corps of Engineers, as well as the American Red Cross (ARC).
Significant progress has been made in the development of standardized
procedures to review and accept or decline international offers of
assistance and to respond to international inquiries.
changes to esf no. 6 mass care/donations and volunteer management
As part of the National Response Framework (NRF) review process, in
2007, FEMA and ARC agreed that FEMA would assume Primary Agency
responsibilities for the mass care component of Emergency Support
Function (ESF) No. 6, including Donations and Volunteer Management.
As part of the efforts, FEMA has established a donations policy for
disasters and provides technical assistance to affected State, local,
and tribal governments on management of spontaneous volunteers and
unsolicited goods. The procedures, processes and activities are defined
in the Volunteer and Donations Management Support Annex of the NRF.
FEMA works in concert with State, local and tribal governments,
non-governmental organizations, faith-based organizations, and the
private sector in the facilitation of an inclusive multi-agency,
community-wide, coordinated response and recovery effort that ensures
establishment of a long-term recovery strategy to address unmet needs
of individuals and families.
To support these efforts, FEMA's Disaster Assistance Directorate
developed a Volunteer and Donations Coordination Team at FEMA
Headquarters to provide rapid, coordinated response and provide Federal
support to State and local governments. These efforts include warehouse
support for housing unsolicited donated goods, coordination of
unsolicited private and international donations, and use of Aidmatrix,
a web-based application that enables us to record offers of donated
goods, services and financial resources.
challenges of donation and volunteer management
Following a disaster event, even those that do not receive a
Presidential disaster declaration, the general public makes many offers
of in-kind and financial contributions. Until 2007, there was not a
coordinated, effective mechanism to capture the offers and bring them
to the attention of emergency managers for operational use. The
challenge of those in the field is getting the ``Right Aid to the Right
People at the Right Time.''
Uncoordinated shipments of unsolicited donated goods and large
numbers of unaffiliated volunteers can cause unnecessary disruption and
confusion in the disaster area. This can lead to offers remaining
unused or to a waste of valuable resources. State donations management
coordinators and others whose job is to manage the public response
often are overwhelmed.
FEMA and DHS as a whole saw the need for a secure, user-friendly
system to efficiently connect Federal and State/local governments, the
private sector, and the voluntary sector to match the volume of
donation offers of product and volunteers with appropriate nonprofit
agencies.
In February 2006, FEMA posted a ``Sources Sought'' notice in
Federal Business Opportunities (FEDBIZOPPS.GOV) for the development of
a much-needed web-based application for donation and volunteer
management. The Agency evaluated all eight responses received in
response to the ``Sources Sought'' notice against the published
requirements and determined that the Aidmatrix Foundation's technology
solution was the only one to meet all the requirements. As mentioned
above, FEMA further determined that the expansion of an software
package or solution previously developed by the Aidmatrix Foundation
with warehouse, call center, and volunteer management capabilities
would serve the broad public purpose of helping State and local
government and voluntary agencies to ensure that donated goods and
services are accepted, acknowledged, and deployed to the areas of
greatest need during disaster response and recovery activities.
Moreover, working with the Aidmatrix Foundation enabled the Agency
to leverage the good work that had already been taking place in the
donation management community. Several of FEMA's major voluntary agency
partners, including the American Red Cross, Adventist Community Service
and America's Second Harvest were using the Aidmatrix Foundation's
Disaster Relief Matrix to support donation warehouse operations in
Katrina-impacted States.
The Agency subsequently decided that a Cooperative Agreement was
the best vehicle to secure the donation and volunteer management
software. The Cooperative Agreement was awarded to Aidmatrix on
November 28, 2006. It was determined that the funding used to support
the expansion of a software package or solution previously developed by
the Aidmatrix Foundation would not be used to directly acquire donation
management services or solutions for the Federal Government. It was
also determined that the direct benefit would be to the State, local
and tribal governments, voluntary agencies, and disaster victims in
need of assistance that may be available through donations. Finally, a
Cooperative Agreement would allow the voluntary agency community and
private sector to have greater equity in ensuring the success of the
donations management process, while providing FEMA the opportunity to
leverage a public/private partnership.
supply distribution to gulf coast
As a result of Hurricanes Katrina and Rita, as well as several
other disasters, FEMA received certain goods through donations or made
direct Government purchases to help support affected individuals and
families. These goods were stored locally at sites across the Gulf
Coast, and were provided to affected States which, in turn, worked
through local volunteer and charitable organizations to quickly and
efficiently distribute them to disaster victims.
Throughout the nearly 3 years since Hurricanes Katrina and Rita,
FEMA has provided a significant level of assistance to States,
communities, and individual disaster victims, and continues to do so.
The FEMA Louisiana Transitional Recovery Office (LA TRO), for example,
has assisted temporary housing unit residents with various resources as
they relocated to rental units. The LA TRO continues to provide basic
household items, both those bought by FEMA and those donated by
voluntary agencies, to disaster victims.
As an example, FEMA placed a ``living kit'' in approximately 90,000
temporary housing units before delivery to disaster victims. These kits
included needed items such as bed sheets, blankets, dishes, pots and
pans, and cleaning supplies. In addition, during the past several
months, as families have transitioned from their FEMA-provided
temporary housing units to more suitable, safer, and functional
housing, FEMA has provided these families with additional living and
kitchen kits (which supply basic kitchen utensils). This effort will
continue as additional households transition into a permanent housing
solution.
Approaching the Third-year Anniversaries of Hurricanes Katrina and
Rita, FEMA has distributed more than $50 billion in the region. This
includes $7.8 billion to individuals and families through Housing and
Other Needs Assistance that includes personal property replacement,
transportation assistance, health care and other expenses related to
moving and storage. Aid continues to flow to residents needing support.
disposition of excess supplies
As the recovery effort progressed in the Gulf Coast and field
support sites were closed, remaining supplies were shipped to and
stored at FEMA's Distribution Center in Fort Worth, Texas.
These supplies had accumulated in odd lots and came from the FEMA
Regions operating in the Gulf Coast area and other FEMA sites. The
materials and supplies held in storage and determined to be excess to
the agency's needs are valued at $18.5 million, not $85 million as
reported. This change in value was due to an errant manual calculation
that has since been corrected.
Even as recovered supplies were warehoused, the Gulf Coast Recovery
Office (GCRO) maintained a supply of kits and other commonly requested
materials to distribute as appropriate in support of the temporary
housing mission. The GCRO continues to do so today. The household items
are distributed to eligible temporary housing residents who transition
to long-term housing. FEMA continues to work with the Gulf Coast States
in supporting those in need of these items. The residents can request
the items through their caseworkers. It is important to note that State
and local governments coordinate donations of goods through voluntary
and nonprofit organizations that work together with FEMA to address
disaster victims' needs.
In late 2006, the Fort Worth Distribution Center continued to
receive excess supplies from the Gulf Coast, and acquired additional
storage space to store the items being received. The supplies covered a
warehouse area of over 873,815 square feet at the Fort Worth
Distribution Center, which is approximately the size of fifteen
football fields.
In accordance with the Government-wide Federal Management
Regulation, FEMA is not permitted to ``give away'' excess or surplus
property. Section 701 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121-5207) gives FEMA the
authority to receive donations and distribute them as necessary. In
view of the unprecedented amount and manner in which the donations were
received after Hurricane Katrina, FEMA was unable to clearly
distinguish between the donated items from Government-purchased items
that were returned to our warehouses. Therefore, we utilized the
otherwise applicable Federal Management Regulation process, whereby GSA
disposes of surplus property. It is important to note that FEMA legally
cannot give away Government-purchased items to non-disaster victims in
the recovery phase of a Presidentially-declared disaster.
FEMA coordinated disposition of these supplies with GSA, which
manages the Surplus Property Disposal process and serves as the
disposition agency for Federal civilian agencies. This is the means by
which all Federal agencies, including FEMA, screen and transfer excess
property from one agency to another to ensure that property or
inventory of the Government is not wasted. The GSA process helps ensure
that supplies and assets are used or donated to eligible recipients.
Under the GSA process, the supplies in question were made available
first to DHS, then to other Federal agencies, and then to State
agencies and non-profit organizations. The items were first made
available to the components of DHS for 7 days. Next, the items were
made available to other Federal agencies through GSA for a period of 21
days. After Federal agencies had the opportunity to screen and request
items, GSA followed its prescribed procedures by notifying the
established State Agencies for Surplus Property (SASPs) in each State
and territory to advise them of the availability of the property.
All States, including Louisiana, were afforded the opportunity to
visit the Fort Worth Distribution Center and examine these supplies on
February 13-14, 2008. State agencies involved in assisting Hurricane
Katrina and other disaster victims, including Louisiana, Texas,
Mississippi, and Alabama were all specifically contacted by GSA to
participate in the transfer process through the SASP representative.
Fourteen States took advantage of the call from GSA to obtain excess or
surplus property. Mississippi, in particular, acquired materials valued
at several hundred thousand dollars in addition to the materials FEMA
was directly managing in the region.
Also, before we started the screening and disposal process through
GSA in 2008, FEMA Voluntary Agency Liaisons notified the National
Voluntary Organizations Active in Disaster that excess supplies may
become available to non-profit organizations through the GSA disposal
process and encouraged their assistance in aiding non-profits
application efforts. FEMA Voluntary Agency Liaisons also reached out to
SASP State representatives in an attempt to encourage them to reach out
to the non-profits in their State and make them aware of the surplus
goods that might become available to them through the GSA process.
current status of excess materials
Currently, the distributed excess materials are beyond the control
of either FEMA or any other Federal agency, and cannot be reclaimed and
redistributed. Nevertheless, FEMA will coordinate with State and local
officials to ensure visibility into the distributed supplies as well as
any supplies remaining in storage. We understand that Louisiana has
taken this opportunity to make its State agency surplus property
program more accessible to eligible non-profit organizations and has
identified a lead agency in an effort to better understand the needs of
these organizations as they work to fulfill unmet needs of disaster
victims. FEMA will support Louisiana in this effort to help meet the
continued needs of disaster victims within the scope of its
regulations. We will work with Louisiana and the other Gulf Coast
States to ensure they are notified, have a full understanding of the
surplus disposal process and are given the opportunity to access the
property.
I am also pleased to note the actions taken by the State of Texas
to make materials available to residents of Louisiana. I believe that
this level of State-to-State coordination, spurred by your interest and
energy, is the most appropriate course of action.
lessons learned and improvements
FEMA has incorporated lessons learned from Hurricane Katrina and
other disasters to establish more effective business practices and
processes that will best meet the needs of States in assisting disaster
victims quickly and efficiently. The Logistics Management Directorate
has strengthened its business practices and processes through enhanced
relationships with Federal and State governments, non-governmental
organizations and the private sector. These partnerships have allowed
FEMA to make considerable progress toward the National Logistics
Coordinator Concept. This concept allows FEMA to tap into the resources
of its partners, minimizing the need for FEMA to maintain large
inventory levels of its own and thus minimizes the need to dispose of
excess supplies.
During field operations, FEMA logistics sites will require that all
donated items received at logistics staging areas be segregated and
kept separate from Government-purchased initial response resources.
When donated goods are received, the staging area manager will
immediately notify FEMA's designated representative for disposition
instructions for the donated items. Additionally FEMA Logistics is
working closer with the non-profit organizations through liaisons with
FEMA ESF-6 Mass Care, Voluntary Agency Liaisons and Donations
Management.
about the aidmatrix foundation
Leveraging leading-edge technologies from the corporate world, the
Aidmatrix Foundation created a system which provides a simple but
effective means of connecting donors with relief organizations. The
system communicates offers and needs up and down the humanitarian
relief supply chain, helping to get the right aid where it is needed at
the appropriate time.
The basic system was provided grant funding by FEMA/DHS and made
available to States at no cost. States are encouraged to set up and be
trained on the system before the need arises. Additional customizations
can be performed at a reduced cost to the State or their designated
foundation. Aidmatrix's training and customization services will be
provided at discounted rates. To further reduce costs, States may seek
private corporate sponsorships.
FEMA also is providing each State with the standard FEMA design.
States also have the option of customizing and branding their Web site.
Basic program functionality is available at no cost to each State's
donations management lead agency and its voluntary networks as outlined
above. Each State will have autonomy over its installation. Recognizing
that connecting to the nonprofits on the ground is critical, the system
includes links to the State Voluntary Organizations Active in Disaster
(VOAD) member organizations. Customization options allow States to add
additional nonprofit organizations, cities, and governmental agencies.
Aidmatrix provides on-site user training, documentation, and demo
environments. Aidmatrix Network provides several modules that cover a
wide range of humanitarian aid relief donations coordination. These
features will be phased in over time, and include:
In-Kind Donations Management.--The System allows States to
establish a call center and national in-kind and State portals
via the web.
Unaffiliated Volunteer Management.--The tool helps States
manage the volunteer response and connects offers to agencies
with needs efficiently and effectively. It enables smaller,
often overlooked agencies to take advantage of the supply of
volunteers and alleviate the pressure on the larger agencies
and governments to provide more opportunities to help. (This
feature is funded by FEMA in Phase II.)
Online Relief Warehouse Management.--Based on nonprofit
warehouse management best practices, the tool leverages
leading-edge technology in a simple, user-friendly way to
provide real-time visibility into relief warehouse activity and
status for all stakeholders involved in a relief effort.
Financial Donations Management.--Allows States to quickly
fundraise in response to specific disasters. The tool promotes
the offering of financial donations by individuals and educates
the general public on the most critical needs. In addition, the
tool facilities workplace and group-based giving campaigns and
can easily be customized for rapid response. This component is
optional and intended to support a State's disaster cash
donations plan.
Each of these aspects of the Aidmatrix system for donations and
volunteer management offers specific advantages to consumers and end
users.
in-kind donations management
The system will provide the designated State Donations Management
Organization with administrator access and privileges to all
information in the State's system. This will allow visibility to all
reporting, all in-bound offers, and the ability to offer donations to
end relief charities. In times of national disaster, the State will be
connected to and receive national offers via the system. In the case of
a State-localized disaster, the State can use the solution to respond
to a regional event. The system also includes a Call Center Module. A
State can use this module to respond to a local or national disaster.
The technology is provided by the Federal Government and the State is
responsible for providing the manpower to staff the Call Center and
provide up-to-date messaging.
This functionality is important for both donors and donation
managers. Aidmatrix provides an on-line portal for the public to donate
on-line with messaging on good product donation practices. In addition,
corporate donors can be set up in advance with unique log-ins so they
have access to their history, status of donations, etc. These features
enhance customer service due to decreased wait time, as it allows
donors to can pledge meaningful offers as they have visibility into
critical needs.
Donations Management Coordinators now have the capability of
routing donation offers to one or more agencies in a short time frame,
and non-profit organizations have the ability to respond real-time and
to changes in offers/acceptance and generate reports. This allows for
reduced call volume as more offers are taken on-line instead of via
phone, the potential for less waste as offers can be given for specific
needs, and enhanced collaboration and communication.
unaffiliated volunteer management
This aspect of the Aidmatrix system, which will become available in
Phase II of the Federal Program, provides volunteers with the ability
to register their profile for the selection of volunteer opportunities
by local charities, as well as the ability to view charities needs by
ZIP code, skill set, etc.
This is effective for States because it gives volunteers the
ability to receive e-mail notifications of status, allows voluntary
agencies the ability to review offers of help by ZIP code and skill
set, post requests for volunteers, and direct unaffiliated volunteers
to this portal in times of overwhelming response.
improvements to donation and volunteer management
FEMA has made vast improvements in its ability to assist States in
managing cash and in-kind donations. Recognizing that many States may
not have the resources necessary to implement broad donation management
activities, FEMA, through a cooperative agreement with the Aidmatrix
Foundation, has been able to facilitate an option that is useful in
providing just-in-time support to States during large donations
operations. The system has been used to effectively address disasters
in California, Alabama, Oklahoma, Missouri, and Arkansas.
To date, FEMA has provided the Aidmatrix Foundation with funding of
$2.3 million to expand its existing web-based donations management
network for use during times of disaster. These funds have established
the national framework for an integrated, coordinated approach to
donations management--by connecting private sector, Government and
leading nonprofit entities--for relief deployment and also for round-
the-clock use. Through this cooperative agreement vehicle, Aidmatrix
personnel can rapidly deploy to the State Emergency Operations Center,
Joint Field Office, warehouse and Volunteer Reception Centers or other
locations where donations coordination is needed.
This system streamlines the way unsolicited donations are offered,
accepted, processed, tracked, distributed and acknowledged. The
Network's virtual approach allows Government and nonprofit users to see
in real time the in-kind donations offers available for immediate
distribution. The system is designed to support donor intent through
directing and allocating aid at the State level so that during a
disaster, qualified nonprofit organizations responding to the disaster
can get offers more efficiently.
Under the agreement, Aidmatrix also offers State donations
management coordinators with software tools to rapidly set up a call
center to meet inquiries of the general public wanting to help in the
aftermath of a disaster and for corporate constituents positioned to
offer unsolicited in-kind products. State-designated portals are the
preferred method of use for donation offers. States are encouraged to
promote this portal as part of their donations management plan.
Twenty-four States, including Alabama, Arizona, Arkansas,
California, Connecticut, Florida, Georgia, Indiana, Iowa, Louisiana,
Minnesota, Mississippi, Missouri, New Mexico, New York City, North
Carolina, Ohio, Oklahoma, Oregon, Puerto Rico, Rhode Island, South
Carolina, Texas, and Virginia; have adopted the free tool from FEMA.
All States are expected to be on board by the end of calendar year
2008.
summary
FEMA remains strongly committed to those affected by the disaster
and the long-term recovery efforts in the Gulf Region. Based on our
efforts there, FEMA has developed a national web-based donations
management network for national and State use during times of disaster.
The network is offered free of charge to States, and is a web-based
tool designed to manage the offers of undesignated cash, unsolicited
in-kind goods and unaffiliated volunteers. The system includes a multi-
agency warehouse inventory component that came on-line June 2008.
Our efforts to date have paid off. During the recent Midwest
flooding, the National Donations Management Network was made available
to the States affected to allow them to capture offers of donated goods
and help them manage their Multi-Agency Warehouses.
Additionally, FEMA Logistics is working closer with States and
local governments and internally to ensure visibility within the
Logistics Directorate. I can assure you that FEMA Logistics has and
continues to make progress in improving its business practices in
planning, managing and sustaining the national logistics response and
recovery operations.
Thank you for the opportunity to testify. We would be pleased to
answer any questions you may have.
Mr. Cuellar. Thank you for your testimony, Mr. Smith. At
this time I would like to recognize Mr. Castillo to summarize
his statement for 5 minutes.
STATEMENT OF CARLOS J. CASTILLO, ASSISTANT ADMINISTRATOR,
DISASTER ASSISTANCE, FEDERAL MANAGEMENT AGENCY, DEPARTMENT OF
HOMELAND SECURITY
Mr. Castillo. Good afternoon, Chairman Thompson, Chairman
Cuellar, Congressman Dent and Chairwoman Landrieu and Members
of the subcommittee.
As the Assistant Administrator for the Disaster Assistance
Directorate, I oversee FEMA's support for the many recovery
activities we provide to States, communities and individuals as
they work to rebuild their homes and their lives following a
major disaster. I am here today in particular to discuss our
actions under Emergency Support Function 6, or ESF No. 6. This
is a section of the Federal response focused on the delivery of
Federal mass care, emergency assistance, housing and human
services when local, State and tribal response and recovery
needs exceed their capabilities.
I will also address the reforms we have put in place over
the past 2 years relating to the donation of goods and
supplies.
Until 2007, there was not a coordinated, effective
mechanism to capture offers and bring them to the attention of
emergency managers for operational use. Uncoordinated shipments
of unsolicited donated goods and large numbers of unaffiliated
volunteers can cause unnecessary disruption and confusion in a
disaster area.
This can lead to offers remaining unused or to waste of
valuable resources. State donations management coordinators and
others whose job it is to manage the public response can be
overwhelmed.
As part of our ongoing effort to incorporate the lessons
learned in last 3 years, FEMA released earlier this year the
updated National Response Framework, or NRF. This designated us
as the primary agency responsible are the mass care component
of ESF No. 6, including donations and volunteer management.
Subsequently, FEMA established a donations policy for
disasters and the provision of technical assistance on the
management of spontaneous volunteers and unsolicited goods. In
accordance with the Donations and Volunteer Support Annex of
the NRF, each State manages and oversees a distribution network
of donated goods, and FEMA works closely, through our voluntary
liaisons, to assist in the distribution process.
To support these efforts, my office developed a volunteer
and donations coordination team that provides rapid,
coordinated response and provides Federal support to tribal,
State and local governments.
Our support activities can include coordination of
unsolicited private and international donations, and the use of
the Aidmatrix web-based application that enables us to make
offers of donated goods, services and financial resources.
Recognizing that many States may not have the resources
necessary to implement broad donation management activities,
FEMA, through a cooperative agreement with the Aidmatrix
Foundation, has been able to facilitate an option that is
useful in providing just-in-time support to States during large
donations operations.
The system has been used to effectively address disasters
in California, Alabama, Oklahoma, Missouri, Arkansas, Iowa and
Indiana. Aidmatrix has created a national framework for an
integrated, coordinated approach to donations management by
connecting private sector, Government and leading nonprofit
entities for relief deployment and also around for around-the-
clock use.
The system streamlines the way unsolicited donations are
offered, accepted, processed, tracked, distributed and
acknowledged. Twenty-three States have adopted this free tool
from FEMA as of now.
Today's hearing is focused on how we managed the received
donations in 2005 to help those in the Gulf Coast. Our written
testimony today focuses on that in much greater detail, and I
am sure we will address it in responding to your questions.
We all agree that FEMA did not have the systems in place to
handle every aspect of our response to those catastrophic
storms. But the truth of the matter is, even with this less-
than-perfect system, FEMA has delivered more than $50 billion
in aid to those in need in the Gulf Coast.
We did distribute 143 truckloads of donated supplies
received from around the world to those on the ground. FEMA's
Gulf Coast recovery office did provide more than 90,000
households with kits to help them return to their damaged homes
or move into a new residence, and it continues to disburse
these kits today, with sufficient supplies on hand to meet the
demand of those we are still serving nearly 3 years later, and
perhaps most importantly we have learned to set into place the
Aidmatrix system, which will help us make sure we do not make
the same mistake again.
FEMA remains strongly committed to those affected by the
disaster and the long-term recovery efforts in the Gulf region.
We will continue to work with the Gulf Coast States to address
long-term recovery efforts and the needs of the victims. We
have put new systems in place to avoid repeating mistakes of
the past, and our efforts to date have paid off.
Thank you for your time and your support of our on-going
reforms. I look forward to answering the questions you may
have.
Mr. Cuellar. Thank you, Mr. Castillo. I now recognize Mr.
Barney Brasseux to summarize his statement for 5 minutes.
STATEMENT OF BARNEY L. BRASSEUX, DEPUTY COMMISSIONER, FEDERAL
ACQUISITION SERVICE, GENERAL SERVICES ADMINISTRATION
Mr. Brasseux. Thank you, Mr. Chairman. Good afternoon,
Chairman Cuellar, Chairman Thompson, Senator Landrieu and
Members of the subcommittee. Thank you for the opportunity to
participate in today's hearing.
I am Barney Brasseux, Deputy Commissioner of the Federal
Acquisition Service of the General Services Administration. The
Federal Acquisition Service carries out the GSA Administrator's
role in providing acquisition and logistics services to Federal
agencies. Included amongst these logistics services is
management of the Federal program for disposal of personal
property. This is managed by our Office of Personal Property
Management, part of our Office of General Supplies and
Services.
Generally speaking, personal property is defined as any
property except buildings, lands, agency records and naval
vessels. The primary mission of GSA's Office of Personal
Property Management is to maximize the reuse of Federal
property.
As provided in Title 40 of the United States Code and
implemented by the Federal management regulations, Federal
agencies are required to report excess personal property to GSA
for screening, for redistribution to other Federal agencies and
other eligible recipients.
Property is generally transferred at no cost to Federal
agencies, their authorized contractors, cooperatives and
project grantees. Property is reported to GSAXcess, a web-based
program that is used by our customers to screen and select
needed property. Once reported, property is normal offered for
screening for 21 calendar days.
For Federal agencies, most Federal property is transferred
on a first come-first serve basis. Property transfers are also
processed through GSAXcess. Recipients of property are
responsible for making all necessary transportation
arrangements.
Excess property which is not selected for transfer within
the Federal Government is declared by GSA to be surplus to the
Federal Government at the conclusion of the screening period.
Once GSA declares the property surplus, the property can be
transferred under the Federal Surplus Personal Property
Donation Program. This program is operated through the State
Agency for Surplus Property, SASP, in each State, territory,
and the District of Columbia.
The SASPs are established under Title 40 of the U.S. Code
and are responsible for determining the eligibility of
activities within the State to receive donated Federal surplus
property in accordance with the requirements in statute and the
Federal management regulation.
The SASPs are also responsible for fair and equitable
distribution of surplus property within the State and ensuring
compliant use of property. Each State has a written State plan
of operations for the SASP, which is approved by GSA. Eligible
recipients of property under the donation program are specified
in Title 40. Major categories of eligible recipients are State,
public agencies, nonprofit and public health activities.
SASP will pick up and warehouse property for donation
within the State or may allow the direct donation of property,
meaning the donee will make arrangements to pick up and
transport property which is allocated to them. Property that is
donated is normally placed and used by a donee within 1 year
for 1 year. Donations are made to the SASPs at no cost to the
Federal Government. As SASPs are self-sufficient by law, they
assess service and handling fees to the actual donee recipients
in order to fund their operations. These fees are specified in
the State plan of operation for each SASP.
SASP operations are reviewed by GSA regional offices on a
regular basis to determine if operations are in compliance with
the State plan and applicable regulations. GSA has the
authority under the FMR to shorten screening when necessary or
appropriate. Based on the concentration of property and its
characteristics of potential demand, we often do so.
At times we will conduct an on-site physical screening
event. In these cases we will most often offer screening for
Federal agencies for 1 day. Once no Federal agency has
expressed interest in the property, GSA declares the property
surplused to the Federal Government.
On the second day, GSA offers screening for the SASPs.
These on-site screening events are well advertised in advance
to allow customers to travel and make transportation plans.
Regarding the current event under discussion, in mid-
December, 2007, the Federal Emergency Management Agency, FEMA,
initially advised GSA of its intent to report excess household
goods to GSA and FEMA's request to conduct an on-site screening
event. FEMA reported the excess household goods to GSA on
February 4, 2008.
GSA and FEMA worked together to conduct an on-site
screening event. A property management office in Ft. Worth
advertised this event to our Nation-wide lists of Federal
agency customers and to all SASPs through direct e-mails and
through the National Association of State Agencies for Surplus
Property.
The first day of on-site screening, February 13, 2008, was
for Federal agency customers and representatives of 30
different activities who participated and requested property.
The second day, February 14, 2008, the remaining property
was offered for donation to the 16 SASPs that elected to
participate.
I would like to thank you again for this opportunity to
speak to the subcommittees. I am happy to answer any questions
you may have.
[The statement of Mr. Brasseux follows:]
Prepared Statement of Barney L. Brasseux
July 31, 2008
Good morning, Chairman Thompson, Congressman King, Chairwoman
Landrieu, Senator Stevens and Members of the subcommittees. Thank you
for the opportunity to participate in today's hearing. I am Barney
Brasseux, Deputy Commissioner of the Federal Acquisition Service (FAS)
of the General Services Administration (GSA).
The Federal Acquisition Service carries out the GSA Administrator's
role in providing acquisition and logistics services to Federal
agencies. Included amongst these logistics services is management of
the Federal program for the disposal of personal property. This is
managed by our Office of Personal Property Management, part of our
Office of General Supplies and Services.
Generally speaking, ``personal property'' is defined as any
property except buildings, land, agency records, and naval vessels.
The primary mission of GSA's Office of Personal Property Management
is to maximize the reuse of Federal property. As provided in Title 40
of the United States Code and implemented by the Federal Management
Regulations (FMR), Federal agencies are required to report excess
personal property to GSA for screening for redistribution to other
Federal agencies and other eligible recipients. Property is generally
transferred at no cost to Federal agencies, their authorized
contractors, cooperatives, and project grantees.
Property is reported to GSAXcess, a web-based program that is used
by our customers to screen and select needed property. Once reported,
property is normally offered for screening for 21 calendar days. For
Federal agencies, most property is transferred on a first-come, first-
served basis, although for some specialized commodities, we will allow
time for competition for these high-demand items, such as aircraft and
construction equipment. Property transfers are also processed through
GSAXcess. Recipients of property are responsible for making all
necessary transportation arrangements. The FMR states the property
should be removed within 15 days, although that can be lengthened on
agreement between GSA and the holding agency. GSA ensures that property
recipients are aware of this time deadline and that property recipients
comply.
Excess property which is not selected for transfer within the
Federal Government is declared by GSA to be surplus to the Federal
Government at the conclusion of the screening period. Once GSA declares
the property surplus, the property can be transferred under the Federal
Surplus Personal Property Donation Program. This program is operated
through the State Agency for Surplus Property (SASP) in each State,
territory, and the District of Columbia. The SASPs are established
under Title 40 of the U.S. Code. The SASP is responsible for
determining the eligibility of activities within the State to receive
donated Federal surplus property, in accordance with the requirements
in statute and the FMR. The SASPs are also responsible for fair and
equitable distribution of surplus property within the State and
ensuring compliant use of donated property. Each State has a written
State Plan of Operations for the SASP which is approved by GSA.
Eligible recipients of property under the donation program are
specified in Title 40. Major categories of eligible recipients are:
State and public agencies, which generally include States,
their departments, divisions, and political subdivisions of
States, including cities, counties, and other local government
units and economic development districts.
Nonprofit educational and public health activities exempt
from taxation under Section 501 of the Internal Revenue Code,
including, but are not limited to:
Medical institutions and hospitals;
Providers of services to the homeless; and
Providers of services to the impoverished.
SASPs will pick up and warehouse property for donation within the
State or may allow the ``direct donation'' of property meaning the
donee will make arrangements to pick up and transport property which is
allocated to them. Again, GSA will ensure removals are timely and
within the established time frame.
Property that is donated is normally placed in use by a donee
within 1 year, for 1 year. The usage requirement is lengthened to 18
months for property with an original acquisition value exceeding
$5,000. Donations are made to the SASPs at no cost to the Federal
Government. As the SASPs are self sufficient, by law, they assess
service and handling fees to the actual donee recipients in order to
fund their operations. These fees are specified in the State Plan of
Operation for each SASP.
SASP operations are reviewed by GSA Regional Offices on a regular
basis to determine if operations are in compliance with the State Plan
and applicable regulations.
GSA has the authority, under the FMR, to shorten screening when
necessary or appropriate. Based on the concentration of property and
its characteristics and potential demand, we often do so. At times, we
will conduct an on-site, physical screening event. In these cases, we
will most often offer screening for Federal agencies for 1 day. Once no
Federal agencies express interest in the property, GSA declares the
property surplus to the Federal Government. On the second day, GSA
offers screening for the SASPs. These on-site screening events are well
advertised in advance to allow customers to make travel and
transportation plans.
Surplus property not selected for donation is offered for public
sale. The Office of Personal Property Management's Sales Program is
approved as a Sales Center under the Federal Asset Sales Program
(eFAS), one of the initial e-government initiatives. GSA is the only
Nation-wide activity approved as a Sales Center for all commodity
groups and for all methods of sale. Surplus property is offered for
competitive sales to the general public, most commonly through GSA
Auctions, our internet auction site. All GSA sales, whether on the
internet, or live auctions or other methods still utilized at times,
are listed on GovSales.gov, the eFAS central portal for all Government
sales.
Regarding the event currently under discussion, in mid-December
2007, the Federal Emergency Management Agency (FEMA) initially advised
GSA of its intent to report excess household goods to GSA and FEMA's
request to conduct an on-site screening event. FEMA reported the excess
household goods to GSA on February 4, 2008. GSA and FEMA worked
together to conduct an on-site screening event. Our Property Management
Office in Fort Worth advertised this event to our Nation-wide list of
Federal agency customers and to all SASPs through direct emails and
through the National Association of State Agencies for Surplus
Property.
The first day of on-site screening, February 13, 2008, was for
Federal agency customers and representatives of 30 different activities
participated and requested property. The second day, February 14, 2008,
the remaining property was offered for donation to the 16 SASPs that
elected to participate. Those SASPs were Alabama, Arkansas, Georgia,
Illinois, Kansas, Minnesota, Mississippi, Missouri, Nebraska, New
Mexico, North Carolina, North Dakota, Oklahoma, Pennsylvania, South
Dakota, and Texas.
Thank you again for this opportunity to speak to the subcommittees.
I am happy to answer any questions you may have.
Mr. Cuellar. Again, thank you for your testimony. I want to
thank all of you for your testimony. At this time I would like
to remind each Member that he or she will have 5 minutes to
question the panel.
Members, as you know, we have been notified probably around
2:15 or 2:20 we will be called for six votes. We will leave,
Senator--when they do call us for votes, to continue the
meeting, we will leave to the Senator here, vote, and then come
back and join you.
The only thing I would ask you, just in case if we leave
before we finish the questioning, with all due respect,
sometimes, there is a tendency of some of the Federal agencies
that as soon as they give their testimony, they walk out. Then
the second panel will come in and point out certain
shortcomings or certain deficiencies, have a tendency of
agencies not listening to them.
So I would ask all three of you all, if you don't mind,
with all due respect, that when you finish if you can just sit
here and listen to the second panel, because I think we are all
here to learn from each other.
So at this time I am going to recognize myself, the order
that we have right now, the changes, I am going to go ahead and
recognize myself for 5 minutes.
Senator, I will recognize you, Mr. Thompson, Chairman
Thompson, Mr. Dent, Mr. Etheridge, and then Ms. Jackson Lee if
she comes back, five Members, 5 minutes.
I will go ahead and recognize myself. Mr. Smith, let me ask
you a question. You had mentioned that there were--the media
was erroneous in the reporting. I am going to ask you,
specifically, I know you went over that, but I want to know
specifically how were they erroneous in the reporting? What is
it that you are saying that you did not do wrong, No. 1?
No. 2, we are here for a purpose, as you know, there are a
Senator and some Members here that have certain questions to
ask, and I want to know where those questions are based on
certain assumptions, and I want to know from your opinion how
are we wrong on those assumptions for having this particular
meeting here.
So, Mr. Smith, if you could answer the first part or the
second part.
Mr. Smith. Thank you, Mr. Chairman.
First of all, there are a couple of different points. The
immediate articles reiterate, kept reiterating the fact that we
gave away supplies. In fact, we, again, as I stated in my
statement, according to the Federal management regulation, we
cannot give away anything. We had to use the established
Federal process to dispose or excess these supplies. So that
was one statement that they kept saying that we tried to
correct, to let them know that it wasn't a giveaway, that it
was actually following the Federal process.
Then, again, the reporting of the actual amount of $85
million, the amount was actually $18.5 million, and one of the
articles reiterated the fact that none of the supplies ever
reached their destination, that these supplies never reached
their intended recipients, while in fact the way the that the
logistics system got these supplies is because they were all
sent out to the Gulf States. Once the sites closed down, FEMA
operations--I mean, the support operations closed down, in
fact, these supplies were sent back to me, to my operations. We
didn't receive them and did not issue them. They were returned
from us after they were not used, from different areas,
Mississippi, Louisiana, all the field sites that we were
operating, returned to my site.
Then, in addition to that, we tried to explain that, to
today, we still have supplies in Louisiana, throughout the Gulf
States, which we continue to issue to eligible applicants to
the housing program, as in fact--just as recently we have
issued about 9,000 living kits. We still have living kits in
the storage down there today, and whenever the eligible
applicant has a need for those we issue them those kits.
The other fact that we have taken corrective action, which
in fact that is not the case. We learned from that when that
happened, and my colleague Carlos Castillo will talk a little
bit later about how we are doing that through the Aidmatrix
process.
Mr. Cuellar. Okay, that is the first part. The second part,
there is an assumption of why you are here and why you are
going to get a series of questions. How were we wrong on that
assumption? Where are we missing? What is the basic premise
here?
Mr. Smith. I am sorry, Congressman.
Mr. Cuellar. In other words, you are saying that the media
reports are wrong. I think you focused on the part of I say,
you were saying, well, we didn't give it away. We disposed of
it according to certain rules.
But the bottom line is, did they get, did all of them get
to the intended purpose, and that is to help the survivors?
Mr. Smith. As far as I am aware, that the entities that
requested support through their, the Louisiana, the long-term
recovery office or the caseworkers, received the supplies that
they asked for. I am not aware of any instance where someone
asked for supplies in any of the Gulf States that was passed
through one of our organizations that was not filled.
Mr. Cuellar. What about the 16,000 Katrina survivors that
are still there? Have you outreached to them and said we have,
because I think you said you still had some supplies and
warehouses? Do you feel satisfied that all those folks don't
need any of those supplies that are still in those warehouses?
Mr. Smith. I will attempt to answer that because that is a
little bit out of my area as far as individual assistance. But
from the way I understand it, the process works, is that if a
recipient, if there's an eligible recipient that has a need,
they make their need known through the long-term recovery
office there, and that need is filled through the assets that
are there on the ground through that recovery office.
If the recovery office does not have those assets or can't
meet that need, they would then pass that requirement back to
me at the strategic level, and I will supply it for them.
Mr. Cuellar. Okay. Senator, I am going to go, we alternate,
I apologize for that. At this time I recognize my Ranking
Member, Mr. Dent from Pennsylvania, for his 5 minutes.
Mr. Dent. Thank you, Mr. Chairman. Mr. Castillo, effective
logistics management can greatly assist in a disaster
management team, as we have seen with the California wildfires
and Midwest floods.
During the floods, I requested that Aidmatrix be installed
and used to manage unsolicited donations. This is the first
time that the Aidmatrix network was utilized for a large-scale
event.
What is your overall assessment of the effectiveness of the
Aidmatrix system during those recent disasters?
Mr. Castillo. Yes, Congressman, we have actually had very
positive feedback from this. As you know, it is the first time
it was used there. In Iowa, we have had--I have got actually a
couple of examples for Iowa itself, 15 of 40 offers of in-kind
goods were accepted, including one single carpeting offer, for
example, worth $200,000.
In addition to that, a transportation offer, or
transportation need was fulfilled that was worth $10,000 to
transport the carpeting. I think it is a good example of
bringing the need and the donors together through that process
with Aidmatrix in Iowa.
Overall, we are still using it, we have utilized it since
last year with the California wildfires and have had a lot of
positive feedback and will continue to review and revise it as
necessary as we use it.
Mr. Dent. So you thought it was effective in moving the
goods and volunteers to appropriate locations?
Mr. Dent. Yes, sir, and in tracking them, and this way it
ensures the proper and effective utilization. I think it has
been effective, sir.
Mr. Dent. Have you identified any revisions or upgrades to
the Aidmatrix system that should be made to improve its
utilization or effectiveness?
Mr. Castillo. Well, the system is very robust. It is web-
based and it allows access from different levels. I think part
of what we are seeing is that, one, the need to get it out and
increase and continue our outreach to other States that can be
part of it and sign on to the system as well, as well as we
have revised some of the training courses that we have provided
at the State level. We have already conducted some of those
courses. We also want to expand that to the local level for
their use.
Mr. Dent. Mr. Smith, in the aftermath of Hurricane Katrina,
as you know, FEMA was heavily criticized for its disaster
management, including its logistic operations.
What systems, if any, did FEMA have in place prior to
Hurricane Katrina to record, track, store and transport both
purchased and donated goods?
Mr. Smith. Unfortunately, Congressman, FEMA did not have
any systems in place to track commodities or donated goods.
That is, in fact, why we created the Logistics Management
Directorate to look at a wide range of supply chain processes
and procedures to put those in place to make sure that we
didn't repeat those--the mistakes that, you know, that were as
a result of Katrina.
Mr. Dent. Then I guess my follow-up, I guess what I was
going to ask you was what the level of coordination was that
took place between FEMA and the affected States prior and
during Katrina regarding commodity and donations management.
Were there many, and how is it different today?
Mr. Smith. Primarily in the past it was a reactive process,
where we worked through our region headquarters to work with
the States. But, today, FEMA headquarters with the Logistics
Management Directorate, particularly in the logistics area,
have taken a more proactive role.
We plan with them on a daily basis, have outreach programs
where we work with them to try to understand their needs and to
meet their needs ahead of time. So when the time comes we are,
in fact, just executing what we have in plan.
Mr. Dent. Mr. Brasseux, once a Federal agency determines
that it has surplus property, it notifies the GSA and provides
an accounting of the surplus items. GSA then notifies other
Federal agencies of the items available. Through a screening
process that typically lasts 21 days, Federal agencies may
select items on a first come-first serve basis.
How does a Federal agency determine that a surplus property
is ready for disposal to the GSA?
Mr. Brasseux. It is up to each and every Federal agency
based on their needs and their usage of what they have. They
may make a determination that that property is excess to them.
They then notify GSA, and then we begin a process of disposal.
Mr. Dent. Who at the Federal agency determines what
property is surplus and what is not?
Mr. Brasseux. Well, it can be a variety of different areas,
depending. It is the agency head or their designee, and it can
be a variety of different levels depending on their agency.
Mr. Dent. I yield back.
Mr. Cuellar. Thank you, Mr. Dent, for your questions.
At this time I recognize for 5 minutes Senator Landrieu.
Senator Landrieu. Thank you very much. I would like to
direct my question to whoever was responsible for responding to
the story that broke on June 11 about the misplaced or given
away--we will determine what that was--supplies. Mr. Castillo,
was it you, or was it you, Mr. Smith, that was a designated
person within FEMA to try to ascertain if $85 million worth of
items was truly given away or misplaced, or was it $18 million
and how did it happen? Which one of you is designated as the
point person?
Mr. Smith. Madam Chairwoman, I am.
Senator Landrieu. Okay. Let me ask you a few questions
about what you discovered. Did the FEMA regional office contact
the FEMA transitional office, recovery office in New Orleans
about these supplies, to your knowledge, and the answer is yes
or no, before the items were designated as surplus? Did the
regional office contact the FEMA transitional office in New
Orleans about the existence of these supplies before they
designated them as surplus?
Mr. Smith. Not that I am aware of.
Senator Landrieu. Did anyone in FEMA contact, to your
knowledge, the Louisiana Recovery Authority, the State's
principal recovery agency, about these supplies?
Mr. Smith. Not that I am aware of.
Senator Landrieu. Did anybody at FEMA contact the Louisiana
Family Recovery Corps, which had been designated by the State
as the official agency to coordinate assistance to disaster
systems, with the supply?
Mr. Smith. Not that I am aware of.
Senator Landrieu. Did anyone at FEMA contact the Louisiana
voluntary organizations active in disaster, which is the
coordinating role that all the nonprofits in Louisiana have
organized themselves into so that they can be coordinated, did
anybody from FEMA contact them?
Mr. Smith. Not that I am aware of.
Senator Landrieu. Okay. So my question is, then, since no
one from FEMA contacted anybody, even yourselves, you didn't
contact your regional office, you didn't contact the State
office, you didn't contact the nonprofit, how did you determine
that these items were not needed?
Mr. Smith. From a logistics standpoint, when we have
commodities in our inventory, we base the use of them, the
utilization on demands. If we don't have demands on that,
nobody asks for them, we have no requisitions for them, we
determine if there is an ongoing need to keep them. When we
didn't have demands for these items, we went through the
process of following the Federal regulation.
Senator Landrieu. Well, let me ask you something, if I
could: How can people ask for something they don't know exists?
Mr. Smith. They have to have a need. If they developed a
need, that they have a bona fide need, it is their
responsibility to pass that need on.
Senator Landrieu. Well, you might reach that conclusion,
but I am not willing to reach that conclusion. In fact, I
actually have a letter from our State I would like to submit to
the record. Interestingly, it was dated February 7, which is
addressed to Mr. Stark, signed by Mr. Rainwater, who will
testify today.
It is very clear in this letter, which is lengthy, so I
will not read it, but the operative paragraph is that they are
asking for assistance to the 6,000 households that have been in
trailers that are now moving from trailers at the order of FEMA
into other places to live.
The letter goes on to say that not only will these
households need to have a physical structure to live in, a
rental unit, house or something, an apartment, but they are
also going to need household establishment funds, and they
actually requested $6 million toward this. This is an
additional request that came to Mr. Stark in February, I guess
around the same time that you all were determining that no one
needed the items.
So I would like to submit this letter for the record.
Mr. Cuellar. The letter is admitted into the record,
without objection.
[The information referred to follows:]
Senator Landrieu. Again, I would also like to ask to you,
Mr. Brasseux, with the GSA, Mr. Rainwater's statement submitted
to this committee says the record indicates that when GSA
contacted the State of Louisiana Surplus Property Agency, as
being at Ft. Worth for property screening, as you testified on
the 13th and 14th, but it did not indicate that the surplus
goods that were invited for people to screen were originally
intended for Gulf Coast hurricane recovery victims.
Did anyone at GSA, to your knowledge, indicate to the State
that these supplies that were now at Ft. Worth were previously
identified as hurricane relief items?
Mr. Brasseux. No, not to my knowledge. They were
identified----
Senator Landrieu. Hold on. So your agency called the State
and said there were some items, unidentified items, and if they
had time on their schedule they could come to Ft. Worth and
look. At no time, do you know, was the State of Louisiana told
that these were previously designated for hurricane survivors?
Mr. Brasseux. They were told that they were household items
that would include towels--dish, hand, bath--sheets, pillows,
coffee makers, sandals, dinnerware, et cetera.
Senator Landrieu. So the items were described.
Mr. Brasseux. They were described to some extent, but it
was not indicated that they were for hurricane.
Senator Landrieu. Well, I would suggest that the system
that FEMA is currently using--which is, unless somebody is
knocking down your door screaming for supplies, you don't have
any obligation to reach out to the States that you are created
to serve, or to at least partner with in an emergency--is
wholly insufficient, Mr. Smith.
In addition, I can claim that they did request at least $6
million of the $18 million that you all gave away. So I am
going find out where this letter went, who responded and who
hasn't.
The final question I want to get in for the record, because
my time is up, I wrote a letter to Secretary Paulson--let's
see--on June 12. I asked him--in an attempt to get to the
bottom of this, I requested his assistance in returning any of
the supplies back to the States of Louisiana and Mississippi:
``Would you provide my office with an inventory of anything
that you currently had so maybe we could help you?''
The response I got was: We will work with you and your
staff to ensure visibility into the distributed supplies, as
well as any remaining in storage. But I have yet to receive any
kind of inventory list.
Do you have something available now to submit to this
committee, any kind of list that we could look at, to see what
you have in storage that was originally purchased on behalf of
victims or survivors of these storms that we could look at and
see if we can help you place them in appropriate places?
Mr. Smith. Madam Chairwoman, I mentioned in my earlier
statement that we learn from our mistakes, and we will fix it.
What I described to you earlier is what happened during
this current incident when we excessed supplies. We have since
learned from that. We will now notify the LTROs, Mississippi
and Louisiana, any of the offices out there that still have
case workers for eligible applicants to let them know whenever
we have additional supplies that are available for them. So we
will give them notice prior to going through the proper
process, to get it into their hands.
Senator Landrieu. It is not just notice--I want to finalize
this--it is not just notice to them. It is your own due
diligence to determine whether something is a surplus or not. A
surplus, by definition, is something that is not needed; it,
therefore, becomes a surplus.
But you didn't even make one phone call to anyone to
determine if they were needed or not. You just declared
surplus, turned it over to Mr. Brasseux and then he operated
under the technical application of the law. But what that did
was, it left out thousands of families that are still in need.
My time is up.
Mr. Cuellar. Thank you, Senator. At this time I would to
recognize for 5 minutes the Chairman, Mr. Thompson, from
Mississippi.
Mr. Thompson. Thank you very much, Mr. Chairman.
Mr. Smith, can you provide this committee with any written
policy by which you operate and determine whether or not goods
are to be surplused?
Mr. Smith. We are in the process of developing those
processes and procedures right now. As you are well aware, the
FEMA logistics directorate is just a little over a year old,
and as these incidents like this come up, we do aggressively
attack them and figure out how to best execute against them. So
in the process--we are in the process of developing our
procedures for excessing supplies.
I would like to also----
Mr. Thompson. Well, I only have so much time. So as of this
hearing there is no written policy or governance for the excess
and the surplusing of donated goods and supplies?
Mr. Smith. Yes, there is. The Federal Management
Regulation, that is the regulation that we use.
Mr. Thompson. I understand that. That is not the FEMA
regulation; that is the GSA regulation. But you should have an
operating policy by which you make that determination.
Mr. Smith. Yes. And now----
Mr. Thompson. And you don't have it?
Mr. Smith. I will take that question for the record and get
back to you. Because I know we have to make a determination
whether supplies are excessed to our needs before we can
actually turn it over to GSA for excess. I will have to get
that for you in our property accountability records.
Mr. Thompson. Do you have a method of determining whether
or not outreach has taken place to nonprofits and eligible
individuals who should receive donated supplies?
Mr. Smith. No, Mr. Chairman. That is not my responsibility,
that is not my area of expertise; that is an assistance area
for outreach.
Mr. Thompson. Well, that is fine.
Mr. Castillo.
Mr. Castillo. Yes, sir. Specifically, in Louisiana and
Mississippi, we work with our voluntary agency liaisons that
participate on the long-term recovery committees in both
States.
In addition, all of the--for instance, Louisiana was
brought up. The case managers that are working with the folks
that are still in mobile homes and temporary housing units
that--we work closely with them to identify their needs; and
they are told regularly, once there--as was mentioned before,
the living kits. As people transition from a temporary housing
unit into a rental unit or another home, then we provide them
with that, with those supplies.
Mr. Thompson. So your testimony is that, to your knowledge,
there are not any Katrina survivors who could have benefited
from any of these donated items that had been surplused because
the outreach effort of FEMA was so robust that you covered the
waterfront?
Mr. Castillo. I didn't actually say that, sir.
I can tell you that the victims that are eligible
applicants, households that are eligible applicants, I feel
comfortable we have a good outreach, a good coordination with
them through our Gulf Coast and our long--or Louisiana
Transitional Recovery Office. I feel confident that those
people who are still--are eligible applicants have been reached
out to and have been coordinated.
Now, part of what, you know, and I think was mentioned in
the testimony--just to repeat--what we have, when it is
disaster relief, purchased goods and supplies for hurricane or
disaster victims in that area, that is who we focus on.
There were--part of what is under discussion here is part
of what has been in supplies and goods was purchased by the
Federal Government, part was donated goods.
Mr. Thompson. Well, and I am glad you mentioned that
because you also said that there was no policy in place to
distinguish between the two in your testimony; am I correct?
Mr. Castillo. Well, there is no--to manage those two, and
primarily to manage the donations, the purchased--the DRF, the
Disaster Relief Fund, purchased supplies. That is what Mr.
Smith's directorate was established to manage.
The challenge was donated goods that come in.
Mr. Thompson. So you don't have it?
Mr. Castillo. We didn't at the time. To manage----
Mr. Thompson. You do now?
Mr. Castillo. Well, sir, for managing and helping track
donated goods through a matrix being a State resource that we
have provided allows them to request, to track and to allow it
to distribute and tracking those donated goods at the State
level.
Mr. Thompson. Well, I guess part of what we are trying to
do is that if we provided information to you that there are
still people who could benefit from those goods that have been
surplused, I mean, what should we do?
Mr. Castillo. Well, sir, we have taken that. If there are
victims--working through the VOAD, the national VOADs and the
State VOADs, I think that is a good way to get that word out. I
understand that there is a process in place that the States
have mentioned here that are able to coordinate that.
As I said, what we outreached to, and what we have I
believe is a good handle on, is the people who are still
applicants under FEMA's responsibility.
Mr. Thompson. Well, and I guess for the record we will
submit some additional questions, because I think we will hear
from some people on the next panel who have been actively
involved in working with Katrina victims, who will say they
still are not aware of this system you have just explained.
I think part of what we are trying to get at as a committee
is to make these services and goods, whether they are purchased
or donated, available to the people for which they are
intended. That is one of the things we are trying to establish.
Also, for the record, I want to say that, Mr. Smith,
Congress in its wisdom exactly separated part of the function
that you do now in the reorganization of FEMA because we saw
the very problem you are dealing with right now. Logistics is a
nightmare, and that is why we specifically mandated the
logistics and coordination function to be separated. Obviously
we still have to have some work going forward to be done for it
to be effective.
Thank you, Mr. Chairman.
Mr. Cuellar. Yes, sir.
Before I move on to Mr. Etheridge, a quick question. How
much time do you need to get the policy--if you do have a
policy--I think the Chairman had requested? I want to make sure
we don't let this go on for too long in the future.
Mr. Smith. We have a revised property management regulation
that we have right now. I just need to go back and look at it
to make sure that our excess process is covered in that manual.
I am pretty sure it is.
Mr. Cuellar. Five working days from today?
Mr. Smith. Yes, Mr. Chairman.
Mr. Cuellar. So no later than 5 working days--if you can,
of course, sooner--submit it for the committee.
At this time, I would like to recognize the gentleman from
North Carolina, Mr. Etheridge, for 5 minutes.
Mr. Etheridge. Thank you, Mr. Chairman. Thank you for
holding this hearing.
You know, in your response, Mr. Smith, to Senator Landrieu,
I couldn't help but think--and the Chairman's response just now
of separating logistics from operations, et cetera--we used to
have a FEMA that worked. I do remember that. I remember we had
a horrible flood in North Carolina called Flora.
We have lots of hurricanes. North Carolina sort of has that
reputation; we sort of stick out there. We watch weather in
hurricane season, because normally when it dials 911, it sort
of heads our way.
But they responded. I recognize that Katrina and Rita were
substantial hurricanes, but here we are now almost 3 years
after, over 3 years after it happened, and we are trying to
figure out what is happening to stuff people have donated. It
really bothers me, and I am sure people are really concerned
about whether we can respond to something else.
That leads me to a couple of questions because I think
there are a lot of people in this country and around the world
who are good-hearted people; they want to help others. But we
sure have left a blotch when they want to help again if we
can't say to them, we are going to look at the stuff you are
going to send us and it is going to get to the people who
really have a need.
I have been fortunate. I have never been in that situation,
and I hope you haven't. But I have seen a lot of folks sitting
on the curb crying, and the only thing they had left, maybe,
was a family Bible, if they were lucky. The fact that we are
still scrambling to find out why we can't get this done bothers
me greatly, because people, when in an emergency, they want to
help.
Mr. Smith, my question to you is, what steps has your
directorate taken to ensure that there will be sufficient
amounts of commodities available for victims should another
major catastrophic event happen?
No. 2, can you or Mr. Castillo reassure the public that
next time they want to help out in a disaster that their
efforts will not go in vain; and we won't be here again talking
about stuff that is in a warehouse that didn't get there and
then we are trying to figure out what happened to it? Because I
am concerned about what happened in the past, but I am really
concerned about what is going to happen in the future.
I don't need 5 minutes. I just need about 30 seconds, yes
or no.
Mr. Smith. Yes.
Well, first of all, recent incidents that we supported, the
Midwest floods, a hurricane in Texas, are a testament to the
fact that we can deliver when we have to. We delivered over 6
million liters of water to the Midwest floods, over 200,000
meals, and so on and so on. We simultaneously supported eight
States at one time, and then for a period of time we also added
California in there for the fires.
So the issue that we are talking about today are decisions
or issues that happened in Katrina.
Mr. Etheridge. So you are telling me, we aren't going to be
revisiting this again in the future?
Mr. Smith. No, sir, not as long as I am there we won't.
Mr. Castillo. Sir, on the second part of your question, as
long as I have been involved in emergency response, I have
learned from responses here and internationally that donated
goods or unsolicited volunteers, if not managed, if not
coordinated and understood, adds to the problem.
I believe when people, as you said, good-hearted people
that want to donate supplies and want to give to help out--if
they are explained what is appropriate to donate and what is
actually needed, because what they want to know is that what
they have given or what they want to give will get to the
people that need it.
I believe what we have put in place since Katrina,
especially with Aidmatrix, to help the States coordinate that
so that they can ask for----
Mr. Etheridge. So you are telling me you have that taken
care of?
Mr. Castillo. I believe so, sir.
Mr. Etheridge. All right. I am running out of time.
Mr. Brasseux, the committee staff was told us that GSA
needed to terminate the lease with FEMA expeditiously because
warehouses were not up to Federal codes and standards, which
may have led FEMA to hastily declare the goods stored in
excess.
Two questions: What is the current status of the warehouses
that FEMA leased? No. 2, have the warehouses been destroyed,
upgraded or serviced since the surplus property was removed
from those warehouses?
Mr. Brasseux. Sir, I believe you are talking about the
additional warehouse space that FEMA requested in our Fort
Worth area. We have provided five additional warehouses at
approximately 240,000 square feet each for FEMA to use. The
initial agreement was, they needed to be out of those by
September 7. At the time, I believe FEMA actually considered
even purchasing some of those warehouses----so we continue to
grant extensions----and they actually moved out on April 8.
I am not aware of any issues with the buildings themselves.
That is our Public Building Service, but I can certainly take
that question and get back to you.
Mr. Etheridge. Would you please?
Mr. Brasseux. I certainly will.
Mr. Etheridge. Thank you.
Thank you, Mr. Chairman. I yield back.
Mr. Cuellar. At this time, I would like to recognize the
gentlewoman from Texas, Ms. Jackson Lee, for 5 minutes.
Ms. Jackson Lee. Mr. Chairman, let me thank you for your
courtesies, that of the Ranking Member of a subcommittee of the
House Homeland Security Committee. Let me thank my dear friend,
Senator Landrieu, for her persistence in leading on what has to
be characterized as a major historic tragedy in America.
I thank my Chairman, who has been a consistent champion, a
General, on methodically discovering the fractures on both
Homeland Security as it relates to the war on terror, but also
the needs of the people of this country.
I just, gentlemen, want to characterize that I think
America looks to the Federal Government in time of need. The
world looks to us as the Good Samaritan, the Red Cross when it
does right, the knight in shining armor, the Boy and Girl
Scouts, and first responders all wrapped up into one. For those
of us who were early into the Gulf region after the
catastrophic event of Hurricane Katrina and, of course,
subsequently Hurricane Rita, which impacted my community in
Houston, we saw not only the devastation but the pain.
So my first question is to Mr. Castillo and Mr. Smith. When
did you come to FEMA?
Mr. Castillo. I started FEMA July 2, 2007.
Ms. Jackson Lee. After Hurricane Katrina?
Mr. Castillo. Yes, ma'am.
Mr. Smith. April 2, 2007.
Ms. Jackson Lee. Well, gentlemen I walked along the Gulf
Coast in a big tent and saw people that had absolutely nothing.
I went back and I went back, and they were still in that tent
and they were eating out of soup kitchens; and they had
absolutely nothing.
I walked in the Astrodome where people were on cots and
they had, as I think my colleagues have said, maybe a Bible,
and clothing that had been given to them by others.
So let me just say to you that I will focus questioning,
because there are many of us who see this globally. But like
me, we lived this, whether it was Galveston in the early
1900's, where 6,000 died, or whether it was a series of
incidents here.
So let me ask you this: Do we still have these goods left
over? Do you still have goods left over?
Mr. Smith.
Mr. Smith. We are in the process of cataloging what we
have, and we think that may be donated goods for hurricane
victims.
Ms. Jackson Lee. What about goods that were bought with our
tax dollars?
Mr. Smith. That is our dilemma, ma'am. They are all
commingled.
Ms. Jackson Lee. I understand. But there are goods
somewhere? You can say, yes, that they exist?
Mr. Smith. Yes.
Ms. Jackson Lee. Do you have a national utilization office?
Mr. Smith. Yes.
Ms. Jackson Lee. How old is that office?
Mr. Smith. It predates me.
Ms. Jackson Lee. But does it predate Katrina?
Mr. Smith. I believe so.
Ms. Jackson Lee. So, in essence, they were derelict in
their duty, and they did nothing; because if they existed, the
responsibility is to develop a process for dealing with surplus
goods. So they obviously didn't function.
Are you revising them?
Mr. Smith. Yes.
Ms. Jackson Lee. They will be under your shop?
Mr. Smith. We just had that conversation this morning,
ma'am. My recommendation is that it is under my shop.
Ms. Jackson Lee. Well, you have been doing very well here
today, and we hope that maybe you will get that opportunity.
So do we know whether these goods are good or spoiled,
meaning, are they usable goods or have they gotten soiled,
spoiled--they have gotten mold on them?
Mr. Smith. That is a process that we are undergoing right
now, whether they are usable goods.
Ms. Jackson Lee. I would like that information. I would
also like if you would be able to give us a cost estimate of
how much those goods might be worth on the market.
If I may just finish, can you tell me the role that you
will be playing in reaching out to States and nonprofit
organizations regarding what is left, so that we can ensure
that remaining survivors that exist can get these goods? What
will you be doing to get goods to the needy?
Mr. Smith. My role would be to ensure that the States who
are the point of contact for the people that need them
understand what we have and what is available for them. I will
work through the recovery officers in each one of the States to
make sure that they talk to their State counterparts.
Ms. Jackson Lee. All right.
Let me quickly say, what were the factors considered when
deciding to classify donated goods or surplus? Do we have any
process for that?
Mr. Smith. Yes, ma'am. They are what we call ``initial
response resources.'' There are about seven items that we carry
on a regular basis for response. If they are outside of that,
those items, then for the most part we determined they may be
donated items. Because there were clothing, things like that;
we don't carry that type of stuff.
Ms. Jackson Lee. So you would know they were donated.
Let me just read into the record what I think the problem
is, on behalf of the committee. When the Secretary was asked--
Secretary Chertoff was asked about FEMA's logistical
shortcomings, he testified these words, that ``FEMA's logistics
systems simply were not up to the task.''
Let me acknowledge the great work of FEMA employees all
over this country, and congratulations on these immediate
issues of Iowa and other places that you have had and thank
your administrator, Mr. Paulson. There is a difference of night
and day.
But what I would say to the committee, and what I believe
is the crux of the problem--and I would like Mr. Smith and Mr.
Castillo to comment, because Mr. Brasseux has already commented
that he doesn't have any more warehouse issues to deal with
right at this point.
The point is that I think it is broken. Your answer was, I
want to deal with the State in order for them to handle the
issue. I guess Governors take pride in you dealing with them. I
frankly believe that is a broken system, and I would commend to
this committee that we need legislation to reorder the
structuring of the distribution of aid to the needy. Because
every State government that has gotten this distribution gets
an F, particularly in Hurricane Katrina.
For you to say to me that I am going to get with the State,
then all I can see is a warehouse with mold and animal
droppings over goods; and human beings that need pots and soap
and all of that not there.
So let me try to find out, how do you leap over the
bureaucracy of a State government to get aid to people who are
in need--for example, if they existed today? I end on that
question.
Mr. Smith. I don't know if I can actually answer that
question, because it is engrained in the Stafford Act. The
Stafford Act says we provide--the State is our customer under
disaster response, and I have to respond to the needs of the
Governor who is responsible for his citizens.
Ms. Jackson Lee. So you are saying there are no emergency
conditions where you can work to get immediately to the victims
as far as you know?
Would you look and determine that, please, for me, as far
as you know?
Mr. Smith. Well, under the Stafford Act, under a declared
disaster, yes, we get it directly to the victims under a
Presidential declared disaster.
Ms. Jackson Lee. All right. So you are saying--you are
constrained by the Stafford Act, you are saying, when there is
a declaration of disaster? That is what I am asking.
Do you have a way of going around that?
Mr. Smith. During the disaster, under the declaration, we
can provide assistance to any citizens that are affected by
disaster.
Ms. Jackson Lee. As a disaster is ongoing?
Mr. Smith. Yes, ma'am.
But we are talking about recovery, these donated items now.
How do we get, in a long-time recovery period, how do we then
do that?
Ms. Jackson Lee. So there is a timing question of how long
we have the declaration of disaster and when we start recovery.
Mr. Castillo, is that the same answer you would give?
Mr. Castillo. Well, ma'am, from my perspective, in disaster
assistance, we do work with the States. I believe what our
approach to help facilitate them, improving, when needed, their
distribution and their tracking and receipt and request of
needed goods, I believe that is a positive step that has been
undertaken since Katrina.
Ms. Jackson Lee. But you don't know right now whether you
have any spoiled goods? You don't have an accounting of
spoiled, soiled goods or good goods?
Mr. Smith. I have that.
No, we don't have any spoiled goods in my inventory.
Ms. Jackson Lee. You know that for a fact.
Mr. Smith. Yes, ma'am, I know that for a fact.
Ms. Jackson Lee. Let me just thank the Chairwoman and
certainly these witnesses; and, Mr. Chairman, your courtesies
of me being on this committee.
I think we said it over and over again that there needs to
be a revisiting of this question of aid, declaration of
disaster going through the recovery period. I think there are
spoiled goods. I respect the gentleman.
I think there are people that did not get aid. I respect
the comments of the gentleman.
I do think that America can do better. This is clearly not
acceptable on behalf of the American people.
I want to thank both of you, and I yield back.
Mr. Cuellar. Thank you. I think you bring some great
questions and some insight. We thank you for the work that you
have done, Ms. Jackson Lee.
At this time I recognize Senator Landrieu.
Senator Landrieu. I just have one follow-up question.
But before the Congresswoman leaves, I just wanted to
recall again--and I can appreciate her comments about sometimes
our States have not acted with the dispatch necessary to reach
communities, individuals, neighborhoods, communities on the
ground; I think our States are getting better at that.
But I just want, for the record, that our State, Louisiana,
actually requested these household goods in February before
they were designated as surplus in exactly an attempt to
supplement aid to families transitioning out of trailers.
So our State had acted; and the question to me is, why
didn't anyone respond to this letter?
So we are going to submit this for the record. Hopefully,
they will tell us. But I can appreciate your comment.
Ms. Jackson Lee. If the gentlelady would yield, let me say
that my comments were global. I thank you for having that
letter placed on the record.
I do think we should find a way to complement the States,
to help the States, and to give FEMA the opportunity to go
straight to the victim if necessary in complement with a State
and with a State's request.
I thank the gentlelady. I yield back.
Senator Landrieu. Well, I appreciate that.
My last question: Mr. Castillo, I was very interested in
not just what you said, but how you said----and I want to
paraphrase. You said something like: Sometimes, or many, many
times, I think you said, unsolicited donations can be more of a
problem than a benefit. I think I understand what you are
saying.
But my question is, what have you done since you have been
in your office to lessen the problems associated with
unsolicited items; and how do you intend to coordinate that in
the future?
In other words, a disaster happens. It is terrible. There
is a natural outpouring of support on behalf of the United
States and the world. So just give us a minute of what your
thoughts are.
Are you going to issue a dictate that says, don't send
anything; or are you going to say, if you send something, send
X, Y and Z? What are some of your ideas about that?
Mr. Castillo. Well, first of all, it is always recommended
if people want to help that they provide cash donations
whenever possible. This way, cash donations to established
organizations that do this work all the time know what is
needed, how it is best packaged, shipped and distributed.
Second, although we would never say, ``Don't send'', I
think if it is focused on the need, and that is, one--as
Aidmatrix has been established, and already we have 23 States
and one large city that is part of this network. I think that
is a way forward to ensure that, one, when the State identifies
a need--and we will help them with that in this partnership,
once they have identified the need--then, as that is
transmitted and people want to know what to give, if they are
told exactly what is needed, then it ties or it brings together
the donor with a recipient.
I think those two things are key in moving forward.
Senator Landrieu. I would not disagree that sometimes cash
is better to receive. But I hope that this Government is not
moving toward throwing our hands up, because we can't seem to
manage donated items well, to just assume that we don't want
donated items because we can't seem to manage them well in a
disaster.
The second thing I will note--I am not sure the Chairman is
aware of this--but in our situation when the city of New
Orleans was virtually destroyed, 80 percent of it, so were--
most of the nonprofit groups that operated went out of
business. Their executive directors left because they lost
their houses; their volunteers were in Houston; there was no
more nonprofit community, at least for a while.
The Federal Government has no process right now to lend
them money. It is actually prohibited. So if you are going to
solicit cash from outside sources, it is going to be
interesting to me who you give it to. Because in a catastrophe,
one of the things we have to do is reestablish as quickly as
possible sort of the nonprofit infrastructure so that they can
help the community respond.
It is just a thought. I don't want to pursue it. But
because the last thing we need is for cash to be solicited and
given--let me finish--given to strangers who know nothing about
the communities as we attempt to rebuild them the way the
people that live there actually would like to see them rebuilt.
So we can give a little thought to that.
Mr. Castillo. If I can just clarify.
Mr. Cuellar. Before you respond, Mr. Castillo, I am looking
at the time up here, we have about--less than 4 minutes to head
back. At this time, I am going to go ahead and give the gavel
over to the Senator to take over, and we are going to go out
and vote.
Again, I would ask--I have seen this with other, and I am
going to start making this my policy now--that instead of the
Government officials just walking out, I would ask you to just
stay here and listen a little bit to the other folks; and that
way we can all learn.
So we are going to be stepping out. We will leave this in
the hands of the Senator. We will try to be back as soon as we
finish our six votes.
I want to thank the witnesses--Mr. Smith, Mr. Castillo and
Mr. Brasseux. Of course the other witnesses are here also.
Thank you.
Senator Landrieu [presiding]. Thank you. We will conclude
this panel and ask the other panel to step forward please.
Thank you all very much for your testimony, and we will follow
up.
If the panel would take their seats, I would like to begin
the second panel, please. Our witnesses have already been
introduced.
So at this time I would like to start with Mr. Paul
Rainwater, and ask each of the panelists to summarize their
remarks in the 5 minutes allocated, and then we will open it up
for questions.
Mr. Rainwater.
STATEMENT OF PAUL RAINWATER, EXECUTIVE DIRECTOR, LOUISIANA
RECOVERY AUTHORITY
Mr. Rainwater. Thank you, Madam Chair. It is good to see
you today. Thank you for everything you are doing in Louisiana.
In January, 2008, Governor Bobby Jindal appointed me to
serve as his chief of all recovery matters, effectively giving
me authority and oversight for more than $20 billion worth of
recovery programs in the State with responsibilities ranging
from ensuring that local governments can rebuild lost
infrastructure to addressing our housing crisis head on.
One of Governor Jindal's first actions was to name me as
the authorized representative to the Federal Emergency
Management Agency for all issues relating to Hurricanes Katrina
and Rita, a role previously held by the head of the Governor's
Office of Homeland Security Emergency Preparedness. By giving
me this authority, he also designated one clear contact for all
recovery issues so there would be no confusion with local,
State and Federal officials as to who was in charge.
I have direct control over each of our programs with the
ability to make changes as necessary, and have the full support
of the Governor in doing so.
Louisiana has worked diligently to improve its relationship
with FEMA. At the beginning of the Jindal administration, we
worked to reset our relationship with FEMA senior management.
The miscommunication we are speaking of today is unfortunate,
but we do not seek to cast fault on Jim Stark or Harvey Johnson
from FEMA. I feel as though they are committed to helping our
State recover from those catastrophes, but we have got to find
a way to cut through the red tape.
Today's discussion has larger implications on the need for
clear communications in response to and recovery from disasters
and is relevant not only in Louisiana and Mississippi, but all
across the Nation.
To speak to the matter that FEMA surplused supplies, I want
to make it crystal clear, I never received any notice, formal
or otherwise, of these supplies that sat in a warehouse in
Texas for 2 years. Further, we have not been able to locate any
notice from FEMA to the Governor's authorized representative
under the previous administration. Had I known about these
supplies, I would have moved quickly to put them to good use.
There should be no doubt in anyone's mind about the unmet
needs in Louisiana. At the time, hundreds of people were living
in a homeless camp under the interstate in New Orleans and
thousands of people were living in FEMA trailers. A simple look
outside would have shown immense struggling and poverty in
hurricane-affected areas across our State.
In fact, less than 1 month into my office at the Louisiana
Recovery Authority, we requested in writing to FEMA's
Transitional Recovery Office, ``household establishment funds
for 4,000 households.''
``In addition to case management assistance, many trailer
residents require a jump start in order to transition to a new
and sustainable housing. The working families who lost
everything they owned during the storms will be postponed to
sustain their housing situation with a little assistance at the
beginning of the process.'' That ended the quote in the letter.
It is clear that this letter did not make it into the hands
of those at FEMA who had knowledge of the now-surplused
supplies, just as the Federal notice of the surplused property
did not come to those whose sole task was to work daily to move
our recovery forward, like myself.
There is plenty of blame to share in the situation. It is
only through working together as partners that Federal and
State agencies can serve our people to our fullest potential.
The issue of the lost supplies is just the latest example
of how regular disaster response and recovery protocols just do
not fit as we attempt to rebuild after the catastrophic events
such as Hurricane Katrina and Rita. State and Federal officials
need recovery protocols with intuition and flexibility.
My staff and I speak to FEMA staffers both locally at
headquarters multiple times each day. That there would be a
lack of coordination about these supplies after these daily
conversations is hard to understand.
What is troubling to me is that the State would have never
known about these supplies if CNN had not reported on the
issue. It is unfortunate it took a national media attention to
alert us to a gap in our State response.
It has been reported that Louisiana turned down these
supplies because we said it did not have these kinds of needs.
For the purpose of clarification, I have provided today e-mails
that served as a notice from the General Services
Administration to the Louisiana Federal Property Assistance
Agency, which is a small State agency of only nine employees
that helps local government entities and nonprofits access the
myriad of supply Federal agencies mark as surplus.
This notice was hardly unique. None of the e-mails ever
notified the State that these supplies were meant for Katrina
and Rita victims, nor do they offer supplies to Louisiana.
What the Louisiana Federal Property Assistance Agency is
accused of turning down was not actual goods, it was the chance
to go to Texas for a 2-day screening of goods where we would
have stood after Federal agencies had picked their supplies
with 16 other agencies to sift through what was left and to
have the supplies divided among the States.
This was hardly a guarantee of aid. Nevertheless, the State
was notified, however bureaucratically, that household supplies
were available. Our own lack of coordination between State
agencies caused us to miss out on these goods that we need to
serve our citizens.
Make no mistake, Louisiana should not have turned down the
chance to bring these supplies back to the State. It is
regrettable that we were not fully synced in State government
at the time and that all the necessary recovery level
organizations didn't know that the small agency that was
dealing with these surplus goods could be the recipient of
items intended to help hurricane victims in New Orleans and
across south Louisiana.
But we have begun remedying that situation. The day that
the news broke and the unfortunate communication breakdown was
reported by CNN, we began to coordinate our agencies. After it
was made public that the supplies intended for Katrina and Rita
victims had been surplused and given to other States, Governor
Jindal tasked me with leading our efforts to locate supplies
for nonprofits. Louisiana made a public request that States and
organizations return any of these goods that were intended to
help disaster victims in Louisiana, but were marked as surplus
and remained unused.
As it stands now, Texas, Arkansas and the United States
Postal Service have returned surplus supplies to Louisiana. We
thank them for their generosity and especially thank the Postal
Service for transporting these supplies to Louisiana at no cost
to us.
We have been fortunate to use funds from a private
foundation, the Louisiana Disaster Recovery Foundation, to help
cover some of the shipping costs we have incurred thus far with
Acadiana Outreach covering its own freight payments, costs that
the State would not have shouldered had the supplies made it to
us under the typical FEMA protocols. We ask any State agencies
that have not used their surplus goods to consider sending them
to us in Louisiana. I can attest to the fact that we will put
them to good use.
Working together with you, Senator Landrieu, and the
Louisiana Federal Property Assistance Agency, we have moved
quickly to return the supplies to those who need it. In fact,
we ramped up so quickly that it took only a week from the date
that the first CNN report ran to get the first round of
supplies delivered to Unity of Greater New Orleans, a nonprofit
that deserves much credit for its heroic efforts to eradicate
homelessness in the city.
Senator Landrieu. Can you try to wrap up, please?
Mr. Rainwater. Yes, ma'am, I sure will.
In conclusion, we seek not to point fingers, but to help
people improve their lives and living conditions. This
discussion is important, not only to those of us in Louisiana
and Mississippi, but also the leaders in the Midwest who are
struggling to recover from devastating flooding. It will mean
something to leaders in the next States to be affected by
disasters. Thank you.
Senator Landrieu. Thank you, Mr. Rainwater.
[The statement of Mr. Rainwater follows:]
Prepared Statement of Paul Rainwater
July 31, 2008
Good morning Madam Chair, Mister Chairman and Members of the
committee. I am Paul Rainwater, the Executive Director of the Louisiana
Recovery Authority and the leader of the Office of Community
Development's disaster recovery programs in the State of Louisiana. In
January 2008, Governor Bobby Jindal appointed me to serve as his chief
of all recovery matters, effectively giving me authority and oversight
for more than $20 billion worth of recovery programs in the State with
responsibilities ranging from ensuring that local governments can
rebuild lost infrastructure to addressing our housing crisis head on.
One of Governor Jindal's first actions was to name me as his
authorized representative to the Federal Emergency Management Agency
(FEMA) for all issues relating to Hurricanes Katrina and Rita, a role
previously held by the head of the Governor's Office of Homeland
Security and Emergency Preparedness (GOHSEP). In doing this, Governor
Jindal acknowledged the challenges we still face in Louisiana. On one
hand we are still recovering from Hurricane Katrina, the worst natural
disaster in American history, which was exacerbated by the failure of
the Federal levee system and further worsened by Hurricane Rita 3 weeks
later. On the other, we must aggressively prepare for future storms and
disasters.
By giving me this authority, he also designated one clear contact
for all recovery issues so there would be no confusion with local,
State and Federal officials as to who was in charge. Whereas the
previous administration delegated policy and planning issues to the
Louisiana Recovery Authority and gave oversight and implementation of
other programs to various State agencies including GOHSEP, I now have
direct control over each of our programs with the ability to make
changes as necessary and have the full support of the Governor in doing
so.
Louisiana has worked diligently to improve its relationship with
FEMA. At the beginning of the Jindal administration we worked to
``reset'' our relationship with FEMA. The miscommunication we are
speaking of today as unfortunate, but we do not seek to cast blame on
Jim Stark and Harvey Johnson from FEMA. I know that they are committed
to helping our State recover from this catastrophe. Today's discussion
has larger implications on the need for clear communication during
response to and recovery from disasters and is relevant not only in
Louisiana and Mississippi, but all across our Nation.
To speak to the matter of the FEMA surplus supplies being discussed
today, I want to make it crystal clear--I never received any notice,
formal or otherwise, of these supplies that sat in a warehouse in Texas
for 2 years. Nor did my predecessor at the LRA. Further, we have not
been able to locate any notice from FEMA to the Governor's Authorized
Representative under the previous administration.
Had I known about these supplies, I would have moved to quickly put
them to good use. I reject the notion that it is not clear that we had
unmet needs in Louisiana--at the time hundreds of people were living in
an homeless camp under the interstate in New Orleans and thousands of
people were living in FEMA trailers. A simple look outside would have
shown immense struggling and poverty in hurricane-affected areas across
our State.
In fact, less than a month into my service at the LRA, we
requested, in writing to FEMA's Transitional Recovery Office, Household
Establishment Funds (HEF), stating, ``In addition to case management
assistance, many trailer residents require a jumpstart in order to
transition into new and sustainable housing. The working residents who
lost everything they owned during the storms will be positioned to
sustain their housing situation with a little assistance at the
beginning of the process.'' A copy of this letter is attached to my
testimony. It is clear that this letter did not make it into the hands
of those at FEMA who had knowledge of the now-surplused supplies, just
as the Federal notice of the surplus property did not come to those of
us whose sole task is to work daily to move our recovery forward. There
is plenty of blame to share in this situation and it is only through
working together as partners that Federal and State agencies can serve
our people to our fullest potential.
This issue of the ``lost'' supplies is just the latest example of
how regular disaster response and recovery protocols just do not fit in
Louisiana. As we rebuild after catastrophes like Hurricanes Katrina and
Rita, the State needs recovery protocols with intuition and
flexibility. My staff and I speak to FEMA staffers, both locally and at
headquarters, multiple times each day. That there would be a lack of
coordination about these supplies after these daily conversations and
meetings is almost unfathomable. Our staff has committed to working
with FEMA through sometimes difficult discussions and negotiations
about our needs, both in repairing our infrastructure and in restoring
our citizens' lives.
What is most troubling to me is that the State would have never
known about these supplies if CNN had not reported on the issue. These
supplies would be gone and we would have never been notified by FEMA
that tens of thousands of household goods that we desperately need are
no longer available for our use. It is unfortunate that it took
national media attention to alert us to a gap in our State response.
It has been reported that Louisiana turned down these supplies
because we said we did not have these kinds of needs. For the purposes
of clarification, I have attached to this testimony e-mails that served
as notice from the General Services Administration (GSA) to the
Louisiana Federal Property Assistance Agency, which is a small State
agency of only nine employees that helps Government entities and
nonprofits access the myriad of supplies Federal agencies mark as
surplus. This notice was hardly unique, as the agency reports it
receives around 20 each year.
None of these e-mails ever notifies the State that these supplies
were meant for Katrina and Rita victims. Nor do they offer supplies to
Louisiana. What the Louisiana Federal Property Assistance Agency is
accused of turning down was not actual goods. It was the chance to go
to Texas for a 2-day ``screening'' of goods, where we would have stood,
after Federal agencies had picked their supplies on the second day with
16 other States to sift through what was left and then have the
supplies divided among the States. This was hardly a guarantee of aid.
Nevertheless, the State was notified that household supplies were
available and our own lack of coordination between State agencies
caused us to miss out on goods that we need to serve our citizens. Make
no mistake, Louisiana should not have turned down the chance to bring
these supplies back to the State.
It is regrettable that we were not fully synced in State government
in that we at the recovery level didn't know that this small agency
that dealt in surplus goods could be the recipients of items intended
for hurricane victims or that it had access to such household goods.
We began remedying that situation the day the news of this
unfortunate communication breakdown was reported on CNN. After it was
made public that the supplies intended for Katrina and Rita victims had
been surplused and given to other States, Governor Jindal tasked me
with leading our efforts to locate supplies for nonprofits.
The State of Louisiana made a public request that States and
organizations return to Louisiana any of these goods that were intended
to help disaster victims in Louisiana but were marked as surplus and
remain unused.
As it stands now, Texas and Arkansas and the United States Postal
Service have returned surplus supplies to Louisiana. We thank them for
their generosity and we especially thank the Postal Service for
transporting the supplies to Louisiana at no cost to us. We have been
fortunate to use funds from the private Louisiana Disaster Recovery
Foundation to help cover some of the shipping costs we've incurred thus
far with Acadiana Outreach covering its own freight payments--costs
that the State would not have shouldered had the supplies made it to us
under typical FEMA protocols. And we ask any States or agencies that
have not used their surplus goods to consider sending them to us in
Louisiana. I can attest to the fact that we will put them to good use.
Working together with the Division of Administration, United States
Senator Mary Landrieu's office and the Louisiana Federal Property
Assistance Agency, we moved to quickly return the supplies to those who
need them. In fact, we ramped up so quickly that it took us only a week
from the date of the first CNN report to get the first round of
supplies delivered to UNITY of Greater New Orleans, a nonprofit that
deserves much credit for its heroic efforts to eradicate homelessness
in the city. UNITY did not even have time to recruit volunteers to
unload the three truckloads of goods, so volunteers from my staff and
Senator Landrieu's staff did the heavy lifting. In addition, we
recently delivered a truckload of supplies to the Acadiana Outreach
Center, which is serving the often forgotten victims of Hurricane Rita
in Southwest Louisiana.
Moving forward, we made it clear to everyone involved that I am to
be the point of contact for FEMA when supplies for Katrina and Rita
victims are set aside for our State. This should have been the case
from the start, as FEMA should have called the Governor's Authorized
Representative about the supplies. I am confident that if our local
contacts at FEMA in the Transitional Recovery Office knew about these
goods, they would have brought it to my attention, especially since
they have deep knowledge of the situation on the ground.
The State also launched a new protocol for handling such FEMA
supplies, which consists of the following:
Oversight.--The LRA will have oversight of ensuring that
Federal supplies that are either in FEMA's possession today or
were given to the General Services Administration (GSA) for
excess purposes meant for victims of Katrina and Rita are
dispersed to agencies and nonprofit organizations assisting
these people. The LRA will be the lead agency in working with
GSA or FEMA when property becomes available that could assist
disaster victims with their recovery.
Coordination.--The LRA selected a nonprofit organization to
reach out to groups about how to access surplus supplies.
Training.--To ensure that nonprofit organizations and
volunteer agencies working with hurricane victims can access
Federal supplies in the future, the LRA worked with Federal and
State agencies to coordinate education of nonprofits about how
to access these supplies in the future.
Working with the Louisiana Association of Nonprofits (LANO), the
State distributed fact sheets about accessing surplus property to
Louisiana nonprofits. So far we've delivered supplies to two groups--
UNITY of Greater New Orleans and the Acadiana Outreach Center. There is
an application process for groups to receive surplus supplies through
the Louisiana Federal Property Assistance Agency so that the State can
ensure that qualified groups that need the supplies get them and also
so the LFPAA can track their needs. Currently, the State is working
with ten more nonprofits to go through this application process. These
applications are being expedited and the Agency's staff has started to
conduct site reviews while final documentation is collected from the
nonprofits.
Further, my agency has been working with FEMA on an application for
case management funds to assist residents in their transition from
temporary FEMA housing to more permanent living situations. We will be
requiring that all nonprofits working on our case management program
are registered with this State surplus agency so they can request the
supplies that they need and put them directly in the hands of our
families who are working so hard to recover from these storms.
We recognize that there is plenty of blame to go around in this
situation and we seek not to point fingers, but to help people improve
their lives and living conditions. This discussion is important not
only to those of us in Louisiana and Mississippi, but also to the
leaders in the Midwest who are struggling to recover from devastating
flooding. And it will mean something to the leaders in the next States
to be affected by disasters.
Simply put, we cannot cast blame without solutions. We must fix our
flawed communication between States and the Federal Government in times
of disaster so that States never again lose the opportunity to use
critical supplies simply because they were not properly notified of
their existence. And I would encourage leaders in other States to look
at their internal protocols for dealing with such supplies. As we have
learned over and over again in Louisiana, the time to coordinate is
before a disaster strikes, not as you struggle to recover in the years
after a catastrophe.
I would be remiss if I did not take the opportunity to remind
everyone in the chamber today that while we are sitting here around
12,000 Louisiana residents are living in FEMA trailers. More than
16,000 people are participating in the United States Department of
Housing and Urban Development's (HUD) Disaster Housing Assistance
Program (DHAP) in Louisiana. And our homeless population stands at a
staggering 12,000 people, which is more that double the pre-storm count
of homeless individuals.
We are working to resolve the housing crisis in our State that
stands to get worse as we move closer to the March 2009 end of the
Disaster Housing Assistance Program, at which time we worry that many
families are at risk for becoming homeless. Louisiana is addressing
this crisis on several fronts, including:
Applying for case management funds from FEMA;
Using $73 million recently awarded by Congress for Permanent
Supportive Housing vouchers;
Developing a long-term comprehensive housing strategy so
that we know how many units will be coming on-line through
March 2009;
Prioritizing homeowners living in trailers in the State's
Road Home housing program so that they can more quickly get
their grants. In general, any improvement to the Road Home
program improves the situation on the ground--as homeowners
move home, they free up rental units;
Encouraging landlords to join HUD's DHAP program to help
provide more rental units;
Allocating millions in Community Development Block Grant
(CDBG) funds to Homeless Supports and Services.
We owe it to these families in transition and to the American
taxpayers to work together to use every resource at our disposal to
combat homelessness and create safe, sustainable housing situations for
our people.
Senator Landrieu. Mr. Davidson.
Could you all scoot a little bit and give him a little bit
more room there?
There we go. Thank you.
STATEMENT OF OLIVER R. DAVIDSON, DONATIONS MANAGEMENT
COMMITTEE, NATIONAL VOLUNTARY ORGANIZATIONS ACTIVE IN DISASTER
Mr. Davidson. Thank you very much. Good afternoon Madam
Chairwoman.
I am Oliver Davidson; I work with the Humane Society in the
United States. You have some information about me in my
statement, so I am going to summarize in three different
points, and talk a little bit about the National Voluntary
Organizations Active in Disaster of which I have been a member
and a committee member on the Donation Management Committee
since 1989.
So we have had a lot of experience with this subject, and I
would like to talk a little bit about the voluntary agency
piece of it.
National VOAD has 49 member organizations. These are all
the names that you are familiar with, starting with Red Cross
and going down to the Adventists and the other relief groups
that always respond on a national level.
There are 55 State VOADs and there are hundreds of local
VOADs that are all working with Government to try to improve
victims after the disaster, but more importantly beforehand. I
myself go to four VOAD meetings regularly and also DC Citizen
Corps.
So we try to keep the national level with a level of
reality, and we work very closely with FEMA. Eighty-five
percent of the members are actually faith-based, with millions
of constituents across the country. So we start with that part
of it. Then I would like to go to some of the lessons, because
we have worked on a lot of disasters.
When I left my Federal career, I had worked on 320
international disasters, and I have worked on about 100 more
since then, including working on, just recently, the California
fires and Midwest floods. We should say that the Donation
Management Committee of NVOAD organizes a conference call on
relief and coordinating donated goods and services almost every
other day when the disasters occur. So there is very close
coordination.
I have to say thank you to FEMA; they are the ones who pay
for the call. So they help us organize. They are on the calls
with us. They try to, shall we say, make sure these kind of
glitches that happen, that we are talking about today, don't
happen.
I think that we need to understand that offers are usually
made to nongovernment organizations, they are not made to
Government. So when we complain about Government not managing
unsolicited and donated goods, we may be talking to the wrong
end of the animal.
Obviously, they have a role. But the nongovernmental
organizations, and now working with Aidmatrix, are the ones the
offers come to. Most people don't want to give a donation to
Government.
So the offer--and many offers are not appropriate. As Mr.
Castillo said, we need to make sure we have good offers of
things that can help. Sometimes they are useful to help locally
as opposed to halfway around the country where we have already
had to pay transportation to get there. Of course, with the
high cost of transportation, it is not cost-effective to take a
donation from New York and send it to California. It may be
better to just send the cash or send the money that would have
been used to pay for the gasoline.
Government transportation and storage is very useful if we
can reduce the cost to taxpayers. In other words, a good
donation, let the Government pay for the transportation and the
storage, keeping records to keep it separate in our multiagency
warehouses, which are frequently paid for by FEMA. Keep it
separate, but Government support. That is very useful if it is
a good donation.
Thank you very much for the hearing because I think this is
a subject that has been long misunderstood. I remember sitting
in front of Mr. Rangel one day when we were talking about
donations for the Caribbean. This is a subject that is not too
complex, but it is not just so easy that it can be glossed over
and say: Oh, well, FEMA will fix it. It is not a FEMA-fix
problem, it is a cooperative effort to fix it.
So the last part of my statement, which I will submit along
with some other material for the record, has some ideas about
what FEMA can do to better support the voluntary agency effort.
Because if we look at the international side, the Agency for
International Development has provided hundreds of thousands of
dollars to interaction to do similar things which FEMA could
have provided to the nongovernmental NVOAD over the last
numbers of years. So if we look at that model--maybe we should
encourage FEMA to look at that model, and do a little more
support for national-level issues that will help every
voluntary organization as well as helping the States.
The one thing that has come up, just from listening here,
is, most voluntary agencies have no access to the GSA
warehouses. Well, let's look at how Government or
nongovernmental disaster organizations working with the States
can have access to those GSA supplies, whether they are
purchased or whether they are gotten from some Government
excess, whatever. I think that would be a very useful
innovation. I think some agencies actually do have access, but
not too many.
Senator Landrieu. Could you wrap up, please?
Mr. Davidson. Yes. I appreciate the hearing and would be
happy to answer questions. Thank you.
[The statement of Mr. Davidson follows:]
Prepared Statement of Oliver R. Davidson
July 24, 2008
Good afternoon, Chairman Thompson, Chairman Cuellar, Congressman
Dent and Chairwoman Landrieu and Members of the subcommittees.
As a Senior Advisor for Emergency Services for The Humane Society
of the United States, I work with Government agencies, national
nonprofit organizations, and other State and local partners to
strengthen the critical work in communities to protect animals and
people with animals from the impact of disaster
(www.HumaneSociety.org). I served 20 years in the Office of U.S.
Foreign Disaster Assistance, USAID, and I am a disaster advisor to the
Business Civic Leadership Center, U.S. Chamber of Commerce.
I am here today as a member since 1989 of the Donations Management
Committee of National Voluntary Organizations Active in Disaster, or
National VOAD (www.NVOAD.org). National VOAD is a national, nonprofit,
nonpartisan forum where member organizations share knowledge and
resources throughout the disaster cycle--preparation, response, and
recovery--to help disaster survivors and their communities. National
VOAD coordinates planning efforts by voluntary organizations responding
to disaster. Member organizations provide more effective and less
duplicative service by planning and training together before disasters
strike. Once disasters occur, National VOAD, or an affiliated State or
U.S. Territory VOAD, encourages members and other voluntary agencies to
coordinate on-site. This cooperative effort has proven to be the most
effective way for a wide variety of voluntary organizations and
Government to work together in a crisis.
The Donations Management Committee of National VOAD brings
voluntary organizations, State and Federal Government, and private
partners together to plan for and manage unsolicited goods and
services. Managing the potentially overwhelming influx of unsolicited
donated goods from the public can maximize these potential resources,
because when uncoordinated, they have caused a disaster within a
disaster.
FEMA has worked closely with its partners since Hurricane Andrew
(1992) and has increased this effort as a result of the Hurricane
Katrina experience. Recent changes include updates to the National
Response Framework which includes National VOAD and its member
organizations in the plans; the creation of a technology tool for the
organization of offers of goods, cash, and volunteer services; and the
establishment of a national public-private coordination team to support
the policies and procedures for more effective unaffiliated volunteer
and unsolicited donations management.
Although today's hearing is focused on how FEMA received and
managed the donations made in 2005 to help those in the Gulf Coast,
National VOAD members want to highlight and summarize the donation
management lessons from numerous events.
donation management lessons
Every ``offer'' is not an appropriate disaster donation--
relief is to provide the right material when needed most.
Donations are not free--expenses include transport, storage
and management.
Government transportation and storage can be helpful to
ensure the use of donated goods and reduce the need for
Government purchases.
Experienced State government donation coordinators are one
important key to success.
A massive influx of goods distributed free can have a
negative impact on a local economy, especially small
businesses.
After Action Reviews, although at times painful, can yield
valuable lessons, if implemented.
Congressional referrals of offers can be helpful; however,
congressional influence, not supported by sound technical
evaluation, can be counterproductive and costly.
Significant progress has been made to improve policy and to build a
more streamlined process for donation management by FEMA in cooperation
with States and with nonprofit partners. However, more effort and
support is required to turn appropriate donations into disaster relief
and recovery resources.
FEMA could increase support for National VOAD to:
Work with and support voluntary agencies, State and local
government and the business community (e.g. National VOAD,
Chamber of Commerce, and trade and professional associations)
in the development of standards and common operating
procedures.
Increase Donation Management Training opportunities for
voluntary agency and State government staff.
Include donation and volunteer management issues in
Government disaster exercises.
Conduct public education campaigns and conferences to
promote ``appropriate donation methods'' (See The Center for
International Disaster Information, www.CIDI.org, supported by
USAID).
Provide funding for capacity building so that National VOAD
and its Donations Management Committee can independently
develop the systems needed by its members to effectively get
these well-intentioned goods to the appropriate organization
and ultimately to the community in need.
Senator Landrieu. Thank you very much.
Mr. Stallworth.
STATEMENT OF BILL STALLWORTH, EXECUTIVE DIRECTOR, EAST BILOXI
COORDINATION AND RELIEF CENTER
Mr. Stallworth. Thank you, Madam Chairperson. I really
appreciate the opportunity, and I want to commend you on your
diligent fight to try to make sure that we aren't forgotten
along the Gulf Coast.
I am a City Councilman in Biloxi, and I recently, at
Hurricane Katrina, started a nonprofit organization. That
nonprofit organization started with myself and two volunteers
with a small grant from an international organization called
OXFAM. It since has grown into 12 full-time persons with a full
design studio and a true one-stop shop that we are able to take
the residents that were affected by Katrina from the time that
they walk in the door to the time they turn the key to the
door. We are just very thankful for any help that we can get.
But I want to apologize, because part of my comments I want
to submit for the record, but I am going to take this 5 minutes
to really just say this--let me apologize up front if I offend
anyone--but I am sick and tired of being sick and tired.
I am really sick of the excuses when we look at how this
whole thing has been handled, including the eight--what is
debated, $85 million or $18 million--regardless of the fact
that those millions could have gone toward those people who are
in need.
I don't mean just those folks who are still in the FEMA
trailers. I am talking about those folks who were pushed out of
the trailers, who were told that they need to get out. I am
talking about other people who are not in that system who are
still in need of housing and household goods. Those folks could
have received the benefit of the moneys and goods that were
just wasted.
Second, let us just look at that. Typically what we look at
in terms of rebuilding homes in our area for building
materials, we are looking at probably about $50,000; $50,000 to
$60,000 in building materials, and we can put a family into a
permanent house. Imagine what would have happened if we had $18
million and how many people that we could--at $85 million that
would be close to 1,700 new homes that people could have been
in.
But what we had to do to replace that loss is to go to
other organizations, like the Red Cross, Salvation Army, take
precious dollars that could have been used for building
materials to supply these so that families could move in. That
is just unconscionable. It is a shame.
You know, I have heard a lot about this donation issue, and
in deference to my colleague, I think that when we look at a $1
billion was refused, somebody needs to be slapped upside the
head. I don't see why anyone would turn down money.
The software that FEMA is talking about now, we know
nothing about. We have no way to plugging into this. This is
the first I am hearing about any software that FEMA has that
will allow us to plug in and determine what they may have to be
available for supplies.
Our State--God bless our State--but truly there is a major
disconnect between what is happening in FEMA, what is happening
in State level, and what is happening on the ground. I deal
with people every day that is on the ground. I deal with the
problems. I look into the faces of those individuals who need
to have the help who simply cannot get the help. All I want to
do is to try and do whatever we can here to bring home the
point to FEMA that there has got to be a better-coordinated
effort between themselves and the nonprofits and those grass-
root organizations who are on the ground.
So, as a part of that, we need to talk about how to better
include nonprofit organizations who are not the Red Cross, who
are not the large multinational organizations, but those
organizations that are in both Mississippi and Louisiana who
are there day-in, day-out working to house people, to get
people into some permanent housing.
Currently FEMA is looking to have virtually 6,000--no, I am
sorry, 8,000--families who are in their FEMA trailer, on their
assistance, moved from there to permanent housing in the three
coastal counties of Mississippi. Those three coastal counties
basically have about 700 affordable units. Now, how do you fit
8,000 families into 700? The need to be smart about what we use
these funds for is paramount.
But this is something that is not going to go away
overnight; this needs to continue, and certainly not just in
the early stages when there is a disaster declared, but there
needs to be thought given to how to move forward into the
recovery stage. Those dollars need to be afforded to nonprofit
organizations.
Senator, I can't agree with you more. Those organizations
who are doing it need to have the help, and there is nobody
there to give it.
FEMA typically comes to us and says, well, you can find--
they need to have these special kinds of things, go to the
long-term recovery committees. We don't have the money, we
don't have the resources. We asked for it. Nobody told us that
they had it.
So I am going to conclude, and I know I am a little over my
time, and as I said, I apologize because I can get very
passionate about this. But I am truly sick and tired of being
sick and tired.
So I will stop at this point. Thank you.
Senator Landrieu. You don't have to apologize to this
Chairwoman, thank you, on that subject.
[The statement of Mr. Stallworth follows:]
Prepared Statement of Bill Stallworth
July 31, 2008
Chairman Cueller, Chairman Landrieu, and Members of the
subcommittees, I would like to thank you for inviting me to testify
before the subcommittees today about this important issue.
I am Councilman Bill Stallworth from Ward Two of Biloxi,
Mississippi. Before Hurricane Katrina bombarded the coast, I served as
a councilman of East Biloxi for almost 11 years. East Biloxi, situated
on the eastern tip of a barrier on the Gulf of Mexico, is comprised of
minority and low-income citizens. Prior to Hurricane Katrina's
devastation, East Biloxi was home to roughly 10,000 of the city's
poorest residents, with an average median income of $23,527. The
population is approximately 40 percent African American, 40 percent
white, 15 percent Vietnamese, and 5 percent Latino.
When I saw that not enough was being done for my community after
Hurricane Katrina, I started the East Biloxi Coordination and Relief
Center with a grant from Oxfam America. The Federal Emergency
Management Agency (FEMA) took 8 weeks after Katrina to have a presence
in East Biloxi, and help was urgently needed. Our organization helped
citizens in the East Biloxi neighborhood when no one else would, and
continues to do so. At its formation, the organization included only me
and a couple of volunteers coordinating relief efforts in the Biloxi
area.
Our organization, other small non-government organizations, and
church groups were the only relief for the citizens of Biloxi. FEMA and
other major organizations were nowhere to be found. Our small group was
able to get thousands of homes gutted out quickly, and we started the
rebuilding process within a very short winter. What we all accomplished
was impressive, but much more could have been done for thousands of
other people if FEMA was there from the beginning. Since the storm hit
the coast, East Biloxi Coordination and Relief Center has grown and now
employs 15 full-time staff members.
Immediately after Hurricane Katrina, volunteers came from every
corner of the United States, but eventually volunteers must return to
their own homes. Volunteers came and went, and housing projects stalled
waiting for the next source of labor. In an atmosphere of chaos and
desperation, it was easy for things to drop through the cracks. In
times like that, it is crucial for a permanent and large organization,
like FEMA, to have a long-term presence in disaster areas during the
recovery and rebuilding stages so that important housing projects are
not ignored.
Rather than simply managing rotating volunteers, we turned East
Biloxi Coordination and Relief Center into an efficient business; we
hired staff and we case-managed. East Biloxi Coordination and Relief
Center has become one of the only true ``one-stop-shops'' in the Gulf
Coast region. Our clients come into our office to have their case
assessed. Then, we put together funding, financing, draw up plans for
refurnishing or rebuilding their homes with support from the university
design studio, and then we start building. Hundreds of new homes have
been built by East Biloxi Coordination and Relief Center and its non-
profit partners. We make homes safer and stronger than they ever were
before. We pair construction crews and volunteers, and, as our
volunteers move in and out, our construction coordinator helps provide
consistency for each home. In the last 6 months, we have built 70 homes
and we currently have another 70 homes that we are working on. The East
Biloxi Coordination and Relief Center business and disaster relief
model is very successful, which is why other local Gulf Coast
organizations have adopted the model.
another fema fiasco
When CNN first broke the story that supplies intended for hurricane
victims were instead given to the Mississippi Department of Wildlife,
Fisheries, and Parks, prisons, and volunteer fire departments, I was
outraged. Cleaning supplies, small appliances, and a variety of other
necessary home goods were stored for 2 years, while volunteers and non-
profit organizations used precious and limited funds to provide those
same items to victims of Hurricane Katrina. Immediately after a
catastrophe, the Federal Government has an obligation to deliver aid as
quickly as possible to those with the greatest need. The only way to
get aid to the people who need it most is for the Federal or State
government to reach out to existing local organizations to help
facilitate that exchange.
Eighty-five million dollars' worth of home supplies given to
unintended parties, as well as the additional $1 million per year that
it cost to store them, could have been used in many important ways.
Thousands of people are still homeless along the Gulf Coast, and FEMA
wants everyone out of temporary housing programs by March 2009. There
are many more people that have already moved into small apartments with
aunts, cousins, and friends, to avoid the toxic formaldehyde trailers.
Our organization has spent millions of dollars getting people back into
homes. Money that we requested for household items from the Red Cross
and Salvation Army could have been better spent on making new homes,
and taking more families off of the streets.
Instead, the money is gone, the materials are gone, and there are
families left without a safe roof over their head because aid money was
not properly allocated. In our business, $85 million in aid could have
been used for 1,700 new homes if we spent $50,000 per house. Rather
than buying household goods and then locking it up in a storage closet
for 2 years, FEMA should have given the money to local organizations
that would have properly used the funds. A bureaucratic mess cost the
people of the Gulf Coast $85 million worth of support.
Non-profits were not made aware of the goods, and it was clear that
FEMA ground-workers were not aware of the warehouse either. FEMA agents
meet with East Biloxi Coordination and Relief Center each week, and
they never mentioned ``surplus'' aid. The people on the ground need to
know where to find supplies, whom to ask for assistance, and how to
make their way through the bureaucratic hoops to get things done.
Instead of reaching out to us, one of the first things FEMA did in
their Gulf Coast recovery was to build walls and put up red tape.
There is a national sentiment that the Gulf Coast region has
recovered. People assume that after 3 years, the citizens of
Mississippi, Alabama, and Louisiana have landed on their feet. It is
obvious that FEMA holds this ignorant belief. FEMA officials clearly do
not think that the region is a region in need. Anyone who has spent
time in Biloxi or New Orleans should understand that $85 million worth
of cleaning supplies, small appliances, and other household goods needs
to be in the hands of the people that lost everything, and not sitting
in a warehouse. At East Biloxi Coordination and Relief Center, we are
the ones that sit face-to-face with the survivors of Hurricane Katrina
and tell them that we will help them rebuild their home, but we do not
know where the money to fulfill these promises will come from.
FEMA sought help from the State and cities, but they ignored the
people who were on the ground making a difference, like the East Biloxi
Coordination and Relief Center. The people that watched the waters wash
away their schools, churches, and homes are the most determined to
return to their lives as they were before Hurricane Katrina. The heroes
of disaster recovery have been local leaders that decided they can not
wait around any longer for the Government to start caring about their
neighborhood. Those people want to see things ``the way they were''
more than anyone else, but we can not pretend the Gulf Coast is back to
the way it was before the hurricanes hit.
Non-profit organizations and church groups proved themselves to be
better at working with local people than the Federal Government in the
aftermath of Hurricane Katrina. Not only did FEMA fail to reach out to
those in need, it failed to support the few organizations that already
had relationships within the local communities. It is crucial that
during future disaster recovery, FEMA identify and communicate with
local non-profit partners that can assist them with the overwhelming
job ahead. Small organizations should know where they can go to help
the people of their neighborhood. It is difficult for East Biloxi
Coordination and Relief Center because we only have 15 people, but for
even smaller groups, it is impossible to get assistance from the State
and Federal Governments. Hurricane Katrina was a lesson that the post-
disaster chain-of-command is broken; we now have an opportunity to
learn from a bad experience and break the cycle of mistrust.
FEMA's response to the hurricanes was embarrassing, but it will be
tragic if the Federal Government learns nothing from experience. I come
before Congress today to stress the importance of a strong, working
relationship between FEMA and local non-profit organizations during a
future disaster.
Thank you. I look forward to answering any questions you may have.
Senator Landrieu. Ms. Keller.
STATEMENT OF VALERIE KELLER, CHIEF EXECUTIVE OFFICER, ACADIANA
OUTREACH CENTER
Ms. Keller. Well, I think that I can say pretty much,
``Ditto,'' to Mr. Stallworth's comments here and that clarity
that comes from common-sense talk that has been so scarce in
the last 3 years.
My name is Valerie Keller, Madam Chair, and I do serve as a
CEO of the Outreach Center. But additionally, I would like to
say I serve as a member of the Louisiana Recovery Authority's
Housing Task Force and as co-chair of the Louisiana Supportive
Housing Coalition and the Louisiana Advocacy Coalition for
Housing and Homelessness, so I am talking very much in the same
perspective as my colleague here, representing about 300
different nonprofit agencies across the State.
We appreciate Congress' continued support and attention to
the Gulf Coast recovery, and we are optimistic that what we are
looking at here. We will be able to find some real solutions to
the ongoing problems. Because it is frustrating that after 3
years we are still facing a problem with people who have needs;
and there are resources there, and we just simply cannot make
the connection to be able to do it when you have
organizations--nonprofit organizations, voluntary
organizations--who exist for that purpose to help make that
connection.
The Outreach Center, specifically since Katrina, our case
managers have provided more than 23,000 services touching the
lives of more than 10,000 people since then. I would say that
the services and supplies that we have been providing have not
typically come from the Government.
There is truly a lack of coordination and integration. It
is important to know--I know that we said it is our
responsibility to find out what was available, but we look
under every rock. That is our role; we collaborate and we
coordinate, and we don't operate in a vacuum. It is very
surprising to hear that there are supplies out there when that
is what we do, is look for resources and look for supplies to
help meet that need.
I would say, too, that in the aftermath of the storm,
talking about the coordination of unsolicited donations, we
coordinated close to 1 million pounds of food and personal care
items and medical supplies to about 6,000 impacted homes. But
because there wasn't a good system to coordinate those
unsolicited goods, we would get things that didn't match the
needs; and so it wasn't palleted, it wasn't inventoried. It was
a logistical nightmare to sort it, inventory it in hot humid
warehouses and try and get it back down to the people who
needed it. It was incredibly, incredibly inefficient.
The travesty of that is, as I was sitting here reviewing
the inventory list of FEMA goods that Mr. Rainwater provided,
it is Appendix 1 in his testimony, and I couldn't help but
think back to those weeks and months following the storm,
looking at the very items on his list.
Those are the equivalent of gold for us; those are the
basic items for human dignity that we would have given anything
to have had, Madam Chairwoman--pillows and sheets, trash cans
and hand sanitizers, dishes, utensils, shoes and bath towels,
especially valuable because they were in bulk quantities, and
they were palletized.
Instead, because we didn't have any way of knowing the
supplies were available, our agency and others, I will say,
pulled meager funds from our pockets to purchase the very
supplies that were listed in the FEMA inventory. This
diminished money that we were using to help people pay rent,
utilities, medical bills, fuel for their cars and bus passes
enabling them to get to work.
I will also say this, too--again, echoing my colleague's
comments--that as Chair of the Louisiana Advocacy Coalition,
very active in VOAD--helping integrate HUD's regional database
systems was about these databases that can help provide
efficiencies, but the very first time I have ever heard of
Aidmatrix is here today.
So it seems to me that there are on-going needs. The
resources are there. This is the United States of America; we
don't have a scarcity of supplies. It seems to me like we have
a lack of effective and efficient system.
Then, when we do put those systems in place we have a
terrible, terrible way of communicating it to the people who
need it and the boots on the grounds who can deliver it.
I would say this, too: When the story broke on CNN about
the long-needed disaster recovery supplies that were collecting
dust in warehouses, that there was that sense of frustration
that says, we are tired of being tired. Here is just one more
example of where things were needed then; and, yes, they are
still needed now. But, golly-gee, they sure could have been
used 3 years ago.
So we are tremendously grateful to Senator Landrieu and to
the Louisiana Recovery Authority for providing the Outreach
Center with these supplies, and to Senator Landrieu for her
leadership working to secure the $73 million in permits for
housing vouchers.
I will say this: The supplies that we secured on July 14
have generated an incredible amount of calls from families
needing these supplies; and the supplies that sat for 3 years
in a warehouse will be distributed to families who need it
within about 3 weeks.
I will say this, too: If the service providers know that
things are available, we will jump through hoops to do whatever
it takes to be able to access them. But we have to know what is
out there, and we have to have access to the systems to be able
to do it.
To your point, Senator Landrieu, we have to have the
capacity to be able to meet the need from the nonprofit arena.
FEMA we should have known about, as we are not off their radar;
since 2005, our case managers have been working with them, with
HUD, with State agencies, helping people navigate the very
confusing FEMA funding streams and accessing other resources to
help people secure permanent housing. So it isn't like we were
off the radar screen.
I would say this, too: That the need is critical and
ongoing. Is there a need for more supplies? Is there a need for
more services? Yes, there is.
The rents have increased 30 percent since the storm.
Affordable housing is not available. A minimum wage worker is
working now about 81 hours a week to afford market rate housing
in our area. With the March 1 deadline, 2009, coming up with
FEMA's program ending, Louisiana has about 40,000 households
that are at risk of homelessness if they lose their rental
assistance. We don't have enough affordable units on-line.
So I know that the scope of our discussion today is about
the supplies or the lack of coordination of those supplies--
that they existed; we just couldn't get them to people who
needed it. But I would say that as we go forward, as we look to
help get people into sustainable housing and to establish self-
efficiency, that we should be looking very holistically, not
only at how the Federal and the State and the nonprofit
organizations can work together, but how we can look at having
the rental vouchers, the case management and the supplies that
people need to be able to sustain self-sufficiency.
Thank you for your time.
[The statement of Ms. Keller follows:]
Prepared Statement of Valerie Keller
July 31, 2008
I would like to thank the chairpersons and the distinguished
Members of the committees for the opportunity to appear before you. I
am Valerie Keller, CEO of Outreach Center, a nonprofit based in south-
central Louisiana, and I serve as a member of the Louisiana Recovery
Authority's Housing Task Force and as co-chair of the Louisiana
Supportive Housing Coalition and of the Louisiana Advocacy Coalition
for Housing and Homelessness. We appreciate Congress' continued support
and attention to Gulf Coast recovery and your commitment to looking
critically at our national systems for response and recovery so that
our country is better prepared to aid its citizens in future times of
crisis.
Today, I share with you information on the current need for housing
and supplies along the Gulf Coast following the devastation of
Hurricanes Katrina and Rita almost 3 years ago, in the hopes of
informing your analysis of how critically needed supplies were not
delivered to those who needed them and your efforts to prevent such
unfortunate situations from occurring in future disasters.
This testimony focuses on three main points:
1. Our work helping families access housing and the supplies
they need for self-sufficiency and our efforts working with
FEMA and other Federal/State agencies;
2. The ongoing needs on the ground across Louisiana's still-
suffering coast and specifically focusing on the oft-overlooked
Hurricane Rita-impacted region;
3. The impact of the recent CNN story and the Congressional
and LRA outreach directing long-needed supplies to help these
families still struggling to rebuild and recover.
I will speak to those first two points first--our work providing
services and the on-going needs on the ground--to set the stage on why
the recovery supplies we're discussing today were and are much-needed.
The Outreach Center is a grassroots nonprofit human services
organization with a proven track record of delivering effective
services to people in crisis. Founded in 1990 and serving eight (8)
parishes, the Center utilizes a comprehensive services model designed
to help people climb from rock-bottom to obtain safe housing,
meaningful employment, optimal physical and mental health, and a sense
of self-respect, hope and dignity. Its broad scope of services
encompass a complete continuum of care that includes an extensive
housing and case management program, licensed addiction and mental
health treatment center, social enterprises, a women's and children's
shelter, a day shelter, and a food and supply distribution center. In
addition, the Center is now developing mixed-income housing and
catalyzing urban revitalization.
The Outreach Center's core competencies lie with the delivery of
comprehensive, outcomes-based case management and supportive services
to individuals and families. In the wake of Hurricanes Katrina and Rita
the Outreach Center established the Transitional Recovery Action Center
for Katrina/Rita (TRACK) based on the best practice ``housing first''
model to help hundreds of displaced families find solutions and access
to housing, transportation, employment, and supportive services--
rebuilding and empowering one life at a time.
A donation and distribution center for supplies and services was
also established and in the aftermath of the storms the Center
coordinated the distribution of goods from international relief
organizations around the world, businesses, and Government agencies
giving more than 800,000 pounds of food, personal care items and
medical supplies valued at $2 million to more than 6,000 evacuees.
Displaced families unsure of where or how to begin rebuilding their
shattered lives turned to the Outreach Center and got the help they
needed.
Since the storms, even when other relief and emergency response
efforts faded away, community-based nonprofits have continued to serve
the overwhelming needs of their neighbors while scrapping together
resources. Our case managers are still working one-on-one with
displaced individuals and families to assess their needs and establish
an action plan to address each need, including housing, employment,
transportation, mental health, substance abuse, education/job skills
training, childcare, legal needs and community connections. We have
employed more than 50 evacuees who lost their jobs in the storms to
serve other impacted families. Since August 29, 2005 we have provided
23,817 services including case management and assistance accessing
housing, employment, transportation, Government benefits to 1,045
households, 2,367 individuals.
Resources are scarce and our agency is currently leveraging local
dollars with some funding from the Social Services Block Grant
administered through the LA State Department of Social Services (DSS)
Homeless Prevention and Rapid Re-housing Grant and the Louisiana
Disaster Recovery Foundation Displaced Family--Housing Assistance Fund.
These funds will aid approximately 300 displaced families in the
Hurricane Rita-impacted parishes and FEMA trailer parks to obtain
rental and utility assistance for up to a year. Since 2005 we have been
working with FEMA, HUD, State agencies and nonprofits to ensure that
services are not duplicated for the same families and that gaps are
filled as people exit transitional housing and try to secure permanent
housing.
In our work with hurricane evacuees, we have helped to place many
clients in permanent housing, often serving individuals that have
recently been evicted from their FEMA trailers. Many of our clients
have accessed HUD's Katrina Disaster Housing Assistance Program (KDHAP)
and Disaster Voucher Program (DVP) rental subsidies, part of which pays
a portion of their rent, and incrementally pays less and less, leaving
the evacuee to pay more and more. In our experience this program has
unfortunately not been a long-term solution for most hurricane-impacted
families, as they are still often unable to pay their rent at the
increased market rates and thus are unable to maintain permanent
housing and self-sufficiency.
Louisiana, like the rest of the Nation, was facing an affordable
housing crisis pre-Katrina and Rita; however, an entirely new housing
crisis was created when the hurricanes devastated south Louisiana in
the fall of 2005, forcing the evacuation of hundreds of thousands of
residents. One of the biggest challenges facing evacuees was, and still
is, securing safe and affordable housing for their families. While many
families have since returned to their hometowns, those unable or
unwilling to return to the hurricane-ravaged areas remain in the area
and the impact on housing availability has been substantial. South
central Louisiana, a region best known nationally for its Cajun food
and Zydeco and Cajun music, was the area hardest hit by Hurricane Rita
also served as host communities for people resettling after Hurricane
Katrina. In this region the rent for one- and two-bedroom units
increased 30 percent since the storms and a minimum wage worker now has
to work 73 hours per week to afford a one-bedroom and 81 hours per week
to be able to afford a two-bedroom apartment for a family.
Although these storms took a tremendous toll on all in their path,
low- to moderate-income individuals were disproportionately affected,
with the storms severely compounding problems that already existed.
Current needs assessments reveal the top issue for hurricane-impacted
families is still primarily a lack of affordable housing. As the
Outreach Center continues to see a large number of families from the
Hurricane Rita-impacted areas, it is obvious that they have many
outstanding basic needs, including food, shelter, clothing, health care
and transportation. They need help accessing affordable housing, rental
and security deposit assistance, building materials, transportation,
food, employment, legal counsel, household items, furniture, infant
supplies, cleaning supplies, school supplies and school uniforms.
In my capacity as co-chair of the Louisiana Supportive Housing
Coalition representing more than 300 organizations across the State, I
have had the honor of working closely with Senator Landrieu, and with
the support of our delegation and Louisiana Governor Bobby Jindal, to
secure $73 million for 3,000 supportive housing vouchers--2,000 of
which will be used to house disabled and homeless people in the New
Orleans region, while 1,000 of the vouchers to help people obtain
housing in the other hurricane-impacted areas.
Three years later the needs are very much on-going but the
resources to meet those needs are scarce and people are understandably
tired and frustrated. So when the story broke on CNN about long-needed
disaster recovery supplies being given away for non-disaster purposes,
it was quite disturbing to many of the impacted families and agencies
like ours who are working with them every day to try and make ends
meet. Many displaced families have nothing with which to furnish and
keep up their homes and they could have used these supplies long ago.
Families we have helped move out of FEMA trailers were not allowed to
remove their furnishings and so they are in need of complete bed,
living and dining room sets, as well as dishes, pots, pans, cleaning
and infant supplies, school supplies, and school uniforms. Any supplies
we receive can and will be put to good use as we help these families
re-establish housing.
We are tremendously grateful to Senator Landrieu and the Louisiana
Recovery Authority for providing the supplies from FEMA that went to
Arkansas. We were able to secure these supplies just 2 weeks ago and
since then the calls for assistance have been pouring in from families
needing supplies and other agencies looking to help people they are
serving. We've talked to many of our nonprofit partners who are equally
as disappointed that these supplies sat collecting dust in warehouses.
If nonprofit service providers had even known it was available--if FEMA
had simply communicated the existence of these critically needed
resources--we would have jumped through whatever hoops necessary to ask
for it and get it to people we're serving who need them so desperately.
With rental assistance to help bridge the affordable housing gap
and with household supplies providing a stable home life, individuals
and families are better prepared to pursue employment, education for
their children, maintain their health, and be able to afford
transportation and childcare, thereby ensuring self-sufficiency and
long-term sustainability.
Chairpersons, Members of the committee, the bottom line is that 3
years after these catastrophes, people are still in need of supplies
they could have benefited by receiving years ago. The Outreach Center
and community-based organizations stand ready and willing to partner
with Government agencies to deliver vitally needed services and
supplies. We are committed to using our full capacity to help families
recover, to stimulate economic development, and to restore hope to
communities. Thank you.
Senator Landrieu. Thank you all very much. I really
appreciate the conciseness of your statement. I think you all
had very interesting points.
I would like, Mr. Stallworth, to direct the first question,
if I could, to you. You testified, generally, that you were
unaware of these items as well.
Have you subsequently contacted the State of Mississippi or
been contacted by them, by anyone from the State since the
story broke about any of the items that they have received as
surplus for your needs or any other nonprofits that you know?
Mr. Stallworth. Madam Chairperson, not a soul. We just
simply have not had that contact. We are still looking for some
help. Now, we have contacted the organization who received
them, and we were told that they did not know that the
nonprofits needed it. But we didn't know about the
organization. The director of admin and finance was the group
that received it, but no one told us.
Senator Landrieu. Because it is our understanding that
approximately $75,000--$746,000 of supplies is with Mississippi
Wildlife and Fisheries and, to date, you haven't heard either
from Wildlife and Fisheries or from anyone in the Mississippi
State Government?
Mr. Stallworth. No, Madam Chairperson, we have not. We have
registered with that organization as a nonprofit. It is very
interesting to note that they say they couldn't find anyone,
but the Mississippi Nonprofit Association is located right in
Jackson, we are listed with them, but they never bothered to
ask anybody anything.
Senator Landrieu. I am going to be sending a letter this
afternoon just asking for the State of Mississippi to go on the
record, because they might have information that has just not
been made available and, in all fairness to them, I have not
specifically requested it.
But as you heard from Paul Rainwater, the State of
Louisiana moved very quickly to try to identify what Federal
agencies had received these items to try to recover what we
could, recognizing in the testimony that has been given that
there was some mistakes made at the State level. The agency in
charge of surplus did not notify the recovery authority, and
that was a breakdown that happened at our State level.
But I am interested in the position or the understanding of
what has happened since in Mississippi, and I will be asking
the State for documentation. But I just wanted to hear from you
that you have not yet received any official information or, to
your knowledge, none of the other nonprofits in Mississippi?
Mr. Stallworth. Madam Chairman, if you will, when you get
that, please let me know?
Senator Landrieu. Yes, I will send you a copy because maybe
they have done some things that we are not aware of.
Let me ask, Ms. Keller, what are the three--you mentioned
some of these, but if you would restate--what are the three
biggest challenges your organization is facing right now 3
years after these storms?
I understand you would be considered operating in a host
region, although your region had some damage, actually your
region had significant damage from Hurricane Rita. You were
also a host region for Hurricane Katrina. So you became a host
for families fleeing from Hurricane Katrina. Four weeks later,
your region, parts of your region, which is in southwest, was
also hit by Rita. So you all have really have had a challenge.
What are the three maybe biggest challenges before you now?
You mentioned housing, but I would like to give you a little
bit more time to explain that.
Ms. Keller. Thank you, Senator. You said it exactly too
that as a host region it means that we had people who were
displaced by Hurricane Katrina who flooded into the scarce
housing market, already scarce, an already affordable housing
crisis across the Nation and in Louisiana pre-Katrina. Then you
had people come in and obviously a scarcity of housing with
Rita, where that took some housing off the market.
So what happened there is you have got an even greater
scarcity of housing, rents have skyrocketed, and so rental
assistance is a huge key factor right there. It says that you
have got people who cannot make enough money to afford the
increased rents.
So one of our requests would be that as FEMA looks at
ending their program, I know it can't continue forever and
forever, but that there has got to be some rental assistance.
To your credit, thank you again for securing the $73 million
for performance housing rentals, and that was the key.
The other piece is funds for case management. I know the
LRA is working with FEMA to do a case management program. I
have had some conversations with them today regarding that that
says agencies like ours, Senator, are paying case managers out
of our own pocket. We have got people that we are helping them
move out of trailers right now, because their time is up, they
need to try to get into housing, and we have cobbled together
funds to try to be able to get them in housing. So there is a
direct supply, moneys needed, utility assistance, funds to be
able to provide them the supplies they needed because they
weren't getting it from FEMA here, and we are paying for our
case managers ourselves.
Senator Landrieu. Doesn't FEMA have case management funding
available? Ms. Keller?
Ms. Keller. I don't control their budgets, but I would
assume that they would.
Senator Landrieu. Let me ask Mr. Rainwater, because you are
basically coordinating this effort. What has FEMA provided to
you to date, which they are authorized is my understanding, for
case management?
Mr. Rainwater. Yes, Senator, it is a good question. Since
starting in January we have been talking to nonprofits like Ms.
Keller and others and Unity and beginning to identify needs,
and one of those obviously was the case for case management and
indirect assistance, which is part of the surplus discussion.
But Harvey Johnson, the Chief Operating Officer in FEMA, told
me what they had in the beginning, in January and February,
what were called Cora Brown funds, $1.1 million, that would
help us to bridge from the time that, you know, folks, case
management, some case management funding had ended, there was
none left, so they provided $1.1 million.
Then we were going to move into another phase, a much more
comprehensive case management phase. We have submitted a grant
to FEMA for $45 million to provide case management for 13,000
folks that are in the DHAP program, and we still have another
11,000 folks in FEMA trailers, and our--and other processes
throughout that transitional housing piece.
So we have submitted a grant application working with the
Louisiana Family Recovery Corps and the New Orleans Disaster
Recovery Group, which is part of the United Way. So we have
submitted that grant application, we have made formal
application for about a $45 million grant.
Senator Landrieu. When did you submit that application to
FEMA?
Mr. Rainwater. Last week.
Senator Landrieu. Because I am going to ask FEMA for their
response to that, and then I will ask Mississippi if they have
submitted any requests for case management.
Mr. Stallworth, did you want to add anything?
Mr. Stallworth. We are in the process, there is a meeting
going on today my staff is a part of. The Mississippi Center
for Volunteerism is negotiating a contract with FEMA to provide
case management assistance, specifically to those folks who are
still in FEMA trailers or on some type of FEMA assistance. My
only comment is that we don't know what they are going to do,
how much they are going to provide, and the timing is a
virtually 9-month contract to try and get close to, in this
case, 8,000 families, case managed and into some permanent
housing.
Again, how do you fit 8,000 people in the 700 homes? The
problem with this--and one of the things that I would really
hope this committee will do and recommend to FEMA and to HUD,
is that they take a holistic approach to getting people back
into homes. These temporary measures are just that. They don't
solve the problem. We have to figure out a way that we can take
those precious dollars and convert them not to temporary
housing, but to permanent housing, and that requires a
combination of volunteerism, nonprofits and moneys that will
allow us to build the needed homes so that there is 8,000 homes
available for 8,000 families, because the math doesn't work any
other way.
Senator Landrieu. Mr. Davidson, let me ask you, I was
intrigued by your longevity in this national organization of
the 55 prominent national organizations, most are familiar to
the people listening to us and people listening to this
hearing, is your organization, you call it, VOAD. What is it,
VOAD?
Mr. Davidson. Yes, the national organization is National
Voluntary Organizations Active in Disaster so these are
commonly recognized big organizations that have arms, legs,
pieces.
Senator Landrieu. Are you officially recognized by FEMA?
Mr. Davidson. Yes.
Senator Landrieu. As the nonprofit partner, as their
nonprofit partner?
Mr. Davidson. Yes. NVOAD was actually a signatory of the
National Response Plan; in other words, of the previous
response plan. So it has a long history of working with FEMA.
I have to say after watching FEMA for all these years they
have not been as responsive on a funding level. They are very
cooperative and the long-term technical staff are very helpful
to us, but from a financial standpoint FEMA has not provided
much funding for the development, the capability building, et
cetera, of a national organization.
Senator Landrieu. Did they notify you of these goods before
they declared them surplus?
Mr. Davidson. No, I believe that we didn't know that. Diana
Rothe-Smith, the Executive Director of NVOAD, is in the back.
She may have heard something.
Could you stand up and say if you were notified or not?
Ms. Rothe-Smith. We were not notified, and the items are
currently not in the Aidmatrix system.
Senator Landrieu. I am finding this extremely hard to
believe that FEMA had $18 million worth of items purchased with
taxpayer dollars that they declared surplus and did not notify
their nonprofit national partner, nor the two States most
prominently involved in this particular disaster, to our
knowledge, Mississippi or Louisiana, in any kind of appropriate
notification fashion.
I am having an extremely difficult time understanding how
this could happen, and I am not convinced of the testimony
given in the previous panel that steps have been taken to
correct this. This is quite disturbing.
Mr. Davidson.
Mr. Davidson. Well, just to be clear, when FEMA gives
things--first of all, there were two different things. There
were donated supplies that were commingled, which I think is
the first mistake. So the donated supplies should never have
been commingled with FEMA supplies. There was a multi-agency
warehouse in Mississippi, there was one in Louisiana. We worked
with that multi-agency warehouse.
I can't understand where those things and how they got
lost, so just from that standpoint. But when FEMA provides
excess property to the States, the State Emergency Management
Office will often tell us that there are trailers or vehicles
or other things that are available for excess property surplus,
and there is a mechanism. But in most cases, it is difficult to
get those things. But this does not deal with those specific
supplies that are mentioned here today.
Senator Landrieu. Well, I will conclude, I am not going to
conclude this hearing, but I will come to this conclusion
myself that the process that FEMA has currently established to
determine whether something is surplus or not is completely
broken and wholly inadequate.
To determine if something is surplus, you would seem to me
to ask someone if they need it before determining that they
don't need it. You have to ask the questions, or at least, I
think as one of our panelists suggested, open the window and
look out yourself. Neither one of those was done. They didn't
look out the window to see the thousands of homeless people.
Maybe they had lines that were too difficult to open. But then
they also failed to pick up a phone and call anyone, either
State, the nonprofits, to determine if anyone needed these
items.
So we are going to hear more from FEMA about how they
intend to fix this, but this is quite disturbing.
Mr. Stallworth and then Ms. Keller, and then I think we are
going to wrap up.
Mr. Stallworth. Thank you, Madam Chairperson. One of the
things that was disturbing, I think, in the previous testimony,
was that somewhere FEMA decided that these supplies were not
needed, and they were returned. I didn't quite get an answer at
what point and who made that decision, because clearly, from
what we know in both Mississippi and Louisiana, the need is--
there is absolutely no question about the need.
All they would--if anyone who was there on the ground would
need to do is just take a ride down my street to see the
families who are still in need. So shipping stuff back to a
warehouse, because some other--excuse the expression, for
example--bureaucrat just decided they didn't want to deal with
it is unacceptable.
Senator Landrieu. Ms. Keller.
Ms. Keller. While we have the opportunity, Senator, to talk
to FEMA and educate them a little about what might be happening
on the ground, from somebody who is on the ground, day in and
day out working alongside in some cases, their folks, I would
say that one of the gentleman had referenced that people who
were in trailers had housing supplies given to them. Our
experience has been that has been incredibly sporadic. We hire
evacuees as well, in addition to serving them. Some of our
staff members received things like a trash can and a pillow,
and that was it, in terms of housing supplies.
So I would just say that maybe that may be the protocol in
the system, but it maybe just isn't translating into reality.
The other comment that I would like, and as it relates to
the Rita-impacted area as opposed to some of the Katrina-
impacted people, is if people are outside the trailers they are
just off of FEMA's radar. Unfortunately, they are still in
need, and throughout southwest Louisiana, and throughout
Louisiana and throughout Mississippi as well.
So as we are talking about the need, and we are so
determined what surplus is, you look at what your existing need
is, I would just remind us, particularly as well to FEMA, that
there are a lot of people out there who maybe don't have a FEMA
trailer that they are living in, but they are still very much
part of the recipient population that needs to be served.
Senator Landrieu. Right, they could be living with a family
relative for 3 or 4 years, two or three families still living
in a house, still struggling to rebuild their homes.
Ms. Keller. That is the reality.
Senator Landrieu. Based on the testimony today, I am not
sure if FEMA recognizes them as citizens deserving or in need
of help, which is another problem.
Anybody who wants to close, Mr. Rainwater, and then I will
bring this hearing to a close.
Mr. Rainwater. Thank you, Senator Landrieu. I just want to
kind of wrap this up. There are a couple of things, really,
that I want you to know.
As we work through this process, we are looking at a very
nontraditional approach, recognizing when I took this job in
January, in talking with the Governor and your own staff, that
we couldn't just look at this, as we typically would in a
disaster, because as you just said, there are people in very
nontraditional situations.
So we have reached out to the nonprofits. We are linking
back to the State agencies that is responsible for this surplus
equipment. We have taken the Louisiana nonprofit organization.
We have sent out thousands of applications on how to get
surplus equipment. We have got that linked up.
But we are also getting out and talking to faith-based
groups and these nonprofits so that we can create, as we create
a comprehensive housing strategy to look, going forward in
March 2009, as the deadline ends, we want to create some sort
of safety net. We are going to need our Federal partners to
help us with that.
But what we promised is a plan. It says, this is our need,
and we are quantifying it to you. We will bring it to your
staff, obviously, and the committee and our Federal partners to
move forward.
Senator Landrieu. Okay. I would like to end on a positive
note, but I actually can't think of a positive note to end on,
because I just conducted a hearing earlier in the week, and
just--I can see this train wreck coming. FEMA is now over a
year late, I think, providing their housing plan for dealing
with catastrophic housing, and the plan that we received is
really not a plan, it is a strategy of which seven pages are
completely blank.
FEMA has now just decided to recommend to us, after 3
years, to appoint a task force. That is going to provide
answers to the question that you just asked, Mr. Stallworth, is
what do I do with how many families, did you say?
Mr. Stallworth. I have got 8,000 families trying to get
into 700 homes.
Senator Landrieu. There are 8,000 families trying to get
into 700 homes. The report that I got this week is that FEMA's
recommendation to Congress is that we should establish a task
force to figure that out. So I hope that this task force can be
quickly put together and have their recommendations, get their
budget request in, and houses built in 9 months, because if
that doesn't happen we are going to be having a lot of hearings
on this and other related subjects.
I would like to thank the witnesses today for their
valuable testimony and Members for their questions. The Members
of this joint subcommittee may have additional questions for
the witnesses. We would ask that you respond expeditiously in
writing.
Hearing no further business before anyone, this hearing is
adjourned.
[Whereupon, at 3:20 p.m., the joint subcommittee was
adjourned.]
A P P E N D I X
----------
Questions From Senator Mary L. Landrieu for the Federal Emergency
Management Agency, Department of Homeland Security
request for inventory of fema supplies
Question 1a. On June 12, I wrote to Administrator Paulison
requesting an inventory of surplus supplies in the custody of FEMA and
DHS. I also requested his assistance in returning any unobligated
supplies back to the State of Louisiana. On July 16, he responded with
a letter indicating that `` . . . [FEMA] will work with you and your
staff to ensure visibility into the distributed supplies as well as any
remaining in storage.'' Please provide my office with an inventory of
all FEMA household supplies currently in storage in Louisiana.
Are there any supplies designated for victims of Katrina and Rita
that are still in storage elsewhere around the country?
If yes, please provide my office with an inventory and location of
these items.
Answer. No.
Question 1b. Will FEMA agree to provide a tour of the warehouses in
Louisiana and Fort Worth for Louisiana State officials?
Answer. Yes.
request for inventory/status of dhs supplies
Question 2a. On June 18, I wrote to Homeland Security Secretary
Chertoff requesting an inventory of surplus supplies in the custody of
DHS. It is my understanding, from documents provided by the General
Services Administration, that DHS agencies, including the Border
Patrol, received surplus supplies from FEMA. While FEMA responded to my
request to their agency, DHS has yet to respond. I would like to
receive additional information on surplus supplies received by DHS
agencies in February 2008, as well as supplies which may have been
provided to DHS agencies via the DHS Reutilization Officer in late
2007.
Please provide my office with an inventory and listing of all DHS
agencies that received surplus supplies from FEMA between July 2007 and
February 2008.
Question 2b. Please provide my office with an inventory and listing
of all DHS agencies that received surplus FEMA supplies from GSA in
February 2008.
Answer. Attachments 1, 2 and 3 provide the information requested on
all DHS agencies that received surplus supplies from FEMA between July
2007 and February 2008, as well as surplus FEMA supplies from GSA in
February 2008.
Questions From Senator Mary L. Landrieu for Paul Rainwater, Executive
Director, Louisiana Recovery Authority
Question 1. Has collaboration between the LRA and FEMA's logistics
staff improved since this incident occurred?
Answer. Response was not received at the time of publication.
Question 2. Do you feel that FEMA has taken the necessary measures
to prevent a recurrence of this episode, or are there additional
changes that you would recommend?
Answer. Response was not received at the time of publication.
Question 3. I am continuing to work with the LRA to return
unobligated surplus supplies from the Federal Government and States.
For the record, as well as for any Federal/State agencies that might be
watching, can you outline what household items are still needed in
south Louisiana? What State agencies should organizations contact if
they have supplies that might be useful?
Answer. Response was not received at the time of publication.
Question 4. How many nonprofit organizations has the LRA registered
to date to receive supplies that the LRA receives in the future?
Answer. Response was not received at the time of publication.