[Senate Hearing 111-1097] [From the U.S. Government Publishing Office] S. Hrg. 111-1097 CHARTING A PATH FORWARD: THE HOMELAND SECURITY DEPARTMENT'S QUADRENNIAL HOMELAND SECURITY REVIEW AND BOTTOM-UP REVIEW ======================================================================= HEARING before the COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED ELEVENTH CONGRESS SECOND SESSION __________ JULY 21, 2010 __________ Available via the World Wide Web: http://www.fdsys.gov/ Printed for the use of the Committee on Homeland Security and Governmental Affairs U.S. GOVERNMENT PRINTING OFFICE 58-402 WASHINGTON : 2011 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Printing Office. Phone 202�09512�091800, or 866�09512�091800 (toll-free). E-mail, [email protected]. COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS JOSEPH I. LIEBERMAN, Connecticut, Chairman CARL LEVIN, Michigan SUSAN M. COLLINS, Maine DANIEL K. AKAKA, Hawaii TOM COBURN, Oklahoma THOMAS R. CARPER, Delaware SCOTT P. BROWN, Massachusetts MARK L. PRYOR, Arkansas JOHN McCAIN, Arizona MARY L. LANDRIEU, Louisiana GEORGE V. VOINOVICH, Ohio CLAIRE McCASKILL, Missouri JOHN ENSIGN, Nevada JON TESTER, Montana LINDSEY GRAHAM, South Carolina ROLAND W. BURRIS, Illinois EDWARD E. KAUFMAN, Delaware Michael L. Alexander, Staff Director Beth M. Grossman, Senior Counsel Troy H. Cribb, Counsel Christian j. Beckner, Professional Staff Member Brandon L. Milhorn, Minority Staff Director and Chief Counsel Robert L. Strayer, Minority Director for Homeland Security Affairs Luke P. Bellocchi, Minority Counsel Devin F. O'Brien, Minority Professional Staff Member Trina Driessnack Tyrer, Chief Clerk Patricia R. Hogan, Publications Clerk and GPO Detailee Laura W. Kilbride, Hearing Clerk C O N T E N T S ------ Opening statements: Page Senator Lieberman............................................ 1 Senator Collins.............................................. 4 Senator Voinovich............................................ 11 Senator Brown................................................ 15 Senator McCain............................................... 21 Prepared statements: Senator Lieberman............................................ 27 Senator Collins.............................................. 30 WITNESS Wednesday, July 21, 2010 Hon. Jane Holl Lute, Deputy Secretary, U.S. Department of Homeland Security Testimony.................................................... 6 Prepared statement........................................... 33 Responses to post-hearing questions for the Record........... 44 APPENDIX Department of Homeland Security report titled ``Quadrennial Homeland Security Review Report: A Strategic Framework for a Secure Homeland,'' February 2010............................... 95 Department of Homeland Security report titled ``Bottom-Up Review Report,'' July 2010............................................ 202 CHARTING A PATH FORWARD: THE HOMELAND SECURITY DEPARTMENT'S QUADRENNIAL HOMELAND SECURITY REVIEW AND BOTTOM-UP REVIEW ---------- WEDNESDAY, JULY 21, 2010 U.S. Senate, Committee on Homeland Security and Governmental Affairs, Washington, DC. The Committee met, pursuant to notice, at 10:06 a.m., in room SD-342, Dirksen Senate Office Building, Hon. Joseph I. Lieberman, Chairman of the Committee, presiding. Present: Senators Lieberman, Kaufman, Collins, Brown, McCain, and Voinovich. OPENING STATEMENT OF CHAIRMAN LIEBERMAN Chairman Lieberman. The hearing will come to order. Thanks very much to everyone for being here. In particular, welcome, of course, to the Deputy Secretary of the Department of Homeland Security (DHS), Jane Holl Lute. In the 9/11 Recommendations Act of 2007, Congress mandated that the DHS carry out a Quadrennial Homeland Security Review (QHSR) as a way to develop and update strategies for homeland security within the Federal Government and ensure that the Department's programs and activities were aligned with that homeland security strategy. The Act required that the initial QHSR be provided to Congress by the end of 2009. The QHSR was modeled on the Quadrennial Defense Review (QDR) that was put in place in the 1990s to ensure that the leaders of the U.S. military would focus on emerging national security threats, that to some extent the requirement to do the QDR would force them to look above the pressing events of the day, over the horizon to the challenges that were ahead, and then to develop and present to Congress and the public the strategies and resources to counter them. The QHSR report, which was completed in early February, and the follow-on Bottom-Up Review (BUR) report, which was completed and issued just a few weeks ago, are meant to serve the same purpose for homeland security. They have the potential, I think, to be the catalyst for ongoing transformation and improvement of the Department, as well as across our entire homeland security community outside of the Department, and in that sense, we are very fortunate to have Ms. Lute with us because I know that she oversaw these two reports. This morning we want to hear about the results of the process, including the impact that it is having on strategic planning more broadly within the Department and at other homeland security agencies. I would like to hear about the steps that will be taken to implement the initiatives described in the BUR report, including how it will impact the Department's budget priorities in future years and how the Department intends to work with Congress on initiatives that may require statutory changes. Forty-four initiatives are described in the BUR report, in areas such as information sharing, management integration, DHS regional alignment, and the organizational framework for cybersecurity. In fact, cybersecurity, in a noteworthy change, has now made its way into the top five mission areas of the DHS, and I applaud that placement because that is exactly where I think it belongs. The Bottom-Up Review is also a broad narrative of the Department's key missions--I will say for myself too broad at least in its first iteration and various of its parts--and its goals for improving those missions, which sometimes in the report seemed too vague to me as I read them. I hope, Ms. Lute, that you will be able to develop those in some more detail today and in follow-on documents. When Congress created the Department of Homeland Security out of 22 different Federal agencies in 2002, we knew it would take time for it to mature into a cohesive agency that could focus its many parts on its two main missions, which are to take the lead in our Nation's fight against the Islamist terrorists who attacked us on September 11, 2001, and also to be able to respond better to natural disasters. I think overall, as I have said here many times before, the Department has done very well at achieving those missions, but it still has a way to go as we all acknowledge. The QHSR and the BUR are important steps on the path to achieving that goal, and I have questions that I am going to ask about that. I do want to say that we hold this hearing against the backdrop of a series of articles that has been in the Washington Post called ``Top Secret America'' that examines the new institutions and programs created after September 11, 2001, particularly focused on intelligence, but also including the Department of Homeland Security. So it makes this oversight of the QHSR and the BUR particularly timely. I think the Washington Post series has raised important questions about the big changes in our government since September 11, 2001. For instance, is too much of our war against the terrorists who attacked us on September 11, 2001, being outsourced to private contractors? That is a big question raised by the Washington Post series; it is one that has been of concern to this Committee for some significant period of time, actually going back to October 2007, when we held a hearing on the Department's reliance on contractors. At that hearing, the Government Accountability Office (GAO) presented the results of a review that they conducted at the request of Senator Collins and myself. We have consistently pressed the Department on this issue in the context of our oversight of specific programs since then, such as SBInet and cyber functions, for example, where there continue to be a significant number of private contractors involved. The former Under Secretary for Management, Elaine Duke, I think, tried to dig into this issue toward the end of the last Administration but did not get very far, and I am not sure she had much support from people above her. I am pleased to say that it does seem to me that a serious review of the contractor workforce is underway now under Secretary Janet Napolitano and Deputy Secretary Lute. At a briefing in December, we heard for the first time that DHS is trying to quantify the number of contract employees. The numbers that we have received are really quite remarkable. At an oversight hearing on this question a while ago, I was shocked to hear the number 200,000 contract employees that are working for the Department of Homeland Security, as compared to 188,000 full-time civilian employees. After that hearing, Senator Collins and I wrote to Secretary Napolitano to ask for a more detailed breakdown on the contractor workforce so we could determine whether those contract employees were doing inherently governmental work in violation of the law. It is hard to imagine with so many that some of them were not, and I think we have to face that problem and deal with it so that the reality comes into conformance with the law. While we have been assured repeatedly by the Department that a review is underway, we still, as of this morning, do not have a timetable for when that review will be complete or a specific breakdown at the program level of the current full- time employee to private contractor ratios. I hope, Ms. Lute, that you will be able to help us answer some of these questions today, and if not today, then as soon as possible. In my opinion, a lot of the growth of the homeland security and intelligence community of the U.S. Government after September 11, 2001, was necessary, and I do not know if the series in the Washington Post intends to say that the system is out of control, but I do not find from my inquiry that it is out of control, both because of the creation of the Department, which is exercising management and coordination authority, and also in the intelligence area because of the creation of the Director of National Intelligence who is doing the same. But there has been a lot of growth, and it has happened quickly. It is part of why we have been relatively fortunate since September 11, 2001, that, thank God, and thanks to all the employees of the government who have helped us do that, we have not been hit again with anything like September 11, 2001. But the facts in the Washington Post series, and all that we have been working on over the last 3 years here in the Committee, say that we cannot just let the machine operate without control from the Executive Branch and oversight from the Legislative Branch so that we are sure that we are spending taxpayer dollars in a cost-effective way. I look forward to discussing this and all the other topics that the QHSR and the BUR raise with you this morning. I appreciate your being here. Senator Collins. OPENING STATEMENT OF SENATOR COLLINS Senator Collins. Thank you, Mr. Chairman. Thank you for holding this hearing on the need to establish clear priorities for the Department of Homeland Security, the Federal entity created to help protect our country from terrorism and other threats. As has been stated many times, if you try to protect everything, you end up protecting nothing. So it is incumbent upon the Department, particularly when budgets are tight, to set detailed priorities to improve the preparedness and security of our Nation. The Department's Quadrennial Homeland Security Review is a good first attempt to outline strategic homeland security missions and goals. Yet, the Department itself acknowledged that the QHSR was incomplete, so it then conducted a follow-on review. As the Chairman has indicated, this assessment, known as the Bottom-Up Review, was intended to set priorities for security initiatives and reorganization at the Department. While I appreciate the Department's effort to undertake such a comprehensive analysis, the results are disappointing. Indeed, the two reviews simply do not compare to the level of analysis and planning that goes into the Quadrennial Defense Review and supporting documents. Let me give an example. In the QDR and in the Navy's shipbuilding plan, the Department of Defense outlined specific measurable goals, such as a 313-ship Navy. The 30-year shipbuilding plan includes a force structure, construction plan, funding assumptions, and a specific articulation of the risk inherent in the force projections. By comparison, the Department of Homeland Security's reviews amount essentially to high-level strategy documents that provide little in the way of concrete goals or the actions needed to achieve them. For example, the Department of Homeland Security reviews set some goals to eliminate unnecessary duplication, to decrease operational inefficiencies, and to promote cybersecurity. But without specific measurable plans, how can Congress hold the Department accountable for meeting these goals? In these documents, the Department highlights the critical need to address the threat of a cyber attack and indeed lists cybersecurity as one of five strategic ``pillars.'' I agree with that priority, but that seems inconsistent with the President's budget request for fiscal year 2011, which cut the Department's cybersecurity budget by $19 million. How can the Department shoulder even the general responsibilities of an entire pillar while cutting the associated budget? The documents do not explain that contradiction, nor do they outline how the Department plans to do more with less. As co-author with the Chairman of a comprehensive bipartisan cybersecurity bill, I am disappointed that the Department's reviews do not identify the authorities and resources that DHS will need to enhance its cybersecurity capabilities. The legislation this Committee approved last month would fill that gap. The Bottom-Up Review also fails to provide any specificity, as the Chairman has indicated, on how the Department will reduce its troubling overreliance on contractors. This is a concern that I have raised repeatedly with the Secretary, as has the Chairman and other Committee members. As the Washington Post investigation revealed, six out of 10 employees at the DHS Office of Intelligence and Analysis (I&A) are from private industry. This is on top of the revelation that an astonishing 50 percent of the DHS workforce are contractors. This is unacceptable. Now, let me emphasize that I recognize that contractors play an important role in augmenting the Federal workforce in helping to meet a one-time need, but they cannot displace the need for permanent, well-trained government employees. But what does the DHS report say about this? Simply that ``DHS will continue to build on contractor conversion efforts at an even more aggressive pace.'' That is not a plan. It is simply a platitude. Like a compass, the QHSR should aid the Department in aligning its budget requests with homeland security priorities, and in turn, these priorities would help Congress evaluate the President's budget request against measurable goals. The reviews that the Department has presented to Congress accomplish none of these tasks. They do not include a budget plan for the Department, nor do they assess how the organizational structure can better meet the national homeland security strategy. I also have to mention an issue that the Chairman and I have mentioned repeatedly about documents presented to the public and our Committee. The QHSR slights the strategic threat posed by violent Islamist extremists by refusing to call that real and present danger what it is. This is ironic considering that the introduction to the QHSR discusses the Christmas Day attack, an attack conducted by a violent Islamist extremist. The review does not reference ``violent Islamist extremism'' or any variation of that phrase in the entirety of its 108 pages, and it refers to ``homegrown extremists'' only once. That is astonishing given the alarming increase in the number of homegrown terrorist plots last year. In sharp contrast, the October 2007 National Strategy for Homeland Security uses the word ``Islamic'' 15 times and the word ``homegrown'' eight times. The Bottom-Up Review fails to describe how the Department will confront the threat of home-based terrorism. If DHS does not acknowledge in a forthright way the nature of the threat or explain how the Department intends to counter it, it is impossible for Congress and the American people to judge the Department's counterterrorism plans and whether they are adequately reflected in its budget and priorities. I look forward to hearing more from the Department's Deputy Secretary about how more concrete and actionable plans will be developed. That planning is essential to improve the efficiency of departmental operations and to build sensible budget plans. Only then will the time and effort--and I recognize there was tremendous time and effort put into these projects--spent on these reviews pay dividends in the form of a usable road map to better protect the American people. Thank you, Mr. Chairman. Chairman Lieberman. Thank you very much for that statement, Senator Collins. Ms. Lute, again welcome. Thanks for all your good work for our country, and we look forward to your statement now. TESTIMONY OF HON. JANE HOLL LUTE,\1\ DEPUTY SECRETARY, U.S. DEPARTMENT OF HOMELAND SECURITY Ms. Lute. Thank you very much, Mr. Chairman, Ranking Member Collins, and Members of the Committee. I am happy to be here today to discuss the Department's Quadrennial Homeland Security Review and the Bottom-Up Review and, in particular, how the Department of Homeland Security plans to implement the initiatives set forth in these two efforts. --------------------------------------------------------------------------- \1\ The prepared statement of Ms. Lute appears in the Appendix on page 33. --------------------------------------------------------------------------- As you know, and as you have pointed out, the submission of the QHSR report to Congress earlier this year marked an important first step in a multi-step process to examine and address fundamental issues that concern the broadest perspective of what is called the homeland security enterprise. The Bottom-Up Review was initiated in November 2009 as an immediate follow-up to complement the work of the QHSR with the aim to align the Department's programmatic activities and organizational structure with the broader strategic and mission direction identified in the QHSR. The BUR report itself reflects that endeavor and represents an intermediate step between the QHSR report and the President's fiscal year 2012 budget request and future years, which will propose specific programmatic adjustments based on the QHSR strategic framework. The QHSR resulted in the articulation of a strategic framework and a positive, forward-looking vision for homeland security. Indeed, one of the initial challenges that we faced is that while homeland security had broad and widespread and extensive name recognition, brand recognition, there was less of a handle on what it meant to talk about a secure homeland. The QHSR lays out a vision for homeland security that says, very simply, we are trying to build a safe, secure, and resilient place against terrorism and other hazards where the American way of life, interests, and aspirations can thrive. Informed by this conception of homeland security that is a positive, forward-looking vision, the report also places emphasis on the fact that it takes an enterprise, the homeland security enterprise, a more complete and comprehensive understanding of the homeland security threats, and the need to achieve balance across the efforts related to security, resilience, and the important elements of customs and exchange. The QHSR strategic framework grounds homeland security, the achievement of this vision, in the accomplishment of five missions, and those missions are: Preventing terrorism and enhancing security; securing and managing our borders; enforcing and administering our immigration laws; safeguarding and securing cyberspace; and ensuring resilience to disasters. We believe that if we achieve these five missions and execute these five mission sets, we will go a long way toward achieving a safe, secure, and resilient place where the American way of life can thrive. The Bottom-Up Review is the second major step of a three- part process that began with the QHSR. The BUR began with an activities inventory of all of the things the Department does on a daily basis. Of the 230,000 people that comprise the Federal workforce of the Department of Homeland Security, 225,000 of them are in the operating agencies. This is an operating Department. What do we do every day? And how do those activities every day contribute to the five missions we have identified as essential to building a safe, secure, and resilient place for the American way of live to thrive? The BUR went beyond this taxonomy of the activities inventory and resulted in a clear sense of priorities across three main categories: One, how do we enhance our mission performance in the five areas I laid out? Two, how do we improve the way we run ourselves? And, three, how do we increase accountability for the resources that have been entrusted to us? We have laid out a number of priorities in the Bottom-Up Review, and these are priorities that we believe should be implemented by the Department over the coming quadrennial. This is a 4-year list of priorities. We will not accomplish all 44 of the initiatives and enhancements in fiscal year 2012. Several key themes emerged out of the QHSR and the Bottom- Up Review process. All of these are set forth in the Executive Summaries of the two reports, but I want to emphasize a few things that the QHSR and the BUR processes have brought forward. First, an emphasis on the importance of the resilience of individuals and communities to our Nation's security. Second, as the Ranking Member mentioned, the promotion of cybersecurity as a key homeland security mission. Third, the recognition in a set of strategic documents that homeland security is a shared responsibility and that all of us--citizens, businesses, communities, Federal, State, local, territorial, and tribal governments, nongovernmental organizations, and the private sector--are part of the larger homeland security enterprise. Fourth, the development through the Bottom-Up Review of a set of tools that will allow the Department for the first time to look at all of our activities across the five homeland security missions and assess their importance and contributions, not just from the perspective of the individual operating component, whether the Transportation Security Administration (TSA), the Federal Emergency Management Agency (FEMA), or the Coast Guard, but to each mission and to each specific set of critical functions. This will allow us to be better stewards of taxpayer dollars and to better manage the performance of our mission activities. And, finally, that the initiatives and enhancements that have emerged from the QHSR and the Bottom-Up Review will materially benefit the citizens of this country and their communities. It is unusual for a Federal department to have the opportunity to engage in the first principles that established it as a Federal agency and to engage in a comprehensive study of its missions from the bottom up and to evaluate each of its activities against priorities that have been identified from a thoroughgoing and broadly inclusive process. And DHS has benefited greatly from the experience. Finally, Mr. Chairman, we have learned a few lessons in this process, and as we look forward to the next QHSR, I would like to share with you a few of those lessons. First, senior leadership and engagement is critical. The support of Congress is equally critical as well, and the Department has benefited greatly from the support of this Committee and from other Members of Congress through this entire 18-month exercise that brought us to today. Second, timing is important. The QHSR was conducted over a transition year. We lost valuable time in terms of consolidating the work that had been done in an effort to address all of the requirements that Congress laid out for us. This is why we took the approach we did to break it into three parts: The QHSR, the Bottom-Up Review, and the submission of the budget for fiscal year 2012. Third, you must oblige yourself to take account of what has gone on before you. The Department of Homeland Security is 7 years old. I have said in many forums that this is good news. It is not 1 year old for the seventh time. There has been an enormous amount of work, thought, discipline, and activity that have gone on that we have been able to build on, expand on, and move on from this point forward. In addition, the other major quadrennial reviews, including the QDR, and the first ever Quadrennial Diplomacy and Development Review, among others, must be synchronized, and the Administration made a concerted attempt to do just that. Today's security environment demands whole of government solutions and flexible and adaptable policy responses to difficult challenges. Thank you again, Mr. Chairman, for the opportunity to come speak with you today about implementation of the QHSR and Bottom-Up Review and the lessons learned for the future. I have submitted my full testimony for the record and look forward to the questions of the Committee. Chairman Lieberman. Thanks very much, Ms. Lute, for that opening statement. Let me say we will do 7-minute rounds of questions. Senator Collins left, but she will be back. She has an Appropriations Subcommittee meeting that she has to attend. Let me begin with the question, which is somewhat off the QHSR, but not really--which is about the private contractor workforce in DHS. I will give an example of some specific areas for concern. In the office overseeing the National Cybersecurity Protection System, there are 122 contract support staff but only 11 government employees. The latest numbers for the Intelligence and Analysis Section of the Department show that about 53 percent of its workers are contractors. In the Department's fiscal year 2011 budget submission, there were identified approximately 3,300 contractor positions that would be converted to Federal employees. Of course, at that rate it is going to be a long time, a lot of decades before we get the number of private contract employees down. In May, our Subcommittee headed by Senator Akaka and Senator Voinovich held a hearing, and the Chief Human Capital Officer reported on the broader process that the Department is undertaking through its Balanced Workforce Initiative to achieve the appropriate balance between full-time Federal employees and contractors. The BUR again notes that the Department will continue to build on these efforts, although no details on the review are provided. So let me ask you to address yourself to this question. The first really is process. When will we see the specifics of the Department's review of its private contractor workforce in relationship to the full-time Federal employees? Ms. Lute. Thank you, Mr. Chairman. We are working intensively on this issue. As you know, certainly, and Members of this Committee know well, the Department was stood up in part with an explicit reliance on a contract workforce to be able to get the Department up and running, and we continue to rely on hard-working contractors who come to work believing in the mission and the purpose of homeland security every day. The Balanced Workforce Initiative--and I just issued a series of instructions earlier this month to the leadership of the operating components regarding their personal association with the Balanced Workforce Initiative--is designed to give us a handle on strategic workforce planning. In order to do that, Mr. Chairman, what we also did as part of the Bottom-Up Review process was begin a procedure to allow us to align our accounting properly so that we could tell personnel costs across the operating component because they were all counted differently. So before we could run, we needed to walk; and before we could walk, we needed to crawl. And we are doing these things somewhat simultaneously. So we are getting a handle exactly on where our workforce and personnel are assigned, how they are assigned to the critical missions that are the sub-components of each of the missions outlined in the QHSR, and then we are moving through systematically on a priority basis to see where contractors are present and work aggressively to convert them. Chairman Lieberman. Do you have a timeline, a goal by which you hope to finish this review and report to us? Ms. Lute. Yes, we certainly hope to finish it this year, Mr. Chairman, and map our way forward. Chairman Lieberman. So you are saying this calendar year. I guess the question is whether as a result you may be able to undertake a significant realignment of the workforce for the fiscal year 2012 budget. Ms. Lute. We certainly hope to do that, Mr. Chairman. Chairman Lieberman. Let me ask you just for a quick response because you had a lot of experience in governmental administration. There is nothing inherently wrong with a private contractor being retained by a government agency. It has happened probably since the beginning of our government. But I wonder if you would talk a little bit about the balance there. For instance, on average, what is your sense of whether it costs us more, taking all the costs in mind and account, for a private contract employee or for a full-time Federal employee? Ms. Lute. It depends on the circumstances, Mr. Chairman. If it is for a short-term requirement, it may be more cost efficient to have contractors. For longer-term steady state need---- Chairman Lieberman. More efficient because you are not building in the long-term commitment that comes with retaining a full-time employee. Ms. Lute. Exactly. Chairman Lieberman. Yes. I hope that will be part of your review. You are right that we expected in standing up the Department that, particularly in getting into areas that we had not been in before, like cybersecurity, there would be a lot of contract employees hired. But certainly the numbers are stunning, the number of contract employees larger overall than the number of full-time Federal employees. And I think this cries out for just what you have said in the title of the review, which is to balance the workforce consistent with the law. Let me leave that there and go on to a question about intelligence and analysis. The Washington Post series--I will lead into it with this-- talks about a growth in not just contractors but people involved in intelligence. And, of course, in creating the Department of Homeland Security, we created an entire new intelligence operation, which we hoped would have a kind of value-added to it, a unique aspect to it. And, again, I know that a lot of the employees of I&A at the Department of Homeland Security are contract employees. So I want to ask you two questions. First, if somebody reading the Washington Post series asked if you are just duplicating in this intelligence department at the Department of Homeland Security what exists elsewhere, what would you say? And second, I trust that you are trying to bring on more full-time Federal employees in the intelligence section of the Department of Homeland Security so that this imbalance of more contractors than full-time workers will be eliminated. Ms. Lute. Well, thanks, Mr. Chairman. First what I would say is no, we are not duplicating it. One of the things that we have been able to do over the past year and a half is really drill into what the value proposition of the headquarters of the Department of Homeland Security is, and I&A is a vital part of that. The value proposition of I&A is to equip the entire homeland security enterprise with the information and intelligence it needs to discharge all of the homeland security missions. There is no other part of the intelligence community that is oriented on that challenge, and I&A performs that function critically in support of all of the operating components. So that is what I would say primarily. Chairman Lieberman. So you would say that I&A in DHS is drawing from the rest of the intelligence community information that it is producing, but I&A is producing its own information that is also being shared with the rest of the community. Ms. Lute. Yes. Chairman Lieberman. One of our hopes when we created the Department was that a lot of the intelligence work that is naturally done by components of DHS, including the Coast Guard or the kind of information that Customs and Border Protection (CBP) comes up with, would be fed more routinely into the pool of intelligence from which everybody can draw, and also, of course, that DHS would play a unique role here in drawing intelligence from State and local law enforcement officials and also returning intelligence in accessible packages to them. Is that latter function being carried out by I&A at this point? Ms. Lute. It is, Mr. Chairman, and, in fact, this is an area where we really want to emphasize in building up the fusion centers that exist precisely for that purpose. I would back up and say, Mr. Chairman, with respect to the issue of terrorism and combatting terrorism and the potential for a terrorist strike in this country, the Department of Homeland Security has, through its border agencies and other agencies, daily interaction with the global movement of people and goods and substantial amounts of information regarding that movement in order for us to properly identify dangers where they exist and expedite legitimate trade and travel, which must go on. And we certainly are vibrant and active members of the entire whole of government approach in that regard. And, finally, Mr. Chairman, if I might, a word on the numbers with respect to I&A. Not surprisingly, you will hear me say that the Washington Post is wrong in saying that---- Chairman Lieberman. You are not going to be punished in this room for saying that. [Laughter.] Ms. Lute. And, in fact, if all of our full-time Federal employees were on hand in I&A, the number would be closer to four out of 10 rather than six out of 10, and so this is an issue we are working on. Chairman Lieberman. Good. I appreciate it. You made a very important point at the end, which I just want to put an exclamation point next to. I know that the Committee knows that, for instance, in the really remarkable work done to apprehend Najibullah Zazi and David Coleman Headley before they were able to carry out terrorist acts, the intelligence sections, particularly the databases that Customs and Border Protection has, for instance, were critically important in apprehending those two. And, of course, it was CBP that stopped ultimately Faisal Shahzad before he left America on that plane after attempting to blow up the bomb in Times Square. So I thank you for that. Senator Voinovich. OPENING STATEMENT OF SENATOR VOINOVICH Senator Voinovich. Thank you, Mr. Chairman. First of all, before I get into some of my comments and questions, I have been trying since February, again in March, and as recently as last week, to get an answer from the Department on whether or not the Biometric Air Exit Program should be decoupled from further expansion of the Visa Waiver Program. I am very frustrated about that kind of turnaround on a response to a Member of the U.S. Senate. I am the sponsor of the legislation on the visa waiver program. I have asked for that response time and time again, and I cannot get it, and I am very upset about it. And I am telling you about it, and you should tell the Secretary that I am about ready to go to the floor to talk about the incompetence of your Department in not being able to get back to a Member of Congress with a simple answer to a question, and you have had plenty of time to look at it. Second of all, this Department has been on the high-risk list since 2003--22 agencies, 210,000 employees, 225 contractors, 45-percent increase in the budget--and I have not heard anything about more with less or we are working harder and smarter. We have a very difficult budgetary environment right now. I happen to be the Ranking Member on the Appropriations Subcommittee on Homeland Security, and we are trying to get the overall spending level down. And it appears to me that what may have been the Federal role in the aftermath of September 11, 2001, seems increasingly less appropriate when you give considerations to some of the things that we are doing in the Department. The Committee has learned time and time again that FEMA does not employ performance metrics that adequately assess the results of grant program funding. The few metrics that do exist are output-based rather than outcome-based. As my colleagues know, measuring a program's outputs provides little insight into its effectiveness. FEMA also persistently fails to allocate State Homeland Security Program and Urban Area Security Initiative funding according to risk. A June 2008 Government Accountability Office report found that when determining grant allocations, FEMA assigns the same vulnerability rating to all localities regardless of their unique features. And that arrangement remains in place today. One of the things that I remember clearly when the 9/11 Commission came back with their recommendations, they said homeland security assistance should be based strictly on assessments of risks and vulnerability, and not according to a general revenue-sharing arrangement like the kind that exists today. And I know that when September 11, 2001, occurred, I said we are going to have to spend more money, but we have to be careful--and I said this as a former governor and mayor-- that it not turn into a revenue-sharing program. So I am looking at your budget now to figure out some ways, maybe, that we can reduce some of the funding that is in that budget. For example, we have the firefighter grants. We still have $150 million in unobligated funds from the 2009 budget. We have not spent a dime of the $810 million in this fiscal year's budget. It would seem to me that in light of that we could just say put nothing in the 2011 budget when you have over $1 billion hanging out there that nobody has even made application for. The Urban Area Security Initiative grants--at one time, in 2003, we had 29. Today we have 64 of them. And instead of sending money to every city in America, we should restrict funding to the top cities that face the threats. We are in a tight budgetary situation today, and the Department ought to be looking at these programs and saying are these really relevant to securing the homeland. Our homeland security grants--today we spend $950 million on those, and the program gets funded year after year without anyone having an idea if these dollars are being used effectively to reduce risk in this country. So we have this whole business of evaluating and looking at risks and where is the money going to. When are you going to start to look at these things? One of the things that I thought the Department did several years ago is that you did an assessment of interoperability in the various States. That was terrific for me because I read the report, I went out to the four areas in Ohio, went to the cities, visited with them, spent a day asking what are you doing with interoperability, how is it working and so forth. You just cannot keep going the way you are going. And what are you going to do to start looking at some of this stuff? You are going to have a tighter budget, and it is going to get worse as time goes on. What are you going to do about this? Ms. Lute. Thanks, Senator. A couple of things. We recognize that we are in different budgetary times than the Department has experienced since its founding. Congress has been very generous to the Department of Homeland Security and expectations have grown equally. The mandate and responsibilities given to the Department are extraordinary, as this Committee well knows. But we must get a tighter rein on our spending, and we have tried to do that through the BUR process and doing what I have been calling the plumbing and wiring of institution strengthening so that we can be responsible stewards for the resources that have been given to us and that we can manage ourselves more effectively. Part of the BUR process has included, as I mentioned, an activities inventory. What are we doing every day and do those activities match to the missions, to the goals, and to the objectives that we say are most important? If they are not, we should really stop doing them or look at alternative ways to achieve what they were designed to do in support of those missions, goals, and objectives. Second, we are trying to align our account structure so that we can compare personnel across the Department, which we currently cannot do, so that we can compare investments across the Department, operating and maintenance costs across the Department, and understand the value proposition of applying in a border region, for example, the resources of CBP, TSA, Immigration and Customs Enforcement (ICE), and the Coast Guard appropriately, and do that in a way that is rationalized, as you mentioned, to risk. But I want to spend a moment on performance measures because the performance measures that we have been operating with in the Department do not reveal to the American public, or surely to this body or even to ourselves, the kinds of things that we need to see to know that, in fact, the United States is becoming more secure, that we are achieving our mission sets. Senator Voinovich. Let me just say this, as a simple matter. Some of this stuff is not real complicated, and I am familiar with what you have done on the border. I have had some problems with your buying airport screening machinery with body imaging capabilities. I have been briefed. You have done a good job of convincing me that it is needed. There are other things that are needed in the Department, but do you need to put another almost $800 million into the firefighter grants when you have not spent $150 million of the 2009 and 2010 money? There is an area, it seems to me, that could be looked at, where you could say to our Committee that you do not need this money right now. If you did not get this money, you could reduce your overall cost. You could, for example, replace a helicopter that you are going to need because one went down out in California. The urban security grants, giving all this money out all over the country to people--for what reason? Why are we doing it? What are you getting out of it? It just seems to me that you have an obligation to start looking at these programs and coming back to Congress and saying this is not needed right now. Even some of the areas that got a whole bunch of money in the beginning, they did the infrastructure, they put in the cameras, they put in all of the stuff that is necessary, and yet they are still getting about the same or even more money than they were getting before they made these capital expenditures. Now, I understand if they want to argue and say we need that money so that we can hire more people to do something that we would not ordinarily do, but we have to have some rationale about this. And your people ought to be getting at it. Ms. Lute. We agree, Senator. We are looking at all of our risk frameworks and approaches across the entire Department, not only in the context of the challenges and threats that we currently face, but also in the context of the investments and expenditures that have gone on before. We are very mindful of this, and we are also very mindful that as we outlined in the QHSR---- Senator Voinovich. Let me say this to you: It was not reflected in the budget that you submitted to the U.S. Senate this year. Ms. Lute. What I can say to you, Senator, is that, as we have said in the QHSR, the security of the American homeland takes an enterprise. It takes informed individuals, it takes capable communities, and it takes a responsive Federal system all working together to achieve a secure homeland, and we recognize that the Department plays a key role in leading the Federal effort in this regard together with State and local officials. We are looking at all of our expenditures in the current fiscal climate and assessing all of our risk frameworks, and we believe we can and will do better. Chairman Lieberman. Thanks, Senator Voinovich. Secretary Lute, I do not think I heard you respond to Senator Voinovich's concern about a lack of a response to his questions about the Visa Waiver Program. Ms. Lute. I apologize, Senator. Inordinate delay is unacceptable. I will not offer an excuse. I believe the Secretary signed earlier this week a response to you. Senator Voinovich. We have talked about this. Chairman Lieberman. Yes, for sure. Senator Voinovich. You helped draft the legislation, and they put no money in the budget to pay for establishing a biometric air exit program. Chairman Lieberman. Right. Senator Voinovich. And I said, well, if you do not think it is necessary--and they said they do not think it is necessary-- then you ought to get back to us and say that we do not think it is necessary, that we are tracking this in some other fashion, and allow us to get rid of that provision and go back to the 10 percent rather than the 3 percent today. Chairman Lieberman. Yes, this is really important. Senator Voinovich speaks for the whole Committee on this, so I look forward to seeing what the Secretary's response is because as he said, we required that the biometric be in place before we allowed anyone to come into the program if they were over that 3 percent, and we actually put a waiver of 10 percent into the law, but we have suspended that pending the coming of the biometric. So that is a very important letter to have answered. Thanks for raising it, Senator Voinovich, and thanks for your response, Ms. Lute. And so please do everything you can to make sure that letter gets to Senator Voinovich quickly. Senator Brown, welcome. OPENING STATEMENT OF SENATOR BROWN Senator Brown. Thank you, Mr. Chairman. It is good to be here. I am going to have a few questions, and I will submit a couple for the record because I have a couple of other hearings. I am bouncing back and forth, too, so thank you. What do you think DHS has learned from this review that will translate to 2013? Are there any lessons that you can share with us? Ms. Lute. Leaders have to be engaged. This is a leadership exercise, and it has to be led from the top. Second, the timing of the review is important. Transition years are difficult to manage efforts like this if you are looking for as comprehensive an analysis of the homeland security enterprise as you are. The third lesson that I have learned is kind of a personal lesson, I suppose. Homeland security is very different from national security where I have spent my whole career. National security is centralized, strategic, and top-driven. Homeland security is decentralized; it is operational, and it is drive from the grass roots up. It is an enterprise that involves every American, every community, every State, territory, and tribal entity as well. So we need to have an inclusive process and opportunities for voices to be heard on these critical issues. We tried to do that in the QHSR. I would urge that this lesson be replicated the next time this occurs. Fourth, you must learn from what has gone on before you. Do not make the mistake of thinking that you are discovering things. Learn to distinguish what is new from what is new to you. Build on the work that has gone on thus far. Look at where the investments have been made. Understand the rationales. Build out the capabilities. Be explicit in understanding what it will take to achieve the missions that you say are so central to the vision you are trying to create. In our case, we articulate a safe, secure, and resilient place where the American way of life can thrive. We think it takes five missions: Preventing terrorism, securing our borders, enforcing our immigration laws, ensuring our cybersecurity, and ensuring resilience of the American society against all hazards. How will we know if we have achieved those objectives? The QHSR lays that pathway out. And have nerves of steel because there will be people who will challenge you and question you. It is their right to do so, and the outcome will be the better and richer for it if you face the big league pitching of the best ideas that are out there. Senator Brown. Thank you for that response. You talked about leadership and grass roots. Well, I think leadership starts from the top. I know I am new here, but taking so long to respond to Senator Voinovich's and Senator Lieberman's pretty simple request is really unheard of. And the thing that I am noticing is that there is a disconnect sometimes between the Senate and the Administration by not addressing very basic concerns because we are not making this stuff up. We usually get questions from our constituents who put us in office, who ultimately put people in the Administration in office, and we need to have the answers to a lot of these questions. And we do not need them in months. We need them usually in a day or two. And so I would encourage you and every other department in the Federal Government to get with it and start getting us the answers we need so we can respond properly. I also, as you may or may not know, am the Ranking Member on the Contracting Oversight Subcommittee, and we have had a lot of hearings, and I tell you that Senator Voinovich was right on the money. You have not used money, yet you are asking for more money. And we are using contractors, and we are giving them bonuses when they mess up and when they are in default, or they owe us money that they have owed us for years. So I do not if it is a question or a comment, but I would encourage you, because we are at $13 trillion and counting, if there is any streamlining, consolidation, or eliminating of overlap that you can do in your Department to save the taxpayers some good funds, that would be greatly appreciated. Ms. Lute. Senator, I would just say that I absolutely agree with that. I certainly agree with that. One of the initiatives that we are pursuing in the Department, and have been and now are reaching a point where we will greatly accelerate our work, is looking at our whole acquisition process. Can we improve our ability to set requirements in reliable ways that allow effective contract mechanisms? Do we have the kind of program management and oversight for those contracts as well, again, building on work that has been done previously. So what I can tell you is that through efficiency reviews that the Secretary has ordered over the past 18 months, we have saved over $100 million, and we look forward to sharing those details shortly. Senator Brown. Well, the comment, can you do this, yes, you can do it. You can do these things. Every agency can do these things. I tell you, the rhetoric--we have saved $100 million here--with all due respect, $100 million in Washington is nothing. We are talking billions here. I would like to see some real savings. And can you do it? Yes, you should do it, and so should every other agency make it their No. 1 priority to start saving taxpayer dollars and putting them where it is effective. And with regard to closing borders, yes, you should jump on Arizona and get that squared away right away because until the borders are secure in our country, how do we address all the other issues that flow down from that? I thank you, Mr. Chairman. I have other questions, but I have to get to the other hearing. Chairman Lieberman. Thanks, Senator Brown, very much for coming by and for asking those questions, and we will enter your other questions in the record. We will go to a second round of questions now. Ms. Lute, I know you have explained that the Bottom-Up Review includes 44 initiatives and enhancements that have been recognized by the Department as priorities for the next 4 years. I understand, of course, that not every worthwhile project can be included in the list of priorities, but there are a couple that are omitted that are troublesome to me, and the one that I particularly want to ask about is rail and transit security because the fact is it seems to me that the Secretary and now John Pistole coming in at TSA have pledged to give more attention than has been the case in the past to rail and transit security. So I want to ask you why rail and transit security was not highlighted by either the QHSR or the BUR and what DHS plans to do to address those non-aviation forms of transportation, which, of course, in other countries have been attacked by terrorists and in our country in the case of Zazi were intended targets for attack? Ms. Lute. Mr. Chairman, we think we do identify mass transit, rail, and other transportation infrastructure as key, obviously, to the security of this country. We also highlight the vulnerability of these systems, recognizing that many of the systems exist in private sector hands. We highlight our awareness of the vulnerabilities of these systems to terrorist attacks. We have been and we will continue to work with the private sector in a concerted effort and also with the American public. The launching of the nationwide campaign built on the New York model of ``See something, say something'' is precisely designed to enlist the extraordinary capacity of the American public as well. And so we do believe that transportation security involves far more than aviation. Aviation is a priority. It will be something that we are stressing. The Secretary has been working, as you well know, through the beginning of this year on a stronger international aviation security regime because we know that if you have access to any part of the system, you potentially have access to the entire system, and we need to work on that as a priority matter. Chairman Lieberman. I appreciate that. So I take from your statement that rail and transit security, notwithstanding the particulars of those 44, remains a priority for the Department. Ms. Lute. Absolutely. Chairman Lieberman. Let me ask you about a couple of the structural changes that are called for in the Bottom-Up Review, which I found interesting. The first is the call for a ``single coordinating entity'' across the Department for counterterrorism activities. I know that in March of this year, Secretary Napolitano designated the Under Secretary for the National Protection and Programs Directorate, Rand Beers, as the DHS Coordinator for Counterterrorism. I wanted to ask you just to talk a little bit about why the BUR and you conclude that this is necessary and how you think it will help the Department achieve its mission of protecting our homeland security. Ms. Lute. Thanks, Mr. Chairman. What we are trying to achieve in our preventing terrorism and counterterrorism agenda is an ability to leverage all parts of the Department as relevant for addressing the terrorism threat and also to leverage in turn a whole of government approach where necessary to do so. It is very clear to us that beneath the level of the Secretary and myself, there does need to be a coming together and an ability to coordinate the various activities--CBP, TSA, etc. This is something that the Secretary takes very seriously, I take very seriously, and an enormous amount of our time is spent on ensuring that this country is protected against another terrorist attack. We believe also that we need to look in a very deliberate way at the tools that are available to us to prevent terrorism here domestically. We have our border tools. These are key and essential, as I mentioned earlier. We have law enforcement tools, not only the law enforcement resources that exist in our Department and the FBI and other parts of the Federal system, but also, importantly, the 800,000 State and local law enforcement entities as well. We have intelligence and information sharing, as we previously discussed, and we have the American public. So pulling all of these things together is something that we are working on. The designation of a coordinator is an interim solution pending a final review of how best to organize the Department to achieve these synergies. Chairman Lieberman. Good. Keep us posted on your work on that. The other proposal that I wanted to talk about, which I think makes sense and yet I also think will have some problems in being implemented, is the idea of realigning the various regional configurations within the components of the Department of Homeland Security into a single Department of Homeland Security regional structure. So what are we talking about? DHS units have seven different regional structures. The Coast Guard may have one, CBP may have another, and FEMA may have another. Obviously, one of the challenges in creating a single regional system for the Department is that the components' distinct organizations may in some cases have developed particular organizational needs. For instance, the Coast Guard's districts are typically focused on the coastal United States with a single large district covering much of the inland United States, while Customs and Border Protection's regions obviously reflect the importance of the border. In carrying out this recommendation, how are you going to balance these two public interests? Ms. Lute. You are absolutely right, Mr. Chairman. On the one hand, the existence of seven separate, different regional structures in addressing homeland security issues in the United States seems excessive. On the other hand, we do not believe in a simple one size fits all approach, unmindful of the particular needs, and you mentioned the two components that are the most geographically fixed. Chairman Lieberman. Right. Ms. Lute. So as we proceed forward, we would look to work closely with this Committee and other Members of Congress to achieve the kind of regional structure and approach that allows us to achieve the integration of homeland security efforts and mission accomplishment, mindful of the realities on the ground. Chairman Lieberman. So it is probably going to be hard to have a single departmental regional structure. Ms. Lute. It may be hard---- Chairman Lieberman. Although you can certainly have less than seven. Ms. Lute. But we think certainly it is something that we need to look at. Chairman Lieberman. I appreciate that. Thank you. My time is up. Senator Collins, welcome back from the Appropriations Subcommittee meeting. Senator Collins. Thank you, Mr. Chairman, and thank you for explaining my absence as well. Ms. Lute, let me start where the Chairman just left off. I do believe that there are efficiencies and cost savings that can be achieved by consolidating some of the regional offices of DHS. But the Chairman's point about the Coast Guard is a very important one. Obviously, there are some regional offices where the Coast Guard's role is minimal, but on the coasts of this country, the Coast Guard is absolutely essential, and trying to shoehorn the Coast Guard into a broader DHS office may end up costing money and decreasing the effectiveness of the Coast Guard. Another agency, however, that you also need to take a close look at what you are doing in that area is FEMA. One of the lessons of the extensive investigation we did into the failed response to Hurricane Katrina was that there needed to be a regional FEMA presence that worked collaboratively all year round with its State, local, and other Federal partners and with the private sector, exercising together, planning together. As we found out during Hurricane Katrina, in the midst of a disaster is no time for people to be meeting each other for the first time, and yet that is exactly what we found. And that is why, as part of our FEMA reform bill, we specifically established FEMA regional offices. How do you see FEMA fitting into your consolidation of regional offices? Ms. Lute. Thanks, Senator. Craig Fugate and I have talked a lot about this because I could not agree with you more. When I was in the Army, we used to say that you fight like you train, and that is certainly true for crisis response. A crisis is no time to put together an ad hoc organization in haste. Relationships matter and an understanding of capabilities matters and an understanding of the geography, the access, the particular needs of a community matters, and regions will not substitute for the State and local knowledge that exists, but these regions have to be important complements and points of synergy and leverage, as this Committee knows very well. I have asked CBP and Coast Guard to begin the process of looking at whether and how we could consolidate some of our regional structures together with FEMA. Obviously, this bears on all of the operating components, as well, because they all have regional structures. But we do believe that we can consolidate some of the literally thousands of facilities that DHS has across the country. Senator Collins. I think that is absolutely the case, and you can save money and actually enhance efficiency if the agencies are co-located in many cases. But I would caution you against assuming that what works in Arizona for a regional office will work in New England. The needs and the roles of the various DHS agencies are extremely different depending on what region you are talking about. One of my frustrations with the Department and, frankly, with the Bottom-Up Review is that there are longstanding problems, which precede this Administration, that the Department still is not tackling and solving. And I want to give you two examples. At a hearing that our Committee held last month, the GAO testified that the Department still lacks a strategic plan for the screening of illicit nuclear and radiological materials that could come across our borders. The GAO first identified this necessity more than 7 years ago. Now, the QHSR does state that one of the Department's goals is to ``prevent the unauthorized acquisition or use'' of nuclear and radiological materials along with biological and chemical weapons. But the Bottom-Up Review does not provide the kind of strategic direction that GAO identified 7 years ago and that our Committee has repeatedly pushed. And the lack of that plan has directly caused DHS to waste money, hundreds of millions of dollars, and to go off in one direction 1 year and another direction the other year. It disappoints me that rather than completing this plan, the Bottom-Up Review just states that DHS will ``leverage the full range of capabilities'' and ``increase its leadership role.'' Those are just buzz words. They do not substitute for the kind of plan for which the GAO has been calling for 7 years. When will DHS complete that important strategic plan? It is hard to think of something more pressing than making sure that radiological, nuclear, chemical, and biological weapons are not smuggled into this country. Ms. Lute. Senator, I agree with you. The BUR does identify as an initiative that we will increase efforts to detect and counter these dangerous weapons and dangerous materials, but how we will do that is the heart of your question. I have just convened a series of meetings on exactly this issue. I will chair a working group within the Department to generate a concrete plan for us to present--and we look forward to working closely with this Committee on that plan--on how the Department can play its role in reducing the risk of nuclear terrorism, the terrorism associated with these most dangerous weapons. In order to do that, we know that we must anticipate threats and protect against hostile use. In order to do that, we know we must ask: Who are the individuals seeking to acquire this? Where does this material exist? What are the lines of communications? What are the methods by which these individuals would seek to bring this material into this country? And what are the right strategies, leveraging, again, all of the resources that exist in the United States to protect against that? Senator Collins. So when will the plan be completed? Ms. Lute. We are in the process of working on it, Senator. I cannot give you a precise month, but I will go back and as a matter of urgency set a timeline and be in touch with you. Senator Collins. Thank you. Chairman Lieberman. Thanks very much, Senator Collins. Senator McCain, good morning. OPENING STATEMENT OF SENATOR MCCAIN Senator McCain. Good morning, Mr. Chairman. I was just looking at Appendix 1, the list of Bottom-Up Review initiatives and enhancements, and I must say that it is a wonderful and impressive list. For example, I guess, one is enhance the DHS workforce. That is a good idea. Increase analytic capability and capacity. That is a good idea. There are really a lot of great ideas here, I would say to the witness, and I would love to see some actual accomplishments that have been achieved over the last 7 years or the last year and a half of this Administration as to how ``enhance the DHS workforce'' has taken place. And I was struck by, for example, number 17, comprehensive immigration reform. Now, maybe you could fill me in on what your agency is going to do as its initiative or enhancement of comprehensive immigration reform. Ms. Lute. Senator, as you know, the President has made clear his desire to pursue comprehensive immigration reform. The Secretary has talked about it equally. The enhancements that we talk about---- Senator McCain. So is that an initiative or an enhancement? Ms. Lute. The comprehensive immigration reform is an initiative of the Administration. If I were to talk about the enhancement of the---- Senator McCain. I thought this was not an Administration initiative. I thought this was a Bottom-Up Review of the homeland security initiatives and enhancements. So you are just saying that is an overall Administration goal, so, therefore, it is your goal. Is that what you are saying? Ms. Lute. The Department discharges the responsibility for administering and enforcing the immigration laws of this country, Senator, as you well know, and this is an important feature of the way going forward---- Senator McCain. That is your job, to enact comprehensive immigration reform? That is your initiative? Ms. Lute. No. I apologize if I misspoke. What I said is we have the responsibility to administer---- Senator McCain. To administer. Ms. Lute [continuing]. And enforce the immigration laws. Senator McCain. But not take the initiative. Look, the point is that this list here is really entertaining. Strengthen aviation security, create an integrated departmental information-sharing architecture. I would like to know what has been done in the last 7 years of these lists of initiatives and enhancements. Dismantle human smuggling organizations. There is nothing in this that anyone could argue with except that we would like to see some results. Apparently, the size of your organization continues to grow, and there seems to be arguments that our border is ``as secure as it ever was'' while the terrorism and violence on the other side of the border continues to grow, the latest being the car bombing in Juarez. And so these are enhancements and initiatives. What I would like to see, Mr. Chairman, is what the Homeland Security Department has done to carry out these motherhood-and-apple-pie initiatives and enhancements. And for you to come before this Committee and say that this is a list of initiatives and enhancements, I think, is laughable. And I would hope that maybe we would, as a Committee, demand that we know what the actual results are of these motherhood-and-apple- pie initiatives. If I were you, I would be a little embarrassed to come before this Committee with this kind of a list of initiatives and enhancements, which are, at least according to your testimony so far, that we all agree that we ought to do better. I have not heard yet a single concrete example of what you have done to make these initiatives and enhancements a reality. And maybe you could supply those for the record. Ms. Lute. I would be happy to, Senator. Chairman Lieberman. Senator McCain, as you can hear from statements that I made earlier, and Senator Collins did, too, the BUR statements are general, they are vague. Let me ask you because it is my understanding, both from what you have implied here today and what the Department has said to our staff, that there are implementing directives to all 44 of these that are being circulated in the Department. Is that right? Ms. Lute. We are working on all of these initiatives, Senator, to give a concrete path forward on them, some of which, as I mentioned earlier, we will prioritize for the 2012 budget submission when the President presents that. These are initiatives that we believe over the quadrennial speak to areas that would be high-priority areas of focus for us in strengthening our ability to execute the mission sets that we have outlined in the QHSR, which we think are central to achieving the vision that we have outlined. Chairman Lieberman. There is nothing classified about those implementation plans. So as you get them together, I think it really would be helpful to the Committee if you would send us copies of them because the state of the document now is unsatisfying because it is unclear because of its lack of detail. Senator McCain. Mr. Chairman, could I also suggest that maybe the Department of Homeland Security should look at what the Department of Defense does on the Quadrennial Defense Review where there are specifics as to what initiatives need to be taken, what action has been taken, and what needs to be done. I have been around here a long time. This is one of the more remarkable things that I have ever seen, and, frankly, it is kind of disrespectful to the jurisdiction of this Committee to hand us a paper like this and expect that to be in any way helpful to us in our oversight responsibilities of what is now growing to be one of the largest agencies of government. Chairman Lieberman. The idea of the comparison to the QDR is an important one. Actually, Senator Collins mentioned it in her opening statement, and I would urge you to take a look at that and respond. Senator Collins, you missed a round, so I want to give you the opportunity to ask some more questions at this point. Senator Collins. Thank you so much, Mr. Chairman. Most of them I will submit for the record so that I am not holding everyone up, but there are a few that I do want to pursue. Ms. Lute, I mentioned my disappointment at the lack of a specific plan for dealing with the nuclear and radiological weapons smuggling. But I want to give you another example of an area that this Committee identified first in June 2008, again in 2009, and again, the two reports you have provided do not have any specifics for correcting the problems. It is very frustrating that over and over this Committee has brought to the Department's attention severe shortcomings, and yet there is no sense of urgency on the part of the Department. In this case, it has to do with the Federal Protective Service, and what we found is that GAO did a series of covert tests that revealed serious security vulnerabilities of Federal buildings with explosive devices easily being smuggled into 10 Federal buildings. And it is now 2010, 2 years later from when these problems were first brought to the Department's attention, and yet all that DHS says in the BUR report is that it ``now proposes to undertake a major redesign of the Federal Protective Service.'' It is extremely frustrating to me to have a serious problem brought to the attention of the Department 2 years ago and all that is in the BUR is a statement saying that the Department now proposes to undertake a redesign. Why are we not further along? Ms. Lute. Senator, I hear your frustration on the issue of why we are not further along. I can assure you that the Secretary and I and the leadership of the Department come to work every day with a sense of urgency about all of the missions that we have in homeland security. The Federal Protective Service, as you know, was just placed into the National Protection and Programs Directorate (NPPD), and as a consequence of that movement, of these reports that have come to light, and of our sense of the importance of the mission, the organization, the nature of the workforce, the training, etc., we have an obligation to present a comprehensive plan to bring the Federal Protective Service to the level of performance that everyone has a right to expect. Senator Collins. Well, again, I want to see specific action in that area as well. Let me switch to cybersecurity, an issue that I think is of great priority, and I was pleased to see that it is identified as one of the five primary missions of DHS by your review. Do you agree that the Department needs new authorities and resources to perform its cybersecurity mission? Ms. Lute. We do think that the Department's ability to discharge its cybersecurity mission would be enhanced by those, yes. Senator Collins. The Department's budget request for the cybersecurity division for fiscal year 2011 is $19 million less than it was funded for this fiscal year. Do you anticipate that the Department will request additional funding for cybersecurity for the fiscal year 2012 budget so that you can fulfill this mandate? Ms. Lute. Without giving you a specific answer, Senator, we could. What we want to look at in our cybersecurity mission is precisely how do we fill out the space that we have been given with respect to responsibilities for securing the dot-gov and extending into the dot-com domain as well. How do we leverage the resources and existing capabilities across the Department? How do we work most effectively with the private sector in this regard? I mentioned earlier that doing something like the QHSR and the BUR takes nerves of steel. When we elevated cybersecurity to one of the five key missions of Homeland Security, there was quite a reaction--surprise. Senator Collins. From whom? Ms. Lute. From a number of stakeholders across the country. Surprise--as if people had not really been thinking about it as an element of our homeland security. And so the simple articulation of the mission alone achieved a kind of effect we were hoping to achieve, which is to create a culture of awareness, a culture of responsiveness and engagement on this important and critical mission. So as we build out the Department's capabilities in this regard, again, understanding that we are largely an operational Department, we will prioritize what our requirements are in the 2012 budget. Senator Collins. And, finally, I know that the Chairman brought up concerns about the Intelligence and Analysis Office's reliance on contractors. I want to talk about another issue with that office. A very important function of that office is to share information with State and local officials and first responders. As you may be aware, the Appropriations Committee put a rider on the office that fences in some of the spending and, more troubling to me, attempts to limit what the office can do by saying that it should only produce reports that are unique-- I am overstating it slightly, but it constrains the ability of the office to serve its customers because it says if there is any duplication, someone else should do it. Have you looked at that language? Ms. Lute. I have, Senator. Senator Collins. And do you have concerns about it? Ms. Lute. I do have concerns, Senator. The value proposition of our I&A office is to equip the homeland security enterprise with the information and intelligence it needs throughout the whole enterprise, including State and local officials, and that important, as the Chairman mentioned earlier, two-way sharing of information is so essential to the discharge of our missions. Senator Collins. I would strongly encourage you and the Secretary to put your concerns in writing to Senators Dianne Feinstein and Christopher Bond, who initiated the proposal. Unfortunately, it was not cleared with our Committee, but we are going to work with the sponsors and with other members of the Appropriations Committee to try to clarify it. It would be helpful for us to have a letter from you expressing the concerns and for the appropriators to have it as well. And as someone who sits on both committees, as does Senator Voinovich, I think you can be assured that we would attempt to try to resolve these issues. Ms. Lute. Thank you. Senator Collins. I will speak for myself actually on that, but I know the Chairman and I have discussed it. Ms. Lute. Thank you. Senator Collins. Thank you. Thank you, Mr. Chairman. Chairman Lieberman. Well, as usual, you can speak for me, too. I agree. It was actually a misunderstanding between me and one of the members of the Appropriations Committee, and I believe it was reflected at the Appropriations Committee markup that I supported this amendment, which I did not. And I am worried that it actually conflicts with existing law in terms of the authorities of the intelligence section of the Department of Homeland Security and will inhibit the capacity of the Office of Intelligence and Analysis at DHS to be of help to the Secretary, you, the other components of the Department, and most critically, as we have talked about, State and local law enforcement officials around the country. So I think I am going to work with Senator Collins and our colleagues on the Committee on this, but I want to second her request that the Secretary and you send a letter to the appropriators to let them know that this is not a good move on their part. Ms. Lute. Thank you. Senator Collins. Thank you, Mr. Chairman. Chairman Lieberman. Thank you, Senator Collins. I think we have cross-examined you enough generally within the Geneva Convention. I think we have not gone beyond those rules. Thanks for your effort on this. I think you have done a lot of constructive work, but on the BUR, the take-away is we really need more details. I think you are heading in a good direction, but it is hard for us to really judge until we see those implementing plans. I gather that the third part of this three-part approach to the look forward is the details that will come with the fiscal year 2012 budget, right? Ms. Lute. Yes. Chairman Lieberman. And that is where you hope to show us how you are going to implement it. Ms. Lute. Exactly, Mr. Chairman. As I mentioned earlier, one of the lessons learned is that the timing of a QHSR exercise, like such as was envisaged, is important. And we are conforming to the budget submission process, and then that is, as we have spoken about over 18 months, the third part of the exercise. Chairman Lieberman. I really want to ask that as you make more specific the implementation plans for these 44 initiatives and enhancements, you send copies to Senator Collins and me, and we will circulate them to the Committee, so that we will not have to wait until the budget is submitted next year to understand how you are going forward with some of these. Ms. Lute. We look forward to working very closely with both of you and with the Committee. Chairman Lieberman. Thank you. The record of the hearing will stay open for 15 days for additional statements and questions. With that, I thank you, Ms. Lute, and adjourn the hearing. Ms. Lute. Thank you. 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