<DOC>
[109 Senate Hearings]
[From the U.S. Government Printing Office via GPO Access]
[DOCID: f:23162.wais]
S. Hrg. 109-310
NOMINATION OF EDMUND S. ``KIP'' HAWLEY
=======================================================================
HEARING
before the
COMMITTEE ON
HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
ONE HUNDRED NINTH CONGRESS
FIRST SESSION
ON THE
NOMINATION OF EDMUND S. ``KIP'' HAWLEY TO BE ASSISTANT SECRETARY OF
HOMELAND SECURITY FOR THE TRANSPORTATION SECURITY ADMINISTRATION,
DEPARTMENT OF HOMELAND SECURITY
__________
JULY 18, 2005
__________
Printed for the use of the
Committee on Homeland Security and Governmental Affairs
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COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
SUSAN M. COLLINS, Maine, Chairman
TED STEVENS, Alaska JOSEPH I. LIEBERMAN, Connecticut
GEORGE V. VOINOVICH, Ohio CARL LEVIN, Michigan
NORM COLEMAN, Minnesota DANIEL K. AKAKA, Hawaii
TOM COBURN, Oklahoma THOMAS R. CARPER, Delaware
LINCOLN D. CHAFEE, Rhode Island MARK DAYTON, Minnesota
ROBERT F. BENNETT, Utah FRANK LAUTENBERG, New Jersey
PETE V. DOMENICI, New Mexico MARK PRYOR, Arkansas
JOHN W. WARNER, Virginia
Michael D. Bopp, Staff Director and Chief Counsel
Jennifer A. Hemingway, Professional Staff Member
Joyce A. Rechtschaffen, Minority Staff Director and Counsel
Adam R. Sedgewick, Minority Professional Staff Member
Trina D. Tyrer, Chief Clerk
C O N T E N T S
------
Opening statement:
Page
Senator Collins.............................................. 1
Prepared statement:
Senator Akaka................................................ 9
WITNESS
Monday, July 18, 2005
Edmund S. ``Kip'' Hawley, to be Assistant Secretary of Homeland
Security for the Transportation Security Administration,
Department of Homeland Security:
Testimony.................................................... 2
Prepared statement........................................... 10
Biographical and financial information....................... 12
Responses to pre-hearing questions........................... 18
Responses to additional pre-hearing questions from Senator
Lieberman.................................................. 67
Responses to post-hearing questions.......................... 71
NOMINATION OF EDMUND S. ``KIP'' HAWLEY
----------
MONDAY, JULY 18, 2005
U.S. Senate,
Committee on Homeland Security
and Governmental Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 2:50 p.m., in
room 562, Dirksen Senate Office Building, Hon. Susan M.
Collins, Chairman of the Committee, presiding.
Present: Senator Collins.
OPENING STATEMENT OF CHAIRMAN COLLINS
Chairman Collins. The Committee will come to order.
The Committee will now consider the nomination of Edmund S.
``Kip'' Hawley to be the Assistant Secretary of Homeland
Security for the Transportation Security Administration. This
is a vitally important position, made all the more important by
the changes he would have to oversee, if confirmed, in
connection with Secretary Chertoff's Second Stage Review of the
Department.
TSA was established by the Aviation and Transportation
Security Act of 2001. TSA was handed a great challenge under
extraordinary circumstances.
Despite progress, however, troubling vulnerabilities
persist in our aviation and other transportation systems. The
integrity of airport workers with access to sensitive areas is
still not assured, and general aviation, which comprises
approximately 77 percent of all flights into the United States,
remains largely unprotected.
In addition, efforts to secure our other modes of
transportation appear to be lagging. Our Nation's seaports may
well present our single greatest terrorist vulnerability, and,
as the attacks last year in Madrid and just 2 weeks ago in
London demonstrated, railroads and other commuter
transportation systems are prominent targets. Looming over the
many specific deficiencies is the lack of a comprehensive
national transportation security strategy.
On top of these remaining challenges come the
recommendations of the Department's Second Stage Review. The
overall thrust of the recommendations to create a more unified
and streamlined Department with improved information sharing
and coordinated strategic planning is commendable. TSA will be
an integral part of this restructuring.
In addition to resuming operational responsibility for the
Federal Air Marshals' Service, TSA would be given the
responsibility to harden our transportation infrastructure in a
more aggressive manner.
Mr. Hawley has a strong background to carry out these vital
responsibilities. In October 2001, he was appointed by
Transportation Secretary Mineta to be senior advisor for the
project team that established TSA. He currently serves on the
Federal Aviation Administration's Air Traffic Services
Committee, and has served on the National Commission on
Intermodal Transportation and the Commercial Space
Transportation Advisory Committee.
In the private sector, Mr. Hawley has worked as a supply-
chain technology consultant, as the CEO at a global trade
management company, and as Vice President for Transportation
Services at Union Pacific Railroad--clearly an impressive
background.
I welcome the nominee to the Committee, and I look forward
to his testimony.
I would like to first swear in the witness, as our
Committee rules require. Please raise your right hand.
[Witness sworn.]
Chairman Collins. Mr. Hawley, I believe that you have
family members present with you today, and I would ask that you
introduce them to the Committee.
Mr. Hawley. Thank you, Chairman Collins. My wife, Janet. My
son, Chris. Our older son, Nick, is working in Charlotte, and
my sister, Victoria, and her son, Henry, are representing the
rest of my family watching on the Internet.
Chairman Collins. We are very pleased to welcome you all to
the Committee hearing today.
Mr. Hawley has filed responses to a biographical and
financial questionnaire, answered pre-hearing questions
submitted by the Committee, and had his financial statements
reviewed by the Office of Government Ethics.
Without objection, this information will be made part of
the hearing record, with the exception of the financial data,
which are on file and available for public inspection in the
Committee's offices.
Mr. Hawley, I would ask that you proceed with your
statement at this time.
TESTIMONY OF EDMUND S. ``KIP'' HAWLEY,\1\ TO BE ASSISTANT
SECRETARY, U.S. DEPARTMENT OF HOMELAND SECURITY
Mr. Hawley. Thank you, Chairman Collins and distinguished
Members of the Committee.
---------------------------------------------------------------------------
\1\ The prepared statement of Mr. Hawley appears in the Appendix on
page 10.
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I'm very honored to be here today and thank the Committee
for your prompt consideration of my nomination. I am also very
grateful to President Bush for nominating me to this position.
In the interest of time, I have submitted testimony, and
I'd like to highlight a few areas where Secretary Chertoff's
Second Stage Review that was announced last week would apply to
TSA.
And first off, it's in the area of direction. I think the
Secretary has made very clear direction for the Department that
applies to TSA in terms of making its operations an investment
related to risk and use that in a disciplined way to help set
our priorities.
It also allows the many great people at TSA a chance to
think anew about the mission of the agency and how we
accomplish it, and I look forward to working with the many
people at TSA who have these ideas and are very interested to
get those out front. And I am very mindful of the fact that TSA
has outstanding people from the current leadership, as well as
all the way up and down the chain.
And I just highlight one area where that's an example, and
that is I've had the opportunity to talk to employees at all
levels, and screeners have told me that the injury situation
that exists at TSA is not only bad from an injury perspective,
but applies to the security product as well, and that it takes
people away from active duty and puts pressure on other
employers, which does make it more difficult for the others to
do their work.
So this screener was indicating that by driving down the
injuries that happen to TSA that can elevate the level of
security. So it's that kind of thinking that I'd like to think
at all levels can bring themselves to the front and that based
on Secretary Chertoff's Second Stage Review, that gives us a
new framework and architecture to do that.
And in conclusion, I'd say that I know a lot of words have
been used, and I'm going to be using only words today, and that
Secretary Chertoff and the Committee and the Congress are
looking for results, and, if confirmed, that would be my
priority.
And so I thank you, Madam Chairman.
Chairman Collins. Thank you very much for your statement.
I want to start my questioning with the standard questions
that we ask of all nominees.
First, is there anything you are aware of in your
background that might present a conflict of interest with the
duties of the office to which you have been nominated?
Mr. Hawley. No.
Chairman Collins. Second, do you know of anything personal
or otherwise that would in any way prevent you from fully and
honorably discharging the responsibilities of the office?
Mr. Hawley. No.
Chairman Collins. Third, do you agree without reservation
to respond to any reasonable summons to appear and testify
before any duly constituted committee of Congress if you are
confirmed?
Mr. Hawley. Yes.
Chairman Collins. Thank you.
Mr. Hawley, I want to bring up first an issue that has been
the subject of a great deal of press lately and has generated a
great deal of concern in my mind as well as in general on
Capitol Hill, and it has to do with the contract that TSA
awarded to NCS Pearson to help set up the Federal Screening
Workforce.
Now, first, let me say that I recognize that the deployment
of the TSA workforce at airports was a considerable
accomplishment. Congress set a very aggressive deadline. TSA
met that challenge, and, starting from nothing, and was able to
recruit 129,000 individuals and deploy a screening workforce at
429 airports across the country in 40 weeks.
I am concerned that in the race to the finish line, corners
clearly were cut. TSA hired the Defense Contract Audit Agency
(DCAA) to audit the contract with NCS Pearson. At the time of
the award of the contract, its estimated value was $103.4
million. At the final settlement, the contractor received $741
million, an absolutely astronomical increase.
I don't want to jump to conclusions about that overall
figure, but DCAA clearly could not verify the reasonableness of
the costs, nor the payments to the contractor from TSA, and
reported many cases of what appeared to be highly questionable
expenditures.
I am concerned that in our rush to address security needs
that the appropriate checks and balances are not always in
place to ensure that the taxpayers' investment is protected. So
I have two questions for you as a starting point.
First, since you were at the Department part of the time,
did you play any role in the NCS Pearson contract and screener
hiring?
Mr. Hawley. Sure. The short answer is no. We looked at the
requirements put in place for the Department of Transportation
by ATSA, and it was clearly evident that in order to reach the
goals by the timelines that a lot of people had to be hired in
a lot of places very quickly. My role at the beginning was
trying to figure out the sequencing of the various tasks and
how to line them up so that they would all come together at the
right time and meet the deadlines with the proper operational
integrity if you will.
For the hiring of the screeners, our first priority was to
get the management team in place so that the Federal security
directors, i.e., the lead TSA person at the airports were
really the first hiring priority. But right behind that, when
those people were in place, the idea was to get started right
away with the hiring process for the vast majority of the
people.
So I worked with what we then called go teams to look at
those issues and to schedule them, but at the point at which
they were turned into actual go on the street contract bids
that went over to the acquisitions area, and I never saw it
again.
So I'm familiar with the idea that we needed to hire a lot
of people very quickly and that a contract was going out that
subsequently was NCS Pearson. But I was not involved in the
actual contract in any way.
However, I'll wait for your second question. Yes, ma'am.
Chairman Collins. I think you have anticipated it, which is
what will you do to ensure better contract management by TSA?
Mr. Hawley. Yes, I think that a lot of the leadership of
TSA since that time have got a great head start on it, and, as
Rick Skinner mentioned in the previous hearing, TSA has brought
up now over 70 acquisition officers and has really got a
disciplined program for program managers, certified program
managers, investment review boards, and executive leadership
review. And from last week's Second Stage Review announcements
from Secretary Chertoff, it was crystal clear certainly to me
and I think anybody watching the very high priority he puts on
acquisition excellence and stewardship of public trust.
So certainly from the leadership team at DHS, this is a
critical priority, and it certainly, if confirmed, would be one
for me as well.
Chairman Collins. Thank you. In your written responses to
the Committee's questions, you noted the need to allocate
resources to the greatest areas of risk within TSA's budget,
and that is an issue and a theme the Secretary has also
emphasized.
Do you believe that we have over-invested in aviation
security at the expense of other modes of transportation?
Mr. Hawley. We certainly have invested a great deal in
aviation. I think that the experience following the London
attacks shows the excellent work that has been done around the
country, not dictated by the Federal Government, but undertaken
by private sector, State and local communities, specifically
transit agencies, in working originally with Department of
Transportation and the Federal Transit Administration to do
risk assessments and start doing contingency planning that over
the last 3 years, again working with DHS and TSA, that these
communities across the country did, in fact, have those plans
in place, and were, in fact, ready for a pretty quick run up
when word came of the London bombings.
And the Secretary talked a lot in the Second Stage Review
about working in partnership, and I think the London experience
indicates that the Secretary did not slap a Federal requirement
immediately. I think his assessment was that the local
communities immediately jumped to a heightened level that was,
in fact, effective.
And I note that his--when he raised the alert level from
yellow to orange was specific to the transit sector. And one of
the byproducts from that, which maybe hasn't been noticed a
lot, but I think is highly significant, is that by not making
everybody rise to the orange level, that then meant in local
communities and with the Federal and State agencies there were
resources that became available to offer to transit. So the
transit not only itself went up to its orange level, but other
areas had resources that they were then able to supplement
transit as needed.
And I'm told that some of the feedback from that experience
that that was a very positive thing.
Chairman Collins. That is a good segue into my next
question for you, which concerns the Secretary's controversial
comments last week about the value and responsibility of
aviation security versus mass transit. As you weigh all of the
responsibilities under you, how are you going to allocate
resources? What do you see as our greatest risks?
Mr. Hawley. Well, I look at the job of TSA reflecting what
the Secretary said last week that there are really three
things. One is to make sure that the transportation systems in
the United States are not used to make a catastrophic or an
attack with catastrophic consequences against the United
States, and the second would be to make sure that no matter
what happens in terms of terrorist attack, the transportation
network of the United States continues to function and to do
the above two without disrupting unduly the American way of
life in terms of privacy and efficiency and the economy.
That would be kind of the guiding light and that the
Secretary announced also with the threat matrix approach at the
Department that they're working on, and, if confirmed, I will
work with the TSA on the ones that are within the
transportation sector.
Chairman Collins. How high a priority is it for you to get
the TWIC card, the Transportation Workers Identification
Credential, in place? I have to tell you in the hopes of
biasing your answer that I have been very frustrated about the
repeated delays in implementing a project that makes all the
sense of the world and that is not blocked by technology. I
mean there are some issues where we haven't proceeded because
the technology hasn't caught up with the concept.
In this case, the technology is there, but the will to get
it done seems to have been absent from the Department.
Mr. Hawley. Very high priority that whole area, and I think
the Secretary illuminated in the 2SR his thinking in terms of
using technology across the whole Department to arrive at a
solution in one area that would apply to others and I think the
U.S.-VISIT experience of technology and the fact that U.S.-
VISIT is within the Department and has some capability with
fingerprints. But when you look at secure flight and the
registered traveler, and the TWIC card, and HAZMAT driver's
licenses, all of those things have a component of using
technology information to assure identity and assess risk. And
that if the Department is able to build a foundation that
respects privacy and is recognized broadly by the public that
what DHS is doing in this area is respectful of privacy, that
then the solutions that maybe are in one area you could use the
system gains there to solve the other problems. And that I
think, if confirmed, from my perspective at TSA, being able to
sort the passengers, if you will, with some estimate of risk,
to put more focus on the greater risk passengers and less on
those that do not pose a risk that helps across the board. It
helps with budget. It helps with security, and certainly the
TWIC card is an essential element of that issue.
Chairman Collins. In March of this year, the GAO reported
that, ``TSA has recognized that Secure Flight has the inherent
potential to adversely affect the privacy rights of the
traveling public because of the use of passenger data and has
begun to take steps to minimize potential impacts on passengers
and to protect passenger rights during the testing phase.
However, TSA has not yet clearly defined the privacy impacts of
Secure Flight in an operational environment or all of the
actions TSA plans to take to mitigate potential impacts.''
Given that TSA's Secure Flight program intends to match
personal identification information collected by air carriers
against government watch lists, what steps do you plan to
ensure that privacy concerns are addressed?
Mr. Hawley. I think that's the first gate that you have to
pass through really before any others is to make sure that the
privacy aspects of dealing with data about passengers and
citizens at large that the privacy protections are in place
because I think it's obviously demonstrated that if there is a
problem in that area, it will come out at some point, whether
at the beginning or right when you're trying to implement a
program. So you have to have it properly built--the foundation
built on privacy before working out the rest of the problem.
So I think my approach to it is don't talk to me about how
we're going to do it until we know that we have the rules set
and a good comfort level that the privacy, legitimate privacy
rights are protected.
Chairman Collins. Finally, my office has received
complaints from travelers who have faced very severe penalties,
financial penalties, for inadvertently carrying prohibited
items to a screening checkpoint. Now, we all understand the
importance of the screening process. But in some cases, my
constituents have been faced with fines totaling thousands of
dollars for carrying something that they clearly shouldn't
have. It may have been a toy. It may have been some other
prohibited item, but it was caught. It was clear that they
didn't intend to do so.
That concerns me because we really need to have the
public's support for the screening process for it to be
effective. The public has been willing to put up with
considerable inconvenience and long lines, but if there are
very heavy fines imposed for behavior that is not intentional
and that caused no harm other than an extensive period of
questioning, I wonder if we are striking the right balance. Do
you have any response to that?
Mr. Hawley. Yes, I think the commonsense security is really
the way to look at it, and that, if confirmed, it would be a
very high and immediate priority to look at the security
regimes as respect what happens at the checkpoints and give
that a whole fresh look.
Clearly, the object of the drill is to find terrorists or
threats to aviation and to do so without unduly hassling the
rest of the American public. So I understand and respect the
point that you have made and will go forward, if confirmed,
with that in mind.
Chairman Collins. Thank you. I look forward to talking with
you after you are confirmed, which I am confident you will be,
about some of the other issues. I really commend Secretary
Chertoff for suspending the 30-minute rule of in and out of
Washington. That has made him a very popular individual with
frequent travelers. But there are many other concerns that have
come up repeatedly about the screening process, and I know the
men and women who are on the front lines as screeners are doing
their best, and they are doing a great job. But they are
following rules that at times don't make a lot of sense.
We also need to do a lot more work on the watch list to
make sure that it is a consolidated, reliable list with as high
quality information as possible. All of us have had
constituents who happen to have similar names or identical
names to people on the list who have found it extremely
difficult to fly. We have a lot of work to be done yet.
Mr. Hawley. Yes, ma'am.
Chairman Collins. Mr. Hawley, I very much appreciate your
appearing before the Committee today and your willingness to
leave the private sector to come back into the public sector
this time as a presidential appointee. And we appreciate the
sacrifice of your family as well.
Without objection, the record will be kept open until 10
a.m. tomorrow morning for the submission of any additional
written questions, statements, or materials for the record.
Again, thank you very much for being here today. I am very
pleased to lend my support to your nomination, and I hope we
can get you approved and in place as soon as possible.
Mr. Hawley. Thank you, Chairman Collins.
Chairman Collins. This hearing is now adjourned.
[Whereupon, at 3:16 p.m., the Committee was adjourned.]
A P P E N D I X
----------
PREPARED STATEMENT OF SENATOR AKAKA
Thank you, Chairman Collins. Mr. Hawley, I too welcome you and your
family to the Committee. Your family should be proud that you are
willing to serve your country to protect American lives, and I thank
them in advance for their sacrifice.
Mr. Hawley, you led the Department of Transportation team that
established TSA in 2001 and 2002, and I know you will bring this
experience into play as head of the agency.
I enjoyed meeting with you last week and as I mentioned, I have
four specific concerns to raise with you today. The first is ensuring
the privacy and civil liberties of travelers. TSA has been criticized
by privacy advocates and the Government Accountability Office over a
lack of transparency regarding the use of private contractors and
commercial data in Secure Flight.
The second issue is employee rights. Currently, TSA screeners do
not have the same labor and whistleblower rights as other employees at
DHS. I support granting full whistleblower rights to TSA employees, and
I hope you will agree with me.
My third concern is TSA's contracting practices. I recognize that
many of the reports of contractor waste date back to 2002 and 2003 when
the agency was being stood up. However, I am deeply troubled that TSA
may be allowing contractors to have too much control over contracts on
which they are bidding, thus creating a conflict of interest. You have
stated that TSA is seeking to increase staffing levels for contract
oversight, and I urge you to fill these positions with Federal
employees and not allow contractors to over see other contractors.
Lastly, I would like to point out that my home State of Hawaii is
2,500 miles from the U.S. mainland. Hawaii is uniquely dependent on the
air and sea for travel and commerce. Our airports have continually been
short passenger and baggage screeners and are still awaiting the
funding to install in-line Electronic Detection System (EDS) equipment.
Currently, the EDS machines sit in already crowded lobbies creating
congestion and necessitating the employment of more screeners to
operate the system.
I ask that you address these issues. Moreover, I ask you to
remember that accountability and transparency are essential keys to
successful administration. I look forward to working with you.
Thank you, Madam Chairman.
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