<DOC>
[109 Senate Hearings]
[From the U.S. Government Printing Office via GPO Access]
[DOCID: f:32357.wais]
S. Hrg. 109-871
NOMINATION OF PAUL A. SCHNEIDER
=======================================================================
HEARING
before the
COMMITTEE ON
HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
ONE HUNDRED NINTH CONGRESS
SECOND SESSION
ON THE
NOMINATION OF PAUL A. SCHNEIDER TO BE UNDER SECRETARY FOR MANAGEMENT,
U.S. DEPARTMENT OF HOMELAND SECURITY
__________
DECEMBER 6, 2006
__________
Available via http://www.access.gpo.gov/congress/senate
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Printed for the use of the
Committee on Homeland Security and Governmental Affairs
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
Brandon L. Milhorn, Staff Director
Jennifer L. Tarr, Associate Counsel
Michael L. Alexander, Minority Staff Director
Kristine V. Lam, Minority Research Assistant
Trina Driessnack Tyrer, Chief Clerk
C O N T E N T S
------
Opening statements:
Page
Senator Collins.............................................. 1
Senator Akaka................................................ 2
Senator Voinovich............................................ 4
Prepared statement:
Senator Lieberman............................................ 19
WITNESS
Wednesday, December 6, 2006
Paul A. Schneider to be Under Secretary for Management, U.S.
Department of Homeland Security:
Testimony.................................................... 7
Prepared statement........................................... 21
Biographical and professional information.................... 22
Responses to pre-hearing questions........................... 29
Letter from U.S. Office of Government Ethics................. 62
Responses to post-hearing questions.......................... 63
NOMINATION OF PAUL A. SCHNEIDER
----------
WEDNESDAY, DECEMBER 6, 2006
U.S. Senate,
Committee on Homeland Security
and Governmental Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 3:02 p.m., in
room 342, Dirksen Senate Office Building, Hon. Susan M.
Collins, Chairman of the Committee, presiding.
Present: Senators Collins, Voinovich, and Akaka.
OPENING STATEMENT OF CHAIRMAN COLLINS
Chairman Collins. The Committee will come to order.
Today, the Committee will consider the nomination of Paul
Schneider to be the Under Secretary for Management at the
Department of Homeland Security.
The mission of DHS is to provide a unifying core of
leadership and expertise for the national network of
organizations and institutions that work to secure our Nation
and to prepare for and respond to disasters of all types. The
Management Directorate is responsible for ensuring that the
Department's workforce has the resources and systems in place
to carry out this vital mission. The directorate works in a
variety of critical areas, from human resources and
administration to budgeting, procurement, and information
technology. The collective aim is for DHS components to have an
effective means of working with each other and with their
homeland security partners at the State and local levels.
In addition to its responsibilities for allocating human
and material resources, the directorate is charged with
identifying and tracking performance measures. This would be a
daunting assignment under the best of circumstances. In our
current situation, the phrase ``herding cats'' comes to mind.
As the Department of Homeland Security nears the end of its
fourth year of operations, the unifying core has not yet fully
taken shape. As the Committee's investigation of Hurricane
Katrina made so terribly clear, the goals of effective resource
allocation and coordination across all levels of government
continue to elude us. Grant programs remain mired in conflict
and controversy. The right balance between safe and secure
borders and the lawful movement of people and commerce has yet
to be realized. To be sure, progress is being made on all of
these fronts, but not at the pace our times demand.
The Committee's hearing just this morning on the enormous
waste, fraud, and abuse plaguing the recovery from Katrina
provided a stark reminder of what is at stake. As the reform
and strengthening of FEMA within DHS moves forward, the need
for effective resource allocation will become ever more urgent,
as will the need for solid and verifiable performance measures.
The Management Directorate will need a strong hand at the
helm. Paul Schneider appears to bring strong credentials to
this challenge. He began his career in public service in 1965
at the Portsmouth Naval Shipyard, which despite its name is
located in Kittery, Maine. He was a project engineer, and I am
sure that was indeed a very good start for his career.
He was appointed to the Senior Executive Service in 1981
and served as the Deputy Director of NAVSEA's Auxiliary Systems
Subgroup. He later served as the Executive Director and senior
civilian of the Naval Sea Systems Command and as the Principal
Deputy Assistant Secretary of the Navy for Research,
Development, and Acquisition. In 2002, he became the Senior
Acquisition Executive of the National Security Agency. Most
recently, Mr. Schneider served as a defense and aerospace
consultant.
He holds a degree in nuclear engineering--I guess that
would make him a rocket scientist after all, perhaps--and has
been recognized with Distinguished Civilian Service Awards from
the Department of Defense, the Navy, and National Security
Agency, as well as receiving various Presidential Rank awards.
I welcome Mr. Schneider to the Committee today, and I look
forward to hearing his testimony.
We are very pleased to have the Senator from Hawaii,
Senator Akaka, substituting for Senator Lieberman as the
Ranking Minority Member today. Welcome, Senator.
OPENING STATEMENT OF SENATOR AKAKA
Senator Akaka. Thank you very much, Madam Chairman. I am
honored to be in this position today. Before I get on with my
statement, I would like to, Madam Chairman, thank you so much
for your 4 years of leadership here as Chairman of this
Committee and guiding the Committee with the success of the
Department of Homeland Security. I really appreciate your
dedicated leadership, your promptness in action with issues of
the Committee, as well as your organization of the Committee. I
have enjoyed working with you----
Chairman Collins. Thank you very much.
Senator Akaka [continuing]. And look forward to continuing
to work with you, Madam Chairman.
I am pleased to join you, Madam Chairman, in welcoming Mr.
Paul Schneider, who has been nominated to serve as the Under
Secretary of Management for DHS. This is a pivotal position,
perhaps even more important than the Secretary's job because
the Under Secretary has line responsibility for ensuring the
Department performs its mission. Merging 22 agencies with
180,000 employees into a Department to carry out a common
mission is the single biggest challenge in the government
today.
As the Ranking Member of the Armed Services Readiness
Subcommittee and the Oversight of Government Management
Subcommittee here, I know that without sustained leadership
neither incremental changes nor wholesale transformation will
be integrated into an agency's management culture. That is why
I have sponsored legislation with my friend, Senator Voinovich,
to create a Deputy Secretary for Management at DHS, which I
believe will help the new Department avoid the same long-term
management problems currently plaguing the Department of
Defense.
Mr. Schneider, you will be coming into an agency with deep
divisions between labor and management, most of which stem from
the personnel regulations issued by DHS last year that I
believe will severely erode employee rights and protections.
Strong employee protections enhance security by helping attract
and retain the most skilled employees and by ensuring that they
feel free to bring concerns about management actions that could
adversely affect our national security to senior leaders
without fear of retaliation.
I urge you to work with the DHS Chief Human Capital
Officer, who I know from her tenure at the Office of Personnel
Management, and with union leaders, management associations,
and the Senior Executives Association to develop a personnel
system for the Department that is flexible, transparent, and
ensures collective bargaining and a fair appeals process.
I want to mention an issue that came up during the
Committee's work on your nomination concerning your stewardship
of a classified program at the National Security Agency called
Trailblazer. We have examined this issue in both open and
closed briefings, and there is nothing that we have discovered
which should adversely affect your nomination to this position.
Mr. Schneider, you have a reputation and a record of
getting things done, of hiring and rewarding capable people and
supporting them in their mission. Your talents are sorely
needed, given the critical roles played by and challenges
facing the Chief Information Officer, the Chief Procurement
Officer, the Chief Financial Officer, and the Chief Human
Capital Officer (CHCO), all of whose offices fall under the
Management Directorate. I hope you will not hesitate to reach
out to the Committee should problems arise.
Thank you very much, Madam Chairman.
[The prepared statement of Senator Akaka follows:]
PREPARED STATEMENT OF SENATOR AKAKA
Today we are here to consider the nomination of Mr. Paul Schneider
to be the Under Secretary for Management at the Department of Homeland
Security (DHS). However, before we turn to Mr. Schneider's nomination,
I would like to thank you, Chairman Collins, for your work over the
past 4 years as Chairman to ensure the success of DHS. I appreciate
your dedicated leadership and the comity with which you have led this
Committee. I look forward to working with you in the next Congress.
I am pleased to join you today in welcoming Mr. Schneider to the
Committee. The position to which he has been nominated is pivotal,
perhaps even more important than the Secretary's job because the Under
Secretary has line responsibility for ensuring the Department performs
its mission. Merging 22 agencies with 180,000 employees into a
department to carry out a common mission is the single biggest
challenge in the government today.
As the Ranking Member of the Oversight of Government Management
Subcommittee and the Armed Service Readiness Subcommittee, I know that
without sustained leadership neither incremental changes nor wholesale
transformation will be integrated into an agency's management culture.
That is why I have sponsored legislation with Senator Voinovich to
create a Deputy Secretary for Management at DHS, which I believe will
help the new department avoid the same long-term management problems
currently plaguing the Department of Defense.
Mr. Schneider, you will be coming into an agency with deep
divisions between labor and management, most of which stem from the
personnel regulations issued by DHS last year that I believe will
severely erode employee rights and protections. Strong employee
protections enhance security by helping attract and retain the most
skilled employees and by ensuring that they feel free to bring concerns
about management actions that could adversely affect our national
security to senior leaders without fear of retaliation.
I urge you to work with the DHS Chief Human Capital Officer (CHCO),
who I know from her tenure at the Office of Personnel Management, and
with union leaders, management associations, and the Senior Executives
Association to develop a personnel system for the Department that is
flexible, transparent, and ensures collective bargaining and a fair
appeals process.
I want to mention an issue that came up during the Committee's work
on your nomination concerning your stewardship of a classified program
at the National Security Agency called Trailblazer. We have examined
this issue in both open and closed briefings, and there is nothing that
we have discovered which should adversely affect your nomination to
this position.
Mr. Schneider, you have a reputation and a record of getting things
done, of hiring and rewarding capable people, and supporting them in
their mission. Your talents are sorely needed given the critical roles
played by and challenges facing the Chief Information Officer, the
Chief Procurement Officer, the Chief Financial Officer, and the CHCO
all of whose offices fall under the Management Directorate. I hope you
will not hesitate to reach out to the Committee should problems arise.
Thank you again Madam Chairman.
Chairman Collins. Thank you very much, Senator Akaka.
I am now pleased to call upon Senator Voinovich, who is
this Committee's leading expert on issues involving human
capital, and I know that is one of the reasons he is here
today. Senator Voinovich.
OPENING STATEMENT OF SENATOR VOINOVICH
Senator Voinovich. Thank you, Madam Chairman. First of all,
I know this is the last hearing that this Committee is going to
have in the 109th Congress, and I want to publicly acknowledge
the great leadership that you have provided to this Committee
and the bipartisanship that you have emphasized during your
Chairmanship. I know that because of the wonderful relationship
that you have developed with Senator Lieberman, this Committee
will continue to make a real contribution to our country. This
Committee has been the most productive of any of the committees
that we have in Congress, and that is due to your hard work,
tenacity, and your ability to work with Senator Lieberman.
Chairman Collins. Thank you.
Senator Voinovich. I would also like to acknowledge Senator
Akaka. We have worked together for 8 years. Senator Akaka, I
really appreciate the cooperation and, more importantly, the
friendship that we have developed over the years. I am so glad
you are going to be back for the next six. You and I are going
to be working together on lots of issues, and so I look forward
to the 110th Congress.
Chairman Collins. Thank you.
Senator Voinovich. The Under Secretary for Management at
the Department of Homeland Security serves as the principal
administrator and manager for the Department, although as
Senator Akaka pointed out, we really don't like the positions
placement on the DHS organizational chart. We think the
position should be elevated and be reporting directly to the
Secretary.
Though the Under Secretary for Management does not serve on
the front line, the position is critical to our Nation's
homeland security. With the Department still in its formative
years, which I think people have forgotten, the Under Secretary
must provide consistent direction and coordinate numerous
interrelated management systems so that they complement the
operational components' activities. The guidance must be
flexible and durable over time and eliminate stovepipes that
continue to hinder development of a unified culture.
As my colleagues know, the Homeland Security Act of 2002
initiated the Federal Government's largest restructuring since
the creation of the Department of Defense in 1947. In
hindsight, I think a lot of us believe we bit off a whole lot
more than maybe we should have and perhaps should have started
out with the consolidation of fewer agencies.
While carrying out its critical mission of securing the
Nation from terrorism and natural hazards, the leadership of
DHS must be mindful of the major organizational, operational,
and cultural issues associated with large mergers. It is indeed
a challenge to unify 180,000 employees from 22 different
Federal agencies and programs. This is not meant to be as a
criticism of the Secretary or any single individual at DHS, but
rather to acknowledge the fact that the Department faces
significant hurdles as it matures. The Department must be
honest with itself about its management challenges and must
devote focused, high-level attention to overcoming them.
I am concerned that DHS continues to face a high rate of
vacancies and turnover in key leadership positions, including
within the Management Directorate. This issue could be further
complicated as this administration finishes its elected term.
As the Chairman of the Oversight of Government Management
Subcommittee, improving the management focus at DHS remains one
of my top priorities. During my long career in public service,
including as mayor and governor, I have repeatedly observed
that the path to organizational success lies in adopting best
practices in management, including strategic planning,
performance, and accountability measures, and effectively
leveraging human capital.
When instituting reforms as mayor and governor, individuals
involved with implementation would tell me they did not have
time for Total Quality Management because they were too busy
putting out fires. I appreciate that DHS is also busy putting
out fires, but the connection between good management practices
and operational success should not be lost. That is why the
position of Under Secretary for Management is so vital to the
success of the Department of Homeland Security.
Mr. Schneider, if confirmed, your job will be to tackle the
formidable management challenges at the Department of Homeland
Security and institutionalize long-term changes that will last
way beyond your tenure. After reviewing your significant
experience in senior management positions at the Department of
Defense and the National Security Agency, I believe that you
are well qualified for the position of Under Secretary for
Management. I appreciate your willingness to return to Federal
service and make a contribution to our Nation's homeland
security, and I applaud your courage in accepting this
nomination and the challenges it brings.
I look forward to learning of your vision for fulfilling
the duties of the Under Secretary for Management. If you are
confirmed, this Committee will be closely monitoring your
progress. We also want to help ensure you have the necessary
visibility and leverage within the Department to get the job
done. Accordingly, I encourage you to be as candid as possible
with us about the Management Directorate's resource needs and
its concerns.
Thank you, Madam Chairman.
[The prepared statement of Senator Voinovich follows:]
PREPARED STATEMENT OF SENATOR VOINOVICH
Thank you, Madam Chairman, for holding this important hearing. The
Under Secretary for Management at the Department of Homeland Security
serves as the principal administrator and manager for the Department.
Though the Under Secretary for Management does not serve on the
frontline, the position is critical to our Nation's homeland security.
With the Department still in its formative years, the Under Secretary
for Management must provide consistent direction and coordinate
numerous interrelated management systems so they complement the
operational components' activities. The guidance must be flexible and
durable over time, and eliminate stovepipes that continue to hinder
development of a unified culture.
As my colleagues know, the Homeland Security Act of 2002 initiated
the federal government's largest restructuring since the creation of
the Department of Defense in 1947. While carrying out its critical
mission of securing the Nation from terrorism and natural hazards, the
leadership of DHS must be mindful of the major organizational,
operational, and cultural issues associated with large mergers. It is
indeed a challenge to unify 180,000 employees from 22 different federal
agencies and programs.
It is not meant as a criticism of the Secretary or any single
individual at DHS to acknowledge the fact that the Department faces
significant hurdles as it matures. The Department must be honest about
its management challenges, and must devote focused, high-level
attention to overcoming them. I am concerned that DHS continues to face
a high rate of vacancies and turnover in key leadership positions,
including within the Management Directorate. This issue could be
further complicated as this Administration finishes its elected term.
As the Chairman of the Oversight of Government Management
Subcommittee, improving the management focus at DHS remains one of my
top priorities. During my long career in public service, including as a
Mayor and Governor, I have repeatedly observed that the path to
organizational success lies in adopting best practices in management,
including strategic planning, performance and accountability measures,
and effectively leveraging human capital.
When instituting reforms as Mayor and Governor, individuals tasked
with implementation would tell me, ``We don't have time for Total
Quality Management, we are too busy putting out fires.'' I appreciate
that DHS is also busy putting out fires. But the connection between
good management practices and operational success should not be lost.
That is why the position of Under Secretary for Management is so vital
to the success of the Department of Homeland Security.
Mr. Schneider, if confirmed, your job will be to tackle the
formidable management challenges at the Department of Homeland Security
and institutionalize long-term changes that will last beyond your
tenure.
After reviewing your significant experience in senior management
positions at the Department of Defense and the National Security
Agency, I believe you are well qualified for the position of Under
Secretary for Management. I appreciate your willingness to return to
Federal service and make a contribution to our Nation's homeland
security, and applaud your courage in accepting this nomination and the
challenges it brings.
Mr. Schneider, I look forward to learning of your vision for
fulfilling the duties of the Under Secretary for Management. If you are
confirmed, this Committee will be closely monitoring your progress. We
will also help ensure you have the necessary visibility and leverage
within the Department to get the job done. Accordingly, I encourage you
to be as candid as possible with us about the Management Directorate's
resource needs and concerns. Thank you, Madam Chairman.
Chairman Collins. Thank you.
Mr. Schneider has filed responses to a biographical and
financial questionnaire, answered pre-hearing questions
submitted by this Committee, and has 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
offices.
Our Committee rules require that all witnesses at
nomination hearings give their testimony under oath, so Mr.
Schneider, if you would please stand and raise your right hand.
Do you swear that the testimony you are about to give to
the Committee will be the truth, the whole truth, and nothing
but the truth, so help you, God?
Mr. Schneider. I do.
Chairman Collins. Please be seated.
Mr. Schneider, I understand that you have family members
present with you today, and I would invite you to introduce
them to the Committee at this time, if you would like to do so.
TESTIMONY OF PAUL A. SCHNEIDER\1\ TO BE UNDER SECRETARY FOR
MANAGEMENT, U.S. DEPARTMENT OF HOMELAND SECURITY
Mr. Schneider. Sure, Senator. Right behind me on my left is
my wife, Leslie, and cousin Carolyn Griffin, and a row of many
family friends.
---------------------------------------------------------------------------
\1\ The prepared statement of Mr. Schneider appears in the Appendix
on page 21.
---------------------------------------------------------------------------
Chairman Collins. That is great. We welcome you all to this
hearing today. We know that public service involves the entire
family and that there are many sacrifices involved, so we
welcome you to the hearing today.
You may proceed with your statement.
Mr. Schneider. Chairman Collins, Senator Lieberman, and
distinguished Members of the Committee, it is an honor to
appear before you today as you consider my nomination by the
President to be the next Under Secretary for Management at the
U.S. Department of Homeland Security. I am deeply honored and
humbled that President Bush has nominated me to serve this
great country and its people, and I thank Secretary Chertoff
for his support throughout this process. If confirmed, I look
forward to the opportunity and privilege of serving under his
direction with the dedicated men and women who are working to
secure our homeland and defend our freedoms.
I owe this country a lot. I started at the Portsmouth Naval
Shipyard in Kittery, Maine, as a 21-year-old GS-5 engineer who
was obsessed with building nuclear submarines. At that point in
time in history, naval shipyards actually built nuclear
submarines. As I progressed up through the ranks, I was
afforded a number of opportunities to serve in positions of
increased responsibility, seeing and doing things that one
could only have dreamed of as a kid fresh out of school.
More than 40 years later, on September 11, I was in the
Pentagon. I saw firsthand the devastation to which our enemies
commit themselves. As I lay in the grass by the river, as we
were told to do because we were advised another airplane was
inbound, I saw the fire and the smoke rising from the building
and I saw two F-16s flying combat air patrol over the Pentagon
and the District of Columbia. Three things came to my mind.
First, I was a kid who grew up in the Cold War, practicing
duck-and-cover drills. I could not believe that this was
happening in our country.
Second, the ``battle space'' to which those in the military
frequently refer to now, was not in Europe, not in the Middle
East, not in the Far East, but right here in U.S. airspace.
Third, I realized that our lives would never really be the
same.
I hope that my integrity, competence, continued willingness
to serve the public trust, and ability to accomplish
significant and challenging objectives demonstrate the skill
set and experience needed to meet the significant
responsibility required by the Under Secretary for Management's
charge.
If confirmed, I commit to working with you and your staff,
other governmental departments and agencies, businesses, both
large and small, and our international partners to make a
contribution to securing our homeland for today and tomorrow.
Thank you very much for this opportunity to appear here
today. I am happy to answer any questions you may have.
Chairman Collins. Thank you.
I will start my questioning with the three standard
questions that we ask of all nominees. First, is there anything
that 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. Schneider. 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. Schneider. No.
Chairman Collins. And 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. Schneider. Yes.
Chairman Collins. We will now start with a round of
questions, limited to 6 minutes each, and there will be a
second round, just so that my colleagues know that.
Mr. Schneider, as you are well aware, the success of any
enterprise, including that of the Department of Homeland
Security, depends upon the people, the employees. Recently, a
U.S. Court of Appeals for the D.C. Circuit upheld the District
Court's opinion striking down part of DHS's new personnel
system, the pay-for-performance plan for those DHS employees
subject to collective bargaining. This is the MaxHR Pay-for-
Performance Plan. It is my understanding that the Department of
Justice is unlikely to appeal that decision to the Supreme
Court, so the result is that the labor representatives and DHS
officials will have to go back to the drawing board to design a
new plan.
If you are confirmed, what do you plan to do to ensure that
this time a personnel system that is acceptable to both the
employees and the management of the Department can be designed
and successfully implemented?
Mr. Schneider. Senator, I am aware in general of the issue
with the Court of Appeals. I am also aware that MaxHR has six
elements of the plan. Probably the most important that needs to
be addressed initially is a solid performance management plan.
My understanding is the court specifically struck down the
segment having to do with pay.
Now, I have had a lot of experience in personnel management
in large organizations and especially in the Navy, where the
Navy was the lead in instituting the pay-for-performance plan
that has sort of served as a model for the Department of
Defense as well as Homeland Security. What we learned in the
Navy was you need to spend a lot of time up front in the
performance management aspects because that is where many of
the current pay plans, performance plans, fall apart. There
needs to be conveyed between supervisor or manager and employee
a clear understanding of what their responsibilities are, what
they are supposed to accomplish. There needs to be frequent
communications and feedback. In my experience, most plans fall
apart when this is not properly communicated.
It is my understanding talking to the Chief Human Capital
Officer at DHS that the emphasis now is on developing and
instituting a solid performance management plan across the
Department. At the same time, what I have found to be very
instructive is to work with the workforce, work with the
unions, and have constant communications and articulate what
the objectives of management are. Too often, in my experience
in the Navy with dealing with labor relations, too often, you
don't have that communication. There is a lack of sensitivity
to the issues that the workforce and unions have.
So what I would do, if confirmed, was to focus on getting a
solid performance management plan instituted, establishing the
appropriate forums to have that constant dialogue, and working
with the workforce and the unions on structuring the pay
aspects as well as grievance procedures, adverse action, and
the classification elements, which are also key to making MaxHR
successful.
Chairman Collins. DHS also faces unusual financial
management challenges that need to be addressed as it continues
to integrate the components of the 22 Federal agencies into a
single Department. One of the difficulties is that each agency
is still dealing with a lot of legacy systems, and in many
cases these are poorly-designed systems, and there, in general,
is inadequate financial management.
Now, there are some agencies that have worked hard. I know
one has hired the consultant Deloitte, for example, and has
made real progress in reducing the number of material problems
identified in audits. But in general, what do you see your role
as being to bring more uniformity, more consistency, and higher
quality across the Department in the financial management area?
Mr. Schneider. Senator, I am aware of the issues with
financial management. Internal controls, which there have been
numerous IG and GAO reports on that fault the Department for
the lack of internal controls, I have gone through them. I have
analyzed what the issues are. As you pointed out, you mentioned
Deloitte. ICE hired Deloitte, I believe, to help them go look
at these internal controls. They were one of the major problem
areas. ICE has been turned around.
I guess the largest number of internal control deficiencies
are currently attributed to the Coast Guard. And so I have
talked to the Chief Financial Officer, and I am aware of the
plans underway, working with the appropriate leadership in the
Coast Guard, with help, I believe, from Deloitte, to go tackle
these internal control issues. My opinion is that if ICE was
able to successfully address these issues in a timely manner,
then there is no reason why the Coast Guard wouldn't be able to
do the same thing. So from an internal control deficiency
standpoint, I am optimistic that the Coast Guard will make
great progress, and overall, that would, frankly, eliminate
probably the biggest offenders relative to having weak internal
controls.
On the migration of financial management systems, my
understanding is that there are several systems within the
operating components that are good, that are satisfactory.
There are some that are weak. So if confirmed, what I would do
would be to see why those that are good can't be used as the
model, and rather than starting off and trying to create a
brand new system from whole cloth, why not migrate these poorer
systems to those that are known to be satisfactory?
Chairman Collins. My time has expired, so I want to yield
to Senator Akaka, but I would just tell you to take a hard look
at FEMA, as well. We held a hearing this morning that confirmed
that the GAO has found that due to lack of good management and
an absence of internal controls, that FEMA had some $1 billion
in improper and fraudulent payments in the wake of Hurricane
Katrina, clearly a completely unacceptable situation. So I
would add FEMA to the top of your priority list in that area.
Senator Akaka.
Senator Akaka. Thank you very much, Madam Chairman.
Before getting to my question, I just want to add to my
statement that I have enjoyed working with Senator Voinovich in
Committee and the Subcommitte he chairs. We did a lot on
government management and the Federal workforce issues, as well
as with the District of Columbia. I just want him to know that
I look forward to working with him. And also to add to the
Chairman's comments that I made, that I have really appreciated
the comity in which she led this Committee and has done a great
job with that.
Mr. Schneider, I want to thank you for your statement. I
felt your statement was heartfelt and demonstrates how you will
be handling your responsibilities. This is a good beginning for
me.
Senator Collins has mentioned the DHS court decision. The
Homeland Security Act of 2002 ensured that DHS employees would
continue to have collective bargaining rights. However, the
regulations issued by the Department last year were found to
violate that requirement by the U.S. Court of Appeals for the
District of Columbia.
My question to you is will you commit to this Committee
that you will comply fully with the statutory obligation and
ensure collective bargaining rights at DHS, if confirmed as
Under Secretary for Management?
Mr. Schneider. Senator, if confirmed, I will commit to
carrying out the collective bargaining responsibilities as
required by law, regulation. I think that is an inherent part
of good management, if you will, because this workforce is
absolutely key to securing the homeland and protecting our
borders. That is part of the world I have come from in the
Navy, where whether it is at naval shipyards, aviation depots,
laboratories, etc., and I believe that I have a reputation for
frank and open communications with the leadership of the
collective bargaining units.
Senator Akaka. Thank you. Mr. Schneider, much of your
professional experience is with the Department of Defense, so
you understand DOD's management culture, which generally
retains reporting authority within the component or service.
There are some real pluses to such a chain of command approach,
and there are some real minuses that unfortunately lead to
significant inefficiencies, mismanagement, and internal system
failures. Too many times, Congress has had to mandate
structural changes by statute, and too many times, these
requirements have been ignored by DOD.
Last year, Deputy Secretary England stood up the Business
Transformation Agency, which is a step in the right direction
and one that I hope will lead to broader control department-
wide. You have provided this Committee with the areas that you
will focus on to lead change. What I would like to know is what
immediate steps you will take to review the current
organization structure within the Management Directorate and
whether you believe a BTA approach for DHS could work.
Mr. Schneider. Senator, first, I am very familiar with
DOD's Business Transformation Office. I worked for Secretary
England when he was the Secretary of the Navy, and I guess,
when Secretary Rumsfeld took over as Secretary of Defense
across the services, we were asked to put together, if you
will, to actually start the business transformation operation.
A large portion of the, I will call it the core team that was
put in place were people that worked for me in the Navy. It had
the management attention directly of Secretary England, who
then had to report to the Secretary of Defense. It has been
subsequently institutionalized in its current form.
One of the things I would do, if I confirmed, is I would
look at--there is, from what I understand, a Business
Transformation Office in the Department of Homeland Security. I
would look at the structure of that. I would look at the areas
that they are currently looking at. And based on my experience
in terms of the areas that the business transformation
operation ought to look at, see if, in fact, these efforts are
properly focused and, if not, take whatever action was required
to get them on track.
Senator Akaka. I am glad to hear your approach. From all of
your experiences, I look forward to you being successful in
doing that. My time has just expired.
Chairman Collins. Thank you. Senator Voinovich.
Senator Voinovich. Mr. Schneider, I question whether the
Under Secretary for Management has sufficient authority to
direct overreaching management integration and strategy across
the Department. In fact, I heard through the grapevine that
your predecessor felt rather frustrated in terms of getting the
job done, and that is one of the reasons why she decided to
leave.
As Senator Akaka has mentioned, we introduced the Homeland
Security Restructuring Act of 2000, which would elevate the
management responsibilities within the Department to the Deputy
Secretary level.
From what you have observed of the Under Secretary for
Management position and the various chief officers within the
Management Directorate, do you think the office to which you
have been nominated possesses adequate authority to effect
change throughout the Department? If confirmed, how will you
work within the existing dual-accountability command structure
to ensure that influence of the Management Directorate is
robust enough to ensure a common culture of management
excellence throughout the Department? Finally, what other
positions have you held in the past in which you have not had
sufficient authority but you were nevertheless able to
accomplish your objectives?
Mr. Schneider. Senator, on the first part, when you
mentioned the deputy--recommending elevating to a Deputy
Secretary, was that in S. 1712? I reviewed that proposed
legislation that proposes elevating the position to the Deputy
Secretary for Management, and I compared it very closely to the
Homeland Security Act, and it appears that there are some very
specific changes, one in terms of tenure. I believe it proposes
a 5-year tenure.
I envision the Under Secretary for Management by the
authorities that are invested in that position by law, that
Homeland Security Act, and by my detailed discussions with the
Secretary and Deputy Secretary that in practice, even though I
would not be called a Deputy Secretary, but in practice, there
is absolutely no doubt in my mind that I am like a Chief
Operating Officer of a department.
And part of that has to do with the law is very helpful
because that Act very clearly specifies what authorities I
would have. What is even more helpful is the obvious confidence
that the Secretary and the Deputy Secretary have in me, and
that will become very obvious to the leadership in the
Department.
I think the third element that makes this work and why I
believe that on the surface I would have all the authorities
that I need is because of the power of the personality, and I
am not a shy person. I know how to take action and to be
aggressive, and I think between what is specified in law, the
relationship that I would have with the Secretary, and the
nature of how I do business, that those are sufficient tools
for me to be successful.
On your second part of this question regarding dual
accountability, DOD, in fact, does have dual accountability. I
mean, you have a comptroller, you have an acquisition
executive, you have the Under Secretary of Defense for
Personnel, and they do not have, with one exception and that is
on the acquisition side, in general, line authority over the
service components. They basically effect control by policy and
procedures and exercising oversight where it is needed. I have
lived in that process. I know from the service standpoint the
kind of help that I used to get from the DOD at the DOD level,
and I think that the business unit chiefs, whether it is the
CIO, the Human Capital Officer, and the Chief Financial
Officer, by policy and by procedures and oversight appear to me
to have sufficient authority to go do their jobs.
I think in the case of the Chief Procurement Officer, she
has even stronger control. She can do several things. She can
pull the warrant of a contracting officer in one of the
operating components. She can specify her review of any
procurement above within a certain threshold. She can issue
policies that say, I don't want you to use these types of
contracts in these situations. She, today, has a tremendous
amount of authority.
Regarding the third part of your question, my past
experience, I have always pushed, if you will, the edge of the
envelope, and I believe the secret to success has been my
competence, but more importantly, the confidence that my
leadership has shown in me and the latitude that they have
given for me to basically define the job. You are always going
to have a give and take, and that is part of the way business
gets done, but I don't recall, frankly, anything where I was
really limited, if you will.
Senator Voinovich. Thank you.
Chairman Collins. Mr. Schneider, many of the Federal
Government's more experienced acquisition personnel are now
eligible for retirement. Reforms are also placing new demands
on the acquisition workforce. Acquisition staff must have a
greater knowledge than ever before of technology, of market
conditions, of industry trends, of the technical details of the
services and commodities that they procure. At the same time,
we have seen the number of procurement actions increase by 12
percent with the greatest amount of work coming on contracting
actions over the simplified acquisition threshold of $100,000.
In other words, the procurement workforce is being asked truly
to do more with less.
I am concerned that we are rapidly losing the personnel
workforce that is needed to manage procurement of increasing
complexity. In addition, we are not seeing an influx of younger
people to replace the procurement staff that are eligible for
retirement or about to retire. We have also seen the problems
that have occurred at FEMA because of understaffing in the
procurement workforce, understaffing that in the end ends up
costing us far more than if those positions had been filled.
What additional tools do you believe are necessary at DHS
to ensure the recruitment and retention of highly qualified
individuals to the acquisition workforce?
Mr. Schneider. Senator, I think for starters I have
reviewed the recent FEMA Act. I was encouraged to see a couple
of really major incentives in there where FEMA was granted the
authority to pay bonuses for recruitment as well as for
retention up to about roughly 25 percent of salary. That goes a
long way in trying to make FEMA, if you will, a desired place
to work.
I think the other aspect of it, and that is not to say that
is going to solve the large number of vacancies, there needs to
be aggressive recruiting programs. I have spoken to the
Director of Management at FEMA, somebody I have known for a
long time, and the Chief Human Capital Officer. They have a
series of what I would consider to be very aggressive actions
to initiate intern programs in the critical disciplines,
aggressive hiring with teams of people that target specific
geographic areas, and so I think I am satisfied that from the
interim standpoint that they can make great progress.
I think a bigger problem, quite frankly, is at the mid-
level, especially on the contracting officers. From the time a
boot intern walks in the door until the time they are a
journeyman contracting officer takes a long time. So what is
really needed is that we need to have an influx at the mid-
level. That is going to require, I believe, getting the word
that the Department of Homeland Security is the place to be.
In the 1970s and the 1960s when I grew up, it was either
Defense or Space. I think the place where the action is for
this time and for the near-term future is in Homeland Security,
and I think the Department has to do a better job of
advertising why Homeland Security is the place to work, and
frankly, I believe a lot of personal recruiting at the mid-
level would help go a long way.
Chairman Collins. Certain of DHS components, certain
agencies within the Department, in order to carry out their
mission, must compile and maintain personal information on
American citizens. We have seen earlier this year very
disturbing incidents where, for example, at the Veterans
Administration a computer containing personal data on millions
of veterans was stolen. What can you do and what will you do to
minimize the risk that personal information stored on DHS
computers and in DHS information systems is not compromised? In
other words, have you looked at the computer security policies
of the Department?
Mr. Schneider. Senator, I have not looked at the computer
security policies of the Department, but from my previous
experience, I know there are things you can do, starting with
the encryption of hard drives and the like. I think in this
particular area, and I recognize the sensitivity, I believe
that the Deputy Director of the Office of Management and Budget
for Management, Clay Johnson, III, has issued three memos,
which I have read, one in May, one in June, and most recently
in September 2006, that talk about very specific policies,
procedures, and what happens in the case of, I believe it is
called, personal identifiable information. So I believe there
is a blueprint out there of steps that need to be taken for
prevention and specific actions in terms of notifications,
both--if, in fact, there is a loss of PII.
Chairman Collins. Thank you. Senator Akaka.
Senator Akaka. Thank you very much, Madam Chairman.
Mr. Schneider, as a retired Federal employee who returned
to Federal service after September 11, you appreciate the need
to attract and retain skilled and trained workers, especially
those safeguarding the Nation against manmade and natural
disasters. Many of these jobs are inherently governmental,
which is why it is so important that DHS ensures that it has
the personnel and resources to carry out its mission. As an
example, the Chairman spoke on FEMA and the champion of Federal
employees, Senator Voinovich.
Mr. Schneider, I would appreciate your assurance that
Congress will receive regular updates on the Department's use
of training funds, retention bonuses, student loan repayments,
and other efforts to recruit and retain a skilled workforce. I
also ask that the DHS Chief Human Capital Officer regularly
meet with this Committee's staff to keep us informed of the
agency's use of personnel flexibilities. Do you have any
comment on that?
Mr. Schneider. Senator, no. I support that. I have met with
the Chief Human Capital Officer. She has been in the job, I
think, about 60 days. She is a dynamo, and she has had
tremendous experience, if you will, both at the State level in
OPM, she has had extensive experience in how to use these types
of incentives, and I am personally thrilled that, if confirmed,
I would have the opportunity to work for her in these types of
efforts. And I would commit, if confirmed, to provide you and
the staff any information that you would want in this
particular type of area.
These are some of the metrics, Senator, that if I was
confirmed that I would use to gauge how well are we using these
tools that are available and is there some measure of
effectiveness of what it is costing versus what the return is.
Senator Akaka. Thank you for that response. I think we can
both agree, Mr. Schneider, how important it is for DHS to have
strong recruitment and retention policies. With this in mind, I
would like to discuss a situation that has arisen with the
Federal Protective Service at DHS. The press reports that FPS
faces a $42 million shortfall. To address this financial
problem, DHS announced it will offer early retirement to FPS
personnel and end retention bonuses, which would save about $3
million.
I am wondering if human capital decisions are adequately
factored into this funding decision. I would appreciate your
looking into this situation and getting back to the Committee
on this.
Mr. Schneider. Senator, if confirmed, I would do that.
Senator Akaka. Are you aware of that situation?
Mr. Schneider. Somebody briefly mentioned it to me the
other day, but I did not probe into it.
Senator Akaka. Mr. Schneider, a Gallup survey released
yesterday found that although government employment is
attractive to young adults, there are many obstacles to
overcome in the recruitment of younger employees. I was
interested to see, however, that agencies involved in national
security, including DHS, scored high with those surveyed. In
fact, DHS scored number four out of 25 agencies in terms of
employment interest. Nonetheless, DHS scored second to last in
employee satisfaction of the 30 agencies ranked by a 2005
survey of employed Federal workers.
Given these two surveys I have just mentioned, how would
you address the perception of those who might be interested in
working for DHS versus those who currently work for DHS?
Mr. Schneider. Well, on the first survey, it is encouraging
because it shows that DHS is where the action is for the
future, so if you want to make a contribution, that is the
place to work. So I would expand on that.
On the second survey that you mentioned, I think it is a
responsibility of leadership to convey--to make the workforce a
place where people want to come to, and that is where they like
it. It is not just the work that they like, but they trust
their management, they feel that the management listens, and
there is an environment of open communications back and forth.
I think this is a leadership issue, and if confirmed, I believe
I can be of help, if you will, in energizing the leadership to
focus on that type of an issue. Unless the Department or any
agency has a reputation as a good place to work because the
leadership listens, you are not going to attract people and
this Department would be down in the cellar. I think it is
really a leadership issue, and the employees have to have the
confidence that their management listens and that they can
trust them.
Senator Akaka. I thank you very much for your responses,
Mr. Schneider. Thank you.
Chairman Collins. Thank you. Senator Voinovich.
Senator Voinovich. Mr. Schneider, building on what Senator
Akaka just discussed with you, I would like to have in writing
your plan to change the attitude of the people in the
Department in terms of their job satisfaction. This will enable
the Committee to monitor the program that you are going to
institute and revisit the issue a year from now to see whether
or not it has made a difference.
Second, before I forget it, I would like to say that I am
very much impressed with your familiarity with the Department.
I have sat through a lot of these hearings, and you seem to be
more familiar with the operation and the job to which you have
been nominated than anyone that I have heard in recent times. I
congratulate you, and if your preparation for today's hearing
is any indication of the success you are going to have, I think
you are going to do a good job.
Mr. Schneider. Thank you very much, Senator.
Senator Voinovich. Mr. Schneider, you have the
responsibility for overseeing the Department's budget and
appropriation requests and expenditure of funds. Since 2002,
the Federal Government has more than tripled government-wide
spending related to non-defense homeland security, a big
increase. I continue to believe that DHS needs to do a better
job of conducting risk assessments and allocating our limited
budgetary resources based upon risk and strategic planning
priorities. Do you agree?
Mr. Schneider. Yes, I do. I think, frankly, Senator, one of
the reasons I believe that Secretary Chertoff and the Deputy
Secretary found me as an attractive candidate for this position
is my ability to take a look at an entire effort, and it is
what is the objective, what are the requirements, how is it
going to be used, what are the cost trades relative to
different levels of performance, understanding what the total
cost of the effort is as opposed to this fiscal year it is
going to cost X-number of dollars and next fiscal year it is
going to cost Y-number of dollars. That is the world I come
from. I have been responsible for making a lot of those types
of decisions where resources are limited and the number of
opportunities are great.
What I would do is to look at the current processes. There
are several that are in place right now. A Joint Requirements
Board is an investment requirements review board. I have
already talked to the Deputy Secretary about this. This is one
of his priorities for me, and I believe we are on a common
mindset of what needs to be done.
There needs to be a total understanding of what the major
expenditure is going to be and what the options are. There is
usually more than one option, and a lot has to do with maybe
the 99 percent solution 10 years from now at X-number of
dollars is not the right answer. Maybe the 70 percent solution
5 years from now with substantially less dollar investment is
the right answer.
That is the type of process that I have lived in and grown
up in. That is the process that I believe has instilled
discipline in the Defense Department, and what I would try to
do is to see how the existing processes within the Department
would need to be strengthened in order to give management a
better insight into the decisionmaking process.
Senator Voinovich. Well, I must say to you that DOD leaves
a lot to be desired.
Mr. Schneider. Yes, sir.
Senator Voinovich. Of the items on GAO's high-risk list, I
believe eight of them are Department of Defense programs and
six of them are government-wide programs for which the
Department of Defense shares some responsibility. We are doing
oversight on the supply chain management and security clearance
procurement process. So I hope that you don't look at that
operation as a model. As a matter of fact, I think that if you
were to look at the most recent high-risk list, you would find
that DHS is very high on Comptroller General Walker's list. So
I guess I am saying to you I am not that impressed with what
the Department of Defense has done in the past. I think we can
do better than that.
Mr. Schneider. Yes, sir. If I may, I think one of the
things when I was at NSA that we did was we tailored the DOD
process where we thought it had some strengths and we discarded
some of those areas where we thought it was weak.
Senator Voinovich. In terms of the budget process, what
concerns me, and maybe this is because I am an old mayor and a
governor, is the Department's allocation of resources. The
Department has had a continued increase in terms of their
budget as contrasted to some of the other non-defense
discretionary spending. But if you examine current spending,
you can identify items that may not be as high a priority as
something else that the Department has been asked to do. You
will also find that this Committee is going to have all kinds
of ideas about other things that you ought to fund that
unfortunately come with a very large price tag. You can't do it
all.
One of the things that is of concern to me right now is our
spending on border security. If you talk to Judd Gregg, who is
head of the Appropriations Committee for Homeland Security, he
will tell you that there isn't enough money for us to get the
job done. You are going to be asked to get the job done, and
the issue then becomes, how much money are you going to really
need to get the job done, are you going to request those
dollars in the 2008 budget, or are you going to be told by OMB
that you will have to decrease funding for another priority in
order to have the resources necessary for the task at hand?
There has got to be a point where you make the
determination that what we are going to have to depend upon is
the intelligence to decrease our vulnerability to attack.
I plan to spend a lot of time on the Department's budget
because I think part of our problem here is that we don't have
a broad picture of our homeland security activities, of the
associated allocation of resources, and on understanding how we
can get the best return on our investment. I am hoping to talk
with you more about that as you take on this job.
Mr. Schneider. Yes, sir.
Senator Voinovich. Thank you, Madam Chairman, for the time.
Chairman Collins. Thank you.
I would like to thank Mr. Schneider for appearing before
the Committee today. It is my hope that this Committee will act
on your nomination before we adjourn so that you can be
considered by the full Senate. I think your position is a very
important one, and given the widespread support for your
nomination and your excellent performance today, my hope is
that we can take the Bob Gates model and act that quickly to
approve you and get you on the job because the Department
really does need you.
You can facilitate that by returning very quickly the
additional questions that I and others may have for you.
Without objection, the record will be kept open until noon
tomorrow for the submission of any additional written questions
or statements for the record. The sooner you turn those around,
the happier I will be because then we can move to considering
your nomination.
I want to join Senator Voinovich in thanking you for your
public service, for returning to public service. I think that
your background is exactly what the Department needs, and I am
pleased to lend my voice in support of your nomination, as
well.
This hearing is now adjourned. Thank you.
[Whereupon, at 4:05 p.m., the Committee was adjourned.]
A P P E N D I X
----------
PREPARED STATEMENT OF SENATOR LIEBERMAN
Thank you, Madam Chairman and welcome to you Mr. Schneider. The
position for which you have been nominated--Department of Homeland
Security Under Secretary for Management--is unusual, if not unique, in
the Federal Government. If confirmed, you will be responsible for core,
cross-Department functions such as budget and financial management,
procurement, IT systems, and human resources, and the Management
Directorate that you will lead will be central to addressing some of
the key challenges facing DHS.
When we created DHS 4 years ago, it was with the intent to bring
together the Federal Government's previously balkanized antiterrorism
resources in one Department and to take advantage of the synergies that
resulted. By doing so, I am confident that we have made the country
safer. As the Department matures, however, there continue to be growing
pains, and the Under Secretary for Management plays a central role in
ensuring that a coherent Department emerges out of DHS's many component
entities.
Moreover, if the Department is to succeed in its ultimate mission
of protecting the Nation from man-made and natural disasters, it must
be run well, with its resources managed wisely and an ability to
attract a sufficient and talented workforce. It will fall in large
measure to you--if you are confirmed--to ensure that is so.
I am interested in hearing from you today how you will address some
of the most pressing management challenges faced by the Department.
For example, how are you going to help the Department build the
stable and experienced workforce it needs to carry out vital homeland
security missions. The Department continues to face major challenges in
recruiting, training, and retaining personnel to ensure that the
workforce contains the skills needed by the diverse components of the
Department. Much work remains in establishing the human resources
management system that Congress authorized in the Homeland Security
Act, especially now that a Federal court has blocked portions of the
Department's regulations establishing that system. I am also interested
in hearing your ideas about how to establish a performance management
system that inspires the best effort and performance from our
workforce, that is objective, reliable, and transparent, and that
contains other safeguards to ensure that the system is fair and
effective.
I am also interested in your ideas for ensuring effective
implementation of the FEMA restructuring legislation that Senator
Collins and I introduced and that was signed into law as part of the
Homeland Security appropriations bill this fall. As I'm sure you know,
the organizational changes mandated by that legislation are required to
be in place by March 31, 2007, and other provisions of the law take
effect earlier. I would like to hear from you what steps you will take
and what your role will be in ensuring that the changes mandated by the
law are implemented effectively and on time.
Another critical area for which you will be responsible is
procurement. The Washington Post recently publicized an outside study
of the Department's procurement operations that found glaring and
systematic deficiencies in many of the contract files it reviewed. The
Department since its inception also has been embarrassed by a series of
cost overruns on large contracts totaling hundreds of millions of
dollars. Furthermore, the Department's increasing reliance on less-
than-fully-competitive contracting procedures is depriving the
Department--and the U.S. taxpayers--of the best value for its dollars.
I am interested in hearing from you what actions you intend to take to
improve the Department's acquisition management system and ensure that
the Department is spending its contracting funds wisely and engaging in
effective oversight of its contracts.
Improving and integrating the Department's information technology
systems is another significant challenge. In FY07, the budget for DHS's
IT investments will reach $4.16 billion. Yet, according to a report
released by the President's Management Council in October, DHS could
defend less than half of its IT investments. I would like to hear how
you would work with the Chief Information Officer to improve IT
management at the Department.
Mr. Schneider, you have a formidable record of 40 years of
experience, largely in the Federal government, including as Principal
Deputy Assistant Secretary of the Navy for Research, Development and
Acquisition and Senior Acquisition Executive for the National Security
Agency, and I am hopeful this considerable experience will serve you
well if you are confirmed in this post. Certainly, the myriad
management challenges of the still-new Department can be daunting. But
it is also essential that these challenges be met and conquered if the
Department is to live up to its potential and effectively protect the
nation's citizens.
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