<DOC>
[107th Congress House Hearings]
[From the U.S. Government Printing Office via GPO Access]
[DOCID: f:84332.wais]




      ACQUIRING PRIVATE SECTOR SOLUTIONS TO PUBLIC SECTOR PROBLEMS

=======================================================================

                                HEARING

                               before the

           SUBCOMMITTEE ON TECHNOLOGY AND PROCUREMENT POLICY

                                 of the

                              COMMITTEE ON
                           GOVERNMENT REFORM

                        HOUSE OF REPRESENTATIVES

                      ONE HUNDRED SEVENTH CONGRESS

                             SECOND SESSION

                               __________

                           FEBRUARY 26, 2002

                               __________

                           Serial No. 107-147

                               __________

       Printed for the use of the Committee on Government Reform


  Available via the World Wide Web: http://www.gpo.gov/congress/house
                      http://www.house.gov/reform


84-332              U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2003
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                     COMMITTEE ON GOVERNMENT REFORM

                     DAN BURTON, Indiana, Chairman
BENJAMIN A. GILMAN, New York         HENRY A. WAXMAN, California
CONSTANCE A. MORELLA, Maryland       TOM LANTOS, California
CHRISTOPHER SHAYS, Connecticut       MAJOR R. OWENS, New York
ILEANA ROS-LEHTINEN, Florida         EDOLPHUS TOWNS, New York
JOHN M. McHUGH, New York             PAUL E. KANJORSKI, Pennsylvania
STEPHEN HORN, California             PATSY T. MINK, Hawaii
JOHN L. MICA, Florida                CAROLYN B. MALONEY, New York
THOMAS M. DAVIS, Virginia            ELEANOR HOLMES NORTON, Washington, 
MARK E. SOUDER, Indiana                  DC
STEVEN C. LaTOURETTE, Ohio           ELIJAH E. CUMMINGS, Maryland
BOB BARR, Georgia                    DENNIS J. KUCINICH, Ohio
DAN MILLER, Florida                  ROD R. BLAGOJEVICH, Illinois
DOUG OSE, California                 DANNY K. DAVIS, Illinois
RON LEWIS, Kentucky                  JOHN F. TIERNEY, Massachusetts
JO ANN DAVIS, Virginia               JIM TURNER, Texas
TODD RUSSELL PLATTS, Pennsylvania    THOMAS H. ALLEN, Maine
DAVE WELDON, Florida                 JANICE D. SCHAKOWSKY, Illinois
CHRIS CANNON, Utah                   WM. LACY CLAY, Missouri
ADAM H. PUTNAM, Florida              DIANE E. WATSON, California
C.L. ``BUTCH'' OTTER, Idaho          STEPHEN F. LYNCH, Massachusetts
EDWARD L. SCHROCK, Virginia                      ------
JOHN J. DUNCAN, Jr., Tennessee       BERNARD SANDERS, Vermont 
------ ------                            (Independent)


                      Kevin Binger, Staff Director
                 Daniel R. Moll, Deputy Staff Director
                     James C. Wilson, Chief Counsel
                     Robert A. Briggs, Chief Clerk
                 Phil Schiliro, Minority Staff Director

           Subcommittee on Technology and Procurement Policy

                  THOMAS M. DAVIS, Virginia, Chairman
JO ANN DAVIS, Virginia               JIM TURNER, Texas
STEPHEN HORN, California             PAUL E. KANJORSKI, Pennsylvania
DOUG OSE, California                 PATSY T. MINK, Hawaii
EDWARD L. SCHROCK, Virginia

                               Ex Officio

DAN BURTON, Indiana                  HENRY A. WAXMAN, California
                    Melissa Wojciak, Staff Director
              Victoria Proctor, Professional Staff Member
                           Teddy Kidd, Clerk
          Mark Stephenson, Minority Professional Staff Member


                            C O N T E N T S

                              ----------                              
                                                                   Page
Hearing held on February 26, 2002................................     1
Statement of:
    Schambach, Patrick R., Chief Information Officer, 
      Transportation Security Administration, U.S. Department of 
      Transportation; Fernando Burbano, Chief Information 
      Officer, U.S. Department of State, accompanied by Mary 
      Ryan, Assistant Secretary of State for Consular Affairs; 
      S.W. Hall, Jr., Chief Information Officer, U.S. Customs 
      Department; and Ronald Miller, Chief Information Officer, 
      Federal Emergency Management Agency........................     6
    Siebel, Tom, chief executive officer, Siebel Systems; Alfred 
      Mockett, chief executive officer, AMS, Inc.; Steve 
      Rohleder, managing partner, Accenture; Anne Altman, 
      managing director, U.S. Federal, IBM, Public Sector; Al 
      Edmonds, president, Federal information systems division, 
      EDS; David Ferm, chief executive officer, Business-to-
      Business, Primedia, Inc....................................    50
Letters, statements, etc., submitted for the record by:
    Altman, Anne, managing director, U.S. Federal, IBM, Public 
      Sector, prepared statement of..............................    90
    Burbano, Fernando, Chief Information Officer, U.S. Department 
      of State, prepared statement of............................    18
    Davis, Hon. Thomas M., a Representative in Congress from the 
      State of Virginia, prepared statement of...................     3
    Edmonds, Al, president, Federal information systems division, 
      EDS, prepared statement of.................................   101
    Ferm, David, chief executive officer, Business-to-Business, 
      Primedia, Inc., prepared statement of......................   108
    Hall, S.W., Jr., Chief Information Officer, U.S. Customs 
      Department, prepared statement of..........................    28
    Miller, Ronald, Chief Information Officer, Federal Emergency 
      Management Agency, prepared statement of...................    37
    Mockett, Alfred, chief executive officer, AMS, Inc., prepared 
      statement of...............................................    65
    Rohleder, Steve, managing partner, Accenture, prepared 
      statement of...............................................    77
    Schambach, Patrick R., Chief Information Officer, 
      Transportation Security Administration, U.S. Department of 
      Transportation, prepared statement of......................     9
    Siebel, Tom, chief executive officer, Siebel Systems, 
      prepared statement of......................................    54

 
      ACQUIRING PRIVATE SECTOR SOLUTIONS TO PUBLIC SECTOR PROBLEMS

                              ----------                              


                       TUESDAY, FEBRUARY 26, 2002

                  House of Representatives,
 Subcommittee on Technology and Procurement Policy,
                            Committee on Government Reform,
                                                    Washington, DC.
    The subcommittee met, pursuant to notice, at 10:03 a.m., in 
room 2154, Rayburn House Office Building, Hon. Thomas M. Davis 
(chairman of the subcommittee) presiding.
    Present: Representatives Tom Davis of Virginia, Jo Ann 
Davis of Virginia and Turner.
    Staff present: Melissa Wojciak, staff director; Amy 
Heerink, chief counsel; George Rogers, counsel; Howard Denis 
and Victoria Proctor, professional staff members; Teddy Kidd, 
clerk; Mark Stephenson, minority professional staff member; and 
Jean Gosa, minority assistant clerk.
    Mr. Tom Davis of Virginia. Good morning. I just want to 
welcome everybody to today's oversight hearing on what barriers 
may exist in facilitating homeland security initiatives both in 
terms of change of management and technology acquisition. The 
subcommittee will also hear from some of the leading technology 
companies in the world about solutions they see to these 
barriers.
    After September 11th there has been a sea change in the 
mission of government. The first priority of the Nation has 
become homeland security. To win this fight, the government 
must be able to detect, prepare for, prevent, protect against, 
and respond to terrorist activity. We must also be ready to 
manage the crises and consequences of future attacks, to treat 
casualties and to repair damaged infrastructures, and to move 
the Nation forward. Thus, defending America in the new war 
against terrorism will require every level of government to 
work together with citizens and the private sector.
    More than ever we are engaged in an information war. In 
this war our enemies are hiding in open and available 
information across a spectrum of data bases and through 
stovepipes of knowledge. As we have seen, since the terrorist 
attacks of September 11th generated transactions and data 
points across numerous systems, including visas, border 
crossings, traffic stops, cash deposits and withdrawals, 
airline tickets and others, one of the most important lessons 
we've learned is the need to build trust and coordination 
between different agencies and stakeholders in the fight 
against terrorism so that important pieces of information can 
be shared in a timely manner.
    To achieve better homeland security, the government needs 
the ability to connect different government infrastructures and 
knowledge bases through a variety of access points for 
coordinating information-sharing. Unfortunately the 
administration has devoted a significant percentage of 
increased spending for homeland security to facilitate change, 
or fortunately. In this hearing the subcommittee looks forward 
to hearing about the status of the programmatic and management 
challenges faced by agencies in the fight against terrorism. 
Additionally we look forward to hearing from agencies on their 
short-term and long-term technology acquisition strategies for 
meeting homeland security mission goals.
    As the private sector's experience with business 
intelligence investment has shown, technology acquisitions 
alone will not achieve a better coordination of information. 
There are stovepipes of knowledge to overcome, and we should 
not allow turf and resistance to change to hurt the homeland 
security mission. Relevant information needs to be shared from 
both an inter and intragovernmental view as well as from 
agencies to employees, agencies to businesses, and agencies to 
citizens.
    Despite longstanding efforts to improve cross-agency 
relationships, there has been relatively little success in 
developing systems and addressing the cultural barriers within 
agencies to enable different departments and agencies to share 
information with other entities in a predictable and rapid 
manner.
    These difficulties in cross-agency communication, when 
combined with technology differences, form barriers that 
prevent Federal agencies from meeting their homeland security 
missions. The challenge is to integrate the key data across 
diverse systems in both the public and private sectors to allow 
for the detection of patterns, the identification of threats 
and allocation of responses to those with a need to know. To 
meet this challenge, the government should adopt a two-step 
strategy. First, it should make a complete assessment of its 
antiterrorism knowledge needs and information-sharing 
requirements throughout government. Then after a thorough 
consideration of the proper information technology tools and 
human capital management practices, agencies should focus on 
managing changes to achieve the President's mandate: We direct 
every resource at our command to the disruption and the defeat 
of the global terror network.
    [The prepared statement of Hon. Thomas M. Davis of Virginia 
follows:]

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[GRAPHIC] [TIFF OMITTED] T4322.002

    Mr. Tom Davis of Virginia. I will now yield to my 
colleague, the ranking minority member from Texas, Mr. Turner 
for any statement he may wish to make.
    Mr. Turner. Thank you, Mr. Chairman. I want to commend you 
on hosting a hearing on this very timely subject. We all, I 
think, are still reeling from the shocks of September 11th, and 
I think we all understand that we face the greatest challenge 
of our Nation since World War II. There is no question that the 
destructive capability and the sophistication of terrorist 
networks like the al Qaeda network create for us a challenge 
unlike any we faced before. The tactics they use are 
unconventional. They work undercover, hidden from public view. 
Truly we have a challenge here that information technology can 
address.
    The power of technology is perhaps our strategic advantage 
in the war against terrorism. As we'll hear today from some of 
our witnesses, information technology and new management 
techniques offer hope for improving the safety and security of 
the American people. Getting all of the agencies of the Federal 
Government to work together to apply this technology may be an 
even greater challenge, but I have no doubt that those of you 
here who will testify today will share with us many innovative 
ideas that will allow the Federal Government to apply 
information technology to the war against terrorism. And so we 
look forward to hearing from you, and we look forward to the 
challenge of trying to make our Federal agencies responsive to 
the ideas that you will bring to us today.
    Thank you, Mr. Chairman. I look forward to hearing from all 
of our witnesses.
    Mr. Tom Davis of Virginia. Thank you very much, Mr. Turner.
    Mrs. Davis, any opening statement?
    The subcommittee is going to hear testimony from Pat 
Schambach, the Chief Information Officer of the U.S. Department 
of Transportation; Fernando Burbano, the Chief Information 
Officer for the State Department; S.W. Hall, the Chief 
Information Officer at the U.S. Customs Service; and Ronald 
Miller, the Chief Information Officer of FEMA. On our second 
panel, we're going to hear from distinguished private sector 
leaders, including Tom Siebel, the CEO of Siebel Systems; 
Alfred Mockett; the CEO of AMS; Steve Rohleder, the managing 
partner of Accenture; and Anne Altman, the managing director of 
IBM, Public Sector; Al Edmonds, president of the Federal 
Information Systems Division at EDS; and David Ferm, the 
president and CEO of Primedia Business-to-Business, Primedia, 
Inc.
    I would like to call our first panel to testify: Pat 
Schambach, Fernando Burbano, S.W. Hall, Ronald Miller. As you 
know, it's the policy of this committee that all witnesses be 
sworn before you testify. So if you'd rise with me and raise 
your right hand.
    [Witnesses sworn.]
    Mr. Tom Davis of Virginia. You can be seated.
    And to afford sufficient times for questions, if you'd just 
limit your comments to 5 minutes for any statement. Your total 
statements are going to be put in the record. We have read the 
total statements. So you have a light in front of you. When it 
turns orange, you have a minute to sum up, and when it turns 
red, that means your time's up. And if you can adhere to that, 
we can move the hearing along. Thank you very much.
    We'll begin with Mr. Schambach and then move to Mr. 
Burbano, Mr. Hall, and Mr. Miller.

STATEMENTS OF PATRICK R. SCHAMBACH, CHIEF INFORMATION OFFICER, 
  TRANSPORTATION SECURITY ADMINISTRATION, U.S. DEPARTMENT OF 
 TRANSPORTATION; FERNANDO BURBANO, CHIEF INFORMATION OFFICER, 
 U.S. DEPARTMENT OF STATE, ACCOMPANIED BY MARY RYAN, ASSISTANT 
SECRETARY OF STATE FOR CONSULAR AFFAIRS; S.W. HALL, JR., CHIEF 
   INFORMATION OFFICER, U.S. CUSTOMS DEPARTMENT; AND RONALD 
MILLER, CHIEF INFORMATION OFFICER, FEDERAL EMERGENCY MANAGEMENT 
                             AGENCY

    Mr. Schambach. Good morning Mr. Chairman, members of the 
subcommittee. I am Pat Schambach from the Transportation 
Security Administration. I'm pleased to be here today to 
testify about interagency information-sharing and knowledge 
management, particularly as they relate to our newly created 
agency.
    Secretary Mineta wanted me to acknowledge your interest in 
the Government's newest administration and to tell you that 
your support is greatly appreciated. While I'm only in my third 
week on board with TSA, the hard work and dedication of the 
folks who arrived before me have allowed us to meet 100 percent 
of the aggressive schedule that was mandated by your 
legislation. We're batting 1,000 in meeting our deadline so 
far. We're working hard to deliver the highest levels of 
security while providing conscientious and attentive customer 
service across all modes of the Nation's transportation system.
    To accomplish this mission in the most efficient and 
effective fashion, we will rely heavily on information-sharing 
and a solid technological platform on which to operate. It's 
through these totals that we'll be able to retain the 
confidence of the American public in our Nation's 
transportation system.
    In the worlds of security and customer service, the 
overarching values are responsiveness, communications, and 
continuous improvement. We must always look for methods that 
will provide greater security and deliver higher levels of 
satisfaction to all of our constituent groups. The backbone of 
this strategy is technology, and the fuel to drive our 
operation will be our ability to share knowledge with a 
multitude of agencies and stakeholders. Thank you for the 
opportunity to report on our efforts to date.
    Part of our vision is to be recognized as a model of 
public/private partnership. As you may be aware, we're 
receiving wonderful advice and inspiration from our Senior 
Advisor Program. This program has brought us seasoned 
executives from organizations like Cisco, Walt Disney World, 
Federal Express, Intel, Marriott, Solectron, to name a few who 
have shared their companies' best practices to help us 
establish TSA on a fast track. The approaches we're developing 
will have a long-lasting impact and provide direction as we 
implement explosive detection systems, passenger screening 
mechanisms and employee and cargo authorization systems to name 
just a few. You may be aware that Baltimore-Washington 
International Airport has graciously offered to be a pilot 
airport for development and testing of new security approaches. 
In addition, we've established a number of work-stream teams 
that are addressing things such as the security work force, 
technology infrastructure, performance management systems, and 
baggage and perimeter security processes.
    With the assistance of the Office of Homeland Security, the 
Department and TSA are working in collaboration with agencies 
such as the FBI, Customs, INS, and local and State law 
enforcement officials to identify information-sharing needs, 
sources and delivery methods to support immediate and long-term 
transportation security responsibilities. As a first step in 
addressing stovepipes of information, TSA is drafting memoranda 
of understanding with these partners to promote data-sharing 
opportunities as required by the Aviation and Transportation 
Security Act.
    Our objective is to ensure that our screener personnel and 
law enforcement officers have immediate access to necessary 
information. Technology can provide that today, and we're 
looking to identify ways to best integrate technology 
initiatives into our daily operations. In addition to working 
with our partners, we have also spent time planning our 
internal data-sharing strategy to ensure we have smooth 
command, control, communications and intelligence operations 
within our agency. The short-term congressional deadlines are 
driving the need to find interim and short-term solutions to 
communicate with our TSA staff, but as we create long-lasting 
solutions, data-sharing will connect many of our constituents.
    Mr. Chairman, the American people have expressed that we 
need to reduce barriers to information-sharing when it comes to 
ensuring security and will no longer accept excuses from any of 
us. What we have are processes or policies that need to be 
modified: For instance, solving overlapping and redundant 
organizational responsibilities and allowing us to work more 
smoothly across agencies and departments; managing the tension 
between security and the free exchange of information; becoming 
more comfortable with sharing information between government 
and industry, and seeing that as an opportunity rather than as 
a problem; managing the organizational coordination issues, 
connecting the dots so that we can clearly define areas of 
opportunity and get started on solutions; communicating among 
the significant numbers of players--government, industry, 
interest groups and, most importantly, the consumer--in all 
modes of transportation; melding immediate information needs 
and capabilities with longer-term strategies that are still 
being developed, thereby ensuring future compatibility; and 
what may prove to be the most difficult barrier of all, 
overcoming attitudes that information is power, and it needs to 
be hoarded rather than shared. We need to motivate people to 
see the value in sharing information.
    Every week we read about some new and different data-
sharing initiative by some organization or another. Even where 
there is recognized value in sharing, the simple fact is many 
of our systems don't talk to one another.
    The major focus of TSA is to establish a blueprint of our 
technology requirements and put in place a disciplined process 
for making investment decisions. The blueprint will identify 
our operational, telecommunications, customer relationship and 
administrative needs. We anticipate we would make no 
expenditure unless an investment is included in our blueprint 
and vetted through a capital investment approval process.
    And I will yield the rest of my time and be glad to answer 
questions at the end.
    Mr. Tom Davis of Virginia. Thank you very much.
    [The prepared statement of Mr. Schambach follows:]

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    Mr. Tom Davis of Virginia. Mr. Burbano, thanks for being 
here.
    Mr. Burbano. Thank you, Mr. Chairman, members of the 
subcommittee. I am pleased to appear before you to testify--OK. 
I will start over.
    Thank you Mr. Chairman, members of the subcommittee. I'm 
pleased to appear before you to testify on knowledge management 
and interagency technology cooperation. I'm accompanied by Mary 
Ryan, Assistant Secretary of State for Consular Affairs, who 
will be able to answer any questions related to the sharing of 
consular information.
    The Department of State is at a critical crossroads in 
terms of its position in international affairs and 21st century 
diplomacy. In addition to tremendous geopolitical changes, 
there has been a revolution in information technology 
symbolized by the Internet. We are embracing these changes to 
maintain our leadership role in the pursuit of U.S. foreign 
policy. We must and are putting in place the information 
technology that our people need.
    The Department is helping to facilitate the creation of 
common technology platforms to connect U.S. Government 
personnel overseas with one another, with their local and 
international counterparts, and with Washington. We need to 
build our international telecommunications network and work 
force to support modern business tools while guarding 
aggressively against cyberthreats.
    The Department of State coordinates and supports U.S. 
Government agencies' international activities by providing more 
than 30 agencies at 260 diplomatic and consular posts services 
such as sensitive but unclassified and classified e-mail 
support, telephone program management, emergency and evacuation 
radio support, mail service for both official and personal 
mail, and telegraphic traffic services.
    One of the pillars of the President's Management Agenda is 
``e-government.'' ``E-government'' means effective, efficient, 
and easy-to-use tools on people's desktops; robust, secure 
networks that are reliable and available whenever and wherever 
needed; and ready and rapid access to the wealth of information 
sources now available.
    Over the last 2 years, State will spend more than half a 
billion dollars procuring new information technology. We 
realize that procurement alone is not the answer. We must meet 
our business needs using existing technology as well as 
acquiring new. We are now looking at options to implement a 
replacement to the existing cable system by midyear fiscal year 
2004. It would unify how all State communications are 
generated, processed, used, distributed, achieved and 
retrieved.
    By May 2003, OpenNet Plus will provide practically all 
State employees worldwide with Internet Web access, using the 
existing OpenNet infrastructure. The deployment is under way 
and on schedule.
    By the end of 2003, the Classified Connectivity Program 
will give all our eligible posts access to classified e-mail 
and telegraph services as well as to Intelink and SIPRNet. This 
project is on schedule.
    The State Department has recently completed a prototype of 
the Overseas Presence Interagency Collaboration and Knowledge 
Management system at our embassies and consulates in India and 
Mexico. In fact, several of these vendors and bidders are 
testifying in your next panel.
    The deployment of ``information age'' information 
technology tools throughout the U.S. Government and the use of 
the Internet and SIPRNet as described above have raised the 
availability of agencies to share information and collaborate 
effectively to its highest level ever.
    The primary barriers to the Homeland Security Initiative 
and other initiatives to improve information-sharing among U.S. 
Government agencies are organizational, cultural and policy 
obstacles. There are security concerns as well, associated with 
multi-level access and informationsharing among unclassified--
Sensitive but Unclassified and Secret and Top Secret systems.
    One of State's most important functions related to Homeland 
Security is the provision of consular services. State has a 
very strong record of sharing data with other agencies to 
enhance border security. We provide information to such 
agencies as the FBI, DEA, INS and U.S. Customs.
    We also receive information from the INS, Customs, DEA and 
the national security agencies that help us keep terrorists, 
criminals and other undesirables out of the United States. 
Since September 11th, we have worked with the law enforcement 
community to obtain greater sharing of information on 
terrorists and other undesirables with our consular officers.
    In conclusion, the Department of State has two primary 
resources for the conduct of diplomacy: people and information. 
There is no element of the Federal Government whose employees 
are better qualified. On information exchange and knowledge 
management, however, I cannot yet make a comparable claim. 
Within 2 years the State Department will migrate to systems 
that are both simple and smart. Diplomacy conducted by 
worldclass diplomats requires no less than worldclass 
information technology. You have my assurance that we are doing 
all we can to reach that goal.
    Mr. Chairman, I'm happy to answer any questions you and 
other members of the subcommittees have. Thank you.
    Mr. Tom Davis of Virginia. Thank you very much.
    [The prepared statement of Mr. Burbano follows:]

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    Mr. Hall. Thank you, Mr. Chairman and members of the 
subcommittee, for this opportunity to testify on behalf of 
Commissioner Bonner and the U.S. Customs Service. Since 
September 11th, the highest priority at the U.S. Customs 
Service has been keeping terrorists and terrorists' weapons 
from entering the United States, and protecting and securing 
our land borders, seaports, and airports.
    We do not expect this change in priority to have a negative 
impact on our traditional law enforcement mission. To the 
contrary, we have seen evidence that our heightened 
counterterrorist measures have strengthened our overall 
interdiction efforts. We are pleased that our efforts in 
response to the terrorism threat have resulted in significant 
increases in drug seizures.
    Immediately following the terrorist attacks of September 
11th, Customs began operating under a Level 1 alert, our 
highest state of alert and readiness. We are still at Level 1 
today and will remain at this level as long as deemed necessary 
to ensure the security of our Nation.
    We have taken a number of specific steps to improve 
security along our Nation's borders and have a number of 
initiatives both within and outside the agency that focus on 
protecting the borders through collaboration and information-
sharing. We increased staff at every border crossing. Even 
those in our most remote locations are staffed with a minimum 
of 2 armed officers 24 hours a day, 7 days a week. To ensure 
that this minimum is in place at every port of entry, we 
detailed more than 100 inspectors from other ports to fill 
understaffed northern border posts.
    Customs established a new Office of Antiterrorism to ensure 
that the various disciplines at Customs work together 
effectively in the fight against terrorism. This office also 
coordinates antiterrorism efforts with other government 
agencies responsible for various aspects of homeland security.
    Customs established the Office of Border Security whose 
mission is to develop more sophisticated antiterrorism 
targeting techniques for passengers and cargo in each border 
environment.
    Customs is also leading Operation Green Quest, a 
multiagency initiative to stamp out terrorist funding by 
identifying, disrupting, and dismantling the financial systems 
and infrastructures that terrorist organizations use to fund 
their work.
    To further combat the terrorist threat, Customs instituted 
Project Shield America, an industry outreach initiative 
dedicated to enlisting the cooperation of U.S. manufacturers 
and distributors in the identification, prevention, and 
apprehension of international terrorist organizations seeking 
to obtain weapons, equipment and sensitive technologies that 
could be used to carry out terrorist attacks against the United 
States.
    Along with the Department of Transportation, Customs is 
cochairing a multiagency container working group tasked with 
exploring issues related to the security of marine containers 
and cross-border trucks. The Office of Homeland Security has 
identified this working group as the primary group responsible 
for coordinating the Federal Government's response to container 
security.
    We have taken many positive steps toward protecting our 
Nation's borders, but believe that Customs must also do 
everything possible to push the border outwards. The perimeter 
of security must be expanded away from our national boundaries 
and toward foreign ports of departure. The ultimate aim of 
pushing the border outward is to allow U.S. Customs more time 
to anticipate and stop threats before they reach us and to 
expedite the flow of low-risk commerce across our borders.
    Any effort to push the border outward must include the 
direct involvement of our partners in the trade community. In 
November, Customs proposed a new Customs-Trade Partnership 
Against Terrorism. This partnership is dedicated to vastly 
improving security along the entire supply chain from the 
loading docks of foreign vendors to our land borders, seaports, 
and airports. And last month Customs proposed a container 
security initiative to address the vulnerability of cargo 
containers to the smuggling of terrorists and terrorist 
weapons.
    Technology and information-sharing are essential to our 
counterterrorist mission. Timely, accurate and complete 
information is vital to homeland security. Therefore, we must 
mandate that the appropriate parties in the transportation 
chain provide information in advance to enable Customs to 
determine whether a particular shipment warrants closer 
scrutiny. In fact, access to advanced information for 
passengers and cargo would expand on our successful efforts to 
require our airlines to submit passenger manifests to our 
Advanced Passenger Information System.
    The Automated Commercial Environment, or ACE, Customs' 
first modernization project, will offer major advances to 
expedite trade and greatly enhance our targeting abilities. ACE 
will help overcome information stovepipes and enhance border 
security by allowing shipment information to be analyzed prior 
to arrival and enabling real-time advanced interagency 
assessment of risks and threats to determine if a shipment is 
to be examined or cleared for release. To comply with the 
approximately 400 laws from 100 government agencies, the trade 
community currently files their data with various agencies. The 
International Trade Data System, the single interface for the 
submission of import and export data to the U.S. Government, 
will be a fully integrated part of ACE. We continue to work 
closely with other government agencies and the trade community 
to define information requirements and integrate these into 
ACE.
    Mr. Chairman, I firmly believe that Customs has the 
expertise, the experience, the tools and the personnel 
necessary to protect our Nation's borders and to serve as a 
critical deterrent to terrorists who would target America. 
Thank you again, Mr. Chairman and members of the subcommittee, 
for this opportunity to testify. I look forward to answering 
any questions you may have.
    Mr. Tom Davis of Virginia. Thank you.
    [The prepared statement of Mr. Hall follows:]

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    Mr. Tom Davis of Virginia. Mr. Miller. Thanks for being 
with us.
    Mr. Miller. Mr. Chairman and members of the subcommittee, I 
appreciate the opportunity to appear before you today to 
discuss this critical and compelling topic.
    This is an extraordinary time to be the Chief Information 
Officer at FEMA. Homeland security is dominating the policy 
agenda, and this is occurring against the backdrop of the 
information age, which has transformed the way we deliver 
government services as well as transforming our culture and our 
economy. FEMA's IT enterprise sits at the convergence of these 
two prevailing trends, and as the information providers for the 
Nation's emergency management community, we have a charge to 
deliver the best possible information as quickly as possible so 
that we can provide for the protection of our people, our 
property, and their way of life.
    During the course of our recent review of regional and 
State capabilities to combat terrorism, one of the most 
critical and most frequently stated requirements is for the 
Federal Government to speak with a single authoritative voice 
on homeland security matters. There are several communities of 
interests that are encompassed under the banner of homeland 
security, emergency medical services, firefighters and law 
enforcement just to name a few, and each of them has a sponsor 
within the Federal Government that they turn to. Problems arise 
when these sponsors send information that varies in content and 
level of detail to their constituents, who often interact at 
the State and local level and are left to determine which 
Federal information is reliable enough to act on.
    The State and local emergency managers with whom FEMA 
interacts on a regular bases are particularly susceptible to 
these multiple Federal information stovepipes since their 
duties require that they coordinate information-sharing and 
preparedness, readiness and response activities among all 
entities responsible for homeland security.
    The Federal Government needs to develop a new service 
delivery model that better supports State and local officials 
and individual citizens, particularly where the protection of 
lives and property are concerned. If the defense of American 
lives and livelihoods cannot engender within us a motivation to 
break down the barriers to cooperation and information-sharing 
within the Federal Government, then we have failed as stewards 
of the resources with which the American people have entrusted 
us.
    In an effort to address this deficiency, FEMA's been 
actively involved with the Office of Homeland Security in 
identifying information-sharing opportunities. Because FEMA is 
a successful model of interagency and State and local 
cooperation, we bring a much-needed perspective to the 
policymakers under Governor Ridge's direction.
    Working in conjunction with the Office of Homeland 
Security, I have assisted in advancing the administration's 
agenda of integrating a Federal information management strategy 
to support homeland security based on a structured approach 
that addresses the following factors: The first of these is 
discovery. We've been working with the State and local 
governments to determine what business processes need to change 
and what technology needs to be employed to improve our 
information support to homeland security. The administration 
recognizes that this requires a detailed understanding of how 
we currently do business and what IT tools we use to get the 
job done. Acknowledging the need to avoid a rush to judgment, 
the administration is assuring that we clearly define the 
problem before we push the solution.
    The second, operational authority. The Office of Homeland 
Security is responsible for policy and coordination, but not 
for operations, so they are ensuring that each homeland 
security IT initiative has a lead agency assigned to manage the 
effort and coordinate among participating agencies, each of 
which will acknowledge that lead agency's authority. If 
organizational leadership is not established from the 
beginning, these initiatives will become mired in agency 
politics, and they can't succeed, which is an unacceptable 
outcome given the gravity of the situation.
    Process improvement is the third factor. We need to apply 
the concept of simplify and unify to reengineer the delivery of 
IT services in support of homeland security. This means 
standardization across the Federal Government. It also means 
simplification and relief from rules and regulations wherever 
possible. This requires changing the culture of Federal 
Government, which is the most significant challenge before us.
    The last factor is technology, because it's probably the 
easiest to resolve. Once we know how we do business, and once 
we have eliminated the things that are barriers to efficiency 
and effectiveness, overlaying technology will help us 
accomplish those objectives in a straightforward fashion. 
Industry can assist us by bringing to bear the things that they 
have learned through best practices and process improvements 
gathered from years of satisfying customers through effective 
products or service delivery and doing so with efficiency to 
sustain and enhance their operations. There is much we can 
learn from private industry in terms of how they do business, 
and I look forward to their expertise enabling us to learn and 
develop new models from them.
    I thank you for this opportunity to appear before you, and 
I would be happy to take any questions at this time.
    Mr. Tom Davis of Virginia. Thank you very much.
    [The prepared statement of Mr. Miller follows:]

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    Mr. Tom Davis of Virginia. We will start with the 
questioning with Mrs. Davis, but let me make one announcement 
first. We do have an overflow room, 2247, because not everybody 
could get in the hearing room today. I want to announce that's 
there. For the people who are manning the door, you can send 
people to 2247 who couldn't get in. They can see the hearing 
there on closed-circuit television.
    Second, just note that the administration is going to be 
spending a lot of money, and Congress put a lot of money out 
the door very quickly out here. And we're counting on you all 
to make sure this money is spent well, that it's coordinated, 
because you know the administration has instituted its own 
grading system, and there are going to be ramifications for 
agencies that can't do the job. There will also be 
ramifications from here.
    All of you are here because you have done a very competent 
job of what you're doing. We want to hear what you're doing. 
They can be a model for other agencies as well. But I just 
finished a series of town meetings this weekend in my district, 
and a lot of people said, you're spending money quickly, just 
make sure we don't waste it in a procurement process. A lot of 
my constituents work for contractors and for the Federal 
Government, and it's really going to be up to you to make sure 
this money is spent in a coordinated fashion and that we get 
what we're paying for. The taxpayers are counting on you, and 
the country's counting on you.
    Mrs. Davis.
    Mrs. Jo Ann Davis of Virginia. Thank you, Mr. Chairman, and 
thank you, gentlemen, for coming to testify on a very important 
issue this morning.
    Mr. Miller, you sort of hit on my question when you said we 
should request relief from rules and regulations wherever 
possible to simplify our delivery models, and my question to 
all of you is that within your agencies what are the major 
regulatory and statutory obstacles that you believe is in your 
way in integrating and sharing data, and how are you addressing 
these, and is there something that Congress should do to 
address these problems? And second, what reassurances could you 
provide the citizens who are concerned about compromising 
privacy as we integrate our data across the agencies?
    And I'll start with whichever one of you wants to start 
first.
    Mr. Schambach. Actually I don't have a whole lot to offer, 
being a brand new agency, but what we're trying to do is avoid 
establishing those rigid lines that--that will keep us from 
being able to share information with other agencies. I'm sure 
that we're inheriting some regulatory red tape from the FAA 
structure and others that we were recreated from, but I know 
our executive staff is committed to keep from establishing such 
a rigid structure that would prohibit us from doing the right 
thing.
    Mrs. Jo Ann Davis of Virginia. Thank you.
    Mr. Burbano. One of the things that I think that definitely 
needs to be done is the law enforcement and intel sharing 
between those two entities that traditionally have been 
separate. Homeland Security and Department of Justice are 
working on that.
    In terms of privacy what we're doing there is making sure 
that our systems are totally secure with ``confidential'' and 
``secret'' information.
    Mr. Hall. While I would like to observe that we believe 
there's a lot of sharing going on already, I think the primary 
obstacles are more cultural than regulatory. There could be 
some progress made in the area of relaxing some of the 
statutory limitations that authorize particular agencies to 
collect certain kinds of information which tends to turn that 
into an ownership issue, but I find it has more to do with 
willingness to share that information than any statutory 
obstacles. So I think those are things we all need to work on 
in terms of change management and changing attitudes, but we 
might want to take a fresh look at what the statutory framework 
is for the collection of some of this information, primarily in 
the area of protection of privacy.
    Mrs. Jo Ann Davis of Virginia. Thank you.
    Mr. Miller. One of the interesting things we've discovered 
at FEMA through the course of our reviews of the policies 
within the agency that govern our activities is that a lot of 
these policies tend to be more restrictive than the laws from 
which they were generated. So one of things we're definitely 
trying to do is to make sure that we're not tying our own hands 
in terms of executing these laws, and trying to be as efficient 
and effective as possible with the job that we have before us.
    As you know, the Stafford Act governs a great many of our 
activities, and as we move toward an interagency disaster Web 
portal under the e-government initiative, one of the things 
that we would hope to look for is some review of that act to 
ensure that there are no barriers within it for cross-agency 
sharing of disaster preparedness, readiness, response and 
recovery information, as well as the integration of disaster 
benefits processing under a single portal.
    And in terms of protecting information, one of the steps 
we've taken is to consolidate all of our information technology 
security functions into a single office that reports directly 
to me, and also establishing IT security as our No. 1 priority. 
I'm not so far removed from the private sector that I remember 
what it's like to be evaluated, and when we got our D in the 
report card for security, that certainly was a motivation for 
us to take some immediate action to try and at least put in 
some structural improvements. And we're going to make sure that 
whatever we need for security that it's funded, that we put 
that at the top of our priority list.
    Mrs. Jo Ann Davis of Virginia. Thank you, gentlemen. I 
would urge that if there's anything we need to do here in 
Congress to make this information-sharing an easier task for 
you, because I think we all agree that it's something very 
important and we need to do it now, so if you would just make 
sure you just keep us informed as soon as possible.
    And thank you, Mr. Chairman.
    Mr. Tom Davis of Virginia. Thank you very much, Mrs. Davis.
    Mr. Turner.
    Mr. Turner. Thank you, Mr. Chairman.
    Mr. Hall, when we talk about sharing information between 
agencies, there are so many different examples of where that 
needs to work. One that you mentioned in your testimony where 
there has been multiagency activity is in Operation Green 
Quest, the effort to try to disrupt the financial system, 
financial infrastructure that terrorists use. Could you 
describe for us how that has worked, what agencies have been 
involved? I notice you mentioned briefly in your testimony some 
of the results of that work, but I'd like for you to be a 
little more specific about how successful we've been in 
disrupting the financial network of terrorists.
    Mr. Hall. We essentially operate a joint what we call 
command center today, which has approximately 70 agents from 
various law enforcement organizations involved in this work. 
Ones that come to mind in addition to Customs are 
representation from Secret Service, the FinCEN group, and FBI. 
This has been a very collaborative effort, and I would be happy 
to provide statistics for the record. I don't have those on the 
tip of my tongue, but I know there have been a number of 
successful operations where they have identified financial 
organizations that were contributing to the movement of 
resources for terrorist organizations, and warrants have been 
served, charges are being brought. But I would offer to provide 
that to you in the record.
    Mr. Turner. How have we applied technology to this effort, 
and is it some new initiative, or was it simply preexisting 
technology that's been utilized and to a greater degree?
    Mr. Hall. To date this has largely been based on existing 
information sources and systems. We have a fair amount of 
financial information going into the problem. This, I think, 
really reflects more of a collaborative approach to the 
investigation and the prosecution of subjects once they've been 
identified.
    Mr. Turner. One other area that you mentioned is the Office 
of Border Security. The mission of that office is to develop 
more sophisticated antiterrorism targeting techniques for 
passengers and cargo in each border environment. It seems to me 
much of the technology that you might try to use there would 
also be the type technology that our new Office On 
Transportation Security would utilize. Has there been any work 
between the two agencies with regard to that effort?
    Mr. Hall. Yes, sir. That effort primarily is focusing on 
improving the sophistication of our analytical capabilities to 
identify relationships and patterns in the data that we have. 
Customs has been working in this area for 6 or 7 years. We have 
a number of applications that do various kinds of targeting. 
Since September 11th we've been very actively engaged not only 
with the Homeland Security Office and other law enforcement 
agencies, but, as the Transportation Security Administration 
stands up, to make our experience and lessons learned available 
as well as to take advantage of the fresh thinking that's 
coming from their organization.
    Mr. Turner. Mr. Schambach, obviously you haven't been on 
the job too long, but have you had contact with Customs, with 
Mr. Hall, regarding their efforts? Is this already ongoing?
    Mr. Schambach. It is ongoing. We've had teams visiting not 
only other law enforcement agencies like Customs--and I've 
known Mr. Hall quite a long time myself, and we have a good 
working relationship--but we have visited his organization. The 
airlines themselves have done a lot in this area. The airport 
authorities have done a lot in this area. And as a new 
organization, we're doing our best to learn the best practices 
of what's been applied before and what has worked for them to 
avoid duplication and overlap. That's the correct observation.
    Mr. Turner. All right. Thank you.
    Thank you, Mr. Chairman.
    Mr. Tom Davis of Virginia. Thank you very much.
    In the testimony of the next panel, Mr. Mockett of AMS is 
going to cite a project that his company's done with the 
Commonwealth of Virginia in which AMS and Virginia share the 
risks and rewards of the project. We often call these share and 
savings contracts approaches, and in IT that, of course, limits 
the government's downside if the program doesn't work. There's 
a huge upside for contractors, and that sometimes will raise 
eyebrows, and the public looking and are you overpaying, but it 
limits the downside, and my experience in looking at IT 
contracts over the last decade is there's been a lot of 
downside to some of the contracts that we've gone out and let.
    What are your feelings, each of you, on the possibility of 
utilizing something like share and savings contracts as we move 
out to make sure we can at least get what we're paying for, and 
that we get the projects that work, that accomplish our 
mission? It seems to me so often we end up letting projects, 
and the result is whatever the result is, but it doesn't 
accomplish the mission. We kind of let the regulations and the 
procurement language drive the final product instead of the 
actual mission we're trying to accomplish. I'd appreciate each 
of your thoughts on that. I'll start here with Mr. Schambach.
    Mr. Schambach. Yes, sir. Actually historically I--I have 
become an outsourcing bigot when it comes to IT and reliance on 
the private sector. At the Bureau of Alcohol, Tobacco and 
Firearms you may recall I began an outsourcing of our Seek 
management desktop computer environment, and we were the first 
agency to do an enterprisewide outsourcing of the desktop. We 
were just pursuing share and savings, share and revenue 
initiatives at ATF when I left there to come to TSA, working 
with AMS and several other vendors.
    So I think there are definitely opportunities in a number 
of agencies. Being so new at TSA, I haven't really identified 
yet what those opportunities are in TSA. But obviously we can't 
stand up an agency of tens of thousands of people in a year and 
do it with government resources without relying on private 
industry. There's going a to be a lot of outsourcing going on 
in our agency.
    Mr. Tom Davis of Virginia. Mr. Burbano.
    Mr. Burbano. I think it's a good concept. It's one we 
definitely need to look at and we will look at it, I think 
you're also right in terms of where the public has also looked 
at it and thought whether the vendors were making too much 
money on it specifically. The parking one in D.C. I think is a 
good example of the big public outcry. That's not to say that 
it's not a bad concept, but it does need to be looked at, and 
we will look at it. I think it works more on----
    Mr. Tom Davis of Virginia. Have you had some experience 
with that? Have you ever worked in your own experience with 
that kind of vehicle before?
    Mr. Burbano. No, I haven't. But we are going to be looking 
at it. I think based on what I've read, it is very good for 
transactional base-type systems like the parking where you get 
parking tickets and so forth. That's transactional. It becomes 
a little bit harder to implement when its nontransactional, and 
a lot of these applications are not----
    Mr. Tom Davis of Virginia. It's hard to measure. I mean, 
it's----
    Mr. Burbano. Exactly.
    Mr. Tom Davis of Virginia. Obviously it doesn't work in 
areas that are hard to measure what you're trying to get.
    Mr. Burbano. So you can measure tickets. In transactional 
bases it works well, but you're right, in areas that you can't 
measure, it's very tough.
    Mr. Tom Davis of Virginia. OK.
    Mr. Hall. We've been taking a close look at share and 
savings as we implement our modernization contract. Let me 
generalize first and then address your specific question.
    I think the Federal Government has made a lot of progress 
over the last 10 years as we have streamlined and modernized 
our procurement rules and regulations, and I think a good 
example of that is our ability to successfully award a $1 
billion plus contract in 4 months, from RP release to contract 
reward. That would have been unheard of 10 or 15 years ago.
    I think we're in the midst still of a lot of cultural 
change though. There's still a lot of resistance to new ways of 
thinking about procurement, but having said that, one of the 
things that we're trying to do to implement share and savings 
within our modernization effort is relook at how we can 
incentivize the contractor to come in below cost and with--and 
early, and we think there's a lot of promise there.
    The resistance is the motivation really. You have to do 
something about the balance between how much profit or fee 
you're willing to pay to encourage that kind of behavior, and 
you need to make sure that you've got a very credible baseline 
established, that you've got very credible understanding of 
what the costs would have been, how long it should have taken 
so that you don't get into gaming. But we're hopeful that we're 
going to be able to implement those kinds of methodologies in 
the near term within our modernization effort.
    Mr. Miller. This is a topic that is near and dear to my 
heart. I was in the private industry for 9 years before I took 
this job, and so I've been on both sides of the fence, and I 
know from a private industry perspective what I would expect 
from a customer to be able to deliver to them the services that 
they need.
    I think that there needs to be a mature procurement culture 
within the Federal Government that really puts an emphasis on 
definition and on measurement, on the kinds of precise things 
that will allow them to properly define the work and make sure 
as the work is progressing to have certain checkpoints 
throughout to make sure that the project is not straying off 
course.
    We're taking a very hard look in our ITS directorate at the 
entire set of contracts that we have right now. We've 
identified 11 categories of work that we believe are critical 
to what we're trying to do, and we're trying to push for 
improvements in each of those areas. We're trying to eliminate 
duplicative efforts where we find them, and once we identify 
the type of work that needs to be done, we want to put more 
performance-based documents--language into the contracts that 
we go out for.
    I'm not familiar with this particular type of reform, but 
I'm certainly interested in it because we're trying to 
basically throw open the process and really look for any 
innovative ways to do business, and we really need it because 
we're not in a position to, given the kinds of issues we're 
dealing with in homeland security, to wait for the Federal 
Government work force to become educated in all of the 
processes and techniques that we need to learn.
    I think we can work as a team. We know what we need to do, 
we know what we need to execute, but somebody needs to help us 
get there quickly, and I think that's where private industry 
offers an invaluable service.
    Mr. Tom Davis of Virginia. Thank you very much.
    Mr. Turner.
    Mr. Turner. Mr. Schambach, I had a question that I wanted 
to address to you that was brought to my attention by one of my 
colleagues the other day at the airport when he showed me a 
little card that had been demonstrated to him recently allowing 
him to be identified as he boarded or could be used to identify 
him as he boards. Is it your thinking that there needs to be 
some way of advanced screening of at least frequent fliers so 
that those individuals could have a little easier process of 
boarding and going through security? Is that kind of the 
direction you're trying to go? And I know there's technology 
out there to do that, such as the card that one of my 
colleagues showed me. Is that a direction that you're trying to 
head?
    Mr. Schambach. Well, that's probably, as you know, a very 
thorny issue that I'm--I'm probably going to avoid a direct 
response to. However, we do have one of our work-stream teams 
looking at biometric and card technology.
    As you--as you say, there's technology existing today that 
will do what needs to be done. Our primary focus is going to be 
on the tens of thousands of employees and others who need 
access in and around airport perimeter and interior space. If 
we could free up security resources from having to check and 
double-check those employees, then we can free up a lot of 
resources to do more with the traveling public.
    The issue of a frequent flyer, frequent identification 
card, there's a lot of policy impacts around that issue and not 
something that I'm intimately familiar with and can give you a 
direct answer to. I have a personal opinion. I don't know that 
trusted today means trusted tomorrow from a security 
perspective. I have questions about the validity of that 
assumption. However, from a technological standpoint there are 
certainly plenty of answers out there today.
    Mr. Turner. Thank you.
    Thank you, Mr. Chairman.
    Mr. Tom Davis of Virginia. Thank you.
    I just have a few more questions to sum up with this panel 
before we move to the next. Let me ask Mr. Burbano, in this 
statement in the next panel, Mr. Rohleder of Accenture is going 
to note that the State Department prototype system, the 
Overseas Presence Interagency Collaboration system which uses 
Web-based collaboration tools to provide knowledge management 
and collaboration tools over an Intranet of 40 Federal 
agencies, I wonder if you've evaluated that at State and the 
effectiveness of this prototype.
    Mr. Burbano. We've just finished the prototype evaluation 
in India-Mexico. We're getting ready to announce the award. As 
a matter of fact, today from the three finalist vendors. The 
winner will then integrate the package and start the pilot in 
May with a wrap-up in September.
    Mr. Tom Davis of Virginia. So--OK. So we'll know today at 
least who you're selecting on this, and you think the prototype 
then has a lot of utility?
    Mr. Burbano. Absolutely. In fact, I just got back from 
India last week where I visited the embassy and two consulates. 
I had a chance to talk to the various folks, business types and 
IT, from the State Department, and the various agencies out 
there, and there was unanimous, strong support for these 
systems. In fact, many of these people participated in the 
evaluation and are just really geared up to get the award and 
get it rolling!
    Mr. Tom Davis of Virginia. And you're comfortable with the 
level of bids and services that came in on that?
    Mr. Burbano. Absolutely. We did a two-stage procurement. 
Normally you award to just one. When we made the award in July, 
we awarded it to three because we did not want to make the 
decision based on a paper submission. We had these contractors 
develop a prototype so we could actually see the demonstrated 
proposals as opposed to paper proposals. Then we picked the 
winner, and so it's a two-stage process.
    Mr. Tom Davis of Virginia. Great.
    Let me ask Mr. Hall, obviously ensuring the effective 
movement of cargo and people across the Nation's borders 
requires Customs to work with a lot of Federal agencies, like 
the FDA, AFIS, and INS. To what extent does Customs share 
information electronically with these agencies today? Do you 
see opportunities for additional sharing, and what barriers do 
you see that exist that would preclude additional d-a-t-a 
sharing?
    Mr. Hall. Chairman, there is--for some time there's been 
considerable automated sharing of information between Federal 
law enforcement agencies and other government agencies. We 
operate a system called TECS, Treasury Enforcement 
Communications System, which actually serves as a gateway for 
many agencies to some of the larger data bases. Some of them 
are ours; some of them belong to the FBI. It also facilitates 
access to State and local information as well as providing 
access to Federal resources to some of those, and--and I think 
that has been a very effective use of technology to improve 
communications.
    There's always room to do better. I think a number of these 
joint investigations that I mentioned that are under way and 
many of these collaborative efforts that have been undertaken 
since September 11th are identifying new and important ways we 
can improve the way we use and share this information. I think 
the best thing we can do to move those efforts forward is to 
ensure that the resources are there. There have been a number 
of requests made, and when you get to that point in the budget 
process, I think support in that area would be very helpful.
    Mr. Davis. Thank you.
    Mr. Miller, let me ask you a question. FEMA interacts with 
a lot of other entities including State, local governments and 
a lot of private sector groups as well as when you respond to a 
disaster, and I know you use a lot of technology to coordinate 
all of this information moving back and forth. Any lesson that 
we can draw from FEMA's use of technology as the administration 
moves into its coordination of a much broader homeland security 
area?
    Mr. Miller. Well, one of the things I think we've learned 
from the recent years in technology is that we need to bring 
the State and local governments into the development process 
from the very beginning. I think it's important that we not 
build something that we then try to impose on State and local 
governments in terms of providing disaster assistance.
    As we move forward with this e-gov initiative on disaster 
assistance, it's our intention to have nongovernmental 
organizations like the National Emergency Managers Association, 
some of the interagency organizations that work with the State 
and local governments and have them included in defining the 
requirements for this kind of a system.
    I think it's important, too, to realize that we've got a 
rather comprehensive effort ahead of us in trying to build a 
disaster Web portal that supports all of the disaster programs 
and information in the Federal Government. It's amazing how 
many days can go by and we discover new things every day that 
the Federal Government's doing either to provide new 
information, to help people be better prepared, to provide 
alerts in case of an imminent event or to provide assistance 
after the fact. So the challenge and information gathering is 
probably key to us being successful in the future, and that 
means not just across the Federal Government, but down to the 
State and local levels, too, and we're trying to get as many of 
those in as possible.
    Mr. Tom Davis of Virginia. Thank you very much.
    I thank everyone on the panel for your participation today. 
We may have some additional questions that we'll send you in a 
written fashion.
    I want to move to the next panel. I'm going to declare a 2-
minute recess while we allow to you leave and allow the next 
panel to step forward, but you have the committee's thanks for 
your participation today. This is very helpful.
    [Recess.]
    Mr. Davis of Virginia. I think we are ready to start our 
second panel. I welcome our second panel, Mr. Tom Siebel of 
Siebel Systems, Mr. Alfred Mockett of AMS, Mr. Steve Rohleder 
of Accenture, Anne Altman of IBM, Mr. Al Edmonds of EDS and 
David Ferm of Primedia, Inc.
    If you would stand with me and raise your right hand.
    [Witnesses sworn.]
    Mr. Davis of Virginia. We have your testimony. If you 
could, try to hold it to 5 minutes. You have a timer in front 
of you; when it turns orange, that means you have a minute to 
sum up and when it turns red, try to move to sum up as quick as 
you can.
    Tom, we will start with you. We appreciate your being here.

   STATEMENTS OF TOM SIEBEL, CHIEF EXECUTIVE OFFICER, SIEBEL 
 SYSTEMS; ALFRED MOCKETT, CHIEF EXECUTIVE OFFICER, AMS, INC.; 
   STEVE ROHLEDER, MANAGING PARTNER, ACCENTURE; ANNE ALTMAN, 
    MANAGING DIRECTOR, U.S. FEDERAL, IBM, PUBLIC SECTOR; AL 
EDMONDS, PRESIDENT, FEDERAL INFORMATION SYSTEMS DIVISION, EDS; 
  DAVID FERM, CHIEF EXECUTIVE OFFICER, BUSINESS-TO-BUSINESS, 
                         PRIMEDIA, INC.

    Mr. Siebel. Thank you, Mr. Chairman. It is a great honor to 
address this committee this morning. Let me just give you a 
brief--as you know, I am the chairman and CEO of Siebel 
Systems. It is an enterprise application software company.
    We're generally in the business of allowing organizations 
in the private sector and in the public sector to apply 
information technology and communication technology to the 
problem of establishing and maintaining relationships with 
customers and with consumers--now--with customers and with 
citizens, actually, as in the case of the public sector.
    Now, in the course of meeting the needs of this market, we 
have come up--actually, the fastest growing software company in 
history. We're the second largest enterprise application 
software company in the world, according to Fortune Magazine 
this year. We're the second fastest growing company in the 
United States. We employ 8,000 professionals in 40 countries. 
We deliver today 300 products in 25 languages.
    Generally, what we do for some of the world's largest 
multinational organizations--like a Daimler, like a General 
Motors, like an IBM, a Deutsche Telekom, a Deutsche Bank, a 
Singapore Telecom--is, we enable them to deploy these 
multichannel communication strategies with their market so 
these retail systems and e-sales, e-marketing, e-services 
systems over the Web, call center systems, point-of-purchase 
systems, Web TV and kiosk systems enable a customer, for 
example, at General Motors to randomly transnavigate a 
multiplicity of communication and distribution channels and 
carry on a dialog with a product or service provider.
    In the case of a Charles Schwab or in the case of a General 
Motors, we can see the customer moving from the dealership to 
the call center to the auto PC, to the kiosk on Market Street 
to the Internet at 2 in the morning to the auto PC, to the 
kiosk, to the dealership and carry on a dialog with their 
product and service provider about product use, product 
selection, product enhancement, service, whatever it may be.
    The net of it is, no matter how--this general area is 
called contact management, and no matter how this individual 
approaches us through the Web, through the call center through 
one of our resellers, through an associated company, we know 
who they are, where they came from, what their associations 
are, what their history of associations is, what their history 
of product use is, what their buying intentions may be. And the 
net of that is, we can offer them very, very high levels of 
customer service.
    Now, we've invested in the past 8 years $1 billion building 
this technology foundation, and since September 11th, in 
response to the call from the President, we set as our No. 1 
priority to see how this technology might be--this area that we 
call contact management, might be applied to track our 
relationship with a different type of individual who is not a 
customer. And so basically, for the past 5 months, our No. 1 
corporate priority--and I have had hundreds of people working 
on this--is basically applying this technology foundation to 
the homeland security problem.
    Specifically, just like we've adapted our technology--and 
we work with IBM, we work with Accenture, we work with AMS and 
we built systems for the automotive market at General Motors, 
financial services market at Chase. We have vertical market 
manifestations. We said, Gee, let's build a vertical market 
manifestation of this technology foundation to meet the 
homeland security opportunity.
    And so we have built a system that enables a multiplicity 
of government agencies and private sector organizations to 
coordinate information in such a manner to detect, to prevent 
and to remediate threats associated with biohazard, border 
incursion and various physical threats.
    Now let's take a look at the sequence of events that led up 
to the disaster, the catastrophe of September 11th, to see how 
such an information technology foundation might have been 
applied. And this time line--this is all available from 
basically published information. In January 2000, Mohammed 
Atta, who is the ring leader of the September 11th attacks, 
obtained a visa in Hamburg, Germany, to enter the United 
States. The Department of State knew about it that day and it 
was in their information systems.
    In June 2000, Mohammed Atta met with an Iraqi intelligence 
agency in Prague. This was reported to the CIA and so noted 
that month by Czech intelligence.
    In June 2000, Mohammed Atta traveled to the United States 
and passed through immigration at Newark Airport. INS knew 
about that immediately, and it was a recorded event in their 
information systems.
    In July 2000, approximately $100,000 is wired to Mohammed 
Atta from Mustafa Ahmad. This guy is a known Osama bin Laden 
operative in the United Arab Emirates. The Treasury Department 
knew about it the day the transaction occurred. By the way, the 
largest transaction in this guy's checking account up to that 
date had been a $300 withdrawal from an ATM machine, same 
month.
    Another $100,000 is wired to a guy named Marwan al-Shehhi. 
This is Atta's roommate. This is the guy who piloted United 
Flight 175 into the South Tower of the World Trade Center. The 
Department of Treasury knew about it that day and it was 
recorded in their information system.
    December 2000, Mohammed Atta and his co-pilot, Marwan al-
Shehhi leave an airplane running on the runway in Miami, 
abandoned the plane, run off the airport, rented a vehicle and 
escaped. Pretty unusual event--first time it happened in 18 
months. The FAA knew about it and recorded it as an event.
    April 2001, Mohammed Atta flies from Florida to Prague to 
meet Ahmed al-Ani. CIA knew about it that week and they have a 
record of it from Czech intelligence.
    April 2001, Atta is arrested by the Florida police for 
driving without a license. A subsequent warrant was issued for 
his arrest when he failed to appear for trial. Florida State 
police knew about it and it was recorded in the system. NCIC 
knew about it.
    August 17, 2001, the story gets better. We have a guy 
learning to fly up in Minneapolis, Zacarias Moussaoui. His 
flight instructor is a little concerned. He calls the FBI and 
says, Gee, he doesn't know how to land this plane, he doesn't 
know how to take off. I think maybe he wants to figure out how 
use the 747 as a bomb. This is recorded by the local FBI agent 
and is in their system--I wish I had an example; I didn't bring 
one with me--and this guy is arrested for a visa violation. FBI 
knew about it that day.
    August 2001, CIA asked INS to watch out for a guy named 
Khalid al-Midhar and Nawaf Alhazmi. And these are the two 
hijackers who flew American Airlines Flight 77 into the 
Pentagon. INS reports that they are already in the country. CIA 
and INS knew it that day.
    This goes on with these guys getting picked up by the 
Maryland police on September 9.
    The information was there, the associations were known, 
French intelligence told us about the associations; and had 
these organizations been able to coordinate the information--I 
mean, there is sufficient information to be able to--one thing, 
you didn't want these guys getting on an airplane. And the 
multiple agencies had the relevant information; they were all 
doing the right thing and there was no way to associate the 
information.
    Had the right technology been in place, the State and 
Federal agencies involved could have identified and prevented 
this threat.
    Now, the technology is available today in the private 
sector to address many, many of these important problems. We 
are the second largest enterprise application software company 
in the world. I set this as my No. 1 priority going back to 
last September to focus on this area. And we've communicated 
with many agencies of the Federal Government. We've 
communicated with the CIA. We've communicated with the FBI. 
We've communicated with the Office of Homeland Security.
    We are aware--all this testimony is that we are unaware of 
any concerted, cohesive, professional effort by the Federal 
Government to evaluate solutions that are available in the 
private sector that might be applied to address this 
opportunity.
    I would suggest to you that there is a wealth of such 
solutions available. So I basically have two recommendations.
    No. 1, this is not an intra-agency problem. You can't solve 
this within the CIA or within the FBI or within INS. This is an 
interagency problem. As such, we need to really think about an 
office of a CIO. It is inconceivable that we can operate a 
General Motors, an IBM, a Daimler without an office of a CIO 
coordinating this information across organizations, and I would 
suggest to you it is going to be very difficult in this sector 
also.
    And my final recommendation, that I would ask the committee 
to consider, is to formalize a professional and comprehensive 
means of the Federal Government to immediately evaluate the 
technologies that are already available in the marketplace that 
can be applied to solve this homeland security opportunity, 
because I would suggest to you that there is no such activity 
in place at this time.
    Gentlemen, thank you very much.
    Mr. Davis of Virginia. Thank you, Mr. Siebel.
    [The prepared statement of Mr. Siebel follows:]

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    Mr. Davis of Virginia. Mr. Mockett.
    Mr. Mockett. Well, thank you, Mr. Chairman, for the 
opportunity to appear here today. I am British by birth, but 
American by choice, and I have been an American for 20 years. 
The British and the Americans learned the lessons of homeland 
security the hard way some 60 years ago. My parents saw 
firsthand how the public's resolve in the mobilization of the 
private sector could be translated into victory.
    Mr. Chairman, I commend you and your committee with your 
thoughtful approach to this challenging task. On September 10, 
America seemed free, open and secure. Within 24 hours, we felt 
far less secure, and many were questioning whether we were too 
free and too open.
    But to help make the American people more secure without 
damaging the free and open society we love, that's a challenge. 
It demands a delicate balance. Ensuring a free and more secure 
America is our job; the power and the genius of information 
technology may be the only way to get where we need to go.
    We are here today to offer our technology, our solutions, 
our experience to help respond to the threats in an uncertain 
world. And that has been the purpose at AMS for the past 30 
years as we work with Federal, State and local agencies. We 
know this territory.
    Since September 11th, we have learned that, sad to say, 
crucial information about the terrorists was available weeks 
before the attack, perhaps even months had we been prepared to 
extract it. There is encouraging news. There is a lesson we can 
learn quickly: To live and operate in the United States, even 
terrorists have to use credit cards, drivers' licenses, ATMs, 
cell phones. It is virtually impossible today to leave no 
electronic fingerprints on what they do.
    With the technology that exists today, suspicious activity 
could well have been detected. It is a potent weapon that 
exists today and can be swiftly applied.
    The IT industry uses sophisticated technology and 
management know-how to open doors to better efficiency, 
productivity and prosperity. We must. And we'll gladly work 
with government--Federal, State and local--to close doors, too, 
doors that keep those out that would kill or destroy. Homeland 
security will demand creative solutions.
    Now, this is familiar ground to us and let me give you a 
few brief examples of creativity. First, rapid evolution. By 
that I mean adapting and expanding existing technology 
relatively quickly and capitalizing on existing investments and 
existing infrastructure. We don't need to reinvent the wheel 
here.
    For example, recent research conducted by the Yankee Group 
argues that identity theft and fraud is a major problem that 
should be prioritized relative to homeland security. In fact, 6 
of the 19 hijackers on September 11th were using stolen 
identities.
    AMS works extensively with several State departments of 
motor vehicles. For instance, we are working with the 
Pennsylvania Department of Transportation to fight identity 
crime by very refined personal identification, making sure that 
every person receiving a driver's license is precisely who they 
say they are. Our work could be enhanced by creating new 
national standards for document verification by the States and 
by linking the data bases for specific limited authentication 
purposes.
    Second, we are constantly looking for new relationships in 
our government customers to help make them more flexible and 
better able to use and share information.
    We found that both risks and rewards can be shared in these 
public-private partnerships in a way that leads to creative 
solutions and better services. In several States, including the 
Commonwealth of Virginia, we have pioneered ways to improve tax 
collection and enhance compliance. Our compensation comes from 
and is tied directly to the increased collection of revenue. 
Homeland security likewise calls for new thinking about how 
government helps us to help it.
    My third example also involves existing technology that can 
be adapted to the war on terrorism. There is tremendous power 
and sophistication in software already in use that allows a 
rigorous approach to risk management and decisionmaking. This 
technology underlies millions of everyday transactions in the 
marketplace. It is how a car dealership determines within 
minutes whether you are a good bet to make your car payments on 
time, or how credit card companies know to a remarkable degree 
of accuracy whether you are going to pay your monthly bill in a 
timely fashion.
    The same variety of software can be used as a sentinel to 
guide this country. It can help identify targets most likely to 
cause trouble by screening cargo or passengers at borders ports 
and airports. For example, the U.S. Customs Service processes 
more than 58,000 shipments daily, yet they can only inspect 1 
or 2 percent. Imagine the power of inspecting the right 2 
percent. We have the technology to do that.
    Mr. Chairman, we at AMS believe the subcommittee is on 
exactly the right track by holding this hearing today. We 
believe that technology can advance security while preserving 
commerce and personal freedoms. The events of September 11th 
are made all the more tragic by the knowledge they could 
perhaps have been prevented. As President Bush has said, we 
have a solemn duty not to let that lesson go unlearned.
    We at AMS will be honored to serve the course. Thank you, 
and I look forward to your questions.
    Mr. Davis of Virginia. Thank you very much.
    [The prepared statement of Mr. Mockett follows:]

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    Mr. Davis of Virginia. Mr. Rohleder, thanks for being here.
    Mr. Rohleder. Chairman Davis and members of the 
subcommittee, I am Steve Rohleder, Managing Partner of the U.S. 
Government Market Unit of Accenture. I appreciate the 
opportunity to testify today on how commercial technologies and 
business practices can be applied to help fortify the Nation's 
homeland security.
    Accenture is the world's leading management and technology 
consulting organization. We employ more than 75,000 people in 
46 countries with reported revenues of $11.4 billion for the 
fiscal year ended August 31, 2001. Since September 11th we have 
been working with a number of State and Federal homeland 
security initiatives. For example, following the tragic events 
of September 11th, Accenture was able within 3 days to launch 
and bring to full operation the New York City Family Assistance 
Center to provide support and services to families and victims 
of workers at the World Trade Centers.
    We applaud the subcommittee for evaluating how commercial 
technologies and business practices can be applied to homeland 
security. Today I would like to highlight the following themes 
regarding the cross-agency collaboration challenges.
    First, connecting government is more difficult yet more 
powerful than creating government; second, government needs to 
develop a virtual agency policy to coordinate information 
across disparate government entities; third, new technologies 
exist that can enable and enhance knowledge management 
capabilities; fourth, many of the toughest challenges to 
achieving a cohesive homeland defense will require us to tackle 
bureaucratic institutional barriers such as turf wars, 
infrastructure inadequacies, communication protocol, cultural 
differences and budget silos; finally, Congress will need to 
address privacy issues and legal impediments to cross agency 
information sharing.
    First, let me discuss the challenges in connecting 
government. Post September 11th provided a snapshot of what is 
wrong with scores of systems working in isolation. Agencies 
were not able to communicate with one another interagency much 
less were not able to communicate with one another and 
certainly between governments and citizens. We saw that while 
dozens of Federal, State and local law enforcement agencies 
gathered information, little was shared or aggregated into a 
coherent picture about terrorist activity within the United 
States despite the knowledge that integrating these fragmented 
systems can provide dramatic political, historical and 
bureaucratic forces which have made physical integration almost 
impossible.
    To be successful in the war against terrorism, government, 
industry and nonprofits will all need to work together. This 
will be challenging, but there is an approach that we believe 
can work--virtual agency integration. Clearly government needs 
to establish a virtual agency policy to coordinate information 
across disparate government agencies.
    Toward this end, we recommend that the Office of Homeland 
Security establish a program management office responsible for 
overseeing the development and implementation of the necessary 
organizational components. The PMO would be responsible for six 
major activities, strategy formulation, orchestrating policy 
development and coordinating disparate agencies into a cohesive 
body, developing and implementing the key business process and 
technology architecture to support the office's mission and 
objectives, defining the communications infrastructure to link 
all of the primary constituents, defining the organizational 
design and human performance metrics and assessing whether 
there are legal and regulatory barriers to accomplishing the 
mission.
    While summary organization of government may be called for, 
we believe the goal of homeland security must be to connect 
government and not create it. This mission might have seemed 
impossible even a decade ago. Technologies exist that can 
enable and enhance knowledge management and collaboration 
capabilities.
    Coordination between State, Federal and local law 
enforcement agencies--Coast Guard, Border Patrol and INS--will 
neither be easy to initiate nor to sustain. Many agencies have 
different computing platforms, operating systems, data bases 
and software tools. However, there are commercial technologies 
that can facilitate better collaboration. Let me highlight four 
of these solutions.
    Customer relationship management software: As you just 
heard Tom Siebel testify, CRM can be implemented in 
organizations to create a unified system for capturing, 
managing and coordinating information across divisions, 
geography and communication channels.
    No. 2, Web-based collaboration tools: The State 
Department's Overseas Presence Interagency Collaboration 
System, now in the prototype stage, is designed to provide 
leading-edge knowledge management and collaboration tools over 
an intranet to 40 Federal agencies with overseas operations. 
The system will provide both classified and nonclassified 
levels of communication. This system should be an important 
model for other agency uses.
    Interactive messaging service: One of the major challenges 
of Office of Homeland Security is to alert multiple agencies 
and entities and governments about immediate threats. One 
solution we are currently using for emergency notification is 
the interactive messaging service which is based on a 
hierarchical multichannel alerting architecture. INS would 
allow government to alert key people via phone, PDAs, 
interactive pagers and instant messages across other services.
    Supercomputing technology, like so many technologies, has 
advanced dramatically over the past decade. Many of the 
challenges government faces will require institutional, not 
just technological changes. According to the preliminary 
findings from a worldwide report we have commissioned, politics 
and turf battles are a major impediment to information sharing 
among law enforcement agencies and emergency preparedness 
teams. This finding should come as no surprise.
    Other major challenges to cross-agency, cross-governmental 
collaboration include infrastructure, communications, culture 
and budget. We believe Congress will need to address privacy 
and legal barriers to cross-agency collaboration.
    In conclusion, the U.S. information technology industry can 
be a valuable and important ally to the Federal Government in 
the war against terrorism. The business practices and 
technologies that helped revolutionize our commercial sector's 
productivity over the past decade can be applied to this 
pressing national challenge.
    I look forward to responding to your questions.
    Mr. Davis of Virginia. Thank you very much.
    [The prepared statement of Mr. Rohleder follows:]

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    Mr. Davis of Virginia. Ms. Altman, thank you for being 
here.
    Ms. Altman. Good morning, Chairman Davis, Congressman 
Turner. My name is Anne Altman, and I am the executive 
responsible for IBM's relationship with the U.S. Federal 
Government. I appreciate the opportunity to participate in this 
forum.
    I would like to base my statement on two principal points. 
First, agencies today can integrate their processes around 
information. They can improve their efficiency and 
effectiveness. They can have greater flexibility. They can 
change rapidly through collaboration and knowledge sharing, 
rather than through reorganization.
    And, second, the IT industry has solutions. We have 
solutions in abundance to help government today.
    We all know that the security of our homeland depends on 
our ability to move information across and among government 
agencies, whether that is Federal, State or local agencies. And 
we need connected, extended enterprises, not stand-alones, 
whether that is an e-business or an e-government.
    But there are very big issues here--leadership, culture 
change, cooperation--and post-September 11th, agencies see 
this, and I think they have a new sense of urgency. My role 
here is not to minimize the scope of work required, but I am 
here to say that there's no reason for lack of data 
interchange.
    Technology solutions exist today, and they can be 
implemented quickly. New technologies like middleware 
solutions, advanced query systems and open communication 
protocols can overcome the toughest challenges of intra- and 
interagency sharing, even across all of government's disparate 
computer systems.
    At IBM we have been transforming our company for a number 
of years. We've consolidated 150 data centers into 28. We've 
replaced 31 separate networks with a single integrated global 
network. We've reduced our IT costs by 25 percent. We've 
improved our security of our systems and we've saved billions 
of dollars.
    The point is that IBM's transformation required us to 
develop a framework and infrastructure for the future, and 
likewise, government needs to look and consider the big picture 
and define its framework with the focus on connectivity and 
integration.
    The foundation for e-government, open standards and 
interoperable architecture is no less the foundation for 
homeland security. So I would like to turn your attention now 
to three questions that I have been asked since September 11th 
that I think are of particular relevance to this hearing.
    First, how can I access and share information located in 
agencies, but which is in different forms, different places and 
on different systems? Our answer lies in the middleware 
technology which we developed called DiscoveryLink. 
DiscoveryLink is a highly sophisticated search software. It 
provides a capability which can be used to create a single 
searchable ``virtual'' data base. It provides for the linking 
and search of data from disparate sources on various hardware 
and software platforms owned by different agencies without 
actually having to combine that data into one big data 
warehouse.
    What does that mean? It means that data can be integrated 
or shared without having to change the structure of the data or 
having to change the government agencies themselves.
    The second question is, how do I find information which may 
exist somewhere, but I haven't collected it and I don't know 
how to find it. Information may be out there, but nobody knows 
it exists or where it is; today's traditional structured 
searches and search engines can't find it.
    IBM has been developing an innovative information discovery 
system which can integrate structured and unstructured data. 
This information can be analyzed using new indexing and data 
mining algorithms. The blending of known information with the 
Internet would allow protection of subtle trends of patterns 
and relationships and could be used to discover potential 
threats.
    The new technology is truly significant because today there 
is 100 times more unstructured data in the world than 
structured data.
    The third question that often comes up is, how can agencies 
shield the raw data or the source of the information while 
enabling the data to be queried or mined for patterns or 
trends. Again, we have developed a technology that enables 
learners of separate data bases to cross-check or data mine 
information securely and without directly disclosing their own 
information to others. This allows agencies to collaborate, but 
also addresses the needs for secrecy and privacy.
    Let me give you a practical example, and that would be 
airlines. Airlines could cross-check passenger and employee 
data against data had by government agencies like the FBI. 
Neither the FBI nor the airlines would have to fully open their 
data bases, only enough to accomplish the task essentially 
giving a ``go'' or ``no-go'' response or a referral for further 
action before boarding a flight.
    If I take that example a step further and integrate the 
three technologies I just spoke about, this could allow for a 
dramatically improved air security system. We could link the 
existing interagency border identification system, IBIS, which 
is run by Customs and linked with INS and the Department of 
State with airline and FAA data bases. Each travel service 
provider, law enforcement agency or other participant would 
retain ownership and control of their data base. There would be 
no need to consolidate data bases or transfer ownership.
    An air traveler's reservation information could be pushed 
into a check across these data bases, and the agency's raw data 
would not be disclosed to the airlines. Appropriate agencies 
could be proactive with the information all along the way and 
Internet mining could find other patterns, leaving the airport 
security gate as the last of many steps to create a safety net 
for air travelers.
    And I would like to talk 1 minute about bioterrorism and 
give you an example of the large-scale integration project we 
are doing to strengthen our national public health 
infrastructure. IBM is leading a nonprofit consortium of more 
than 60 organizations to improve health care through 
information technology. Specifically, we are collaborating with 
the CDC and State and local public health departments to update 
their current information systems. The idea here is to collect 
and use this information and use it to monitor potential 
bioterrorist threats.
    Now, this dovetails well with large Federal efforts to 
speed up first-responder alerts and coordination. Projects like 
this can be established in just a few months once data 
specifications are agreed upon.
    Finally, I would like to add a few comments about 
leadership and cultural change. I believe that senior 
government officials are more focused than ever on driving 
cultural change, on building contemporary enterprises and 
supporting secure collaboration. They recognize that e-
government is no longer a question of if and why, but how and 
when.
    I applaud OMB's approach to e-government and homeland 
security. It's comprehensive and focused on communication and 
collaboration. The 24 initiatives being proposed by the e-
government task force are a good beginning and they demonstrate 
great leadership.
    The Federal Government is making progress on e-government 
and information sharing, but it needs to do more. September 
11th exposed very significant gaps in how our government uses 
information. Technology solutions are available today. They can 
be implemented quickly. Longer term, the government must focus 
on enterprise transformation, on business process changes and 
integration based on open standards and strong security.
    Chairman Davis, Congressman Turner, I thank you for the 
opportunity to present our views.
    Mr. Davis of Virginia. Thank you very much.
    [The prepared statement of Ms. Altman follows:]

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    Mr. Davis of Virginia. Mr. Edmonds thank you for being 
here.
    Mr. Edmonds. It is a pleasure to be with you and members of 
the committee today to discuss how Federal agencies can meet 
their homeland security missions.
    I am Al Edmonds, President of EDS U.S. Government Solutions 
organization. In that position, I am responsible for all EDS 
business relationships with the U.S. Federal, State and local 
governments. Prior to joining EDS, I was Director of the 
Defense Information Systems Agency and also directed the 
President's National Security Telecommunications Advisory 
Committee responsible for communications around the world for 
the Department of Defense.
    EDS strongly believes that private sector involvement in 
the homeland security initiative is essential for success. We 
are committed to doing our part in partnership with the 
government to preserve our economy and way of life. We need to 
work alongside our military, who has historically had the role 
of defending our Nation, as well as our courageous new 
warfighters--our local police, fire fighters and paramedical 
personnel.
    Commercial and government data bases must be harnessed in 
new ways so that data can be aggregated to create not just 
disjointed information, but real-time knowledge about potential 
security threats. When I say ``knowledge,'' I mean the ability 
to discover something new, something useful from various 
sources and then to be able to communicate that knowledge to 
those who need to make the decision, when it is to be made and 
in a form that it can be useful. Being able to harness this 
power of data sources to create real-time knowledge is an 
essential weapon in our war against terrorism.
    I would like to offer a few specific suggestions on issues 
that need to be resolved to speed information sharing between 
Federal, State and local agencies and commercial data sources 
to meet today's challenges.
    First, the Federal Government needs to define a Federal 
homeland security enterprise in order to develop a coordinated 
interagency plans with clear mission statements. In the current 
climate, there is a risk that agencies will jump to technical 
solutions before mission objectives are known. With clear 
enterprise objectives, we in industry can offer technology 
products, services and solutions to solve the highest priority 
homeland security challenges.
    Second, establish a managing partner of the Federal 
enterprise with adequate authority to manage the enterprise. 
This could be the role of the Homeland Security Office. At a 
minimum, the Federal enterprise manager must be able to 
influence the budgets of those departments and agencies 
involved in the struggle. The enterprise effort should be 
centrally managed at the top, but executed in a decentralized 
fashion among the Federal Government and with our State and 
local partners. If the current agency stovepipe approach 
continues, information sharing will be the Nation's Achilles 
heel in our growing war against terrorism.
    Third, the homeland security enterprise model must include 
collaboration with State and local governments. States maintain 
valuable data bases such as drivers' licenses, criminal records 
and other public records of high value, and they, as the most 
likely points of contact of suspected terrorists, must be privy 
to intelligence gathering at the Federal level.
    Fourth, we believe the integrity and autonomy of agency 
data must be and can be maintained. Trusted individuals and 
companies need to be involved in such work. Data mining must 
and can be done while still preserving our cherished individual 
liberties.
    The next suggestion is one of the most important steps to 
be taken. The critical information requirements must be 
defined. In other words, tell us what decisionmakers want to 
know and need to know, and we can deliver the solutions that 
increase the quality of decisionmaking.
    Next, the government needs consistent information 
technology architecture, along with industry best practices, 
technical standards and standard operating procedures for all 
IT systems and equipment deployed in this war against 
terrorism.
    Another area that is essential is homeland security 
information in the international arena. Refinement of 
intergovernment alliances is necessary, especially to improve 
intelligence, ensure interoperability and harmonize laws 
associated with international terrorism, particularly cyber 
crime.
    Governmental needs and individual freedoms must be met and 
balanced. We are sensitive to these issues and will apply our 
integrity and ingenuity to create better information sharing 
while protecting individual freedoms and privacy expectations 
of citizens according to law.
    Finally, EDS stands ready to help. I believe we can move 
quickly and effectively on many of these suggestions. The key 
to success is a strong public-private partnership that solves 
the government's business case of homeland security. This 
morning we released, along with the Council on Excellent 
Government, a recent poll on what Americans think about 
homeland security and e-government; and we were not surprised 
to find after September 11th that homeland security, as well as 
accountability, is at the top of the list of what Americans 
think is most important in this day and time; and we stand 
ready to help.
    Mr. Chairman, thank you for the opportunity.
    Mr. Davis of Virginia. When you say ``poll,'' my ears 
perked up. I just want to make sure we get a copy of that so we 
can then share it with our colleagues.
    Mr. Edmonds. Absolutely. All Members will receive copies, 
as well as governments around the world.
    [The prepared statement of Mr. Edmonds follows:]

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    Mr. Ferm. Good morning, I am Dave Ferm, President and CEO 
of Primedia's Business to Business Group of targeted media and 
information based companies. I want to thank you, Chairman 
Davis and Ranking Member Turner, and the Subcommittee on 
Technology and Procurement Policy for the opportunity to speak 
today.
    Mr. Chairman, today's hearing demonstrates this 
subcommittee's understanding that the private sector has a 
major role to play in protecting the security of our homeland. 
We are grateful for this opportunity to share with you some of 
the actions we have taken since September 11th, and also to 
share a proposal for greater cooperation with and within the 
government that will enable us to improve upon these efforts.
    The events of September 11th were a clear reminder to all 
Americans that our first-responder community--local police, 
fire and emergency professionals and emergency room personnel--
are and will continue to be America's front line in dealing 
with threats to our homeland.
    We at Primedia know that very well. For over 15 years we 
have served this front line of national defense by delivering 
the training, information and education needed to protect our 
communities.
    Our Primedia workplace learning headquartered in Dallas is 
an innovative distance-learning provider that reaches more than 
2 million professionals in the fire, law enforcement and health 
care areas. We take pride in the things you don't hear about in 
the news: accidents prevented, communities protected, lives 
saved because of the training we provide and because of the 
courage of those we serve.
    Having served the first-responder community for many years, 
we moved quickly following September 11th to create new 
emergency response and preparedness training for these 
professionals and Federal Government agencies. The new material 
developed with subject matter experts augments the company's 
existing core training networks--the fire and emergency 
television network, the law enforcement television network and 
health and sciences television network. Through our real-time 
satellite networks we are able to deliver breaking news and 
situational assessments in a manner that is usable by those on 
the front lines.
    Just minutes after the first World Trade Center attack we 
were on live with our satellite networks, we were live at the 
Pentagon and we were allowed behind FBI lines to videotape 
rescue and emergency response. This footage was turned very 
quickly into training content for emergency professionals.
    Our training content can be delivered via the Web, CD-ROM, 
print, and can be customized to meet partnered needs. Since 
September 11th we have created 65 new courses and have been 
delivering content related to bioterrorism, emergency 
preparedness, chemical weapons and critical infrastructure just 
to name a few.
    While we have been busy with these initiatives, we have 
been approached by a number of Federal agencies interested to 
begin to expand partnerships to address training and 
communication needs. Three current valued partner--U.S. Customs 
Service, FBI and INS--are in discussions with us to train 
thousands more of their agents and to allow for immediate 
emergency communications.
    We are proud of all of our existing partnerships. However, 
we are working toward a much larger goal. Our goal is to create 
a public safety communications network that reaches every one 
of America's 13 million first responders at all levels by 
connecting all of our first responders to a single training 
network. Federal, State and local officials will have a secure 
system for information sharing in order to respond to any 
domestic emergency.
    So exactly what does that mean? It means the government 
will be able to communicate directly to first responders 
providing briefings and investigation updates, emergency 
deployment plans, personnel and equipment mobilization and 
evacuation notices and other timely information. Moreover, this 
information is disseminated behind the security of an encrypted 
satellite network.
    In order to create the public safety communications 
network, Primedia and Primedia Workplace Learning are offering 
the use of the existing satellite broadcast and production 
infrastructure as well as those downlinked sites already in 
place through a law enforcement television network, fire and 
emergency television network and health and sciences television 
network. We seek the government's investment to connect the 
Nation's first responders to this vital training and 
communications network.
    Thank you for the opportunity to present, and I'd be happy 
to answer any questions that the chairman or committee may 
have.
    [The prepared statement of Mr. Ferm follows:]

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    Mr. Davis of Virginia. I want to thank all the panel. We 
got some great information. And as I said before, your total 
testimony is included in the public record for this hearing.
    And I'm going to start the questioning with Mr. Turner.
    Mr. Turner. Thank you, Mr. Chairman. I want to thank all of 
our witnesses for sharing your thoughts and your testimony with 
us today.
    Mr. Siebel, your remarks were in many ways very sobering, 
because I think those of us in government have always been very 
sensitive to the fact that had we had better intelligence and 
that intelligence been shared, it is very likely that September 
11th could have been prevented. And I know when I visited 
Ground Zero about 12 days after September 11th, the first 
thought that came to my mind was that we can never, never, 
never let this happen again. And I know you and other panelists 
have shared that same conviction, and you're dedicated to 
trying to apply technology to make sure that it never does 
happen again.
    You know, in many ways, perhaps the American people have 
been more understanding than we should expect them to be, 
because if government had been more aggressive with regard to 
information technology, perhaps September 11th could have been 
prevented.
    But it does seem that in fighting the war on terrorism, we 
definitely need to have a firm commitment to the aggressive 
application of information technology. And I was very pleased 
in your testimony, Mr. Siebel, that you stated your support for 
the creation of a Federal chief information officer. Mr. Davis 
and I both have legislation calling for that position to be 
created, and it would seem to me that when we closely analyze 
September 11th, we should be even more aggressive in our 
efforts to call for the creation of such a position; and you 
have certainly done that in your testimony.
    I also feel very strongly that it is important to follow 
the suggestions that many of you made, and that is to use the 
private sector more aggressively to try to find these 
solutions.
    You know, when America was faced with the challenges--has 
faced challenges in the past, we have always leaned upon 
private industry and the private sector. World War II, we 
mobilized this country by calling upon the private sector to 
move very aggressively, and it resulted in our victory in that 
war.
    I have no doubt that we can be victorious over terrorism if 
we make a similar commitment and we call upon the private 
sector to move aggressively. I do--and I would, Mr. Siebel, 
appreciate any further comments or suggestions that you might 
have to help us along the road of pushing the idea of a Federal 
chief information officer. Even though we obviously have chief 
information officers in each of our agencies, there's no 
oversight; and the point you made in the testimony regarding 
budgetary authority is so essential for that position to be 
really effective.
    Have you seen any evidence in the Office of Homeland 
Security of an effort to create and to put an individual in 
place--at least there, that might have some information 
technology background--that could at least move us down the 
road toward the goal that we share?
    Mr. Siebel. If we look at best practices in the private 
sector--Congressman, if we look at our best practices in the 
private sector over the last, say, decade, 2 decades, the way 
that we used to run private companies where we had departmental 
information officers and this resulted in largely 
discoordinated information across these organizations. Had we 
not adopted the role of a chief information officer in the 
private sector, we would not have been able to realize the 
productivity increases and economic benefits of information 
technology over the last decade, which I think has been one of 
the primary engines fueling this economy and one of the primary 
engines fueling this Nation.
    I believe, in my opinion, that unless the Federal 
Government adopts a similar philosophy of a centralized office 
of information with budgetary and operational authority for 
these systems, that the Federal Government will also not be 
able to realize the economic benefits and productivity benefits 
of these information technologies that we have developed.
    As it relates to homeland security, the coordination of 
information across these organizations is simply essential to 
address the opportunity. It is not a question of whether we 
will coordinate; the only question is how many more disasters 
will occur before we coordinate these forms of information. And 
I believe, absent the presence of a central authority--and we 
can see no evidence of an inkling of such authority--that we 
will not be able to address the opportunity that's before us.
    Mr. Turner. Thank you. I think your admonition to us should 
certainly be heeded.
    As I said a moment ago, perhaps the American people were 
somewhat forgiving with regard to our lack of coordination and 
our lack of sharing of information among agencies that could 
perhaps have resulted in the avoiding of September 11th. But I 
don't know that the American people will feel that way if it 
happens again. And I feel they are going to hold us accountable 
and they are going to expect us to move forward very 
aggressively. If we have an incident in the future that can be 
traced to the absence of information sharing, as you so 
eloquently shared with us today when you recounted the many 
events that were noted by various Federal agencies, if it 
happens again, I have no doubt we will be held accountable by 
the people.
    Mr. Mockett, I had a thought that I wanted you to address 
with us a little bit when you shared with us the efforts that 
AMS has made in the area of risk assessment. I believe it is 
your AMS Strata initiative. Mr. Schambach, who heads the new 
Transportation Security Agency, when I asked him whether or not 
we could maybe move forward and at least have some system in 
place--whether it's the use of a card or the use of some other 
optical technology, whatever--to at least allow the rapid 
movement of some passengers through airports who may be lower-
risk passengers, he said that he wasn't convinced that you 
could be sure that somebody who is a good risk, safe risk, 
today would necessarily be a safe risk tomorrow.
    But I kind of thought, when you apply risk assessment 
technology that you sort of assume that you kind of keep up 
with that, because that is really what risk assessment is all 
about. And I wish you would explain a little bit of what AMS 
has done and how it might apply to Customs, checking of cargo, 
passengers or airports.
    Mr. Mockett. Certainly. If we look at Customs, INS, Coast 
Guard, they are all in the same business with the same sort of 
problem, risk assessment. Today there are commercially 
available decision engines that help you with that process, but 
help turn a process that is perhaps random or subjective into a 
much more objective view of the situation. These risk engines 
have been used for many, many years in the financial services 
industry.
    Risk engines that AMS has installed take maybe as many as 
2,000 different variables and input those to come up with a 
scoring and an algorithm to give you an assessment of the risk 
and a predicted outcome--14 million of those transactions 
yesterday and another 14 million today. Imagine the power of 
giving everyone concerned at the port of entry, at the airport 
or at the border on-line access to a decision engine that 
allows them to stop the right person or inspect the right 
cargo. Just getting the hit rate up with a fair degree of 
accuracy and turning it into a much more objective process 
would reap untold dividends.
    Mr. Turner. The concern that Mr. Schambach shared about 
someone being a good risk today, but maybe they wouldn't be 
tomorrow, I mean, isn't it the collection of the data that is 
key to that so that if you're continuing to collect data, then 
you begin to identify that individual and may make the 
transition from being a safe risk, a good risk, to one who is a 
poor one?
    Mr. Mockett. In response to his concern, these decision 
engines are not static. They have dynamic; they have learning 
capability. So we constantly take the output, and then re-input 
it, of additional learning, of another variable that goes into 
the mix. To that extent, you can actually track variable 
parameters over time and help flex the decisionmaking 
algorithm.
    So the technology is there to do it.
    Mr. Turner. Ms. Altman, you mentioned IBM's initiative; you 
called it DiscoveryLink. Is that capability to link together 
different networks, different software, is that unique to IBM; 
or is this an initiative that we can find available from other 
sources?
    Ms. Altman. I am not aware of another commercially 
available technology. That doesn't mean it doesn't exist. This 
was developed by IBM research, and it really has been applied 
more on the pharmaceutical and health care side, to date.
    We have brought it into the Federal Government since 
September 11th because it is so aptly applied to the challenge 
of our Federal customers who are looking to connect disparate 
data bases on different hardware systems and software systems 
that today aren't all based on open standards. And so in order 
to make a shift, they would either have to migrate all of this 
into some new form of data base or find something that allows 
you to link them together to create this virtual data base that 
could be searched and shared amongst a number of entities. And 
this technology is relatively new.
    So, again, I am not sure if there are others. But it is 
certainly available today.
    Mr. Turner. What kind of interaction have you had with the 
Office of Homeland Security?
    Ms. Altman. We have had a number of interactions working 
with Governor Ridge and his office. In addition, we've worked 
directly with the Department of Transportation, the CIA, FBI, 
with FEMA. So we are working across the board, because we are 
aligned in order to support each one of those customers with 
the expertise in their business, and certainly with the U.S. 
Customs and other law enforcement organizations.
    Mr. Turner. What kind of response have you gotten from 
these agencies? Are they interested? Are they pursuing it?
    Ms. Altman. There is a great deal of interest. We made 
recommendations through the response. As you're aware, for 
example, the Department of Transportation requested responses 
from industry, and in that, we detailed DiscoveryLink and the 
other capabilities I described.
    Mr. Turner. How do you assess the capability of the Federal 
Government to analyze and to determine whether or not they 
should choose to go down the path of using DiscoveryLink, or 
whether they should try to adopt systems to be compatible in 
other manners? What is your sense of that issue as you work 
with these agencies?
    Ms. Altman. Well, I'm a proponent of open systems and the 
fact that we need to step back and look at the direction that 
the Federal Government is going to--Mr. Siebel's point, having 
someone who over--looks across the government to define a 
framework for which agencies will interoperate is very 
important. With that said, you won't move there overnight, and 
so there are technologies that are necessary today to connect 
these disparate systems, and the agencies, I think, are looking 
at how do we do that, No. 1; and two, the cultural issue, which 
is very important, do we really want to share this? And I think 
that's the bigger issue here. If they recognize that there's 
technology to connect themselves, but at the same time, they 
feel vulnerable because they're sharing information that they 
never before have shared.
    Mr. Turner. Thank you. Thank you, Mr. Chairman.
    Mr. Davis. Mr. Turner, thank you very much. Let me pick up 
and ask all the panel members how is the homeland security 
office reaching out to the private sector? Do you feel that 
they're having ample opportunity to find out the different 
solutions that are out there? And the other question that goes 
with that is something I'll never forget, one time taking my 
car into a dealership and just saying well, fix whatever--
whatever you find wrong, fix it. That was a huge mistake and I 
came back, I could have bought a new car for what it cost me to 
do that. I mean, one of the problems we have here is that the 
government needs to be specific in telling you what they want 
instead of just saying we've got a problem, how do you fix it, 
and to focus our energy and our resources the right way. But 
let me ask, how is the administration's homeland security 
office reaching out? Do you feel that we are engaging the 
private sector in terms of looking at solutions at this point 
in an adequate way so all of you have a chance to offer your 
solutions? Are there enough vehicles out there?
    Tom? We'll start with Mr. Siebel and move down.
    Mr. Siebel. Well, Congressman, I would--I would comment 
that if the Office of Homeland Security has authority to make 
anything happen, it is--it's not immediately apparent.
    Mr. Davis. They don't have a line item. I think that's the 
problem----
    Mr. Siebel. And if there--and so these are--and we have 
interacted with them and they appear to be incredibly bright 
people with great insight about a lot of issues, but there does 
not appear to be any operational authority, and I think that 
we're dealing with something here on the order of a national 
crisis, and it seems to me, given the importance of what we're 
dealing with here, that there needs to be an organization, the 
office of homeland security or some other that is empowered to 
take action.
    It's all a matter of time whether we put the preventative 
measures in place to prevent the next event, or whether we fail 
to do so. So I think time is of the essence here and somebody 
needs to be empowered to take--make decisions and take action, 
and it does not appear that this organization is so empowered.
    Mr. Davis. And that underscores what you were saying 
earlier about the government not being able to talk to each 
other, not having a Federal CIO and in terms of--who's 
overseeing all of this at this point----
    Mr. Siebel. No one. This has clearly been communicated as a 
national priority. I know that many of the organizations at the 
table and certain Siebel Systems, we've said this is our No. 1 
corporate priority to address this important information 
technology problem, and yet we're unable to find anybody who is 
in charge of a coordinated effort within the Federal Government 
to evaluate set solutions. It's just you're--you're basically--
invited the private sector to ring any arbitrary number of 
hundred thousand doorbells in Washington, DC, and see what they 
can find, and I think we can do--this is an important issue. We 
are smart people. We can do better than this.
    Mr. Mockett. Well, our contact with Governor Ridge and his 
team has been frequent and substantive, and it's encouraging 
that we can help frame the questions before we actually deliver 
the answers, so top marks in that regard. I get the feeling, 
though, that nothing's going to happen until Federal dollars 
prime the pump.
    As I meet with my customers out at the State and local 
level with Governors and heads of State agencies, they're all 
saying the same story. Our revenues are below expectations, 
we're facing a budget deficit, we're facing layoffs for the 
first time in history, we don't know how to bridge the gap. To 
the extent they've been able to spend anything on homeland 
security, it has been earmarked first for physical security and 
then some limited approach to--to the biohazard exposure, but 
not addressed IT security or the opportunities for application 
and information technology at the State and local level.
    It just has not happened so far, and so it certainly does 
take the heavy hand of budgetary authority to make something 
happen. My worry is that we have a shrinking window of 
opportunity here. We have only defeated the terrorists of the 
moment. Others will follow in their footsteps. We have an issue 
with public resolve at the moment being substantive and 
actually providing the heat to make Federal, State, and local 
agencies at least consider collaborative cooperative behavior 
in exchange of information, but heat won't be there for very 
long, and we need that cultural change.
    Mr. Davis. Thank you.
    Mr. Rohleder. Congressman, on your question of how is OHS 
reaching out, you know, my sense frankly is that industry is 
reaching in rather than OHS reaching out, which isn't to be 
interpreted negatively. I think that they're inundated, if you 
will, with technology solutions, with potential fixes to the--
to this problem. In my testimony, I talked about the 
establishment of a program management office. I think that's 
absolutely critical to establish the national strategy that the 
executive order called for. It's also absolutely critical to 
discern what technology is applicable to solve this problem. I 
would suspect that if you polled the staff at OHS, they 
probably meet with no less than 25 vendors a day and that's 
been ongoing for 6, 8, 8 weeks----
    Mr. Davis. But what--to what end; right?
    Mr. Rohleder. Right. I'm sorry?
    Mr. Davis. But to what end? You're meeting with all these 
vendors and----
    Mr. Rohleder. Yeah, to what end? I mean, I think they're in 
information gathering. I do not think that there is a direction 
that's been set, and I think that there needs to be some 
leadership established to drive that strategy and--and 
discriminate between the technology that can be used from an 
overall solution to those point solutions that can contribute 
so----
    Mr. Davis. Well, I'm just--my concern, I mean, you have 
different procurement rules within different agencies, DOD for 
example, some of the civilian agencies and this stuff has to 
all be coordinated back and forth, and I'm not sure--and I 
think several of you have mentioned this in your testimony, how 
it's all being coordinated, how it all flows together. And the 
money will be going out very quickly, and I don't know that 
this stuff gets addressed or if we're addressing older 
problems.
    And so there is a concern, I think, as we go through this 
next budgetary battle in the appropriations process this year. 
We may have to put some kind of straightjackets on how this 
stuff is spent and how it's coordinated and that's the concern. 
It's been our concern, as Representative Turner said from day 1 
in terms of how's all this being coordinated.
    Mr. Rohleder. I think----
    Mr. Davis. There's a lot of ideas out there. We just need 
to--the solutions are there. It's a question of with the money 
we're willing to spend, are we going to get our solutions or 
are we going to get things we don't need sometimes which you're 
happy to sell us as well.
    Ms. Altman. Yeah. But to that point, Mr. Chairman, I think 
there has been an awful lot of focus on point solutions, and so 
the agencies, whether it's the Office of Homeland Defense or 
independent departments, are inundated with point solutions 
that may or may not fix the problem or a problem, and what 
hasn't occurred is stepping back from that, defining a 
framework, connecting communities of interest, for lack of a 
better term, whether that's the law enforcement side or 
intelligence collection and dissemination or disaster response.
    So collecting these communities, mapping out end to end 
processes, and then breaking them into manageable pieces and 
saying how do we address those, how do we solve those, because 
point solutions may not be the answer. In fact, if they're not 
built on open and interoperable standards, they could create a 
longer-term problem, and so I don't see that overall 
coordination that comes back and addresses this in manageable 
pieces and addresses it around the--the processes that our 
government needs to operate in terms--in terms of addressing 
crises and protecting ourselves.
    Mr. Davis. Thank you.
    Mr. Edmonds. Mr. Chairman, back in October/November, the 
ITA hosted a roundtable with the Secret Service, State 
Department, INS, Customs, DOD, several companies, Oracle, SCIC 
and several others, and the whole idea of discussion was about 
how to take the data bases that all this government activity 
had and make the right information available, so to make the 
right decisions at the right time, and we spent about the month 
exchanging notes and comments on that white paper, which we all 
agreed need to be done, and it wasn't a technology problem. It 
was a cultural problem, and a who-was-in-charge problem, and 
someone who said let's make it happen.
    We're about 3 months later, and we still have the draft 
copy of the white paper that ITA gets an e-mail once a week 
from someone, when are we are going to send it someplace, and 
we didn't find anybody to take it.
    We know where we're going to send it but Harris Miller 
can't find someone to take it. The point is----
    Mr. Davis. Let me just add if you'll send it here, at least 
we'll put it in the record.
    Mr. Edmonds. OK. We'll do that.
    Mr. Davis. It will get on the record.
    Mr. Edmonds. That's perfect. But industry--industry knows 
how to solve these problems of sharing information. We did it 
about 12 years ago for the intelligence community and we 
thought people wouldn't do it, but once we put some good 
information on this site called Intelink, all the agencies put 
the information there because they wanted you to have it, and 
so the culture's broken down in the intelligence community, and 
we need to do the same thing in law enforcement/intelligence 
community, but we've--we've all given white papers and 
unsolicited proposals all over town, but as a solution every 
day.
    So in defense of the Office of Homeland Security, they must 
be seen by everybody who ever created anything with a widget on 
it trying to sell them the solution, and they really are having 
a tough time sorting it out.
    Mr. Davis. It's not their problem. I mean, their problem is 
they don't have the operational authority at this point to be 
able to coordinate anything.
    Mr. Edmonds. Exactly.
    Mr. Davis. And maybe over time that evolved, so we also 
have the problem as raised by Mr. Siebel in his opening remarks 
by Federal CIO, we have all these agencies' CIOs. We heard from 
four of them this morning, but who's in charge? At the end of 
the day, who can make the call? Who can put the procurement on 
the street and who can oversee it and make sure it's going? And 
it sounds like we're not there yet.
    Mr. Ferm. Congressman, I'm a little bit different than my 
copanelists in that I'm not a technology person. I'm a content 
person riding on the back of technology. But I could just make 
one comment from the--my last role as president of Business 
Week for 10 years where I was chronicling not many events that 
the productivity games around the world rode on the back of 
information technology for the last decade, and a great 
cultural shift that had to take place over a decade ago was the 
breaking down of silos within organizations, and I think that 
has been echoed very clearly here today.
    So if you're looking for an interdepartmental solution, I 
think it's going to be extraordinarily difficult, unless the 
departments themselves are willing to take on and very 
aggressively address the cultural shift that's going to have to 
take place. So as we try to engage a centralized role, we, in 
terms of our communication networks for emergency responder 
training, are still having to go step by step, door by door, 
doorbell by doorbell to--to individual departments.
    So I would just leave it more with a question than an 
answer and rather than generating instant communication and 
having to look at CNN, who's going to connect our 6,000 
hospitals, our 18,000 Federal, State, and local law enforcement 
facilities and our 22,000 fire departments for instant 
messaging?
    Mr. Davis. OK. I hear you. I mean, our concern is, and I 
think all of you have articulated it very well in different 
ways, that the Federal Government has a history of failed 
development efforts. I mean, failed systems, we can go up and 
down Republican administrations, Democratic administrations, 
it's replete with a lot of money down the drain, and our 
problem isn't just money in this case. It's getting solutions 
quickly because we have 100,000 terrorists that were trained in 
the al Qaeda camps and 2,000 are in captivity.
    Senator Graham said over the weekend, we think 1,000 are 
loose running around the United States somewhere and who knows 
who else. It's almost an invitation. You almost hate to hold a 
hearing on this and air it that we're still as vulnerable as we 
are, but something's got to happen very quickly and my guess is 
it's a lot of things.
    Certainly, you don't have a Federal CIO or anyone with that 
authority--I think Mark Foreman is doing a great job at OMB 
with what he's going to work with, but it's the line of 
authority that you have to be able to make the decision and 
it's not clear yet that he's got what he needs. It's better 
management of procurement officers and the people out there 
buying. It's better for somebody on top to coordinate 
everything between the different agencies, and you know I was 
hoping to hear something different from the first panel, but I 
think they're all doing their jobs but there's somebody who has 
to kind of coordinate everything together, and we're still a 
little ways from doing that.
    We also have a cultural problem of even if the government 
gets its act together, our culture of buying is probably not 
appropriate to the new age and the kind of solutions that can 
be made available today. I asked earlier about the share and 
savings contracts, the kind of thing, Mr. Mockett, you're doing 
in Richmond, I think some of the other companies are doing 
share and savings contracts around the country within the 
private sector, and maybe with State and local governments. A 
tremendous opportunity for us. There is a concern that 
somebody's going to make a big profit and then you have to 
explain it. I mean, what's holding it up is that obviously 
there's a huge upside if you do it right. But the downside for 
government in not doing this kind of thing is tremendous, and 
we can point to billions of dollars that have just been wasted 
through the years because we end up with products we don't 
need. Share and savings guards against that. You set a floor in 
terms of what you're going to lose in a situation like that.
    So GAO's analysis of information security audits at Federal 
agencies just continue to reveal pervasive weaknesses, serious 
risks for fraud, misuse of information, and disruption of 
government functions. All these are very solvable if we can 
just get it out there to you who have the information in a 
package that makes sense and is coordinated, and that's what--I 
mean, I think that's what I'm hearing today, and continue to 
hear. The talent out here in our private sector is tremendous. 
We've got tremendous talent in government, but we need to train 
it and focus it in the right way and working together we can do 
it, but we're still not there. I don't know if I have any 
additional questions on top of that.
    I think your statements have been very, very complete. 
You've come at it from different directions which is good, and 
I think what we wanted. Mr. Turner asked some of the questions 
I wanted to ask. And let's see if I have any additional 
questions before we close. Is there anything anybody wants to 
add at this point that maybe you didn't get in or you want to 
react to something we said?
    This is a great panel. I appreciate it. We've got some--
your companies are leaders in these. We have obviously a number 
of other companies that aren't here that offer the same kind of 
things, but you provide a variety of solutions that we 
desperately need at the governmental level right now that the 
events of September 11th illustrate and continues to 
illustrate.
    So let me just say to all of you thank you very much. I 
want to enter into the record the briefing memo that was 
distributed to the subcommittee members. We'll give you 10 
days.
    If there's a thought or something you'd like to enter in, 
I'd be happy to have that. If you want to enter your poll in 
the record, we'd be happy to have that. The report that you 
can't seem to get anybody to take, we'd be happy to have that 
in the record and then we'll digest it and maybe we'll 
introduce something or maybe it will find its way into one of 
the appropriations down the way in terms of putting appropriate 
safeguards, so that when we're taking money from hard-working 
Americans here, we want that money to
go for its intended use, and procurement can solve--an 
effective procurement system can save us billions and can solve 
some problems. Again, it's an outstanding panel. I appreciate 
everyone's participation. These proceedings are closed.
    [Whereupon, at 12:16 p.m., the subcommittee was adjourned.]