<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 ____________________________________________________________________________ For Sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpr.gov Phone: toll free (866) 512-1800; (202) 512ÿ091800 Fax: (202) 512ÿ092250 Mail: Stop SSOP, Washington, DC 20402ÿ090001 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:] [GRAPHIC] [TIFF OMITTED] T4322.001 [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:] [GRAPHIC] [TIFF OMITTED] T4322.003 [GRAPHIC] [TIFF OMITTED] T4322.004 [GRAPHIC] [TIFF OMITTED] T4322.005 [GRAPHIC] [TIFF OMITTED] T4322.006 [GRAPHIC] [TIFF OMITTED] T4322.007 [GRAPHIC] [TIFF OMITTED] T4322.008 [GRAPHIC] [TIFF OMITTED] T4322.009 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:] [GRAPHIC] [TIFF OMITTED] T4322.010 [GRAPHIC] [TIFF OMITTED] T4322.011 [GRAPHIC] [TIFF OMITTED] T4322.012 [GRAPHIC] [TIFF OMITTED] T4322.013 [GRAPHIC] [TIFF OMITTED] T4322.014 [GRAPHIC] [TIFF OMITTED] T4322.015 [GRAPHIC] [TIFF OMITTED] T4322.016 [GRAPHIC] [TIFF OMITTED] T4322.017 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:] [GRAPHIC] [TIFF OMITTED] T4322.018 [GRAPHIC] [TIFF OMITTED] T4322.019 [GRAPHIC] [TIFF OMITTED] T4322.020 [GRAPHIC] [TIFF OMITTED] T4322.021 [GRAPHIC] [TIFF OMITTED] T4322.022 [GRAPHIC] [TIFF OMITTED] T4322.023 [GRAPHIC] [TIFF OMITTED] T4322.024 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:] [GRAPHIC] [TIFF OMITTED] T4322.025 [GRAPHIC] [TIFF OMITTED] T4322.026 [GRAPHIC] [TIFF OMITTED] T4322.027 [GRAPHIC] [TIFF OMITTED] T4322.028 [GRAPHIC] [TIFF OMITTED] T4322.029 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:] [GRAPHIC] [TIFF OMITTED] T4322.030 [GRAPHIC] [TIFF OMITTED] T4322.031 [GRAPHIC] [TIFF OMITTED] T4322.032 [GRAPHIC] [TIFF OMITTED] T4322.033 [GRAPHIC] [TIFF OMITTED] T4322.034 [GRAPHIC] [TIFF OMITTED] T4322.035 [GRAPHIC] [TIFF OMITTED] T4322.036 [GRAPHIC] [TIFF OMITTED] T4322.037 [GRAPHIC] [TIFF OMITTED] T4322.038 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:] [GRAPHIC] [TIFF OMITTED] T4322.039 [GRAPHIC] [TIFF OMITTED] T4322.040 [GRAPHIC] [TIFF OMITTED] T4322.041 [GRAPHIC] [TIFF OMITTED] T4322.042 [GRAPHIC] [TIFF OMITTED] T4322.043 [GRAPHIC] [TIFF OMITTED] T4322.044 [GRAPHIC] [TIFF OMITTED] T4322.045 [GRAPHIC] [TIFF OMITTED] T4322.046 [GRAPHIC] [TIFF OMITTED] T4322.047 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:] [GRAPHIC] [TIFF OMITTED] T4322.048 [GRAPHIC] [TIFF OMITTED] T4322.049 [GRAPHIC] [TIFF OMITTED] T4322.050 [GRAPHIC] [TIFF OMITTED] T4322.051 [GRAPHIC] [TIFF OMITTED] T4322.052 [GRAPHIC] [TIFF OMITTED] T4322.053 [GRAPHIC] [TIFF OMITTED] T4322.054 [GRAPHIC] [TIFF OMITTED] T4322.055 [GRAPHIC] [TIFF OMITTED] T4322.056 [GRAPHIC] [TIFF OMITTED] T4322.057 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:] [GRAPHIC] [TIFF OMITTED] T4322.058 [GRAPHIC] [TIFF OMITTED] T4322.059 [GRAPHIC] [TIFF OMITTED] T4322.060 [GRAPHIC] [TIFF OMITTED] T4322.061 [GRAPHIC] [TIFF OMITTED] T4322.062 [GRAPHIC] [TIFF OMITTED] T4322.063 [GRAPHIC] [TIFF OMITTED] T4322.064 [GRAPHIC] [TIFF OMITTED] T4322.065 [GRAPHIC] [TIFF OMITTED] T4322.066 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:] [GRAPHIC] [TIFF OMITTED] T4322.067 [GRAPHIC] [TIFF OMITTED] T4322.068 [GRAPHIC] [TIFF OMITTED] T4322.069 [GRAPHIC] [TIFF OMITTED] T4322.070 [GRAPHIC] [TIFF OMITTED] T4322.071 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:] [GRAPHIC] [TIFF OMITTED] T4322.072 [GRAPHIC] [TIFF OMITTED] T4322.073 [GRAPHIC] [TIFF OMITTED] T4322.074 [GRAPHIC] [TIFF OMITTED] T4322.075 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.]