Hearing of the Senate Homeland Security and Governmental Affairs Committee - The Nomination of Steven Murdock to be the Director of the Census

Statement

Hearing of the Senate Homeland Security and Governmental Affairs Committee - The Nomination of Steven Murdock to be the Director of the Census

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SEN. COLLINS: Thank you. When federal marshals rode though northern Maine during the first federal census in 1790, my native county of Aroostook hadn't yet been established, much less my hometown of Caribou, and the few inhabitants of the region had little contact with federal officials, much less federal programs. Today, Aroostook County like every other part of our country is directly affected by the many uses of the data collected by the Census Bureau.

Dr. Steven Murdock, the president's nominee to be the next census director, has wide-ranging and relevant experience. He's been state demographer of Texas, a distinguished professor, as the chairman has mentioned, a data center director, and a consultant. He will need that experience as well as determination and managerial skill to tackle the challenges facing the bureau. Many of these challenges have been detailed in reports by the Government Accountability Office and other experts. In 2004, for example, the National Research Council issued a report from its panel on future census methods. That panel endorsed the bureau's overall plans for 2010 but warned of, quote, "unique risks and challenges," end quote, to be overcome on a tight schedule.

The panel particularly highlighted the use of new technology. The panel recommended among other things that the Census Bureau seek funding well in advance of need, exercise better management of project risks, and promote greater use of the Internet. A 2004 report by the inspector-general of the Department of Commerce raised similar concerns and took note of a late start on setting up an effective project management structure. It is therefore disappointing that the GAO's most recent review of preparations for the 2010 census found that many of these very same problems persist. For example, the hand- held computing devices that are supposed to be used to record and transmit data for the 2010 census are a concern. GAO staff observed field tests this spring and noted a number of performance issues, such as slow and inconsistent data processing. One census employee's hand- held device took two hours to verify 16 addresses at one location in North Carolina.

The Census Bureau must ensure that this technology works properly to avoid a massive and urgent reversion to paper forms. The GAO has also noted that the bureau is making extensive use of contractors. This committee is well-versed in the contracting process, having investigated costly debacles in both domestic and foreign contracts and having approved comprehensive contracting reform legislation.

Added to these issues is an ever-present problem, which the chairman has already mentioned, of inaccurate counting, whether it's over- or undercounting. It is evident that the next Census director will have his hands full.

Finally, consider a matter of unexploited potential, and that is the Internet. Last year Senator Coburn conducted a subcommittee hearing on Census costs and technology use. He noted that while Canada, Australia and other countries collect census data via the Internet, and while Americans can use it to file our taxes, the U.S. Census Bureau decided not to develop an Internet option for 2010. I look forward to hearing the nominee's views on this matter.

The calendar continues its relentless progress toward April 2010, leaving the Census Bureau with limited time and capacity to make any major changes in the current plans. I look forward to exploring the nominee's thoughts on these key challenges and his recommendations.

Thank you, Mr. Chairman.

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SEN. SUSAN COLLINS (R-ME): Dr. Murdock, one of the keys to encouraging compliance with the census is assuring individuals that their personal information that they're providing is going to be safeguarded.

In 2006 the Department of Commerce reported to Congress that some 672 laptop computers were missing from the Census Bureau, and some of these computers contained personally identifiable information. Then, in April of 2007 it was disclosed that the Census Bureau had mistakenly posted personal data online.

What measures will you take to ensure that all census data that contains personal or identifying information is or are protected and to keep laptops, as well as other equipment that is used to collect data -- for example these new hand-held devices that we're talking about -- how will you ensure that they're safe and that there aren't these kinds of security breaches that really undermine public confidence in the census.

MR. MURDOCK: I think there are a number of things that are being done for the public record in terms of changing the events that led to these unfortunate circumstances. They have a fairly advanced property management system in place that provides both a paper and a computerized system for keeping track of laptops -- knowing where they are, who has them and under what conditions. The computers now are increasingly encrypted so that if I did obtain a copy of a computer of some form, I could not discern what the identification -- or the information was without the code, so to speak.

And increasingly, as they look towards the hand-helds, one of the features of that will be that the data will be transmitted to the data collection centers and then will be erased from those hand-helds.

So these are a number of things that are critical in terms of ensuring greater security of people's personal information. I see no higher priority than maintaining that confidential information, because as I said in my opening statement, the reality of it is, is the census is successful if the American people trust us, if they have confidence in us. And each time one of these things occurs, a little bit of that confidence slips away. So I will do my best to ensure that the confidentiality of people's personal information is maintained.

SEN. COLLINS: Senator Carper mentioned the problems with some of the contracts that the Census Bureau is involved with. Let me first ask you a broader philosophical question. According to a GAO report issued last year, as much as 17 percent of the more than $11 billion that the census is projected to cost is going to be spent on seven major contracts. This is the most extensive use of contractors in the Bureau's history.

Do you think that the Bureau relies too heavily on outside contractors to accomplish mission-critical work?

MR. MURDOCK: Well, again, I would suggest I can't know whether it's too much or too little until I've looked at it in greater detail.

I think what you're looking at in several of these areas are in the areas of IT -- that is of technology -- is very difficult for any public entity -- and I've seen this at state levels and others too -- to maintain the kind of up-to-date staff and to be able to support -- frankly, be able to afford salaries for the kind of staff that's necessary to keep at the cutting edge. So I would expect that if the Census Bureau's like other agencies -- particularly in these areas -- that you'll find more contracting.

I think contracting is justified or unjustified depending on whether it is the most efficient and effective way to accomplish the goals of the organization. And this is something we will -- as I've indicated previously -- that I will look into, if and when I am confirmed, immediately in that confirmation.

SEN. COLLINS: Are you familiar with a very new GAO report that was issued just last week on December 11th that took a look at some of these key systems acquisition contracts?

MR. MURDOCK: In general terms, but I haven't had a chance to look at it in detail.

SEN. COLLINS: Let me just point out that the GAO projects that there's going to be an $18 million cost overrun by December of next year in one of the key contracts. And that's obviously of concern to me. Even if it's due to changing requirements that is of a concern, because that means that the requirements for the contract were not sufficiently thought through in the first place.

Are you going to personally review contracts to see if they are being effectively managed? And let me ask you a compound question: How concerned are you about an $18 million cost overrun?

MR. MURDOCK: Well, I'm very concerned about the cost overruns, because we're using the funds of the American people. And I think we need to be very clear and very careful in how we use those funds.

I really can't evaluate at this point whether that -- what the -- all the causes are for that particular sum. I can't even, frankly, know whether that is in fact an accurate estimate or not. But I will certainly look into it if and when I'm confirmed, because cost management is effective. We know that obtaining a complete count is critical. It's required by our Constitution. It's really one of the hallmarks of our democracy -- so very important to get that.

And at the same time, we want to obtain that information being as cost sensitive and efficient as we possibly can. And I think we need to make sure that we're looking at all those contracts. I will -- I'm not an attorney, but will certainly look at those as a director and look at what the products are and what the deliverables are and what the time frames, et cetera, are.

SEN. COLLINS: When we have a census that is projected to cost double what the last census cost, I for one want to see a quantum leap in solving a lot of problems in improving the accuracy, in making sure that the problems with undercounting and over counting are being resolved. Otherwise, I'm going to wonder how the cost escalated by that amount. I realize a decade's quite a long time, but a doubling of the cost ought to produce some quantifiable benefits to the American people and be translated into better accuracy.

I know my time has expired and I do have to go onto another event.

SEN. CARPER: You're welcome to ask another question.

SEN. COLLINS: Thank you.

Mr. Chairman, I'm just going to ask if I could submit for the record a question on undercounting, a question on human resources, and also a question on an issue that I know is of concern to you and Senator Coburn on the use of the Internet and the fact that other countries have done that.

So thank you very much.

SEN. CARPER: You bet. All those questions are in order.

SEN. COLLINS: Thank you.

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