Congressional Quarterly - Appropriators Question Priorities, Management Of Homeland Spending

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Leaders of the House Homeland Security Appropriations panel expressed consternation Tuesday over the past mismanagement of major acquisitions programs at the Department of Homeland Security. But they also agreed that such efforts are, to paraphrase from the banking crisis, too important to fail.

During a hearing that kicked off the subcommittee's agency-level evaluations of DHS in preparation for the fiscal 2011 Homeland Security appropriations bill, members focused primarily on the Coast Guard's multibillion-dollar Deepwater fleet-revitalization program, the Southwest border technology-development initiative known as SBInet and DHS's efforts to build a departmentwide consolidated management system.

"All of these programs have drawn public criticism for various failings, whether they have been cost growth, charges of unfair contracting, delays, failure to define requirements or objectives, or simply not meeting agency needs," Chairman David E. Price, D-N.C., said. However, he noted, "While sometimes we can say "enough is enough' and pull the plug on projects that go off course . . . we often do not have that luxury."

Ranking member Harold Rogers, R-Ky., also remained supportive of those projects while maintaining that they require strict stewardship.

"From Deepwater to SBInet to the multitude of IT systems across the department, acquisition programs at DHS have unfortunately encountered more setbacks than successes," he said. "However, what gets lost in all the [Government Accountability Office] and [DHS inspector general's] reports on cost and schedule overruns is the fact that these acquisition programs serve the vital purpose of equipping and supporting our brave security professionals in the field who are charged with keeping us safe and secure."

That left witness Jane Holl Lute, DHS's deputy secretary, on defense about cuts the Obama administration has proposed for those programs in the name of fiscal responsibility. During questioning from Rogers and John Culberson, R-Texas, Lute emphasized that the $852 million budget request for the department's management -- $366 million more than DHS received in fiscal 2010 -- does not mean that the department is prioritizing bureaucracy, even when compared with proposed cuts to maritime and border programs. Increasing capability at the management level is an essential part of building operational capacity, she said.

"From an operator's perspective, your teammates at headquarters are every bit as important to you," she said. "Our priority is supporting our field-based operations with all of DHS. . . . It's essential for operators to have what they need, when they need it."

It's a point that other DHS officials have tried to make before the subcommittee this year, and Republicans again greeted it with skepticism. "It's the priorities that concern us," Culberson said.

Border and Coastal Control

Panel Republicans expressed concern over the proposed reductions to SBInet, including the suspension of funding for the second phase of the program to develop automated surveillance and other technology.

Lute deflected the idea that DHS wants to cut the second stage of development altogether. Customs and Border Protection is still testing the first phase of the program near Tucson, Ariz., and plans to apply the lessons it learns to the next stage to avoid some of the false starts and wasted funding that have plagued SBInet, she said. DHS expects that testing to be complete by the end of the year.

Price noted with concern that DHS had originally planned to deploy sensors, cameras, communications relays and other SBInet-related technology to both the Tucson and Yuma areas of the Arizona border by December 2008, but has now pushed that deadline back to 2013.

The chairman also questioned whether the Coast Guard has reassessed the design of the National Security Cutter and re-examined how it fits into their operational strategy.

Contractors designed the 418-foot vessel prior to Sept. 11, 2001, with the intention that it would be able to handle longer patrols than the boats it would replace, as well as have a longer operational reach augmented with unmanned aerial vehicles, or UAVs, and other aircraft.

But, Price said, the UAV program failed to yield a working product, and the ship's design flaws translated into shorter-than-planned patrol times.

The Coast Guard has since dropped the contractor that led systems integration for the first three cutters, taking contract-management duties in-house. Given the expected limitations of the new vessels, and changes to the Coast Guard's post-Sept. 11 mission, the agency needs to take another look at how the cutter fits into its strategy as it works toward building the remaining five boats, Price said.

Both Price and Rogers said they would have an easier time understanding DHS's plans for the cutter, other Deepwater efforts and the virtual fence if the department would turn in months-late reports the subcommittee had requested.

"We can't do our work until we know how you want to spend the money," Rogers said.

Lute replied that there was no excuse for the delay and promised the reports would be completed.

"I'm aware of how behind we are and it's unacceptable," she said.

A version of this story appeared in CQ Today.

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