[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] EXPLORING GAO'S HIGH-RISK LIST AND OPPORTUNITIES FOR REFORM ======================================================================= HEARING before the COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ FEBRUARY 14, 2013 __________ Serial No. 113-3 __________ Printed for the use of the Committee on Oversight and Government Reform Available via the World Wide Web: http://www.fdsys.gov http://www.house.gov/reform U.S. GOVERNMENT PRINTING OFFICE 79-740 WASHINGTON : 2013 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM DARRELL E. ISSA, California, Chairman JOHN L. MICA, Florida ELIJAH E. CUMMINGS, Maryland, MICHAEL R. TURNER, Ohio Ranking Minority Member JOHN J. DUNCAN, JR., Tennessee CAROLYN B. MALONEY, New York PATRICK T. McHENRY, North Carolina ELEANOR HOLMES NORTON, District of JIM JORDAN, Ohio Columbia JASON CHAFFETZ, Utah JOHN F. TIERNEY, Massachusetts TIM WALBERG, Michigan WM. LACY CLAY, Missouri JAMES LANKFORD, Oklahoma STEPHEN F. LYNCH, Massachusetts JUSTIN AMASH, Michigan JIM COOPER, Tennessee PAUL A. GOSAR, Arizona GERALD E. CONNOLLY, Virginia PATRICK MEEHAN, Pennsylvania JACKIE SPEIER, California SCOTT DesJARLAIS, Tennessee MATTHEW A. CARTWRIGHT, TREY GOWDY, South Carolina Pennsylvania BLAKE FARENTHOLD, Texas MARK POCAN, Wisconsin DOC HASTINGS, Washington TAMMY DUCKWORTH, Illinois CYNTHIA M. LUMMIS, Wyoming DANNY K. DAVIS, Illinois ROB WOODALL, Georgia PETER WELCH, Vermont THOMAS MASSIE, Kentucky TONY CARDENAS, California DOUG COLLINS, Georgia STEVEN A. HORSFORD, Nevada MARK MEADOWS, North Carolina MICHELLE LUJAN GRISHAM, New Mexico KERRY L. BENTIVOLIO, Michigan VACANCY RON DeSANTIS, Florida Lawrence J. Brady, Staff Director John D. Cuaderes, Deputy Staff Director Robert Borden, General Counsel Linda A. Good, Chief Clerk David Rapallo, Minority Staff Director C O N T E N T S ---------- Page Hearing held on February 14, 2013................................ 1 WITNESSES Mr. Gene L. Dodaro, Comptroller General of the United States, U.S. Government Accountability Office, Oral Statement............................................... 5 Written Statement............................................ 8 APPENDIX The Honorable Elijah E. Cummings, a Member of Congress from the State of Maryland, Opening Statement........................... 67 The Honorable Gerald E. Connolly, a Member of Congress from the State of Virginia, Opening Statement........................... 69 The Honorable Matthew Cartwright, a Member of Congress from the State of Pennsylvania, Opening Statement....................... 71 SAS RX ALERT: Propofol and Brevital Information.................. 72 GAO Responses to Questions for the Record from The Honorable Paul A. Gosar, a Member of Congress from the State of Arizona....... 75 GAO Responses to Questions for the Record from The Honorable Trey Gowdy, a Member of Congress from the State of South Carolina... 78 EXPLORING GAO'S HIGH-RISK LIST AND OPPORTUNITIES FOR REFORM ---------- Thursday, February 14, 2013 House of Representatives, Committee on Oversight and Government Reform, Washington, D.C. The committee met, pursuant to call, at 10:53 a.m., in Room 2154, Rayburn House Office Building, Hon. Darrell E. Issa [chairman of the committee] presiding. Present: Representatives Issa, Mica, Turner, Duncan, Jordan, Chaffetz, Walberg, Gosar, DesJarlais, Gowdy, Farenthold, Woodall, Massie, Meadows, Bentivolio, Cummings, Norton, Connolly, Speier, Cartwright, Pocan, Duckworth, Cardenas, Horsford and Lujan Grisham. Staff Present: Alexia Ardolina, Assistant Clerk; Robert Borden, General Counsel; Molly Boyl, Parliamentarian; Katelyn E. Christ, Professional Staff Member; John Cuaderes, Deputy Staff Director; Gwen D'Luzansky, Research Analyst; Adam P. Fromm, Director of Member Services and Committee Operations; Linda Good, Chief Clerk; Tyler Grimm, Professional Staff Member; Frederick Hill, Director of Communications and Senior Policy Advisor; Christopher Hixon, Deputy Chief Counsel, Oversight; Mitchell S. Kominsky, Counsel; Mark D. Marin, Director of Oversight; Tegan Millspaw, Professional Staff Member; Mary Pritschau, Professional Staff Member; Laura L. Rush, Deputy Chief Clerk; Scott Schmidt, Deputy Director of Digital Strategy; Matthew Tallmer, Investigator; Peter Warren, Legislative Policy Director; Rebecca Watkins, Deputy Director of Communications; Meghan Berroya, Minority Counsel; Jaron Bourke, Minority Director of Administration; Krista Boyd, Minority Deputy Director of Legislation; Counsel; Carla Hultberg, Minority Chief Clerk; Elisa LaNier, Minority Deputy Clerk; Una Lee, Minority Counsel; and Dave Rapallo, Minority Staff Director. Chairman Issa. The hearing will come to order on, ``Exploring GAO's High-Risk List and Opportunities for Reform.'' We on the Oversight and Government Reform Committee exist to secure two fundamental principles. First, Americans have a right to know that the money Washington takes from them is well spent. And second, Americans deserve an efficient, effective government that works for them. Our duty on the Government Oversight and Reform Committee is to protect these rights. Our solemn responsibility is to hold government accountable to taxpayers, because taxpayers have a right to know what they get from their government. Our obligation is to work tirelessly, in partnership with citizen watchdogs and the GAO, to deliver the facts to the American people and bring genuine reform to the Federal bureaucracy. Today we are having our broadest oversight hearing that we have in any one Congress. That is because the GAO's report is, in fact, on all spending of government and all risk to government and, in fact, is the most important report published. Each 2 years, General Dodaro and his staff assess all the risks to the government, in size of the risk in dollars but also in the likelihood of success or failure. This risk produces the top, if you will, highest threats. It also recognizes the success that sometimes occurs because of both GAO and this committee's efforts to work with government to reduce waste and risk to government. This year, by one account, we lost $261 billion, or 7 percent of our total spending, in fraud and waste. I might note that when you annualize that, or if you will decade-ize it, that represents $2.6 trillion, about twice what we are looking at for the sequestration. The 30 areas that this year are on the high-risk list represent tremendous opportunities to save those billions of dollars. And I might repeat, if we were able to save just half of what we waste, we would need no sequestration at all. As we are going to hear today, those areas extend from the Department of Defense to our weather system, from elements related to great storms, such as Superstorm Sandy, to in fact the simple mundane Medicaid-Medicare programs that every day touch our lives in important ways. The truth is, identifying high-risk areas isn't enough anymore. It is clear that many of the areas on high risk are perennial high risk. Seventeen areas on this year's high-risk list have been on that list for more than a decade; six have been on that list since inception. I don't expect overnight to fix DOD procurement. I don't expect overnight to take Medicare, now becoming our largest total expense and eclipsing, if you include the dual-eligible Medicare and Medicaid recipients, eclipsing both Social Security and our Department of Defense individual spending, I don't expect to fix it overnight. But with the help of the GAO on a nonpartisan basis, our committee and other committees of Congress have an opportunity to attack each of these areas and make real improvements. Our commitment is to make those real improvements. I am pleased to see a particular emphasis on the program of Medicare and Medicaid, which are permanent fixtures, that in fact this is an area of particular opportunity for reduction in waste and, consistent with the Affordable Health Care Act, an area of growth in number of recipients. The committee has just voted on a bipartisan basis on a report related specifically to New York State. During the dialogue, we mentioned an equally outlandish problem that existed in the State of Texas. These billions of dollars can no longer be tolerated. We must find them, not after decades of waste and abuse but in fact in real time. This committee will have before it today, or have before it during this Congress, an updated version of the bipartisan DATA Act. It will have an updated version or a version of our IT reform on a bipartisan basis. These and other systems that this committee is responsible for changing will create the opportunity to save money in IT procurement and deliver better information to decision makers. It also will create greater transparency for the GAO in their work for Congress and its work and for all the watchdogs of waste and abuse. So, as we begin this hearing today with our esteemed comptroller general, we also realize there is legislative work for us to do if this list is to be successfully attacked and reduced. I look forward to working on both the legislative issues and the oversight issues with my partner, the ranking member, Mr. Cummings, who I now recognize for his opening statement. Mr. Cummings. I want to thank you, Mr. Chairman, for holding this hearing. I believe this will be one of the most important hearings this committee will hold this Congress. Mr. Dodaro, I also thank you for testifying before us today. And I thank you for the work GAO put into creating this high-risk report. I also ask that you extend the gratitude of this entire committee for the hard work of the folks at GAO. As I said earlier in a press conference, they have earned the reputation for outstanding and accurate work and work that helps our government function better. And so we publicly say thank you to them. Every one of GAO's high-risk reports has been important. However, this year's report is especially significant because the comptroller general and the nonpartisan experts at GAO have made a landmark decision to add the issue of climate change to their biennial high-risk report, which details the most pressing challenges facing our Nation and the Federal Government. In its report, GAO identifies a serious risk facing our Nation, one that we cannot continue to ignore. GAO finds that climate change poses significant financial risk to our Nation's economy, including agriculture, infrastructure, ecosystems, and human health. GAO warns that our government is not well positioned to address this fiscal exposure. And GAO recommends a government-wide strategic approach, with strong leadership, and the authority to manage climate change risk. GAO finds that the government has already spent tens of billions of dollars on damage from severe weather events related to climate change. According to the National Oceanic and Atmospheric Administration, over the past 2 years the United States has experienced 25 weather disasters that cost over a billion dollars each. GAO's historic decision to add climate change to the list of high-risk challenges facing our Nation is a wake-up call for Congress to finally start addressing this very, very critical issue. Unfortunately, in the last Congress the House Republicans voted 37 times to block action to address the threat of climate change. For example, they slashed climate change research funding by more than a hundred million dollars. They voted to prevent the State Department from using funds to send a special envoy for climate change to international climate negotiations. They voted to zero out the United States contribution to the Intergovernmental Panel on Climate Change, the world's leading authority on climate change science. They voted to prohibit the Department of Homeland Security from using any funds to participate in the Interagency Climate Change Adaptation Task Force. And they voted to prohibit the Department of Agriculture from using any funds to implement its climate change adaptation program. What GAO is telling us today is that Congress simply cannot afford to block or delay action any longer. We must act now to implement GAO's recommendations and mitigate the risks from climate change. For these reasons, I sent a letter to Chairman Issa today requesting that our committee hold a series of hearings to address each of the four specific areas that GAO highlights in its report relating to climate change. And in an earlier press conference, Chairman Issa I thought made a very good point, and that is perhaps we should look at what responsibilities States are playing with regard to climate change and what responsibility they should have. And I am hoping that we, as I said to him earlier, maybe we will have some Governors to come in and talk about their responsibility and things that they are doing to prepare for weather-type problems that might affect their States. Mr. Chairman, when we were here 2 years ago considering the GAO's last high-risk report in 2011, you said, it is our committee's obligation to conduct vigorous oversight over the issues raised by GAO, and to insist on plans to change by each of the agencies listed here today. I agreed then, and I agree now. With our committee's extremely wide jurisdiction across multiple Federal agencies and departments, we have a very unique opportunity to conduct hearings that will lead to vigorous oversight, responsible funding decisions, and legislation to address the growing threats to public health and our economy. As the President noted the other night in his State of the Union, we have seen in the last 10 or 15 years just an onslaught of weather-related problems. And I am hoping that we all will work together closely to prepare for the fiscal impact of those problems. With that, I stand ready, willing, and able to work with the chairman. And with that, I yield back. Chairman Issa. I thank the gentleman. And as we did discuss, I believe we need to kick off the first hearing related to that risk, and I look forward to scheduling that hearing, and also suggesting that other committees of jurisdiction do their oversight related specifically to those areas. With that, we now recognize our first witness and the panel behind him. I am pleased to welcome the Honorable Gene Dodaro, who is the comptroller general of the United States. He also comes with a small sampling of his team of experts from the United States Government Accountability Office that is here today. And I will try not to mess up your names, but if you would rise just so that the audience can know that he came with a tremendous amount of expertise: Chris Mihm is the managing director of strategic issues at the GAO. Mark Gaffigan is managing director of natural resources and environment at the GAO. Cathleen Berrick is managing director of homeland security and justice issues at the GAO. Phillip Herr is managing director of fiscal infrastructure issues at the GAO. That is physical actually. Orice Williams Brown is managing director of financial markets, an area of particular concern, and community investment at the GAO. And Mr. David Powner is director of information technology and management systems at the GAO. And I am now going to ask you all to stand, because if you are going to help the General, you may very well be a witness. Would you please raise your right hand? Pursuant to the committee rules, please raise your right hands. Do you solemnly swear or affirm that the testimony you are about to give will be the truth, the whole truth, and nothing but the truth? Mr. Dodaro. I do. Chairman Issa. Let the record reflect that all witnesses answered in the affirmative. And normally we have that 5-minute clock. For your reference, we will have it. If you run a little over, you are the whole show today, so Gene, you are recognized. WITNESS STATEMENT STATEMENT OF THE HONORABLE GENE L. DODARO Mr. Dodaro. Thank you very much, Mr. Chairman, Ranking Member Cummings, members of the committee. I am very pleased to be invited today to talk about GAO's high-risk list update. We do this update, as noted, every 2 years, with the beginning of each new Congress in order to identify areas that we believe are at highest risk of waste, fraud, abuse, and mismanagement, or are in need of broad-based reform. I am very pleased to report, with this committee's help, and I appreciate your support, Mr. Chairman, Mr. Cummings, and committee members, of oversight since our last report in 2011 that notable progress has been made in the vast majority of areas on the high-risk list. This has been due in part to legislation passed by the Congress. For example, the FDA Authorization Act addressed many issues that GAO had recommended for improvements to oversight of medical products and devices, for example dealing with drug shortages, and also increased inspections, risk-based, in foreign operations. Congress also passed important legislation concerning the Flood Insurance Program, which is also on our list. Also, OMB and the agencies have been holding regular meetings with GAO, which I personally participate in, in order to focus on solutions and to identify ways to make the necessary improvements to get off of the list. This year, enough progress has been made that we are removing two items from the list. First is interagency contracts. Interagency contracting actually can be a very good and important management tool if done properly. We found, back in 2005, they were not done very well. They were out of scope in terms of the contracts, lack of competition. One of the most notable examples was the hiring of interrogators for Iraq using an IT contract. Since then, important procedures have been put in place, agencies have fixed the problems. The Congress has required the Federal Acquisition Regulations to be reformed for best procurement decisions. And also requiring a business case before new interagency contracts are put in place. And better data now is being collected in those areas. So we believe that there are adequate mechanisms in place in order to help manage this very important tool to help the government leverage its buying power. Secondly, we are removing the IRS business system modernization from the list. It was originally put on in 1995 due to the IRS being mired with management and technical problems with their modernization effort. They have made steady progress over the years. They have just deployed the first module of the system, which allows now daily updating of taxpayer accounts, which will improve taxpayer service and also their enforcement activities as well. We have reviewed their investment, management practices, and found about 80 percent of them meet best practices. And all of their project management recommendations do that. Their software development component now has been rated at a computer maturity model level three under their Software Engineering Institute standards, which means it is a good level by industry standards. Two important points I would make with these areas we are taking off the list. One, we continue to monitor those areas after they are off the list. So they may be off the list, but they are not out of sight. And so we make sure that the progress that has been gained is enduring. Secondly, like the other areas that eventually come off the list, they come off because of two major reasons. One is sustained congressional oversight. And oversight in the interagency contracting, Congress insisted on important reforms, required the IGs to do continual reviews in this area. In the IRS area, Congress required an annual expenditure plan from IRS every year, and a GAO review. So continued congressional oversight can play enormous dividends in resolving many of these problems. The two new areas we are adding this year, one is limiting the Federal Government's fiscal exposure by better managing climate change risk. It is clear the number of disasters have gone from, in 2004, the Federal Government intervening in 65 to 98 in 2012, which is a record number of years. There is indications that the severe weather events, both by the National Academy of Sciences and by the government's Global Change Management Research Program, that there will be more events occurring and more costly events. The Federal Government has enormous exposure to these risks. First, it is one of the largest property holders in the government--in the Nation. There are hundreds of thousands of buildings that the Federal Government owns and also defense installations along our coast lines. Also, the Federal Government holds 29 percent of the property in the United States and manages that property. It also manages the Flood and Crop Insurance Programs, which we have recommended take into account climate science issues in revamping those programs. We found--and the government is also the provider of disaster aid, over $80 billion over the past year and before the assistance for Hurricane Sandy. We found that the criteria for the Federal Government intervening in a disaster is an artificially low level. It is based on $1.36 per person per State. So any disaster that exceeds that threshold gets Federal assistance. And it had not /been adjusted for inflation for a 13-year period of time. Had it been adjusted for inflation, the Federal Government would have intervened in 25 percent less situations in terms of the Federal Government deciding to get involved. We recommended that the Federal Government needs a better strategic plan for this area that sets priorities to guide investment decisions. Individual agencies have plans, but there is no overall central direction and priorities that are set for that area and coordinated at the Federal level or with the State and local governments. I know, Mr. Chairman, you made that point this morning. That is in our report. It is very important that the Federal Government provide technical information on weather-related issues to State and local governments to guide their investment decisions in huge amounts of infrastructure. The Federal Flood Insurance Programs and the Crop Insurance Programs need to be reformed. And we need to set better criteria that takes into account the Federal Government's fiscal condition right now. The last area we added on the list is gaps in weather satellite information due to management problems and acquisition problems over the years. Right now, the gaps in the polar-orbiting satellites that provide early, mid-day and afternoon warnings to feed computer weather prediction models and to provide the 3, 4, and 7-day forecasts has the potential for a gap to occur as early as 2014 and could last up to 53 months. This is very important. Without that information, you know, one credible organization has said that the information from the polar-orbiting satellites, the prediction of the path for Superstorm Sandy would have shown it going out to sea and not hitting New Jersey at all. And so, without this critical information, there are property, lives, economic consequences. And so we are adding this area to our high-risk list. At our recommendation, contingency plans have been developed, but they need to be executed, monitored properly. And I think congressional oversight could be very beneficial and necessary in this area. So, Mr. Chairman, that concludes my broad overview of the major changes on the list. There are 30 items now remaining on the list. I would be happy to answer questions. 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Thank you. And I will now recognize myself for a few quick questions. First of all, my understanding from your report is that the FDA has not really solved its problem of meeting its responsibility for drug availability, that that continues to be an area in which the American people cannot count on both generic antibiotics or chemotherapy drugs being in proper supply based on this failure. Is that correct? Mr. Dodaro. They still have to step up and make some changes in order to do that. Congress now has given them the authority to have drug manufacturers notify them in advance of shortages, which is a very important step consistent with a prior GAO recommendation. But they must follow through. And once they have that information they must then take action. So we're going to carefully continue to monitor that situation, Mr. Chairman. There are also areas that we've pointed out where they need to make sure they do postmarket studies to make sure their recalls are done properly as well. So both those areas are on our radar screen. Chairman Issa. Thank you. And I appreciate that. Your concern on FHA, if I understand correctly, is that because they issue, effectively, zero-down loans, very similar to the loans that got us in trouble with Freddie and Fannie, they are technically 4 percent, but after you look at sort of closing costs, they are really zero down, that any reduction in home values, even short term, could put FHA in a similar situation to Freddie and Fannie. Is that correct? Mr. Dodaro. Their financial situation is precarious. They are--there is high risk. There are capital reserve ratios below the levels that it needs to be. So we've added it to the list to highlight that. And also the fact that in resolving the Freddie Mac and Fannie Mae situation and taking them out conservatorship, which Congress still has to do--we have modernizing the financial regulatory system on the list--that FHA situation needs to be taken into account. There be an integrated set of activities there so that we don't increase the risk even further for FHA. Chairman Issa. And I'll summarize, if you will, from the way I heard it, you don't fix Freddie and Fannie, unless you fix FHA at the same time, that they are all, if you will, subsidized or opportunities that could lead to the Federal Government putting up billions of dollars again if anything goes wrong. Mr. Dodaro. That's exactly right. It's all about solving what the Federal Government's proper role should be in the housing market. Chairman Issa. If I understand correctly when you said that by not indexing this $1.36 per capita that 25 percent would not even have made the list, effectively what you're saying is we have shifted 25 percent more things which are in constant dollars State responsibility, we've shifted them onto the Federal back, and that's a substantial amount of billions of dollars. Is that correct? Mr. Dodaro. That's correct, Mr. Chairman. And we've recommended that if FEMA revised the criteria to take into account State's capability to be able to pay there as well. And they've agreed with the recommendation, but I think Congressional follow up would be helpful. Chairman Issa. Appreciate that. And I guess, lastly, along the same line, if, in fact, we continue to see water levels rise around our coastlines, which represent about half of our States, effectively you've looked at Federal installations as one of the risk areas; in other words, we need to build and plan both Naval and other military installations and Federal property based on the assumption that, if you will, things change and where you built 100, 200, 300 years ago--because some of our forts are just that, they are Revolutionary-period forts, need to be planned in a way, and essentially, you're calling for internal zoning that the Federal Government begins making decisions that abate likely changes in water levels and storms and so on. Mr. Dodaro. Yes. Yes. Definitely. Defense Department's already recognized this risk and beginning to act on that. In fact, the Congress also recognized this risk when it passed the Bigger Waters Act this past year. And, in fact, that FEMA before was prohibited from taking into account erosion over time. And now Congress has required that climate science be included in FEMA's further efforts on the flood insurance program. Please. Chairman Issa. Back to the flood insurance portion. My understanding is that both of our major insurance programs are not run in a way in which the private sector would run their insurance. Meaning, we don't adjust our rates to meet the likely payout; instead, they are fixed in time. And so they can, year after year after year, come up short, ultimately shifting to the taxpayer the responsibility for paying out what should be insurance by the insured. Mr. Dodaro. Yes. That's correct. I mean, we've recommended they use better practices. They've agreed to do that, they've contracted for studies. But the results haven't yet been provided to the Congress. And this is very important. And the flood insurance program, even before Superstorm Sandy, flood insurance program owed the Federal Government back over $20 billion. The likelihood of that getting repaid is not high. Chairman Issa. I certainly, in closing, would say that if I could be insured for the less than the risk, I would always buy that insurance. I recognize the gentleman from Maryland for his opening-- for his questions. Mr. Cummings. Thank you very much, Mr. Chairman. Mr. Dodaro, let me go to page 202 of your report, where you talk about the drug shortages. Just want to pick up on some of the things that the chairman was asking you about. You know, we did some preliminary research and looked into this area of drug shortages. And drugs that were lifesaving drugs, chemotherapy drugs. And one of the things that we found in our research was that we had a gray market going on out there where a drug might start out from the manufacturer costing $7 a bottle, and by the end of the week, because of the gray market, may be selling for $700 a bottle. We also had the opportunity to talk to doctors from all over the country, as a matter of fact, one doctor from South Carolina, I'll never forget it. She came in, and she is at a major medical facility, and she said, sadly, we are performing medicine like we're in a third-world country because of the shortages. So it is a major, major area. And I noticed your comments. But I'm just wondering, did you go--did you all look into at all the gray-market situation where people are improperly ratcheting up and hoarding drugs and then jacking up the costs so that we've got hospitals and the American Hospital Association now saying that 99 percent of their hospitals have drug shortages? I mean, did you all look at that at all, or you just looked at it from an FDA monitoring standpoint? Mr. Dodaro. We primarily looked at it from a FDA monitoring standpoint. I can go back and double-check, Mr. Chairman. If we have looked into the gray-market issue, I'll provide something for the record. Mr. Cummings. You may want to look at that. Because you've made some--you know, you've made some very good comments here on page 202. But we also, I think, to just look at it from a FDA-monitoring standpoint, it is, you know, perhaps--I mean, it's good. But if we have an underlying cause of greedy people on a daily basis literally taking drugs out of the hands of Hopkins--of a hospital ranked number 1 in the world, in my district, Johns Hopkins, they told me this. And they can't have the best drugs possible to treat our constituents because people are hoarding them and then putting them on the gray market and jacking them up a hundred times, that's a major problem that goes to so many things, to our economy, of course. It jacks up the costs of medicine. It is a detriment to many of our constituents with regard to health care. So I just want-- and would you get me something back on that to let me know how deep you went into it? One of the things I think the chairman was saying, making it a part of our scope of inquiry this session, the next 2 years, is looking, not only at the FDA piece of this, but looking at the--this whole thing of the gray market. And so I'd really like to sit down with you, if you haven't delved into it and see where--you know, what we might be able to do together to try to get to the bottom of that. Because it is a very, very serious problem. A lot of Americans do not even know about it. But it's very serious. I want to briefly go to this whole issue of climate change. GAO recognized that the Federal Government has a number of efforts underway to decrease domestic greenhouse gas emissions. The success of greenhouse gas emission reduction efforts depends in large part on cooperative international efforts. However, limiting the Federal Government's physical exposure to climate change risks present a challenge no matter the outcome of the domestic and international efforts to reduce the emissions, in part because greenhouse gases already in the atmosphere will continue altering the climate system for many decades. So if I understand this correctly, the carbon emissions that are in our atmosphere are already altering the climate system and will continue to do so for the foreseeable future. Is that correct? Mr. Dodaro. Based on the information from the Government Global Climate Change Research Program and National Academy of Sciences, that's correct. Mr. Cummings. Is it GAO's opinion that regardless of the outcome of global negotiations to reduce carbon emissions, the United States Government should take immediate action to mitigate the risks posed by the climate change? Mr. Dodaro. Yes. Mr. Cummings. Now, you heard the President's testimony the other night, his State of the Union, where he talked about these catastrophic weather-related incidents seeming to come at a greater pace and costing us billions upon billions of dollars. What do you--just as I--as you close with my questioning, tell us what you are recommending again for us to do with regard to these catastrophic types of things, storms like Sandy, that is costing us so much and costing so much inconvenience to our citizens. Mr. Dodaro. There are several things. One, we think Federal Government needs to be better organized. There needs to be a better coordinated effort among Federal departments and agencies with a strategic plan and a focus on priorities. We looked at all the Federal spending. The Federal Government is already spending a lot of money on these areas, but it's not well coordinated and it's not targeted and prioritized. So that's number one. Particularly important in our budget environment right now where we have to make every dollar count and we have to make the best investments possible. Second, we need to partner with the State and local governments. We need to provide them better weather-related information. They are already making huge investments with their own money and with the Federal Government's money in infrastructure. So, in terms of figuring out how to deal with roads, bridges, tunnels, et cetera, and provide adequate, proper interpretation or--of the science data and make those decisions, that is very important. We need to get our act together on our Flood Insurance Program and our Crop Insurance Program and make sure that that's developed properly. And we need to look at how we provide and what the criteria is for when we intervene in disaster assistance or whether it should be a State and local responsibility. Mr. Cummings. Thank you, Mr. Chairman. Mr. DesJarlais. [Presiding.] I thank the ranking remember. The chair now recognizes the gentleman from Florida, Mr. Mica, for 5 minutes. Mr. Mica. Thank you. And I am pleased that our committee is looking at GAO's 2013 High-Risk List. This list is probably a good template for looking at ways in which we could have dramatic savings. Right now we're practically bankrupt, approaching $16.5 trillion in debt. I was wondering, sir, if you could tell me, this list is pretty extensive. It's a lot of bad news. There's a little bit of good news you shared and a couple coming off the list. But wouldn't you estimate there could be tens of billions in savings from the recommendations in these high-risk areas that you've provided? Mr. Dodaro. That's true. Mr. Mica. And I think that's why it's so important our work continue. While they're focusing some on this one report that our committee has produced, it's billions of dollars in Medicare misspent on New York. Everyone should read that, see it's tens of billions of dollars of wasteful spending, programs out of control; a program, Medicare, which is so important to provide those that need health care, in New York alone, tens of billions of dollars outlined here wasted. Have you seen this report, sir? Mr. Dodaro. No, I have not. Mr. Mica. I hope you do and would confirm that. Now, I don't have--I chair a small government operation subcommittee particularly interested in the managing Federal real property. We've heard you testify and others that we own thousands--tens of thousands of buildings, structures, the biggest property owner in the world, probably; 29 percent of all the Federal--of all the property in the United States is either owned or managed by the United States, according to your report. Is that correct? Mr. Dodaro. That's correct. Mr. Mica. Well, we're going to do some hearings that will probably start with the risk of--high-risk list that you provide us, in managing Federal property and look at it. I've been at it a week or two. I went out--well, what's stunning is--and we did a little bit of this in the Transportation Committee. Nobody has control. I was in real estate. I think the last folks I'd ever give anything to manage would be the Federal Government, including assets. Would you give your real estate or assets to the Federal Government to manage? Mr. Dodaro. Only with great many conditions. Mr. Mica. Well, we went out last week and looked at a million square feet of space in Springfield. And I just looked at it from a management standpoint, you've got a million square feet and a lot of acreage in Springfield, Virginia. Not well utilized. Does anyone look at the specific properties with a management plan or the best utilization of that asset for realization of taxpayer dollars? Is there---- Mr. Dodaro. There--we've been encouraging Federal oversight over that issue. Mr. Mica. I don't see it. I mean, I could go through that, and as a property manager, to have that valuable asset there, it might have made sense 20 years ago, but not today. Then the other day, we went out and looked at 7,000 acres, nearly 7,000 acres in Maryland, Mr. Cummings. And we have an Agricultural Research Center there dating back from maybe the turn of the century. They have 500 buildings, of which, there are 200 that either need to be demolished or are unusable. What stunned me is there was no plan for either utilization of either the acreage or the facilities. Do you know of a plan or--or do we have any mechanism to even require an agency to have a plan to deal with those assets? Mr. Dodaro. We've made recommendations along those lines. One of the things that we found is that when we went out and did the type of inspections that you're talking about doing, the data didn't match what was in the database. Mr. Mica. They said I was the first Member of Congress, I think, since Mr. Hoyer, to go out there. But it's Beltsville. It's right in the Capital circle. Mr. Dodaro. I know where, right. Mr. Mica. And nobody has a clue. I mean, there is an incredible asset sitting there. In fact, I think some prohibitions have been put on doing anything, which just is mind-boggling, again, from somebody who's dealt with real estate in the private sector. So I think we're going to work with you all to see if can't get some of these agencies to have plans to maximize those-- those assets and utilize them. The lease--you point out in your report here, lost $200 million in leases since 2005. Again, it's only a quarter of a billion here and a quarter billion there. But we're bankrupting the nation through policies and practices and lack of attention to maximizing our assets. So we'll be back. I think we're going to try to do this on February 27th. Work with the minority to set a date and launch a little bit more in depth on this report. And we thank you and others for working with us. Yield back. Mr. DesJarlais. I thank the gentleman. The chair now recognizes the gentlelady from District of Columbia, Ms. Norton. Ms. Norton. Thank you, Mr. Chairman. And Mr. Dodaro, I want to thank you for what is always an illuminating report but particularly for adding climate change for the first time as a risk for the Federal Government. This has come at a time when it could not be more needed. We needed the imprimatur of an objective government agency. Climate change is not political, and we make it political at our own risk. I recall in the past two Congresses, we've been dealing with a 100-year flood. That's kind of a silly thing to even think about calling it now. And even as we did label it 100-year flood and force States to update how--how they go about preparing for flooding, we recognize that a hundred year was not--was a term of--to simply to make people understand what was regarded as a rare event, at least in terms of floods. Well, we've gone from rare to routine and to unheard of. Sadly, during the--after Sandy, there was a very contentious debate in here about what to do. And I think part of that comes from the unpredictability of budgeting for such events. Now, nothing of the kind in memory had been seen by New York State. So there was no way to play for that. And there was certainly no way to budget for that. It was so unusual. Or to take another example, shortly after that, was it last week that we had the snowstorm that went all the way up into New England? And then it had a wind current that resembled a hurricane. You know, try preparing for that. And yet you name ways in a which we are highly vulnerable, not only what we own, but the assistance we give, the dependence of the States on us, emergency aid and the rest, this is very, very troubling. And what my question goes to, and we--we--it's easier to predict a recession or a downturn in the economy than it is to predict one of these events. We see flowers growing in the wintertime, and we don't know whether tomorrow is going to bring springtime weather or a snowstorm. And so finally the country, which when climate change was first discussed majority of the American people said, yes, we think there's climate change, and something has to be done about it. The last 12 or 18 months has produced a come-back in the public on an understanding of climate change. You can understand during a recession that people didn't want--said they no longer, quote, ``believed'' it. I don't understand the nomenclature of ``believing in'' when it comes to science. I need to know from you. You know how our budgets, of course, are developed. It's one--and I accept what you say about the coordination of the Federal agencies and the rest. But I have to ask you, Mr. Dodaro, how do you budget for the unfathomable and avoid partisan debate when they come up? I mean, I heard some Members from New York, who had never seen a disaster, say, you just wait--somebody from Mississippi got up and opposed it. Well, that's one of the parts of the country that does not need to get up on its hind legs on this issue because we have readily come forward time and time again. I said, I hope that's not the way you look at it. I hope the way you look at it is to use it as an example by voting for what happens in Mississippi, Louisiana, or some tornado someplace where it's unheard of. But I don't accept that the present budget process is at all responsive to this new world of climate change. And I wonder if you could give us some help. Mr. Dodaro. Right. Ms. Norton. On how to go about, in a budgeted world in which we live, making these funds available wherever they occur rather quickly without the kind of contentious debate we had here over Sandy. Mr. Dodaro. Yes. There are two things I would say. First, we should not pretend that disasters do not occur in our budgeting process, which right now we do not budget for anything that might occur. Now, there's a historical record here that shows over time how much we've always, you know, provided over a period of time. So you have historical data that could be used to provide, you know, in anybody's budget, a household budget or wherever, you'd have a contingency plan; we don't have contingency plans in our budgeting process. Ms. Norton. You mean for even the kind of disasters that could be expected. Mr. Dodaro. Right. That's correct. Ms. Norton. Let's begin there. Mr. Dodaro. That's a starting point. Secondly, we can revisit this criteria for what we decided the Federal Government to pay for and what not to pay for and what should be absorbed at the State and local level. It's badly in need of modernization and upgrading. So that could give you a better indication for budgeting purposes as well. Third, we need better data on weather-related potential changes, good science data that could be objectively collected and provided to State and local governments and the Federal Government to make investment decisions to justify budgetary investments that will then yield proper information in the future. And then we'll have to, you know, there's going to be, obviously, things always that are going to come up that you don't expect. But right now, we're pretending we don't expect anything. And that's not reality. Ms. Norton. Well, we do budget in expectation that there will be hurricanes and the rest. And that fund--and then we're told that that fund has been used up by the most recent hurricane. Mr. Dodaro. Right. And there's revisions that are made after disasters take place about the additional money that's needed during that period of time. The budgeting system is in need of reform for these type of efforts. I agree completely with your view. Ms. Norton. Thank you, Mr. Chairman. Mr. DesJarlais. Thank the gentlelady. The chair now recognizes the gentleman from Utah, Mr. Chaffetz, for 5 minutes. Mr. Chaffetz. Thank you, Mr. Chairman. And thank you for being here and the great work that so many people do within the agency. It's a critical role to have the oversight and the understanding and the audits that go on. I want to try to touch on three topics, if I can. I want to start with the Federal real property. I have introduced a bill with Mr. Quigley, H.R. 328, to try to dispose of these properties. But could you give me some further insight? The number has greatly fluctuated on the number of underutilized buildings, not too recent--fairly recently, GAO had estimated the 45,000 properties that are underutilized, that number is now 71,000 that are underutilized, yet the annual operating costs remain at about a billion five. Why the fluctuation? Mr. Dodaro. I'm going to ask Mr. Herr to answer that question. Mr. Chaffetz. Okay. Mr. Herr. Congressman Chaffetz, one of the areas we've done work in recently was looking at the Federal real property database that GSA and OMB maintain. We found that, as the Comptroller General mentioned, there's a lot of inaccuracies in that. And we've been pushing and working with them to really update. Mr. Chaffetz. When you say ``a lot,'' are we talking by the tens of thousands or are we---- Mr. Herr. One of the challenges is because of the nature of the sample we took last year and looking at it, there's about 400,000 properties and there's another 400,000 structures, not including the Postal Service. So getting a comprehensive view of that, our suggestion and recommendation is GSA and the agencies do a better job of looking at their inventories to give a better sense---- Mr. Chaffetz. I'm looking for more specifics on. I mean, it just seems to me that we ought to be able to pull up a list at any given time and be able to see all the real property that this country has. We can't do it, even within my State of Utah, the real property just in the State. So why? We don't even know what we own. Mr. Herr. That's--there is a--that's part of the challenge. In fact, Mr. Mica mentioned the facility out at USDA in Beltsville. We had a team visit there last year to highlight some of the problems that he was mentioning. This is part of challenge is getting your hands---- Mr. Chaffetz. How inaccurate is it? Are we missing 1 percent? Based on your sample, how inaccurate was it? Mr. Dodaro. Talk about the ones we looked at. Mr. Herr. Well, the ones we looked at, we found errors, for example, in terms of the valuation of the properties. But in terms of doing a sample that we could generalize statistically across the country, we weren't able to do that, given the sheer numbers involved and what it would take to do a generalizable sample. Mr. Dodaro. But in the sample we did look at, we found a significant number of errors. I'll provide the specifics to you---- Mr. Chaffetz. That would be great. Mr. Dodaro. I was concerned enough with the level of errors that we found in the small sample to be concerned enough to make the recommendations. I would have like to had a projectable one, but we just don't have the resources to do that. GSA is taking a broader sample and looking. We have not seen their results yet. So we will follow up and provide those to you as well. Mr. Chaffetz. That would be great. Clearly, it's on the high-risk list. This is why you're highlighting it. You talk about the inaccuracy of the data. What I'm concerned about is, in a 24-month period or so, you went from 45,000 properties for 71,000 properties. That's not a small jump--we're talking about real property here, this is--these are big assets and lots of-- but the dollars didn't change. You still projected $1.5 billion and it's--and yet the number jumped by about 50-plus percent. So that's just a concern that I would like to continue to follow up on. And I just physically don't understand how the GSA lost $200 million on leases since 2005, including $75 million in 2011 alone. I mean, that's why these departments use the GSA, is to make sure we don't make these kinds of mistakes. How does that happen? Mr. Herr. One of the areas we've identified is the agencies do not do a good job of sharing resources. For example, there may be Federal agencies located in one area that are not really looking and being encouraged to share space or minimize their space use and bring in other agencies to work with them. Mr. Chaffetz. Well, and one of the--I don't have a Federal building in my Congressional district. But I know that as we looked at just our own office space, it was unbelievable how much more expensive going with the Federal building in Salt Lake City would be. I mean, it was ridiculous. So much so that I believe our Senator said, ``I'm not paying that rate. I can't afford it.'' And if they just simply go across the street, they would save significant dollars in doing so. So I appreciate looking at that. Mr. Chairman, I was going to look at three different topics; we barely got through one. But I don't want to hog the time. I know Mr. Gowdy is anxious with 20 minutes worth of questions. So I will yield back the balance of my time. Mr. DesJarlais. Thank the gentleman. The chair now recognizes the gentleman from Virginia, Mr. Connolly, for 5 minutes. Mr. Connolly. Thank you, Mr. Chairman. And welcome, General Dodaro. Mr. Dodaro, on page 88 of the report, you talk about the high risk of the Postal Service. Mr. Dodaro. Yes. Mr. Connolly. Did you at any time consult with the general counsel of your organization with respect to the legality of the announced proposed action of the Postmaster General having the legal authority to go from 6 to 5 days a week. Mr. Dodaro. After the decision was announced, I have asked our attorneys to look at the information. They have talked to the Postal Service and have obtained their legal analysis. They believe the argument to be novel. But we'd have to look at it more carefully in order to provide a full legal opinion on the issue. Mr. Connolly. I don't want to box you in. So what I hear you saying is that your attorneys, your general counsel and yourself are still weighing the legal arguments coming from the Postmaster General. Is that correct? Mr. Dodaro. That's correct. Mr. Connolly. Would it be fair to say, however, that informally the general counsel of your organization has expressed, for example, to the committee staff of this committee, some scepticism as to the legal reasoning behind Postmaster General's announcement? Mr. Dodaro. Well, I don't want to speculate informally on anything. I mean, one of the reasons--one of the things---- Mr. Connolly. I'm not asking you--excuse me. General. I'm not asking you to speculate. Mr. Dodaro. Yeah. Mr. Connolly. Did or did not such an informal conversation, in fact, take place with the staff of this committee? Mr. Dodaro. One of the things we do is ask a lot of questions. So it might have--I'm sure they had asked questions about the issue. Mr. Connolly. Well, let me--certainly, we would welcome your opinion when you are ready to render it. There are many of us here who think it's an illegal act. And this is a nation of laws, and even the Postmaster General of the United States has to follow the law. But it's in your report. I think it's a relevant question, and we would very much welcome your opinion before Congress acts. Climate change, General Dodaro. What made you decide to add that this year? What about the science and/or the potential consequences of climate change made you decide to--and I applaud you for doing it--but made you decide this year it merited inclusion in this very thoughtful report? Mr. Dodaro. Well, there were several things. One, we had issued at least three critical reports over the past 2-year period, one on the disaster aid limitation, one looking at defining the funding of the Federal Government by climate change issues, and finding there was no strategic direction in the climate change area. Obviously, we also looked at the number of disasters that have been occurring. The Flood Insurance Program is already on the high-risk list. We were concerned about gaps in weather satellite coverages. So we decided to take a broader look, you know, at these issues. And I felt also, given the Federal Government's precarious financial situation that it couldn't afford not to try to limit its fiscal exposure in the future in those areas. Those are the factors that I considered. Mr. Connolly. But as a sort of a preface to all of that, there is a certain operating assumption that the science is fairly compelling. Mr. Dodaro. We take the information from the National Science--Academy of Sciences and the Global Climate Change Research Program at faith. And we're--an important point here is that we're not questioning what may or may not be causing the situation. We're saying that science shows there is an issue, and we need to do something about it. We're not getting into the policy areas of where there needs to be changes and how we--how we mitigate whatever might be causing this or the international issues that need to be done. We're saying we have a problem, we need to deal with it and try to limit our exposure. Mr. Connolly. I'm sure you're aware of the fact that there are some, even here in the Congress, who don't even go as far as you do, however, who still are denying the science and are denying there's a problem. Let me ask, in your analysis, risk analysis, have you also looked at the military base, especially Naval base implications? I think of, for example, Norfolk. In Virginia, many of us are very worried that sea rise could jeopardize the largest and oldest Naval base in the United States, as well as facilities in Florida, possibly even South Carolina. Have you looked at that in terms of dollars and cents, relocation costs, you know, reinforcing costs, whatever it may be to try to protect those facilities? Mr. Dodaro. We note the Defense Department vulnerability in the report. We will plan to do more work on those issues going forward in this area. Mr. Connolly. Mr. Chairman, thank you. I know the Committee would welcome that as well, especially dollars-and-cents implications, because I think some people may be very surprised at what we're looking at. Thank you, Mr. Chairman. Mr. DesJarlais. I thank the gentleman. The chair now recognizes Dr. Gosar from Arizona for 5 minutes. Mr. Gosar. Thank you, Mr. Chairman. General, thank you very much. I'm going to harp again. Being a healthcare provider, I want to ask you more about these drug shortages. Do you think that your recommendations to the FDA are sufficient to mitigate this problem? Mr. Dodaro. I believe so. We've made those recommendations just to reiterate that they need to strengthen their program by assessing their resources, systematically tracking data on shortages concerning availability of medically necessity drugs, strategic priority, and developing relevant results-oriented performance---- Mr. Gosar. Let me ask you a question. Do you believe that the FDA is part of the problem? Mr. Dodaro. They need to make changes. Mr. Gosar. They need to make some big changes. Mr. Dodaro. To be part of the solution to the problem. Mr. Gosar. I think part of our problem--I'm looking here at a drug recall, or a drug-in-stock affidavit as of yesterday. I mean, we've got problems with liquid Ibuprofen. We've got problem with anesthetics. This is critical mass. Because we're putting patients in harm's way and physicians in harm's way, making them use protocols and medications that are, many cases, got substantial more side effects and problems for patients. This is critical mass. It's not just with pharmaceuticals but also our medical devices. We have reached a saturation point where I will disagree with you. I do not think that what you have put out here in your outlines are suitable for reform. I think we need to have thorough FDA reforms in regards to not only drug manufacturing but FDA's role and oversight. You look at--you know, in your report, you cite globalization. You know, we don't even control a vast amount of some of the products that go into manufacturing of these drugs or medical devices. And we're becoming problematic that we're dependent upon so many other countries to do that. Do you--would you agree with that? Mr. Dodaro. Well, it's one of the reasons they're on the high-risk list is due to the globalization. I have Ms.---- Mr. Gosar. Seems to me like what we're doing here, is we're--we have a disease here, and what we're doing with this report is we're treating the symptoms but we're not treating the disease. Part of the disease process is the FDA itself. And it seems to me that what we need to do here is reform the FDA. Would you agree with that? Mr. Dodaro. I definitely think there needs to be changes? Mr. Gosar. Do you think we need legislation to refer that? Mr. Dodaro. I'd be happy to provide our recommendations for the record. Mr. Gosar. Okay. One of the other things I did want to touch about--I mean, and these drug shortages, I got to tell you, this affidavit just came from Tucson and from the Northeast. So it's not specific just to rural or urban areas. These are critical shortages that have to be addressed. I don't think like--I don't think that the--the hypothesis or the conclusions you've come to are real. I think we're actually in worse shortages. Because just because we put out a report doesn't mean that we've remedied it. We have actually made some of the problems even worse for the gray market. Now we understand where we hoard, where we take, where we increase the sales. So we've got a huge problem here. So go back to my colleagues, Mr. Chaffetz, in Federal properties. I want to give you a real clear example of Federal properties that have a problem. We just got back from a CODEL in regards to the State Department, looking at our embassies. And in particular, I want to highlight Morocco. Here we are spending over $150 million building a new embassy in Morocco. And we have yet to assay and look at what the value and possibility of sale of our current embassy. Right there, to me, it seems to me like in looking at properties--I'm not a real estate expert--but it seems to me that when we're making a transaction like that, we're looking in the neighborhood of somewhere of $60 million to $80 million in assets that need to have some assaying. Do you know that they had to beg, and as of--there were about, I would say, would you say it's about 50 percent completed, that embassy? Chairman? Mr. DesJarlais. I would say that's correct. Mr. Gosar. They have yet to have an assay of the current buildings and inventory of properties that they had in Morocco. I find that disdainful. This is an instant turnaround of quickly $80 million. And we shouldn't be building unless we actually know what we have as an inventory and make sure that we're selling it. That is disrespectful for the American taxpayer. I'm just giving you one example. Extrapolate it to Great Britain. It's my understanding we're building another embassy for a billion dollars there. What other assets do we have there? I mean, this is critical mass that can turn money very, very quickly. And I think that's what we demand of that. So I think some of the things we really need to do is start looking at the disease process, make sure that we have clear examples, enforce those examples with legislation or retaliatory oversight. And then you're going to get compliance in a lot more of those aspects. I would like for the record, Mr. Chairman, an example of the drug shortages as of yesterday to be placed in the record. Mr. DesJarlais. Without objection. The gentleman's time has expired. The chair now recognizes the gentleman from South Carolina, Mr. Gowdy, for 5 minutes. Mr. Gowdy. Thank you, Dr. DesJarlais. General, I want to ask you about two areas, first weather satellite. I'm asked from time to time, which is tough for a lawyer to understand the science, and so can you help me understand how we got to this crisis and what an acceptable remedy would be for it? Mr. Dodaro. Yes. I'm going to ask Dave Powner, our expert in this area, to come up. He'll give you a great explanation. Mr. Gowdy. Great. Thanks. Mr. Powner. Congressman, this is an area that kind of grew over the years. We had a tri-agency program to put in place polar-orbiting satellites. If you go back several years, there's a long history of cost overruns, technical problems, mismanagement of the program. What happened was the launch dates kept getting pushed. And what we did is we kept buying time with operational satellites. If you fast forward now currently, we're in a situation where in the 2016 time frame, there's a satellite that basically is going to reach the end of its useful life, and we're not launching until 2017. That's the best-case situation. That provides about a 17-month gap in satellite coverage. And depending on if that satellite lasts less than what's expected or if there's any further delays, that gap in satellite coverage could actually be more. So we're looking anywhere from a 17- to 53-month gap in satellite coverage. Our recommendations to NOAA has been to put in place contingency plans to address those gaps. Mr. Gowdy. What do you expect those contingency plans to include? Mr. Powner. Couple things. One is you could look at one extending the current life of the existing satellites. There's things you can currently do with that. There's the possibility of moving up the launch of the current dates. Those are unrealistic in some ways, but there are possibilities if you look at those various schedules. And then if you look at the contingency plans that need to be put in place, various things. You can use other government satellites from DOD. Foreign satellites are an option. Other weather observations are an option. But all those have certain things that go with it. So, for instance, if you use Europeans satellites, there are changes to our ground stations. So there are associated costs with all those different contingency plans. Mr. Gowdy. Do you think there's a reasonable possibility of a gap, a gap that would have significant consequences to us? Mr. Powner. Right now, there is a high probability of a gap that could be 17 months. Mr. Gowdy. Wow. All right. Thank you. General, last area. My colleague from Maryland very appropriately and commendably remembered a doctor from Charleston, South Carolina, Michelle Hudspeth, who came and testified quite emotionally about having to choose which of her pediatric cancer patients she was going to treat because of a drug shortage. So, again, for folks who may not be following this issue, just watching from back home, how did we get in this circumstance, and with specificity, particularly for those who clammer for bipartisanship, because it exists on this issue, because Mr. Issa and Mr. Cummings would both move heaven and Earth tomorrow if they could eliminate the shortage. So what legislatively or from an oversight perspective can we do to remedy the drug shortage? Mr. Dodaro. Well, the first step was taken in the last FDA Modernization Act last year which gave FDA the authority to require manufacturers to notify them. That was part of the problem, step one. In order for them to do something about it, they need to have adequate information to know about those issues. So that aspect has taken shape now. But the question is, what are they going to do with that authority to turn it into action to try to provide adequate information? I'll go back and for the record, as I mentioned to Congressman Gosar, provide additional recommendations on things that could be done in this area. We have an expert team; they just don't happen to be here today. But we'll provide you more specific suggestions. Mr. Gowdy. We would be grateful, because, again, I know that there is a--there is a desire all across this dais for-- for action. And for those who desire work across the aisle, which I think includes all of us, this would be a very appropriate way. So we would be very anxious to see your recommendation. With that, I would yield back to Dr. DesJarlais. Mr. DesJarlais. I thank the gentleman. And I will be going to the gentleman from Pennsylvania, Mr. Cartwright, for 5 minutes. And I want to apologize to the gentleman from Nevada, Mr. Horsford. I did not see you there, so we'll go next to you, right after Mr. Cartwright. The gentleman from Pennsylvania is recognized. Mr. Cartwright. Thank you, Mr. Chairman. Well, Mr. Dodaro, according to the United States Global Change Research Program, the impacts and costliness of weather disasters resulting from floods, droughts, and other events, such as tropical cyclones, will increase in significance as what are considered ``rare events,'' quote-unquote, become more common and intense due to climate change. Now, the Federal Government's crop insurance costs have increased in recent years, rising from an average of $3.1 billion per year from fiscal years 2000 to 2006 to an average of 7.6 billion a year from fiscal years 2000 through 2012 and are projected to increase further. Do we--do we have a sense of the scale by which climate change will increase the Federal fiscal exposure for the National Flood Insurance Program and the Federal Crop Insurance Corporation? Mr. Dodaro. I don't have estimates of that regard. But I am concerned about the potential magnitude, given what we've spent so far to respond to these issues. So we're going to be looking at the quantification issues, if you will, as we delve in this issue in the future. Mr. Cartwright. That leads to my next question. I suspected you my say that. Is a study needed to look into those issues further, sir? Mr. Dodaro. I believe so. But it will--as with many of these areas, be difficult to come up with some areas. But I think we can--we have some work underway in that area right now. We'll be happy to brief you on that and provide the results when they're ready. Mr. Cartwright. Thank you. And secondly, GAO recommended in May of 2011 that the appropriate entities within the Executive Office of the President clearly establish Federal strategic climate change priorities, including the roles and responsibilities of the key Federal entities, taking into consideration the full range of climate-related activities. In 2009, GAO also recommended that the appropriate entities within the Executive Office of the President develop a strategic plan to guide the Nation's efforts to adapt to climate change. Furthermore, Federal agencies released draft climate change adaptation plans on February 9 as part of their strategic sustainability performance plans required by Executive Order 13514 on Federal Leadership in Environmental, Energy and Economic Performance. The USGCRP also has a strategic plan for climate change science research. My question is, how are agency adaptation plans being coordinated across the Federal Government? Mr. Dodaro. That's our main point. We believe, you know, they have the plans, but they're not being coordinated as well as they need to be. Mr. Cartwright. And do these plans amount to a government- wide strategic plan at this point? Mr. Dodaro. Not in our view. And that's one of our main recommendations. And we plan to work with the Executive Office of the President and Office of Science, Technology, and Policy to help underscore what needs to be done. Mr. Cartwright. I thank you for that answer. And I want to say that's why I will be working with the GAO to address two specific concerns they've highlighted in this report. First, I'll be working with the GAO to find the best possible way to coordinate the various adaptation reports required by the Executive Order and to come up with a national strategic plan to prepare for this grave threat. So I thank you for your appearance here today. Mr. Chairman, I yield back my remaining time. Mr. DesJarlais. I thank the gentleman. And again, thank you for your patience, Mr. Horsford. Now recognize the gentleman from Nevada for 5 minutes. Mr. Horsford. Thank you, Mr. Chairman. Thank you, General. I want to commend you and your team for what is a very good blueprint for the critical challenges that are facing our Federal agencies. And not only that you identify the high-risk areas, but you also outlined what needs to be done. And I would point out what needs to be done by Congress, in large part, to move some of these issues forward. My focus I'd like to turn to is transportation. The GAO report lists funding for the Nation's surface transportation system as an area of high risk for the government. And the Moving Ahead for Progress in the 21st Century Act, which was enacted last year, provides some certainty for States. But it also reduces overall funding for highways relative to fiscal year 2011. And it will not provide the funding that we know that we need to bring our infrastructure to a state of good repair overall. I'm from Nevada. And our unemployment rate is still stubbornly high. Our number two industry has been the construction industry. And in large part, my focus is on how we can create jobs and get our economy moving while at the same time investing in critical infrastructure needs. So the report indicates that the 18.4 cent per gallon tax on gasoline that was enacted in 1993, it's only worth about 11.5 cents today. The report goes on to note that the CBO has estimated that it will take $110 billion in additional revenues to maintain current levels of spending plus inflation through 2022. So, in the short term, are there any realistic alternatives to the gas tax to fund transportation that would maintain the user-pays principles that have been at the heart of transportation funding in the past? Mr. Dodaro. I'm going to ask--I'll start, but Phil, come, please. Phil Herr is our transportation expert. I'll let him talk. In the mean--unfortunately, the approach that's been used in the last several years is to use general fund appropriations in order to supplement the lack of funds from the Highway Trust Fund to be able to do that. That's not a long-term answer to the situation, particularly given the Federal Government's deficit and debt issues. So other things need to be looked at. But that's the main reason it's on the list, is order to try to get the Congress to come to grips with the financing structures there. But let me have Phil elaborate, Congressman. Mr. Herr. We've done some additional work. There's a program that expanded under MAP-21 called TIFIA, which is a loan program that helps incentivize private investment in infrastructure. We've also completed some recent work that talks about other options for collecting revenue that would supplement the gas tax as well. But those all obviously involve some policy tradeoffs. But there are options there. But you correctly point out what some of the limitations of the gas tax are. Mr. Horsford. So if I could, Mr. Chairman, follow up. So with the provision of requires the States to spend a specified portion of their allocations, their annual allocations, on the improvements of bridges and interstate pavement, should--what happens if the conditions fall below those standards? And are there considerations given to States to use other types of funding sources to make up the gap? Mr. Herr. It's an interesting question. This was just enacted with MAP-21, so DOT is still working with the States to set some of those targets and what some of the process would be. But our understanding is with the legislative fix that was put in with MAP-21, States would need to dedicate money to some of these national projects that have more national significance? Mr. Horsford. Can they backfill with any additional funding outside? Mr. Herr. I would have to get back to you for the record to see how they are rolling this out. Mr. Horsford. Just to close on the Passenger Rail Investment Improvement Act of 2008, again, this is a critical opportunity for our need to connect Las Vegas and Los Angeles. What risks has GAO identified with this program? And what happens if continued Federal investment is not available to achieve the goals? Mr. Herr. In the high-risk or the high-speed rail, we actually have had--we have some work ongoing now, but in a recent testimony one of my colleagues gave we identified some problems with some of the cost estimates that are made available seeking Federal funding. So we're looking at ways of some of those could be improved. So decision makers would have better information. The other thing, though, is in many cases high-speed rail is quite expensive. So, for example, in the California high- speed rail situation, their proposal now is calling for a fairly large Federal investment, about $38 billion. So--and then also some private funds. So a real challenge in that area is getting the money to build these and then actually implement them and carry them forward. Mr. Horsford. Thank you, Mr. Chairman. Mr. DesJarlais. I thank the gentleman. The chair now recognizes the gentleman from North Carolina, Mr. Meadows, for 5 minutes. Mr. Meadows. Thank you, Mr. Chairman. And thank you for coming to share your perspective today. I want to take a little bit broader brush approach. As we start to look at this, you know, your report highlights some of the needs for a performance matrix, as you would put it. And so in what way can we look at departments and agencies providing information so that we as Congress can make a better decision in terms of tying that to the budget or appropriations? And what role do you see OMB playing in that, if any? Mr. Dodaro. Well, we have been advocating for a number of years a systematic approach, as you mention, to measuring performance against established goals in the Federal Government. There was legislation passed in 1993. The Modernization Act, and that was passed in 2010. And it is really important to your point, because agencies are supposed to consult with the Congress, establish goals and measures for all Federal programs and activities, and then to provide regular progress reports against those goals. So that process now is in its early stages of getting established. We have a role in evaluating whether or not the agencies are doing that. OMB has the responsibility for the lead in that area. And it is not only goals for individual agencies and departments, but it is cross-cutting goals in a number of areas as well where multiple agencies provide funding to support an overall government-wide goal. So there is an established mechanism to do it, but it has to be done properly and well. I am pleased to see that the law now requires more consultation with the Congress. And we are going to make sure that that actually is taking place. Mr. Meadows. How can you make sure that that takes place? Because, you know, we are in the land of promises here that says we are going to have this plan, and ultimately this is going to lead to a more effective and accountable government, and yet here we are without that. Mr. Dodaro. Right. Well, we are going to follow through on the facts and see what the agencies have to tell us exactly who they have consulted with. And the law requires them to not only say that, but what they have done with the advice that they have received from the Congress. Now, we are going to make sure that works. We are going to talk to Members of Congress and their staffs. And I would ask Chris Mihm, who is our expert in this area, if he wants to elaborate a little bit further. But we are doing work in that area. I am going to make sure it is done. Mr. Meadows. All right. Mr. Mihm. As the Comptroller General mentioned, sir, is that there are requirements, statutory requirements now that there are for more robust and continuing consultation on the part of agencies with the Congress and other key stakeholders. One of the things that we have also been making offers to do, working with committee staff here on this committee and over on the Senate side, is to work with Members of Congress to help them extract that information from agencies. That is to have the--not just have it be on the demand or a lot of the agencies to come up, but have Congress start saying, we are ready for the consultation; we want to start talking to you about where you are in your goals and your performance and your strategic goals. So we remain available to work with you and your office and your colleagues on those issues. Mr. Meadows. All right. And while you are still there, let's look at this. So let's talk about this performance matrix and as it comes back to maybe fragmentation, as was highlighted. So you have got 45 programs across nine different agencies, as you had in your testimony. How do you put together a performance matrix without people pointing the finger at this agency or that agency didn't meet our overall goal when we haven't consolidated under one head? Mr. Mihm. Well, the point that you are raising, sir, was exactly one of the two major reasons that Congress had in mind when they passed the Modernization Act. Mr. Meadows. Sure. Mr. Mihm. We had requirements for many years to do strategic planning and annual planning. That was all agency based. And what Congress is looking for with the Modernization Act is a more integrated and cross-cutting perspective. So it requires OMB on behalf of the President to have some government-wide crosscutting goals but also agencies in their goals to identify who else are--what other agencies are involved in the delivery of products and services that are related to the result that they are trying to achieve. One of the things that we have been doing, we will have a report coming out on this shortly, is taking a sample of the goals that the agencies have established and begin to start looking at those and seeing have they identified relevant partners that we had otherwise identified as part of our work on overlap and duplication or that the Inspectors General had identified, and then following up and saying, hey, you seem to have missed someone that is key to your success. Why is that? And how are you coordinating with them to make sure that we don't have the overlap and duplication that you are talking about? Mr. Dodaro. You are hitting on a very important point. And there really is no systematic way that this has been done in the past. And really this needs to work if we are going to deal with this in a timely way. Mr. Meadows. And so is that something that you take the lead on? Who takes the lead on that? Mr. Dodaro. OMB has the responsibility to implement the law. We have the responsibility to make sure that they are doing it effectively, providing oversight on behalf of the Congress. Mr. Meadows. Okay. Thank you very much. Yield back. Mr. DesJarlais. Thank the gentleman. The chair now recognizes the gentlelady from California, Ms. Speier. Ms. Speier. Mr. Chairman, thank you. And Mr. General, let me say that I, once again, am deeply grateful for the work that you and your staff does on behalf of the American people. Mr. Chairman, this really should be our Bible in this committee. We should take every section of this report and, in subcommittees and in full committees, go through it and save the taxpayers of this country money. By your own earlier testimony, you said there is tens of billions of dollars. Are you in a position to tell us how much would be saved by each of the recommendations that you have made? Mr. Dodaro. It would be hard to give you a precise estimate. But I mean, just for example, in the Medicare program alone, there are the latest estimates of $44 billion in improper payments. So driving that down will save money. We have made recommendations that this pilot program that they have in Medicare Advantage be canceled. That if timely action had been take there, that was $8.3 billion. Ms. Speier. So if we were to take action this year to cancel that program and just do the bonus payments, as you recommend, how much would we save? Mr. Dodaro. I believe--don't hold me to the estimate--but it is about between $2 billion and $3 billion. Ms. Speier. All right. There is $2 to $3 billion, Mr. Chairman, that if this committee gets serious about really taking the recommendations of the auditor general, we would be in a position to really say we are saving people money in this country. I also noted that under the health care area, you looked at self-referral. It continues to be a problem where physicians that own an interest in a high, advanced imaging center tend to refer more. And the figure was hundreds of millions of dollars, if I am not mistaken. Mr. Dodaro. Yeah. I don't have it off the top of my head. I can provide it for the record. But it was a significant amount of money and a high percentage. Ms. Speier. So do you ever get frustrated that you make all these recommendations, and years go by and nothing happens? Mr. Dodaro. Actually, believe it or not, 80 percent of our recommendations are implemented over a 4-year period of time. That has been pretty consistent over time. We keep coming up with new recommendations. For example, in the past, at FHA, we asked Congress to act to prohibit seller financed downpayment assistance. And that saved over $10 billion. Ms. Speier. All right. So there is some good news. Let me move onto another topic, the Department of Defense. The Air Force just canceled an ECSS contract that was already--that we had already spent a billion dollars on. And this is a contract that I have asked the committee to explore in kind of a postmortem to find out what went wrong. There was an inspector general report that recommended that they should cut it off. We didn't do it. At some point, we in Congress have to take responsibility for not acting. Now, there is another report, I believe, Computer Science Corporation is the primary contractor for ECSS project, has also been awarded a contract for another enterprise resource planning system called the LMP, just another acronym, but it is for a Logistics Modernization Program, and it is intended to streamline the Army's inventory of weapons systems. Having said that, the inspector general for auditing within DOD has recommended that they not spend any more additional money on top of the $1.1 billion already spent on the program back in 2009. So what did we do? We continued to spend money. It now is $4 billion over budget and 12 and a half years behind schedule. When do we stop and say, it is enough? When do we stop contracting with the same contractors that are over budget, that don't do the job and, you know, go back to square one? How would you address that issue? Mr. Dodaro. Well, first of all, in the rules, the contractor's past performance is supposed to be considered in making---- Ms. Speier. Well, obviously, not here. Mr. Dodaro. --funding decisions. Well, there are timing issues in terms of when the different contracts would have been let, who knew what where and, importantly, within the Department of Defense, who is sharing information across the department to ensure this doesn't happen. You know, in the past, we have looked at whether or not people who were on the debarred list were getting contracts. And we found that, in some cases, agencies didn't check that list before they went ahead and made procurement decisions. Contracting has been on our high-risk list for a long time. The procurement process doesn't always work effectively. And there are high dollar consequences to it. I would welcome congressional oversight and more attention to these areas, particularly in the Department of Defense, where we spend most of this contracting money. Ms. Speier. If we made a request of you to do a postmortem on the ECSS program, would you be able to do that? Mr. Dodaro. Yes. Ms. Speier. All right. Thank you. Mr. DesJarlais. I thank the gentlelady. And the chair will now recognize himself for 5 minutes for a line of questioning. Mr. Dodaro, I would like to focus a little bit on health care. Medicare and Medicaid are both perpetually on the high- risk list, Medicare for two decades, Medicaid for a decade. Together, they are responsible for over 58 percent of all government improper payments in fiscal year 2012. What recommendation does GAO make about improving their program integrity and stopping improper payments? Mr. Dodaro. Well, a number of recommendations we have made in almost every phase of their process. For example, enrolling providers, we need to keep bad actors out of the system initially. We have made recommendations that there be surety bonds put up by the providers before they are enrolled in the programs, and yet that hasn't taken place yet. We think that is important so that the Federal Government, if there is a problem, can get the money back. We have recommended that there be more analytical procedures in place, data analytics, to spot trends in fraud in the provider area up front. They have moved it forward on that area, but they haven't linked it to the payment system yet so that if they do find a potential problem they don't stop the payments until they sort through the problem. Then, once you get providers in, making the payments, doing a good review before you make the payments in the first place. This prevention and detection area before you make the payments really needs a lot more attention. So we have made a lot of suggestions there on how to improve the prepayment controls, that they are not standardizing the edits across the providers, the contractors who make the payments. Then there is, after the payments are made, making sure that there is post look at this area. We have made recommendations there. And then when we find that there is an improper payment that has been made, having recovery auditing go in and recoup the money back. So, at every level in the process, there is a need for reform. We have made many recommendations. I can provide the details for the records. But this is an area that we have a high degree of attention on and has a lot of potential payback. Mr. DesJarlais. As we should. That number is pretty alarming. Would you agree there is no future threat to the solvency of our country greater than health care? Mr. Dodaro. Health care is the primary driver of our projected deficits. Mr. DesJarlais. Okay. The Patient Protection Affordable Care Act establishes a requirement for Center of Medicare and Medicaid Services to improve the integrity. The high-risk list notes that CMS should implement some of the requirements under the Patient Protection and Affordable Care Act to improve this integrity. Why hasn't CMS done this? Mr. Dodaro. I could provide some answers for the record. It depends on which area you are talking about. The process over there, my opinion, takes longer than it needs to, to implement these changes. But I can provide more specifics. Mr. DesJarlais. Okay. I would appreciate that, considering the 20 years on the high-risk list. I think that we certainly need to target that. With the health care bill just really 8 months away, the implementation, the IRS has a large role in implementing the health care bill and the insurance exchanges, which should be in place in less than 8 months. What impact will the IRS's system modernization problems have on health care delivery in the United States? Mr. Dodaro. Let me ask Chris to come to the table to talk about that. Mr. DesJarlais. Because we had a hearing on this in the last Congress, and we know that the IRS was really frankly not ready for all that is going to be required of them. There is going to be incredible interaction between future patients and the IRS, lots of reporting that has to go on, whether you move, whether you have a child, whether there is a divorce, a death, et cetera. Constant communication is required. And I think we established the wait time for someone to call the IRS to be like 55 minutes. So can you comment on where we are going to be in 8 months? As a physician and someone who talks to a lot of physicians, we are not terribly optimistic that this is shovel ready. Mr. Mihm. There are a couple of issues that you are raising there of course, sir. One is just on the wait time. I mean, we have seen that of course during the filing season, that there was just the IRS just in this last year, it didn't come close to meeting its goals in terms of how many people were able to get through and, you know, did they get busy signals or dropped calls and all the rest. We have made some recommendations to them that just on the filing season aspect, that they--which has implications for what you are talking about. They need do a much better job in thinking in a broad, strategic sense across the various ways that they interact with the public, being walk-in centers, correspondence, telephone calls, information that individuals that they can get through the Web. And the Web is obviously, over the long term, the way to go. Mr. DesJarlais. Is it realistic to believe they can be even close to ready in 8 months? Mr. Mihm. What we have seen in, more specifically on the Affordable Care Act, we have done a number of engagements or a number of reports that have looked at where they are on that, in particular how their infrastructure, that is their governance infrastructure, and risk management is looking. I would agree with your point that they have some major risks that they are going to have to be able to manage in order to effectively deliver this. Because they have, obviously, the implementation, or their responsibilities for implementation of Affordable Care Act. They have a very difficult filing season that is, you know, ahead of them. They have other challenges that IRS faces. And so it is going to be quite a difficult challenge for them. It is something that we continue to monitor on behalf of the Congress. Mr. DesJarlais. And as you know, there are still challenges out there regarding Federal and State exchanges with the IRS in terms of that ruling. That has also been a subject of a hearing that we will revisit. I see my time has expired. Seeing no other Democratic witnesses, I will now yield 5 minutes to my good friend and colleague from Tennessee, Mr. Duncan. Mr. Duncan. Thank you very much, Mr. Chairman. And I don't have any questions, but I did want to say a couple things. First of all, I agree with the gentlewoman from California that this is a very important subject. And I hope the GAO stays on top of this and continues to issue these reports. And I appreciate your work, Mr. Dodaro, and that of your staff. And I agree with the gentleman from Pennsylvania, and I also have concern about the National Flood Insurance Program. Because I read recently that 15 of the largest insurance companies are making a real killing off of that program. I think that is something that we need to look into. But when I read the committee memo, it mentions as the biggest, of course, programs Medicare and Medicaid and the Department of Defense. And I was here earlier this morning for the discussion on the New York Medicaid program. And they said there were $15 billion in improper payments just in that one program, the New York Medicaid program, and that there was one contract paying a $5,000 daily rate for institutionalized people. I can tell you almost every Federal contract with every Federal department and agency has some sort of sweetheart insider-type deal. And I would bet that that contract certainly was. And we now spend, according to some of the information we were given this morning, $990 billion on the two programs, Medicare and Medicaid put together. That is more money than almost all other countries in the world spend total in their complete budgets put together. And these costs are just unbelievable. And when people say we can't cut Medicare and so forth, well, I don't want to cut any poor person out of the Medicare and Medicaid, but I will tell you this, there is a lot of people and companies getting ridiculously rich off of Medicare and Medicaid. And some of those payments need to be--and some of those contracts need to be looked into. And then the Department of Defense, all those defense contractors, they hire all the retired admirals and generals. And then they come back to the offices that they were in and they get contracts. And it seems to me that that is rampant in Medicare, Medicaid, the Department of Defense, and throughout the Federal Government that they hire Federal employees, who retire at fairly young ages on average, and then they go back and they get these contracts from the departments or agencies that they worked for. And it is crooked. It ought to be against the law. And I hope that in future reports, you will point to some things like that out too, Mr. Dodaro. Thank you very much, Mr. Chairman. Mr. DesJarlais. I thank the gentleman. And Mr. Dodaro, thank you very much for taking time out of your busy schedule today. I am sorry, I yield to the ranking member for a statement. Mr. Cummings. I just want to just as we close, again, I want to thank you and your staff for your excellent report. I want to say to Mr. Duncan, who just spoke, just what he said is just so important. You know, we talk about waste, fraud, and abuse, and sometimes I think we, you know, we kind of talk about it as if it is just a lightweight thing. But as Mr. Duncan pointed out, this is serious stuff. And when we talk about trying to figure out how we save money and all that, you know, I just want you--you all do a great job, but I want you to continue to try to show us how we can be more effective and efficient in rooting out some of this waste, fraud, and abuse, because it is real. I think we kind of just say it, and you know, and a lot of times we are not really digging deep to get to it. It may call for us highlighting just very bad actors. It may call for us making sure that things get referred to the proper authorities, like Justice or whatever. But we have got to get to this because if we have got the kind of money that he was talking about just going out the door and some folks getting rich, but at the same time, the money not going to the very folk that we intend it to go to, it just seems like, you know, maybe we need to zero in on, okay, now, how do we go from research to truly being effective and efficient in making that research bear some fruit? There is nothing I hate more than research that gets placed on a shelf, only to be dusted off and put in a microwave 5 years later or 10 years later and reissued, and the problem just keeps going on and on and on. So I just hope that--I know your staff is very focused, I know they want to make sure they do the right thing. And again, I just want you all do everything in your power to help us be even more effective and efficient even than we are. All right? Ms. Speier. Would the gentleman yield? Mr. Cummings. Of course. Ms. Speier. I just want to associate my remarks with those of yours and those of Mr. Duncan's. You know, there were very few members here today. This should be a mandatory meeting for every member of this committee. Because this particular report of high-risk problems in the U.S. Government should be something that every member of this committee is familiar with, and it should be the road map for much of the work that we do in our subcommittees. And I know you are serious about making some in-roads in terms of getting rid of the fraud and abuse. I know that the general is, and all the staff that works with him. We have got to work together to resolve this because otherwise, it is just all cheap talk. I yield back. Mr. Cummings. Well, I must say, and I give the credit--Mr. Chairman, as I just take 30 more seconds--to Chairman Issa this morning in our press conference. He recommitted to making sure that we do those things that we are talking about so that we could be more effective and efficient. And that is why I was just saying to you, Mr. Dodaro, if there are things that you can help us with so that we can--I know you have got your recommendations and whatever. But again, you know, you know what, you know, one of the things I worry about is that when I look back on my tenure as a Congressman, I don't want to look back with regret that I failed to do the things that I could have done to help my constituents. And so sometimes maybe we need help, maybe we need tools, maybe we need advice. And if you or your staff--maybe we need a new era of how to really take these reports and bring life to them. Because, you know, those wonderful people, great government servants sitting behind you, many of whom, probably all of whom could be making more money doing other things, but they come to government service to feed their souls, to feed their souls. And they come to make a difference. And I want them, in feeding their souls, to be effective, too. I don't want them to say, well, you know, we gave a report, and it got placed on the shelf and, you know, it never went anywhere. And so, at some time, at some point, then their morale goes down. And it is just logical. So again I want to thank you. You were about to say something, and then I am finished, Mr. Chairman. Thank you very much. Mr. Dodaro. I would just like to make a couple points in regard to your comments, Mr. Cummings, Congresswoman Speier. Number one is the high-risk program will remain a top priority for GAO as long as I am Comptroller General. My term goes to 2025. I made a commitment at my confirmation hearing that this would be a high priority. It will remain so. The second point, I would say one of the things that could be done that this committee could talk about is assigning some of the high-risk areas to either the subcommittees or individual members on the committee so that they can become well versed and deep in these issues, and we could work with them. That has been done in the past. And there was a high-risk caucus at one point in the Congress when we first started the programs, and it had some good effect. And they could put more pressure on the agencies or understand the issues deeper. So I would say do that. Third point and my last point is that you can do some things to help us. We are at our lowest staffing level since 1935. Now, obviously, the Federal Government is in a much different position now than it was in 1935. We need some help, not a lot. We returned $105 for every dollar spent on GAO this past year. We added more than $55 billion in documented financial benefits as a result of implementing our recommendations. Over the last decade, that comes to about a half a trillion dollars. So we think we are a good investment, but we need some help. And so we appreciate whatever this committee could do. So thank you very much. It has been a privilege to be here today. And you have our commitment that myself and all the dedicated and talented people at the GAO are at your disposal to make headway in making government more efficient and effective for the benefit of the American people. Mr. DesJarlais. I thank you for that. I thank the ranking member, and certainly thank Ms. Speier for her comment. And in the spirit of summarization, I will add for all those folks that are watching this hearing today, I agree this is an incredibly important issue. As we look at our out of control debt, deficit, and spending problems, we hear calls for revenue increases. And for American people watching this hearing and listening to the high-risk list and how long things have been on the high-risk list, I think they would be very discouraged, if not disgusted, that we are not doing better. And I think it would be a shame to ask the American people for another dime of revenue until we start to solve these problems. So, in that spirit, I am looking forward to working with my colleagues in addressing these important issues. So again, I will thank you for taking time out of your busy schedule, as well as your staff, to appear before us today. And the committee stands adjourned. 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