[House Hearing, 116 Congress]
[From the U.S. Government Publishing Office]
REVIEW OF SMITHSONIAN INSTITUTION CURRENT FACILITIES AND FUTURE SPACE
NEEDS
=======================================================================
(116-42)
HEARING
BEFORE THE
SUBCOMMITTEE ON
ECONOMIC DEVELOPMENT, PUBLIC BUILDINGS, AND EMERGENCY MANAGEMENT
OF THE
COMMITTEE ON
TRANSPORTATION AND INFRASTRUCTURE
HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTEENTH CONGRESS
FIRST SESSION
__________
NOVEMBER 13, 2019
__________
Printed for the use of the
Committee on Transportation and Infrastructure
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Available online at: https://www.govinfo.gov/committee/house-
transportation?path=/browsecommittee/chamber/house/committee/
transportation
______
U.S. GOVERNMENT PUBLISHING OFFICE
41-960 PDF WASHINGTON : 2020
COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
PETER A. DeFAZIO, Oregon, Chair
SAM GRAVES, Missouri ELEANOR HOLMES NORTON,
DON YOUNG, Alaska District of Columbia
ERIC A. ``RICK'' CRAWFORD, Arkansas EDDIE BERNICE JOHNSON, Texas
BOB GIBBS, Ohio RICK LARSEN, Washington
DANIEL WEBSTER, Florida GRACE F. NAPOLITANO, California
THOMAS MASSIE, Kentucky DANIEL LIPINSKI, Illinois
MARK MEADOWS, North Carolina STEVE COHEN, Tennessee
SCOTT PERRY, Pennsylvania ALBIO SIRES, New Jersey
RODNEY DAVIS, Illinois JOHN GARAMENDI, California
ROB WOODALL, Georgia HENRY C. ``HANK'' JOHNSON, Jr.,
JOHN KATKO, New York Georgia
BRIAN BABIN, Texas ANDRE CARSON, Indiana
GARRET GRAVES, Louisiana DINA TITUS, Nevada
DAVID ROUZER, North Carolina SEAN PATRICK MALONEY, New York
MIKE BOST, Illinois JARED HUFFMAN, California
RANDY K. WEBER, Sr., Texas JULIA BROWNLEY, California
DOUG LaMALFA, California FREDERICA S. WILSON, Florida
BRUCE WESTERMAN, Arkansas DONALD M. PAYNE, Jr., New Jersey
LLOYD SMUCKER, Pennsylvania ALAN S. LOWENTHAL, California
PAUL MITCHELL, Michigan MARK DeSAULNIER, California
BRIAN J. MAST, Florida STACEY E. PLASKETT, Virgin Islands
MIKE GALLAGHER, Wisconsin STEPHEN F. LYNCH, Massachusetts
GARY J. PALMER, Alabama SALUD O. CARBAJAL, California,
BRIAN K. FITZPATRICK, Pennsylvania Vice Chair
JENNIFFER GONZALEZ-COLON, ANTHONY G. BROWN, Maryland
Puerto Rico ADRIANO ESPAILLAT, New York
TROY BALDERSON, Ohio TOM MALINOWSKI, New Jersey
ROSS SPANO, Florida GREG STANTON, Arizona
PETE STAUBER, Minnesota DEBBIE MUCARSEL-POWELL, Florida
CAROL D. MILLER, West Virginia LIZZIE FLETCHER, Texas
GREG PENCE, Indiana COLIN Z. ALLRED, Texas
SHARICE DAVIDS, Kansas
ABBY FINKENAUER, Iowa
JESUS G. ``CHUY'' GARCIA, Illinois
ANTONIO DELGADO, New York
CHRIS PAPPAS, New Hampshire
ANGIE CRAIG, Minnesota
HARLEY ROUDA, California
Vacancy
------ 7
Subcommittee on Economic Development, Public Buildings, and Emergency
Management
DINA TITUS, Nevada, Chair
MARK MEADOWS, North Carolina DEBBIE MUCARSEL-POWELL, Florida
GARY J. PALMER, Alabama SHARICE DAVIDS, Kansas
JENNIFFER GONZALEZ-COLON, ELEANOR HOLMES NORTON,
Puerto Rico District of Columbia
CAROL D. MILLER, West Virginia HENRY C. ``HANK'' JOHNSON, Jr.,
GREG PENCE, Indiana Georgia
SAM GRAVES, Missouri (Ex Officio) JOHN GARAMENDI, California
ANTHONY G. BROWN, Maryland
LIZZIE FLETCHER, Texas, Vice Chair
PETER A. DeFAZIO, Oregon (Ex
Officio)
CONTENTS
Page
Summary of Subject Matter........................................ iv
STATEMENTS OF MEMBERS OF THE COMMITTEE
Hon. Dina Titus, a Representative in Congress from the State of
Nevada, and Chairwoman, Subcommittee on Economic Development,
Public Buildings, and Emergency Management:
Opening statement............................................ 1
Prepared statement........................................... 2
Hon. Gary J. Palmer, a Representative in Congress from the State
of Alabama:
Opening statement............................................ 3
Prepared statement........................................... 4
Hon. Peter A. DeFazio, a Representative in Congress from the
State of Oregon, and Chair, Committee on Transportation and
Infrastructure:
Opening statement............................................ 5
Prepared statement........................................... 6
WITNESS
Lonnie G. Bunch III, Secretary, The Smithsonian Institution:
Oral statement............................................... 7
Prepared statement........................................... 9
APPENDIX
Questions to Lonnie G. Bunch III, Secretary, The Smithsonian
Institution, from:
Hon. Peter A. DeFazio........................................ 25
Hon. Mark Meadows............................................ 26
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
November 8, 2019
SUMMARY OF SUBJECT MATTER
TO: LMembers, Subcommittee on Economic Development,
Public Buildings, and Emergency Management
FROM: LStaff, Subcommittee on Economic Development, Public
Buildings, and Emergency Management
RE: LHearing on ``Review of Smithsonian Institution
Current Facilities and Future Space Needs''
_______________________________________________________________________
PURPOSE
The Subcommittee on Economic Development, Public Buildings,
and Emergency Management will meet on Wednesday, November 13,
2019, at 2:00 p.m. in 2167 Rayburn House Office Building to
hold a hearing titled, ``Review of Smithsonian Institution
Current Facilities and Future Space Needs.'' At the hearing,
Members will receive testimony from the Secretary of the
Smithsonian Institution.
BACKGROUND
THE SMITHSONIAN INSTITUTION:
The Smithsonian Institution is the world's largest museum
and research complex, with 19 museums and galleries, numerous
research centers, libraries, archives, and the National
Zoological Park. Created by an Act of Congress in 1846 to carry
out the trust included in James Smithson's will, it has been
engaged for 172 years in the ``increase and diffusion of
knowledge.'' \1\ The Smithsonian Institution is a unique
instrumentality of the Federal government, as it is funded by
both Federal and private sources and employs Federal and non-
federal (or ``trust'') staff.
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\1\ https://www.si.edu/about/mission.
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The Smithsonian is the steward of over 155 million objects
in the national collection, reflecting the cultural, artistic,
and scientific heritage of the United States. Last year, the
Smithsonian attracted over 28 million visitors to its museums,
galleries, and zoological park.\2\ According to the
Smithsonian, the Institution owns and leases 680 separate
buildings, comprising approximately 13.8 million square feet of
space.
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\2\ https://www.si.edu/about.
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The Smithsonian is governed by a Board of Regents,
consisting of the Chief Justice of the U.S. Supreme Court, the
Vice President, six members of Congress, and nine private
citizens. In June 2019, the Smithsonian's Board of Regents
voted to move its headquarters from the historic Smithsonian
Castle in Washington, D.C. to a 632,000 square foot property
located at 600 Maryland Avenue, Southwest.\3\
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\3\ https://www.bisnow.com/washington-dc/news/office/smithsonian-
to-acquire-southwest-dc-building-for-new-headquarters-99402.
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Deferred maintenance of the Smithsonian's highly-populated
facilities, particularly its museums, has been an ongoing
challenge. On September 18, 2019, Smithsonian Secretary Lonnie
Bunch III and Inspector General Cathy Helm testified before the
Committee on House Administration and spoke at length about the
Smithsonian's $937 million maintenance backlog.\4\ A 2016
Inspector General report that found the institution has not
reduced the backlog because it is spending less than
recommended on maintenance.\5\ According to Inspector General
Helm's testimony at the September 18, 2019, hearing, the
Smithsonian has been spending around 1% on maintenance
annually, below the 2-4% range recommended for maintenance by
the National Research Council.\6\
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\4\ Oversight of the Smithsonian Institution, Hearing before the
Committee on House Administration, 116th Congress, September 18, 2019.
\5\ Smithsonian Institution Office of the Inspector General,
Semiannual Report to the Congress, March 31, 2016.
\6\ See supra note 4.
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SMITHSONIAN FUNDING:
A significant portion of the Smithsonian's operations are
funded by annual congressional appropriations. Federal
appropriations are also provided for the construction or repair
and restoration of its facilities. The table below summarizes
the Federal appropriations for FY2017-FY2020.\7\
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\7\ See Smithsonian Institution FY 2020 Budget Justification to
Congress, pg. 7, March 2019; see also Smithsonian Institution FY 2019
Budget Justification to Congress, pg. 7, February 2018.
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Account FY2017 Enacted FY2018 Enacted FY2019 Enacted FY2020 Request
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Salaries and Expenses........... $729,444,000 $731,444,000 $739,994,000 $759,345,000
Facilities Capital.............. $133,903,000 $311,903,000 $303,503,000 $219,000,000
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Total......................... $863,347,000 $1,043,347,000 $1,043,497,000 $978,345,000
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For FY2019, Congress appropriated $303.5 million for
Smithsonian facilities.\8\ For FY2020, the House Committee on
Appropriations recommended $219 million for the Facilities
Capital account, $84.5 million below the enacted level of the
previous year.\9\ This is the same amount requested in
Smithsonian's FY2020 budget request.\10\ A significant portion
of this proposed funding would be for the multi-year, multi-
phase renovation of the National Air and Space Museum (NASM).
In the conference report for the FY2019 continuing
appropriations resolution, conferees expressed support for the
Smithsonian's Latino and Women's History initiatives and urged
an expanded presence of these initiatives at the
Smithsonian.\11\ This support was also expressed in the
explanatory statements for the FY 2017 \12\ and FY2018 \13\
Consolidated Appropriations Acts.
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\8\ P.L. 116-6.
\9\ H. Rept. 116-100.
\10\ See supra note 7.
\11\ H. Rept. 116-9, pg. 754-755, February 13, 2019.
\12\ P.L. 115-31, pg. 1137-1138, 2018.
\13\ P.L. 115-141, Division G, pg. 1188, 2018.
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In addition to support provided by Federal appropriations,
the Smithsonian Institution has access to a trust fund which
currently has a market value of $1.6 billion, according to the
Smithsonian's estimation.\14\ Trust funds are used to leverage
the Smithsonian's research capacity through partnerships with
federal agencies, universities, non-Governmental organizations,
industry, and other private organizations, both national and
international. Trust funds are also used to renovate and
modernize exhibits throughout the Institution.
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\14\ Smithsonian FY2020 Budget Review Presentation, March 2019.
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The Institution's trust funds are comprised of 1) general
trust funds with limited or no restrictions on their use, 2)
funds restricted by the donor or sponsor, and 3) Government
grants and contracts. General trust funds are generated from
investment income; payout from unrestricted endowments; net
proceeds from museum shops, catalogues, and food service
concessions; sales of Smithsonian books, records, and other
products based on designs and objects in the collections;
theater/planetarium operations at the NASM; licensing fees from
the Smithsonian Channel and student travel programs; rental of
exhibitions of the Smithsonian Institution Traveling Exhibition
Service; membership programs (including subscriptions to
Smithsonian and Air and Space magazines); the sale of posters,
exhibition brochures, catalogues, and other publications; and
admission fees.\15\ The table below summarizes the sources of
trust operating funds.\16\
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\15\ See supra note 7 at pg. 235.
\16\ Id.
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Fund FY2017 Actuals FY2018 Estimates FY2019 Estimates
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General............................................. $97,900,000 $89,500,000 $76,100,000
Donor/Sponsor-Designated............................ $247,700,000 $247,300,000 $263,700,000
Government Grants and Contracts..................... $113,700,900 $117,500,000 $116,900,000
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Total Available for Operations.................... $459,300,000 $454,300,000 $456,700,000
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ACQUISITION AUTHORITY:
The Smithsonian Institution's authority to acquire property
is generally vested in its Board of Regents through statutory
language on individual facilities. For example, the
Smithsonian's Board of Regents is authorized to ``invest in,
reinvest in, or purchase any property for the benefit of the
National Portrait Gallery.'' \17\ The John F. Kennedy Center
for the Performing Arts is a bureau of the Smithsonian
Institution. Consequently, the Smithsonian's Board of Regents
is authorized ``to sell or exchange and to invest or reinvest
in such investments as it may determine from time to time the
moneys, securities, or other property composing trust funds
given, bequeathed, or devised to or for the benefit'' of the
Kennedy Center.\18\
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\17\ 20 U.S.C. 75(d).
\18\ 20 U.S.C. 76(k).
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LEASING AUTHORITY:
The Smithsonian Institution is one of 25 Federal agencies
that asserts it has its own leasing authority. The Smithsonian
is not required to submit real property data to the Federal
Real Property Council (FRPC) \19\ or comply with OMB's freeze
the footprint directives. According to the Smithsonian, the
Institution currently holds approximately 40 leases totaling
1.4 million square feet. This includes facilities for
collection storage, general storage, office space, museum and
specialty buildings, research buildings and laboratories, and
retail facilities.\20\ The annualized base rent for these
leases totals $45,138,771, with $11,963,210 in additional
costs.\21\
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\19\ Independent Leasing Authorities: Increasing Oversight and
Reducing Costs of Space Leased by Federal Agencies; Hearing before the
Subcommittee on Economic Development, Public Buildings, And Emergency
Management; July 16, 2016.
\20\ Smithsonian Institution Leased Space Presentation, pg. 3,
April 2019.
\21\ Id.
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The Smithsonian's authorization to lease space has been
included in annual appropriations bills, including:
LPub. L. No. 116-6, 133 Stat. 253-54:
LFor necessary expenses of the Smithsonian
Institution, as authorized by law, including research in the
fields of art, science, and history; development, preservation,
and documentation of the National Collections; presentation of
public exhibits and performances; collection, preparation,
dissemination, and exchange of information and publications;
conduct of education, training, and museum assistance programs;
maintenance, alteration, operation, lease agreements of no more
than 30 years, and protection of buildings, facilities, and
approaches;
LPub. L. No. 115-31, 131 Stat. 489:
LFor necessary expenses of the Smithsonian
Institution, as authorized by law, including research in the
fields of art, science, and history; development, preservation,
and documentation of the National Collections; presentation of
public exhibits and performances; collection, preparation,
dissemination, and exchange of information and publications;
conduct of education, training, and museum assistance programs;
maintenance, alteration, operation, lease agreements of no more
than 30 years, and protection of buildings, facilities, and
approaches;
LPub. L. No. 114-113, 129 Stat. 2570:
LFor necessary expenses of the Smithsonian
Institution, as authorized by law, including research in the
fields of art, science, and history; development, preservation,
and documentation of the National Collections; presentation of
public exhibits and performances; collection, preparation,
dissemination, and exchange of information and publications;
conduct of education, training, and museum assistance programs;
maintenance, alteration, operation, lease agreements of no more
than 30 years, and protection of buildings, facilities, and
approaches;
LPub. L. No. 113-235, 128 Stat. 2439:
LFor necessary expenses of the Smithsonian
Institution, as authorized by law, including research in the
fields of art, science, and history; development, preservation,
and documentation of the National Collections; presentation of
public exhibits and performances; collection, preparation,
dissemination, and exchange of information and publications;
conduct of education, training, and museum assistance programs;
maintenance, alteration, operation, lease agreements of no more
than 30 years, and protection of buildings, facilities, and
approaches;
According to the Smithsonian Institution, the following
statute confers some real estate independence from the General
Services Administration (GSA):
All functions with respect to the operation, maintenance, and
custody of office buildings owned by the Government and of
office buildings or parts thereof acquired by lease, including
those post-office buildings which, as determined by the
Director of the Bureau of the Budget, are not used
predominantly for post-office purposes, are hereby transferred
from the respective agencies in which now vested to the
Administrator of General Services, exclusive, however, of all
such functions with respect to (a) any building located in any
foreign country; (b) any building located on the grounds of any
fort, camp, post, arsenal, navy yard, naval training station,
air field, proving ground, military supply depot, or school, or
of any similar facility, of the Department of Defense, unless
and to such extent as a permit for its use by another agency or
agencies shall have been issued by the Secretary of Defense or
his duly authorized representative; (c) any building which the
Administrator of General Services finds to be a part of a group
of buildings which are (1) located in the same vicinity, (2)
are utilized wholly or predominantly for the special purposes
of the agency having custody thereof, and (3) are not generally
suitable for the use of other agencies; and (d) the Treasury
Building, the Bureau of Engraving and Printing Building, the
buildings occupied by the National Bureau of Standards, and the
buildings under the jurisdiction of the regents of the
Smithsonian Institution.\22\
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\22\ 40 U.S.C. 301, Sec. 2 Transfer of Office Building Management
Functions
In 2016, the Subcommittee held a hearing titled
``Independent Leasing Authorities: Increasing Oversight and
Reducing Costs of Space Leased by Federal Agencies.'' \23\ The
hearing examined a GAO study of how agencies independent of GSA
were exercising that independent leasing authority, i.e. were
they getting good deals for the taxpayer by reducing their
costs and space footprint and were they acting within their
legal authority.
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\23\ See supra note 19.
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The GAO witness reported that ``a high percentage of the
entities' lease files lacked evidence for analyzing and
documenting the budget effects of the lease. This is important
because Federal entities must comply with the recording statute
requires Federal agencies to record the full amount of their
contractual liabilities, including leases, against funds
available when the contract is executed. Violations of the
recording statute can also result in Anti-Deficiency Act
violations if lease obligations exceed available budget
authority for the value of the entire lease term at the time
the lease is executed.'' \24\
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\24\ Id. at pg. 5.
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Regarding space utilization rates, the GAO witness said
``all of the eight entities we reviewed leased more office
space per employee than GSA's recommended target of 150 square
feet per employee. Twenty-eight of the thirty selected office
leases we analyzed exceeded the GSA recommended target on
average by a factor of two. Many of these leases had vacant
office spaces, which can inflate the per person space
allocation.'' \25\
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\25\ Id.
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Congressman Barletta said the following: ``I understand the
Smithsonian is currently reviewing its leasing authority. As
Chairman of the subcommittee, it seems the answer should be a
simple one: work with GSA to meet your leasing needs. When do
you expect to have a decision on how the Smithsonian plans to
proceed with its leases?'' To which the Smithsonian witness
replied: ``Let me back up and just say that as we have entered
into leases, we have done so in good faith, and we think we
have very good grounds for doing so. The issue was raised in
the last few months about whether we had the budget authority
to do so or not, and there was some lack of clarity. We are
working with OMB right now in addressing those issues, and we
will keep the committee apprised of our results there.'' \26\
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\26\ Id. at pg. 12-13
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The Smithsonian's Board of Regents vets and approve all
leases by the Smithsonian with a net present value of $5
million or more.\27\
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\27\ Id. at pg. 10.
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CURRENT MAJOR INFRASTRUCTURE PROJECTS:
In 2016, the Smithsonian unveiled a new master plan for the
South Mall campus. The plan includes renovations to the Castle
and Arts and Industries Building, new Mall-facing entrances to
the National Museum of African Art and the Arthur M. Sackler
Gallery, improved visibility and access from the Freer Gallery
of Art to the Hirshhorn Museum and Sculpture Garden.\28\
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\28\ Smithsonian Outlook, Projects and Planning Update, Fall 2019.
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The National Air and Space Museum is currently under
renovation--the first major overhaul of the facility since it
opened in 1976.\29\ The renovation will address the building
envelope and terraces, improve energy efficiency, upgrade the
structure's blast and seismic resistance, modernize the
building's mechanical engineering and plumbing systems, and
improve functionality of spaces affected by the systems
renewal. Phasing plans have approximately half of the museum
under renovation while the remaining half will remain open to
visitors. To safeguard artifacts during construction, most have
been moved to a new collection's storage facility at the
museum's Steven F. Udvar-Hazy Center in Chantilly, VA. Funding
for the renovation consists of $650 million in Federal
appropriations for building revitalization and $250 million in
trust funds for new exhibits.\30\ The project is expected to be
completed in 2024.\31\
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\29\ Smithsonian Press Release, Major Renovation Underway at
National Air and Space Museum, January 30, 2019.
\30\ See supra note 28 at pg. 2.
\31\ Id.
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Increased collections storage capacity has been a priority
for the Smithsonian in recent years. The Smithsonian is
currently crafting the Suitland Collections Center Master Plan,
which will assess collections space needs across the
Smithsonian for the next 40 years. This plan will facilitate
reductions to leased space, collections growth, relief of
overcrowding, and relocation of collections from deficient or
vulnerable locations. The plan will be submitted for review by
the National Capital Planning Commission during FY2020.\32\ The
Smithsonian is also in the design stage for the final phase of
the Suitland Museum Support Center building, Pod 6, which is
expected to be completed in 2025.\33\
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\32\ Id. at pg. 6.
\33\ Id. at pg. 4.
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NEW MUSEUM BILLS:
Two bills have been referred to the Subcommittee on
Economic Development, Public Buildings, and Emergency
Management during the 116th Congress to establish new museums
at the Smithsonian: H.R. 1980 and H.R. 2420.
H.R. 1980, the Smithsonian Women's History Museum Act,
authorizes the Smithsonian Institution to plan, construct, and
operate a museum dedicated to women's history. The bill
currently has 293 cosponsors. The bill establishes a 50-50 cost
share between the Federal government and non-Federal sources.
The Congressional Budget Office (CBO) estimates that
implementing H.R. 1980 would cost $190 million over the next
decade: $83 million for construction and $107 million for
staffing, planning, creating exhibits and educational programs,
and operating the museum.\34\
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\34\ Congressional Budget Office, Cost Estimate for H.R. 1980,
October 7, 2019. Available here: https://www.cbo.gov/publication/55701.
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H.R. 2420, the National Museum of the American Latino Act,
establishes the National Museum of the American Latino in the
Smithsonian Institution to (1) illuminate Latino contributions
to the story of the United States; (2) provide for the
collection, study, research, publication, and establishment of
exhibitions and programs related to Latino life, art, history,
and culture; and (3) provide for collaboration with Smithsonian
Institution museums and research centers and other museums and
educational institutions in the United States and abroad. The
bill establishes a Board of Trustees for the museum to make
recommendations to the Board of Regents concerning the
location, planning, design, and construction of the Museum. The
bill establishes a 50-50 cost share between the Federal
government and non-Federal sources.
SMITHSONIAN AND SUSTAINABLE CONSTRUCTION:
Smithsonian facilities design standards require the
integration of sustainability and energy efficiency in the
design, construction, operations and maintenance of all
Smithsonian building projects.\35\ Effective strategies
implemented at the Smithsonian include decreased consumption of
electricity, steam, and natural gas; decreased petroleum use in
vehicles and equipment; and green power purchasing.\36\ The
National Museum of African American History and Culture
(NMAAHC) was awarded a Gold certification by the U.S. Green
Building Council's Leadership in Energy and Environmental
Design (LEED) program.
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\35\ Smithsonian Institution Facilities Design Standards, Section
IV, January 2012.
\36\ Smithsonian Institution, Roadmap for the Development of a
Climate Change Adaptation Plan, pg. 3, September 2013.
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Smithsonian staff have assessed the vulnerability of its
major facilities in D.C., Maryland, New York, and Florida to
the impacts of flooding and sea level rise as a part of the
Institution's ongoing climate change adaptation planning. This
enables the Smithsonian to prioritize projects and incorporate
resilience principles into is master plans and projects. This
work has informed master plans for the National Museum of
American History and the National Museum of the American Indian
and led to the decision to relocate the rare book collection at
the National Air and Space Museum to the less vulnerable Udvar-
Hazy Center in Chantilly, VA.\37\
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\37\ See supra note 28 at pg. 7.
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Since the 102nd Congress, the following construction and
space acquisition authorization bills related to the
Smithsonian Institution were referred to the Committee on
Transportation and Infrastructure:
115TH CONGRESS (2017-2018):
LH.R.4009--Smithsonian National Zoological Park
Central Parking Facility Authorization Act. Became Public Law
No.: 115-178.
114TH CONGRESS (2015-2016):
LH.R.3702--Smithsonian Collections Space
Authorization Act
111TH CONGRESS (2009-2010):
LH.R.5717--Smithsonian Conservation Biology
Institute Enhancement Act: H. Rept. 111-612, Part 1; H. Rept.
111-612, Part 2
LH.R.608--Smithsonian Institution Facilities
Authorization Act of 2009. H. Rept. 111-53
LH.R.3224--To authorize the Board of Regents of
the Smithsonian Institution to plan, design, and construct a
vehicle maintenance building at the vehicle maintenance branch
of the Smithsonian Institution located in Suitland, Maryland,
and for other purposes. H. Rept. 111-276, Part 1; H. Rept. 111-
276, Part 2
110TH CONGRESS (2007-2008):
LH.R.6541--To authorize the Board of Regents of
the Smithsonian Institution to plan, design, and construct
laboratory space to accommodate the Smithsonian Tropical
Research Institute's terrestrial research program in Gamboa,
Panama
LH.R.6542--To authorize the Board of Regents of
the Smithsonian Institution to plan, design, and construct
laboratory and support space to accommodate the Mathias
Laboratory at the Smithsonian Environmental Research Center in
Edgewater, Maryland.
LH.R.6627--Smithsonian Institution Facilities
Authorization Act of 2008 H. Rept. 110-842, Part 1; H. Rept.
110-842, Part 2
LH.R.5492--To authorize the Board of Regents of
the Smithsonian Institution to construct a greenhouse facility
at its museum support facility in Suitland, Maryland, and for
other purposes. H. Rept. 110-545
108TH CONGRESS (2003-2004):
LH.R.2195--Smithsonian Facilities Authorization
Act. Became Public Law No.: 108-72.
LH.R.5105--To authorize the Board of Regents of
the Smithsonian Institution to carry out construction and
related activities in support of the collaborative Very
Energetic Radiation Imaging Telescope Array System (VERITAS)
project on Kitt Peak near Tucson, Arizona. Became Public Law
No.: 108-331.
106TH CONGRESS (1999-2000):
LH.R.4729--To authorize the Board of Regents of
the Smithsonian Institution to plan, design, construct, and
equip laboratory, administrative, and support space to house
base operations for the Smithsonian Astrophysical Observatory
Submillimeter Array located on Mauna Kea at Hilo, Hawaii.
104TH CONGRESS (1995-1996):
LH.R.3933--To authorize construction of the
Smithsonian Institution National Air and Space Museum Dulles
Center at Washington Dulles International Airport, and for
other purposes
103RD CONGRESS (1993-1994):
LH.R.848--To continue the authorization of
appropriations for the East Court of the National Museum of
Natural History.
LH.R.855--District of Columbia Land Use
Notification Act of 1993.
LH.R.2677--To authorize the Board of Regents of
the Smithsonian Institution to plan, design, and construct the
West Court of the National Museum of Natural History building.
H.Rept 103-231 Part 1; Became Public Law No.: 103-151.
102ND CONGRESS (1991-1992):
LH.R.2757--To authorize the Board of Regents of
the Smithsonian Institution to acquire land for watershed
protection at the Smithsonian Environmental Research Center,
and for other purposes.: H.Rept 102-456 Part 1, H. Rept.102-
456, Part I.
LH.R.2758--To authorize the Board of Regents of
the Smithsonian Institution to acquire an administrative
service center, and for other purposes. Ordered to be Reported.
WITNESS LIST
LMr. Lonnie G. Bunch III, Secretary, The Smithsonian
Institution
REVIEW OF SMITHSONIAN INSTITUTION CURRENT FACILITIES AND FUTURE SPACE
NEEDS
----------
WEDNESDAY, NOVEMBER 13, 2019
House of Representatives,
Subcommittee on Economic Development, Public
Buildings, and Emergency Management,
Committee on Transportation and Infrastructure,
Washington, DC.
The subcommittee met, pursuant to notice, at 2:04 p.m. in
room 2167, Rayburn House Office Building, Hon. Dina Titus
(Chairwoman of the subcommittee) presiding.
Ms. Titus. The subcommittee will come to order. I ask
unanimous consent that the chair be authorized to declare
recesses during today's hearing.
Without objection, so ordered.
I also ask unanimous consent that Members not on the
subcommittee be permitted to sit with the subcommittee at
today's hearing, and ask questions.
Without objection, so ordered.
First let me just say how pleased we are to have you here,
Secretary Bunch. It is a delight for us. We want to
congratulate you on this new position. As I said earlier at
your reception, we first met when you were at UNLV doing a
symposium there, and they send you greetings and
congratulations. So thank you for joining us.
As we all know, the Smithsonian is really a crown jewel for
our Government. It is the world's largest research, education,
and museum complex in all the world, 21 museums and galleries
which attracted more than 28 million visitors just last year
alone.
In addition, the Smithsonian Affiliations program connects
this Washington-based institution to nearly every State in the
country--it is not just limited to here, it is everywhere--as
well as Puerto Rico. And I know you have many research programs
around the world, as well.
My district in Las Vegas, for instance, is home to the
Smithsonian-affiliated National Atomic Testing Museum, which
tells the story of our nuclear weapons testing program at the
test site, its contributions to national defense, and also the
impacts, both good and bad, that the testing had on the region
and the people involved there, and also those who lived
downwind.
So thank you very much for bringing the show-and-tell
articles from the museum to share with us.
All of these collections are just critical to telling our
Nation's story, educating current and future generations. What
child doesn't want to go to see the Air and Space Museum? What
historian doesn't want to visit the East Wing, or other parts
of the museum here? You have an incredible treasure.
And we, although you deal with appropriators, are really
the committee that is responsible for overseeing all the public
buildings, including the facilities of the Smithsonian. And so
it is important that we carry out that oversight, and American
taxpayers know that they are really getting their money's worth
if they can't come and see it for themselves.
So today's hearing will examine the Smithsonian's current
real estate portfolio, as well as expansion, renovation, and
acquisition plans, the maintenance backlog, the purchase of a
new headquarters building, and the Smithsonian Institution's
building naming policy.
I would point out here how much we appreciate the fact that
you have a commitment to sustainability, and that the new
National Museum of African American History and Culture has met
the LEED gold standard. And so we want to encourage that to
continue.
We are delighted that you are here.
Another thing I want you to talk about, if you will, Mr.
Secretary--I am a cosponsor of the Smithsonian Women's History
Museum bill, which passed out of committee last night, and also
the National Museum of the American Latino Act. So, if you
could, address kind of where those might be going, or what we
can do to help to promote those, and tell us how you are
growing those endeavors.
I am relatively new to this chairmanship, but over the last
year or so I have noticed that there is a real disconnect
between the Smithsonian and our committee. I believe the last
Smithsonian oversight hearing that we held was in 2007. We
don't want that to be the case, going forward. I feel a real
affinity for this institution, and want us to work together to
develop more of a relationship, and more of a collaboration.
We know that the Smithsonian is looking at appropriations,
but we don't want that to just be the authorizing process
without coming to us. We want transparency in real estate
acquisitions. You get 70 percent of your budget from Congress,
so you have to let us know what is going on, even though you
have your own Board of Regents.
You have a great story to tell to the American people, and
to visitors from around the world. We thank you for that, and
we want to be part of helping you tell that story. So I look
forward to our discussion today.
[Ms. Titus' prepared statement follows:]
Prepared Statement of Hon. Dina Titus, a Representative in Congress
from the State of Nevada, and Chairwoman, Subcommittee on Economic
Development, Public Buildings, and Emergency Management
The Smithsonian Institution is the world's largest research,
education, and museum complex in the world.
The twenty-one museums and galleries attracted more than 28.5
million visitors last year.
In addition, the Smithsonian Affiliates program connects this
Washington-based institution to nearly every state in the Union as well
as Puerto Rico.
My district in Las Vegas, for instance, is home to the Smithsonian-
affiliated National Atomic Testing Museum, which tells the story of
America's nuclear weapons testing program at the Nevada Test Site, its
contributions to our national defense, but also the impacts, good and
bad, that this testing has had on our region and in downwind
communities across the West.
These collections are critical to telling our nation's story and
educating current and future generations.
As the Committee with the responsibility of overseeing public
buildings, including the facilities of the Smithsonian, it is important
to the American taxpayer that we conduct rigorous oversight and ensure
that taxpayer resources are being utilized appropriately.
Today's hearing will examine the Smithsonian Institution's current
real estate portfolio as well as expansion, renovation, and acquisition
plans; the maintenance budget and backlog; the purchase of a new
headquarters building, and the Smithsonian Institution's building
naming policies.
I would like to welcome today's witness--the Smithsonian
Institution's recently appointed 14th Secretary--Mr. Lonnie Bunch III.
Secretary Bunch, congratulations on your stewardship of the
successful effort to establish the National Museum of African American
History and Culture and on your appointment to lead the Smithsonian
Institution.
Secretary Bunch, as a cosponsor of H.R. 1980, the Smithsonian
Women's History Museum Act and H.R. 2420, National Museum of the
American Latino Act, I am interested to hear your thoughts on the
future expansion of the Smithsonian Museum family as support for these
two endeavors continues to grow.
Secretary Bunch, I am relatively new to this Chairmanship, but over
the course of the last year I have observed a disconnect between the
Smithsonian Institution and its authorizers.
The Smithsonian seems to work closely with its appropriators while
keeping the authorizers minimally informed and at arm's length.
Given the fact that this Subcommittee has not held a Smithsonian
oversight hearing since 2007, perhaps that distance is understandable.
But I can assure you, that will not be the case moving forward.
The Smithsonian must do a better job of collaborating with its
Congressional authorizers.
No more securing authorization via the appropriations bills.
No more major real estate acquisitions without transparency.
When contemplating major transactions, the Smithsonian should
inform Congress at the outset and utilize expertise from other relevant
federal agencies.
The Smithsonian cannot take 70 percent of its annual budget from
Congress and then claim that the Trust structure makes the Smithsonian
completely independent of Congressional oversight.
Again, you have a great story to tell and to share with the
American people and with visitors from around the world and I thank you
for being here today as we examine these important issues.
I look forward to a fruitful discussion.
Ms. Titus. And I will now recognize the ranking member, Mr.
Palmer.
Mr. Palmer. Thank you, Chairwoman Titus. I want to welcome
Secretary Bunch, the 14th Secretary of the Smithsonian
Institution, and congratulate him on his appointment. I was
talking with him earlier, that the last time I saw him was when
he gave remarks on the 50th anniversary of the death of Dr.
Martin Luther King, Jr.
You were both eloquent and inspiring.
Secretary Bunch brings a significant amount of experience
and knowledge to the position. As Director of the National
Museum of African American History and Culture, he oversaw the
development and opening of this project.
Secretary Bunch, bringing your experience and background to
bear on museums, research, and programs across the Smithsonian
will be critical.
With that said, the committee's jurisdiction focuses on the
Smithsonian's buildings and grounds. The Smithsonian has 19
museums, 9 research centers, 3 cultural centers, and the
National Zoo, and owns or leases nearly 14 million square feet
of space and nearly 29,000 acres of land.
While the Smithsonian raises funds on its trust side, a
majority of the Smithsonian's budget is funded by the taxpayer
through appropriations. The Smithsonian's buildings,
acquisition and space management practice have a significant
impact on cost, accessibility to the public, and the artifacts
that the Smithsonian is trusted with. With the proposed
purchase of one-half million square feet of space for a
headquarters building, and the $650 million renovation of the
Air and Space Museum, we need to ensure these projects make
sense and are appropriately managed.
We owe the taxpayer full transparency regarding how their
dollars are being spent, and why. That is why our oversight is
critical, and why it is important for this committee to receive
timely and accurate information. It is critical that, where the
Smithsonian requires authorization for projects and activities,
such a need should be communicated to your authorizing
committees.
In 2016, for example, the Smithsonian promised this
subcommittee during a hearing that we would be kept fully up to
date on its plans for its leased administrative office space,
yet the committee received few details on the plans for a new
headquarters building until years later. We still have
questions on this acquisition, and whether the proposed
arrangement, a condo-style purchase, makes sense.
We know your deferred maintenance is significant. We also
recognize the challenge with balancing budget constraints with
the need to invest in maintenance to avoid more costly repairs
in the future. But if we can find ways to better utilize the
trust side to address this issue, we can leverage private
dollars to potentially help meet these needs.
Secretary Bunch, I know these issues predate your
appointment. That said, we look forward to working to improve
transparency and communication, and working together to find
innovative ways to help you manage the space you need to carry
out your mission.
[Mr. Palmer's prepared statement follows:]
Prepared Statement of Hon. Gary J. Palmer, a Representative in Congress
from the State of Alabama
I want to welcome Secretary Lonnie Bunch, the 14th Secretary of the
Smithsonian Institution, and congratulate him on his appointment. The
last time I saw him, he gave eloquent and inspiring remarks on the 50th
anniversary of the death of Martin Luther King, Jr.
Secretary Bunch brings a significant amount of experience and
knowledge to this position. As Director of the National Museum of
African American History and Culture, he oversaw the development and
opening of this project. Secretary Bunch, bringing your experience and
background to bear on museums, research, and programs across the
Smithsonian will be critical.
With that said, this Committee's jurisdiction focuses on the
Smithsonian's buildings and grounds. The Smithsonian has 19 museums, 9
research centers, 3 cultural centers, and the National Zoo, and owns or
leases nearly 14 million square feet of space and nearly 29,000 acres
of land.
While the Smithsonian raises funds on its trust side, a majority of
the Smithsonian's budget is funded by the taxpayer through
appropriations. The Smithsonian's building, acquisition, and space
management practices have a significant impact on costs, accessibility
to the public, and the artifacts Smithsonian is entrusted with.
With the proposed purchase of a half million square feet of space
for a headquarters building and the $650 million renovation of the Air
and Space Museum, we need to ensure these projects make sense and are
appropriately managed.
We owe the taxpayer full transparency on how their taxpayer dollars
are being spent and why. That is why our oversight is critical and why
it is important for this Committee to receive timely and accurate
information.
It is critical that where the Smithsonian requires authorization
for projects and activities, such needs should be communicated to your
authorizing committees. In 2016, for example, the Smithsonian promised
this subcommittee during a hearing that we would be kept fully up to
date on its plans for its leased administrative office space, yet the
Committee received few details on the plans for a new headquarters
building until years later. We still have questions on this acquisition
and whether the proposed arrangement--a condo-style purchase--makes
sense.
We know your deferred maintenance is significant. We also recognize
the challenge with balancing budget constraints with the need to invest
in maintenance to avoid more costly repairs in the future. But, if we
can find ways to better utilize the trust side to address this issue,
we can leverage private dollars to potentially help meet these needs.
Secretary Bunch, I know these issues pre-date your appointment. We
look forward to working with you to improve transparency and
communication, and working together to find innovative ways to help you
manage the space you need to carry out your mission.
Mr. Palmer. With that I yield back the balance of my time.
Ms. Titus. Thank you. I now go to the chairman of the full
committee, Mr. DeFazio.
Mr. DeFazio. Thank you, Madam Chair.
Mr. Secretary, good to see you again. And again,
congratulations. The chair raised a number of issues. I won't
be repetitive of concerns that I have.
In particular, I am hoping that you are going to address
what we are going to do with the maintenance backlog. I mean,
over $1 billion. And you have had to relocate the headquarters
out of the Castle. I want to know how we are going to get all
this done, and how quickly we can get it done, and begin to pay
that down.
And then, obviously, you will be moving artifacts around
during some of the restoration work, and you are acquiring
new--so I am also curious about long-term plans for storage.
I appreciate the fact that you own the majority of your
buildings, unlike many Federal agencies, who end up paying--you
know, the taxpayers don't benefit when we lease, and re-lease,
and re-lease, and re-lease. And so, by owning, you are helping
to conserve resources. And I appreciate that. But then along
comes the obligation for the maintenance.
I do want to emphasize--and hopefully we can sort of turn a
new page here, with the relationship between the authorizing
committee and the Institution. For whatever reason, we have
seen a lot of end runs to the Appropriations Committee.
We want to approach your concerns and problems and future
plans thoughtfully in authorizing language. And if things are
happening over in Approps that are basically impacting those
things, we need to know. And we can be helpful with
appropriations, but also we are the authorizing committee, and
there is a little sensitivity around that.
And, as the chair mentioned, we have at this point plans
and authorization for two new museums, and I would be
interested in your thoughts on that, since I believe the
Smithsonian provides a 50-percent match on those institutions.
And the Federal Government, obviously, will have an obligation.
And then the question about location. Any ideas you have on
that, or it may be premature at this point.
[Mr. DeFazio's prepared statement follows:]
Prepared Statement of Hon. Peter A. DeFazio, a Representative in
Congress from the State of Oregon, and Chairman, Committee on
Transportation and Infrastructure
Thank you, Chairwoman Titus.
Secretary Bunch, thank you for joining us today and congratulations
on your recent appointment.
The Smithsonian's extensive real estate portfolio is a significant
part of what allows for the Institution's continued ``diffusion of
knowledge'' around the world. However, when it comes to the
Smithsonian's maintenance backlog, you have your work cut out for you.
The most recent estimate of the cost of addressing overdue maintenance
is over $1 billion.
A backlog of this size undoubtedly affects the Smithsonian's
ability to plan and implement strategic initiatives. Without necessary
restoration of these aging facilities, the Smithsonian will not be able
to carry out its important research or provide world-class exhibits to
the public.
Among the many Smithsonian facilities in need of renovation is the
Institution's headquarters at the historic castle. The Board of Regents
voted this summer to relocate its headquarters to an office building
near L'Enfant Plaza.
It's clear that deferred maintenance is affecting operations at the
Smithsonian, so I'm interested in what your plan is to address the
backlog and the need for additional storage space for the Smithsonian's
growing collection of artifacts.
I appreciate that the Smithsonian owns the majority of its
buildings, rather than leasing them. It doesn't make sense to waste
taxpayer dollars on lease renewals when an up-front purchase or a
purchase-option could save money in the long term.
However, I share Chairwoman Titus' concerns about the Smithsonian's
repeated circumvention of authorization by this Committee. Given the
significant contribution Congress makes toward the Smithsonian's
budget, I think it's fair to say that funding needs to be cleared
through the proper channels.
In addition, I'm interested to hear your thoughts on legislation
referred to this Committee to construct new museums focused on the
history of women and Latinos in America. H.R. 1980, the Smithsonian
Women's History Museum Act, and H.R. 2420, the National Museum of the
American Latino Act, have broad bipartisan support in the House of
Representatives. In fact, I'm a cosponsor of both bills myself. I'd
like to hear your plans for both museums if these bills are enacted.
Thank you again for attending this hearing and I look forward to
your testimony.
Mr. DeFazio. So, with that, Madam Chair, I would love to
hear from the Secretary. Thank you.
Ms. Titus. Thank you.
Well, Mr. Secretary, welcome once again.
For the record, we have Mr. Lonnie Bunch III, who is the
Smithsonian Institution Secretary.
And we are delighted to have you, and look forward to
hearing your testimony.
Without objection, our witness' full statement will be
included in the record.
And since your written testimony will be part of the
record, we request that you limit it to 5 minutes. Thank you.
TESTIMONY OF LONNIE G. BUNCH III, SECRETARY, THE SMITHSONIAN
INSTITUTION
Mr. Bunch. Is that now working now? OK, thank you.
My tenure as the 14th Secretary of the Smithsonian is just
beginning. However, my relationship with the Smithsonian goes
back to 1978, when I first joined the Institution as a
historian at the National Air and Space Museum. Then I served
as the Associate Director for Curatorial Affairs at the
National Museum of American History. And then finally, I was
fortunate enough to be the Founding Director of the National
Museum of African American History and Culture.
I am pleased and humbled to assume the role of Secretary of
the Smithsonian Institution, an institution that I love so
much.
But for most of our visitors, their first impression of the
Smithsonian is of our iconic buildings on the National Mall,
home to some of the Nation's greatest treasures. What they may
not realize is that the Smithsonian extends far beyond the
Mall.
Since our founding, the Smithsonian has been a local,
national, and global institution, doing work that you might not
expect. The global team that captured the first image of a
black hole was directed by Smithsonian scientists at our
Astrophysical Observatory in Cambridge, Massachusetts.
Researchers at the National Zoo and the Conservation Biology
Institute work to reintroduce species that have gone extinct in
the wild back to their native habitat. Experts at the
Smithsonian Environmental Research Center track and monitor
invasive species in every port in the United States.
Though I have spent my entire career at the Smithsonian, I
am constantly amazed, because I am learning new things about
this wondrous institution.
But all these incredible achievements are enabled by our
facilities, which face tremendous challenges. Much of the
Smithsonian's infrastructure is aging, with systems that have
exceeded their lifespan. As a result, many of our facilities
fall short of industrial best practices for their care and
maintenance. This is the result of an accelerated growth in
Smithsonian buildings that spanned several decades.
Currently, we have a maintenance backlog of just over $1
billion. A billion-dollar backlog may sound insurmountable, but
it is not. Since becoming Secretary, I have had a chance to
look at this with fresh eyes. In order to be more strategic in
our approach, I have directed our staff to begin analyzing our
projects in a new way.
Rather than simply seeing a backlog in total as $1 billion,
I want us to analyze our maintenance projects building by
building. With this approach we have a better sense to
communicate our existing priorities, develop a better sense of
where our limited Federal dollars are best spent, and find
opportunities to address our maintenance needs as part of our
capital revitalization projects. The strategic combination of
capital projects with steady growth and maintenance from
Congress will yield greater results. I believe that addressing
our maintenance backlog is of paramount importance to the
future of the Smithsonian.
We are so fortunate to receive the support of Congress in
addressing our recent and most pressing infrastructure needs:
the renovation of the National Air and Space Museum. Because of
this support, we are on track. Exhibits in the western half of
the building are scheduled to reopen in 2022, and to fully
reopen in 2025.
Beyond the Air and Space Museum, we are beginning to plan
for the revitalization of two of our oldest buildings, the
Castle and the Arts and Industries Building. This project will
address physical deterioration, replace obsolete systems,
install seismic protection, and incorporate modern
accessibility and safety standards. Planning for this project
is an opportunity for us to develop a vision of how best to use
these historic landmarks to better serve our audiences.
Projects like this are highly visible components of our
immediate facility needs. But many of our greatest challenges
are behind the scenes. We care for 155 million objects, most of
which are not on display. They are actively used as research
objects by dozens of Federal agencies and scientists worldwide.
But sadly, 47 percent of our collection space is
inadequate. To address this problem, we have begun implementing
a collection space plan, an ongoing cycle of constructing
state-of-the-art facilities, relocating at-risk collections,
and revitalizing substandard spaces.
We are making steady progress. We recently finished a
collection space building at the National Air and Space Museum
Udvar-Hazy Center. It was immediately used as swing space to
help us move the artifacts from the Air and Space Museum, as it
is going under renovation. And when the Air and Space Museum is
completed, that storage space will allow us to remove many of
the aviation collections that are in poor conditions at the
Garber facility.
We have got a planning phase for additional pods at the
Smithsonian Museum Support Center, and for this project we are
collaborating with the National Gallery of Art to share
construction costs and operations of this facility. This is a
win-win situation for both institutions.
But as we look at potential future facility needs, there
are many knowns, but many unknowns. We know that our
collections will grow. Research continues to advance, and
history unfolds before our eyes. And to continue to tell the
story of America, we need to continue to collect collections.
But we also know that we have to protect those collections
in light of the changing environment. We know that Washington,
DC, will have more intense precipitation, increased storm
surge, a rising Potomac. So we know that the National Mall may
be at risk. We have already implemented preventative measures.
We have moved many of the archives of the National Air and
Space Museum out to the Udvar-Hazy Center. We have relocated
objects from the ground floors of the National Museum of
American History building, which is really the building most at
risk.
And when we look to build new buildings, we do what we did
with the National Museum of African American History and
Culture. We made sure that water protection measures were
incorporated into the design, so that the Smithsonian, if they
are mandated to build new museums, we want to make sure that
climate considerations will be crucial. The prospect of new
museums is really the great unknown for us.
The current proposal for a National Museum of the American
Latino and National Women's History Museum enjoy broad
bipartisan support. As I have said to you and many others, if
Congress deems it in the public interest to move forward with
these proposals, we believe it is critical that any additions
to the Smithsonian do not negatively impact our existing
facilities, many of which I will outline for you today.
A new museum needs funds, both for the creation and the
long-term operation, the care of collections, the building of
staff, and the safety and protection of our visitors. It is my
responsibility to ensure that all our museums, all our research
centers are appropriately cared for. But I believe, with proper
support, we can create new museums that exceed our imaginations
and build on the standards of excellence set by the
Smithsonian.
This desire for new museums reflects a need to ensure that
our Nation's cultural institutions provide a complete and
inclusive representation of the American experience. We will
work diligently to tell a broader, more complete narrative with
the resources we already have. I am proud of the work that we
have done with the Latino Center and the Asian Pacific American
Center. And most recently we have launched the American Women's
History Initiative. All of these efforts work to make sure that
the Smithsonian, beyond individual museums, creates programs,
mounts exhibitions, and grows collections.
The Smithsonian is the steward of the Nation's museums,
collections, exhibits, research, libraries, and educational
resources. Our museums are powerful symbols of our shared
cultural values. The buildings that line the National Mall tell
the world what it means to be an American. Our cultural
institutions are greater than the sum of their parts. They are
more than bricks and mortar. Because of that, I thank you for
taking the time to hold this hearing and making our facilities
such a priority.
It is a privilege to testify before you today, and I
welcome any questions you have.
[Mr. Bunch's prepared statement follows:]
Prepared Statement of Lonnie G. Bunch III, Secretary, The Smithsonian
Institution
Chairwoman Titus, Ranking Member Meadows, and Members of the
Committee, thank you for the opportunity to testify today on the
current and future facilities needs at the Smithsonian.
My tenure as the 14th Secretary of the Smithsonian Institution is
just beginning. However, my relationship with the Smithsonian spans
many years. I originally joined the Smithsonian in 1978 at the National
Air and Space Museum. Since then, I have served as associate director
of curatorial affairs at the National Museum of American History. Most
recently, I was honored to serve as founding director of the National
Museum of African American History and Culture. I am pleased and
humbled to assume my role as the Secretary of this Institution, one
that I love so much.
For most of our visitors, their first impression of the Smithsonian
is of our iconic buildings on the National Mall, home to some of our
nation's greatest treasures. What they may not realize is that the
Smithsonian extends far beyond the Mall. Since our founding, the
Smithsonian has been a local, national, and global institution, doing
work that you might not expect. The global team that captured the first
image of a black hole was directed by Smithsonian scientists at our
Astrophysical Observatory in Cambridge Massachusetts. Researchers at
the National Zoo and Conservation Biology Institute work to reintroduce
species that had gone extinct in the wild back to their native
habitats. Experts at the Smithsonian Environmental Research Center
track and monitor invasive species for every port in the United States.
Though I have spent most of my professional life at the Smithsonian,
even I am constantly learning about the amazing accomplishments of my
colleagues.
All of these incredible achievements are enabled by our facilities,
which face tremendous challenges. Much of Smithsonian's infrastructure
is aging, with systems that have exceeded their useful lives. As a
result, many of our facilities fall short of industry best-practices
for their care and maintenance. Currently, we have a maintenance
backlog just over $1 billion. This is the result of an accelerated
growth in Smithsonian buildings over several decades.
A billion-dollar backlog may sound insurmountable, but it is not.
Since becoming Secretary, I've had a chance to look at it with fresh
eyes. In order to be more strategic in our approach, I have directed
our staff to begin analyzing our projects in a new way. Rather than
seeing our backlog in total, we will be analyzing our maintenance
projects building by building. With this approach, we'll be better able
to communicate our existing priorities, develop a better sense of where
our limited federal dollars are best spent, and find opportunities to
address maintenance needs as part of our capital revitalization
projects. The strategic combination of capital projects with steady
growth in maintenance from Congress will yield greater results. I
believe that addressing our maintenance backlog is of paramount
importance to the future of the Institution. We have been fortunate to
receive the support of Congress, in addressing our most recent and
pressing infrastructure need, the renovation of the National Air and
Space Museum. Because of this support, we are on track. Exhibits in the
western half of the building are on schedule to reopen in 2022, and to
fully reopen in 2025.
Beyond Air and Space, we are beginning to plan for a revitalization
of two of our oldest buildings, the Castle and the Arts and Industries
Building. This project will address physical deterioration, replace
obsolete systems, install seismic protection, and incorporate modern
accessibility and safety standards. Planning for this project is an
opportunity for us to develop a vision for how to best use these
historic landmarks to better serve our visitors.
Projects like this are a highly visible component of our facilities
needs, but many of our greatest needs are behind-the-scenes. We care
for 155 million objects in our collections. These items are not limited
to our on-display artifacts. They are actively used research objects
for historians and scientists worldwide. Our collections support the
work of dozens of federal agencies to perform their missions. Whether
they are used to identify invasive species or to prevent planes from
making a potentially deadly bird strike, our collections are an
essential resource for the country. Sadly, about 47% of our collections
space is inadequate. To address this problem, we have been implementing
a Collections Space Framework plan. Under this plan, we are engaged in
an ongoing cycle of constructing state-of-the-art facilities,
relocating at-risk collections, and revitalizing sub-standard spaces.
We are making steady progress on our collections needs. We recently
finished a collections space at the National Air and Space Museum's
Udvar Hazy Center in Chantilly, Virginia. It was immediately put to use
as the swing space for artifacts removed from the Air and Space Museum
on the Mall during its revitalization. Upon completion of that project
in 2024, the Udvar Hazy storage space will enable us to move and
restore aviation collections currently in poor condition at the Garber
facility in Suitland, MD.
In the same Suitland campus, we are also in the planning phase of
an additional collections Pod at the Smithsonian Museum Support Center.
For this project, we have been collaborating with the National Gallery
of Art to share the costs of construction and operations of the
facility. This is a win-win for both institutions, and a great value to
taxpayers.
As we gain capacity in these new spaces, we can begin to empty our
inadequate spaces, and ultimately demolish and redevelop the site. We
are currently master planning for the future development of the
Suitland campus. Through this steady progress, we can improve our
existing collections care and prepare for collections needs into the
future.
As we look at potential future facility needs, there are many
knowns, but also many unknowns. We do know that our collections will
grow. Research continues to advance, and history unfolds before our
eyes every day. To continue appropriately telling the story of America,
it's paramount that we collect the objects that tell our ever-evolving
story.
We also know that protecting the artifacts and buildings we have
now will become more difficult. We live on a planet with a rapidly
changing climate, and our facilities are not immune from it. The
Washington D.C. Metro area will be impacted by intensification of
precipitation, increased storm surge, and a rising Potomac. According
to National Park Service projections, much of the Mall will be at risk
of severe flooding after a major storm by 2030.
We are assessing this threat throughout our facilities and have
already implemented some preventive measures. For example, the archives
of the National Air and Space Museum have been relocated to the Udvar
Hazy Center, where flood risk is significantly reduced. Similarly,
objects have been removed from first floor storage at the National
Museum of American History, our building with the most severe flood
risk.
This assessment also impacts how future buildings are designed.
When the site of the National Museum of African American History and
Culture was selected, we knew from the beginning that there was an
elevated flood risk, so water protection measures had to be
incorporated into its design. Should the Smithsonian be mandated to
construct any new museums, climate considerations will be a crucial
part of any site selection and planning.
The prospect of new museums being created is the great unknown for
the Institution's future. The current proposals for a National Museum
of the American Latino and a National Women's History Museum enjoy bi-
partisan support here in the House of Representatives. As I have said
to you and many of your colleagues, if Congress deems it in the public
interest to move forward with these proposals, we will believe it is
critical that any additions to the Smithsonian do not negatively impact
Smithsonian's pressing infrastructure and collections space needs that
demand our immediate and on-going attention as I have outlined for you
today.
A new museum requires funds for both the creation and long-term
operations of the facilities, the care and preservation of its
collections, the safety and protection of our visitors, and the on-
going success of its programs. It is my great responsibility to ensure
that all of our museums, research centers, libraries, and educational
centers are appropriately cared for. Only then can we create new
museums that exceed our imaginations and build on the standards of
excellence set by the Smithsonian.
The desire for new museums reflects a need to ensure that our
Nation's cultural institutions provide a complete and inclusive
representation of the American experience. While Congress deliberates,
we will work diligently to tell a broader and more complete narrative
with the resources already at our disposal.
An example of a current effort to expand inclusivity is the
Smithsonian American Women's History Initiative, Because of Her Story
which launched in 2018. Because of Her Story represents a pan-
institutional embrace and celebration of women's history as an integral
part of the American story. Three Because of Her Story exhibitions have
opened this year, and five more are slated to open within the next two
years. Because of Her Story funded 10 internships in summer 2019.
Additionally, there are 14 public programs or educational efforts
currently funded. This is only the beginning of a transformative way of
thinking about our content. I want to thank Congress for their on-going
support and commitment to this important priority.
The Institution has been working diligently for more than twenty
years to increase the Latino presence throughout the Smithsonian's
museums, collections, research, and programs. The Smithsonian Latino
Center was created in 1997 to promote Latino presence within the
Smithsonian. The Center is not represented in one physical location;
rather, it works collaboratively with the Institution's museums and
research centers, ensuring that the contributions of the Latino
community in the arts, history, national culture, and scientific
achievement are explored, presented, celebrated, and preserved.
Our museums and programs have increased their collections and
mounted scores of exhibitions and programs that relate to Latino
American history. Currently, the Smithsonian Latino Center is preparing
to unveil the first Latino gallery to open on the National Mall. The
new permanent Molina Family Latino Gallery will open in the National
Museum of American History in the fall 2021. The Latino Center
currently has fifteen curators and nine curatorial assistants who we
have added to our Museum staff in the last several years. We expect
that many more diverse staff will be added in the future.
The Smithsonian also founded the Smithsonian Asian Pacific American
Center (APAC) in 1997 which has served to further the inclusion of
Asian Pacific Americans across the Smithsonian's collections, research,
exhibitions, and programs. APAC aims to bring the diversity and
complexity of Asian Pacific America--the fastest growing ethnic group
in the U.S. with a population of almost 20 million--to the Smithsonian.
The Center is currently fundraising for the first permanent gallery
dedicated to Asian Pacific American history, art, and culture in the
Smithsonian.
The Smithsonian's museums are more than a space to mount exhibits,
to conduct research, or to educate visitors. They are powerful symbols
of our shared cultural values. The buildings lining the National Mall
tell the world what it means to be an American. They represent our
history, our ingenuity, and our creativity. You need only ask the
people of Brazil, who lost their National Museum, or the people of
France who now must rebuild Notre Dame. Our cultural institutions are
greater than the sum of their parts, they are more than brick and
mortar.
Because of that, I thank you for taking the time to hold this
hearing, and making our facilities such a priority. It is a privilege
to testify today, and I welcome any questions you may have.
Ms. Titus. Thank you very much, Mr. Secretary. We will now
move on to the Members' questions. Each Member will be
recognized for 5 minutes, and I will start by recognizing Mr.
DeFazio.
Mr. DeFazio. Thanks, Madam Chair. I have to meet with the
head of maritime safety for the Coast Guard, so I appreciate
your accommodating my schedule.
So, Mr. Secretary, the Smithsonian, obviously, has kind of
a split personality here. Sixty-two percent of the budget comes
from the Feds, and 100 percent of the maintenance, and then you
have got to come up with the balance.
But again, this points us back to authorization,
appropriations. I have been an authorizer for 33 years, and we
get a little sensitive about these things. And there have been
a couple of instances that were of concern where, at one point,
you purchased a building and then paid the trust back with
Federal lease payments, and then you sold it for a profit, and
put the profit in the trust, and then leased it back again.
Again, all without sort of, I would say, proper oversight.
And now you want to buy a new headquarters building. And
you have asked the appropriators to allow the Smithsonian to
use Federal rent payments to pay the trust back for the
purchase, but the building will be owned by the trust and not
the Federal Government. And at least your predecessor said the
Smithsonian does not need authorization for that.
Do you agree with that?
Mr. Bunch. I think that what is clear to me is that the
Board of Regents feels that they have great statutory
authority, based on the charter, to enter into work with the
trust. That is the mission of the Smithsonian.
I think the most important issue for me is to say,
candidly, the Smithsonian has made a lot of mistakes, in terms
of communication, in terms of really working effectively with
the authorizers.
And the one thing I can say to you is, if I look at my
career over the last 14 years, it has been clear that I have
worked very well with Congress, and I have really embraced
transparency.
So my notion is that the Smithsonian will not make those
mistakes again. And one of the things I have done is I have
asked the Smithsonian staff to work together to bring together
a group that will actually pull together a periodic white paper
for Members of Congress, so that any issues that I think are
important that need to be raised, you will see them in a timely
fashion. I am committed to making sure we don't repeat the
mistakes of yesterday.
Mr. DeFazio. OK. Well, I appreciate that. And it sounds
like perhaps we can begin to turn the page here, and that would
be good, because we want to be advocates for you and help with
these issues.
As far as I know, the annual appropriations bills at this
point--I mean, you are recognizing Congress has to have a role,
not just the Board of Regents--are authorizing your leasing
authority. And is that--do you understand that, that that is
the way it has been working?
Mr. Bunch. Oh, absolutely.
Mr. DeFazio. Right.
Mr. Bunch. That we have statutory--and you make sure that
the Federal leasing authority is something that you grant to
us.
Mr. DeFazio. Right. Well, you have--40 U.S.C. 301 doesn't
allow for it to be sort of outside of the process. So I
appreciate some recognition of that on your part.
At this point, I am going to yield my time back to the
chair for her more incisive questions, and I have got to run
off and try to be an expert on maritime safety.
So thank you, Mr. Secretary.
Ms. Titus. Thank you, Mr. Chairman. I just will continue
that, too, but I would like to go back to the backlog that you
mentioned, the billion-dollar backlog.
You said it is not insurmountable and you have some plans
to address it. Could you lay out for us some of those plans,
how you are going to retire it?
Since we already provide about 70 percent of the overall
budget, can you go somewhere else for the money as you look at
these programs in a more piecemeal fashion, rather than just
coming back for an additional appropriation?
Mr. Bunch. I think we are going to look at this in several
different ways.
What is important to me is that this is one of the
priorities for the institutions crucial to our future.
It seems to me that, one, I do want to acknowledge the fact
that you have helped us by giving us more resources to wrestle
with our deferred maintenance and our backlog. That is crucial.
And we are working now to think about what is the best strategy
to do that, moving forward.
And what we realized is, one, is to have a better
systematic approach to what is our backlog, and to be able to
understand what are the priorities so that we can really make
decisions about today and for tomorrow.
We also realized that one of the key things we have to do
is, in addition to spending money for maintenance, is to make
sure we are spending money on preventative maintenance. And for
us, this is really the key, and we have really begun to rethink
how we do that to make sure that we can maintain the newest of
buildings, as well as many of the older buildings.
Part of what we want to try to do is recognize that, when
we do our capital revitalization projects, that what we want to
do is use those as a way to get at some of this backlog. If you
look, for example, at what we are doing with the Air and Space
Museum, that allows us, in addition to the rejuvenation of that
building, it allows us to address more than $200 million of
deferred maintenance. So we are looking at different strategies
to do this.
We also always look to see if there are private donors that
can support us. But the truth of the matter is very few donors
are interested in providing for that kind of back-of-the-house,
nonvisible. But it doesn't mean that we can't think creatively
about, when we are looking for support for major exhibitions,
again, a part of that being peeled off to help with that. We
are looking at a variety of ways to do that.
But I think the systematic approach, really marrying the
capital rejuvenation with backlog, and really doing a much
better job of preventative maintenance, will allow us to really
take a good whack at this. The reality is that we would love to
be at 3 percent of the CRV, which would allow us not only to
end backlog, but to begin to cut them down in significant ways.
So we are looking at all the different ways we can do it. But I
do think this new systematic approach will at least give us
clarity.
Ms. Titus. Thank you. I know at one point it was
recommended that you do, like, 2.8 percent, and the reality was
about 1 percent.
Mr. Bunch. We are at 1 percent, and we are looking at what
are other possibilities.
Ms. Titus. I want to go back to the chairman's questions
about the statutory authorization for the purchase. Do you have
an internal document that justifies that purchase, or have you
just relied on just the way it was done before, or have the
appropriators said it is OK? Because at one point the House
didn't agree with the Senate on what was going to be allowed
for the Smithsonian to do, in terms of this kind of condo
arrangement.
Mr. Bunch. Well, I think what we are relying on is the sort
of charter and the history of the Smithsonian. But what I would
like to do, for the record, is go back and have the experts who
know this better than I prepare a response for you in that
area, because I am a pretty good historian, but not a good
lawyer.
Ms. Titus. All right, thank you. And we will ask them to do
that.
Well, would you just address a little further the two new
museums that are being proposed, and how do we find somebody
like you to head up those efforts? Is that going to be
possible?
Mr. Bunch. You flatter me. I think that it is important to
realize that the Smithsonian, given the right resources, can
make institutions that are magical. And I think we can find
people that can do that. The question, really, is can we really
get the resources that are needed, both Federal and private, to
build the institutions, but also to maintain them? And can we
do it in such a way that the Smithsonian continues to receive
the resources it needs to maintain its current programs and
current buildings? That is the challenge.
With that done, there is no doubt in my mind we can make
major institutions that will make the world proud.
Ms. Titus. And in the meantime, though, you have
initiatives going in both of those areas, I believe.
Mr. Bunch. What is key for me is my whole career has been
about expanding the canon, making sure that the diversity of
America is explored in many ways. And I am very proud of what
the Smithsonian has done.
I think the Latino Center, which has been around for 20
years, has really done something crucially important. It has
embedded curators in different museums who care about Latino
culture.
And, as you know, in a museum, curators are the people that
shape everything, even more than directors. And to have that
support, congressional support that allowed us to do that,
really does begin to make a difference. So my hope is that,
even if there isn't a museum, we will continue to make sure
those stories are told very powerfully.
And I am very proud of the new--relatively new initiative
on--the American Women's History Initiative, because I think it
is crucial for us to recognize that we at the Smithsonian
should not be telling stories about women just because they are
separate stories. We should be saying that the story of women
is really the best lens to understand what it means to be an
American. So therefore, all the institutions that touch that as
part of the Smithsonian should be doing that. And so this new
Women's History Initiative is allowing us to do that.
So the best part about that is that, if there are museums,
we now have people that are working in those areas, collections
are beginning to be built. Obviously, they would be a
foundation upon which any new museum would build.
Ms. Titus. I know that is true in Las Vegas with the
National Atomic Testing Museum. There is a whole oral history
project of women who were there, who were certainly in the
minority, but who have an interesting story to tell. So----
Mr. Bunch. And I think it is so interesting, because I have
listened to that oral history project. And what it really tells
you is how central they were to the project itself. Right? And
so that, in essence, it is not an ancillary story, it is the
central story. And that is what I would like the Smithsonian to
do when it comes to women's history.
Ms. Titus. Thank you. I may come back in a minute, but we
will move ahead.
Mrs. Miller, you will be recognized.
Mrs. Miller. Thank you, Chairwoman Titus, for having this
today.
And welcome to our committee.
Mr. Bunch. Thank you.
Mrs. Miller. I believe that art and science and culture are
so very important, a part of human history. In my little State
of West Virginia, people just associate beautiful trees and
coal mines. But we have culture, we have Lebanese people,
Italian people. There are still pockets of individuals that
speak almost Elizabethan English. This culture is so important.
I must say that I am a little biased, because I was a
member of the West Virginia Commission on the Arts for a number
of years. So what you do I hold very dear to my heart, as well.
And I think it is very important for our future generations
that they are able to share in our culture, our diverse
culture, and the art, and just how we can educate people.
And, you know, now that we understand that STEAM education
is so important, and that the arts do hold a wonderful part to
our lives, in your testimony you mentioned disaster-resistant
building design. Do you plan to include disaster-resistant
building updates in your revitalization plans?
Mr. Bunch. Because the issue of sustainability is so
important to me, as evidenced by the work we did at the
National Museum of African American History and Culture, we
have taken on a desire to make sure that everything we do is
pointing us toward sustainability.
As we are beginning to look at what we are redoing with the
Castle, and the Arts and Industries Building, we will look and
see what are the things we can do to make it sustainable, to
make sure that it is protected against disaster.
It is early, so we don't have any plans, formal plans. But
the goal, the commitment is to make sure that these buildings
contribute a sense that the Smithsonian is modeling the kind of
sustainability we expect.
Mrs. Miller. Can you tell us about how you are analyzing
maintenance on a building-by-building basis?
Mr. Bunch. What we are looking at is, instead of saying,
you know, we have a billion-dollar backlog and it is all lumped
together, what I want to do is to be able to go through every
system in every building, so we know when they are at the end
of their lives, where we are now, what are the ones that are
most crucial. And that would then allow us to, every year,
begin to make adjustments to make sure that we are spending our
money at the most important parts of the institutions,
facilities that need to be preserved and revitalized.
I think that, by doing that, it will also give us a
discipline to be able to make sure that we are spending the
time on preventive maintenance, as well as fixing old and
lasting problems.
Mrs. Miller. Are you making progress in terms of
prioritizing that funding?
Mr. Bunch. I think we are. What we have done is I have
asked the staff to really make this the priority, and so we are
working on pulling that data together. I don't have it yet, but
it is something I have asked the staff, and I will have.
Mrs. Miller. You know, even in your own home, you put the
date on the hot water tank when you replace it. You put the
date on the furnace, so you know when you have done work on
your roof. I am sure it is the same, just millions of dollars
larger.
What are some of the maintenance challenges that you
foresee in the next couple of years?
Mr. Bunch. Well, I think the biggest challenge is that, for
so long, the Smithsonian has created new facilities with not
corresponding maintenance support. And so, really, it is now to
basically turn that around and put the resources and put the
time and energy to make sure that we don't continue--for this
hole to get bigger and bigger and bigger.
So my goal is to, basically, one, bring a systematic
approach to it, and then look as creatively as we can to
address this. We will always need congressional support to help
do that.
Mrs. Miller. Absolutely. And can you tell us about the
specific changes that you plan to make in revitalization of the
Castle and the Arts and Industries Buildings?
Mr. Bunch. I think it is early in the work to be able to be
very specific, except that I can say that the Arts and
Industries Building and the Castle are two of the buildings
that mean a lot to me. The Arts and Industries Building, as you
know, has spent a lot of money to take care of the exterior,
that we have--we have given stability. The roof is strong. But
it is still a shell.
And at this stage what we are doing is we are testing the
use of it. We did the installation, my installation, in there.
We have done things with the Folklife Festival. We want to see
how that space can be fixed, and how it can be used. The
challenge is that we still have to fix all the internal
systems. There are issues of accessibility, safety that have to
be addressed. But what we are doing is we are putting together
a team of people that are looking at the 175th anniversary of
the Smithsonian. And what we want is we want the exhibition to
be in that building. And we want to use that to begin to
actually move pieces in that will make that building more
useful again, and usable, and test what we can do.
The truth of the matter is the Arts and Industries Building
is still a major work in progress, because there is so much
that needs to be done.
In terms of the Castle, we are really at the preliminary
stages. What I have asked is that I want to look at the Castle
as more than an office space. How is it something that we serve
the visitors better, the space is more accommodating to
visitors? So we are really beginning now to look at that plan
to say how is this both a space for offices and people, but how
is it also something that provides auditory, or provides space
to engage the public more effectively?
So right now we are in the beginning stages of those plans,
and I am just getting briefed on that now.
Mrs. Miller. Thank you, Mr. Bunch. I yield back my time.
Ms. Titus. Thank you. The Chair now recognizes Ms. Holmes
Norton to ask questions for 5 minutes.
And remember, this is your constituent.
[Laughter.]
Ms. Norton. I won't let anybody forget it.
And I want to congratulate you once again, Mr. Bunch, on
what you have done, and on the vote of confidence you really
have had in your past work, which is why you are where you are
now.
Actually, I am intrigued by the real estate deals that the
trust has done, and almost want to congratulate you on them.
The Congress doesn't look like it is going to fork over any
money soon. Some of them raised a little eyebrows. But as long
as they don't violate the Antideficiency Act, it seems to me
that we will let you be as experimental as you can be.
This headquarters move from the Castle to a building
where--it looks like you are already in part of that building
on Maryland Avenue. Is that a building you would like to buy in
its entirety?
Mr. Bunch. What we did, as you recall, is that, after
talking to GSA to get some guidance, we did an RFP where there
were five, basically, sites that were in the running. Two were
very conducive. One was an empty site that needed to--had
construction, and the other was Cap Gallery. And part of what--
where we are leaning towards now.
And part of the issue for us was where can we consolidate
the most of our staff, where can we be sure we are not going to
run into building construction delays and the like, and, also,
in some ways, because there has been so much investment, if you
will, in the Cap Gallery space, in terms of our emergency
control centers, and archives there, that it made better sense,
once we analyzed everything, to acquire portions of that
building.
And the challenge is as you framed it. What we are
attempting to do, we would like to acquire one complete tower
and part of the second. But in essence, we enter into a
partnership, that we have a partner who is going to handle some
of the retail, some of the parking, some of the spaces we don't
need. And then, ultimately, it would allow us to provide the
adequate security and completely in one tower, and then
appropriate measures for security in the second tower.
I think, in a way, there is no doubt this could be seen as
a little unorthodox. But the real challenge is we need to
think, as the Smithsonian, how to be more nimble in the 21st
century. And I think working to consolidate the leases,
thinking about new ways of ownership will allow us, I think, to
ultimately save the Federal Government money and serve the
taxpayer better.
Ms. Norton. And you think--again, along with your deals,
that you have the funds to purchase this building?
Mr. Bunch. What we have, what we are asking, is the
opportunity to--we will get a bond that will pay for it. What
we would like to be able to do is use the Federal rent money
that we are receiving to put that into the trust account and
use that to pay down the debt.
Ms. Norton. And you think you can work the deal that way?
Mr. Bunch. We hope you will let us work the deal that way,
yes.
Ms. Norton. Well, considering that we are not appropriating
money, it seems to me we have got to listen very carefully on
how you intend to do it, because your creativity is welcomed.
I am concerned, though, that the Smithsonian--in fact, the
GAO did a study and found that those with independent authority
are not in compliance with this reduced footprint that the rest
of the Federal Government is in. I am actually for the reduced
footprint. And it seems to be working out very well.
Remember, we are not talking about space for exhibitions.
We are talking about spaces which--sometimes Federal employees
work at home.
In considering new space, have you considered this GAO
report which criticizes not only you, but all those that have
independent leasing authority? Have you considered bringing
yourself, as you look for more space, into compliance with this
reduced footprint that other agencies are held to?
Mr. Bunch. What we are looking to do is, yes, is look at
that. As part of, let's say, the Capital Gallery, some of the
space is already reconfigured. But any new space that we would
use, we would come in compliance. That is really important to
us.
The other thing that is crucial is that, as we are trying
to anticipate the future, we are trying to make sure we have
enough space for swing space when we move people out of the
Castle.
But even more importantly, if we are asked to build new
museums, when we were asked to build the National Museum of
African American History and Culture, it took us a while to
find the space, so I couldn't hire staff. So what I am trying
to do is give the Smithsonian as much flexibility as possible,
so that if we are asked to take on more, we can handle that.
Ms. Norton. I see my time has expired. Thank you very much.
Ms. Titus. Just to your earlier question, I would point out
again that the fiscal year 2020 House appropriations bill
specifically denied the Smithsonian's request to use the money
from the rent to pay back the trust for the purchase of this.
And we don't know what is going to happen with that bill, or if
we are going to do a continuing resolution, or there will be a
conference, but that will be a challenge. Is that correct?
Mr. Bunch. I would have to doublecheck that. I am not 100
percent sure, but that sounds correct. They are nodding and
telling me it is correct.
Ms. Titus. All right, thank you. Now [inaudible].
Miss Gonzalez-Colon. Thank you, Madam Chair. And good
afternoon.
First I want to discuss the proposed National Museum of the
American Latino, H.R. 2420. It has already 244 cosponsors, as
we speak. And having experience of the National Museum of
African American History and Culture, I would like to know what
kind of impact a museum like this and the women's museum can
help us out.
Mr. Bunch. I am sorry, I didn't hear the last part of what
you said, I am--I apologize.
Miss Gonzalez-Colon. I support the National Museum of the
American Latino. And I know, at the time the National Museum of
African American History and Culture was in the research
process, a lot of questions were asked.
My question to you will be what is needed to get the
National Museum of the American Latino finalized?
Mr. Bunch. I think there are several things because, if
there is one thing I know how to do, it is how to build a new
museum. And I think that part of it is recognizing that it is a
longer term commitment, that getting the resources to build the
institution is one thing, but getting the resources to make
sure you can hire the right staff, that you can build the
collections that are needed, and that you have got the
resources for the long run is really some of the challenges.
I also think that, in a very practical way, that when the
National Museum of African American History and Culture was
asked to be built, it was a 50/50 public-private partnership, I
know that is the plan for the National Museum of the American
Latino. But there wasn't a mechanism to ensure when those
resources would be released, and that made it more difficult
for planning, and took extra years to get the process done.
So there are some very specific things that I can say that
would help move that process along. But I think the most
important thing is to recognize that it is going to have to not
only have the resources to open, but also resources to support
the Smithsonian. Because one of the most important things that
happens when a new building comes on is that the maintenance,
the security--there are central institution activities that are
carried on independently of the museum, and we are going to
need to give the Smithsonian the resources to be able to do
that, as well.
Miss Gonzalez-Colon. How can the Smithsonian Institute
either provide already leased space for a new museum, or
acquire the necessary new space for a prospective museum?
Mr. Bunch. I think that, according to the legislation, the
Smithsonian would be asked by--the Board of Regents would be
asked to find the space, and we would look and see what are the
available spaces. It would be based on everything from visitor
access--there are environmental issues that we would look at--
--
Miss Gonzalez-Colon. Is it realistic to still use the 150
feet per person that GSA is requiring?
Mr. Bunch. It is hard to use that for a museum, itself. It
is easier for office space, but it is hard to use that for a
museum.
Miss Gonzalez-Colon. In the last Congress this committee
worked with the administration to pass H.R. 4009, the
Smithsonian National Zoological Park Central Parking Facility
Authorization Act, and will leverage using private financing to
allow construction of the new parking at the National Zoo. But
later on the Smithsonian decided it will not proceed to this
project.
How is the Smithsonian planning to address the parking
needs of the National Zoo?
Mr. Bunch. I think that that notion, when we were going to
build the parking at the zoo, ultimately the partner that we
worked with wasn't effective, and we felt it wasn't the right
partner for us to do that.
I think that, at this stage, the Smithsonian is still
always working with the District of Columbia to look at how we
handle parking.
One of the challenges of a new building is just the simple
fact that it will bring more people, and we do what we do,
which is encourage people to take public transportation.
Miss Gonzalez-Colon. How can you decide whether you lease
or buy new land? What is the measure for that?
Mr. Bunch. Well, the goal is always to get out of all these
leases. These leases are things that, ultimately, will keep
going up as new businesses--Amazon is coming to Virginia. So
the goal is to try to limit as many leases as we can. And that
is why owning a building, allowing us to consolidate leasing
and staff, is really, ultimately, more a better business model,
and more effective down the road.
Miss Gonzalez-Colon. My question is made because one thing
is having a new building or a new facility. There is a
Smithsonian--one is a temporary facility, and another one is a
permanent one. How do you manage with--I mean, do you consult
the GSA, with the Government Accountability Office, or any
other entity about the interest when you buy a property,
whether it is better for the taxpayers' money when you need to
put that money in front, than actually having a lease? Is that
something that you work with the Federal agencies, or is it
just a decision from the Smithsonian Institute?
Mr. Bunch. We have, for example, over this last--thinking
about buying this new building, we did consult with GSA, got
their guidance. We clearly are comfortable, as we move forward,
looking at spaces that GSA may have. We would be willing to
have those conversations with GSA.
Miss Gonzalez-Colon. You did that? You did have those
conversations?
Mr. Bunch. We had some conversations where we asked for
guidance from GSA as we went forward with the RFP.
Miss Gonzalez-Colon. My time expired. Thank you, Madam
Chair.
Ms. Titus. [Inaudible.]
Mr. Brown. Thank you, Madam Chair, Mr. Secretary.
Maryland's Fourth Congressional District that I have the
privilege to represent is home to the Museum Support Center,
the Smithsonian's principal off-site collections, preservation,
and research facility. It is located, as you know, in Maryland:
Suitland, Maryland. The facility houses 55 percent of the
Institution's irreplaceable national collections, with
approximately 300 full-time and about 50 rotating personnel.
The center maintains the latest in museum technology and design
to provide optimum conditions for the preservation and study of
the Smithsonian's collections.
I want to ask you a few questions about that. But before I
do I just want to take this opportunity to say I love the
number 14. I love it for two reasons. One is I love our 14th
Librarian of Congress, and I deeply admire our 14th Secretary
of the Smithsonian Institution. I want to congratulate you.
No doubt your successful career will become a very storied
career as an educator, historian, curator, director, president,
founder, and now Secretary. And having served in museums from
Chicago to California and our Nation's Capital, I really,
really appreciate your contributions to recording and
preserving our Nation's history, our heritage, our culture, and
who we are, and what we are, as a people. So, from the bottom
of my heart, I really want to thank you.
Mr. Bunch. Thank you.
Mr. Brown. Now my question. The Smithsonian has a 30-year
collection space framework plan that would renovate almost
700,000 square feet of existing storage facilities and add an
additional 1 million square feet of storage, for a total cost
of $1.3 billion. Can you tell us what the status of the plan's
funding is, and how would the plan affect the Smithsonian's
current $1 billion maintenance backlog?
Mr. Bunch. As a former museum director, as a curator, the
thing that I know is most important are the collections. And I
think, in 2015, we came with--that collection framework was one
of the most important things the Smithsonian did in that area.
Because, for the first time, the Smithsonian understood exactly
the status of all of its collections, all of its buildings, all
of its housing. And as a result of that, it has allowed us to
make very strategic decisions, in part with support from
Congress, to be able to address that.
And I am pleased to say that the Smithsonian has made some
major steps. I think, as you know, that we have entered into an
agreement with the National Gallery of Art to construct a new
pod out in the Suitland campus. And I think that is going to be
really important as a way for us to begin to collaborate more
effectively, but to also share the cost of doing these things.
I am also so pleased that what we have looked at are
looking at some of the problems with the old Garber aviation
sites. We have been able to decontaminate them. We have also
completed a new pod out at Dulles, which allows us to take some
of the material, once the swing space is done, once we reopen
the Air and Space Museum, some of the material that were in
weakened places in facilities that were substandard, to move
them into the new facilities.
I think we have also, because of this plan, been able to
look at Suitland, and look at where we have been able to bring
in new equipment that is more efficient, more space saving.
And I think maybe the most important thing for me is that
we are in the process of finishing now a master plan just for
the Suitland campus to really help us think more creatively,
help us figure out what are the resources we need. Because the
Suitland campus is crucial. It is not going to solve all the
problems, but being able to use that campus to its fullest
extent will help the Smithsonian continue to be the institution
that preserves America's culture.
Mr. Brown. Thank you. And just to follow up on that,
because you now just referenced that, the Suitland Collections
Center master plan, which you just mentioned, and that is going
to be completed, I believe, next year. Can you give us any
preview on any additional storage facility projects that might
be underway, or that are planned for the near future in
Suitland?
Mr. Bunch. I would love to tell you that, but we are still
working on that final plan.
Mr. Brown. Excellent. OK. My time is about to expire, so I
won't burden you with another question.
Thank you, Madam Chair. I yield back.
Ms. Titus. Thank you. I apologize, Mr. Secretary, that more
of us are not here. Some of our Members are in impeachment
hearings right now. Not that that is more important, but that
is where they are.
Mr. Bunch. I understand.
Ms. Titus. I would ask, does anybody have any additional
questions?
Mr. Brown. Well, I do have an additional question, then,
Madam Chair. Thank you.
According to the fiscal year 2020 budget request to
Congress, the Smithsonian is only requesting $6.5 million for
the facility's capital program at the Suitland Collections
Center, $5.5 million for revitalization, $1 million for
planning and design. I think that is on page 10. The total
requests for the facility's capital program in fiscal year 2020
was $210 million.
So do you believe that $6.5 million is sufficient funding
for a project that should be prioritized?
Mr. Bunch. I think that the notion was that we have got to
make sure that we spend the money that is needed in Suitland.
We have also got to take care of Dulles to be able to have this
kind of ripple effect.
So some of those choices are really about how do we make
sure that we, in a logical way, are able to address this issue.
I think that I will go back and relook at that, and make sure I
understand that more fully. But that is my understanding.
Mr. Brown. Thank you, Madam Chair. I yield back.
Ms. Titus. Miss Gonzalez-Colon.
Miss Gonzalez-Colon. Thank you, Madam Chair. I've just got
one extra question.
I do know how important it is for the American people to
access the collections of the Smithsonian. But I also know that
many people cannot afford to pay a ticket to Washington, DC,
and actually get the opportunity to visit those museums. And
coming from Puerto Rico, I mean, we do have a lot of those
people.
What is the Smithsonian doing to allow access for those
collections for people living in rural areas, or areas that are
not in Washington, DC?
Mr. Bunch. One of my priorities as Secretary is to realize
that the Smithsonian should touch every school and every home.
And one of the ways to do that is by really embracing the
virtual Smithsonian, to really think about how do you create
something that is not the Virtual Museum of American History or
the Virtual Art Museum, but is the Smithsonian, that allows the
public to both have access to those amazing collections, but
also the expertise of the scholars at the Smithsonian, and how
to make sure that those collections also begin to shape the
educational opportunities of students.
So I think that one way is to really think, with the new
technologies, how does the Smithsonian virtually touch
everyone?
But then it is also building on things we do even better. I
think that the Smithsonian Institution Traveling Exhibition
Service, which goes around the country, really does serve so
many communities, large urban communities and also small, rural
communities, projects like the Museum on Main Street, which
brings stories to rural communities, in sites that might not be
seen as museum sites. It is really an important contribution.
I think the final piece is for the Smithsonian to work more
effectively with its Affiliations program. There are hundreds
of institutions around the country that are affiliated with the
Smithsonian. Let us do a better job of utilizing them as places
to bring content, to bring collections. And that would allow
the Smithsonian to extend its reach.
So I am committed to the kind of virtual Smithsonian, and
recognizing that our goal ought to be to touch every home, to
touch every school.
Miss Gonzalez-Colon. Thank you for your service.
Ms. Titus. Well, thank you very much for being with us
today, Mr. Secretary.
I would just ask you in closing two things.
One, you can tell from a number of members of the committee
that there is concern about this new purchase, because it is
outside the box, and we want to be sure that it is properly
authorized, it is not going to run into trouble down the road.
So will you loan us your gentleman in the blue shirt to meet
with our staff to answer some of those questions, and then we
won't have to go into them today with you?
Mr. Bunch. Absolutely.
Ms. Titus. Or whoever is appropriate. But he seems to nod
or shake whenever something is asked.
And my second request is that you will just look to us, and
have us be a partner with you, and not just focus everything on
appropriations, but remember that we are here, and this
committee wants to be engaged, and we want it to be a positive,
collaborative relationship.
Mr. Bunch. I agree. My history has been a good,
collaborative relationship throughout Congress, and I will
continue to do that.
Ms. Titus. Well, thank you very much.
Mr. Bunch. Thank you.
Ms. Titus. All right. Let me get back to the script here,
do this officially.
All right, I will now ask unanimous consent that the record
of today's hearing remain open until such time as our witnesses
have provided answers to any questions that may be submitted in
writing, and unanimous consent that the record remain open for
15 days for any additional comments and information submitted
by Members or witnesses to be included in the record of today's
hearing.
Without objection, so ordered.
So, if no other Members have anything to add, this
committee stands adjourned. Thank you.
[Whereupon, at 3:03 p.m., the subcommittee was adjourned.]
Appendix
----------
Questions from Hon. Peter A. DeFazio to Lonnie G. Bunch III, Secretary,
The Smithsonian Institution
Question 1. In June of 2019, the Board of Regents approved of the
purchase of the 631,629-square-foot Capital Gallery building near
L'Enfant Plaza for headquarters and administrative space.
Question 1.a. What statutory authority is the Smithsonian using
for this purchase?
Answer. The Smithsonian is relying on the statutory authority of
the Board of Regents to conduct the business of the Institution through
use of its trust (nonfederal) assets in a manner designed to further
the Smithsonian's mission. See 20 U.S.C. Sec. Sec. 42(a), 55, 56, 57.
Please see the attached memorandum for a more detailed explanation.
Question 1.b. Is there an internal legal document that justifies
this purchase?
Answer. Yes. Please see the attached memorandum.
Question 2. This is an unusual transaction because the Smithsonian
plans to purchase some--but not all--of the building from Boston
Properties.
Question 2.a. Is there a name for this type of transaction? Is the
Smithsonian purchasing a condo?
Answer. The Smithsonian will be purchasing Assessment & Taxation
lots in the building. In essence, Boston Properties will create
Assessment and Taxation (``A&T'') lots covering the portions of the
Building transferred to the Smithsonian. First, Boston Properties will
prepare a lot division plan and metes and bounds descriptions that
describe the A&T lots covering the portions of the building offered for
purchase and submit a Division of Lots Request Application including
the lot plans and descriptions with the District of Columbia's Office
of Tax and Revenue. Boston Properties will then convey clear title to
the subdivided lots to the Smithsonian in fee simple at the Closing.
The subdivision of property is a normal transaction in the commercial
marketplace.
Question 2.b. Is there precedence for this? Are you aware of GSA
or any federal agency purchasing a portion of a building from a private
sector owner?
Answer. This is not a model we commonly see by federal agencies;
however, we are aware of Enhanced Use Leases (EUL), used by the GSA to
partner with private sector companies. In these arrangements, GSA
leases federally owned ground to private companies. The companies then
construct major facilities on the land, resulting in complex shared
interests of the resulting assets. The EUL provides benefit to the
private sector and the government provided there are appropriate
contractual provisions used to structure these partnerships.
Question 2.c. Who will own the common areas of the building?
Answer. Common elements of the West Building will be owned by the
Smithsonian. Some common elements of the East Building and the corridor
between the two structures will remain under the ownership of Boston
Properties.
Question 2.d. Will the Smithsonian be financially responsible for
the operations and maintenance of the retail and parking spaces that
they don't own?
Answer. The Purchase & Sale Agreement will include a Reciprocal
Easement Agreement that will define the parties' responsibility for
maintenance of common elements and will be scaled to the Smithsonian's
presence in the buildings.
Question 3. How will the Smithsonian ensure it does not trigger the
Anti-Deficiency Act?
Answer. This transaction will not trigger the Anti-Deficiency Act
as all of the risk and obligation is carried by the nonfederal assets
of the Smithsonian, which are not subject to the Act.
The Institution will pay the costs associated with the purchase of
the building with trust (nonfederal) funds. The Smithsonian will use
existing trust funds as well as funds appropriated for lease or rent
payments but expended as rent payable to the Smithsonian and deposited
into the general trust funds of the Institution and available as trust
funds for expenses associated with the purchase of the building.
Additionally, language included in the Further Consolidated
Appropriations Act, 2020 explicitly states the use of federal funds as
trust funds for expenses associated with the purchase of the building
shall not be construed as debt service for, a federal guarantee of, a
transfer of risk to, or an obligation of the Federal Government.
Question 3.a. Will Boston Properties be able to levy special
assessments on the Smithsonian?
Answer. Boston Properties will not be able to levy special
assessments. The management of the building, including all common
elements, will also be described in detail in the Purchase and Sale
Agreement. Our due diligence process includes a detailed study of all
building elements and systems, which will allow us to design a long-
term maintenance plan. The Smithsonian will contribute to the care of
common elements of the building under the terms of the sale agreement.
Question 4. How will the Federal appropriations for rent payments
be utilized?
Answer. Federal funds appropriated for lease or rent payments will
be deposited into the general trust funds of the Institution and
utilized as trust funds for expenses associated with the purchase of
the building. These expenses will include debt service, acquisition
costs, and transaction costs.
Question 5. If the Trust is using Federal lease payments to cover
the mortgage, why should the Trust own the building instead of the
Federal government?
Answer. As noted above, the Institution will use federal funds
appropriated for lease or rent payments as trust funds to cover a
portion of the expenses associated with the purchase of the building,
including debt service. The purchase is properly considered a trust
acquisition because the Smithsonian will finance the acquisition solely
through debt and that debt will solely be an obligation of the trust.
The Institution's trust assets will assume all risk associated with the
purchase. The language included in the FY 2020 Interior Appropriations
Act makes clear that the use of federal funds as trust funds shall not
be construed as debt service for, a federal guarantee of, a transfer of
risk to, or an obligation of the Federal Government.
Questions from Hon. Mark Meadows to Lonnie G. Bunch III, Secretary, The
Smithsonian Institution
Question 1. Secretary Bunch, under your leadership, the development
and opening of the National Museum of African-American History and
Culture by all accounts is a success. Are there lessons-learned from
that project that can be applied across the Smithsonian? If so, can you
explain?
Answer. Creating and opening the National Museum of African
American History and Culture was one of the most rewarding and
challenging projects in my career. Throughout that effort, I learned
that we all benefited greatly when we had coordinated communication
efforts, so that all of the many disparate teams working on aspects of
the project had the same basic information. I also learned that we
needed to look at our internal administrative infrastructure and learn
from best practices throughout the government to help us improve our
internal processes and procedures. I also learned that planning is
critical, and that the best plans permit flexibility to change when
circumstances dictate.
I also learned the critical importance of having a public/private
partnership to raise the money necessary to create, open, operate and
maintain a world-class museum. Federal financial contributions are
needed in order to leverage private support, and another lesson that we
learned was that a planned approach to the release of appropriated
funds could greatly benefit our philanthropic activities.
Question 2. Secretary Bunch, the proposed purchase of a new
headquarters building is a bit unusual--instead of purchasing the
entire building and having clear title, the Smithsonian is planning to
purchase part of a building. What analysis did the Smithsonian do to
determine if there is precedent for this type of purchase by a federal
entity? How will shared building systems be managed and who will be
responsible for maintenance? How will security be addressed?
Answer. The Smithsonian will have clear title to its interest in
Capital Gallery.
Boston Properties will divide its interest in the building into a
number of lots and then convey clear title to the subdivided lots to
the Smithsonian in fee simple at the Closing. The subdivision of real
property is not considered an unusual transaction.
The Smithsonian will be responsible for maintenance of common
elements in proportion to its footprint in the building--this is
enabled by the registration of assessment and taxation lots mentioned
above. Security will be evaluated in the same way two agencies might
require sharing a complex of buildings with different levels of
security. SI guidelines will govern the perimeters of SI occupied units
and the Smithsonian can coordinate effectively with BXP.
We consider our experience sharing space with GSA at facilities at
the Alexander Hamilton Court House in New York and the National Postal
Museum, or building the National Air & Space Museum on MWAA land, to be
useful precedent for sharing management and maintenance
responsibilities for Capital Gallery with Boston Properties.
The Smithsonian will hold clear title to its lots and same will be
registered with DC.
Question 3. Secretary Bunch, the Smithsonian has proposed using
federal appropriations to pay back the Smithsonian Trust for the
purchase of the new headquarters building. If the Smithsonian were to
sell this property where would the proceeds be deposited--in the trust
or paid back to the federal government?
Answer. It is the Smithsonian's intention to hold the building as
an administrative headquarters for the future. There is no intention to
sell the building or to hold and sell it for profit-making purposes. If
unforeseen events ever caused the Smithsonian to consider selling the
building, the Smithsonian would consult with relevant congressional
committees, including this Committee, in advance and would report on
the intended use of any proceeds (to the extent such a sale would
generate a profit). This is also a requirement included in the Further
Consolidated Appropriations Act, 2020. Any proceeds would be trust
assets, but the Smithsonian would utilize those assets in a manner that
would advance the Institution's statutory mission.
Question 4. Secretary Bunch, the National Air and Space Museum
project is costing us $650 million. This is a significant amount of
money--more than it cost to build the National Museum for African-
American History and Culture from the ground up. What mechanisms has
the Smithsonian put in place to ensure this project stays under budget
and on schedule?
Answer. With any major project, the better the planning the lower
the likelihood of being surprised later. Our planning, design and
procurement process was thorough, and our estimates validated by an
independent review from the Government Accountability Office. There are
also safeguards built into the project, such as budgeting for
contingencies. Our planning and design approach also builds in
safeguards. Our own staff, engineers, and contractors are able to work
collaboratively to prevent conflicts between design and construction
before they occur. Periodic risk assessments for current conditions to
the end of the project are also performed to identify possible issues
along with monthly Change Management Boards to review any major cost
related items before the construction contingency is applied. While
it's always possible to encounter an unexpected challenge, we have
taken precautions to prevent escalation in federal costs. To date, we
are on track to bring the project to completion on time and on budget
and will make every effort to continue on that path.
Arguably the most important safeguard has been the robust federal
support from the beginning of the project. By funding the project in
larger installments, we were able to lock in costs on items such as
glass and stone at the start. This has provided some insulation from
the volatility in material costs. It also has provided assurance to the
contractors on the long-term funding of the project, enabling them to
better manage the resources.
Question 5. Secretary Bunch, deferred maintenance is an issue
across government agencies. Yet, we know if regular maintenance is not
done, more costly emergency fixes are likely down the road. For the
Smithsonian, the results can be catastrophic given the collections you
are charged with protecting. Unlike most other federal entities, the
Smithsonian has the ability to raise private funds. Traditionally
private donations may only go to new construction, exhibits, or
research. What is the Smithsonian doing to explore fundraising to
address ongoing maintenance and repair needs?
Answer. While private donations have primarily supported
exhibitions, research, and the creation of new museums, there is no
prohibition on fundraising for other purposes such as maintenance. The
challenge historically has been finding donors with an interest in the
day-to-day operational support.
The Smithsonian uses the private funds it receives in accordance
with the donor's intended purpose for each gift. We do engage donors in
discussions about deferred maintenance needs but have consistently
found that they are primarily interested in funding exhibitions and
programs that align with their personal interests.
Where the Institution is able to be creative is in finding
synergies between our maintenance, facilities capital, and private
funding. Revitalizing a privately funded exhibition creates
opportunities to address maintenance items at a lower cost. This takes
significant planning, but it ensures the best value for donors and
taxpayers alike.
Question 6. Secretary Bunch, generally, the Government
Accountability Office has found that owning space for long-term needs
is cheaper than leasing. However, this assumes the federal government
is providing full funding upfront to construct or purchase space. In
the case of the proposed new headquarters, the Smithsonian Trust will
be borrowing the funds and paying back with interest. Did the
Smithsonian consult with GAO, GSA or other outside entity to verify the
financing makes sense for the taxpayer? If so, with whom?
Answer. The Smithsonian consulted with staff from the General
Services Administration on the Request for Proposal, but not on the
financing. We did utilize private consultants, Newmark Knight Frank, to
test numerous scenarios supporting the business case for the purchase.
This information was extensively reviewed internally and the resulting
business case was presented to our authorizing and appropriations
committees.
Question 7. Secretary Bunch, during the hearing questions were
raised regarding the Smithsonian seeking authorization for projects
through appropriations committees rather than the Smithsonian's
authorizing committee. Do you commit to ensuring this Committee is
appropriately kept informed in a timely manner of major building and
real estate projects? Do you commit to working with Smithsonian's
authorizing committees where authorizations are needed?
Answer. Through creating the National Museum of African American
History and Culture, I came to appreciate Congress as a partner whose
support was an essential element of the museum's success. Now as
Secretary, that is the model by which I seek to operate. I am committed
to working with our authorizing committees as it relates to new
projects and real estate, but also to keep you informed of our program
priorities. It's important that we do not lose sight of the important
work our buildings enable, and why they continue to earn the support of
Congress.
Question 8. Secretary Bunch, prior to and during the hearing, there
have been questions regarding the Smithsonian's real estate
authorities. Please provide the Committee with explanations of the
scope and the legal citations for the Smithsonian's authorities for
each of the following real estate activities listed below. If there is
a distinction between authorities for office space and special use
space, such as for a museum, please specify.
Answer. While we do not believe there is a distinction between
office space and ``special use'' space in terms of authority, the
answers to these questions can depend on the type of funds involved
and/or the manner in which the Smithsonian acquired the property at
issue. Without addressing every possible circumstance, we address the
principal scenarios below.
Question 8.a. Leasing of space
Answer. The Smithsonian's appropriations bill specifically provides
the Institution may spend federal S&E funds to enter into ``lease
agreements of no more than 30 years.'' See, e.g., the FY 2020 Interior
Appropriations Act. As a practical matter, the Smithsonian limits such
leases to five (5) years under the authority of the Federal Acquisition
Streamlining Act. When leasing with trust funds, the Smithsonian relies
on the statutory authority of the Board of Regents to conduct the
business of the Institution through use of its trust (nonfederal)
assets in a manner designed to further the Smithsonian's mission. See
20 U.S.C. Sec. Sec. 42(a), 55, 56, 57.
Question 8.b. Purchase of space
Answer. The Smithsonian would seek new statutory authority before
purchasing a building directly with federal funds. If purchasing a
building with trust funds, the Smithsonian would rely on the statutory
authority of the Board of Regents to conduct the business of the
Institution through use of its trust (nonfederal) assets in a manner
designed to further the Smithsonian's mission. See 20 U.S.C. Sec. Sec.
42(a), 55, 56, 57.
Question 8.c. Construction of space
Answer. The Smithsonian would seek new statutory authority to
construct a building with federal funds. If constructing a building
with trust funds, the Smithsonian would rely on the statutory authority
of the Board of Regents to conduct the business of the Institution
through use of its trust (nonfederal) assets in a manner designed to
further the Smithsonian's mission. See 20 U.S.C. Sec. Sec. 42(a), 55,
56, 57.
Question 8.d. Sale or disposal of space
Answer. We are not aware that the Smithsonian has sold or disposed
of a building, such as a museum building, purchased or constructed with
federal funds, but the Smithsonian would seek congressional
authorization before selling or disposing of such a building. If
selling or disposing of a building purchased or constructed with trust
funds, the Smithsonian would rely on the statutory authority of the
Board of Regents to conduct the business of the Institution through use
of its trust (nonfederal) assets in a manner designed to further the
Smithsonian's mission, see 20 U.S.C. Sec. Sec. 42(a), 55, 56, 57, and
would inform Congress in advance as appropriate of its intentions.
Question 8.e. Outleasing of space
Answer. The Smithsonian has authority to manage the buildings under
its control and interprets that authority to include the ability to
license the use of its space to third parties conducting activities
consistent with the Smithsonian's mission. See 20 U.S.C. Sec. 46; B-
145878, 1961 U.S. Comp. Gen. LEXIS 2585 (Sept. 1, 1961). If the term
``outlease'' refers to a commercial leasing program like the General
Services Administration's, through which GSA outleases vacant space at
market rates to private businesses or other entities, the Smithsonian
does not have such a program.
attachment
MEMORANDUM
Smithsonian Authority to Acquire Administrative Headquarters Building
The Smithsonian is seeking to acquire a portion of an office
building to serve as an administrative headquarters. The Smithsonian
would finance the purchase of the building by taking on debt. The debt
would be a general obligation of the trust assets of the Smithsonian.
The Smithsonian is seeking language in its appropriations bill to
enable it to deposit federal appropriations designated for lease
payments into its general trust funds and to use those funds as trust
funds to pay the expenses associated with the purchase of the building,
including debt service, to the extent that federally supported
activities will be housed there. The risk associated with taking on
debt is an obligation solely of the Smithsonian trust: the proposed
language provides that the use of such amounts in the general trust
funds of the Institution shall not be construed as be debt service for,
a federal guarantee of, a transfer of risk to, or an obligation of the
Federal Government, and that no appropriated funds may be used
``directly'' (i.e., without first going into trust funds) to service
debt incurred to finance the purchase.
The Smithsonian has the statutory authority to acquire a building
in this manner. The Smithsonian was established by Congress as a trust
instrumentality of the United States to carry out the bequest of James
Smithson. As a trust instrumentality the Smithsonian has broad powers
under its enabling statute to act with respect to its trust assets in
furtherance of its mission to ``increase and diffus[e] knowledge.''
When the Smithsonian was established, it was not funded with
appropriated funds. Rather, Congress broadly authorized the
Institution's Board of Regents--composed of Members of Congress, the
Chief Justice, the Vice President, and public citizens--to conduct the
``business of the Institution'' through use of the Institution's trust
assets in a manner best designed to further the Institution's mission.
20 U.S.C. Sec. 42(a). Thus, Congress authorized the Regents: to
``receive money or other property by gift, bequest, or devise, and to
hold and dispose of the same in promotion of the purposes thereof'';
id. Sec. 55; to make ``such disposal of any other moneys which have
accrued, or shall hereafter accrue, as interest upon the Smithsonian
fund, . . . as they shall deem best suited for the promotion of the
purposes of the testator''; id. Sec. 56; and to approve payment for
``the debts or performance of the contracts of the institution . . .
for making the purchases and executing the objects authorized'' by
Congress to conduct the business of the institution. Id. Sec. 57.
Unlike a federal agency, therefore, Congress did not design a
statutory scheme whereby it specifically authorized each individual
activity the Smithsonian could engage in. Congress, instead, determined
to give an esteemed Board of Regents broad, plenary authority to manage
and operate the Institution with nonappropriated funds in a manner
consistent with the Smithsonian's mission and charter. See 20 U.S.C.
Sec. 41 (Smithsonian shall ``have perpetual succession with the
powers, limitations, and restrictions hereinafter contained, and no
other''). Over a decade after the Smithsonian was established, Congress
decided to appropriate funds to the Institution to care for certain
government collections, and then, over the next 160 years, expanded the
Smithsonian's federal appropriation and assigned to the Smithsonian
numerous additional statutory tasks, such as creating various national
museums. But the Smithsonian has retained its broad authority with
respect to its trust (nonfederal) assets.
This includes the authority to lease or acquire facilities with
trust funds to meet the Institution's needs or to accept real estate
and property by gift. Congress knew the Smithsonian would need to
acquire facilities and the original act creating the Smithsonian
authorized the Institution to use the interest on the Smithson fund
``for the erection of suitable buildings.'' See Act of August 10, 1846,
Sec. 2. Congress further gave the Smithsonian authority to administer
and manage its property. For example, Congress provided that the ``site
and lands selected for buildings for the Smithsonian Institution shall
be deemed appropriated to the institution,'' 20 U.S.C. Sec. 52, and
empowered the Secretary to ``take charge of the building and property
of the institution . . .'' Id. Sec. 46. Congress further provided that
``[a]ll laws for the protection of public property in the city of
Washington shall apply to, and be in force for, the protection of the
lands, buildings, and other property of the Smithsonian Institution.''
Id. Sec. 53.
The Institution's authority over its buildings was recognized over
100 years ago in the construction of the Freer Gallery on the original
Smithsonian reservation, which was done with trust funds gifted by
Freer and without seeking congressional approval. The War Department's
Office of Public Buildings and Grounds objected to the construction,
believing that the property should be regarded as a ``reservation,
park, or public grounds'' under its jurisdiction and any construction
subject to Congress's approval. The Judge Advocate General's Office,
however, agreed with the Smithsonian that it could construct the
building on its own authority, noting that:
It appears to have been the purpose of Congress, in creating
the establishment known as the Smithsonian Institution, to
create an incorporated body with authority to hold and
administer the property of said institution and to manage its
affairs in accordance with the provisions of said [1846] act of
establishment or incorporation, and such further provisions as
Congress might from time to time prescribe.
Opinion of the Judge Advocate General of the War Department (June 3,
1916).
Indeed, it is a basic principle of trust law that, unless
prohibited by the terms of the trust instrument or by statute, trustees
generally are empowered to take such actions as are necessary or
appropriate to carry out the purposes of a trust, including the power
to ``acquire or sell property, for cash or on credit, at public or
private sale.'' Uniform Trust Code, Sec. 816(2) (2000); see also
Estate of McAlpine v. Commissioner, 968 F.2d 459, 463 (5th Cir. 1992)
(trustee power to lease). This principle applies by analogy here, and
the Smithsonian has long relied on its broad statutory powers to
acquire and administer real property with its trust authority,
including, for example, when it acquired the Carnegie Mansion by gift
in the late 1960s (which now houses the Cooper Hewitt, Smithsonian
Design Museum) and when it acquired, over time by purchase and gift
beginning in the 1960s, the 2,650 acres comprising the Smithsonian
Environmental Research Center. Congress recognized this authority when
it appropriated funds under the same legislative model proposed here to
facilitate the Smithsonian's acquisition of the Victor Building. See
Public Law No. 106-113 at 222 (Nov. 29, 1999) (Smithsonian Institution,
Salaries and Expenses).
Finally, while the Institution is seeking permission to use federal
funds--as trust funds--to pay certain expenses associated with the
purchase of the building, the purchase is still a trust acquisition.
Like the Victor Building acquisition, the Smithsonian is seeking to buy
a building through debt it is will take solely as a general obligation
of the trust. All of the risk associated with the purchase is on the
Institution's trust assets. The proposed language specifically provides
that the use of such amounts in the general trust funds of the
Institution shall not be construed as be debt service for, a federal
guarantee of, a transfer of risk to, or an obligation of the Federal
Government. For these reasons, the transaction is properly
characterized as a trust acquisition.