[Senate Hearing 116-61] [From the U.S. Government Publishing Office] S. Hrg. 116-61 NOMINATIONS OF HON. DALE CABANISS AND MICHAEL E. WOOTEN, ED.D. ======================================================================= HEARING BEFORE THE COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION __________ NOMINATIONS OF HON. DALE CABANISS TO BE DIRECTOR, OFFICE OF PERSONNEL MANAGEMENT, AND MICHAEL E. WOOTEN, ED.D. TO BE ADMINISTRATOR, OFFICE OF FEDERAL PROCUREMENT POLICY, OFFICE OF MANAGEMENT AND BUDGET __________ MAY 7, 2019 Available via the World Wide Web: http://www.govinfo.gov Printed for the use of the Committee on Homeland Security and Governmental Affairs [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] __________ U.S. GOVERNMENT PUBLISHING OFFICE 36-696 PDF WASHINGTON : 2019 -------------------------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-mail, [email protected]. COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS RON JOHNSON, Wisconsin, Chairman ROB PORTMAN, Ohio GARY C. PETERS, Michigan RAND PAUL, Kentucky THOMAS R. CARPER, Delaware JAMES LANKFORD, Oklahoma MAGGIE HASSAN, New Hampshire MITT ROMNEY, Utah KAMALA D. HARRIS, California RICK SCOTT, Florida KYRSTEN SINEMA, Arizona MICHAEL B. ENZI, Wyoming JACKY ROSEN, Nevada JOSH HAWLEY, Missouri Gabrielle D'Adamo Singer, Staff Director Patrick J. Bailey, Chief Counsel for Governmental Affairs Courtney J. Rutland, Deputy Chief Counsel for Governmental Affairs David M. Weinberg, Minority Staff Director Zachary I. Schram, Minority Chief Counsel Claudine J. Brenner, Minority Counsel Laura W. Kilbride, Chief Clerk Thomas J. Spino, Hearing Clerk C O N T E N T S ------ Opening statements: Page Senator Johnson.............................................. 1 Senator Peters............................................... 2 Senator Hassan............................................... 12 Senator Sinema............................................... 14 Senator Hawley............................................... 17 Senator Carper............................................... 19 Senator Lankford............................................. 22 Prepared statements: Senator Johnson.............................................. 29 Senator Peters............................................... 31 WITNESSES Tuesday, May 7, 2019 Hon. John Boozman, a United States Senator from the State of Arkansas....................................................... 3 Hon. Tom Davis, a Representative in Congress from the State of Virginia Testimony.................................................... 4 Prepared statement........................................... 33 Hon. Dale Cabaniss to be Director, Office of Personnel Management Testimony.................................................... 5 Prepared statement........................................... 34 Biographical and financial information....................... 36 Letter from the Office of Government Ethics.................. 55 Responses to pre-hearing questions........................... 58 Responses to post-hearing questions.......................... 90 Michael E. Wooten, ED.D. to be Administrator, Office of Federal Procurement Policy, Office of Management and Budget Testimony.................................................... 7 Prepared statement........................................... 98 Biographical and financial information....................... 100 Letter from the Office of Government Ethics.................. 117 Responses to pre-hearing questions........................... 120 Responses to post-hearing questions.......................... 141 Letter of Support............................................ 144 APPENDIX Statement submitted for the Record from the American Federation of Government Employees, AFL-CIO Union......................... 145 NOMINATIONS OF HON. DALE CABANISS AND MICHAEL WOOTEN ---------- TUESDAY, MAY 7, 2019 U.S. Senate, Committee on Homeland Security and Governmental Affairs, Washington, DC. The Committee met, pursuant to notice, at 2:30 p.m., in room SD-342, Dirksen Senate Office Building, Hon. Ron Johnson, Chairman of the Committee, presiding. Present: Senators Johnson, Lankford, Scott, Hawley, Peters, Carper, Hassan, Harris, and Sinema. OPENING STATEMENT OF CHAIRMAN JOHNSON Chairman Johnson. This hearing will come to order on Senate time. I want to welcome all our guests, our distinguished current Members and former Members who are here to introduce our nominees. I will just ask that my written statement be entered in the record.\1\ --------------------------------------------------------------------------- \1\ The prepared statement of Senator Johnson appears in the Appendix on page 29. --------------------------------------------------------------------------- I want to start out by thanking the nominees for our past service to this country and your willingness to serve. Again, you realize, having served in the government, that this would be a pretty big task, and I want to thank your families, those that support you in your efforts, for their willingness to kind of give up a little bit of extra time with you because that is basically what it takes. I do want to encourage the nominees during your opening statement to feel free to introduce your family members, your friends that are here supporting you during your confirmation hearing. We are here to consider the nominees to be the Director of Office and Personnel Management (OPM) and to be Administrator of the Office of Federal Procurement Policy (OFPP) of the Office of Management and Budget (OMB)--Ms. Dale Cabaniss and Mr. Michael Wooten. I appreciate the time you spent with me in my office discussing the nominations. Mr. Wooten, as we discussed, God bless you for devoting a career to government procurement. I am an accountant. I like to do all kinds of details stuff, but I am not sure I would like that much detail. So I really do appreciate your emphasis and your qualifications, which I think is true of both nominees, highly qualified for the positions, and I look forward to a very good hearing here. I look forward to your testimony and your answers to our questions. So, with that, I will turn it over to Senator Peters. OPENING STATEMENT OF SENATOR PETERS\1\ Senator Peters. Thank you, Mr. Chairman. --------------------------------------------------------------------------- \1\ The prepared statement of Senator Peters appears in the Appendix on page 31. --------------------------------------------------------------------------- Thank you to both of our nominees for being here today and also for your willingness to serve. As the Chairman mentioned, we are considering the nomination of Dale Cabaniss to be the Director of the Office of Personnel Management and Michael Wooten to be the Administrator of the Office of Management and Budget's Office of Federal Procurement Policy. I think it is fitting that we are holding this hearing during Public Service Recognition Week, and I would like to take this moment to express my gratitude to our Nation's civil servants, including both of our nominees, for their dedication and contributions to Federal, State, and local government. I appreciate that you have both expressed a desire to tackle some of the most pressing challenges that we are facing in the Federal Government and the Federal workforce in particular. Currently, one-third of the workforce is eligible to retire at the end of this year, while agencies struggle to recruit and to retain talented employees, especially in critical areas such as cybersecurity and in acquisitions. There are many reasons, of course, for this difficulty-- antiquated hiring systems, layers of bureaucracy--that deter workers from considering Federal service in the first place. The recent record-setting partial government shutdown also struck a severe blow to employee morale. Federal agencies cannot compete with the private sector financially. So we must seek out innovative ways to attract talented professionals to seek out public service. I am proud of the bipartisan work this Committee is doing in this area. Just last week, the Senate unanimously approved bipartisan cyber workforce legislation that I authored and was cosponsored by Chairman Johnson and Senator Hassan. Thank you for your work on that issue. This bill creates a rotational program that offers cybersecurity professionals the unique opportunity to gain experience in multiple Federal agencies. I believe we must continue this Committee's longstanding commitment to pursuing bipartisan reforms to strengthen the Federal workforce and help our government better serve the American people. Ms. Cabaniss, Dr. Wooten, you have both indicated that, if confirmed, you will pursue policies aimed at making government more efficient and more effective, and I share that goal with you. Unfortunately, over the last 2 years, this Administration has shown a reluctance to engage with Congress in the pursuit of this shared priority. In March 2017, the President issued an Executive Order (EO) directing OMB to develop a governmentwide reorganization plan with the stated goal of making government more efficient and effective. Nearly one year ago, June 2018, OMB released its proposal, which includes plans to dismantle OPM in its current form. Throughout this process, we have repeatedly requested basic information about the reorganization, including data that justifies the proposal, an implementation plan, and an analysis of the impact on the Federal workforce. Nearly one year has passed since OMB unveiled this proposal, and we have yet to see any of these. I am disappointed by the Administration's lack of transparency about this proposal. In order to work together to achieve our shared goal, we must build a shared understanding of what the facts are. Ms. Cabaniss, if you are confirmed, you will be leading an agency facing sweeping changes, significant uncertainty, and a need to rebuild trust with Congress. You will need to provide leadership, not only for OPM's 5,400 employees, but for the 2.1 million dedicated men and women who are serving in the Federal workforce. I will be listening carefully to both of your testimonies today, and I am hoping to hear an unequivocal commitment to transparency and to safeguarding the Federal civil workforce. Thank you. Chairman Johnson. Thanks, Senator Peters. We are honored today to have two distinguished guests that are going to introduce our nominees, and I guess we will start with Senator Boozman. OPENING STATEMENT OF THE HONORABLE JOHN BOOZMAN, A UNITED STATES SENATOR FROM THE STATE OF ARKANSAS Senator Boozman. Thank you, Chairman Johnson and Ranking Member Peters and the rest of the Committee for allowing me to appear today to introduce Dale Cabaniss, the nominee for the Director of the Office of Personnel Management. I first met Dale in early 2015 when I became Chairman of the Financial Services and General Government Subcommittee on Appropriations. As this was my first subcommittee chairmanship on the committee, I relied heavily on Dale's advice and extensive Senate experience where she served for over 20 years. I told Dale, in fact, I can remember meeting with her, and I told her, her number one job was to keep me out of trouble, and she not only did that, but so much more. In 2016, for the first time in history of the most recent subcommittee jurisdiction, we passed a bill out of the full committee on a bipartisan unanimous vote. This was no small feat, and it would not have happened without Dale's knowledge and expertise. I am especially proud that under Dale's and Ranking Member Chris Coon's leadership, we were able to work as a committee very well together and get many positive things done for the American people. As subcommittee chairman, I became deeply involved in issues related to OPM, especially in the wake of the massive data breach that occurred in 2015. While there were many red flags and no single person to blame, it was clear that the agency was struggling from a crisis of leadership. I am confident that Dale is the right person at the right time to lead OPM. She is a lifelong public servant spanning two different Administrations. She is an honest broker whose moral character and integrity are unmatched. Before I wrap up, I would like to take a minute, as the Chairman suggested, and recognize Dale's family who is here today, her husband Mitch Rose, also a former longtime Senate staffer; her brother, Colonel Christian Cabaniss, a U.S. Marine who serves our Nation with great honor and distinction. I would also like to recognize the rest of her family that are not present today. I know that they are so proud of their mom, her three children being Ben, Haley, and Shelby, and her mom. In closing, I enthusiastically support Dale's nomination to lead OPM and really would encourage all of you to look at her nomination very closely and also support it as well. Thank you very much. Thank you for giving me the opportunity. Chairman Johnson. Thank you, Senator Boozman. To introduce Dr. Wooten is Congressman Tom Davis. OPENING STATEMENT OF THE HONORABLE TOM DAVIS,\1\ A REPRESENTATIVE IN CONGRESS FROM THE STATE OF VIRGINIA Mr. Davis. Thank you, Mr. Chairman, Ranking Member Peters, and Members of the Committee for the honor to introduce a fellow Virginian, Dr. Michael Wooten. --------------------------------------------------------------------------- \1\ The prepared statement of Hon. Davis appears in the Appendix on page 33. --------------------------------------------------------------------------- As a former government contracts lawyer and former chairman of the House Government Reform and Oversight Committee, I understand the importance of the Office of Federal Procurement Policy in OMB. Hundreds of billions of dollars are procured by the Federal Government annually, and having an administrator who knows the underlying laws, regulations, and stakeholders are prerequisites. Michael Wooten has it all. I have known Dr. Wooten for several years. He is an honorable public servant with decades of military and governmental service. Michael is a graduate of Chapman University and holds a Ph.D. from the University of Pennsylvania. He served in the Marines, where he retired as a major. He also served in the Department of Education, and he served in the District of Columbia Government as a procurement officer there, and he also served on the Prince William County School Board. I believe that Dr. Wooten will carry out the duties as the Administrator of OFPP with the same integrity and independence that has marked his previous career. Congratulations, Dr. Wooten, on your nomination. I know this Committee will give you fair consideration. Thank you very much. Chairman Johnson. Thank you, Congressman Davis. Senator Corker, you sit on the Senate Foreign Relations. You are welcome to stay but just not sitting there. [Laughter.] Thank you very much. I really do appreciate those introductions. Now, it is the tradition of this Committee to swear in witnesses. So if you will both stand and raise your right hand. Do you swear the testimony you will give before this Committee will be the truth, the whole truth, and nothing but the truth, so help you, God? Mr. Wooten. I do. Ms. Cabaniss. I do. Chairman Johnson. Please be seated. Our first nominee is Dale Cabaniss. Ms. Cabaniss is the former clerk of Senate Appropriations Committee Subcommittee on Financial Services and General Government. Previously, she served as chairman of the Federal Labor Relations Authority (FLRA) and in various positions on Capitol Hill, including on this Committee when, as you said, it was just Governmental Affairs Committee (GAC), not Homeland Security and Governmental Affairs Committee (HSGAC). Ms. Cabaniss. TESTIMONY OF THE HONORABLE DALE CABANISS,\1\ NOMINATED TO BE DIRECTOR, OFFICE OF PERSONNEL MANAGEMENT Ms. Cabaniss. Mr. Chairman, Ranking Member Peters, and Members of the Committee, thank you for giving me the opportunity to appear before you today. --------------------------------------------------------------------------- \1\ The prepared statement of Ms. Cabaniss appears in the Appendix on page 34. --------------------------------------------------------------------------- I also want to thank Senator Boozman for his kind introduction. I have had an opportunity to work with many Senators throughout my tenure in the U.S. Senate, but my time with Senator Boozman and his staff definitely stands out as a highlight of my career. I would also like to thank the members of my family who are here with me today, my husband Mitch Rose, and my brother, Colonel Christian Cabaniss. Mr. Chairman, I am honored to have been nominated by the President to serve as Director of the Office of Personnel Management. I am grateful to have spent my entire career in public service. I worked in the U.S. Senate for over 20 years and served in two Presidential administrations. In the Senate, I had the fortune of working in a member's personal office, on an authorizing committee, and on the Senate Appropriations Committee, all of which gave me a chance to work on the issues impacting the civil service and the Office of Personnel Management. In the Executive Branch, I served as a member of a three- member adjudicatory body, and I later had the responsibility of serving as the agency head as well. These experiences each gave me a different perspective and insights into the challenges facing Federal employees and agencies as they work together on behalf of the American people. Throughout my career, I have worked with incredibly dedicated civil servants, representing all three branches of government, employees on the front lines of combating terrorist financing, protecting our financial markets, assisting our Nation's small businesses, and ensuring the orderly administration of justice. OPM's people, policy, and programs play a critical role in the accomplishment of these missions through the support of the civil service. When the Civil Service Commission was established, it laid the foundation for an impartial, professional civil service based on the merit principle that employees should be judged only on how well they can do a job. In 1978, with passage of the Civil Service Reform Act (CSRA), OPM was charged with the responsibility for personnel management of the civil service. Today OPM delivers policy and services to ensure the Federal Government has a trusted and effective Federal workforce. OPM employees serves Federal employees through the administration of health care, retirement, and other benefits, supporting merit-based hiring and a secure employment process. Throughout my Federal service, Presidential administrations have continuously strived to improve performance and the management of the Federal Government, its workforce, and its service to Americans. As a staff member on this Committee and later as an appointee in the Clinton Administration, I saw firsthand the work of Vice President Gore's National Performance Review. As an appointee in the Bush Administration, I worked to try to ensure that the agency processes and policies were consistent with the President's Management Agenda. As a member of the Appropriations Committee staff, I engaged on a daily basis with agencies seeking to execute President Obama's charge to make government more citizen- centered, not bureaucracy-centered. All of these efforts contemplated the need to modernize government and to consider agency workforce planning and restructuring. President Trump's Management Agenda continues the critical efforts to improve the Federal Government's delivery of service to its citizens. The agenda's focus on mission, service, and stewardship lays the foundation of a long-term vision to modernize the Federal Government. The efforts of the Federal workforce are crucial to the success of leading the Federal Government into the 21st Century. In order to effectively support the operations of government, the Federal workforce needs to keep pace with the changes and challenges facing our Nation. Improving the recruitment, retention, and reskilling of Federal employees will help both employees and agencies drive that modernization. Mr. Chairman, I want to take a moment to discuss my tenure at the Federal Labor Relations Authority. It was an honor when President Clinton nominated me to serve on the FLRA, and I was very proud when President Bush nominated me to be chairman. The FLRA is made up of three statutory components, each led by a Senate-confirmed Presidential appointee. When I arrived at the Agency, I realized the agency was acting as if it was three silo-ed separate agencies. There were duplicative functions in different offices. Employees were not treated the same or often fairly across components. Offices had difficulty justifying their budget requests and preferred budget and staffing levels based on historical levels rather than current workload. I made several changes to try and make this agency function more as one. Employees needed to be treated equally, no matter where they sat. Resource decisions had to be made with the agency mission in mind and based on current workload and caseload trends. These changes were not necessarily welcomed, particularly by those who preferred their component's need take priority over another part of the agency, but we all had a fiduciary responsibility to ensure the best value on behalf of the American taxpayer. We worked to balance that need for stewardship with the mission of the agency. Mr. Chairman, I believe my experience working with Members of Congress, the Executive Branch, congressional leadership, congressional staff, and other stakeholders on legislative and policy matters critical to the effective and efficient functioning of government have given me a clear understanding of the challenges facing Federal employees and agencies. If confirmed, I will work with stakeholders to ensure that Federal employees and agencies have the tools that they need and the support to work effectively together on behalf of the American people. I look forward to answering your questions. Thank you. Chairman Johnson. Thank you, Ms. Cabaniss. Our second nominee is Michael Wooten. Dr. Wooten is a senior advisor at the Department of Education, previously serving as the Deputy Assistant Under Secretary for Career, Technical, and Adult Education. Dr. Wooten worked previously in the procurement for the District of Columbia. He was a professor at the Defense Acquisition University (DAU) following 20 years of service in the United States Marine Corps (USMC). Dr. Wooten. TESTIMONY OF MICHAEL E. WOOTEN, ED.D.,\1\ NOMINATED TO BE ADMINISTRATOR, OFFICE OF FEDERAL PROCUREMENT POLICY, OFFICE OF MANAGEMENT AND BUDGET Mr. Wooten. Thank you, Chairman Johnson, Ranking Member Peters, and members of the Committee for inviting me here today. --------------------------------------------------------------------------- \1\ The prepared statement of Mr. Wooten appears in the Appendix on page 98. --------------------------------------------------------------------------- I am honored to be here before you as the President's nominee to serve as the Administrator for Federal Procurement Policy in the Office of Management and Budget. I am pleased and proud of the encouragement and support that I have received from family, friends, and professional colleagues, particularly from those in the acquisition community. I am particularly honored to be joined by a few family members today. It is my great pleasure to introduce my wife of 31 years, D'Andrea Wooten. She is joined by her mother, Mrs. Maxine Wilson, my brother, Dr. David Wooten, and our son, John Wooten. Our daughter, Sarah Wooten Wright, resides in Buffalo with her husband, Emerson Wright, and they were unable to join us here today. I would also like to acknowledge my father, Senior Chief James W. Wooten, U.S. Navy retired, and my father-in-law, Captain Alger L. Wilson, U.S. Navy retired. These two sailors were unable to make the trip here today, but I hope they are watching. Between their service and my own service as a marine, our family has a proud legacy of over 70 years of naval service, and I know they support me as I ask to be considered for further national service. I want to thank President Trump for nominating me to this position. I also want to thank and acknowledge the Honorable Margaret Weichert, Deputy Director for Management at OMB. She has provided steadfast support, and she always demonstrates upbeat leadership. I deeply appreciate the confidence that these two leaders have shown me by means of this nomination. I would also like to thank the Honorable Thomas Davis for his kind introduction. He served as my Congress Member for over a decade and is the former Chairman of the House Oversight and Government Reform Committee. I am honored by his support here today. I believe that the Administrator's role is to set priorities and an agenda to achieve best the economy, efficiency, and effectiveness mandates charged to the Office of Federal Procurement Policy. Today I believe that acquisition goodness can be best achieved by supporting the President's Management Agenda. Acquisition goodness also needs leadership that supports sparking innovation, promoting shared services, maximizing buying power, championing transparency, providing policy and management leadership, developing the acquisition workforce, and supporting small business participation, which is the heart of the American industrial base. Over the past 20 years, I have served in various acquisition posts. I have served in various roles as a contracting officer in the Marine Corps, to include combat and humanitarian contracting in Afghanistan and surrounding regions. I have served as a professor of Contract Management at Defense Acquisition University, and Deputy Chief Procurement Officer for the District of Columbia? If confirmed, I intend to prioritize the following: institutionalizing category management, supporting our small business partners, improving major acquisitions, sparking innovation, and leading the acquisition workforce. If confirmed, I hope to leverage my position as Administrator to increase awareness of these priorities and related initiatives, including the dissemination of best practices and tailored training that meets the different needs of agencies. I believe that innovation and cost efficiency are the two most critical procurement concerns for the success and durability of the Federal acquisition system, and I believe that these policy priorities offer the most significant and positive impact on Federal procurement. To overcome our innovation challenges and the near-peer threats posed by global adversaries, ``faster, better, cheaper'' must reemerge as the burning modernization imperative. Modernizing the way we buy over half a trillion dollars of goods and services each year is critical to providing the solutions our government requires at a price the taxpayers can afford over the long term. The Office of Federal Procurement Policy has shown significant progress in implementing category management, a key initiative under the President's Management Agenda. Presently, category management has yielded tangible cost avoidance and cost savings. At its zenith, all Federal agencies will benefit from category management as a strategy for sharing market intelligence, leveraging buying power, and using expertise across the Government enterprise for common areas of spending. Category management is a superb strategy for buying goods and services throughout the Federal enterprise at a price the taxpayers can afford over the long term. Once again, thank you for the opportunity to appear before you today. If confirmed, I look forward to working closely with this Committee to deliver greater value to the taxpayer. I am pleased to answer any questions you may have. Chairman Johnson. Thank you, Dr. Wooten. There are three questions we ask every nominee. I will ask the question, and then I would like you each to answer the question. I will start with Ms. Cabaniss. Is there anything you are aware of in your background that might present a conflict of interest with the duties of the office to which you have been nominated? Ms. Cabaniss. Ms. Cabaniss. No. Chairman Johnson. Dr. Wooten? Mr. Wooten. No, sir. Chairman Johnson. Do you know of anything personal or otherwise that would in any way prevent you from fully and honorable discharging the responsibilities of the office to which you have been nominated? Ms. Cabaniss. No, sir. Mr. Wooten. No, Senator. Chairman Johnson. Do you agree without reservation to comply with any request or summons to appear and testify before any duly constituted committee of Congress if you are confirmed? Ms. Cabaniss. Yes. Mr. Wooten. Yes, Senator. Chairman Johnson. Those are the correct answers. Out of respect for my colleagues' time, I will turn it over to Senator Peters. Senator Peters. Well, thank you. Thank you, Mr. Chairman. This Committee is the Senate's primary oversight body, as both of you know, and it has a constitutional duty to conduct oversight of governmentwide operations and ensure that Federal agencies and programs are serving the American people both effectively and spending the taxpayer dollars responsibly. However, we cannot fulfill this critical oversight responsibility without the cooperation of the Federal agencies, and I know both of you address this in your written responses, but I think it is important for me to ask this question again and have you reiterate those answers. So for both of you, if confirmed, will you commit to responding to oversight requests from Members of Congress and particularly from Members of this Committee as the primary oversight body of the U.S. Senate in a consistent and timely manner, regardless of the party? Ms. Cabaniss. Yes. Senator Peters. Dr. Wooten? Mr. Wooten. Yes, Senator. Senator Peters. Thank you. Ms. Cabaniss, in our meeting last week, you and I discussed some strategies to deal with improving the Federal Government's ability to attract and retain top talent, and I am certainly pleased to hear your support of the Federal Rotational Cyber Workforce Program that I mentioned in my opening comments. As you are well aware, the legislation helps the Federal Government develop and to integrate cybersecurity workforce and also, very importantly, to retain high-skilled employees by establishing a rotational program that allows professionals to get experience in other departments and then come back to their existing department. So my question to you is, if confirmed, will you continue to the commitment that you expressed in my office supporting this legislation and working with us to get this signed into law and then implemented within the agencies? Ms. Cabaniss. Yes, Senator. I think it is a very important tool not to just address our cyber needs, but as a way to recruit and retain new talent coming into the government, giving people more opportunities to be able to work different places in Federal Government and keep them engaged, so yes, absolutely, I really look forward to working with you on it, if confirmed. Senator Peters. Right. Well, thank you. I look forward to that as well. The American Federation of Government Employees (AFGE) represents about 700,000 Federal and D.C. Government employees. It makes it the largest Federal employee union in the Country. AFGE sent a letter to this Committee expressing opposition to your appointment, Ms. Cabaniss. Mr. Chairman, I would like to have that letter entered into the record\1\ without objection. --------------------------------------------------------------------------- \1\ The letter referenced by Senator Peters appears in the Appendix on page 145. --------------------------------------------------------------------------- Chairman Johnson. Without objection. Senator Peters. Related to the letter, if I may ask a question. In 2007, the FLRA, when you were the Chair of that organization, ranked last among small Federal agencies in the Best Places to Work in the Federal Government rankings. Of note, employees expressed very high levels of dissatisfaction with senior members. So, as Chairman of the FLRA, what steps did you take to address this low employee morale, and how did you confront what was at the time appearing to be a difficult problem? Ms. Cabaniss. Well, it was difficult because it was a time of change. That when I arrived at the FLRA, I found a lot of deficiencies related to human resources (HR) management, procurement, acquisition issues. There were just a lot of deficiencies. Employees were not treated equally. So there were a lot of changes that we made in policies and agency guidance to be consistent not only with the President's Management Agenda, but ensure that employees were being treated fairly. I understand that some of these changes were not necessarily popular, but they were things that we really needed to do to be good stewards of the taxpayer dollars but to also ensure that merit principles were being followed because employees were not necessarily being treated fairly. We discussed a lot of these issues with the component heads of the different independent components of the FLRA, and the career employees with agency-wide responsibilities who reported to me worked a lot with other career managers, and those managers also talked with their employees. So you are right. It was an issue, and I understand that morale was not necessarily great, but there were also external forces that were threats to the agency at the time. The Department of Homeland Security (DHS) was looking about whether or not collective bargaining was consistent with national security. This was an ongoing debate after September 11, 2001 (9/11). The Department of Defense (DOD) was looking about potentially creating its own personnel system and going away from the jurisdiction of the FLRA. So at the same time we were making internal changes, there were threats to the agency that probably would have costed about 60 percent of its jurisdiction. So I understand that there were concerns about the future of the agency, as people had come to know it, but there was not really anything that I could do to promise that Congress was not going to make these changes. Senator Peters. So, if confirmed as Director of OPM, your agency will be the leader of HR management for millions of Federal employees as well as retirees. So based on the answer you just gave me related to the FLRA, is there anything specifically that you would do differently as the Director of the OPM, and as the Chair, what were some of the lessons learned, and how do you think things may be different? Ms. Cabaniss. Well, I think any opportunity that you have to be a leader and a manager, you have constantly got to be learning from each experience, that you have that you never stop learning. I think change is a constant in our world today. We have to help figure out a way to communicate more with our employees to help them manage the anxiety and the valid feelings that come about with that change and try and provide as much information as possible, knowing that we are not going to be able to promise that the world is not going to change, but do what we can so that people feel like they have enough information that they can help make an informed decision about what they want to do and just kind of manage those emotions around that change. Senator Peters. As I mentioned earlier, since OMB released the Administration's governmentwide reorganization proposal in June 2018, Members of this Committee have been asking for some basic information about these plans detailing estimated cost, implementation timelines, and an analysis of the expected impact on the Federal workforce. In your written responses and during your staff interview, you have emphasized the importance of congressional oversight and of justifying major organizational change with a business case or a cost-benefit analysis. I think that is an accurate representation of how you have approached this issue. So my question to you is, if confirmed, will you commit to go through a very thorough evaluation of the existing analysis and justification supporting any reorganization efforts already underway? Ms. Cabaniss. Yes, Senator. Obviously, what I know about the reorganization plan now is based on the President's Management Agenda and what was in the budget request. In our discussions, one point I did raise was I am not sure about using cost-benefit analysis as a term of art. In my experience working on the Appropriations Committee, when agencies came to us wanting to restructure certain offices to make realignments or, for example, changing the Bureau of Public Debt to the Fiscal Service, I do not think that I ever saw a cost-benefit analysis. I tend to think of that more in terms of when people were looking at agency, the promulgation of regulations. But I agree with you, absolutely, from sitting on the other side. I know that you have to get all the information you need to best understand it and particularly since, as I read the Management Agenda, it envisions the need for legislation. So the only way to get legislation to be able to effectuate this change would be to work with Congress. Senator Peters. Well, I am out of time. Just to follow up, a quick answer. So, as you go through that process, will you commit to sharing any analysis or any supporting data with this Committee--that all that will be transparent and shared with us? Ms. Cabaniss. As a private citizen, I do not know what is available, and I do not know whether there is any of it that--I do not want to overstate, but obviously, I would do all I could to be as transparent as possible and provide you everything that I am able to. Senator Peters. Thank you. Chairman Johnson. Senator Hassan. OPENING STATEMENT OF SENATOR HASSAN Senator Hassan. Well, thank you, Mr. Chair and Ranking Member Peters, and thank you to Ms. Cabaniss and Mr. Wooten for being here, for your service. Thank you to the families too. Both of you spoke of the service in both of your families. It is quite impressive to see two nominees here with families with such extraordinary records of service, and we are very grateful to you and your families. Ms. Cabaniss, I wanted to start and follow up on something we began to talk about when we met last week. It is no secret that the current Administration is openly hostile toward Federal employees and the unions that represent them. We have seen attempts to dismantle Federal employee unions, eliminate official time, bargain in bad faith, and use employees as pawns in a politically driven government shutdown. In our meeting last week, I made it clear to you that it is the job of the OPM Director to advocate on behalf of the 2 million Federal employees who serve the American people and ensure that these employees are valued and respected. I believe this includes supporting Federal employees' rights to organize. So, Ms. Cabaniss, do you agree that it is in the public's best interest to allow collective bargaining and the other activities that flow from it, which promote the recruitment and fair treatment of a modern Federal workforce? Ms. Cabaniss. Yes, Senator. As we discussed last week, the statute that we administered at the FLRA finds that collective bargaining is in the public interest. Senator Hassan. Thank you. And will you unequivocally commit to support Federal employees and their right to organize, despite the efforts of the current Administration if you are confirmed? Ms. Cabaniss. Yes, Senator. I will follow the statute. Senator Hassan. Thank you. My office is increasingly hearing from constituents about their frustration with the amount of time it takes OPM to process their Federal employee retirement benefit claims. These delays place a significant financial hardship on individuals and families who provided a great service to their country, and they deserve better. Ms. Cabaniss, are you aware of these processing delays and the financial hardships that they cause? Ms. Cabaniss. Yes, Senator. As we discussed, for as long as I worked in the Senate, my entire career, the issue of delays in retirement processing has been a consistent problem, unfortunately. Senator Hassan. Yes. Ms. Cabaniss. As I mentioned in my own experience, it took me 6 months to receive a check after I retired. Senator Hassan. Right. Ms. Cabaniss. And I would like to think that I am an outlier, but I am afraid I am not. Senator Hassan. If our constituent calls are any indication, I think you are not. So, if confirmed, what steps will you take to discover the causes of these delays and address this pressing concern? Ms. Cabaniss. I think we really need a bottom-up review to see what is working, what is not. I know that we are always going to have some paper, and until those of us who retired who came into the government, and so you have that competing demand of trying to modernize and make electronic applications and electronic transmittal of information from agencies to OPM, but you are still going to have paper in caves in Pennsylvania for those of us who came in, in a different era. I do not think you want to redirect resources to digitizing that paperwork. But that said, I really think we do need a bottom-up review because this has been going on for too long. I know they are making progress, but it is not sufficient progress. I would really like to look and see, in addition to finding out what works with the folks at Boyers and where they are finding success. I would also really like to look somewhat to the public sector--large pension plans, States--and see what we can learn in terms of best practices from other people and other kind of retirement programs to see how they have done because I think we have to find a solution. Senator Hassan. Well, it is good to hear your thoughts on that. If confirmed, will you commit to reporting back to my office within 60 days with an explanation of what is causing the processing delays as well as your plan to address it? Ms. Cabaniss. I will certainly report back to you in 60 days with about what I have been able to find so far, if confirmed. Senator Hassan. OK. Understood. I wanted to follow up with you on one of the topics that Senator Peters and you began to discuss, which is cybersecurity. It has been one of my top priorities since joining the Senate and really have been trying to look at different ways we can strengthen government cybersecurity, and Senator Peters mentioned our legislation about a cybersecurity rotation. It is really clear that we cannot defend our country against domestic and foreign cyber threats unless we employee a highly skilled cybersecurity workforce across the government. OPM plays a critical role in ensuring that the government is adequately staffed with talented cybersecurity personnel. You have discussed some ideas you have in this regard, but can you expand a little bit on how you plan to address challenges to recruiting and retaining cybersecurity professionals to ensure that the United States is protected against cyber threats and vulnerabilities, if confirmed? Ms. Cabaniss. Yes. I think what you all have done is a great first step, and I think it really does somewhat institutionalize things that were started during the Obama Administration with the digital service and the information technology (IT) and oversight reform group that was in the White House that was brought in, people who came in from industry and essentially did what you are now going to institutionalize, but have people who could go from problem to problem. I am really interested in talking to industry to figure out how they can convince people to come work in the Federal Government. I would love to go back and talk to the three Federal Chief Information Officers (CIOs) that I worked with in the Obama Administration to see how they were able to recruit people in and then also what flexibilities that we already have or that we can consider to try and convince people to come in and essentially do tours of duty working in cyber because we are not going to be able to compete for the long haul. Also this next generation of cyber experts is not going to work for the government for 33 years, like I did. I am really interested in talking to industry about how we can appeal to these people and what we can do to make this a place that is more interesting for them to work. Senator Hassan. Well, thanks for that. I hope we can make the case to this workforce because we really need them, and it is critical to our Nation's security. Ms. Cabaniss. I agree. Senator Hassan. Thank you, Mr. Chairman. Mr. Wooten, I do not have any questions for you. I look forward to working with you, though, and thank you for your service. Mr. Wooten. Thank you, Senator. Senator Hassan. I yield. Chairman Johnson. Senator Sinema. OPENING STATEMENT OF SENATOR SINEMA Senator Sinema. Thank you, Mr. Chairman, and thank you to our witnesses for being here today. Arizona is home to over 50,000 retired and 30,000 current Federal employees, and these employees provide security at our borders, they support our veterans, and they manage our absolutely beautiful public lands. Many of these employees are dedicated to both the mission and service, and I want to make sure the Federal Government ensures they are properly supported in their efforts. Unfortunately, that does not always happen. In Arizona, there is a crisis at our border. Customs and Border Protection (CBP) officers and agents are currently exhausted. They are being detailed outside their scope of expertise. Many are working 16-hour shifts to make up for staff shortfalls. We also are experiencing a shortage of VA staff and clinicians, and it has been challenging to attract critically needed staff in rural areas. We can only meet these challenges with a strong OPM Director who will ensure the Nation's human resources department is ready to assist, and that is why it is so important for me to better understand the perspective of your opinion on the Administration's proposal to merge OPM into the General Services Administration (GSA). Congress needs to know that the Director will do what is right for Federal employees and the citizens who rely on Federal services, and while this proposed merger has been presented as a cost-saving and efficiency-gaining mechanism, we have not received any significant analysis that shows that the merger will achieve those goals. We have not seen a legal analysis of the legislative authorities required for the merger to advance nor a business plan outlining the case for implementation, a timeline, impact on current employees, or more broadly, if this merger is even possible. So we want to see all of the analysis that OPM has developed. So understanding how you will handle these requests will help us all understand how to approach your nomination. If confirmed to this position, what are the key factors that you will use to determine if this merger is a good business plan for our Country? Ms. Cabaniss. I think as a private citizen, I do not have a lot of details on what is going on. I know what I have seen, but I think what is going to happen, at least from what you can tell from the President's budget request, is that a lot of this is going to require legislation. So what I would want to do would be to work with Congress and all of the stakeholders to make sure that we can work on reaching a conclusion that we think will actually be effective and will really help because the people, policy, and programs of OPM have to continue. It does not matter where they sit. Those things are critical, and they are critical to the functioning of government. I commit to you, Senator, if confirmed, I would work with this Committee and anyone who is interested to make sure if on any kind of legislative implementation plan, to make sure that it is addressing people's concerns. Senator Sinema. Thank you. What steps do you see yourself taking if during your review of OPM's work to date on this merger, if you find that the merger does not make sense from a business case or if there are technical problems? What kind of steps do you see yourself taking if you were to review that and have concerns? Ms. Cabaniss. I think, again, Senator, that I would approach it by working with Congress and working through those issues. I have had some experience in working in the Senate on working very complex, contentious issues, with a lot of different opinions, a lot of different stakeholders, and I feel like I have had a significant amount of success in kind of trying to bring people together to reach a resolution. So that would be the same approach that I would take to this process. Senator Sinema. Thanks. Just another question about this merger. If confirmed, as you are moving forward with the merger, would you be willing to ensure that a legal analysis is done to assess what legal authorities are needed to support the merger and, of course, share those legal outcomes with the Committee and make sure that we are working closely to draft legislation that might require legal changes? Ms. Cabaniss. I think any consideration of legislation, you would have to do that kind of analysis. Otherwise you would not be able to, it would be critical to the drafting. Senator Sinema. Finally, my last question for you is, What do you see as the role of the OPM Director in protecting both our Federal workforce and our Federal retirees? Ms. Cabaniss. I think it would be an incredible honor, if confirmed, to have this job, just the paramount role of the Director to protect the civil service and merit principles and those retirees. I was talking to someone the other day, and we were discussing how when you become a Federal employees, the only agency that you really interact with your entire life is OPM, and whether it is even after you have gone on, your survivors. So we have to make sure that we get it right. Senator Sinema. My last question for you is about information technology. As you know, information technology capabilities is a key factor for ensuring that we have efficient government operations, and one of the first questions that many have regarding a merger, such as the one proposed here, is whether or not these existing computer systems can work together effectively. We have certainly seen how sometimes computer systems in various agencies do not communicate well with each other. So what would be your plan to ensure that the merger works from an IT perspective and that we were seamlessly moving folks from one database to another or one platform or system to another? Ms. Cabaniss. I think there would just have to be a real partnership between me and the CIO, who I have met with, and as well as the Office of Inspector General (OIG) and their folks who work on IT. I have had the benefit of working with the OPM Inspector General (IG) over the years on IT issues related to the breach. I think they play a really important role to making sure that any kind of risk assessment is done and that no changes are made until people are confident that there is not going to be a problem because the last thing that we need to do is make things more difficult for Federal employees. Senator Sinema. Right. Thank you so much. Thank you, Mr. Chairman. Chairman Johnson. Senator Hawley. OPENING STATEMENT OF SENATOR HAWLEY Senator Hawley. Thank you, Mr. Chairman, and congratulations to both of the nominees today. Great to have you here. I look forward to working with you. Ms. Cabaniss, let me start with you. You and I were discussing earlier today data privacy, data security. That is something that is very important to me. As Attorney General of the State of Missouri, I launched an investigation of the Equifax data breach, which affected quite a few members of my State, residents of my State. The OPM data breach predated Equifax's, and I am afraid it was quite a bit larger. If confirmed, you will enter the job of Director at a time of heightened threats to our IT infrastructure. What lessons and best practices will you bring to OPM to ensure that it is appropriately fortified, shall we say, and that the sensitive personal information of Federal employees is protected? Ms. Cabaniss. I would continue to work with the OIG's office, as I mentioned that I have worked with before on the breach. I have had an opportunity to meet briefly with the new CIO and the Deputy CIO. I am more positive about OPM's IT improvement than I have been in the past. They came from Digital Services. They are part of the original group who came in during the Obama Administration. They are just incredible technical people who really are here just because they want to serve. And that I would also want to work with the Government Accountability Office (GAO) because I have worked with them as a partner, both their information technology people, but also their cybersecurity group, just to make sure that you have that second, third set of eyes to make sure we are doing what is right. As I mentioned to you, OPM was one of the largest breaches when I worked on the Committee, and my information was compromised as well. But it was not the only breach. We had significant breaches at the Internal Revenue Service (IRS) and some other agencies that were not necessarily in the press. I have always found GAO to be an incredible partner in kind of having that overview because they got their finger on their pulse with DHS and the United States Computer Emergency Readiness Team (US-CERT) and knowing what the best practices are. I really think it would be a collaborative effort. I am not an expert, but I know where the experts are. Senator Hawley. Thank you for that. Let me draw your attention, both witnesses, to a story that ran in the New York Times with this headline, ``How Chinese Spies Got the National Security Agency (NSA's) Hacking Tools and Used Them for Attacks.'' Several weeks ago, the Wall Street Journal ran an expose on China's use of U.S. satellites, and every week we read about another technology that has been stolen by our adversaries, particularly China. If confirmed, you will both oversee large portions of the Federal Government that are directly affected by these stories, the management of the Federal Government's workforce, Inspector General, and of course, the technology that the government acquires. Can you each describe for me why our government, which is the strongest in the world, appears to be so vulnerable? What is your view on this, and what changes do you propose to be made to address the kind of vulnerabilities that we are seeing reported in the press? Dr. Wooten, I will let you go first. Mr. Wooten. Well, thank you, Senator. I agree that that is one of the most concerning areas of vulnerability for the United States. There are large nations that obviously can shore up military threats to the Nation, but the cyber threat is one that can be shored up by large small nations and even non-state actors. If confirmed, I would work with the appropriate agencies, the Chief Information Security Officer (CISO), and others to look at resources that are necessary from a contracting perspective and ensure that we do not have procurement regulations that get in the way of getting the type of cyber defense resources that we need. Senator Hawley. Just on that last point, Dr. Wooten, are you aware now of any such procurement regulations that you think are a hindrance to getting the resources that you need? Mr. Wooten. Well, Senator Hawley, thank you for that clarification question. Actually, as it stands right now, I am not presently aware, but I think because of the nature of the cyber threat, we have to continually scan the environment, and I think that is a question that I would need to put to the leadership from time to time. Senator Hawley. Yes. Thank you very much. Ms. Cabaniss. Ms. Cabaniss. I would definitely want to work with Dr. Wooten, and the reason I say that is based on my experience working on the Appropriations Committee and breaches that happened at large agencies, small agencies, too often there was a pattern. Sometimes it was just lack of skill when it came to project management, agencies thinking they needed to create their own systems in-house as opposed to seeking expert advice from other agencies or having difficulty developing their own requirements and then going to contractors who would write the requirements for them. The people in the agency might be great experts of what their agency did, but they were not IT experts. I would really like to work with your office to find ways to like leverage that expertise because I think some of the problems are agencies just operating in their own siloes and their own systems, creating vulnerabilities without even realizing they are doing it. Senator Hawley. Very good. Dr. Wooten, a final question for you. Some of the procurement policies in the Federal Government, especially in the tech sector, are of concern to me, and I would like to get your views on them. In particular, I recently had the chance to ask the Chairman of the Joint Chiefs about Google's behavior and avoiding contracting with the U.S. Government, DOD, and instead partnering with China. And he went further to say that he believes Google partners with China in ways that directly threaten the security of the United States. From your perspective, what needs to change on how the U.S. Government engages in contracting with tech companies, and how do you see your role if you are confirmed in integrating DOD's procurement policies with those of OMB? Mr. Wooten. Senator, thank you for that question. The fact is that there are many nontraditional--if I can use that term--nontraditional contractors who are reticent to work with the Federal Government. They see us as too cumbersome. Some of the smaller companies see us as a bit cumbersome, and those are the very companies that we need to work with often in looking for the right solution for cyber response. If confirmed, I will look for opportunities to find the best practices in Federal Government where agencies are able to find innovation within the four corners of the Federal Acquisition Regulation (FAR), the existing innovation that they are already free to choose. I would also consider hearing recommendations for innovations that perhaps are outside of that, to include understanding the judicious use of the transaction authority. Senator Hawley. Thank you very much. Thank you, Mr. Chairman. Chairman Johnson. Senator Carper. OPENING STATEMENT OF SENATOR CARPER Senator Carper. Dr. Wooten, before I arrived here, I understand in your opening statement, you spoke of your family's military service. Would you just in a nutshell tell me what it was? I heard Navy, maybe Marine Corps. Mr. Wooten. Thank you, Senator Carper. I am proud to say this in a nutshell. My father was a sailor for 20 years, and he retired as a senior chief in the Navy. My father-in-law was a sailor and Naval aviator, and for 30 years, he served and retired at the rank of Navy captain. I also served in the Marine Corps. We will admit that it is naval service. [Laughter.] I served for 20 years. Collectively, that is a legacy of 70 years of naval service, and I am particularly honored that we have that legacy. So thank you for asking that question. Senator Carper. If you add together my service, retired Navy captain, not counting sometimes a midshipman, my dad's service as a chief petty officer, it would be I think about 60 years. So we salute you and your dad, for you family for your service. Thank you. Mr. Wooten. And likewise, sir. Senator Carper. I loved doing it. I have a question, if I could, Dr. Wooten. I would like to highlight a concern about the current Administration's lack of cooperation with some oversight entities, with I think legitimate requests for information. Several months ago, Senator Udall and I asked the Environmental Protection Agency (EPA) Inspector General to review an EPA decision to repeal emission limits for glider trucks, which are really diesel trucks, old diesel trucks that have a new exterior. Diesel engines are big polluters. Trucks, cars, boats, trains. A diesel engine is a big polluter of particulate matter, also something called ``black carbon,'' which is a lot more dangerous that just regular carbon dioxide. But the EPA IG has been investigating the EPA's role and the OMB's role in issuing this regulation. Just last week, for example, the EPA IG sent a rare letter to Congress noting that the OMB is failing to respond to the EPA IG request for information about the OMB's role in issuing this rule. Similarly, earlier today, my staff met with the GAO on a number of audits and investigations involving the OMB, and during their conversation, the GAO notified my staff that the OMB was recently asked by the Comptroller General--that is Gene Dodaro, whom you may know--was asked by the Comptroller General for the OMB to be more responsive, to be more transparent and cooperative with the GAO. I find it concerning that the OMB is not being fully cooperative with oversight entities whose job it is to do oversight, to be a watchdog. If confirmed will you commit to respond to oversight requests, including requests made by Congress, by agency Inspectors General, and the General Accountability Office? Mr. Wooten. Senator, thank you for the question. Senator Carper. You are welcome. Mr. Wooten. If confirmed, I will be responsive. I believe in transparency. Senator Carper. Thanks so much. Let me just ask also, What would you do to ensure that the OMB as a whole is more responsive to underlying legitimate oversight requests? Mr. Wooten. Senator, if confirmed, my role, as I understand it, as Administrator for Federal Procurement Policy, would have me in that particular lane. I would, as a good partner, though, ensure that any information as required from my particular office was forwarded to the OMB at large so that we could provide timely responses. Senator Carper. Thank you. Ms. Cabaniss, has your last name ever been mispronounced? Ms. Cabaniss. Just a few times. Senator Carper. Maybe even today? Chairman Johnson. Not by me. [Laughter.] Senator Carper. And how do you gracefully when people say, ``Ms. Cannabis''--how do you gracefully tell them that your name is Cabaniss? Ms. Cabaniss. I just let it go. Senator Carper. I thought you were very gracious, and I am sure it has happened many times. It happened as we were preparing for my meeting with you earlier this week. Alright. Ms. Cabaniss, I am concerned that this reorganization proposal, which we discussed yesterday--thanks for spending the time with us, but this proposal in the President's budget proposal, which slashed in some cases agency budgets across the board and other Administration actions like unnecessarily shutting down our government earlier this year, are having a serious effect on morale across the government, and not only morale, but the ability of the government to recruit and retain a world-class workforce. In this Committee, the Chairman and others on this Committee, myself, worked for years with the Secretaries of Homeland Security in order to try to bolster the morale of that agency, and finally, after years and years of trying, we saw a great deal of improvement in that morale. And we see it now just being dissipated, which is tragic for those of us who care about this. But, if confirmed, what will you do, what would you go to improve morale at OPM and across the Federal Government? Ms. Cabaniss. Well, I would work with the Chief Human Capital Officers (CHCO). I would like to find out what they think best makes employees know that they are valued. I have been through shutdowns several times, unfortunately, nothing to the extent of this one. I have seen the impact that it had on my fellow workers. So I think I very much empathize and understand that it is difficult for employees because they are caught up in something that really has nothing to do with them. I would definitely want to work, at least at OPM, with the career managers and the OPM unions just to figure out what they think is the most effective way of communicating that message to employees that they are valued and that we support them and they are critical to our achievement of our mission. Senator Carper. When I served as Governor of Delaware, we had a huge focus for those 8 years on raising student achievement, and one of the things I would do is--we have 19 school districts in our State. Each district chooses their own Teacher of the Year, and one of those 19 is chosen as the Delaware Teacher of the Year. I used to invite them all in for lunch in June when school was over and just to talk for 2 hours about what was working in their classrooms to raise student achievement. You may want to take a similar approach and look at some agencies. A good place to start is Homeland Security. For years, almost dead last. For years, almost dead last. And there are other agencies that for years are like right at the top and from different Administrations. I would like to see you find out what works, do more of that, find out what does not work and do less of that. You may want to stop and take a look at particularly Homeland Security, which was a laggard forever, and then it finally rose from the ashes and at least until recently was a role model there. One last quick question, if I could. How do you plan to work with frontline Federal employees in implementing the reorganization proposal before us? Ms. Cabaniss. As I have mentioned earlier, as I understand the President's proposal, it is going to require legislation for some of the changes to be effectuated. I would want to work with stakeholders to make sure that people have an understanding of how any changes would need to be implemented, working with Congress, but with employees, I think the more we can do just to communicate that information and be transparent, I think would be helpful. As I mentioned earlier, I think change is a part of life. In government, it is the same, and the private sector, but we need to make sure that employees, to the extent that we can, that we have a transparent process, that they know what is going on, and while we cannot necessarily guarantee an outcome, we can provide people with enough information to help them manage the concerns that they might have about any change. Senator Carper. My time has expired. I am going to submit a question for the record, Dr. Wooten, to you about improper payments, overpayments, underpayments, mistaken payments, which added up last year to about $140 billion. This is a huge amount of money for our government. We have been working on this again for years, and we are not going to give up. I would just ask you to take a look at that question for the record and give me a good response. $140 billion, one year alone, that is a lot of money. Thank you. Mr. Wooten. Thank you, Senator. Chairman Johnson. Senator Lankford. OPENING STATEMENT OF SENATOR LANKFORD Senator Lankford. Thank you. Thanks to you all for going through this process. It is not a fun process, but we really need good folks to be in these roles. So I appreciate you all going through the process and reaching this point. Dr. Wooten, let just, I guess, tell you a story real quick. I met with one of our generals at one point in the military to be able to ask about procurement around their base, and I said, ``What do we need to tweak on the Defense Federal Acquisition Regulation (DFAR)?'' He did not hesitate. He said, ``You do not need to tweak. You need to throw the whole thing away.'' All of our acquisition process, it is so bulky and so expensive and so difficult. We have to start all over to be able to figure out how to do this. We desperately need people that know the system to make recommendations to us on how acquisitions are done in the contracting because we are getting too few small businesses. We are getting too few hungry businesses that want to engage and to get into Federal contracting. We are having more and more folks say, ``It is too hard, too difficult. I am not going to even try,'' so we get larger and larger and larger companies, which love the regulations because they are the only ones built to do it, and so there is less and less competition in the process. How can we lean on you and get information from you on how to fix the problem? Because some of the things, you can help manage, but we do not need to manage some of these. We need to blow up and rebuild some of these areas. How can we do that? Mr. Wooten. Senator Lankford, you have asked a very thoughtful question, and thank you for that. That way, I can address it for the record. The procurement process--or let me say the Federal Acquisition Regulation--has evolved over decades as a result of statutes, as a result of regulations, and as a result of case law, and it is now a Gordian Knot. And what I believe that you were suggesting is that we find someone who can come in and cut the Gordian Knot. Senator Lankford. Right. Mr. Wooten. I do not know where to cut the knot. What I do know is that what has worked for us in drawing out incremental improvements is to rely on the rulemaking process to make sure that all stakeholders can get involved and slowly make tweaks. As we start talking about the need to gain some more rapid momentum--and you have made that case, and so have some of your colleagues, particularly in the area of IT and cyber defense, some of the quick win opportunities, I believe, would be found in, again, being able to identify and then publicize successes in innovation that are happening within the four corners of the FAR. Too often, the answers that people have gotten--and I have been that customer wearing the uniform. Too often, the answers that we have gotten is the ``no,'' ``No, I cannot,'' because ``no'' is safe. Senator Lankford. Right. Ms. Cabaniss. ``No'' needs to no longer be safe. Senator Lankford. So another quick story. I saw a new piece of hardware. I will just leave it at that. I went to go visit to see what happened. It has been in process for years. I go see the new hardware. The first thing they do is fire up the computer, and then we stand around and talk--I do not know--6 minutes while it is booting up. I looked at it and said, ``Is it booting up, or is it having a problem?'' And they said, ``Oh, no. This is the first thing we are going to have to replace is the computer system because it was all built on the technology from 10 years ago. So, as soon as we get it, we have to replace it immediately.'' What in the world? That it is built in our system that there is a problem. I always know anytime that anyone is told no that had the contract last year, if they lose it, we are guaranteed they are going to dispute it so they can still have the contract for at least another year and they are guaranteed those dollars and that flow while we are actually fighting it out. There are issues in our system that were built to be able to protect all voices to make sure everyone gets heard, which is good, but what it is really doing is preventing small companies from getting in and allowing more voices to be heard. We are actually getting fewer, and you have to know the system and have the legal background to be able to actually get engaged. And most folks will say, ``It is not worth the trouble. I am going to spend months and thousands or millions of dollars trying to compete to go get this big contract, and at the end of it, somebody is going to beat me that knows the system better, so why bother?'' I want to help with this. There are many of us in this Committee that want to help with this. We need practical ideas as we go through it, and so we are looking for more interaction as we go through the process, not less. The last thing we want to have is this is the last time we see each other or for you to assume there is a lot to get done and so I will work on my stuff and wish this was different, whether it is dealing with off-the-shelf technology that often works, but every agency wants to do their own personalized stuff rather than off-the-shelf, or whether we try and fix the acquisition process. I want us to get away from the assumption that as soon as we buy equipment that has a computer attached to it, the first thing we always have to do is replace the computer. We should definitely get away from that rather than just buying something twice. So we look forward to partnering together on that. Let me switch over. Thank you for coming by to be able to visit and us be able to walk through some things. Can I ask you, How do we deal with USAJOBS and to make it as efficient as we possibly can? To go through the process, just to go through history that you were not there for, but USAJOBS was originally run by Monster. It was run for about $6 million a year. We took it in- house, the Federal Government did in 2011 or 2010, somewhere through there, paid $6 million to create the new platform, then $12 million to run it every year. And we get constant complaints from people that cannot find any of their listings on USAJOBS, or if you do not know the secret keywords to be able to get to it, you cannot actually navigate it. How do we fix this? Ms. Cabaniss. No, I agree with you, Senator. I really think, much like retirement processing, we need a bottom-up review of that, because I have seen that very experience with colleagues of mine who have tried to look for Federal jobs and could not find congressional liaison jobs in Washington, DC. Senator Lankford. Right. Ms. Cabaniss. Things that were very easy to look for. Also, besides USAJOBS and the problems with I think that relate somewhat to the technology is the problem is what happens on the other side once someone goes through USAJOBS, and a lot of the frustrations come from lack of information from agencies on the other side, not even an acknowledgment that an application has gone through or not any information about whether a position has already been filled. So I think, again, it is something that we have really got to take a look at because when my kids can apply for a job on their phone and get an answer within--one of them did in a matter of hours, a response. I do not know how we compete against that. Senator Lankford. Yes, we are currently not. We are having a difficult time in the USAJOBS. It is taking over 100 days to actually do retiring, and if you get all the way to retirement. Great. Thanks for your service on this. Wait 6 or 8 months before your retirement actually begins because we are trying to figure out how to do the processing. Not that you have a few problems to be able to solve, but we are counting on you to be able to take the job. Ms. Cabaniss. No, but I think that is a huge issue because, as you and I discussed, I am most concerned about bringing in that next generation of Federal employees, and we just cannot have obstacles that discourage them from trying to get a job in the Federal Government. Senator Lankford. Yes. We continue to want great folks. So thank you to both of you for stepping up to be able to take this on. It is a critical moment. Chairman Johnson. Thank you, Senator Lankford. Before I ask my questions and close out the hearing, Senator Peters has a question. Senator Peters. Thank you, Mr. Chairman. Ms. Cabaniss, just one final question. As you know, the reorganization plan that we have been talking about through this hearing is complex, and it can raise some novel questions of authority as well. So, if confirmed, what will you do if you are directed by either the White House or the OMB to take a specific action that you believe is outside of the OPM's legal authority? How will you handle that? Ms. Cabaniss. Senator, I would strongly try and explain that throughout my career, whether it was in the Senate or in the Executive Branch, everyone I think has an expectation that I do not tell people what they want to hear. I tell people what they need to hear. So I think I would always be an advocate to try and make sure that people had the information they needed. Senator Peters. That they would have the information they needed to realize that it is outside the authority? Ms. Cabaniss. Absolutely. Senator Peters. And would you be willing and will you commit to making sure this Committee, both the Majority and Minority, are aware of that instance in the name of full transparency as to what is going on? Ms. Cabaniss. Yes. I think that would be part of the organic process of discussing legislation. I mean, I think if there is going to be legislation that is going to come up here that is going to be needed to effectuate some of these changes, it is going to be clear on its face where there are gaps, where you need legislation, where you need different legal authority. There may be disagreements about that. I am sure we will engage, if confirmed, in robust discussions within the partners of the Administration but as well as the Hill about what authority is needed. Senator Peters. Obviously, on the legislation you are bringing forward, we would have that conversation, but the question is, if you are being asked to do something that you think is outside that scope, certainly we need to know that here on the Committee. You would be willing to come to us and say, ``I think this is something that you need to look at?'' Ms. Cabaniss. Senator, I think it would be clear on its face, but yes, I would have that discussion. Senator Peters. OK. Thank you. Chairman Johnson. Thank you, Senator Peters. Dr. Wooten, I could not help--I think I saw kind of a smile when Ms. Cabaniss was talking a little bit about the records in a cave on retirement. First of all, I think we should stipulate for the record, they are actually in a four-drawer file in that cave. So it is not a total lost cause. But it gets to be really kind of the question that Senator Lankford was talking about. How do you acquire? When do you design a system internally versus buying something off the shelf? Now, the Federal Government is not the first entity that has transferred paper records into a computerized system. It boggles my mind that we are still here in 2019, and it has not happened. Can you just kind of speak from the standpoint of acquisition and procurement or policy-wise, how do we grapple with that issue? How do we enforce a process where you really do try and use what is available in the private sector and try and minimize the customization to it as much as possible? Because let us face it, the customization has proved not to work too well, particularly for the Federal Government. Mr. Wooten. Well, Mr. Chairman, thank you for that question. I am pleased to be able to go on the record to address some things that I think can outline perhaps opportunities for the Federal Government and for Federal Procurement Policy. First, in America, we are doing it right, but oftentimes, that is on the private-sector side. That is where we can learn some lessons. We can learn from what they are doing, find out what the private sector is doing to be able to procure the IT solutions it needs and then see if we cannot do that within the existing four corners of the FAR. I think that is the first and prudent, necessary step. Next, as you mentioned and I think I have heard several of your colleagues discuss, oftentimes in the Federal Government, we procure commercial off-the-shelf (COTS) products, but then we proceed to break the COTS solution and try to retrofit it into the peculiar set of government policies or practices. That needs to end. We need to look at the COTS solutions and, before we procure them, ask ourselves if we can retrofit the process instead of the product, and if we can retrofit the process and align government business processes to work with the existing COTS solution, then we truly have a commercial off-the-shelf solution. Lastly, sometimes we do have large acquisition systems; in particular, on the DOD side, military weapon systems. As we used to say at DAU, every major weapon system is an IT procurement system, and when you have that realization, of course, that means you are going to be doing some development. We need to figure out better ways of doing the development for customized solutions so that we do not realize 2 and 3 years down the pipeline that we have built our way to something that is already antiquated. Chairman Johnson. That made way too much sense. [Laughter.] Thank you for that answer. Mr. Wooten. Thank you, sir. Chairman Johnson. Ms. Cabaniss, I should have asked you this in my office, and I did not. So this is coming a little bit from left field, but it is an issue kind of dear to my heart because I ran a manufacturing plant 24/7, 365 days a year. The only way you can do that industry, the way it is done in industry--I am not really aware of any exceptions--is with four shifts. Now I come to the Federal Government, and particularly in areas of law enforcement, like Customs and Border Protection, many of these law enforcement agencies have to operate continuously, and yet we do it in three shifts. And it makes no sense to me. I just kind of want to get your thoughts on that. I have written oversight letters trying to get some sense to where there may be some operations operating with four shifts, but can you just kind of speak to that? Ms. Cabaniss. Senator, I am not familiar with that, how many shifts there are, but it certainly--as I mentioned to you earlier, I am willing to explore anything that we can to make government operate more efficiently, and I am happy to work with you and your staff to try and learn more about it. Chairman Johnson. So consider this fair warning. It is going to be an issue I am going to continue to ask questions about because, again, what we are doing, in three shifts, over 168-hour work week, that is 56 hours, which burns people out. Again, I was just down at the border in El Paso. The Border Patrol likes the pay, but the hours burn them out. Ms. Cabaniss. Right. Chairman Johnson. Certainly, one of the many reasons why morale would probably not be as high as we would like to see it at all. Ms. Cabaniss. Right. Chairman Johnson. The other issue we are seeing too is just our inability to hire as quickly, as we are witnessing attrition in other areas. Can you just kind of speak to that issue? Ms. Cabaniss. No, I agree with you. I think that is an issue, and I think we need to make sure that agencies are aware of the flexibilities that they have, whether it is direct hire authority or temporary, but we also need to look at some of the proposals the Administration has put forward to try and figure out a way to bring people more on board more quickly, particularly in areas where we need people to come in for a discrete project, do that project and leave. We do not necessarily need them to stay in one particular area for an entire career. So we just need to look at all flexibilities. I mean, we have a system that is not really made for today's world, much less today's government, and I think we need to consider all available options. Chairman Johnson. OK. Again, I just want to thank both of our nominees for your willingness to serve, your past service. Again, I encourage you to work with this Committee. We are really here to help you perform your task as best you possibly can, and as well, our very legitimate oversight functions. I agree with Senator Peters. Please communicate with the Committee. If you are having issues or problems and stuff, those are things we do need to know, and it is a lot better being up front than hearing about it sometime later on in a hearing when it has not gone too well. I will read the final magic words here for the hearing. The nominees have filed responses to biographical and financial questionnaires, answered prehearing questions submitted by the Committee, and had their financial statements reviewed by the Office of Government Ethics. Without objection, this information will be made part of the hearing record,\1\ and with the exception of the financial data, which are on file and available for public inspection in the Committee offices.\2\ --------------------------------------------------------------------------- \1\ The information for Ms. Cabaniss appears in the Appendix on page 36. \2\ The information for Mr. Wooten appears in the Appendix on page 100. --------------------------------------------------------------------------- Again, I want to really thank you, and the hearing record will remain open until 5 p.m., tomorrow, May 8, for the submission of statements and questions for the record. This hearing is adjourned. [Whereupon, at 3:47 p.m., the Committee was adjourned.] A P P E N D I X ---------- [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] [all]