[Senate Hearing 108-963]
[From the U.S. Government Publishing Office]
S. Hrg. 108-963
NOMINATIONS OF REAR ADMIRAL DAVID STONE
TO BE ASSISTANT SECRETARY OF HOMELAND
SECURITY (TRANSPORTATION SECURITY
ADMINISTRATION) AND ALBERT FRINK
TO BE ASSISTANT SECRETARY OF
MANUFACTURING AND SERVICES FOR
THE DEPARTMENT OF COMMERCE
=======================================================================
HEARING
before the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED EIGHTH CONGRESS
SECOND SESSION
__________
JULY 13, 2004
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED EIGHTH CONGRESS
SECOND SESSION
JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska ERNEST F. HOLLINGS, South
CONRAD BURNS, Montana Carolina, Ranking
TRENT LOTT, Mississippi DANIEL K. INOUYE, Hawaii
KAY BAILEY HUTCHISON, Texas JOHN D. ROCKEFELLER IV, West
OLYMPIA J. SNOWE, Maine Virginia
SAM BROWNBACK, Kansas JOHN F. KERRY, Massachusetts
GORDON H. SMITH, Oregon JOHN B. BREAUX, Louisiana
PETER G. FITZGERALD, Illinois BYRON L. DORGAN, North Dakota
JOHN ENSIGN, Nevada RON WYDEN, Oregon
GEORGE ALLEN, Virginia BARBARA BOXER, California
JOHN E. SUNUNU, New Hampshire BILL NELSON, Florida
MARIA CANTWELL, Washington
FRANK R. LAUTENBERG, New Jersey
Jeanne Bumpus, Republican Staff Director and General Counsel
Robert W. Chamberlin, Republican Chief Counsel
Kevin D. Kayes, Democratic Staff Director and Chief Counsel
Gregg Elias, Democratic General Counsel
C O N T E N T S
----------
Page
Hearing held on July 13, 2004.................................... 1
Statement of Senator Dorgan...................................... 37
Statement of Senator Lautenberg.................................. 2
Statement of Senator McCain...................................... 1
Statement of Senator Snowe....................................... 41
Statement of Senator Wyden....................................... 2
Witnesses
Frink, Albert, Executive Vice President, Fabrica International,
nominated to be Assistant Secretary of Manufacturing and
Services, Department of Commerce............................... 23
Prepared statement........................................... 25
Biographical information..................................... 26
Stone, RADM David M., Acting Administrator, Transportation
Security Administration; nominated to be Assistant Secretary of
Homeland Security, Transportation Security Administration...... 6
Prepared statement........................................... 8
Biographical information..................................... 11
Appendix
Article dated April 8, 2004 from the National Association of
Manufacturers entitled ``NAM Applauds Nomination of Al Frink To
Serve as Assistant Secretary for Manufacturing'' by Hank Cox... 49
Letter to Chairman John McCain and Ranking Member Ernest Hollings
from Manufacturers in Support of Al Frink for Assistant
Secretary for Manufacturing.................................... 47
Letter dated July 11, 2004 to Hon. John McCain from Robert G. de
Posada, President, The Latino Coalition........................ 48
Letter dated July 12, 2004 to Chairman John McCain and Ranking
Member Ernest Hollings from Werner H. Braun, President, The
Carpet and Rug Institute....................................... 50
Letter dated August 14, 2004 to Chairman John McCain and Ranking
Member Ernest Hollings from Keith D. Nosbusch, President and
Chief Executive Officer, Rockwell Automation................... 51
Letter dated July 15, 2004 to Hon. John McCain from Christopher
P. Pearce, Director of Congressional and Regulatory Affairs,
American Furniture Manufacturers Association................... 51
Press Release dated April 8, 2004 from American Iron and Steel
Institute entitled ``Steel Industry Voices Support for Frink
Nomination'' by Nancy Gravatt.................................. 49
Press Release Statement from the Senate Democratic Leader Tom
Daschle........................................................ 50
NOMINATIONS OF REAR ADMIRAL DAVID STONE TO BE ASSISTANT SECRETARY OF
HOMELAND SECURITY (TRANSPORTATION SECURITY ADMINISTRATION) AND ALBERT
FRINK TO BE ASSISTANT SECRETARY OF MANUFACTURING AND SERVICES FOR THE
DEPARTMENT OF COMMERCE
----------
TUESDAY, JULY 13, 2004
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 3:05 p.m. in room
SR-253, Russell Senate Office Building, Hon. John McCain,
Chairman of the Committee, presiding.
OPENING STATEMENT OF HON. JOHN McCAIN,
U.S. SENATOR FROM ARIZONA
The Chairman. Good afternoon. Today, we'll consider the
nominations of Rear Admiral David Stone to be an Assistant
Secretary for Homeland Security, Transportation Security
Administration, with the Department of Homeland Security; and
Mr. Albert Frink to be Assistant Secretary of Manufacturing and
Services for the Department of Commerce.
Both nominees have responded in detail to the Committee's
requests for biographical and financial data. I will note that
Admiral Stone was jointly referred to the Commerce and
Governmental Affairs Committee. He appeared before the
Governmental Affairs Committee on June 23, and was reported out
of that Committee on July 6.
If confirmed, Admiral Stone will face some major challenges
at the Transportation Security Administration. Although it's
very clear that the level of aviation security has improved
since before September 11, 2001, there is significant room for
improvement. In my view, the TSA needs to be more aggressive in
the deployment and use of technology for screening of
passengers and cargo, it needs to better anticipate new
security threats, and, finally, the TSA needs to pay closer
attention to non-aviation modes of transportation.
Mr. Frink has been nominated to a new position in the
Department of Commerce. President Bush announced the position
of Assistant Secretary for Manufacturing and Services in
September 2003. The position was created to help address the
business challenges and job losses faced by many American
manufacturers.
We appreciate you both appearing before the Commerce
Committee today. I know your nominations are a great honor and
that your families are very proud.
I'll ask Senator Wyden and then Senator Lautenberg if they
have any opening statements.
STATEMENT OF HON. RON WYDEN,
U.S. SENATOR FROM OREGON
Senator Wyden. Mr. Chairman, I do, and I'll be brief. And I
very much share your view, this is a hugely important
assignment. And I have questions in a number of areas.
I do want to take note of the fact that I have just gotten
the agency's response to a number of pointed questions that
I've asked over the last year about the CAPPS-2 program,
Computer Assisted Passenger Pre-screening System. And it looks
to me, from the response that I've gotten to these questions,
that, for all practical purposes, the agency is going back to
the drawing board with respect to putting this proposal
together. And I'm going to ask Mr. Frink a number of questions
with respect to this.
And I think you know there are some other areas I'm
concerned about. Senator Dorgan and I are concerned about TSA's
policies with respect to allowing butane lighters to be
permitted onboard the aircraft. This is not a hypothetical
issue, because the shoe-bomber, Richard Reid, was trying to
detonate an explosive device onboard, and had--we have the
prospect of this policy, with the butane lighters being
onboard--certainly, there could have been yet another tragedy.
So I'll be asking a number of questions, but expect that
I'll be very pointed with respect to the CAPPS-2 program,
because it does look to me like the agency is really starting
over, and that may be very welcome, but the country deserves
some sense of direction with respect to how you're proceeding.
Thank you, Mr. Chairman.
The Chairman. Senator Lautenberg?
STATEMENT OF HON. FRANK R. LAUTENBERG,
U.S. SENATOR FROM NEW JERSEY
Senator Lautenberg. Thanks, Mr. Chairman.
This is the second chance that I've had to consider Admiral
Stone's nomination since the Government Affairs Committee, of
which I am also a Member previously considered it. And Admiral
Stone has lots of good qualifications, attributes that'll serve
him well and the country, if he's confirmed as Assistant
Secretary of Homeland Security and Administrator of the
Transportation Security Administration. And I assume that we're
going to move quickly on that confirmation.
But I have a bit of a quarrel, not with Admiral Stone, as
much as with TSA and DHS, and I thought maybe, as I listened to
Senator Wyden, that we were going to be echoing the same
concerns, and that is, the agencies are not responding to post-
hearing questions that I've posed to various nominees and
officials, and they're not complying with the terms of an
amendment that I successfully offered to the Fiscal Year 2004
DHS appropriations bill. I'm still waiting for answers to
questions I raised at Commerce Committee hearings last
September and November, and this past March.
At the March hearing on maritime security, Admiral Stone
promised that he would track down the answers to my questions,
but--we did get something this morning, and I appreciate that.
It's taken awhile, and I hope that that process will be sped
up.
Last year, the Senate passed my amendment requiring DHS to
report to Congress on how effective the color-coded threat
alarm alert system is, and suggest possible modifications. The
report was due 7 months ago. And I know that DHS faces lots of
challenges, but it should pay attention to the requirement of a
public law before it's dragged kicking and screaming, and
patience gets lost. Especially in light of last week's
particular warning of the imminence of an al Qaeda attack, and
an FBI announcement that the two-mile strip of land between
Port Newark, our seaport, and Newark Liberty International
Airport is the number one terrorist target in the Nation.
And I'm pleased also to meet Mr. Frink and to hear what
he's going to say. I'm glad that we finally have a nominee for
the post of Assistant Secretary for Manufacturing. When we
looked back at the number of jobs that we have lost in
manufacturing, regardless of cause, the fact is that these jobs
are essential, for the kind of a society that we are, to be
able to have the capability of producing product when we need
it, and not be out on a limb, as I understand we are in several
industries where we've given up the processing and given it to
places--that aren't necessarily friendly to us either. Commerce
Secretary Don Evans announced the creation of this position,
and then it sat vacant for some months while we continued to
lose manufacturing jobs.
Mr. Frink has a big task ahead of him, which is to stem the
loss of these jobs that were lost in the last few years.
Manufacturing jobs are critical. Manufacturing employees
receive higher wages, more generous benefits than many other
workers. And I look forward to the nominee's ideas on how we
can revitalize this crucially important sector of our economy.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Lautenberg.
Before we begin, I would like to ask if the witnesses would
like to introduce members of their family who may be the
audience. We'll begin with you, Admiral Stone.
Admiral Stone. Thank you, Mr. Chairman.
It's my pleasure to introduce my wife, Faith. Faith has
been my guiding light, and we just celebrated our 27th wedding
anniversary.
The Chairman. Would you identify yourself for that singular
service to our nation?
[Laughter.]
Admiral Stone. Thank you, sir.
The Chairman. Thank you very much.
Anyone else, Admiral? Anyone else, Admiral? Is that it?
Admiral Stone. No, that's it, sir.
The Chairman. Mr. Frink?
Mr. Frink. Yes, Mr. Chairman.
I would like to have the pleasure of introducing my wife,
Denise. And we just celebrated, 2 days ago, our 12th
anniversary, so we're in the same--not quite the same amount of
years, but anniversary-wise, we're sharing the same
celebration; my brother, John, who is here to support this
whole effort, and his wife, Cheryl; and my contingent of
friends--I call them the A-Team--who are here to also lend
their support, came 3,000 miles, which I'm very----
The Chairman. Great.
Mr. Frink.--thankful for.
The Chairman. Well, then the A-Team is deserving of
recognition. Would you please stand, A-Team?
[Laughter.]
The Chairman. Thank you. And thank you for coming here in
support of this fine man who has agreed to serve his country.
Thank you for being here.
Mr. Frink. Thank you.
The Chairman. I'd just like to make a couple of comments--
one to you, Admiral Stone, and then to Mr. Frink--and then I'll
turn to Senator Wyden.
Again, I'm very concerned about the lack of our
improvements in technology at airports. We are going to have
the busiest summer, airwise--commercial airwise--since before
2001, and we know what's going to happen at certain airports,
because it's already happening. I don't see any other
resolution to this if we want our airline industry to remain
healthy and robust, which is something we want, but--security
is first, but we also want a healthy airline industry in
America, and we've got to put more emphasis on technology.
As far as I can see--now, I know you're opening--and I'll
be glad to hear your comments--some experimental programs--one
at Minneapolis, I believe, and--but, overall, the procedures
are just about exactly the same as those we instituted
following September 11, and we need to have some kind of
improvement, and I don't see how that happens without
technology.
I'm beginning to sound like a very, very repetitious and
unpleasant Senator, but I really believe that, for people to
continue to go through the ordeal that they do at certain
times--McCarran, on Sunday; Atlanta, on certain days of the
week. We all know where these places are where they're just
waiting one, two, 3 hours, and it's just not an experience
that's conducive, in my view, to security, as well as being
convenient, because once they start getting jammed up, then the
natural pressure is on the TSA employees to move the process
forward, and that's when we find out, from the GAO and others,
that certain items have gotten through security, et cetera.
So, Admiral, if I had priorities for you, it, is, one
technology, and, two, look at the balance now between aviation
security and port and rail security. Now, the last time I
checked, we--for fiscal 2005, we only had 146 million for the
transportation security enterprise, which includes maritime and
land security, intelligence analysis functions, transportation
security coordination, et cetera. So we may need more help both
in port and rail security.
I'll be glad to hear your response to that diatribe.
Admiral Stone. Yes, sir.
The Chairman. Go ahead.
Admiral Stone. The emphasis on new technology is, indeed, I
think, critical to our future, as you state. Our covert testing
program, our own assessment from security, looks from our FSDs,
Federal security directors, locally, as well as outside teams,
GAO audits, all point to that, from the security point of view,
as well as customer service, but we need to go down that road.
The effort that you're reading about at Minneapolis/St.
Paul, the Registered Traveler Program, I think, is key to our
success on both the security end, customer service fronts.
Number one, it's the use of a biometric iris-scan/fingerprint
in order to give us a higher level of security. But, at the
same time, when we marry that up with an airport where we can
have a lane and a reduced level of screening, what that
translates to is improved customer service and throughput. So I
think that's a very powerful program for us. We intend to
expand it to Los Angeles International Airport next week, then
Houston, Boston, and then Ronald Reagan.
When we marry that up with the other effort that we have
ongoing with explosive trace portals going out to airports--
we've already sent them to Rochester, T.F. Green and
Providence. They're slated also go down to Tampa, San Diego,
Gulfport. This is the same machine that we recently
demonstrated out in New Carrollton in the rail environment. Our
ability to detect, at the checkpoint, explosive residues is, I
think, critical, and also will further enhance, in partnership
with Registered Traveler, that effort.
For baggage screening, we're now, at San Francisco Airport,
multiplexing, the idea that--where you can have one person
review the screens of baggage, and then reduce all of that
extra manpower and invest in technology--is where we're headed
on the baggage issue.
So whether it's throughput at the checkpoint, enhanced
security, or in baggage with multiplexing and networking, those
are the investments, I think, that will shape our future, and
we're keen to move down that road.
The Chairman. Thank you, Admiral. And it's my intention,
with the agreement of my colleagues on both sides, to move your
nomination as quickly as possible. Your job is vital.
Mr. Frink, in many ways, I think you are what America is
all about. I think you came here at the age of three, is that
correct, to the United States? And you have a remarkable
success story, both from your own entrepreneur standpoint, but
also in the creation of jobs in this country. And we're very
pleased that you are going to serve. I'm sure you had a much
more comfortable life style than the one you're going to
experience in the coming weeks and months.
[Laughter.]
The Chairman. But let me point out to you, your job is very
important, because if you looked at the top five concerns of
Americans, as far as issues are concerned, one of them is jobs.
Yours is going to be to see how we can not only create jobs in
America, but keep jobs in America. Your background and
experience, as being out there in the real world, I think
qualifies you a great deal. I don't have any questions for you,
but I think we're placing a lot of hope and optimism in your
ability to make sure that we achieve our goal, and that is the
provision of jobs to every American that needs one.
Senator Wyden?
Senator Wyden. Thank you, Mr. Chairman.
Admiral Stone, as you could tell from my comments----
The Chairman. I apologize. In my declining years, I forgot
that we need opening statements from both Admiral Stone and Mr.
Frink, and I apologize, Senator Wyden. I was reminded by my
astute staff.
[Laughter.]
The Chairman. I'm on a work-release program. Please
proceed.
[Laughter.]
STATEMENT OF RADM DAVID M. STONE,
ACTING ADMINISTRATOR, TRANSPORTATION SECURITY
ADMINISTRATION; NOMINATED TO BE
ASSISTANT SECRETARY OF HOMELAND SECURITY,
TRANSPORTATION SECURITY ADMINISTRATION
Admiral Stone. Thank you, Mr. Chairman.
Mr. Chairman, Senator Hollings, distinguished Members of
the Committee, I'm grateful to you for scheduling this hearing
on my nomination by the President to the position of Assistant
Secretary of Homeland Security, Transportation Security
Administration.
I appreciate very much the opportunity to have recently met
with several Members of this Committee, and also meet with and
answer questions from staff members. I've also testified before
this Committee, and I am grateful for your continued dedication
to giving the Department of Homeland Security and TSA the tools
to provide for the transportation security our country needs.
I am honored that President Bush has nominated me for this
important position in the Department of Homeland Security. If
confirmed, I will do everything in my power to serve the
President, the Secretary, the Congress, and the American people
faithfully.
I've spent my entire adult life in service to our great
nation. After attending the Naval Academy, I proudly served for
almost 28 years, retiring at the rank of rear admiral. During
my Navy career, I had many challenging assignments, including
four operational commands at sea.
After my retirement from active duty, I was honored that
Secretary Mineta selected me as one of the first Federal
security directors in the newly formed Transportation Security
Administration. I was pleased to serve as the first FSD for Los
Angeles International Airport.
When I arrived in Los Angeles in July 2002, our focus was
on meeting the two congressional deadlines found in the
Aviation and Transportation Security Act, to screen the
passengers with Federal screeners by November 19, 2002, and
screening all checked baggage for explosives with electronic
screening equipment by December 31 of that year. Meeting those
mandates was an exceptional challenge. With the help of the
many dedicated people and a true spirit of partnership, Los
Angeles International Airport was able to meet both deadlines.
The support by all the local entities was indicative of the
amazing level of cooperation that all of us have seen time and
again throughout our great country following the attacks of
September 11. Themes such as leadership, caring about people,
partnership, working as a teammate, and friendship,
establishing trust and confidence, were the keys to success at
LAX. They are the same themes I have continued to abide by.
In August 2003, Admiral Loy, then the Administrator of TSA,
asked me to join TSA as his Deputy Chief of Staff, with a
particular focus on assuring that TSA was responsive to
important concerns in the direction of Congress. In December
2003, I was named Acting Administrator of TSA when Admiral Loy
assumed the duties as the Deputy Secretary at the Department of
Homeland Security.
I am extremely grateful for the confidence that Secretary
Ridge, Deputy Secretary Loy, and Under Secretary Hutchinson
have shown in me in asking me to serve in this critical
position. The continued support and mentoring that I have
received from each of them has been outstanding.
As you well know, recent events have reinforced the fact
that we live in dangerous times. Last December, the national
threat level was raised to orange due to concern over a number
of potential threats to homeland security, particularly in the
aviation sector. In February and March, terrorists attacked
subway and rail stations in Moscow and Madrid, resulting in
many lives lost.
Clearly the transportation sector remains an inviting
target for terrorist attack. We remain very concerned about
potential terrorist threats leading up to our national
election. With these threats in mind, as Acting Administration
I have worked to bring an intense operational focus to TSA. I'm
in the midst of giving our Federal security directors more
authority in the hiring, training, testing, and managing of
their screener work force. If confirmed, I will continue down
this road.
Intelligence is also at center stage at TSA. I chair a
daily comprehensive review of the intelligence assembled on all
sectors of transportation, and the threats that are signaled by
this intelligence. Together with all of my senior staff, we
review, in detail, daily reports from Federal security
directors on incidents concerning aviation security, as well as
the daily reports of incidents affecting non-aviation modes of
transportation. I take this daily briefing very seriously, and
make it the center of gravity of our workday. I use it to shape
the course that I would like TSA to take for developing both
short- and long-term risk-mitigation planning.
If confirmed, I plan to continue this practice so that
every day TSA is focused on the threats to transportation
security and is prepared to rapidly bring our resources to bear
on mitigating risk with a true sense of urgency.
In my written statement, I have detailed some of the
important progress TSA has made in our Aviation Partnership
Support Plan, our Registered Traveler Pilot Program, and our
Pilot Program for Explosive Trace Detection Portals. I will be
pleased to answer questions about these programs and other
important ongoing aviation security initiatives.
I would like now to briefly address TSA's advancement in
security in the non-aviation modes of transportation. TSA has
made steady progress in this area, and we fully realize there's
much work left to do. TSA is staying attuned to the security
needs across the entire transportation sector, and we are
engaged in risk-mitigation efforts daily.
The Secretary designated TSA with the responsibility to
prepare an overarching sector-specific plan for the
transportation sector. As required under the National
Infrastructure Protection Plan outlined in Homeland Security
Presidential Directive 7, a significant portion of TSA staff is
involved in this major undertaking. We are working in close
coordination with DHS components, with the Department of
Transportation, and its modal administrations, and with other
key Federal agencies, as well as appropriate stakeholders, in
developing this plan.
Of note, TSA recently issued the first security directive
to rail and mass-transit operators. We also completed Phase 2
of our Transit and Rail Inspection Pilot, called TRIP, to
evaluate the use of emerging technologies in the rail
environment. And we will begin Phase 3, in Connecticut, in the
coming days.
Mr. Chairman, I fully recognize the critical role of
Congress, and, if confirmed, will work to ensure our
organization is responsive and respectful of that important
relationship.
In closing, on behalf of our entire organization, I would
like to thank you for your support of TSA.
Mr. Chairman, Members of the Committee, this concludes my
prepared statement. I look forward to answering your questions.
[The prepared statement and biographical information of
Admiral Stone follow:]
Statement of RADM David M. Stone, Acting Administrator, U.S. Department
of Homeland Security, Transportation Security Administration
Good afternoon Mr. Chairman, Senator Hollings, and distinguished
Members of the Committee. I am grateful to you for scheduling this
hearing on my nomination by the President for the position of Assistant
Secretary of Homeland Security (Transportation Security
Administration).
It is a particular honor to appear before this Committee because
you have long played a pivotal role in confronting the transportation
security challenges facing our nation. I have testified before this
Committee twice here in Washington and at a field hearing in Los
Angeles in August 2002, on a wide range of aviation and intermodal
security matters, and I have gained great respect for the Committee's
insight and commitment to transportation security.
I am honored that President Bush has nominated me for this
important position in the Department of Homeland Security. If
confirmed, I will do everything in my power to serve the President and
the Secretary faithfully. I have an outstanding team at the
Transportation Security Administration (TSA), and I know that they will
perform at even higher levels in the future.
Before I discuss my background with you, and the position for which
the President has nominated me, I want to recognize my wife Faith, who
has been my shining light during our 27 years of marriage. This period
of time was spent in service to our country with many deployments and
many days and nights at sea. I could not possibly thank her enough.
I have spent my entire adult life in service to our great Nation.
At age 18, I was privileged to receive an appointment to the United
States Naval Academy in Annapolis, and I proudly served for almost 28
years, retiring with the rank of Rear Admiral. During my Navy career, I
served on a number of ships, including as the Commanding Officer of the
Spruance Class Destroyer USS John Hancock, as the Commander of Middle
East Force/Destroyer Squadron FIFTY homeported in Manama, Bahrain, as
Commander of NATO's Standing Naval Force Mediterranean, homeported in
Naples, Italy, and as the Commander of Cruiser Destroyer Group 5/The
Nimitz Battle Group. During these assignments, I was honored to serve
with some of the finest men and women in our Armed Forces.
While not on ship assignments in the Navy, I served in several
prominent positions both at the Pentagon and overseas, concluding my
Navy career as the Director for Environmental Protection, Safety and
Occupational Health. My various assignments in the Navy have given me a
thorough understanding of national security policy and a broad view of
the requirements necessary to defend our national interests. I have
worked closely with military and diplomatic representatives of many
countries, helping me to understand the special issues involved in
dealing with nations and peoples of different viewpoints and cultures.
In assuming increasing command responsibility over the years, I have
developed a firm knowledge of how large organizations function, and how
to lead, manage, and motivate people to ensure that the strategic and
operational goals of the organization are met.
After my retirement from active duty with the U.S. Navy, I was
honored that Secretary Mineta selected me as one of the first Federal
Security Directors (FSD) in the newly formed Transportation Security
Administration. I agreed to serve as the first FSD for Los Angeles
International Airport (LAX).
When I arrived at LAX in July 2002, our focus was meeting the two
key Congressional deadlines found in the Aviation and Transportation
Security Act (ATSA). The first required that we have all passenger
screening performed by newly hired, trained, and deployed Federal
screeners by November 19, 2002. The second deadline called for
screening all checked baggage for explosives with electronic screening
devices, manned by Federal baggage screeners, by December 31, 2002. In
July 2002, all passenger screening at LAX was still performed by
private contract screeners, most of whom were in place before September
11, 2001, and many of whom could not meet the new strict qualification
standards of ATSA. TSA and LAX also began the immense task of
purchasing, installing, and operating the Explosives Detection Systems
(EDS) and Explosives Trace Detection (ETD) systems for screening
checked baggage. Neither LAX, nor virtually any other airport, was
constructed with a view towards satisfying the comprehensive aviation
security measures that Congress and TSA envisioned. Meeting this
deadline was an exceptional challenge.
I am pleased that, with the help of many dedicated people, LAX was
able to meet both deadlines. This required the cooperation of not just
TSA employees, but numerous others including the City of Los Angeles
and its airport management staff; the air carriers; law enforcement
officers; the many contractors involved in hiring, training, and
deploying screeners and explosives detection equipment; and the
hundreds of pre-9/11 screeners who agreed to stay on board until TSA
screeners replaced them. Many later joined us as TSA screeners. I must
also recognize the cooperation of the millions of passengers who passed
through LAX during that period. The support by all parties was
indicative of the amazing level of cooperation that all of us have seen
throughout the country following the attacks of 9/11.
Having met the goals of standing up the FSD organization at LAX and
making the transition to Federal passenger and baggage screening
requirements, I was later asked by ADM Jim Loy, then the Administrator
of TSA, to take on one more assignment for TSA. In August 2003, I
rejoined TSA at the headquarters staff as TSA Deputy Chief of Staff,
with a particular focus on ensuring that TSA was responsive to the
important concerns of the Congress. In all of my dealings with the
Members of Congress, I have been struck by their compelling desire to
see that DHS and TSA fully succeed in their mission.
In December 2003, when ADM Loy moved to his current position as
Deputy Secretary of Homeland Security, I was named Acting Administrator
of TSA. I am grateful for the confidence that Secretary Ridge, Deputy
Secretary Loy, and Under Secretary Hutchinson have shown in me by
asking me to serve in this critical position. The continued support
that I have received from each of them has been outstanding.
Recent events have reinforced the fact that we live in dangerous
times. Last December, the national threat level was raised to Orange,
based on concerns over a number of potential threats to homeland
security, particularly in the aviation sector. In February and March,
terrorists attacked subway and rail systems in Moscow and Madrid,
resulting in the loss of many lives. Clearly, the transportation sector
remains an inviting target for terrorist attacks.
As Acting Administrator, I have worked to sharpen the operational
focus at TSA. The centralized hiring and management system that TSA
adopted in order to startup the organization from scratch was effective
during that period, but it requires revision now that we are a more
mature organization. I am in the midst of giving our Federal Security
Directors more authority in hiring, training, testing, and managing
their screener workforce. If confirmed, I will continue down this road.
I expect our FSDs to be fully responsible for the Federal security
program at their assigned airports. If confirmed, I will give them the
necessary authority to carry out these functions, and I will hold them
accountable for their actions.
Every morning, I chair a comprehensive review of the intelligence
assembled on all sectors of transportation, and the threats that are
signaled by this intelligence. Together with my senior staff, we
review, in detail, daily reports from FSDs on incidents concerning
aviation security, and daily reports of incidents affecting non-
aviation modes of transportation. With the top-notch staff that we are
assembling at our Transportation Security Operations Center, we
coordinate intelligence, threat and risk assessments, and operational
responses with necessary Federal, state, and local agencies, and with
key non-Governmental stakeholders in the transportation sector. I take
this daily briefing very seriously, and I use it to shape the course
that I would like TSA to take. If confirmed, I plan to continue this
practice so that every day we are focused on the threats to
transportation security, enabling us to bring our resources to bear on
mitigating those threats.
In my role as Acting Administrator, I have been guided by several
key principles. The first of course is Leadership--leading people,
leading the development and deployment of technology to more
efficiently use our resources, and leading change. The second is
Partnership. I have worked to develop and promote a spirit of
partnership with all of the stakeholders that are involved in
protecting, operating, and using our transportation systems. Last, but
just as critical, is the concept of Friendship. It is vital for the
success of DHS and TSA that we inspire the trust and confidence of the
American people, and their elected representatives in Congress. I am
fully engaged in building this foundation. Part and parcel of this
foundation is the understanding that TSA will respect and preserve the
individual privacy of our citizens while we work to enhance security.
Another key element in the foundation of Friendship is customer
service. We will better serve the overall interests of homeland
security if we provide a high level of customer service. I have sought
to instill this concept in my staff, whether in the field or in
headquarters. If confirmed, I will continue to move forward with these
principles in mind.
With passenger enplanements near pre-September 11 levels and in the
midst of the busy summer traveling season, we continue to focus our
attention on providing effective security as efficiently as possible.
TSA has developed and implemented an Aviation Partnership Support Plan
(APSP) for instituting best practices that serve us well not only for
the busy summer period, but also beyond. We have targeted a number of
key airports for special emphasis this summer. Although airports have
experienced the highest number of passengers since the summer of 2001,
TSA's careful planning in partnership with air carriers, airport
operators, and the passengers themselves is paying off, increasing
screening throughput at all airports while assuring the same high level
of security that the Nation expects.
TSA is making progress on other fronts as well. We have launched
the Registered Traveler program at Minneapolis-St. Paul airport with
cooperation from Northwest Airlines, and through the summer we will
initiate pilots at 4 more airports. Those airports, and their airline
partners are: Los Angeles International Airport--United Airlines;
George Bush International Airport/Houston--Continental Airlines; Boston
Logan International Airport--American Airlines; and Ronald Reagan
Washington National Airport--American Airlines. Guidance for the
Screening Partnership Program has been issued, announcing that TSA will
accept applications from airports during a 3 week period from November
19 to December 10, 2004. This will be followed by a competitive
selection process for private contractors. TSA's Assistant
Administrator for Transportation Security Policy, Tom Blank, testified
before you on this issue on June 24, 2004.
TSA continues to press forward with initiatives to improve the
technology used to screen airline passengers and baggage, and if
confirmed I will continue these efforts as a high priority. We have
initiated operational testing and evaluation of an explosives trace
detection portal at a passenger security checkpoint at T.F. Green
Airport serving Providence, Rhode Island, and Greater Rochester (N.Y.)
International Airport. By the end of this month, we will expand this
test to include San Diego International Airport-Lindbergh Field, Tampa
International Airport, and Gulfport-Biloxi (Miss.) International
Airport. TSA is performing Research and Development (R&D) on document
scanners to identify trace explosives that might pass from passengers
to boarding documents. TSA is also engaged in R&D on small explosive
detection systems units for screening carry-on baggage.
TSA also has a robust program in effect for enhanced screening of
air cargo carried aboard passenger planes. Using our Air Cargo
Strategic Plan as a foundation, we have put into practice numerous
improvements in the air cargo supply chain, targeting high-risk cargo
as we also undertake the R&D efforts necessary to identify an effective
and appropriate technology solution. We have backed this up with
regulatory requirements to the air carriers that are enforced by a
staff of air cargo security inspectors.
I would also like to address the attention that TSA is devoting to
the non-aviation modes of transportation. Some have voiced a concern
that TSA's operations may not give the same attention to the security
needs of the five other transportation modes that we do to aviation.
This Committee has held several hearings to keep well-informed of TSA's
activities in intermodal transportation matters. I firmly believe that
TSA is fully attuned to transportation security needs across the
transportation sector and that we are acting on these needs. The
Department of Homeland Security designated TSA with the responsibility
to prepare an overarching Sector Specific Plan (SSP) for the
transportation sector, as required under the National Infrastructure
Protection Plan outlined in Homeland Security Presidential Directive 7
(HSPD-7). Staff throughout TSA is fully engaged in this major
undertaking. In this effort, we are working under the leadership of the
Department and the Border and Transportation Security directorate and
in close coordination with DHS components including the U.S. Coast
Guard, the Information Analysis and Infrastructure Protection
directorate, the Science and Technology directorate, and U.S. Customs
and Border Protection. The SSP is also being developed in collaboration
with the Department of Transportation and its modal administrations,
with other key Federal agencies, and with non-Federal stakeholders.
On a more operational note, TSA has recently completed two separate
pilot projects involving the use of explosives detection technology to
screen passengers, baggage, and cargo at two rail stations within the
Washington, D.C. commuting area. Data collected from these pilot
projects will enable us to assess the use of this technology as a high
threat response capability in the rail environment.
Obviously, as a result of the clear direction from Congress in ATSA
and subsequent legislation, TSA has a more prominent operational role
in aviation security than in non-aviation modes of transportation.
However, in coordination with the Department and our other partners, we
will ensure that the appropriate level of security applies to other
modes of transportation, commensurate with the threat and risks faced
in those modes. If confirmed, I look forward to furthering the security
of all modes of transportation, in concert with our many partners.
I welcome the cooperation that TSA has received from Congress since
we were created. I fully recognize the critical oversight function of
Congress, and if confirmed, I hope to continuing forging this important
partnership.
Mr. Chairman, Senator Hollings, and Members of the Committee, this
concludes my prepared statement. I look forward to answering your
questions.
______
a. biographical information
1. Name: (Include any former names or nicknames used.) David
Malcolm Stone.
2. Position to which nominated: Assistant Secretary of Homeland
Security (Transportation Security Administration).
3. Date of nomination: Announced by The White House April 8, 2004.
4. Address: (List current place of residence and office addresses.)
Residence: Information not released to the public.
Office: 601 South 12th Street, Arlington, VA 22202.
5. Date and place of birth: 07/13/1952; Elgin, Illinois.
6. Marital status: (Include maiden name of wife or husband's name.)
Married to Cynthia Faith Stone (Maiden Name Voth) in 1977 to
present.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.) None.
8. Education: (List secondary and higher education institutions,
dates attended, degree received, and date degree granted.)
------------------------------------------------------------------------
School Attended Degree Date Granted
------------------------------------------------------------------------
Naval War College 08/1985-06/1986 MA Nat'l 06/1986
Security
& Strat
Salve Regina College 08/1985-05/1986 MS 05/1986
(Newport, RI) Management
U.S. Naval 09/1977--03/1979 MA Nat'l 03/1979
Postgraduate Security
Affairs
U.S. Naval Academy 07/1970-06/1974 BS History 06/1974
Irving Crown High 09/1966-06/1970 Diploma 06/1970
School
Carpentersville, IL)
------------------------------------------------------------------------
9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
I had continuous service in the U.S. Navy from my entrance into the
U.S. Naval Academy in July 1970 until my retirement from the U.S. Navy
in April 2002. My specific positions and assignments are found on the
attached sheet.
------------------------------------------------------------------------
Employer Title Location Date
------------------------------------------------------------------------
Transportation Security Acting Arlington, 12/2003-Present
Administration Administrator VA
------------------------------------------------------------------------
Transportation Security Deputy Chief of Arlington, 08/2003-12/2003
Administration Staff VA
------------------------------------------------------------------------
Transportation Security Federal Los 06/2002-05/2003
Administration Security Angeles,
Director, Los CA
Angeles Intl
Airport
------------------------------------------------------------------------
U.S. Navy Director, Washington, 12/2001-04/2002
Environmental DC
Protection,
Safety &
Occupational
Health--CNO
Staff
------------------------------------------------------------------------
U.S. Navy Commander, San Diego, 10/2000-12/2001
Comcrudesgru CA
Five
Nimitz Battle
Group
------------------------------------------------------------------------
U.S. Navy Deputy Director Washington, 12/1999-10/2000
for DC
Surface
Warfare--CNO
Staff
------------------------------------------------------------------------
U.S. Navy Commander Naples, 09/1998-09/1999
NATO's Italy
Standing Naval
Force
Mediterranean
------------------------------------------------------------------------
U.S. Navy Chief of Staff Gaeta, 08/1996-08/1998
for Italy
Commander Sixth
Fleet
------------------------------------------------------------------------
U.S. Navy Commander Manama, 11/1994-07/1996
Middle East Bahrain
Force/
Destroyer
Squadron FIFTY
------------------------------------------------------------------------
U.S. Navy Navy Training Various 08/1994-10/1994
------------------------------------------------------------------------
U.S. Navy Head of the Washington, 08/1993-07/1994
Warfare DC
Policy Branch--
CNO Staff
------------------------------------------------------------------------
Armed Forces Staff Joint Training Norfolk, VA 05/1993-06/1993
College
------------------------------------------------------------------------
U.S. Navy Commanding Mayport, FL 06/1991-04/1993
Officer of USS
John Hancock
------------------------------------------------------------------------
U.S. Navy Commanding Newport, RI 12/1990-04/1991
Officer School
------------------------------------------------------------------------
U.S. Navy Special Naples, 03/1988-05/1990
Assistant to Italy
the Commander
in Chief U.S.
Naval Forces
Europe
------------------------------------------------------------------------
U.S. Navy Executive Charleston, 09/1986-02/1988
Officer USS SC
Richmond
Turner (CG20)
------------------------------------------------------------------------
U.S. Navy EXEC Training Newport, RI 07/1986-08/1986
School
------------------------------------------------------------------------
U.S. Navy Naval War Newport, RI 08/1985-06/1986
College
Student
------------------------------------------------------------------------
U.S. Navy Assistant Chief Mayport, FL 08/1983-07/1985
of Staff for
Material,
Cruiser-
Destroyer Group
12
------------------------------------------------------------------------
U.S. Navy Executive Key West, 11/1981-07/1983
Officer USS FL
Gemini
------------------------------------------------------------------------
U.S. Navy Engineer Norfolk, VA 01/1980-11/1981
Officer USS
Caron
------------------------------------------------------------------------
U.S. Navy Surface Warfare Newport, RI 04/1979-12/1979
Training
School
------------------------------------------------------------------------
U.S. Navy U.S. Naval Monterey, 09/1977-03/1979
Postgraduate CA
School
------------------------------------------------------------------------
U.S. Navy CIC Officer, Athens, 1974-09/1977
Damage Control Greece
Assistant, and Philadelphi
First a, PA
Lieutenant USS Mayport, FL
Vreeland (FF
1068)
------------------------------------------------------------------------
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.) None.
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.) None.
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
Surface Navy Association--Chapter President
U.S. Naval Academy Alumni Association--Member
13. Political affiliations and activities:
(a) List all offices with a political party which you have held
or any public office for which you have been a candidate: None.
(b) List all memberships and offices held in and services
rendered to all political parties or election committees during
the last 10 years: None.
(c) Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $500 or more for the past 10
years: None.
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
Legion of Merit (4)
Defense Meritorious Service Medal (2)
Meritorious Service Medal (3)
Navy Commendation Medal (3)
Navy Achievement Medal
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.) None.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated.
On March 8, 2004, I gave remarks about TSA (Leadership/Partnership/
Friendship Theme) at the National Defense University Reserve Components
National Security Course (RCNSC) (not a formal speech).
On March 3, 2004, I gave remarks about TSA (Leadership/Partnership/
Friendship Theme) at a DHS One-Year Anniversary Event in Minneapolis,
MN (not a formal speech).
On February 4, 2004, I gave remarks about TSA (Leadership/
Partnership/Friendship Theme) at a Dinner with the Metropolitan
Washington Airports Authority Board of Director's Dinner in Crystal
City, VA (not a formal speech)
17. Selection:
(a) Do you know why you were selected for the position to which you
have been nominated by the President?
I am grateful for the trust and confidence that the President has
shown in me by nominating me to this important position. While I have
not spoken directly to the President on this matter, my career both in
the United States Navy as well as at the Transportation Security
Administration may have been a factor in his decision.
As a Navy officer and as a senior leader at the Transportation
Security Administration, I have shown a pattern of successfully
managing and leading large organizations. During my 28-year career as a
United States Naval Officer, in which I achieved the rank of Rear
Admiral, I was responsible for commanding sailors and marines and
entrusted with billions of dollars of valuable military equipment. More
importantly, I played a key role in the defense of the strategic
interests of the United States. Subsequently, I served as the first
Federal Security Director (FSD) at Los Angeles International Airport
(LAX). While at LAX, one of the busiest airports in the nation and the
world, I undertook and met the challenge to maintain security as the
airport transitioned from the pre-9/11 screener staff to a new,
federalized and highly trained workforce. As the Acting Administrator
for TSA since December 2003, I have guided TSA as it has continued to
improve its ability to provide for security in all modes of
transportation.
(b) What in your background or employment experience do you believe
affirmatively qualifies you for this particular appointment?
My leadership skills, developed during a lifetime of service to
this country, have provided a foundation for me to successfully lead
TSA. Additionally, I bring a working knowledge of our Nation's homeland
security organization and how transportation security factors into the
larger agenda. I am committed to a full partnership with the many
stakeholders in the transportation sector, including State and local
governments, Indian tribes, private industry, and the American public,
all of which rely heavily on a secure transportation system. I am
working closely with Members of Congress to ensure TSA remains focused
on preserving our freedoms while we go about our important work of
protecting America.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate? Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, please explain. No.
3. Do you have any plans, commitments, or agreements after
completing government service to resume employment, affiliation, or
practice with your previous employer, business firm, association, or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers.
None, with the exception of my retirement from the United States
Navy.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated. None.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated. None.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy. None.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.)
There are currently no potential conflicts of interest. If any
arise, I will immediately consult with the Designated Agency Ethics
Official.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain. No.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than for a minor traffic offense? If so, please explain. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain. No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain. No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination.
Received an ``Outstanding Citizen Award'' by hometown of Algonquin,
Illinois, in recognition of achievement and outstanding commitment to
service.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Please explain how if confirmed, you will review regulations
issued by your department/agency, and work closely with Congress, to
ensure that such regulations comply with the spirit of the laws passed
by Congress.
Regulations would be reviewed based on a full consideration of the
legislative history associated with the statutory authority for the
regulations. If clarification concerning the intent behind statutory
authorities would be helpful, I would seek further information from
Congress and its committees as appropriate. In addition, I would fully
comply with the requirements for submission of final rules to Congress
under the Small Business Regulatory Enforcement Fairness Act.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How does your previous professional experiences and education
qualify you for the position for which you have been nominated?
As a Navy officer and as a senior leader at the Transportation
Security Administration, I have shown a pattern of successfully
managing and leading large organizations. During my 28-year career as a
United States Naval Officer, in which I achieved the rank of Rear
Admiral, I was responsible for commanding sailors and marines and
entrusted with billions of dollars of valuable military equipment. More
importantly, I played a key role in the defense of the strategic
interests of the United States. My undergraduate and postgraduate
studies at the U.S. Naval Academy and the Naval War College provided me
with an excellent background in national security affairs and
strategies, and I frequently drew upon this educational foundation as I
carried out my duties. Subsequently, I served as the first FSD at Los
Angeles International Airport (LAX). While at LAX, one of the busiest
airports in the nation and the world, I undertook and met the challenge
to maintain security as the airport transitioned from the pre-9/11
screener staff to a new, federalized and highly trained workforce. As
the Acting Administrator for TSA since December 2003, I have guided TSA
as it has continued to improve its ability to provide for security in
all modes of transportation.
2. Why do you wish to serve in the position for which you have been
nominated?
It would be an honor to serve the United States and its citizens in
this position of trust and responsibility. My long career in public
service has given me an opportunity to develop the experiences,
perspectives, and skills to successfully lead the TSA, and I believe it
is my duty to contribute to our homeland security efforts at this
challenging time in our Nation's history.
3. What goals have you established for your first two years in this
position, if confirmed?
Internal challenges to TSA include: (1) Enhance operational field
focus and establish inter-modal risk mitigation planning. (2) Cut
layers of HQ staff between the Administrator and the field. (3) Empower
the FSD and allow for more local decision-making. (4) Make the concept
of a Model Workplace for TSA employees a reality. (5) Accelerate
technology to the field and reduce the dependence on the high number of
personnel that are currently needed to provide security.
It would be my goal in the first two years to take the following
actions to address these internal challenges: (1) Conduct daily
operation and intelligence briefings with Senior staff utilizing the
Transportation Security Operations Center as the TSA operational center
of gravity. (2) Realign the TSA HQ Staff to provide for better
integration and to reduce the layers between the Administrator and the
field. (3) Initiate action to allow for local testing, local training,
and local hiring in order to facilitate the empowerment of the FSD in
the field. (4) Constantly review issues that impact the morale and
welfare of TSA employees and ensure leaders are held responsible for
taking measures to enhance the Quality of Life and Quality of Work of
each TSA employee. (5) Develop Transition plans to accelerate
technologies to the field that enhance security and reduce both the
number of personnel and the level of effort required to perform the
security mission.
External challenges for TSA include: (1) Integrating fully within
the Department of Homeland Security in order to operate most
effectively and efficiently. (2) Developing thoughtful Sector Specific
Plans for the Transportation, Shipping and Postal sectors of the
economy in partnership with other entities to more fully mitigate the
risk of Terrorist attack. (3) Ensuring the Privacy and Freedoms we all
enjoy as Americans are preserved as we seek out innovative ways to
better protect America against a Terrorist attack. (4) Accelerating the
use of technology to enhance the overall security of the Transportation
Sector.
It would also be my goal to address these external challenges by
taking the following actions: (1) Imbue within TSA a culture of change
to drive out concepts such as ``protecting turf.'' Constantly seek to
integrate TSA activities within DHS to get the maximum use of every tax
dollar. (2) Partner with other government agencies and the private
sector in developing Protection Plans for the Transportation and
Shipping and Postal critical infrastructure sectors. (3) Constantly
review privacy issues to ensure actions are taken in a proactive manner
to protect our freedoms as we carry out the TSA mission. (4) Develop
transition plans for technology that can facilitate the smooth flow of
commerce while enhancing the security of the overall process. The use
of new technology to reduce the level of personnel needed to carry out
a specific task can in many cases allows for a more efficient and
effective use of the taxpayers dollar.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
I believe I possess all the necessary skills to be successful in
carrying out this important position.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
My view of government is that it exists to serve the citizens. In
the United States, it is a government ``of the people'' and ``for the
people.'' The extent of its involvement in the private sector should be
guided by what ``the people'' decide is in their best interest. These
interests may vary over time and among generations, and this is often
very much a qualitative rather than quantitative process. The
government's degree of involvement in the private sector should reflect
the peoples' needs. Public-private partnerships are very powerful
forces that serve the people extremely well. Elections allow the people
to signal their needs to their elected officials and also provide an
excellent pulse on when a government program is no longer necessary.
6. Describe the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated.
The mission of the Transportation Security Administration is to
protect the Nation's transportation systems to ensure freedom of
movement for people and commerce. Our vision is that TSA will
continuously set the standard for excellence in transportation security
through its people, processes and technology.
TSA also supports the missions of the Border and Transportation
Security (BTS) Directorate and Department of Homeland Security. BTS has
the mission to protect national security and promote public safety by
enforcing our nation's immigration and customs laws, providing a
trained and effective border and transportation system defense against
all external threats, including international terrorists, and other
threats such as illegal drugs and other contraband, while preserving
the free flow of legitimate trade and travel. The mission of DHS is to
lead the unified national effort to secure America, to prevent and
deter terrorist attacks, to protect against and respond to threats and
hazards to the nation, to ensure safe and secure borders, to welcome
lawful immigrants and visitors, and to promote the free-flow of
commerce.
Major programs and initiatives at TSA currently include (in
alphabetical order):
Air Cargo Enhancements--TSA, working with U.S. Customs and
Border Protection, is implementing the Air Cargo Strategic
Plan, which includes establishing a Cargo Pre-Screening system
to identify ``high-risk'' cargo and working with other federal
agencies and the air carrier and shipping industries to ensure
that all ``high risk'' cargo is inspected; strengthening the
Known Shipper Program and implementing the Known Shipper
Automated Database; implementing the Indirect Air Carrier
certification system; carrying out procedures to secure cargo
during transport to the airport; training air carrier and
Indirect Air Carrier personnel; and ensuring compliance with
screening directives. In addition, TSA is studying technologies
for screening cargo and aggressively pursuing new technological
solutions. A Notice of Proposed Rulemaking is in development to
further strengthen air cargo security.
Aviation Partnership Support Plan--This program mitigates
congestion at passenger screening checkpoints during the high
volume summer travel months. The plan includes specific
operational adjustments and an aggressive public information
campaign. It is intended to ease wait times over the summer at
all the Nation's airports with particular emphasis on 25 of the
busiest airports that have the resources and relationships to
take maximum advantage of the plan's measures.
CAPPS II--Research and development of technology and
procedures to enhance aviation passenger prescreening while
safeguarding privacy rights and civil liberties.
Crew Member Security Training--A program to ensure that
flight attendants and other crew members receive consistent,
effective training to help prepare them to respond to terrorist
threats that may be encountered in-flight. It includes
establishing new basic security training standards and
developing and providing voluntary Advanced Crew Member Self
Defense training.
Explosive Detection Portals--Explosive Detection Portals are
being piloted at 5 airports (T.F. Green State Airport, Rhode
Island; Greater Rochester International Airport, New York; San
Diego International Airport, California; Tampa International
Airport, Florida; and Gulfport Biloxi International Airport,
Mississippi) this summer.
Federal Flight Deck Officer Program--A program to train,
arm, and deputize volunteer pilots of commercial passenger and
all-cargo aircraft, flight engineers, and navigators as Federal
law enforcement officers for the purpose of defending the
flight decks against acts of criminal violence or air piracy.
General Aviation--TSA has worked closely with the general
aviation community over the past two years to implement a
threat-based, risk-managed approach to general aviation. We
have put in place regulatory regimes for small and large
private charters, have partnered with the National Business
Aviation Association on a pilot project to enhance security for
corporate operators, and have implemented a GA Hotline that
serves as a linchpin for the Aircraft Owners and Pilots
Association's highly regarded Airport Watch Program. Most
recently, TSA released Version 1.0 of an Information
Publication titled Security Guidelines for General Aviation
Airports, which provides ``best security practices.'' We are in
the process of drafting a five-year strategic plan for general
aviation that will cover the remainder of this decade, 2005-
2009. Additionally, we are developing a general aviation
airport vulnerability self-assessment tool that will be
launched later this year.
HAZMAT Credentialing--TSA is developing plans to conduct
background checks on commercial truck drivers who transport
hazardous materials (HAZMAT), including explosives, to protect
against the threat posed by terrorists transporting hazmat and
to maximize flexibility for the States so the issuance of
hazmat endorsements is not impeded by security requirements.
Local Hiring, Training, and Testing--Initiatives to empower
FSDs with greater operational authority for recruiting, hiring,
training, and testing in order to leverage more fully the
expertise and knowledge of FSDs about the needs of their
individual airports.
MANPADS Assessments--R&D efforts are underway within the TSA
Office of Security Technology relative to the aircraft
survivability posed by standoff weapons (MANPADS and Rocket
Propelled Grenades). The purpose of these efforts, in
coordination with research partners, is to develop a
susceptibility/vulnerability assessment in which (1) techniques
in enhancing commercial aircraft survivability can be further
explored; (2) a means to model advanced threats can be
incorporated into the program; and (3) lessons are learned and
applied towards potential threat mitigation and countermeasures
techniques. This work is conducted in coordination with the DHS
Science and Technology (S&T) Directorate's Counter-MANPADS
special program. Also, TSA is performing airport vulnerability
assessments to identify and map the areas around an airport
from which a MANPADS attack could be initiated and working with
surrounding communities to coordinate efforts of agencies
responsible for responding to this type of threat.
Privacy Training--TSA employees participate in ongoing
educational and training programs emphasizing their roles and
responsibilities for protecting individual privacy in the
course of their duties.
Rail and Transit Security Initiatives--Working with rail and
transit operators as well as Federal, State and local partners,
TSA is providing leadership in the area of rail and transit
security through promulgating best practices, assisting in
implementation of Security directives issued on May 20, 2004,
and developing/assessing security measures that could be
utilized in high-threat situations, such as through the TRIP
pilot. TRIP is a multi-phased pilot to evaluate the use of
emerging technologies to screen passengers and their carry-on
items for explosives in the transit and rail environment in
certain situations.
Rail Transportation of Hazardous Materials--TSA is leading a
multi-agency task force in the D.C. metropolitan area to
conduct a comprehensive security review, which includes a
vulnerability assessment of the rail infrastructure, for high
threat urban areas where chemicals classified as toxic by
inhalation (TIH) are transported.
Registered Traveler--TSA is conducting five Registered
Traveler (RT) pilot tests in 2004 using biometric technology to
enhance identity verification at the passenger security
checkpoint, as well as identify business processes, such as
reconfiguration of lines and lanes, that might facilitate a
secure and expedited travel experience. The tests are designed
to evaluate the merits of an RT program without disrupting
airport operations or compromising security. TSA has selected
Minneapolis-St. Paul International Airport, Los Angeles
International Airport, George Bush Intercontinental Airport/
Houston, Boston Logan International Airport, and Ronald Reagan
Washington National Airport as pilot test sites.
Screener Partnership Program (``Opt Out'')--A program to
allow airports to apply for and transition to having private
companies provide screeners under a contract with TSA.
Screener Performance Evaluation and Recurrent Training--
Multiple initiatives are underway to design, develop,
distribute, administer, and evaluate sound and effective
performance and training support directly related to the
screening of people and property to address threats across all
transportation modes.
SIDA/Sterile Security Directives--Revised SIDA/Sterile
Security Directives, as well as enhanced airport employee
background checks are being pursued in order to improve
physical security at our nation's airports.
Transportation Worker Identification Credential (TWIC)--A
pilot program underway to explore establishing a system-wide
common credential for use across all transportation modes for
personnel requiring unescorted physical and/or logical access
to secure areas of the transportation system.
The major operational objectives of the Transportation Security
Administration are as follows:
Awareness; ensure we gain awareness of the full scope of
threats and vulnerabilities, as well as the impact of
mitigation actions, to transportation in our domain of
responsibility.
Prevention and Protection; deter foreign and domestic
terrorists and other individuals from causing harm or
disrupting the transportation system and/or its users.
Response and Recovery; ensure that an agile incident
response capability is coordinated to swiftly and effectively
restore freedom of movement--as well as enabling the use of the
transportation system in the course of an incident.
Service; ensure that we serve the public effectively by
facilitating legitimate trade and travel.
Organizational Excellence; operate as a leading edge,
performance-based organization that consistently meets
performance objectives while practicing outstanding stewardship
of our resources.
7. What do you believe to be the top three challenges facing the
department/agency and why?
Broadly speaking, TSA must not falter in its determination and
dedication to the objectives of the Department, the needs of the
American people, and the security of our Nation. Recent events have
reinforced the fact that we live in dangerous times. Last December, the
national threat level was raised to Orange, based on concern over a
number of potential threats to homeland security, particularly in the
aviation sector. In February and March 2004, terrorists attacked subway
and rail systems in Moscow and Madrid, resulting in the loss of many
lives. Clearly, the transportation sector remains an inviting target
for terrorist attacks. As TSA employees, it is our job to remain
vigilant as we work tirelessly in the fight to keep our homeland safe
and secure.
The top three aviation sector threat-related issues and challenges
facing TSA are: (1) the development and deployment of explosives
detection technology at the passenger checkpoint, (2) enhancing
security of the Sterile Areas and Security Identification Display Areas
(SIDA) of airports, and (3) the enhancement of TSA and industry's
capacity for efficient and effective air cargo screening.
In addition, TSA has several organizational challenges that are
natural for a new agency in a new department. As TSA matures as an
organization, we will continue down the path of building a results-
oriented culture and seek out greater efficiencies where possible. For
example, I am in the process of giving our FSDs more authority in
hiring, training, testing, and managing their screener workforce. TSA
must exhibit leadership through empowering its people, deploying
appropriate technology, and seeking positive change. We will develop
and promote a spirit of partnership with all of the stakeholders who
are involved in protecting, operating, and using the transportation
system. Finally, it is vital for the success of DHS and TSA that we
inspire the trust and confidence of the American people and their
elective representatives through our diligence, respect for privacy and
civil liberties, and world-class standards in customer service.
8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
TSA has achieved its mission over the past several years. While
there is much yet to be done as TSA pursues and enhances our many-
layered ``system of security systems,'' we have achieved considerable
results in less than three years since enactment of the Aviation and
Transportation Security Act (ATSA). The synergies developed through the
creation of the Department of Homeland Security have substantially
contributed to our success.
At the direction of Congress and as dictated by threat, we have
focused significant resources on strengthening the aviation security
system. Even as we were standing up the agency, we successfully met an
aggressive schedule to federalize the screener workforce and enhance
security technology for the detection of explosives and other purposes.
TSA has built a highly skilled screening force, created mechanisms to
balance the placement of screeners in airports across the Nation, and
reduced attrition to a fraction of its pre-9/11 levels. We have
deployed explosives screening technology in all airports through the
certification, purchase, and installation of approximately 1,000
Explosives Detection Systems (EDS) and 5,300 Explosives Trace Detection
(ETD) machines at airports throughout the country. We have trained and
deputized thousands of Federal Flight Deck Officers. TSA has increased
cooperation with our international partners at airports overseas and
with air carriers that fly into and out of the United States. We have
required more than a million criminal history records checks for U.S.
airport workers needing unescorted access to secure areas of the
airport, and we are working on improving the access process as part of
our overall airport security program. Throughout this process, we have
been successful at capturing learning and quickly applying these
lessons to refine our training and testing methodologies. TSA strives
to use every tool at its disposal to motivate its personnel and advance
the security of the transportation system toward excellence.
The flow of intelligence on terrorists, their methods, and their
plans, has greatly improved our understanding of the threats that we
face and helped us focus our resources on meeting those threats. There
have been countless times when information shared with airports or
airlines has alerted them to threats and encouraged enhanced security
on their part.
In partnership with other DHS components and in coordination with
the Department of Transportation, State, local and private sector
partners, TSA's efforts in non-aviation security over the past two
years have focused on greater information sharing between industry and
all levels of government, assessing vulnerabilities in non-aviation
sectors to develop new security measures and plans, leveraging existing
security initiatives, increasing training and public awareness
campaigns, and providing greater assistance and funding for non-
aviation security activities.
We are dedicated to making every effort to continue to achieve our
mission to protect the Nation's transportation systems to ensure
freedom of movement for people and commerce.
9. Who are the stakeholders in the work of this department/agency?
TSA's stakeholders are private and public sector organizations and
associations that are impacted by policies to secure the various modes
of transportation. TSA's principal stakeholders are organizations that
represent the owners, operators, and interested parties associated with
the various modes of transportation. These include, but are certainly
not limited to, the traveling public; intergovernmental associations;
employee organizations; air carriers; airport, port, rail, and transit
operators; technology researchers and suppliers; cargo shippers and
handlers; and other private sector companies partnered with TSA on
security projects.
10. What is the proper relationship between the position to which
you have been nominated, and the stakeholders identified in question
number nine?
As a critical economic sector in the United States, our
transportation system is vital to our way of life. The relationship of
the Assistant Secretary of Homeland Security for the Transportation
Security Administration to the stakeholders noted in answer number nine
should be a true partnership involving regular information exchanges,
updates on developments, and mutual understanding of threats. This
partnership allows TSA to formulate strategic policy and ensure that
new and existing programs are responsive to stakeholders' needs and
reflective of their operational environments. Our work with
stakeholders creates a conduit through which TSA and stakeholders can
inform each other about policies and actions and respond to requests
for information. These relationships are indispensable to TSA's mission
to protect the Nation's transportation systems and to ensure freedom of
movement for people and commerce.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.
(a) What do you believe are your responsibilities, if confirmed, to
ensure that your department/agency has proper management and accounting
controls?
If confirmed as Administrator of the TSA, I will be entrusted with
ensuring the safety and security of the traveling public. At the same
time, I will also be entrusted with ensuring the proper stewardship of
TSA's resources on behalf of the U.S. taxpayers. Implementing an
effective system of internal controls, requiring sound financial
management, and ensuring compliance with laws and regulations are
fundamental responsibilities of department and agency leaders. As an
FSD and as Acting Administrator it has been my responsibility to verify
that TSA's resources are used efficiently and effectively to achieve
intended program results, while reducing the risk of fraud, waste, and
abuse. If confirmed as Administrator, I will continue my efforts to
lead the agency towards efficient operations and prudent use of
resources.
It is the role of the Administrator to ensure that TSA managers,
both administrative and operational, are aware of and appreciate the
requirements of the Federal Managers' Financial Integrity Act, the
Chief Financial Officers Act, and the Government Performance and
Results Act, as well as associated GAO, OMB, and Departmental guidance
for management, accounting and budgetary controls. The Administrator
must ensure that a culture of accountability and fiscal discipline
exists throughout the agency.
Furthermore, it is the role of the Administrator to guide the
agency's financial performance, through the annual financial statement
audits required by the Chief Financial Officer's Act. For the last two
years, TSA has gone above and beyond the minimum audit requirements.
Due to the formative nature of our organization, TSA has specifically
requested that its external auditors perform a standalone, full scope
audit of TSA's financial statements and notes rather than being part of
the consolidated departmental audits. This increased level of audit
scrutiny minimizes the overall risk of misstated financial results and
serves to better identify management control shortcomings and risk
areas. While the audits resulted in ``clean'' opinions, they identified
certain material internal control weaknesses, which must be corrected
to ensure resources are used effectively and efficiently. Currently,
our Office of Financial Management provides to me and the other senior
TSA leadership a monthly update that presents the status on the actions
being taken to correct material weaknesses. As Administrator, I will
continue to support audit initiatives and will push TSA management and
staff to correct known weaknesses and maintain ``clean'' audit
opinions.
In summary, while the Administrator must maintain a primary focus
on ensuring the agency meets its operating mission, it is also
important that public resources are used as judiciously as possible to
meet that mission. I will continue to push TSA to strengthen its
management control program, earn clean audit opinions, and be a
responsible steward of public resources.
(b) What experience do you have in managing a large organization?
As noted above, as a United States Naval Officer for almost 28
years I achieved the rank of Rear Admiral, and during my career, I was
responsible for commanding sailors and marines and entrusted with
billions of dollars of valuable military equipment. In both the Navy
and at TSA, I have successfully managed and led large organizations. I
was one of the first FSDs named by Secretary Mineta shortly after TSA
was stood up as an agency, and I served as the first FSD at Los Angeles
International Airport (LAX), one of the busiest airports in the nation
and the world. As the Acting Administrator for TSA since December 2003,
I have guided TSA as it has continued to improve its ability to provide
for security in all modes of transportation.
12. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.
(a) What benefits, if any, do you see in identifying performance
goals and reporting on progress in achieving those goals?
I see several benefits in identifying performance goals and
reporting on our achievement of them: (1) by doing so we improve
accountability and the confidence of Americans in federal government;
(2) it allows senior managers of departments/agencies to focus on the
actual results of his or her organization's activities and services,
thus improving the managerial and internal workings of the federal
government; and (3) it supports Congressional oversight and decision-
making activities. It is also my view that GPRA is uniquely successful
when compared to prior programs that tried to improve the working of
the Federal government because it requires that agency ``results'' be
integrated into the budgetary decision-making process.
(b) What steps should Congress consider taking when a department/
agency fails to achieve its performance goals? Should these steps
include the elimination, privatization, downsizing, or consolidation of
departments and/or programs?
Privatization or organizational changes may be appropriate;
however, they should be viewed as options among many considerations and
solutions. GPRA reporting procedures allow those departments/agencies
that fail to achieve their goals the opportunity to disclose the
reason(s) for their failures. GPRA also allows those organizations to
develop plans to achieve the goals they failed to achieve. It is my
view that the statute provides some flexibility in this area because:
(1) it is sometimes difficult to establish the cause and effect of a
failure to achieve a goal (as outside influences may contribute to an
outcome); and (2) some results will not be apparent for years. I
support the sequence of events stated in the law and note that it has
been Congressional practice to allow organizations to follow the
statute's guidance on this matter. Having stated that, it is my view
that if no improvements are noted after alternative corrective actions
have been implemented, then as stipulated by GPRA, budgetary
adjustments should be taken with the organization.
(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
If confirmed, my job would be to protect the Nation's
transportation systems to ensure the freedom of movement for people and
commerce. My performance goals should be linked to this mission and the
strategic and performance goals our agency is committed to for
successfully achieving the vision we share with the American people for
homeland security. TSA has a suite of performance goals and measures
designed to capture how effective and efficient we are in our
protection of the transportation system and overall customer
satisfaction with TSA.
13. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
TSA faces unique challenges in protecting the Nation's
transportation system and the American people, and I am committed to a
Model Workplace where the best employment ideals and practices are
exemplified. The most important resource at TSA is its employees, and
if confirmed, I will guide TSA to continuously set the standard for
excellence in transportation security by valuing its employees in
carrying out our mission.
To keep an organization headed in the right direction requires the
ability to lead, manage, and motivate people. Throughout my career and
as the Acting Administrator of TSA, I have encouraged open and direct
communication with employees. I have exercised effective leadership
through the application of sound management principles, judgment, and
strategic vision. Effective leaders lead people by example. It is
important to set the example if you expect to gain employee support and
participation. For large organizations such as TSA, strong leadership
is required to effectively carry out the agency's mission and meet its
goals. I take my responsibility seriously and believe skills,
abilities, and performance are enhanced by good working relationships,
which, in turn, contribute to the foundation of a strong organization.
In my role as Acting Administrator, I have fostered a philosophy of
cooperation and collaboration across the organization by creating an
environment where timely and quality data and information flow smoothly
and effectively among the staff Together with my senior staff, we
review in detail reports from FSDs on incidents concerning aviation
security, as well as daily reports of incidents affecting non-aviation
modes of transportation. I take this daily briefing very seriously and
will use it to shape the course I would like TSA to take. Today's
requirements call for a rapid response. Managers in the field must be
able to think independently and creatively in response to operational
needs. I am leading the organization in this direction by providing the
tools, policies and support, including outsourced support, which place
more responsibility and accountability at the local level. To this end,
I am developing a plan that gives FSDs more authority in hiring,
training, testing and managing their screener workforce.
I have worked to set clear goals and objectives which are
communicated to the entire organization.
If confirmed, I believe it would be my duty and responsibility to
provide the strategic focus for the organization by encouraging the
highest possible levels of achievement in activities undertaken by TSA,
effectively managing resources, ensuring opportunities exist for all
through employee development programs, supporting quality of life
initiatives, and valuing personal and professional integrity. I am a
strong believer in respecting our covenant with the workforce. This
covenant includes traditional themes regarding pay, benefits, diversity
in the workforce, fair treatment and equal opportunities for
advancement. This also includes performing work that is valuable,
creating a ``healthier'' TSA in terms of conflict management, stress
management, fitness and other wellness initiatives and, in general,
creating an organization that gains the full commitment and trust of
its workforce. I am committed to an organization that treats everyone
with respect, fairness, openness, and equality.
No employee complaints have been brought against me.
14. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please explain.
I am working closely with Members of Congress to ensure TSA remains
focused on preserving our freedoms while we go about our important work
of protecting America. I served TSA as the Deputy Chief of Staff from
August 2003 to December 2003. An important part of my duties in this
position involved coordinating TSA communications with Congress. I made
every effort to ensure that information about TSA programs and
initiatives was communicated to Congressional committees and that
requests for information were addressed in a timely and responsive
manner. As Acting Administrator of TSA, I have testified before
Congressional committees, including this Committee, on several
occasions on a wide range of budgetary and aviation and intermodal
security matters. As the FSD for Los Angeles International Airport
(LAX), I worked with the California Congressional delegation on matters
of interest to them concerning security procedures at LAX, one of the
busiest airports in the Nation. I also testified at a field hearing for
this Committee held at LAX in August 2002, chaired by Senator Boxer. I
also worked with Congressional Committees and Members of Congress in
several of my prior assignments with the Navy.
15. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
If confirmed, I would cooperate fully with the Inspector General of
the Department of Homeland Security and welcome the Inspector General's
recommendations for the effective and efficient management of the
organization.
16. In the areas under the department/agency's jurisdiction to
which you have been nominated, what legislative action(s) should
Congress consider as priorities? Please state your personal views.
At this time, I have no personal recommendations for priority
legislative actions. However, I am committed to working with Secretary
Ridge, Deputy Secretary Loy, and Under Secretary Hutchinson, and other
officials at the Department of Homeland Security and within the
Administration to develop any proposals for legislative action that may
be needed to successfully carry out TSA's important security mission.
17. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set of fair and objective established criteria? If
yes, please explain what steps you intend to take and a time frame for
their implementation. If not, please explain why.
Yes, I will see that TSA continues to allocate its discretionary
spending in an open manner that focuses on the threats to
transportation security and brings our resources to bear on mitigating
those threats. TSA currently allocates its appropriated resources among
thirty-four ``programs, projects, and activities'' (PPAs). These
allocations are made in accordance with the direction of the Congress
and in accordance with strategic plans of the Department of Homeland
Security and TSA. Through the TSA Chief Financial Officer, other senior
officials, and when required, through more formal communications, we
will continue to keep Congress fully informed of these PPA allocations
and any changes necessitated by operational requirements.
The Chairman. Thank you very much.
Mr. Frink, do you have an opening statement?
Mr. Frink. Yes, Mr. Chairman, I do.
The Chairman. Would you pull the microphone close to you,
please?
Mr. Frink. Certainly. Is that better?
The Chairman. Thank you.
Mr. Frink. OK.
STATEMENT OF ALBERT FRINK, EXECUTIVE VICE PRESIDENT,
FABRICA INTERNATIONAL, NOMINATED TO BE ASSISTANT
SECRETARY OF MANUFACTURING AND SERVICES,
DEPARTMENT OF COMMERCE
Mr. Frink. I would first like to begin by stating that I am
profoundly aware that the U.S. Senate's constitutional
responsibility to give its advice and consent to the President
on Presidential nominations is one its most important
responsibilities. As such, a Presidential nomination is one of
the highest honors bestowed upon an American. Therefore, I am
very truly honored.
Chairman McCain, distinguished Members of the Committee, I
am humbled and very proud to have this opportunity to come here
before you today. I wish to thank the President for nominating
me to be the first Assistant Secretary for Manufacturing and
Services, and Secretary Evans for supporting my nomination.
I also wish to express my deep appreciation to the industry
associations, like NAM, the CRI, and the many other wonderful
manufacturing organizations and service organizations, too
numerous to mention, that have supported this nomination.
Thank you very much for giving me a chance to actually
introduce--well, to recognize my wife and family, who are here
with me today. Denise has been a blessing and a source of
strength to me. I have asked her to sell her home, to move
thousands of miles away from friends, family, and the life we
have known. This is a real sacrifice, and I thank her for that.
That's nothing that you haven't done yourselves, so you know
what that's like.
I would like to summarize, briefly, my personal and
professional background to help you determine how these
experiences will affect my approach to the responsibilities of
Assistant Secretary for Commerce and Manufacturing.
It is not my style to talk about myself, so this testimony,
in itself, doesn't come that easy.
I am a man of business and industry, not of politics. I
have never served the government before, and I'm pursuing this
position, for a great extent, to say thanks to this country
that's given me so much.
I am a Hispanic immigrant, born in Chihuahua, Mexico. My
Spanish mother, Blanche Olivares, was born in El Paso, Texas;
my father, New Mexico; his father was German Dutch, a tulip
farmer; and his mother was a Native American. And I'm very
proud of that.
I was raised in California in a blue-collar environment,
and, very early on, my father taught me the importance of a
strong work ethic, and I have followed his advice. My father
also taught me the importance of an extensive education. Sadly,
I didn't follow that advice, as I left college early to pursue
the American dream.
Having said that, I am convinced that that judgment has
driven me to work harder to excel throughout my entire career.
Nevertheless, the diversity of my limited education--such as
training and tool engineering, mechanical drafting, and
electronics, to name a few--has played a major role in my
success, and, I think, will help me, if confirmed, as I go
forward.
About my business. In 1974, along with two partners, and
with the help of a Small Business Administration loan from SBA,
I founded a California company--carpet manufacturing company.
We started with only five individual, three entrepreneurs, and
now we employ over 400 people. In over 30 years, we have never
experienced a major layoff.
It's been a passion and a privilege to be part of building
a successful organization from the ground up, and attracted
some of the best people in the industry. Fabric International
is generally known and ranked as the number-one high-end carpet
manufacturer in the United States. As a matter of fact, many of
the carpets you walk around on throughout the government
offices were manufactured by our company. And I truly didn't
mean that to be a commercial.
[Laughter.]
The Chairman. But it is.
Mr. Frink. But it is.
[Laughter.]
Mr. Frink. Thank you. I'm very proud of that.
I've devoted 30 years to this highly competitive carpet
industry in California, and this experience also includes 23
years of international trade experience; thus, providing me a
global perspective, something I'll need. And I also spent 35
years in merchandising, marketing, and developing successful
sales teams.
I do believe this experience brings with it practical
experience, authenticity, and provides me with a keen insight
into the needs of manufacturing and service sectors. These
experiences have also provided me with an expansive background
that's necessary to tackle the complexities of this newly
created position.
You know, our country's ability to create and commercialize
new products is unmatched anywhere in the world, and that
ability has led to unsurpassed economic growth. As we go
forward, if I am fortunate enough to be confirmed by this
Committee and the Senate, I pledge to make myself available to
personally work with you on all the challenges that confronts
us jointly as we go forward in the future.
I believe it was my destiny that brought me to this point,
as I did not seek this opportunity. But with your support, and
God's help, I promise I will not let you down.
In closing, I would very much like to thank you my family,
my friends, and, most importantly, my wife, Denise, for their
support of my decision to take on this assignment in public
service. Again, I'm honored to be here. I'm proud of having the
opportunity to serve the President, the Secretary of Commerce,
and this Senatorial Committee, as well as the American
manufacturers. Mostly, I'm proud to be an American and play a
small role in serving our great country.
I thank you.
[The prepared statement and biographical information of Mr.
Frink follow:]
Prepared Statement of Albert Frink, Nominee to be Assistant Secretary
of Commerce for Manufacturing and Services, Department of Commerce
I would like to first begin by stating that I am profoundly aware
that the U.S. Senate's constitutional responsibility to give its advice
and consent to Presidential nominations is one of its most important
responsibilities. As such, a Presidential nomination is one of the
highest honors bestowed on an American. I am very honored.
Chairman McCain, Senator Hollings, and distinguished Members of the
Committee, I am humbled and very proud to have this opportunity to come
before you today. I wish to thank the President for nominating me to be
the first Assistant Secretary for Manufacturing and Services and also
Secretary Evans for supporting my nomination.
Thank you for giving me the chance to recognize my wife Denise and
my family who are here with me today. Denise has been a blessing and a
source of strength for me. I have asked her to sell our home and move
thousands of miles away from friends, family, and the life we have
known. This is a real sacrifice. Thank you, Denise.
I want to summarize briefly my personal and professional background
to help you determine how those experiences would affect my approach to
the responsibilities of the Assistant Secretary of Commerce for
Manufacturing and Services.
It is not my style to talk about myself, so this testimony does not
come easy. I am a man of business and industry, not of politics, having
never served in government before. I am pursuing this position as a
thank you to this country that has given me so much.
I am a Hispanic immigrant, born in Chihuahua, Mexico. My Spanish
mother Blanche Olivares was born in El Paso, Texas. My father, in New
Mexico. His father was German Dutch (a Pennsylvania tulip farmer) and
his mother was Native American. I was raised in California in a blue-
collar environment, and very early on, my father taught me the
importance of a strong work ethic, and I have followed his advice. My
father also taught me the importance of an extensive formal education.
Sadly, I didn't follow that advice, as I left college early to pursue
the American Dream.
Having said that, I am convinced that this judgment has driven me
to work harder to excel throughout my career. Never the less, the
diversity of my somewhat limited formal education with training in tool
engineering, mechanical drafting, and electronics, to name a few, has
played a major role in my success.
In 1974, along with two partners, and with the help of a small
business loan from the SBA, I founded a California carpet manufacturing
company. We started with 5 individuals, 3 of us entrepreneurs. We now
employ over 400 people. And, in over 30 years, we never experienced any
major layoffs. It's been a passion and a privilege to be part of
building a successful organization from the ground up that attracted
some of the best people in the industry.
Fabrica International is generally ranked as the #1 high-end carpet
manufacturer in the United States. Many of the carpets you walk on
throughout government offices were manufactured by Fabrica.
I have devoted 30 years to the highly competitive carpet industry
in California. This experience also includes over 23 years of
international trade experience, thus providing a global perspective. I
have also spent over 35 years in merchandising, marketing, and
developing successful sales teams. I believe this experience brings
with it a practical experience and authenticity and provides me with a
keen insight into the needs of the U.S. Manufacturing and Service
Sectors.
These experiences have also provided me with an expansive
background that's necessary to tackle the complexities of this newly
created position.
Our country's ability to create and commercialize new products is
unmatched, and that ability has led to unsurpassed economic growth.
As we go forward, if I am fortunate enough to be confirmed by the
Committee and the Senate, I pledge to make myself available to
personally deal with any and all challenges that confront us jointly in
the future.
I believe it was destiny that brought me to this point, as I did
not seek this opportunity. With your support and God's help, I will not
let you down.
In closing, I would like to thank my family and friends, and most
importantly my wife Denise, for their support of my decision to take on
this assignment in public service. I am proud to be here. And am proud
of having the opportunity to serve President Bush, Secretary of
Commerce Don Evan, and this Senatorial Committee. Mostly, I am proud to
be an American and to play a small role in serving our great country.
______
a. biographical information
1. Name: (Include any former names or nicknames used.): Albert (Al)
Allen Frink.
2. Position to which nominated: Assistant Secretary of Commerce for
Manufacturing and Services.
3. Date of nomination: Thursday, June 17, 2004.
4. Address: (List current place of residence and office addresses.)
Residence: Information not released to the public.
Office: Fabrica International, 2801 Pullman Street, Santa Ana,
CA 92705.
5. Date and place of birth: Chihuahua, Mexico; November 18, 1942.
6. Marital status: (Include maiden name of wife or husband's name.)
Married--Wife: Denise Lee (Masterson) Frink;
7. Names and ages of children: (Include stepchildren and children
from previous marriages.): None.
8. Education: (List secondary and higher education institutions,
dates attended, degree received, and date degree granted.)
Pasadena City College--1961-1963
Los Angeles City College--1963-1964
9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
1974-Current: Executive Vice President and Co-Founder
Fabrica International, Santa Ana, CA
1973-1974: Vice President, Sales and Marketing
Sunwest
14020 Bolsa Lane, Cerritos, CA
1967-1973: Director of Sales
Continental
2808 S. Vail, City of Commerce, CA
1959-1967: Manufacturing (of wooden products) and Sales
Development (carpet and drapery), Window
Merchandising, and Drapery Workroom.
Les Burns Sales
Pasadena, CA
(Part-time through college, full time as of 1965)
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above. None.
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.)
Executive Vice President--Fabrica International
Investor Partner--DenRec (real estate position, passive
investor)
Investor Partner--Finish Line Investments (an S Corp position:
Secretary)
Investor Partner--1 Pelican Hill Road North-L.P. Real Estate
Project (passive investor)
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
Lincoln Club--Board Member
Pacific Symphony--Board Member
Orange County Metro YMCA--Board of Directors
Latino Coalition
Hispanic 100
Carpet & Rug Institute--Industry Advisor
Southern California Floor Covering Association--Club Board &
President
Western Floor Covering Association--Board Member
National Rifle Association--Supporting Member
13. Political affiliations and activities:
(a) List all offices with a political party which you have held or
any public office for which you have been a candidate. None.
(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years. None.
(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years.
7/27/2000--$500--Republican National Committee--RNC
9/7/2000--$500--California State Republican Party
9/9/2003--$2,000--Rosario Marin for U.S. Senate Inc.
4/12/2004--$2,000--Bush-Cheney 2004 Inc.
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
Silver Trumpet Award, the Industry's most prestigious award--
Southern California Floor Covering Association
Distinguished Service, Native American Preparatory School
(NAPS)
Spirit of Fabrica Award
SBA Hall of Fame 2004 Best of the Best
YMCA Distinguished Service 2004
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.) None.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated.
SBA Hall of Fame Award Acceptance Speech
17. Selection:
(a) Do you know why you were selected for the position to which you
have been nominated by the President?
Yes. My extensive background of 31 years in manufacturing brings
with it practical experience and authenticity that will assist in
recognizing and hopefully removing the barriers that challenge American
manufacturers, as well as the Service Sector.
(b) What in your background or employment experience do you believe
affirmatively qualifies you for this particular appointment?
30 years of successful experience in the highly competitive
carpet manufacturing sector in California provide a keen
insight to the needs of U.S. manufacturers.
Building a successful organization from the ground up,
successfully attracting some of the best people in the
industry.
This experience also includes over 23 years of international
trade experience provides a global perspective.
The diversity of interests and learned skills that have been
applied to the development of our business.
My technical education in Mechanical Engineering & Drafting as
applies to tool and dye making.
35 years of merchandising, marketing, selling, and developing
successful sales teams.
In over 30 years we never experienced any major layoffs.
Fabrica International is generally ranked as the #1 top quality
carpet manufacturer in the United States.
These experiences have provided me with an expansive background
necessary to tackle the complexities of the newly created position of
Assistant Secretary of Manufacturing and Services.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations, or business organizations if you
are confirmed by the Senate?
Yes, with the exception of my DenBec passive investor partnership
in real estate.
I will resign as secretary of Finish Line, a small investment
holding company.
I will remain a passive real estate investment partner in 1 Pelican
Hill Road North L.P.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, please explain. None.
3. Do you have any plans, commitments, or agreements after
completing government service to resume employment, affiliation, or
practice with your previous employer, business firm, association, or
organization? None.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? None.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes, I do!
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers. None.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated. None.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated. None.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy. None.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.) Not
Applicable.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes, I agree.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? If so, please explain.
I was cleared of a groundless claim. In 2000 along with others in
my company, I was the subject of a discharged female employee's
complaint of verbal sexual harassment. There was a complete
investigation, a documented response, and the complaint was judged as
groundless and thereby dismissed.
2. Have you ever been investigated, arrested, charged, or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than for a minor traffic offense? If so, please explain.
1961 Misdemeanor Misconduct Action Fine
1972 Reckless Driving Fine
1979 DUI Fine
1982 DUI Fine
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
Fabrica sued a competing carpet manufacturer in 1981 for copyright
infringement that evolved into a trade dress violation, which required
extensive litigation. Eventually with overturned jury verdicts, and
appeals, etc., we were ultimately victorious. The verdict required this
company to remove their copied design products from the marketplace and
we settled financial damages out of court.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, please explain.
1961 Misdemeanor Misconduct Action Fine
1972 Reckless Driving Fine
1979 DUI Fine
1982 DUI Fine
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination.
Favorable.
First is my commitment to succeed in this position.
Secondly, it is important to me for the Committee to know how
extremely fortunate I feel to have immigrated to this country and to be
presented an opportunity to pursue the American Dream. I was planning
to resign from my company after 30 years to pursue other interests when
this opportunity to serve was presented to me. If I am confirmed, I am
committed to put forth my very best efforts and apply every skill I
have acquired in over 50 years of working experience (my first job was
at 11 years of age). I truly believe there was a reason that this
challenge crossed my path at this time.
This appointment also presents me with an opportunity to give back
to the country that provided so much opportunity.
Unfavorable: None to my best recollection.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees?
Yes, I will to the best of my ability.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures?
Yes, I will to the best of my ability.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee?
Yes, I will to the best of my ability.
4. Please explain how if confirmed, you will review regulations
issued by your department/agency, and work closely with Congress, to
ensure that such regulations comply with the spirit of the laws passed
by Congress.
I do not believe that in my position I will not have regulatory
drafting authority, however as Industry brings forward examples of
overly burdensome regulations, I view my department as having
responsibility to work with other agencies and Congress to address
these regulatory issues, especially as it pertains to medium and small
size companies.
5. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so?
Yes, I will.
f. general qualifications and views
1. How does your previous professional experiences and education
qualify you for the position for which you have been nominated?
Professional Experience
My professional lifetime experience includes starting two
manufacturing companies--both very successful--in one of the
most competitive industries. Both based in California with its
higher cost disadvantage over competition in the South.
23 years of extensive international business experience,
including eight years as a member of the U.S. Textile Advisory
Committee.
I will champion the competitive issues for Manufacturing and
Services as a voice of experience.
I believe my immigrant Hispanic heritage and subsequent
business success will provide trust, inspiration, and identity
to many minority owned companies.
Education
Let me begin by stating for the record that my one life
regret is not completing my college education, as I ambitiously
opted to enter the business sector. Having said that, I am
convinced that this unfortunate judgement has driven me to work
harder to excel throughout my career.
Nevertheless, the diversity of my limited formal educational
pursuits has played a major role in my success, i.e.,
mechanical drafting, tool engineering, electronics, civics,
English composition and music, and 35 years of business and
manufacturing knowledge.
2. Why do you wish to serve in the position for which you have been
nominated?
First, I--as much as anyone I know--have benefited from this
wonderful country and its opportunities to achieve the American Dream.
Secondly, my years of successful experience in the sector I will be
serving has prepared me for this challenge. Thirdly, because I believe
I can be effective and make a difference.
3. What goals have you established for your first two years in this
position, if confirmed?
If confirmed, my initial goal will be to develop an understanding
of the people, the department, and the programs that constitute the
Department of Commerce.
Following that, I plan to focus my energies to the highest
priorities of the over 50 initiatives of the Manufacturers Report.
If confirmed, I will bear responsibility to work with the Secretary
of Commerce and the Chief Financial Officer to ensure that proper
management and accounting controls are in place. Together we will be
responsible for preparing an annual accountability report which groups
together in one place all legislated financial management reports.
Develop an infrastructure that will serve the next incoming
Secretary.
While the above is in process, I will begin addressing the over the
many American manufacturing initiatives, along with the President's 6
Point Plan for the economy.
It is important to state that I will be focusing on the highest
priorities of the Administration, Congress, and the Manufacturing
Council's recommendations.
Although the Manufacturing Sector represents the highest priority
in terms of focus, the Service Sector still represents the largest
component of the U.S. economy at approximately 75 percent of the
Private Sector CDP, and supporting approximately 86 million jobs, I
will work closely with DAS Douglas Baker to accomplish the following
their major issues/initiatives:
Travel and Tourism Promotional Campaign
U.S./Japan Tourism Export Expansion Initiative
Integrity of the Statistical Infrastructure for the Tourism
Industry
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills?
Formal academic financial and economic, which I will counter by
surrounding myself, as I have in the Private Sector, with the most
capable people to assist making me effective.
Also, I do not have experience serving in the government, but I
will apply my best efforts to acquire the knowledge throughout the
confirmation process and in the early months of my service.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when society's problems
should be left to the private sector, and what standards should be used
to determine when a government program is no longer necessary.
I believe that the United States government is charged with the
responsibilities defined within the Constitution, such as, but not
limited to, national defense, the safety of U.S. citizens, supporting
an economic system conducive to the growth of the U.S. economy, and
managing foreign policy. Government is also responsible for supporting
American business in the global marketplace, supporting and monitoring
fundamental research to preserve the health and technical advancement
of our society. The government should also be responsible for managing
our natural resources and protecting our environment.
Specifically, with respect to activities in the Department of
Commerce, government should play the role of encouraging the great
American economic system to operate at full efficiency to the benefit
of all citizens. Government regulation should provide appropriate
limits on private sector activity but should be utilized sparingly.
Environmental standards, workplace safety, anticompetitive behavior,
proper financial reporting, and the like should be governed by
appropriate regulatory standards. Such regulation should ensure the
safety, fair treatment, and sense of well being for all U.S. citizens.
I believe it is also important that all regulations be constructed and
updated so as to recognize the tremendous changes that have occurred
and are likely to occur in society at large. For example, many of our
regulations and laws were developed at a time when American commerce
dominated the world. With rare exception, such domination no longer
exists. Global competition dominates the world landscape and U.S.
regulations and laws should recognize that. Similarly, the rapid speed
of technological change is breathtaking in speed and grandeur.
Legislation and regulation will be hard pressed to keep pace, but every
effort must be made to do so.
When should society's problems be left to the private sector?
To the extent possible, the U.S. regulation and law should not
stifle creativity and innovation nor over regulate the development of
new products. Innovation is an American trait that is unsurpassed
globally. Over regulation and legislation can only serve to compromise
that process and should be administered sparingly.
6. Describe the current mission, major programs, and major
operational objectives of the department/agency to which you have been
nominated.
As Assistant Secretary of Commerce for Manufacturing and Services,
my primary mission will be to advance the interests of U.S.
manufacturing and service industries and their workers.
To fulfill my mission programmatically, I would insure that the
industry sector agencies are responsive to the needs of industry for
domestic and international needs.
7. What do you believe to be the top three challenges facing the
department/agency and why?
1. Establishing an efficient structure that will insure success
and provide an organizational base for the future of this
Department/Agency.
2. Working with the Administration and Congress to effectively
remove barriers that will help unleash the potential of
America's manufacturing might, and create skilled, well
compensated, job opportunities.
3. Reach out and stay in contact with the industry to
understand the evolving challenges to U.S. competitiveness to
insure timely response by policy makers.
8. In reference to question number six, what factors in your
opinion have kept the department/agency from achieving its missions
over the past several years?
This is a newly created division with no prior reference to its
achievements.
9. Who are the stakeholders in the work of this department/agency?
At the end of the day the American citizens, the government, and
all of its departments/agencies are the intermediaries or
representative stakeholders.
10. What is the proper relationship between the position to which
you have been nominated, and the stakeholders identified in question
number nine?
As Assistant Secretary of Commerce for Manufacturing and Services,
I am responsible first to the Secretary of Commerce and with him to all
American citizens, and then intermediaries or representative
stakeholders. First, we are responsible to the President and the
Executive Branch of the Federal government for implementing the
President's policies to the best of our ability. Second, we are
responsible to Congress and its various committees from whom we receive
financial support and legislative requirements and to whom we are
obliged to report our progress and to respond to suggestions and
criticisms.
11. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices.
(1) What do you believe are your responsibilities, if confirmed, to
ensure that your department/agency has proper management and accounting
controls?
If confirmed, I will bear responsibility to work with the Secretary
of Commerce and the Chief Financial Officer to ensure that proper
management and accounting controls are in place. Together we will be
responsible for preparing an annual accountability report which groups
together in one place all legislated financial management reports.
(2) What experience do you have in managing a large organization?
None, other than my experience at Fabrica International. However,
with few exceptions, I believe the same management principles apply
regardless of scale.
12. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.
(1) What benefits, if any, do you see in identifying performance
goals and reporting on progress in achieving those goals?
If you are an achiever, goals are essential to drive progress that
leads to success. People perform at their best when they know the
vision and mission of their position and that the success of that
vision/mission is dependent on all the individuals that drive the
progress.
(2) What steps should Congress consider taking when a department/
agency fails to achieve its performance goals? Should these steps
include the elimination, privatization, downsizing, or consolidation of
departments and/or programs?
Replace responsible party or parties. Analyze cause of failure. The
government should evaluate and determine if the goals were realistic
and achievable. Was there sufficient infrastructure in place? Determine
if there was leadership failure.
(3) What performance goals do you believe should be applicable to
your personal performance, if confirmed?
It is my goal that my performance will be viewed as having
performed to the expectation of bringing private sector experience to
this position in an ethical, inclusive, results-oriented manner of
performance.
13. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you?
I follow the model standard that has serve me well throughout
my career
Lead by example
Bring passion to the tasks at hand
Exhibit a strong work ethic
I believe in establishing attainable goals. Assign
responsibility, teach people to take ownership, do not micro-
manage, measure progress, reward results.
To the best of my knowledge, I am not aware of any complaints
beyond the one previously mentioned of which I was cleared.
14. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please explain.
I have had no prior working relationship with Congress or its
committees.
15. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency.
The Inspector General, as I understand it, has a role of
investigating any instances of fraud, waste and abuse that are thought
to exist within the Department. The Inspector General then has an
obligation to report his/her findings to the Secretary and to Congress.
I hope to develop a relationship of trust with the Inspector
General of the Commerce Department so that he/she would communicate
frequently and freely with the Secretary's office to effect prompt
remedial action, if warranted.
16. In the areas under the department/agency's jurisdiction to
which you have been nominated, what legislative action(s) should
Congress consider as priorities? Please state your personal views.
Some priorities are: Competiveness such as litigation reform,
health care reform, energy reform,
The full details of needed reforms can be found in the
Manufacturing in America report released by the Department of Commerce
in January 2004.
17. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending in an open
manner through a set of fair and objective established criteria? If
yes, please explain what steps you intend to take and a time frame for
their implementation. If not, please explain why.
As I understand, the bulk of the budget for my position will be
assigned to overhead. The discretionary funds are to advance the policy
objective of my office to support the work of the Commerce Department
on behalf of the Manufacturing and Service Sectors, of their
industries, and the newly created function of providing industry
analysis support for sound policy making.
The Chairman. Thank you, sir.
Senator Wyden?
Senator Wyden. Thank you, Mr. Chairman.
Let me begin with you, Admiral Stone. My colleague, Senator
Dorgan, is here, and he and I have teamed up on the butane
lighter issue, so I think I'm going to let him start with that.
But let me, if I might, begin with the CAPPS-2 program,
because obviously this is a program that will touch the lives
of millions of Americans. After a year of pretty pointed
questions that I have been asking your agency, I received,
today, and I'll just quote, ``At this point, the proposal for
aviation passenger pre-screening is being reshaped.'' I asked a
variety of questions, and that was your response. So, for all
practical purposes, it sounds like you all are back to the
drawing board with respect to the proposal. And I think I'd
like to begin by having you tell us, at this point, what, in
your mind, is this program going to do? And what, in your mind,
is this program not going to do? Because that, I think, is what
people want to know from you.
Admiral Stone. Yes. The CAPPS-2 program, indeed, is, right
now, undergoing a reshaping. It is not going forward as
previously briefed. Previously, CAPPS-2 has been briefed that
it would have four pillars. The first pillar would be a
verification of IDPs, where we would bounce the name off a
commercial data base. The second pillar would be, we would take
that name and run it against the Terrorist Screening Center
data bases to see if it matched a terrorist list. And then the
third pillar was going to be a risk assessment, in which we
would develop algorithms to determine the degree of risk, so
that we could then make a determination on a selectee at the
checkpoint.
Currently, at today's airports, under CAPPS-1, roughly 16
percent of the traveling public is selected to go to secondary
screening and be wanded and have that type of additional
layered screening. CAPPS-2 is envisioned of being able to
reduce that to about 5 or 6 percent, and that would be done by
this Risk Assessment Algorithm, which is the third pillar. And
then the fourth pillar was going to be a database of those that
are wanted for violent crime, outstanding wants and warrants.
As a result of a GAO report on privacy, as well as our own
concerns over privacy, to make sure that we had in place all of
those things that have to do with what is first and foremost
for the Department, under Secretary Ridge's vision statement,
which reads, ``Preserving our freedoms, protecting America, we
secure our homeland''--the first phrase being ``preserving our
freedoms--the Department and TSA feel very strongly that we
should not move forward on any program that in any way
infringes on the preserving of our freedoms. That's first and
foremost.
And so, thus, this effort to reshape and repackage and look
at CAPPS-2 to find out what we should be doing there so that we
can, one, enhance security----
Senator Wyden. What are--because I know that my time's
short----
Admiral Stone. Yes, sir.
Senator Wyden.--what are the major aspects of this
reshaping program? You've described what the program used to
consist of. What are the major aspects of the reshaping that
are now taking place?
Admiral Stone. Right now, what the major aspects are, to
look at those four pillars and find out which one of those
pillars needs to either be curtailed or eliminated, and then
the program still result in an enhancement of security and an
improvement of throughput at our Nation's airports to reduce
the number of secondary screenings. So those are the two
initiatives that this repackaging and reshaping are focused on.
Senator Wyden. Well, are you, for example, changing the
risk-assessment portion of the process?
Admiral Stone. All four of those pillars are being
revisited to be reshaped to see what works best.
Senator Wyden. When do you expect that this will be
completed? Because I think this has been, sort of, like the
marquee at the old movie house, ``Coming Soon,'' and then it
just kind of never gets there. And people, at this point, want
to know, with some predictability, when this is going to be
operational.
Admiral Stone. Well, there is a sense of urgency on this
issue to get it repackaged and reshaped. I would anticipate,
here in the coming weeks, we'll have some sort of decision here
within the Department on how to move forward with a program
that both enhances security over CAPPS-1, as well as it
enhances the throughput at the checkpoints.
Senator Wyden. So given the fact that this is a fundamental
reshaping, you would put it back in the Federal notice--in the
Federal Register sometime in the next few months?
Admiral Stone. It would depend on what the reshaping looks
like and what those requirements are, but we'll certainly--the
focus it, as it should be, is preserving our freedoms and
privacy, and, thus, a number of other initiatives that we've
undertaken at TSA along the privacy front--hiring a privacy
officer, inculcating Privacy Act training for all people in the
field and at headquarters--that preserving of freedom----
Senator Wyden. What do you think the public deserves here?
The frustration in the past has primarily been that people have
been given these, sort of, general statements of goals, which
you have outlined again this afternoon. Nobody objects to the
goals. Everybody wants to make sure that terrorists don't get
on airplanes, and everybody wants to be sensitive to freedoms.
But we've got to have more than goals. What do you think that
the public deserves in this area?
Admiral Stone. I think, first and foremost, they deserve a
program that is thoughtfully reviewed to ensure that privacy
and preserving of freedoms is not trampled on, and that's
exactly what we're doing. We're making sure that we're very
careful, as we should be, about looking at this and making sure
that it's reshaped and repackaged with that to be first and
foremost.
And then what's the expectation the public should have is a
system that's better than CAPPS-1, that brings it within the
government--currently, that is handled by the airlines, so
there's a degree of additional security that should be enhanced
by CAPPS-2--and also a system that reduces the number of people
that are looked at. Right now, with 16 percent of folks being
looked at for secondary screening, that's too high a number.
So a thoughtful program which gets at improved ID, also
enhancement of security, and then reduction of number of people
looked at, I think, is the end state that we'll see in the
product that's delivered.
Senator Wyden. My time is up. I just hope that you do a
better job of explaining it to people. You don't need to go
through these complicated risk-assessment formulas, but the
public does have a right to have some sense of how this program
is going to work, and they didn't have that in the past.
Also, because my colleague, Senator Dorgan, is going to ask
about it, we very much want to see you review this question of
the butane lighters. We know you're looking at the prohibited
items list, but certainly Robert Reid provided a wake-up call
for the kind of policy Senator Dorgan and I want, and I hope
we'll see it under your leadership.
I thank you.
Admiral Stone. Thank you, Senator.
The Chairman. Senator Wyden, we'd be glad to have a second
round if you'd like.
Senator Lautenberg?
Senator Lautenberg. Thanks.
Admiral Stone, we've been looking now, for some time, over
the manifest of the exodus of the Saudi Arabian citizens from
the United States after--immediately after 9/11. And while
inquiring about the circumstances of the airlift, my staff was
told that TSA would have to approve the release of any
information in the hands of airports and fixed-base operators.
But this event happened substantially before the formation of
TSA, and didn't involve matters of current national security.
What exactly is TSA's role in clearing information concerning
the Saudi airlift?
Admiral Stone. It's my understanding we have a joint
responsibility, some of that material residing within the FAA
organization. And so depending on what the particular item is,
it might fall under the purview of FAA or TSA. Our job is to
review that and find out what the legitimacy of the request is,
and then act on it.
Senator Lautenberg. Yes, well, what we'd like to find out,
very simply, is, How is it that these people were permitted to
go out of the country--many of them with the name bin Laden,
and one of them in particular as the sponsor of an organization
that had, according to FBI reports, significant terrorist
connections and, you know, in an investigation of a crime, and
we haven't ever seen one worse or as big in America as 9/11--
why is it that these people were released, at the time that
they were, to go ahead and leave the country? And it's a
bothersome thing, and we don't seem to be able to get any
answers. So I'd appreciate it if you would look into that
fairly promptly and let us know what's happening.
Now, in your statement, you talked about your chairing a
review of the intelligence assembled of the previous days, and
you say, ``We coordinate intelligence threats and risk
assessments.'' Do you share it with airports? Who does the
information get shared with, principally?
Admiral Stone. We share it with all of--what we call
stakeholders, all those that have an interest in the six modes
of transportation that we, as the sector lead for
transportation, deal with--so highway, mass transit, rail,
pipeline, aviation, maritime. We share with those folks. We
send it out that day if it pertains to a particular sector. And
there are different ways in which we do that. If it has to do
with the airlines, we'll send that through our principal
security inspectors directly to the airlines. If it has to do
with--those that have to do with the maritime arena, we'll
coordinate it through the Coast Guard to ensure it gets
disseminated properly.
We also hold a weekly teleconference, which I chair, with
all six stakeholder groups from all those modes, in which we
provide an update, intelligence assessment. Also, we have
public education initiatives, any advances in----
Senator Lautenberg. So the airports are current with the
information that you have, and they're included in the security
standing that we have, at the highest levels.
Admiral Stone. Yes, sir, we send it both through the AAAE/
ACI organizations for dissemination, as well as to our Federal
security directors at the airports.
Senator Lautenberg. I wonder if you could comment on the
effectiveness of the color-coded homeland security assessment
system? There was a report due to Congress 7 months ago this
week, alerting the public in a safe and instructive manner to
the threats so that we're not all just terrorized by
information. And I'm worried about the fact that DHS is not
taking the issue seriously enough in a review of what it is
that goes into the color coding and how do we deal with it. You
know, it's not specific enough that it relieves people of
worry, but it is broad enough to scare the devil out of them.
And I would hope that we can get something better. We heard
from Secretary Ridge last week, in a private briefing reserved
for Senators, and then we heard Secretary Ridge, in the
afternoon, describe what went on at the meeting, and I'm not
sure where we come out with these alert problems, but they have
to be looked at and defined more clearly, I think.
Admiral Stone. Yes, sir. And I think the direction we're
headed, as reflected last February, late January, when the rest
of the country went from orange to yellow, we kept a number of
airports at a higher tailored orange level, and that's been--
when we deal, right now, with future--if we were to go to a
higher threat level, what we've done, instead of having an
airport, like Des Moines, go to the same orange measures that
LAX goes to, what we're working right now is to have that
tailored for each particular airport, based on the Federal
security director partnering with the airport and the local
officials. So the direction, certainly TSA, under the
Department's direction, is headed is to go to tailored
responses in every opportunity we can.
Senator Lautenberg. I'm reminded that the data that we got
about this organization, this WAMY, which is the World Muslim
Organization--Youth Organization, the information that we had
was not directly from an FBI report, but referring more to
media reports that one of the principals, carrying a bin Laden
name, was very much involved with the organizations--the
terrorist organization Hamas, as well as the others.
And I close, Mr. Chairman. Mr. Frink, you've got an
important post that you've been appointed to. We want you to do
well. What would you describe as the principal thing that you
would do to spur the manufacturing economy in the country?
Mr. Frink. First, speaking to Chairman McCain, it is a
daunting task that's before me. I think the initial effort is
going to be to get--well, first of all, it has to be a main
advocate for manufacturing, a spokesman. The manufacturing
sector has never had a lead spokesman for their cause. I hope
to begin that process.
Senator Lautenberg. What would you do, specifically, if I
may ask? What would--how would that induce the manufacturing
sector? Do you think, kind of, leading the cheer, or is there
more to it than that?
Mr. Frink. Well, I think leading the cheer is important;
however, I think there has got to be a beef there, too, and not
just sizzle. And I think, to that end, I'm going to be working
closely with all of the advocates of manufacturing. There are
associations that have been the voice of manufacturing, and
they have issues that they've tabled that have been considered,
some of the barriers that are in place for--in terms of the
manufacturing, having to deal with that. There's going to be an
effort immediately to work on the initiatives that have been
established by a committee that has gone around the country,
made 20 visits to manufacturing sites to hear, get feedback.
And one of my first obligations will be to work on those
initiatives, which are exactly--speaking to what your question
is, it's going to--they're going to be addressing the multitude
of issues that are in place, some of which is reducing the cost
of healthcare, tort reform, areas such as that. There is just--
there are, like, over 50 tasks on the table to help
manufacturers become competitive.
I think the overriding, or under-riding, message is to make
America the most competitive place to do business. And as
industry flourishes, jobs and everything else goes with it.
Senator Lautenberg. Thank you.
The Chairman. Senator Dorgan?
STATEMENT OF HON. BYRON L. DORGAN,
U.S. SENATOR FROM NORTH DAKOTA
Senator Dorgan. Mr. Chairman, thank you very much.
First, let me say I intend to support the nomination of
both of you, and I think you're----
Mr. Frink. Thank you.
Senator Dorgan.--you are men of considerable talent, and I
appreciate your willingness to serve our country.
I didn't come so much to ask questions, because there's
seldom an opportunity to talk to you once you're confirmed. And
I know you'll answer your phone calls, but I want to make a
couple of comments, because both of you assume responsibilities
that are significant.
Mr. Stone, first, with respect to you, I want to show a
couple of charts. I don't know where the charts--oh, there they
are. That's with respect to the butane lighter issue that Mr.
Wyden raised. As you know, the rule was changed from being
silent on allowing butane lighters on airplanes to
affirmatively saying you can take two butane lighters and four
books of matches on an airplane. This says, Air Safety Week. It
had--Richard Reid had a--the shoe-bomber--he attempted to
ignite the bomb with a smokeless, odorless butane lighter. Had
he done that, rather than matches, which called it to the
attention of other passengers, that 767 may well have been
blown out of the sky. The FBI, in fact, said that. The FBI
said, had he had a butane lighter--and here is the direct
quote, this is from the FBI--``The belief is now that if he had
had a lighter and not a match, the thing would have
detonated.'' So, so much for butane lighters on airplanes. And
yet that is the current rule.
Here is a story about a Delta Airlines flight from Los
Angeles to New York diverted to Salt Lake City after a man with
a butane lighter alarmed flight officials. Here's a--Qantas Jet
police recovered an aerosol can and a cigarette lighter. They
suspect the assailant intended to use them as a flame thrower
to disable pilots once he got in the cockpit.
I'm telling you, I think it is nuts to have two butane
lighters and four books of matches go on an airplane,
especially when we've just been warned that terrorists,
potential terrorists, want to use stuffed dolls or stuffed
pillows with incendiary devices. And the response Senator Wyden
and I got from TSA, it said that many individuals carry
lighters that of great personal value or sentiment. I mean, I
don't know of anybody that's sentimentally attached to a BIC
lighter.
[Laughter.]
Senator Dorgan. But this is about serious issues dealing
with homeland security and air safety. And Senator Wyden and I
will both be talking to you, but I didn't want to miss the
opportunity to talk to you about that now.
Admiral Stone. Yes, sir.
Senator Dorgan. One other point. My colleague, Senator
Lautenberg, raised an issue that I think the public has been
dis-served on, with respect to press inquiry and others, I
might say, and that is the six secret flights that left Boston
with 142 passengers, 30 of whom were questioned. The number two
person of the FBI says no one--no one--was subject to serious
interrogation.
There were 26 bin Laden family members; among them,
Abdullah bin Laden, a cousin of Osama bin Laden. And,
incidentally, he was of notice to the FBI, and they didn't want
him to leave.
Mr. Richard Clarke said, ``Well, the request to have these
folks leave on six secret charter flights was approved at the
highest levels.'' He said he wasn't sure who. Now, this is
testimony before the Judiciary Committee, ``I'm not sure who,
but it was either the Chief of Staff of the White House, or the
State Department.''
And then he testified, under oath, before the 9/11
Committee, and he said, ``Well, I actually approved it, but
only after the FBI approved the flights and authorized the
flights.''
The FBI then said publicly, ``We did no such thing. We
didn't authorize the flights.''
Mr. Clarke said, ``And, by the way, they--all the
passengers were cleared.''
The FBI, the head of counterterrorism, says, ``No such
thing happened. In fact, only 30 were questioned, and, of them,
there were no serious interrogations.''
And we know at least two of them, at this point, that were
of interest to the FBI and had ties to terrorists, or potential
ties to terrorists.
And the 9/11 Commission says something that's very
interesting, because they're parsing this, as everyone else is.
The question is, did any of these people have ties to the 9/11
terrorist incident? ``Don't know.''
But the broader question is, Did any of them have ties to
terrorists groups or the financing of terrorist groups here or
anywhere around the world? That's the question. And no one is
seriously investigating it.
And so I did not know my colleague from New Jersey was
trying to get the passenger manifest list, but they ought to be
made available. And if--let me add my name to his request, and
you will soon receive from me a request for all of the
passenger manifest list, as well, because there ought to be
accountability for that.
Now, thank you, that's therapeutic for me to say that to
you, Mr. Stone, and you--I wish you well in your job. Your job
is an important job, and I want you to succeed, because if you
succeed, we will succeed in this country in safeguarding the
lives of the American people.
Mr. Frink, let me say this to you. We have a $470 billion
trade deficit. And I want you to succeed, as well. But you
won't succeed on healthcare and, you know, lawsuit issues. That
wouldn't have saved Huffy Bicycles. They were paying $11 in
Ohio to good workers, and they're now paying 33 cents an hour
to Chinese workers to make Huffy Bicycles. They work them 7
days a week, 12 to 14 hours a day. And the reason Huffy left
this country was because of that. It wasn't about all these
other issues. The little red wagon, the Radio Flyer, 100 years
it was in America, and it is now being produced in China.
Now, the question is, Are we going to be serious about
standing up and insisting on fair trade requirements?
And I want to mention one issue to you--if I have time, Mr.
Chairman. We just did a bilateral trade agreement with the
Chinese 2 years ago--and I'll bet most in this room don't know
this--our trade negotiator agreed with the Chinese, a country
with whom we had a $130 billion trade deficit--our negotiator
agreed with them that, after a phase-in, if there is automobile
trade going back and forth between the U.S. and China, we would
agree that they could have a 25 percent tariff on U.S.
automobiles sold in China, and we would have a two-and-a-half
percent tariff on Chinese automobiles sold in the U.S.--a
country with whom we have a giant trade deficit. Our negotiator
said, ``I'll tell you what, China, you're welcome to put a
tariff that is ten times higher on U.S. cars that we intend to
sell in China than we would put in Chinese cars we want to sell
in the U.S.'' Unbelievable. I don't know who did it. I'd like
to find their name.
But the first step, it seems to me, in dealing with the
manufacturing sector and dealing with trade and the Commerce
Department, is to stand up for American producers and demand
fair trade. Demand fair trade. I'm not suggesting you be a
protectionist. I'm not suggesting building walls. But I'm flat
sick and tired of seeing giant trade deficits that come in
bilateral relationships between us and Korea--yes, us and
Japan, us and China, us and Europe. I'm sick and tired of
seeing it happen, because our producers are disadvantages, and
our employees are disadvantaged, because of the rules of trade.
And I'm telling you, there's a lot of it going on.
So I'm going to support your nomination. And I came to talk
to both of you about it, only because I just feel strongly
about both of these areas. And I want you both to succeed.
But especially on international trade, Mr. Frink, all we
hear up here is chanting and a mantra. We've been hearing that
for years. The trade deficit goes up and up and up and up. And
you can make a case that the fiscal policy budget is a deficit
we will repay to ourselves. You can't make that with a foreign
trade policy deficit. Our trade deficit is a deficit that we
will repay ultimately with a lower standard of living in the
United States. It is dangerous, and we must get our hands
around it and deal with it.
So, Mr. Chairman, I thank you for allowing me to vent just
a minute with respect to these two nominees, but, as I said
when I started, I intend to support their nominations because I
think they are men of considerable talent, and I wish them
well.
The Chairman. Well, I think they--if they'd like, they'd
have an opportunity to respond, beginning with you, Admiral.
Admiral Stone. Yes, sir. TSA fully intends--and I intend,
personally--to review the issue related to the lighters and the
matches, and to make a risk assessment on that, based on the
criticality of the assets that we have, the vulnerability that
was mentioned here, as well as the overall dynamic here of
making a risk-based decision on what should and should not be a
prohibited item. And so I pledge to take that on and report
back to you.
Thank you, sir.
The Chairman. Mr. Frink?
Mr. Frink. First of all, thank you very much for your
support. I will absolutely do my best not to let you down.
I come from the private sector. We've done business in
foreign countries for 20 years. I take a considerable amount of
pride that a company our size reached into an international
market when it was not really that common for especially a
company our size. I, many times, when working opportunities
around the world, I have--I always wished that all the barriers
for trade were down, because I felt we needed to have an even
playing field.
I truly believe what I have been taught in the short time
in working with the Department of Commerce, is that the
President and the Department are all on the same page with
regard to wanting to level the playing field. I believe
passionately to enforcing the laws that are in place, and I
would support every effort to do that. I think that any foreign
companies that do not play by the rules should be dealt with in
a very firm manner in relation to their not staying within the
guidelines of a fair arrangement.
As I went around the world and did business, I have found
that part of our success--a great part of our success--was
raising the level of our value, rather than expecting any areas
to help us.
I'm very much a believer in branding. We built a brand name
for our company, and the branding actually became a strong
aspect of our success. People were paying more to do business
with us. So, whereas, in some cases, maybe I would have liked
to have worked the tariffs down, and some of the barriers, I
didn't that option, so I worked at building our reputation,
built a name where we have done projects in--I think we've done
projects overseas to the tune of a million dollars, and they
paid more for our--in our world, carpet is sold by the yard; in
their world, it's sold by the meter--some places have said
they've paid more for our carpet per meter than they in their
land cost. And I think that's been a byproduct of just the
success in building our brand identity.
Some companies don't have that in place, and need a
advocate to help them succeed. I won't shirk that
responsibility. I'll do everything I can. And, with your
guidance and your help, there's--you probably have some
passionate reasons or beliefs that you have with regard to
leveling that playing field--I hope to be an advocate for your
views, as well.
The Chairman. Senator Snowe?
STATEMENT OF HON. OLYMPIA J. SNOWE,
U.S. SENATOR FROM MAINE
Senator Snowe. That was quick, Mr. Chairman.
Thank you, and I certainly intend to support both nominees
here today for both very critical and significant positions.
Mr. Frink, let me just start with you, because we've been
long awaiting for this position to be filled, and it is an
essential position to help and bolster the manufacturing sector
of our economy. The manufacturers have been hard hit, and
that's certainly in my state of Maine, when we've had, you
know, one of the highest percentages of manufacturing job
losses in the country over the last few years. And so this
position becomes ever more important to have a unified,
consistent voice at the highest levels on behalf of the
manufacturing sector. And I think you understand that from your
own position and your background as a small-business owner.
One of the critical programs that has been beneficial to
manufacturers in America has been the Manufacturing Extension
Partnership, and, regrettably, it was reduced by more than half
over this last year, in the funding process. What is your
position with respect to this program, and how do you expect to
address it in the future, with respect to the funding of this
program? Because I have to say, I was extremely disappointed
that we lost this critical funding, that it's been reduced from
$109 million to $39 million. And hopefully we can reverse that
course for the next fiscal year. But it has been a vastly
successful program for manufacturers. So can you tell me what
your position is and what your views are on this program?
Mr. Frink. Yes, Senator. I have not heard anyone say
anything but good words about the Manufacturers Extension
Program. It seems to have unilateral support. In short, it's
working, it's helping a lot of manufacturers. And I don't--with
regard to budgeting and why it has been affected accordingly, I
don't have that knowledge and answer. I do know that--I'm
assuming, I guess, to some degree, that there were cuts made
across the board, and that may have been one that was in that
category.
What I would say, though, is, from a business perspective,
you make business decisions under a guise or a policy of what
we used to--what we call, our company, limited bullets. If you
have so many dollars to spend or so much ammunition, you put
them where they'll do the most good. And what I will be doing
is working to understand what all of the benefits of MEP and
trying to make--push decisions that--in the area where the
greatest results are achieved. That's if I'm--if there is
limited dollars for me to work with, then you make what you
have more effective.
But from what--I think, in the spirit of your question, I
think it's--from what I can see, it's a wonderful program, and
I hope that it continues to render results that I can support.
Senator Snowe. Well, you know, it's interesting--and I will
obviously want to talk to you further in the future about this
program, because I do believe that we need to reverse, you
know, this inadequate funding for this program, because, by all
accounts, it has been incredibly successful. In fact, a survey
that was done by a group in this--in manufacturing, found, in
Fiscal Year 2002, that the investment--it was $106 million in
the program--generated $2.8 billion in increased sales, and
retained 35,000 workers, resulting in $681 million in cost
savings, and $941 million invested in new plants and equipment.
So I do believe that it has tremendous benefits for
manufacturers, and has been, you know, a very effective
program, across the board, and we need to be able to help our
manufacturers, and this is one program to do it, at a time in
which, you know, we've made it our priority. I mean, hence,
this position that has been newly created that you will be
serving and paving the way. And so, therefore, it doesn't make
any sense to contravene, you know, the direction of placing
manufacturing as the highest priority by undercutting this
particularly effective program. So I hope we can work in the
future on this, because I do believe that it is a program that
needs to be funded, at least to the level that was provided for
in the past, of $106 million.
I want to--one other issue; there are many, but I won't--
but one of which I do want to get into--is the issue of China,
which obviously--China's trade deficits and the trade barriers
that have been established, its unwillingness, inability, or
whatever the case may be, to comply with the requirements and
the commitments that China made to be a member of the World
Trade Organization has had tremendous effects on our
manufacturing sector in Maine and throughout the country. And
we recently, the Commission--there was a Commission that
studied, for example, the exchange rate, as we know, that China
has been controlling, the value of their currency, vis-a-vis
our dollar. What's your view on this subject? And what types of
actions do you think that we should be taking, or could be
taking in the future, to persuade China to live by its
commitments in the WTO?
Mr. Frink. Well, as I said earlier, I truly believe that we
should--that I will be an advocate of enforcing all of the
rules that are in place, and holding anybody accountable to an
agreement that they've made. That's just what I've been about
all of my life, and how we've done business.
As to what--how I would assess their--how they have dealt
with us in relation to the WTO, I think, as my company--it was
a week ago I was in the private sector, and at my desk trying
to figure out how to sell more carpet.
[Laughter.]
Mr. Frink. And there's so much for me to learn, but I am a
quick study, and I will have a better answer for you on that as
I get more up to speed. If there is issues there--I do have
extensive experience in international trade. I've felt the pain
of dealing with the obstacles of international. I think you
will find that, to the degree of my capability, I will be a
very strong advocate to level the playing field and holding our
partners accountable to applying many of the same rules they
apply to us.
Senator Snowe. Well, I appreciate that, and I certainly
will be looking forward to working with you, because I do think
it's important for our government to take strong positions, you
know, especially against China, with respect to their, you
know, inability to be abiding by the commitments they made. And
as an--to become a member of the World Trade organization. It
certainly has disadvantaged our workers in our company, and I
think the currency undervaluation clearly has undercut our
manufacturing sector most especially, and I believe that we
need to take strong steps to make sure that China desists in
pursuing this--you know, artificially contriving their currency
value. I mean, I think that that is critically important.
So I hope that we will be able to work on these issues and
to evaluate exactly how, you know, we can address these issues,
and currency manipulation is first and foremost. I mean, I
think--and I know the President and the Secretary of Commerce
and the USTRs have all made strong statements to China in
respect to this issue, but I do think that we're going to have
to follow up with strong actions, as well.
And I will be looking forward to working with you. And, as
Chair of the Small Business Committee, since you were a small-
businessman and you used some of the small business programs, I
noticed, in your background, and, to great value, you were able
to build your company based on those programs, so I'm looking
forward to working with you to see how we can further help the
small-business manufacturer develop in this country.
Mr. Frink. I very much look forward to working with you. If
it weren't for SBA and the small loan of $100,000 that got our
company started, I literally wouldn't be here today.
Senator Snowe. Well, I appreciate you saying that, and
that's a story that, frankly, I think, isn't, you know, well
known, in general, about the value of small-business programs
and how much they leverage in job creation in America. And, you
know, with the small investments that we make in Federal
programs, they really do yield, you know, tremendous benefits
with respect to job creation. But I think that's a little-known
fact, so the fact that you have had that experience personally
and directly and effectively will be very helpful to
underscoring their value.
Mr. Frink. If I may elaborate on that just a touch, I
think--as I accepted an award on behalf of our company for an
SBA Hall of Fame, Best of the Best, I asked for an opportunity
to say that after 30 years I wanted to thank SBA. And not just
for the money. That was certainly part of it. It was the 2 year
plan that we were forced to put together to show that we could
be successful, that three young entrepreneurs certainly had a
vision and a sense of how to develop our business. But it was
SBA's tough regulations that they laid down before us that
created a blueprint, which they monitored--we didn't have a
chance to vary from it--so that the lack of discipline or
temptations of three young entrepreneurs were kept in check by
the guidelines that SBA put in place. And I absolutely credit
that--our success, not just for this money--I would rate the
guidelines that were put in place to be as big a factor in our
success as anything--and truly say thank you, SBA. So I'm a big
advocate.
Senator Snowe. Well, thank you. A great story. Thank you.
Senator Wyden [presiding]. I thank my colleague.
Mr. Frink, it dawned on me a few minutes ago, in and the
title of your position is Assistant Secretary of Manufacturing
and Services for the Department of Commerce, for all practical
purposes you will be the manufacturing czar. And I would like
to know what you think about outsourcing. And I thought that
maybe I'd ask you before Lou Dobbs asks you.
[Laughter.]
Senator Wyden. Because there are certainly going to be a
lot of other people that are going to ask you that question.
And I'd like to hear your thoughts on it.
Mr. Frink. Yes, sir. It's a big hot-button, in terms of
manufacturing and why our people, why our companies,
outsourcing and not keeping business and jobs here. I think
that's one of the things that my new position will require, is
to do what I can to create the most competitive environment for
American manufacturers so they're encouraged to keep business
here wherever possible.
It's difficult in business to tell a manufacturer, or any
service business, to not try to lower their costs. Intuitively,
they're doing their job when they try to do whatever they can
to lower their costs and make more money. Hopefully, that money
won't be just put in fat pockets; it'll be spent to expand
businesses, create new divisions that will hire more people, so
it has a--it has somewhat of a snowballing effect.
I do know that insourcing--kind of playing the other side
of the coin--where we have business putting its work outside of
borders of our country at the same time we have gained so much
from other manufacturers in other countries who have done that
in our country and hired so many Americans. So can we have it
both ways to say it's not good for us to do it, but we sure
enjoy the benefits of what comes into this country? Somewhere
there's a balance that needs to be met, and all I can tell you
right now is that I will work very hard to do what I can to
make the climate for manufacturing attractive here so that
there'll be less temptation or desire for--from an economy
standpoint, to go offshore. In principle, as an American, it
saddens me that we lose any of that. What made it happen and
what can we do to get it back? That's going to be very much
part of what I think people are going to expect from me and
measure my success.
Senator Wyden. It is a complicated question, and certainly
this matter of setting the climate is a key part of it.
Mr. Frink. Absolutely.
Senator Wyden. I come from a part of the world where
trade's extraordinarily important. I consider myself--I don't
think there are very many people left who even describe
themselves as free-traders, and I consider myself one. But I
really hope that you will be much bolder and more creative in
looking at this outsourcing issue than we've been in the past.
And I want to bounce off you an idea that I proposed
recently that's in a piece of legislation; and, granted, it
hits you for the first time, but it's on this issue of wages
and the fact that the wage differentials are so dramatic
between our country and, for example, much of the world. When
wage differentials were fairly modest, which they were for
years, we could make up the difference essentially through
increased productivity. Now our wages can be here, other
people's wages are here, and it's not possible to do that.
So, given that, I have proposed in legislation recently
that you would immunize management from lawsuits for keeping
jobs here in the United States, because I really fear that
where we're headed, if something bold isn't done soon, is that
corporate management will be sued for not taking jobs overseas.
In other words, the argument will be, from stockholders,
``Look, management, you're breaching your fiduciary obligations
to us, as stockholders, for not taking the plant overseas,''
and that management, in effect, would get sued in the United
States for keeping jobs at home.
What do you think of that idea? I recognize you're hearing
it, you know, for the first time, but it's coming, because I
think we're going to have to come up with some new ideas. I
don't think it's going to be enough to say we've got to hold
down healthcare costs and improve education and improve
transportation, because I agree with all of that, and those are
certainly parts of setting the climate. But I wonder your
reaction to the idea that I have just described. And maybe you
have some other ideas. Because I think we've go to be a lot
more aggressive and a lot bolder on this issue than we've been
in the past. First, your reaction on what I've proposed.
Mr. Frink. If I may just kind of back into a bit by saying,
first of all, I think one of my trademarks over the years has
been that I am a risk-taker. I think coming here and taking
this position certainly falls in that category.
[Laughter.]
Mr. Frink. I'm not afraid of risk--well, I'm afraid of
risk, but it doesn't keep me from taking risks. And I think
there has got to be some creative answers. And I love
creativity. That's been one of my other strong suits. As I get
to know more about how suggestions like your creative one
works, I also will want to have enough information to be able
to be able to say, well--I'm kind of a subscriber to Newton's
law, where every action there's somewhat of an opposite and
equal reaction--there may be something that I'm not quite
familiar with--and, as a counter to that creative proposal--
that I would probably like to get a sense of before I could
say, ``Great idea.''
I think, on the surface of it, it's certainly creative and
has merit, and I think I could learn a lot from you. If you
have--you seem to enjoy and favor creative answers. I thrive in
that environment, and I would very much like to have a chance
to learn a little bit more before I can give you the quality of
answer that I think that deserves. On the surface, without
knowing what other counterpoints are, I think it has some
potential merit.
Senator Wyden. Well, I appreciate that, and understand,
when it strikes you cold, you can't start talking about a piece
of legislation with specificity.
But I think what we've got to do is, we've got to reward
people for keeping jobs at home, and we've got to protect our
people who have paid their dues, like you have.
I've literally had people in Oregon come and say, ``We are
worried about getting sued for keeping the jobs here.'' And I
think that's what we're faced with. I think, if nothing is
done, I really do fear the prospect of a company's management,
people who have been in a community for years and years, worked
hard, paid taxes, played by the rules--I really feel that
they're going to have difficulty meeting their fiduciary
responsibilities, and I think we ought to be looking to reward
those people and protect them. And the fact that you're
willing, at least at this point, to make it clear that you're
open to new ideas is----
Mr. Frink. Not just ``at this point.''
Senator Wyden. Be ready for Lou Dobbs. He won't be as easy
on you as I have been.
[Laughter.]
Senator Wyden. I intend, as well, to vote for both of you,
and I appreciate the way you've handled the hearing. We'll let
either of you have the last word. Admiral Stone, Mr. Frink,
anybody have anything they want to wrap up with?
Admiral Stone?
Admiral Stone. Just what a privilege it is to be appearing
before this Committee, and thank you, sir, for this
opportunity.
Senator Wyden. Mr. Frink?
Mr. Frink. Yes, sir. I think, again, it's a daunting task.
It's one that I don't take lightly. I don't think one man has
all the answers and all the solutions. There are so many
agencies within the Department that I hope to be able to bring
together synergetically to be able to help make the right
answers and bring together agencies. As I get more
knowledgeable on the agencies and the Department of Commerce, I
am more excited about the other bureaus and what they can do to
help drive business. And, simply stated, I'm going to give you
the best I've got.
Senator Wyden. Very good.
Gentlemen, the Committee is adjourned.
[Whereupon, at 4:20 p.m., the hearing was adjourned.]
A P P E N D I X
Manufacturers in Support of Al Frink for Assistant Secretary for
Manufacturing
Chairman John McCain,
Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Ranking Member Ernest Hollings,
Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Dear Chairman McCain and Ranking Member Hollings:
On behalf of the Nation's manufacturing base, we urge you to
support the nomination of Al Frink as Assistant Secretary of
Manufacturing and Services at the Department of Commerce and ask you to
work with your colleagues to confirm his nomination as soon as
possible.
Mr. Frink's background and 30 years of experience in the
manufacturing sector give him keen insight into the needs of U.S.
manufacturers. In my opinion, he will serve as an outstanding advocate
and an important voice for American manufacturers and will work to
ensure that government policies do not harm nor neglect the people who
make things in America.
As you may know, the Commerce Department's ``Manufacturing in
America'' report released in January outlines the Administration's plan
for manufacturing growth and renewal in the United States. The report
makes nearly 60 recommendations that will contribute to this goal.
Implementation of these recommendations will demonstrably improve the
climate for U.S. manufacturers, as well as provide for the long-term
growth, job creation, and technological innovation that is needed to
guarantee our Nation's future prosperity. However, implementation is
unlikely to occur without a person dedicated to representing the
interests of manufacturers and our workers.
Mr. Frink will represent the Administration as point person on
manufacturing and will focus on ways to help this important sector
thrive and compete in the global marketplace. Working closely with the
Manufacturing Council, which has already held its first public meeting
and is lead by former NAM Chairman Don Wainwright, Mr. Frink will no
doubt be a strong and effective advocate for manufacturing in the
United States.
Once again, we urge you to confirm Mr. Frink as Assistant Secretary
of Manufacturing and Services.
Sincerely,
Aluminum Association
American Apparel & Footwear Association
American Architectural Manufacturers Association
American Fiber Manufacturers Association
American Furniture Manufacturers Association
American Gas Association
American Iron & Steel Institute
American Petroleum Institute
Associated Industries of Kentucky
Associated Industries of Massachusetts
Association of Home Appliance Manufacturers
Association for Manufacturing Technology
BEMA, The Baking Industry Suppliers Association
Book Manufacturers' Institute, Inc.
Carpet & Rug Institute
Colorado Association of Commerce & Industry
Connecticut Business & Industry Association
Cookware Manufacturers Association
Copper & Brass Fabricators Council
Council of Industrial Boiler Owners
Edison Electric Institute
Environmental Industry Associations
Fibre Box Association
Forging Industry Association
Georgia Industry Association
Hispanic Business Roundtable
Industrial Fasteners Institute
IPC--Association Connecting Electronics Industries
Kitchen Cabinet Manufacturers Association
Latino Coalition
Manufacturers Alliance/MAPI
Metals Service Center Institute
Metal Treating Institute
Motor & Equipment Manufacturers Association
National Association of Manufacturers
National Association of State Development Agencies
National Electrical Manufacturers Association
New Jersey Business & Industry Association
NOFMA: The Wood Flooring Manufacturers Association
Non-Ferrous Founders' Society
Ohio Manufacturers Association
Packaging Machinery Manufacturers Institute
Paperboard Packing Council
Plumbing Manufacturers Institute
Precision Machined Products Association
Precision Metalforming Association
San Diego Employers Association, Inc.
Steel Plate Fabricators Association
Steel Tank Institute
Synthetic Organic Chemical Manufacturers Association
Society of Glass & Ceramic Decorators
Steel Manufacturers Association
Utah Manufacturers Association
Valley Industrial Association of
Aurora, IL
Waste Equipment Technology Association
Wisconsin Manufacturers & Commerce
Wood Machinery Manufacturers of America
______
The Latino Coalition
July 11, 2004
Hon. John McCain,
Chairman, Senate Commerce Committee,
United States Senate,
Washington, DC.
Dear Chairman McCain:
On behalf of the Board of Directors of The Latino Coalition, I
strongly urge you to support the nomination of Al Frink as Assistant
Secretary of Manufacturing and Services at the U.S. Department of
Commerce.
There's no doubt that Mr. Frink's extensive and impressive
background, and his 30 years of experience in the manufacturing sector
will make him a great asset and an effective advocate for the needs of
U.S. manufacturers and their workers. We have worked closely with Al
throughout the years and let us assure you that there's no stronger
advocate for solid growth in our manufacturing sector. He will bring
his extensive experience, intelligence and common sense to help
implement policies that will guarantee the long-term growth, job
creation, and technological innovation that is needed to guarantee our
Nation's prosperity.
Al was the co-founder of a successful carpet manufacturing company,
Fabrica International, in Orange County, California. He personally
embodies the American Dream of a young immigrant who came to this
country looking for the opportunity to succeed and ended up founding a
very successful manufacturing firm and creating hundreds of jobs in his
community. He started this firm with the support of the U.S. Small
Business Administration and now has sales of over $60 million in 2003
and employs over 480 people in a predominantly Hispanic neighborhood.
But aside from his qualifications and knowledge in the field, what
impresses us most about him is his commitment to help the most
vulnerable in our community. We have witnessed this first-hand. Al's
served as chairman of our ``Por Mi Futuro'' program, designed to help
promote savings among our Hispanic youth. Without his leadership,
dedication and commitment to improving the lives of low-income
children, this program would have never implemented as successful as it
has been.
On behalf of Latino business owners and professionals across the
country, we urge you to support Al Frink's nomination and work hard to
make sure that the Senate confirms him as soon as possible.
Best regards,
Robert G. de Posada,
President.
______
American Iron and Steel Institute--STEELWORKS
Steel News--Thursday, April 8, 2004
STEEL INDUSTRY VOICES SUPPORT FOR FRINK NOMINATION
Looks to new position for focus on solutions to manufacturing sector's
challenges
WASHINGTON, D.C.--American Iron and Steel Institute (AISI)
President and CEO Andrew G. Sharkey, III, pledged the steel industry's
support today to California manufacturer Al Frink, the newly nominated
Assistant Secretary for Manufacturing and Services, and said he looks
forward to working with him to shape a pro-manufacturing agenda.
``This is an important step toward beginning to implement the
agenda laid out in the Administration's Manufacturing Report,'' Sharkey
said. He said he is also encouraged that nominations have been made for
the two top leadership positions on the new Manufacturing Council.
Arthur ``Don'' Wainwright, Chairman and Chief Executive Officer of
Wainwright Industries in St. Louis, and a former Chairman of the
National Association of Manufacturers, has been nominated as Chairman
of the council, and Karen Wright, Chief Executive Officer and owner of
Ariel Corporation in Mount Vernon, Ohio, has been nominated as vice-
chair.
He said AISI is most concerned about two broad areas of policy
which, in his new post, Frink will have responsibility to address: (1)
eliminating domestic policies that put U.S. manufacturers at a
competitive disadvantage by significantly raising their costs, and (2)
pursuing trade policies that will truly level the international playing
field--for all manufacturers. Immediate areas for focus, Sharkey said,
are the need for a significant revaluation of China's currency,
stronger trade laws and trade enforcement, negotiations to fix WTO tax
and trade inequities and policies that promote U.S. investment while
reducing the burdens of rising health care, energy, litigation and
regulatory costs.
Sharkey said AISI and its U.S. member companies are especially
looking forward to working with the Commerce Department's new Unfair
Trade Task Force, Trade Agreement Enforcement Unit and Office of
Industry Analysis. The common goal of these new offices, he said,
should be to ``support trade and domestic policies that will allow
American manufacturers to compete successfully both in the United
States and in world markets.''
AISI is a non-profit association of North American companies
engaged in the iron and steel industry. The Institute serves as the
voice of the North American steel industry, speaking out on behalf of
its members in the public policy arena and advancing the case for steel
in the marketplace as the preferred material of choice. AISI also plays
a lead role in the development and application of new steels and
steelmaking technology. AISI is comprised of 32 member companies,
including integrated and electric furnace steelmakers, and 118
associate and affiliate members who are suppliers to or customers of
the steel industry. For more news about steel and its applications,
view AISI's website at www.steel.org.
______
National Association of Manufacturers
NAM Applauds Nomination of Al Frink To Serve as
Assistant Secretary for Manufacturing
Contact: Hank Cox
Jasinowski Welcomes Don Wainwright as Council Chairman
WASHINGTON, D.C., April 8, 2004--``The Bush Administration's
nomination of Al Frink to serve as the first Assistant Secretary of
Commerce for Manufacturing and Services is an excellent choice that
will be warmly received by manufacturers,'' said Jerry Jasinowski,
President of the National Association of Manufacturers.
An Hispanic-American, Frink is Co-Founder and Executive Vice
President of Fabrica International, a manufacturer of carpets and rugs
in Orange County, California. Over 32 years, Frink has forged his
business into an internationally-recognized leader in the carpet
industry. Founded in 1974, Fabrica employs more than 400 people.
``Al is a successful business leader with extensive experience in
public policy,'' Jasinowski said. ``He has served on the Commerce
Department's Exporters' Textile Advisory Committee, and is a 2004
inductee to the Small Business Administration Hall of Fame. He will be
an excellent advocate for U.S. manufacturing.''
Jasinowski also welcomed the nomination of Arthur ``Don''
Wainwright as Chairman of the new Manufacturing Council, and Karen
Wright to serve as Vice-Chair. Wainwright is Chairman and Chief
Executive Officer of Wainwright Industries in St. Louis, recipient of
the 1994 Malcolm Baldrige National Quality Award. He served as Chairman
of the NAM 2001-2002, and is a member of the NAM Board of Directors.
Wright is Chief Executive Officer and owner of Ariel Corporation in
Mount Vernon, Ohio, which makes gas compressors for refineries, gas
fields, pipeline service and gas gathering facilities the world over.
Ariel Corporation is a long-time member of the NAM.
``This is a quality team that will do great things to bring
government policies more into alignment with manufacturing
priorities,'' Jasinowski said. ``The Bush Administration has honored
its commitment to make manufacturing a priority and begun to follow
through on its policy recommendations issued earlier this year. We look
forward to working with Al, Don and Karen as they tackle the tough
challenges facing U.S. manufacturers in an increasingly competitive
global marketplace.''
______
United States Senate
Washington, DC
Statement of Senate Democratic Leader Tom Daschle On the Nomination of
Al Frink as Assistant Secretary of Commerce for Manufacturing
(WASHINGTON, D.C.)--Today, more than seven months after announcing
he would create the job, the President has finally found a nominee to
become his ``Jobs Czar.'' Senate Democratic Leader Tom Daschle released
the following statement.
``I'm glad President Bush has proposed this appointment, but I'm
sorry it's taken so long. Our nation desperately needs a new jobs
policy. Nearly three million manufacturing jobs have been lost in the
last three years.
We're in the longest jobs slump since the Depression. In the seven
months it took the Administration to fill this post, another 70,000
manufacturing workers lost their jobs. There should be no higher
priority than getting America back to work, and I hope the President
will consider supporting some of the constructive proposals we've made
to do that.''
______
The Carpet and Rug Institute
Dalton, GA, July 12, 2004
Chairman John McCain,
Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Ranking Member Ernest Hollings,
Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Dear Chairman McCain and Ranking Member Hollings:
On behalf of the carpet and rug industry, I urge you to support the
nomination of Al Frink as Assistant Secretary of Manufacturing and
Services for the U.S. Department of Commerce.
The Carpet and Rug Institute (CRI) is the national trade
association representing the carpet and rug industry. Headquartered in
Dalton, Georgia, the Institute's membership consists of manufacturers
representing over 98 percent of all carpet produced in the United
States and suppliers of raw materials and services to the industry.
While the majority of carpet is produced in Georgia, we have a national
impact on all segments of the industry such as distributors, retailers,
and installers. The carpet industry is the largest manufacturing
employer in Georgia and has a $26B impact on Georgia's economy alone.
Mr. Frink's background and 30 years of experience in the
manufacturing sector give him keen insight into the needs of U.S.
manufacturers. It is our opinion that he will serve as an outstanding
advocate and an important voice for American manufacturers and will
work to ensure that government policies do not harm nor neglect the
people who make products in America.
As you may know, Georgia is the leading carpet manufacturing state
in the Nation. This manufacturing sector of our economy has remained
strong against foreign competition and has weathered the recent
economic storm successfully. Mr. Frink's vast experience in this sector
should prove to be a tremendous asset to this position.
Mr. Frink will represent the Administration as point person on
manufacturing and will focus on ways to help this important sector
thrive and compete in the global marketplace. Mr. Frink will, no doubt,
be a strong and effective advocate for manufacturing in the United
States.
Respectfully,
Werner H. Braun,
President.
______
Rockwell Automation
Milwaukee, WI, August 14, 2004
Chairman John McCain,
Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Ranking Member Ernest Hollings,
Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Dear Chairman McCain and Ranking Member Hollings:
Rockwell Automation, a global leader in industrial automation
products and systems, enthusiastically supports the nomination of Al
Frink as Assistant Secretary of Manufacturing and Services at the
Department of Commerce. We ask that you work with your colleagues to
confirm this appointment at your earliest convenience.
Rockwell Automation maintains a large U.S. manufacturing base and
supplies other U.S. manufacturers with state of the art automation
equipment to competitive in the global markets. The Commerce Department
produced an excellent report on ``Manufacturing in America'' that
contained over 50 recommendations to stimulate our manufacturing
climate. It is essential we begin to act on these in a timely and
deliberate way to keep our economy as a whole healthy. With the benefit
of Mr. Frink's commitment and experience, we will have a strong
advocate to develop an environment that supports manufacturing
prosperity.
Last year Rockwell Automation celebrated our 100th anniversary. As
we begin the business of this next century we are facing barriers that
require new and creative solutions. With your confirmation, as
Assistant Secretary of Manufacturing and Services, Mr. Frink, can be
that champion for the manufacturing sector.
Sincerely,
Keith Nosbusch,
President and Chief Executive Officer.
______
American Furniture Manufacturers Association
Washingion, DC, July 15, 2004
Hon. John McCain,
Chairman,
Committee on Commerce, Science, and Transportation,
United States Senate,
Washington, DC.
Dear Chairman McCain:
We were very pleased that your committee held a hearing this week
on the nomination of Mr. Albert A. Frink, Jr,. to be Assistant
Secretary of Commerce for Manufacturing and Services. Our organization
strongly supported the creation of a new leadership position at the
Commerce Department that would be responsible for coordinating the
Administration's response to the challenges facing U.S. manufacturers.
AFMA support Mr, Frink's nomination, and we urge you and your committee
colleagues to move his nomination forward as soon as possible. Doing so
would be an important step toward fulfilling a key recommendation in
Manufacturing in America, the Commerce Department's comprehensive
strategy to revitalize the domestic manufacturing sector.
As you may know, the furniture manufacturing industry in America is
undergoing a significant transition, particularly as it adjusts to the
tremendous growth in imports. Now, more than at any other time in
recent history, it is essential for Federal pollcymakers to understand
the issues that affect domestic manufacturers, and to create an
economic environment here at home that will enable AFMA companies and
other furniture manufacturers to grow and compete in an increasingly
global economy. We believe a new Assistant Secretary for Manufacturing
and Services will play a valuable role not only in enhancing the
government's focus on improving manufacturing competitiveness, but also
by being the principal advocate within the government for America's
manufacturing sector. AFMA stands ready to assist you in anyway to
advance Mr. Frink's nomination expeditiously this session.
Thank you for your consideration, Please do not hesitate to contact
me if you have any questions or if we can be of assistance to you in
any way.
Sincerely,
Christopher P. Pearce,
Director of Congressional
& Regulatory Affairs.
cc: Members of the Commerce Committee