And the report is my testimony. I would not provide information beyond that which is already public in any appearance before congress. Former special Counsel Robert Mueller set to appear before two committees of congress. The House Judiciary Committee and Intelligence Committee wednesday july 17th, 9 00 a. M. Eastern. He will testify in open session about his report into russian interference in the 2016 election. Watch live coverage on cspan 3, online at cspan. Org on listen with the cspan free radio app. Two household and security subcommittees held a joint hearing how fema contracts are awarded and managed. They want to know about a 30 Million Contract after Hurricane Maria was awarded to a new company and tarps were never delivered. They heard from fema, Government Accountability office and Homeland SecurityDepartment Inspector general office. The committee on Homeland Security will come to order. The committee is meeting today to receive testimony on fema contracting, reviewing Lessons Learned in past disasters to improve preparedness. I would like to thank chair woman small and Ranking Member crenshaw of the oversight management and accountability subcommittee for coming together with Ranking Member king and me to hold the hearing. I always want to thank witnesses for discussing the contracting. This week is hurricane preparedness week. Today marks 22 days until the 2019 Hurricane Season begins. Unfortunately there are still real questions about femas preparedness for disasters. Not the least of which that there is not a confirmed administrator. I am particularly concerned about femas contracting for disasters. Proper disaster contractors is crucial to the successful response efforts as disaster contracts provide for several survival and comfort items like food, water, blankets, cots that communities need following a major devastation. Disaster contracts also provide for important response related Services Like debris removal, translators and housing inspectors. While the magnitude of the effects of hurricanes, earthquakes, wildfires and the like are obvious, fema continuously falls short in the realm of disaster contracting. From Hurricane Katrina we learned one of the most important aspects of Disaster Preparedness is advanced contracting. However here we are 14 years after katrina and the Government Accountability office noted the december 2018 report gao 19 dash 93 1993 fema still needs to improve its advanced contracting practices. Specifically the gao found the advanced contracting fema had in place prior to 2017 Hurricane Season were not sufficient to cover the need, the absence of which caused fema to scramble to enter into postdisaster contracts. Simply put, it needs to be more contracts in place before a disaster strikes. While it is difficult to predict exact needs prior to disasters we do know Hurricane Season is every june 1 through november 30 and history has shown us that fema is likely to be underprepared in some fashion. From a recent april 2019 gao report we also know fema is still struggling with acquiring and retaining disaster contracting workforce. The absence of adequate Staffing Levels causes undue delays in the screening and delivery of important goods following a disaster . There are instances in 2017 such as the failed contracts. In the case of bronze star llc contracts procedures resulted in delays delayed delivery of crucial supplies for those to protect their homes from further damage after the Hurricane Maria. Similarly the Tribute Contract was 30 million 30 million emergency meals and it had to be canceled only delivered 50,000 of the 30 million required. These type of contracting areas are troubling and have major consequences. We need to have an honest conversation today about how fema should proceed with preventing future contract missteps, the results of which are americans going without emergency goods and services. When disaster strikes the American People depend on the federal government to get it right. Yet as the gao has reported disaster contracting is unprepared and its disaster contract workforce is overwhelmed and overworked. Fema has also acknowledged its contracted workforce shortcomings as evidence in their 2017 Hurricane Season after action report. To make matters worse the president has again proposed a cut to the agencies discretionary funding complicating femas ability to address disasters contracting workforce challenges. Furthermore the recent federal government shutdown, roughly 6 months before the start of Hurricane Season caused fema to order a stop on outstanding contracts, causing the agency to lose valuable disaster contracting preparation time. Emergency preparedness response and recovery is too important a mission for this agency to consistently truckle with struggle with disaster contracting. Having experienced the horrors disasters can cause a community with Hurricane Sandy, i know how critical it is for fema to have effective processes in place before disaster strikes. With this i look forward to engaging dhs office about underlying issues that they have identified and seem to chronically caused fema to miss the mark with disaster contracts. I also look forward to hearing from fema about what congress can do to help the Agency Improve its disaster contracting. With that i recognize the Ranking Member the gentleman from new york for an Opening Statement. Thank you. I appreciate this hearing and thank you for calling it. Working with oir colleagues on two subcommittees. In 2012 super storm sandy wreaked havoc on new york and new jersey as you well know as well as other states resulting in 150 deaths, hundreds of thousands of impacted residents and over 65 billion in damages. Storm effects were widespread, extensive, in caused substantial flooding, massive power outages, fuel shortages in parts of the region. Following Hurricane Sandy fema released a report detailing successes , Lessons Learned and areas that needed improvement in hurricane Recovery Efforts. When area highlighted for improvement was reducing the complexity of the Public Assistance Program. The Public Assistance Grant Program provides federal assistance following a major disaster declaration. While fema did take several steps to help government officials better understand this program and reduce the complexity rules they continued to express confusion regarding the program and lack of priority to delete Recovery Efforts. The Sandy Recovery improvement act improved the program by providing alternative procedures to allow for flexibility for recovery projects that encouraged timely and costeffective completion of projects. These procedures rely on fixed cost estimates that allow recipients and sub recipients to use remaining funds for other eligible purposes if the cost of the project is below the estimate. It is noted that the new Public Assistance Program can quote serve as a springboard for fema to continue reducing the complexity of the program however according to the dhs Inspector General fema continues to fail in overseeing grant recipients effective management and Disaster Relief grants which poses potential Financial Risks to taxpayers. Gao reported on femas need for advanced Contracting Program. This enables the government to quickly and effectively utilize resources in the aftermath of a disaster. Among other recommendations they recommend fema update its strategy for advanced contracts to provide clear guidance on the use and prioritization of such contracts so they can quickly and costeffectively provide goods and services in disaster stricken areas. Delays in response and Recovery Efforts with black are not acceptable. Following major disasters this is essential to rebuilding our nations communities. It is imperative fema continues to streamline its efforts to ensure proper oversight and maintain its focus on survivors and their recovery needs. I look forward to hearing from our Witnesses Today. Thank you for being here. I yield back thank you. Thank you, mr. King. I now recognize the chairwoman of oversight management and accountability subcommittee. The gentlemen woman from new mexico, miss small for Opening Statement. Thank you. Thank you for the opportunity to cochair this hearing with you. With the 2019 Hurricane Season three weeks away this hearing couldnt be more timely. It is an opportunity to discuss Lessons Learned from past disasters and whether necessary improvements have been made preparing for future events. Disasters can strike with little to no warning. We experienced this firsthand in my district in new mexico when he tornado a tornado touched down this past march. I would also like to acknowledge those affected by the flooding and Ranking Member crenshaws in Ranking Member crenshaws district. These disasters demonstrate at a moments notice fema may need to assist thousands of survivors who suddenly have an immediate need for emergency goods and services. Fema cannot prepare for every eventuality but as a frequency increases it is an important as ever that the agency take the corrective action to better execute its no fail mission. Disaster contracting is one area where improvements are most needed. As he witnesses from gao and can confirm fema has a checkered history with Disaster Response and recovery contracts it awards and oversees. I am glad some improvements have been made since Hurricane Katrina struck the gulf coast in 2015. More contracts are being competitively bid reducing the potential for waste, fraud, and abuse. More contracts are being awarded to local vendors stimulating local economies. Challenges remain. Fema struggles to utilize advance contracts. These are awarded prior to a Natural Disaster when there is not an urgent need for goods and services which allows fema to maximize competition and properly evaluate vendor quality. Harvey, irma and. Harvey, irma and maria. In multiple instances fema had to cancel contract it awarded after hurricanes hit rather than relying on advanced contracts that were in place. Some of the vendors had no business being awarded government contracts. Fema awarded more than 30 million worth of emergency contracts to a company that was formed just weeks before struck. It is no surprise the company failed to deliver. Another firm with one employee and a history of canceled contracts was for some reason entrusted to deliver 30 million meals to hurricane survivors in puerto rico. Less than a month later the company only managed to supply 50,000 meals, about 1 10 of 1 of what was agreed to. Not surprisingly fema had to cancel this contract too. If fema had had more advance contracts in place or a Better Process for vetting vendors after a hurricane, some of these mistakes could have been avoided. Fema must do a better job of overseeing disaster contracts awarded by state and local government. As the Inspector General has reported local Emergency Managers some he may be dealing with disaster for the first time need guidance and training from fema on how to follow federal procurement regulations. At the end of the day it is federal tax dollars on the line. As the chair of our oversight management and accountability subcommittee i am also concerned about femas ability to recruit and retain qualified Contracting Officers. I understand as of january more than one third of positions within femas office were vacant and the agency has lost contracting staff since 2017. This is not the direction we need to be headed. If anything fema needs more Contracting Officers not less. These should be permanent positions not the short term hires they are using as a stopgap. I look forward to learning about the steps you have taken over the past two years to assess femas Workforce Needs and hire more contracting staff. The Procurement Office needs to be full strength as we head to the 2019 season. Thank you again, mr. Chairman, for holding this hearing. I look forward to a fruitful discussion with all three of our witnesses here today. Thank you, chairwoman. I now recognize the Ranking Member of the oversight and management accountability subcommittee, the gentleman from texas, mr. Crenshaw, for an Opening Statement. Thank you, chairman payne. Thank you, member king and chairwoman torres small. Its great to be with all of you and thank you to our witnesses for being here. Ive been here long enough to see the range of issues this committee deals with from countering threats to terrorist activity to Natural Disasters, all can be harmful, affect national security, and most importantly, impact the American People. Im pleased we are holding this hearing today to explore the ways fema can improve its contracting. Fema has one of the most important functions of the federal government in helping our citizens prepare for and recover from disasters. My home state of texas witnessed the devastation that nature can cause when Hurricane Harvey hit in late august of 2017. It is something my constituents and i saw and dealt with firsthand. That storm brought torrential downpours that caused catastrophic flooding in houston and many of the areas i represent. Hurricane harvey cost 107 people their lives and is estimated to have cost 125 billion in damage. Texans are resilient and during the storm we evacuated our neighbors with the help of our friends from the cajun navy, volunteers from across the country, the Texas National guard, and the u. S. Coast guard. As soon as the waters receded we got to work on recovery. While we are grateful for the assistance from fema, we must always ask ourselves how we can do better. Is our role to review the activities of federal agencies and determine what we can do better. That is part of our oversight role in congress and on this committee. While 2017 was an unusual year because of the unprecedented number of disasters, including the hurricanes and the california wildfires, fema must be prepared for all disasters regardless of their frequency. Fema assists with Disaster Recovery utilizing three different methods. After Hurricane Katrina in 2005, fema began using advance contracts for goods and services it typically needs in a disaster. The agency also provides help through postdisaster contracts and public assistance grants. In the 2017 disaster season, many of the postdisaster contracts were for Power Distribution equipment and food and water. Fema uses public assistance grants to supplement state and local efforts for things like debris removal and emergency protective measures as well as projects to repair infrastructure and facilities. Responsible administration of these contracts is vital to helping the victims of a disaster recover and in helping the states and localities recover and rebuild. We need to get these contracts right to ensure that we can adequately address basic needs immediately following a disaster. As we rebuild our communities, we need to ensure that federal funds are not wasted either. We should not be picking winners and losers with these contracts. They need to be entered with the goal that ensuring that everyone wins, the victims, the communities, the contractors and the taxpayers. Fema needs to continuously improve its management and oversight of its contracts to ensure that this is the case. While i applaud fema for its excellent work in helping rebuild lives and communities after a disaster, we all must recognize there may be ways to improve its operations. I look forward to hearing from the Witnesses Today on the best ways to add accountability and oversight in the Disaster Recovery process. I would also like to add that i have a report prepared by the texas General Land Office on Lessons Learned from Hurricane Harve