Senate Commerce Eyes State of Agency IGs

“Both the Department of Transportation and Homeland Security IGs have confirmed to me that they were contacted by the transition team and initially informed they would only serve on a temporary basis,” Nelson said in his opening statement. He stressed the need for IG independence: “During today’s hearing, it’s my hope we can learn more about how we can ensure the independence of these offices.” Sen. Amy Klobuchar, D-Minn., asked if they would all pledge to independence under the new administration, and all IGs did so.

Commerce Committee Chairman John Thune, R-S.D., countered Nelson's holdover concerns in his own opening statement. “The media has reported that the new administration’s transition team considered removing some IGs,” said Thune. “It appears, however, that they quickly changed their minds and notified these IGs, including Mr. Roth and Mr. Scovel, that they would not be removed. I am confident that incoming agency leadership will continue to find the oversight work of their IGs to be as invaluable as I have.”

Sen. Richard Blumenthal, D-Conn., confirmed with the four witnesses that they had not received any assurance they would remain in their positions. Blumenthal asked if it would be helpful. Scovel said he didn’t remember getting a notice following the last presidential election either and described actions as “steady as she goes.”

Telecom issues came up amid the scrutiny of the Commerce IG. Communications Subcommittee Chairman Roger Wicker, R-Miss., noted the possibility of state opt-out of FirstNet. “That’s exactly right,” Gustafson told Wicker. “The states are going to have the option to opt out and take the responsibility to build the network themselves.” He cited a past IG report on FirstNet struggles on conflicts of interest and contracting issues, prompting a memorandum of understanding (MOU) with the Commerce IG. “On June 8 of last year, DOC OIG staff informed the committee staff that FirstNet decided to cancel the MOU, believing the startup difficulties the organization had faced were now resolved,” Wicker said, asking if the IG staff would continue to have a dedicated FirstNet team. “We still have a dedicated team and we are undergoing reviews now,” Gustafson said, promising future oversight. The MOU cancellation requires “the shifting of priorities with our money,” she said, saying FirstNet oversight funding now has to come from the money typically appropriated by Congress.

“The Department of Commerce faces a number of challenges across its agencies,” said Thune. “FirstNet, which is an independent authority within the Commerce Department, is also reaching critical early stages in its rollout of a nationwide public safety broadband network, and I believe FirstNet will continue to benefit greatly from rigorous oversight by the inspector general.”

“FirstNet’s most significant challenges concern managing its acquisitions, consulting with public safety entities at all levels, and strengthening internal control,” Gustafson said in her written testimony, also referring to the canceled MOU: “A FirstNet-OIG memorandum of understanding (MOU) funded at $1.35 million was developed in FY 2014 to address lack of an oversight provision in FirstNet legislation.”

Her testimony also mentioned NTIA’s work. As a 2020 deadline the Obama administration had set for making 500 MHz of federal spectrum available for commercial use approaches, “NTIA’s challenge is to incorporate lessons learned from its R&D activities and consultation efforts into actual strategies that lead to more efficient use and availability of radio frequency spectrum,” Gustafson testified. “Also, the termination of FSMS [Federal Spectrum Management System] necessitates that the Department identify a technological system that can modernize, automate, and integrate key spectrum management functions.” Ongoing oversight includes review of the FirstNet implementation grants, with a final report expected in FY 2017, and oversight of a grant award to the Los Angeles Regional Interoperable Communications System, which has a five-year spectrum lease with FirstNet. “For this audit initiated in FY 2017, we will assess LA-RICS' efforts to meet grant objectives and provide the FirstNet with lessons learned,” Gustafson testified.

Sen. Shelley Moore Capito, R-W.Va., cited broadband stimulus money her state received under the Obama administration. “What kind of measurement of success” did Commerce do, she asked, citing millions her state received despite poor levels of broadband access in the state. Gustafson said she wanted the ability to answer more fully later but said she hoped lessons could be learned from that stimulus effort to aid in how the process plays out with FirstNet.

Homeland Security’s Roth and Transportation’s Scovel noted cybersecurity challenges for those agencies. “The emergence of driverless cars is another developing technology that will present significant regulatory and oversight challenges for DOT,” Scovel wrote. Roth devoted a whole section of his testimony to cybersecurity.

The Trump transition team did try to contact FTC IG Roslyn Mazer last month, she told Nelson in a letter dated Tuesday. There was an exchange of voicemails with the FTC landing team but they never formally interacted, she said, noting the transition team member said the question was resolved.

Nelson had also asked agencies whether the IGs alerted agency employees after Jan. 20 of their rights under the Whistleblower Protection Act, the Whistleblower Protection Enhancement Act and any other relevant statutes. The FTC’s Mazer told Nelson yes, citing a Feb. 6 notice sent to trade commission workers. “We have not sent such a notice and currently do not plan to do so,” the FCC’s Hunt replied in his letter. Gustafson said the plan is to remind Commerce Department workers of these rights “on or around July 30, 2017, in recognition of National Whistleblower Day,” she wrote in her response.