Madam Chair, earlier during debate colleagues criticized the production of secure credentials by the Government Printing Office for Federal agencies. Some of the statements, particularly the claim that this represents an ``overreach'' of…
Madam Chair, earlier during debate colleagues criticized the production of secure credentials by the Government Printing Office for Federal agencies. Some of the statements, particularly the claim that this represents an ``overreach'' of the GPO's statutory authority and that the GPO has a ``monopoly on this issue'' are simply not true, and I want to correct the Record.
At the request of then-Public Printer Robert Tapella, the Joint Committee on Printing, which I had the honor to chair during the 110th Congress, authorized GPO to perform this function. Since that time, every JCP chairman has overseen the GPO's production of secure credentials and approved the GPO's annual expenditures for this purpose.
Far from an ``overreach,'' secure credential work is firmly within the GPO's statutory authority. GPO has a long history of secure credential work, such as with the manufacture of U.S. passport blanks since 1926. By definition, passports and all other forms of government credentials involve ``printing,'' the production of something in printed form. With secure credentials, intricate, multi-color modern printing embedded with anti-counterfeiting features is utterly indispensable to render a document immediately recognizable by handlers as the genuine article and thus inspire the confidence necessary to establish identity, facilitate border crossings and other purposes.
While serving as Public Printer, Mr. Tapella once declared that the production of secure credentials for the Federal Government does not belong in the private sector. I happen to agree with him and believe Congress should direct as much secure credential business to GPO as possible. In my view, the production of Federal credentials is as inherently a government function as the production of United States currency, which is produced solely by the Treasury Department's Bureau of Engraving and Printing.
But however much the former Public Printer and I may agree on this issue, the GPO today--under the leadership of Public Printer Davita Vance-Cooks--has taken a far more reasonable approach and simply makes the GPO available to all Federal agencies who wish to use its services. GPO asserts no ``monopoly'' nor can it as a practical matter, as Federal agencies are able to seek the services of either the public or private sector to meet their secure credential needs. With respect to the product at issue here, the GPO produces blank border-crossing cards for the State Department's visa office, and the cards are subsequently personalized by the State Department's own contractor, MorphoTrust. Moreover, the State Department continues to employ MorphTrust to produce passport cards, another secure credential. As here, the State Department and a number of other agencies contract directly with private companies for many of their secure-credential needs. To say, therefore, that GPO has a ``monopoly'' on the work is silly.
On December 4, 2013, the House Administration Committee, on which I serve as Ranking Minority Member, held an oversight hearing on the recent report by the National Academy of Public Administration entitled ``Rebooting the Government Printing Office: Keeping America Informed in the Digital Age.'' Congress ordered the study. Among other things, the Academy found that unlike with passports, ``the GPO is not the sole provider of smart cards [secure credentials]. Agencies may obtain smart cards from private sector vendors as well.'' The Academy's report endorsed GPO's work in that field.
I urge my colleagues to read the Academy report, currently available on the Academy's web site. I also urge Members to review the response provided by the GPO to questions submitted for the record of the December 2013 hearing concerning secure credentials, reprinted below. Clearly the GPO does not deserve the criticisms lodged earlier and elsewhere. The men and women of the GPO perform a valuable and necessary service in providing secure credentials to support the missions of Federal agencies involved in securing our borders and other law enforcement tasks.
Excerpted Questions for the Record Submitted to the Public Printer,
Davita Vance-Cooks, Following the House Administration Committee
Hearing Held December 4, 2013
Question 7. GPO produces the millions of passports and
related documents provided to Americans every year by the
U.S. Department of State. You also provided sizeable
quantities of other so-called ``secure and intelligent
documents'' to the Department of Homeland Security. Do you
foresee this portion of your business expanding in the
future? Could GPO also produce such documents for state and
local governments, as suggested in the NAPA study's
Recommendation #9?
Response. In the wake of 9/11 and the introduction HSPD-12
and related Federal identification requirements, there has
been an increase in the Government's need for secure
credentials. With the approval of the Joint Committee on
Printing, GPO implemented a capability in FY 2008 to help
address this need. While GPO is far from the only provider of
such requirements for Federal agencies, the volume of work
processed by our capability has increased and is projected to
increase in future years, as the report of the National
Academy of Public Administration recently concluded.
Regarding the production of secure credentials for state and
local governments, GPO does not have the statutory authority
to produce work that is not authorized by Federal law, nor
are we equipped and staffed to handle secure credentials for
all Federal agencies, much less for state and local
governments.
Question 8. It is my understanding that aside from printing
passports, GPO has also undertaken the manufacture of Border
Crossing Cards and trusted traveler cards. Government
agencies have been procuring from the private sector and
issuing to their employees and contractors secure ID
documents for decades. When did GPO get into the business of
creating and providing secure credentials, other than
passports? Can you please provide rationale as to why GPO
believes that it should do this work for government
agencies as opposed to the private sector, which has
invested heavily to develop these new technologies?
Response. GPO provides a government-to-government solution
to fulfill the requisitions of Federal agencies for secure
credentials. Our program is staffed by cleared personnel and
backed by a secure supply chain.
The establishment of our secure credential capability was
endorsed to GPO management by GPO's Inspector General in
2005. GPO's proposal to set up a secure card center with its
Security and Intelligent Documents business unit subsequently
was approved in FY 2008 by the Joint Committee on Printing,
which since then has also approved--on a bipartisan basis--
all funding for this program in GPO's annual spending plans.
In 2010, we became the only Federal agency certified by the
General Services Administration to graphically personalize
HSPD-12 credentials. In 2012 the Joint Committee on Printing
approved the establishment of a COOP capability for our
secure credential operations.
GPO serves as a card integrator, working closely with
private sector providers to obtain the products and services
needed to fulfill requisitions submitted by Federal agencies.
For several years we have been accepted member of the Secure
Card Alliance, a consortium of private sector companies and
Federal agencies including the National Institute for
Standards and Technology, the Department of Homeland
Security, the Department of State, the Department of
Transportation, and the General Services Administration
(http://www.smartcardalliance.org/). We work with the private
sector for consulting, fabrication, design, materials, and
supplies, essentially incorporating the best that industry
has to offer into solutions sought by Federal agencies that
requisition the work from us.
GPO's secure credentials capability serves as a valuable
resource to a number of Federal agencies, including the Joint
Congressional Committee on Inaugural Ceremonies and the U.S.
Capitol Police, which relied on us to provide secure law
enforcement credentials for the 2009 and 2013 Presidential
inaugurations. In addition to satisfactorily fulfilling
Federal agency requisitions for secure
credentials, our card production program was endorsed in the
recent report of the National Academy of Public
Administration. GPO provides secure credential products and
services on a reimbursable basis with no appropriated funds.
Throughout the existence of GPO's secure credentials
program, we have been open and transparent about its
operation. As noted above, we are a well-known member of the
Smart Card Alliance. We are subject to the oversight of the
Joint Committee on Printing and our House and Senate
legislative oversight and appropriations committees.
Additionally, our program has been the subject of oversight
by our Office of Inspector General (see for example http:// www.gpo.gov/pdfs/ig/audits/11-06_AuditReport(Issued_
March_31_2011).pdf); the IG's semiannual reports to Congress
for several years routinely tracked oversight of the GPO's
secure credentials program as a ``management challenge'' (see
for example http://www.gpo.gov/pdfs/ig/semi-annual/11-30- 09.pdf). We have kept the public informed through press
releases (see for example http://www.gpo.gov/pdfs/news-media/ press/09news19.pdf, http://www.gpo.gov/pdfs/news-media/press/ 10news39.pdf, and http://www.gpo.gov/pdfs/news-media/press/ 11news60.pdf), YouTube videos (see for example http:// www.youtube.com/watch?v=levIY1qIPy0, http://www.youtube.com/ watch?v=ettaBOW4UEA, and http://www.youtube.com/ watch?v=mQxH1EZA71I), GPO annual reports to Congress, and
other media.
Question 9. GPO's mission statement, articulated recently
in your agency's strategic plan ``is to produce, protect,
preserve, and distribute the official publications and
information products of the Federal Government.'' Do you
consider the production of secure credentials as
fundamentally related to or falling under GPO's mission? Do
you believe that the manufacture of secure credentials falls
within the definition of ``printing'' under Section 501 of
Title 44 U.S.C.? If so, has the GPO communicated this
interpretation to federal agencies in any of its discussions
with federal agencies? For ID cards and passports: what is
the cost of the ink and graphics component per security card?
What is the cost of the technological component per card?
Response. Our ``produce, protect, preserve, and distribute
the official publications and information products of the
Federal Government'' mission statement appears in our
strategic plan and elsewhere to describe the informing
function that GPO carries out, a function that is traceable
to Article I in the Constitution. However, the public
printing statutes of Title 44, U.S.C., make it clear that the
performance of printing for the Government extends to a broad
variety of products and services, some of which do not
necessarily relate to an informing function. Over the years
GPO has produced or procured tax forms, census forms, Social
Security cards, ration cards, letterheads, envelopes,
passports, postal cards, and other printed products that are
associated with the operations of the Government. These
products are produced by printing processes, including the
processes of composition, presswork, and binding, which are
defmed in Title 44 as within GPO's authority to perform. The
production of secure credentials for Federal agencies also
involves printing processes, and so GPO is authorized to
produce them (though as a practical matter, GPO is able and
equipped to produce only a limited amount of secure
credential work). As long as Federal agencies submit a
requisition that complies with the relevant provisions of
Title 44 (certifying that the products requested are
authorized by law, necessary to the public business, and
backed by the necessary funding), GPO will perform the work.
Federal agencies who have contacted us to discuss our secure
credential capabilities are aware of this fact. Regarding the
cost of ink and graphics component per security card, ink is
a very small percentage of the material cost for any of our
products (less than 1%). The technological component of our
card business (chip and antenna) is about 20-25%.
Question 10. As you know, only about 16 percent of the GPO
is appropriated by Congress. The rest of GPO's funding comes
from ``operating profits.'' Did Congress appropriate the
money for the Secure Credential Innovation Center--which is
what I understand to be a new multi-million dollar GPO
facility? Or was that facility funded through operating
profits from ID card and other sales? Will the facility
affect overhead costs?
Response. There appears to be a misunderstanding about
GPO's Secure Credential Innovation Center (SCIC). This is a
small (529 sq ft) work space on the 5th floor of GPO's
building C that is staffed by one FTE and equipped with a
single opening laminator, laser cutter, CNC mill, plasma
torch, UV epoxy curing station, and related equipment for the
design and testing of security features requisitioned by
Federal agencies for passports and other secure credentials.
It is not a ``multi-million dollar'' facility. It was funded
through the revolving fund, not appropriated funds.
We also opened a secure card COOP capability at our
Stennis, MS, facility in 2013, with the approval of the Joint
Committee on Printing. The capital investment proposed for
this project was $2.2 million dollars, including $1.5 million
for a card printer and installation, $450,000 for the
required IT infrastructure, $175,000 for necessary space
renovations and security upgrades, and an estimated $75,000
in support and travel costs. All costs were funded through
GPO's revolving fund, and the project came in on time and
under budget.
As costs of GPO's SID business unit, neither the Stennis
facility nor the SCIC are included in overhead costs for the
GPO as a whole. They are direct costs that are recovered
through the rates charged for SID products.
As noted earlier, none of the funds for GPO's secure card
capability are appropriated by Congress. Concerning GPO's
finances under section 309 of Title 44, U.S.C., GPO does not
generate ``operating profits'' but is limited to recovering
its costs. Part of these costs includes the ability to
generate funds for investment in necessary equipment and
plant improvements.
Question 11. I've heard that GPO ``sales teams'' have been
telling the State Department, the Department of Homeland
Security, and other agencies that utilize ID card
technologies for various programs--for example, to control
access to our borders and to verify immigration status--that
they are required by law to obtain their secure ID documents
from the GPO, because the GPO is the government's printer. Do
you believe that this is the case? Do you believe government-
issued secure ID cards must be manufactured by and purchased
from the GPO, rather than the private sector? If so . . . do
you believe the GPO has the technological and security
capabilities to produce these types of items? If not . . .
are GPO sales teams in error if and when they state that
federal agencies are required to purchase these items from
the GPO by law?
Response. In hearings before the House Legislative Branch
Appropriations Subcommittee for FY 2010, former Public
Printer Robert C. Tapella said, ``I believe that Federal
credentials belong in a Federally-owned, Federally-operated
production environment and not in the private sector. And I
think it is an inherently governmental activity'' (Hearings,
Part II, April 28, 2009, p. 166). GPO management today does
not endorse this position nor would it be practical. As a
member organization of the Smart Card Alliance, we
acknowledge the role of the private sector secure credentials
industry in providing products and services to Federal
agencies, and we work closely with them in the integration of
card components to meet the requirements of products
requisitioned from us. We do not compete against private
sector companies for secure credential work. GPO provides a
limited capability that is available for the use of Federal
agencies seeking the provision of services in a govermnent-
to-government setting, staffed by cleared personnel, and
backed by a secure supply chain. As a postscript, GPO's SID
business unit has one FTE (no sales teams) responsible for
addressing inquiries for SID products and services that come
from Federal agencies.
Question 12. It is my understanding that GPO either will
soon or has recently begun manufacturing the US Border
Crossing Card. The GPO ``won'' that business away from a
private sector vendor. Please explain the process by which
GPO ``won'' the contract away from the private sector and the
decision-making behind GPO taking over production of the
Border Crossing Card.
Response. We do not compete against private sector
companies for secure credential work, and as a result we do
not ``win business away'' from them. The Department of State
submitted an SF-1 requisition to GPO for the production of
the border crossing card. The decision to come to GPO for the
production of this card was made by the Department, and the
Department's requisition to us fulfilled all lawful
requirements. GPO cannot participate in Federal agency RFPs
where the private sector is involved. We are required by law
to respond to requisitions for printing services from Federal
agencies.
Question 13. Are you aware of testimony before the House
Government Reform and Oversight Subcommittee on National
Security that said that over 30,000 counterfeit US Border
Crossing Cards have been found at our US borders? Now that
GPO will be producing Border Crossing Cards, could you please
explain to the Committee how you will ensure that these cards
have the anti-counterfeit technologies required to make these
cards truly secure? Do you feel that GPO has the technical
expertise and capability to ensure that these cards are
equipped with anti-counterfeit technologies?
Response. We are familiar with this testimony, which is
posted online by the Subcommittee. (In reviewing the
testimony provided at the hearing, we noted that the number
of Border Crossing Cards identified as fraudulent rather than
counterfeit by Chairman Chaffetz was 13,000, and that this
number was identified in FY 2009, at http:// oversighthouse.gov/hearing/border-security-oversight-part- iii-border-crossingcards-b1b2-visas/, 2:04:15). GPO received
the requisition from the Department of State to begin
producing the Border Crossing Card in 2013. We also noted
that in the hearing the value of the Nexus card, which used
to cross the border with Canada, was described very
positively. GPO produces the Nexus card for the Department of
Homeland Security.
Concerning GPO's ability to produce cards with anti-
counterfeit technologies, GPO has significant expertise in
the field of secure document design based on our work with
passports. We have designed Government credentials with
advanced security features. We work closely with the
Department of Homeland Security's fraudulent document lab
experts to validate credential designs and utilize both
Government and commercial laboratories to test and evaluate
our credential performances. For the Border Crossing Card,
GPO worked with forensic document examiners at the Department
of Homeland Security and with Department of State personnel
to develop a product designed to withstand attempts at
counterfeiting. We have the expertise and capability to
ensure that these cards are equipped with anti-counterfeit
technologies.
Question 14. I have heard that one of the ``selling
points'' GPO uses with executive branch agencies is that the
GPO can manufacture cards for them while also avoiding the
competitive bidding requirements under Federal Acquisition
Regulations. Do you believe that the GPO is required to
follow the Federal Acquisition Regulations when it buys
microchips, antennae, software, laminating materials,
substantive expertise and training for its employees? Do all
of those items need to be competitively bid to the private
sector? Or can GPO buy essentially whatever it wants from
whoever it wants, because it is doing so with money from
operating profits rather than congressionally appropriated
funds? Do you believe that following Federal Acquisition
regulations would save the GPO money?
Response. GPO's Materials Management Acquisition Regulation
(MMAR) is based on the Federal Acquisition Regulation (FAR)
and is used as the authority for all procurements we make.
Under the MMAR, GPO competitively bids for the acquisition of
products and services used in GPO operations, including those
required for the production of secure credentials. GPO's
utilization of sole source procurement authority follows the
same provisions established in the FAR for other Federal
agencies.
As noted earlier, under the law GPO does not generate
``operating profits'' but is limited to recovering its costs.
Part of these costs includes the ability to generate funds
for investment in necessary equipment and plant improvements.