more complex responsibility of confirmed with my extensive experience of law-enforcement to ensure the nation's transportation system. that the global tariffs that have evolved is more decentralized and more complex of our intent to strike united states and we know that some of these are focused on commercial aviation. the threats are persistent in devolving and work-force training and accountability if confirmed but i will pay close attention to the tsa work force and examine how the academy further improves performance with a critically important mission

and will focus on customer service with the effective screening to be treated with respect. to address that persistent terrorist threat we must question ourselves with more capabilities and adapt for those who wish to harm us envision what comes next. as such if confirmed i will ensure this tsa is a high in the cable terrorist organization. has multilayers operations their recruits and retains the skill of a highly trained workforce of professional values and accountability. now pursues his - - a pursues its van strategies and continues to strengthen the integration with the private sector with federal

state and local partners and will follow the strategy to adapt appropriately forever proven record and an extensive background to apply security principals of maritime threats to other transportation modes and have proven to be decreases to make then need to be aware with the protection of liberty's and if confirmed safeguarding privacy interest will be a top priority for our look forward to partner with this community with the safety of the travelling public and in closing i think president obama than the chairman and ranking member for the opportunity to appear before you today. i look forward to your question. >> also it is the job to ask all nominees a series of

three questions. is anything you are aware of the my present a conflict of interest to which it is the office of which have been nominated? >> no sir. >> you know, anything personal that would prevent you to keep your responsibility to the office of which have been nominated? >> no, sir. >> to testify can you testify before any committee if you are confirmed? >> and during that hearing it was pretty stark the dual mission on the of one hand you have the need for efficiency so nobody misses their flight on the other

hand, can you speak to the nature of those two goals in three plays priory? >> would be happy. from my perspective with my career in the coast guard never lost sight of safety and security of people using maritime transportation system. we still need to move goods is services and that is no different it is critical you move people through that system effectively. it is always a balancing act but if you focus on security and are transparent by definition it creates inefficiencies.

before 9/11 most ports were wide open the issue needed to move a lot of stuff there is a lot of access points because of trucks and rail but after 9/11 13 started to look at those first attempts it was the real challenge to figure out how to do that without clogging up the system working with the private sector partners there is a lot of good ideas that we can benefit the debt would be no different with aviation so in those recent findings of the inspector general you have to do that very carefully with the

people who were running the major airlines with the airport environment to explain why to see what that looks like it in the future it will take out of the box thinking and what would that look like if we decide that for tomorrow? that is the balance between those two but i don't think it is impossible just difficult. >> we surprised with fake explosives? >> it disturbs me and is confirmed as the immediate priority to close the gaps

to look systemically. >> to your knowledge that reality? for what tsa is security theater. for those checkpoints to read acknowledge the fact is simply is not working? >> so with a security system so think of entering that system so to be looked at in some way. to be balanced against all right database.

and these are some of the questions raised. and with the destination airport on the other and i want to be looked at. and i want other things to be happening as well. i want to know as much as i can about the travelers coming through. and to do that for a good reason. the following that i would like to know there are a number of things that might have been. trying to make my way through this system i wanted to be predictable so to have

players in the system so those that are described to me as bomb sniffing dogs i'd like to understand what is the effectiveness behind that the world is looking at the threat to understand how that'd devolving to look at the things that are recommended then go back immediately.

and there are disturbing of of great concern of what you need to find out. >> another vulnerability with the airports and the air -- with the airlines with the ig report showing we're not matching up everybody to all potential watch list. is this a commitment to make sure the tsa enters into the agreement with every possible watch list is utilized? >> that is imperative. is the coast guard i have said working within the intelligence community for quite a few years and one of the findings of the nine living commission was the failure to link itself together so it is imperative that they have information to the same database so i

would absolutely commit to that. >> with that statement that secretary johnson says you are a the smartest she has ever met and he said there is to. [laughter] but with the chairman's question that was excellent. look at the ig report the 95 percent failure rate with the attempts to pierce the system and those that were successful but if you go back over the last 10 years we measure a lot of metrics.

how many people died because of explosions and that is what we need to keep in mind i was told remember to keep the main thing the main thing. the main thing is to make sure they go where they need to go safely and expeditiously. i want to talk about agency morale. to do more of that. and i would say some from another state read the to find him or her from the state to delaware.

and the coast guard has very highbrow by common metrics there has to be some lessons learned as he tried to move some idea is what can we learn from the coast guard to help improve that route from those of the tsa? >> you are right to think they do have a high morale and to me that begins with a dealership that invest in the mission. you have to have alignment. if you say the mission is the most important but then it is said to them most important. i think tsa has the great mission.

and it is no problem to have that dash did it isn't one time trading but it is a continuous process the kitchen after trade that organization some of the best innovations come from the front line doing the work but those men and women to rigo work is no different from the tsa. the transportation and security officers is the face of tsa and also of mission you need to trade and empower them and listen to them for now they are failing with procedures or

equipment to not allow them to meet the mission you have to the value and support that work force and have their back for cry had a great opportunity with rated airport as part of the briefing to prepare for this. they were very afraid in a nuclear they understand the mission. there are those who raise their hands against all enemies and to connect to a mission and that it begins the upward movement. but said to have that accountability so with that inconsistency it isn't long

before it is is serious about it to set and communicate clear standards is that you grow up with it in the military. they are the people that do the work for the resources and training to have their back to look for ways to empower them to do their job >> you learned an important lessons about leadership? i was calling to ask you to talk about some of them but you already have the think about that question the most important part of success is

leadership. talk to us why you thank you have ben successful as a leader? to read as i said it was lucky i had great parents but i have been fortunate to work alongside dedicated people. but you do the best i can to the best of my ability we will figure it out together and going up in the organization helps you to have leadership but the best leadership is the site to site wording from the people working with you. if you are trained to do the mission is somebody is not

performing there will be held to account because that is part of the leadership what is the job and watery trying to do here? is somebody who understands to take advantage of their strengths so whenever that current task is to evaluate how it was conducted with that of what you talk about the opening comments in the my find excellence in the process. your id is character at the every level. >> my time is expired that we just received an excellent tutorial of

leadership. >> thank you senator. >> i will be it in and out we have of markup and i need to be there as well. until we can figure it out i will be in both places. >> thank you. admiral thank you for being here today and for your service for a few have done an excellent job to lay out your vision. something senator carter brought up yesterday during our hearing he asked the witnesses to provided vice to congress to address the recent problems addressed earlier and in response to raise the lack of oversight with the numerous contracts

to measure performance it is an issue for many of us hopefully introduce a legislation but if you are confirmed in regard to the numerous contracts and obligations. i had a lot of experience to look how those were put in place with that component acquisition that i am responsible to a higher as to do things so mostly in

the area of itt's services and financial management. but contrasting can be a very useful tool if used appropriately but you need the strongest controls and people who are trained to but to have a process and i am a substance guy but it doesn't occur so that means one of the requirements to generate for why i hire a contractor in the first place and to determine it is correct to return to the potential contractors is it tidy enough to be overseen?

so to understand that contract to read that require me and what is my access strategy if it is not working? all of those bad to the process. looking from the front to the and not just what is right now but if confirmed one of the things i intend to do is to look carefully of resources are extended but with contacting because it can be an invisible world of not careful. of with program management with the important bottom line. thank you. and supporting a number of those trends and to make up

a large portion with us tsa with transportation and security officers and as they are uniquely qualified for these positions in the security space is there even more that can be done to recruit for our veterans? >> edits a wonderful question but i agree there is provide of wonderful potential source of employment and to accomplish that mission there is room for that. we'll look for opportunities and to increase that were possible. >> and last, very briefly

rigid have questions about the pre-check program coming now from yesterday's hearing. we heard a lot from the different witnesses that expressed concern of the of free check program and there are security risks with that can you address those pre- check idea is the we are property that those travelers may be not just than that out like candy? >> i believe in the trust of the population in the more you can know about population the more comfortable i.m. so i am a fe and of vetting going into

pre-chat with a fully vetting population but how can those be expanded to make that entry into that system more accessible? but the goal should be a pre-check population that is the vetting population that has expanded based on that. >> i appreciate your answers and your testimony in a look forward to working with you in the future. >> thank you for your service. with your pre-hearing questions if you believe the tsa fills aviation responsibilities he did not directly answer the question of the wood is sure it remains laser focused on the core mission. do you believe tsa is laser

focus on the core mission? >> that is the question given the results of the inspector general investigation there are still levels of security but with respect to the equipment by the inspector general of one to provide you with a true and complete your answer if confirmed and the immediate task with eight internal work because what are they finding? so what is the extent of those gaps as we look for the systemic issues and then going back then to look how that fits into the entire

system if there is the captive in a another layer for the security system because as it works asshole is the effectiveness with those individual components with the decision. >> i appreciate that leering peace but you think it is succeeding in its mission? >> i travel a lot and i travel to the west coast this weekend but if that feeling was a good feeling to have that is the way because the equipment it occurred at a number of airports. i don't even look at how

that was done what has the tsa currently done? >> i appreciate reran a classified briefing yesterday but for those pushing on those issues i will be honest i am not that surprised by the 96% issue because there are other classified reports we cannot reveal the particulars of in this setting but you're not answering the question whether you think it is succeeding or failing in its mission. >> i appreciate where you are going senator. the reason i'm not giving a direct user because there are aspects that to work but i want to know how well and i think some of the name based checking is working at a now how effective it is so if confirmed today given

deeper some of what i have heard is reassuring and some of is deeply disturbing. >> without revealing any details to give the terrorists are roadmap to believe the public has a right to know more of the feelings? >> i of the fan of transparency is in the government to make clear how effective the government is and what we do about it so i am a fan of that but not a fan of giving away secrets to our enemies are to expose for their abilities. that is the delicate line line, but i don't want to give comfort or help to those who would harm us

survive so my calls are to declassify with the american people about how badly it is dealing with a caveat which did not reveal any details to give them a road map but the point about security theater one of the main benefits is the deterrent benefit those that were functioning much more but "politico" said he would have the of our herculean turnaround do you think that is what is required? >> first of all a refocus with the understanding that this organization has got to be the day you thank you have it right that is the day will be defeated you question in every assumption

about your performance because somebody will question you if you don't do with yourself then you are staying ahead of the people who are questioning you and it doesn't surprise me but what do you do internally. >> if you fix a broken institution that requires admitting the institution is broken. secretary johnson said that tsa is the best model of risk-based security and he specifically highlighted the pre-check system we know they fail to catch weapons 26% of the time i am curious how can rehab these type of security lapses 40 years after 9/11? >> is a question that made me say yes to take the job.

my family travels i wanted to be safe for all americans i care very deeply about the safety and security of the nation i went to answer that is in the affirmative way i don't know if this is right now that will be my focus for a promise i will come back to this committee to lay out that i find to do so in the unclassified setting. >> that the magnitude of the challenge what grade would you give the hsn tsa? >> it may be premature to assign a letter grade that i will come back with that if i am confirmed that as a

former college president and no where a 4 percent success rate could be anything fan and death. we need to address the magnitude of this problem and people have a right to understand more clearly. >> so to fully admit you have a problem but that with the 25,000 flights what are the odds? henry have to read the problem. >> i appreciate you being here for your willingness to take on the position the nominee for this position so

i appreciate your willingness to take this on and as you heard this testimony in the classified setting what would you prioritize the first thing that you will do if confirmed for this position? >> my first priority is to ensure that those are carried out and extended if necessary. but to close the gaps the to look systemically across the organization how much will it take to do this over time.

>> with the testimony we heard yesterday that was disturbing with respect to this 73 airport workers that the ig found links to terrorism that we were told in fact, tsa was not fully vetting those employees against all the information that the fbi had in terms of those with the terror watchlist. i heard yesterday identified the problem that then we went to the fbi to ask for information hear we are in 2015 if it is that urgent that there was not the immediate fix it is pretty disturbing. when i was asked is if this

committee if you find something like that you don't wait for the bureaucracy to answer but you let us know to make sure a fix like that that is so obvious and immediate so we don't have 73 airport workers with ties to terrorism that we find right away that we are vetting people of fully to not let the bureaucracy bog us down purple will you commit if you find something like that you are now waiting for an answer for it -- from another agency budding gauge as to help you to protect the american public? >> i could not agree more on that issue. absolutely there are legislative fixes i will be the first to come back to request those fixes is but if confirmed we are connected to those databases

as us full member now i understand the importance that was one of the key findings. >> 9/11 was about communication. >> i am in full agreement. >> i appreciate that. and you take on this task of leadership right now to understand this committee is committed to having your back. if you find saying is that need to be fixed right away if they are wrong and you need legislation that this has to be a priority we want to work with you to make sure we get there right one thing and want to ask about is we had testimony before a committee of whistle-blowers they were compelling about

what they went through individually to tell their story is rewind of culture if you bring forward that information in this deal -- you are punished or swept aside if you ring gauge with the employees in your organization to come forward as whistleblowers to those deficiencies he will fully support them to make sure they have the support to make sure we understand all the problems and can address them? >> i do commit to that and i do believe in fighting mechanisms to express concerns if they see a problem i want to hear about it. if they don't feel there is any other way than to go outside the organization it is still an important item

believe there should be any punishment against an individual. these are people who raise their hand to taken no stand they find something and it takes a lot of courage to speak out and go outside your organization. we should commend them to the courage. >> was glad to hear you say that you think the terms of pre-check we need to ensure a fully vetted program and also the other issue is the issue that has popped up in another context where we know behind-the-scenes, the access given with those badges in the airport and in fact the system is one where the airports are controlling that we cannot account for where all the badges are so take a careful look at those badges to make

sure we're not giving people access that we should not. >> i will do that. >> one final thing is the thing that i took from the testimony yesterday classified and unclassified, there are many sops but inconsistent with that application is so if it is the checklist because it'll make takes as you know , one instance of the sops to not be followed of those checks in place to allow a terrorist through. so i want to get your perspective on that and what we should be doing to make sure there is consistency. >> that is a great question and fundamental to how they perform the mission so it is all about standard operating procedure so you can ensure

your focused on the mission and. those can be refined overtime to be straightforward and clear to have a consistent way to train to those standards whether through resident training or through teams that train or individual units. you have to have a way to determine if those standards are being adhered to. so in the coast guard my experience has been standardization in teams that go around and test it people are living up to the standards of to and including the inspector general it is usually just a matter to what people through the procedures he will confront this situation so what is the procedure? a checklist can help where it is appropriate but it is

also an understanding of the process of you focus on the mission what do i need to do to accomplish the mission and what are the standards and the process and what can be done in the checklist fashion and then how do i pinscher it is done? then do it again. i concur it is important to look at the current sops can you understand what you are reading? does it make sense or reduce the things we ought to add? what i have discovered is you can become a slave to your sops than not be aware of the real process. be careful not to just go through the motion but you need a thinking population. we get that all the time in the military then when

somebody asks why then you say i have no idea. [laughter] >> senator langford? >> thank you. thank you for your past service and to take this on as a consideration for to have been asked to consider leading an agency right now that has very low morale morale, systemic problems problems, recent bad evaluations can use is the are wrong metrics the way they evaluate their own performance. that is not an easy thing to step into or uneasy assignment regard this so thank you for your consideration. and went to bounce a couple of issues off of you. some of the metrics of evaluating the issue of conduct purses' performance whether the goal is to quickly get people in line

or for safety checks i think we can do both right now we're pushing on the speed rather than safety like we put ourselves back to sleep on critical issues. how will you would just that with the valuation that i want to move from here to route to how to read engaged there are some great folks that serve that have been terrific service but the morale is terrible nationwide. >> thank you. i thank you hit on the key concern which is the care of the workforce and the training and the brow for cry mentioned in an earlier question about this same issue rile is the important mission and we already have

that. a clear sense and dedication of the leadership to perform that mission so talk about the potential disconnect is key to one fundamental aspect of route. if i am told the most important thing i can do is protect the travelling public but i am not measured how i do that is a disconnect my fear is that breeds cynicism to low morale so i get that so first what is the most important thing? why did you raise your hand? not many people do that so they are still among the though 1%. you deserve to support them. up next comes training you have to train them and to

continually trade them to get them in the continual learning process in a callous that different from what is happening out? because all of those things are occurring now. >> i am not sure, i think over time it is easy for reorganization to shift focus to think they have the mission right and work on other things. you cannot -- never stop referring back what i found in my service in the coast guard even in a high morale organization you could have pockets of low morale, the date you get complacent at the leadership level to thank you have it right. space gets tired of being reminded of how important their job is are being trained burchfield good how to use equipment and no one gets tired of engaging with that organization so it is

the engagement you cannot thank you have a right because as you have a meeting and move on. in annual surveys are a good place to figure out where to ring gauge more effective but it only raises questions >> the hiring and training makes a difference there working in close quarters of there is a bad apple is difficult for everyone in the group to manage those attitudes emplacement to make the enormous difference tsa has millions of dollars of equipment stored in the warehouse is to determine that deficiency when they will purchase something different with a 2% gain is that enough? it involves billions of dollars of procurement and so is that a change of attitude for you? >> my current role of ethnic

component executive for the coast guard's ally oversee the whole acquisition and process that starts with the basic requirements of how the mission and can be accomplished and the threats to keep us from accomplishing the mission then you build the requirements that you need summer human summer equipment and those are interactive. then you have to have the ability to translate those into this thing that you need to buy. so there is a process and i have learned if we completely rebuilt the acquisition program we did not have one of the best processes and government but i do think we do now because we looked at it from start to finish you cannot simply

walk out to say give me something that will do something. i don't blame industry for providing things that don't work. they will provide what they have but you really need to examine what do i need to know? if you look at a piece of detection equipment what do i need it to find? what are the limitations of that technology? so what are the other requirements on top of it? it is not just for the equipment but what it cannot do. that is combined into the procurement process is indeed a rigorous process to read here to oversight and controls to separate the person who writes the requirement to the person who implements to oversee the program and a person and contracting and the more separation you can have among those a more rigorous

up process or you run into schedule preachy and cost overrun. >> gan to evaluate not based on the laboratory very real world function ability and that has been a problem that we have to have the real world involvement and the chairman indulgence with the pre-check issue people are coming through that are not really preach checked so we need to change the name gore really focus on pre-check. not those that have really gone through the process but it seems we increase the number of people for efficiency but we're losing the focus of what it is designed to do and the actual security proposal trying to increase efficiency but losing the focus on security is a recipe for disaster so

pre-check should be pre-check with the background more than book of profile. thank you. >> senator? america want to add my voice to with the senator just said. this has got to mean something it cannot be you flew a lot of miles and nothing bad happened so you get the pass you have to know who we're dealing with. want to add my voice how grateful we are you are stepping up to take on this enormous challenge. to opted rigo say thank you to those folks that goes to that onerous and difficult process, but we are extraordinarily grateful. we find more and more people that put on the uniform of our country to serve tend to

step up to continue their service so thank you with your willingness to take this on ion excited about the changes i know you will make having been in important leadership positions in the past. but what i do want to talk about is how do you engage everyone regardless if they are collecting the trays to the curve -- the person at the very top? how do they have a sense of purpose was strategy's kid you deploy to improve route but the sense of importance?

>> the need to look at how do we teach people? thinking back to my experience, in our case everybody read dave wonderful letter from treasury secretary hamilton the very first instruction to that than commanding officers of the carter service there precursor to the coast guard. was challenging there were told to go do something that has never been done before to collect a tariff something merchant vessels were not pleased about and did not want to encounter the new government trying to assert its power. in the process he lays out the requirements and duties and obligations. but he said something very

interesting that begins that cultural indoctrination into always keep in mind your countrymen are impatient. that is wonderful and it goes on and on the letter is multiple pages but it is repeated over and over again throughout your career in the coast guard. we use it when we of various people in ring can promote them and with a new oath of office to remind them that he will do things that by nature interfere with the free movement of people and sometimes it will interfere with their individual rights because they bite to do something and you will get in their way. it doesn't have to offend them or that does not respect them.

how does tsa do that? what is the way that tsa indoctrinates or provides a culture? there is the tsa academy had not know how well attended that have deep engaged with the work force? we live in engaged it is easy to communicate with people i don't except the adp to shore where the dispersed you cannot find a way to talk to them. we do this all the time to work in small unit teams i cannot touch every single member every day but i can assure myself that they are plugged into the organization. if confirmed am booked ways to do that with the tsa and connect leadership to the front-line the another big factor of more route is how distant is your leadership from the people doing the work? i don't do the work of the

coast guard any more. the coast guard does the work that people on the front line. how do they know i am paying attention and i have their back to provide them with tools and training if i don't teenage? that is what i look to while i connect to the work force and then met what i said -- i meant what i said about commitment to excellence and service to the nation on a daily basis i am always astonished at the new things that i've learned about. >> has been said already but improving the morale of tsa to reduce turnover, you have an appreciation how important their work is and how much their country is counting on them and as we saw their work can be dangerous and they need to

be appreciated for that to stand on those frontlines to be the signal for go the other thing i would say that the public gets frustrated is when they don't see value added to the savings that tsa does. why would we need to do that? it is important your communication and why they need to do that talks about the challenges that you have so people like us at airports better understand what that goal is so rough for that suggestion not that we spend a lot of time talking to the travelling public about the importance of what you do. we have great hope for you if there is something we can do or ideas were the laws

restrict you i hope you come back to the committee or individually to say this makes no sense. please change it. >> thank you senator. we're pretty well covered most of the issues. but i will make a statement. regardless of the fact we have not had additional airplanes used as a weapon because we did deal with solutions to hard in those cockpit doors effective from the standpoint of security i do believe the tsa has been in denial of the processes and procedures we have in place it will catch the water bottle or my of little boy scout pocket knife that i did not realize was in my briefcase for those

determined people i think that is pretty telling. it is a matter to recognize reality we have those problems but i will ask given testimony yesterday one of the whistle-blowers claimed the feeling of fear and mistrust and the senator charts to retaliation which we will have a hearing tomorrow on whistle-blowers and the type of retaliation but it is disturbing across the government how prevalent that is and there is that problem within the tsa as well some of you have a significant management challenge with low morale i do you really believe is a possible to have that prevalent feeling of fear and mistrust? but from that tedious nature

it is into complacency. how you manage that or rotation of storer provide incentives to keep people alert? but the fear and mistrust statement from mr. delaware? >> i hope it is said a pervasive fear and mistrust but i will tell you that i start from that premise of trusting maya organization. that is where you learn the most about what you are doing. i will commit this is one of the most important thing is to me speaking to ratify work for an organization that i don't trust and will take action against me if i bring problems to light that is a morale killer. address that right of france will commit that is not the way i do business with the

people who report to me and i will take a hard look at the current climate of the tsa. >> over memorial day weekend threats were made against international flights bound for the united states. while they redeemed not to be credible but it presents days in the figueres how witty work with international partners for those standards in foreign countries? >> it is the agreed upon international standards to be rigorous and at a level that issuers you we're doing the absolute best that you can to stop any potential threat. i have had a lot of experience with that in the maritime sector the coast

guard represents to various international bodies with maritime security and safety and i found that first of all, the other countries one debtor countries to be saved but if you have a patchwork of approaches then you will have gaps in security. is important to work with those international bodies to ensure you have quite clear and well defined standards and a mechanism to enforce state adherents of those standards that includes spacek and verifying team said are sent all over the world from the coast guard to inspect to make sure they're doing what they claim to be doing on paper. when refined evidence they are not then we apply

sanctions up to and including two of not allow the vessel to a rise in the west country. it is even more imperative with aviation because we know we have significant concerns with foreign fighters and increasing radicalization of terrorist groups and their continuing to focus on that aviation system working with those counterparts around the world with last points up torture - - departure brown for the united states and to insure those standards that are appropriate that oversight mechanism has standards. >> kenner closed session yesterday for the things that we discussed is the up pat down to better insure security it is sensitive and

awkward situation but it is difficult for the passengers to endure this. i am sure that some other countries may have figured out a better way to do this but when you get settled is but look around the world that nations to with these issues may be somebody has come up with a better mousetrap we can learn from. i also wonder variation of the session yesterday. so it gives us a short to do best - - list. so one of the things that we

would get the gao we have a to do list. . .

to work with me. i promise you it will be just as it is for my site from your side and i would like to bring to you and open manner the challenges that i find out where those challenges need to be addressed by work that this committee is. >> thank you. >> j johnson, secretary of dhs told me a couple months ago, we got a leader for tsa and at no. his name is pete. he's a coast guard. you're going to like them. him. i said, i am impressed. thankfully -- thank you for your willingness to serve. >> senator. >> you bet. thank you, mr. chairman,

ranking member get to another nominee, so i will fly to questions, one of which will submit my letter. the 1st is i appreciate many of your statements about your desire to escape to where the puck is going to be an deal with the security threats we face of the course of the coming decades and to be forward-looking. i also appreciate your clear concern for the workforce and for the morale issues inside the organization. there are lots of good freedom loving americans. my worry about the magnitude of the challenges we face does not start with workforce issues. i think we have big leadership problems inside the organization and are at a a gap as far as strategic priorities and measurement. you mentioned in yesterday director roy talked about

the fact that there is this tension between a couple different tsa mentions but almost none of the metrics go to the success that entered acting prohibited weapons and materials. i'm curious and will submit by letter about your familiarity with the briefings and performance metrics the secretary receives on a weekly basis. we have not gotten adequate answers from the department about the frequency and the quality of the performance metrics inside the key components and agencies. i i would like to understand what familiarity you had with the briefings and what you expect to be included as far as the performance metrics in your potential new role. we submit that by letter.

the final question i ask in person, i had a chance to meet with inspector general john roth three times in last week and appreciate the work of his organization. he said directly to us some something classified settings but a public hearing the other day that he does not believe the leadership of tsa clearly understands the nature of the risk does not believe they truly understand the nature of the risk. do you believe he is right? do you think that the leadership has understood the nature? >> i i had a chance to sit down with director roth. i understand the nature of the risk. there are people who do but what i want to understand is how effective they are and how well they can be heard and more importantly the reasons why that information appears to be challenging to make it to the right level

for the organization. it is tied directly to your previous question. i look forward to answering that question and engaging with this committee and the in the future as we work to ensure that the things that we do measure of the right things and that you continue to question. again, just like security the measure you put in place might be appropriate today but not for tomorrow. >> thank you. >> thank you. i have to commend the president and secretary for finding such a quality individual someone well-qualified and suited for this position. i certainly wants to tell you and was my appreciation for your past service to willingness to serve command i make the commitment.

a number of us have voted for your confirmation. we will try to move this quickly through the community. again, we are so thankful for your willingness to serve. further commitment to have this committee to have you back and do everything we can. thank you again and we look forward to working with you in the future. >> thank you. >> mr. shapiro. >> on the next washington journal we will talk to republican policy committee chair luke messer and then congressman david price on transportation and had spending. the top democrat on the house appropriations subcommittee on transportation and housing and urban development development.

>> thursday the senate homeland security and governmental affairs committee hears the stories of whistleblowers from different federal agencies faced retaliation after bringing attention to government wrongdoing. you can see it at 10:30 a.m. eastern. >> the new congressional directory is a handy guide to the 114th congress with color photos of every senator and house member plus bio and contact information and twitter handles. also, district maps, a foldout map of capitol hill and delicate congressional committees, the president's cabinet, federal agencies and state governors.

order your copy order your copy today. $13.95 plus shipping and handling through the "chasing" online store at "high speed chase". next him of the senate homeland security committee hears and from david shapiro, the president's nominee to lead the u.s. postal service board of governors. currently the executive chairman of the giant eagle supermarket chain. this is one hour. >> we want to the 2nd part of our hearing. nominated to be the governor for the united states postal service chairman of the board of directors of giant eagle. under his leadership giant eagle side huge growth expanded from pittsburgh to ohio, indiana, west virginia, and maryland. the united maryland.

the united states postal service continues to see huge losses. fiscal year 2014. the united states postal service needs smarter creative solutions. the ability to expand and adapt to a customer preference is something that the postal service needs. welcome. we look forward to your testimony. we have senator bob casey from pennsylvania who would like to say a few words. >> let me just say we don't trust senator casey. >> that's why i was hoping senator toomey would be here >> is great to see you. thank you for coming. >> i thank the i thank the chairman and the ranking member for giving me this opportunity to introduce david. mr. chairman, you highlighted some of his business background. one of the most significant parts of his record and resume. i will not dwell on the

details of his background but i want to say something about his character. we all know the challenges of being an elected public service appointed public service comes up a lot of challenges as well. the process itself is a substantial challenge command i am always amazed and gratified that we have people willing to put themselves forward for public service even though the process to get there, to be confirmed or even considered is challenging. the fact that dave is going to do this is an indication not just of his character but also his commitment to our country. he is as you mentioned, ceo and chairman or has been from 1980 until 2012. since 2012 he served as executive chairman of one of

the most successful businesses that i no in pennsylvania graduating from over one college, received his ma in economics from stanford. we could use more of that. and if success will be of great benefit to the postal service serving as a member of the board of governors. i come back to his character. this is a person of integrity and someone who truly believes what he is

doing if you were to be confirmed will be public service. as of optical we have an exception on the finance bill the most a capitol that reads as follows. our public services at just. david understands that. he accepts it with honor and the best way to demonstrate he has accepted it in that fashion is to do quality public service with integrity. he will do that i have no doubt. we are grateful you're willing to serve and be part of this nomination process. >> thank you. appreciate those words. i no the senator also wanted to come here. if the makes it we will offer the opportunity. if not i ask unanimous consent that a statement of support be entered in the record.

>> i do not object if he will repeat one-time those words ascribed, all public service. >> a trust given in faith and accepted and honored. >> i do not object. thank you. >> i wish wish they were my words, but they were inscribed in the building. >> again, thank you. it is it is the tradition of this committee to swear witnesses and. please rise and raise your right hand. eastward testimony you give be the truth all truth and nothing but the truth stop you got? >> i could read your introduction, but i've read it before. >> thank you very much. chairman johnson if if i can just say i am blown away by senator casey coming and saying what he did. i thank him for that. chairman, ranking member members of the community

thank you for the honor of appearing today, today, the privilege to be considered for nomination for the united states postal service has board of governors. i want to thank pres. obama for this honor and for the vote of confidence that it represents. it is truly humbling kind of confirmed i will work diligently to show this confidence and your consent is well-deserved. i also want to thank my wife and my family for supporting this undertaking. the responsibility and opportunity for national public service will require sacrifice and if confirmed i will do my part. my family is truly my greatest gift. >> the young woman sitting behind you. >> is showing beautiful woman. yes. >> woman. yes. >> thank you for your willingness to share your has no the country.

>> my written testimony provides details. for more than 30 years i was the chairman, ceo, and president of giant eagle markets. >> will we call walk on. >> i am completely blown away. during that time our chain of stores grew from about 50 to over 400. i was doing a little bit under $10 billion in volume and employees about 36000 americans. i don't want to take credit for this. i was surrounded by smart capable people, and the achievement is theirs, not mine. a a large organization like giant eagle only succeeds when they inspired talents. i am immensely proud of the team that i helped to lead.

when i stepped away from day-to-day operations in 2013 i left the company in capable hands. i've always had an interest in giving back to my committee and have served on boards in a number of civic organizations over the years however, since my retirement as ceo i have been able to more fully pursue what i hope will be a 2nd career and community service and philanthropy. i i believe that such service is a foundation of our country and is a major component of democratic society. a colleague of my fathers used to hand out business cards and said the more i give more i get to read every citizen to the extent that he or she is able.

president obama has offered me a knew opportunity with a truly national and international scope. united states postal service epitomizes a key tenet that underlies our unique government of the people, people, the right of everyone rich or poor, rural or urban of every creed, faith command race to efficient, affordable, and reliable communications. so critically. so critically important to the founding fathers was this concept that they establish the us post office at the 2nd middle congress 1775 the year before signed the declaration of independence. the u.s. postal service is a conduit of commerce poetical thought, and command messaging. most important, it is a bedrock to people everywhere to remain connected to family, friends, community command the greater world around them. other communications of come

disrupting the paradigm and creating new challenges and opportunities. it still remains and has a significant place in essential government services. today the institution is struggling. for years expenses have exceeded revenue looking deeper, its most profitable product for first-class mail is in decline but is achieving growth and delivery of packages. the post office has undertaken an ambitious effort to cut costs but this is the real risk of degrading service which could leave it worse off in the long run. recent losses recent losses have forced it to delay needed capitol investment. like any well-managed enterprise is to address its long-term liability particularly with harry health benefits. given the postal service size the answer is multifaceted.

it it must preserve and enhance current products while seeking out new opportunities to expand must look for ways to be more efficient but also must preserve those assets which will enable it to have long-term growth. growth. it needs a solid plan to address its long-term liabilities but also must make near-term capitol investment. if if confirmed i look forward to exploring these issues and much greater depth and believe that my business background experience and commitment to public service can help push this work forward. thank you members thank you members of the committee for your attention and i like forward answer your questions. >> thank you. a few words of support. >> thank you very much. i appreciate you giving me this chance. i apologize i was not here at the beginning. there is a rule in the

senate that requires conflicting simultaneous scheduled meetings. it is a pleasure for me to be here in the say a few words on behalf of mr. shapiro with respect to his nominee to be a governor of the u.s. postal service. let me say postal service and united states are very fortunate that a man of his judgments and capabilities is willing to serve in this capacity. i am delighted that he is willing to do this. we will benefit enormously from his wisdom, experience command the hard work that i no he will do. mr. shapiro was far too modest in describing his accomplishments in guiding giant eagle from what started as a very small chain with several other families and has become a very large business employing tens of thousands of people and really doing great work.

in addition, david has served on numerous corporate and university boards from which he has developed a terrific range of experiences and really acquired great knowledge about so many different business activities and models. his philanthropic work has been absolutely terrific and very important, especially in western pennsylvania and beyond. i just think that david shapiro represents the best of pennsylvania and pittsburgh has to offer this country. he is an he is an extremely talented and accomplished business and philanthropic leader and we are fortunate to have his services and i fully support his confirmation. >> thank you, senator for taking time to offer those words of support to the nominee.

to retreat. let me start with is there anything you are aware of and your background that might present a conflict of interest? >> no. if anything should araiza would recuse myself. >> thank you. do you know anything personal or otherwise that would be in anyway prevent it from fully and honorably discharging responsibilities of the office from what you have been nominated? >> no. >> do you agree without reservation to apply with any summons to testify? >> yes. >> thank you. i am obviously intrigued by your business background. i started my business and

79. he started a year later. obviously you have some real talent. you talk about new opportunities for the post office. can you tell me your concern about the postal system to the competing with the private sector and how your trying to set up guidelines if you have concerns? >> let me answer that question with little bit of background. as i was getting nervous hearing i realize that during my career we faced a situation which i think is -- we face then they continue to face actually a situation which is very similar to what the post office does the rise of new competitors and new technology which threaten various parts of our business.

in the giant eagle case something that most people would not think about there has been an enormous lifestyle shift from eating at home to eating out. in the supermarket business we serve food in our. every meal that switches from the home to a restaurant take business away from us. so the way that we adopt -- adapter that is to continue to do what we did but also at -- begin to diversify we will be sold. as i was saying at the staff hearing among -- we started growing new business. but within our stores so that not only did new business bring in revenue but the fact that we have the knew business reinforce the old business. some examples of that the

businesslike pharmacy. i started in the supermarket business. there was no such thing as pharmacy and supermarket. today i'll good supermarkets have successful pharmacies. second example of that is gasoline. whoever imagined whoever imagined that you get a gas the same place again groceries. i think the post office has the same kind of problem. it has a severe technological shred and competitive strength to best product. i think the way to defend that is to continuously try to improve first-class but also to develop other projects which can bring in revenue and hopefully reinforce the use at the

same time. actually, as i look at what the post office has been doing, it has been doing this things. i don't think it needs a radical change. and in terms of competing with private businesses by lisa nongovernmental businesses is the right word it's a very interesting question. post office is a mission. that gives them certain advantages and disadvantages but but clearly the post

office compete against them as they compete against the post office. competition is a good thing i'm in favor of seeing new products and being aggressive. >> i imagine you get a lot of strategic planning. i certainly haven't found great value in business. people are familiar with that here. can you go through the primary strengths of the postal service. >> the primary strengths system and the employees the post office is a system

which calls on every single address. that's an enormous strength. the 2nd strengthens brand equity. everyone understands the post office. everyone understands how to mail a letter, how you go about getting a stamp, putting it on. in this case brand equity is an institutional memory the whole population of the country. the opportunities, well, the weaknesses are several things. one is of the post office was constrained from operating which is

something that no other company or institution. and a 2nd weakness is in some ways constrained from introducing new product. my understanding is that the loss is the post office introduce a new a new product that doesn't use the postbox, the mailbox. days like today where technology is changing so quickly the inability to adapt to changing technology is a big weakness. and, of course, it's a huge threat. the threat of the internet

in terms of the first-class. even actually second-class. and they said the company like giant eagle trying to move as fast as we can over the internet because it's so much cheaper. is not so easy to do. leaving some out there. one reason i'm happier mattia these days technology

is changing so fast. and i think the other threat , they are put on by law and the political system getting information from things it's only going to grow. from the post office you know, my experience. >> thank you, senator.

>> very nice to have a chance to meet you. encouraging him. thank you for your encouragement which is a coal mining town. back there couple months ago 1950 he started a little supermarket in west virginia are the road.

>> a goes around. >> there you go. >> i grew up. my grandparents are cousins the mom-and-pop supermarket cold i. opened up. they want. an mp opened up. it's not easy, they didn't have the mom-and-pop

supermarket. over time they change to adjust. kids who buy food on credit. parkinson's disease. his hand would shake like this. it was an amazing transformation they got it. the people that were coming, the children. they continue to be a supermarket.

the catering service as well and so much for my and knuckle. customer service. to serve, talk about the lessons, the life lessons that you learned from growing your business. the 4th is such a. the poor constituents our customers the employees

the communities we live in and our shareholders. when i talk about this i like to like to say that those four are not in any particular order except the last one. that doesn't mean that we don't think our shareholders are important. obviously they are important and we know they have to make money. they have to pay dividends. otherwise the so we don't need you. more important. the long run view of our business. if we serve those other three constituencies well and that we are good financially responsible business that in the long run this shareholders will be better off and of course so everyone else.

i think an organization like the post office which is a little different. the customer is actually are the shareholders and all the shareholders but i think if we concentrate on serving our customers taking care of the workforce in making sure the workforce is well-trained, well motivated understands why they are here. it's interesting listening to the apple. >> beautifully on the subjects. if we remember that part of our mission is to serve communities big or small near or far and if we are free from some of the constraints that we operate under of the post office can

be very successful. >> the answer this question. the postal service for labor unions that are organized and represent different employees within the postal service. we have the opportunity to work with them, the board of governors leaders of the postal service have the opportunity to work as well. i find them to be more often than not constructive and trying to be helpful to enable the postal service to survive and thrive and go on to service for hundreds of more years. to what extent in your business you had a chance to work with collective bargaining units but if you have could you share with us some of what you have learned that might be

helpful for the postal service? and if you haven't, the interesting observations you might have. >> a union company. we have some small nonunion operations. dozens of different unions. i think dealing with -- assuming that the unions have reasonably good leadership their kids. he gives you ability to communicate with people that you don't necessarily have your nonunion. the union has been leadership. my view on dealing with employees is we don't have to respect them.

you half to get feedback from them. you have to include them in the process. some of the things that the animals says you have to have a clear mission, you have to explain to people. one is a probably have to be open and honest with partners. my experiences in most cases the unions are cooperative and can help solve the problem. of course you have to respect their.of view. and it takes a back to when i talk about our constituencies. one of the most important constituencies the union represents the employees.

issue respective just like you with a warrant. >> are you pretty well-versed in that? >> i would say no. >> i would say am reasonably familiar. but the business background. pretty straightforward. >> when you look at the pre- funding requirement of the environment in fact what

essentially goes on as we put a debit against ours for the amount. we put in our debit. it's like a joke. it's a debt owed to the federal government. it's really it's really not pre- funded. it's pre- funded to the extent that you have liability to the federal government. it's just one of liabilities >> just one. our pension liabilities. all kinds of liabilities. the pre- funding of the retirement benefit and the connection of the two of the employees of these medicare seems to me that that should be an obvious and very easy fix. and in looking at the

financials the pre- funding is just very slightly smaller than the total loss of the system. of the pre- funding were eliminated you would be losing money. well, money. well, we would still be losing money but not very much. we we still have this overhang of about a hundred billion dollars in unfunded liability. it looks like a backup. you just talking straight up and down it seems like the bankrupt. the liabilities are actually paid out over many years.

this is a discounted value of future liability. bankruptcy you can look at a balance sheet and say you bankrupt. cash flow statement,. so the question is by the way this is not just the post office question. i don't think were bankrupt and this is the think we still have time to deal with it. we're bankrupt in the sense that if we don't deal with it is clear with the end is going to be. so i think it's a matter of definition. is clearly a serious problem

we are members of collective bargaining agreements that have player joint pension funds with the funds are horribly underwater. i think it's called the red list. the question is what your going to do about it. >> the problem is commend senator carper led the way that senator tom coburn trying to come to some resolution to this. you spoke about the constraints because congress is trying to in some way, shape or form manage and direct what should be -- the goal was to make the post office and more autonomous type of organization but they don't have that autonomy operationally or financially. the american taxpayer is still not for this.

if you read if you read the constitution realize the post office is an enumerated power. it's pretty basic. establish post offices and post roads. do you think it's really a constitutional imperative that no matter what post office has to maintain upon the constitution service of delivering mail different things post office is to have a post office. even if its way outside the mission of delivering mail.

the definition of delivering the mail. it says you have to deliver the mail. is that does that mean every day? does it mean every other dates back as a mean to times a day? the function is important. the question of how we define the function is also important. we have to define what it is in general terms, not very helpful which is what causes the controversy. >> and i i completely agree that we need to define what the post office should do the constitutional enumerated power of it and ask yourselves a serious question with the bankrupt organization. have expanded the different

areas taxpayer guaranteed. the taxpayers on the hook for growing liabilities. think is a very serious questions. we have to ask ourselves the same questions. the 1st i've seen them on television. it was obvious to me. i was equally impressed with the kind of answers. all of those things i really liked the questions and answers the willingness of the community to have his back and at least what appeared to be a desire on

both sides his and the community to cooperate on helping to solve the problem my view is that the post office can't solve his problems. it needs you. it is the congress. you know, there are laws established. this cooperative solution to the problem. that is difficult. i think it would be me interacting with the community.

the cooperation of this committee. >> kite for manufacturing background to go through. the definition of the problem. the political environment gets all jumbled up. of having a hard time. been in business a long time it still confusing to me. getting a a better handle on it. it starts with the reality of the situation and based on that defining the problem in exactly what the achievable goal is. then you start setting strategies. you often times bypass that process which is

what you are hearing in the earlier part of our committee. we were trying to get to the definition of the problem. i'll problem. harvey admitting we have one, looking at this honestly. i appreciate the fact that you have this business background, highly successful command the right type of mind, asking the questions exactly correctly, the definition of what we have to ask direct questions. again, i appreciate the input and we absolutely want to cooperate with the board of governors that the postmaster general. i have questions on how we could resolve this. support his efforts. >> thank you for your support. in terms of the role of the postal service to my looked back to abraham lincoln.

the role of government. the role of the role of government is to do for the people that they cannot do for themselves. it it was a constitutional stipulation that we have the postal service because before going to have this experiment called the united states of america it will be helpful if we could communicate to the far reaches of the country however large we grow to be. important for us to facilitate commerce and maybe the postal service in other countries. maybe we could help them find a helpful role for them in this country. as you said in your own business, overtime that a man of your customers is changed in your business is changed to meet those. i think the same is true with the postal service. some of the folks that we work with we are an enabler. the congress is unable or.

we talked about one of my last trip stand on under a sky place that i hope to visit with them. and i am trying to figure out why all these people come up here. is because that is difficult lives which we contribute directly to make it even more difficult. but my last -- at a press conference. has to best are questioned questions by the president. one of things i said and tamils, we have an. i said to have them in america to. advertising in america for years. home depot. dislike on the.

the day. as a need for service to be offered. the postal service some of the postal service products. the issue that a lot of people keep coming back to the issue of this unfunded liability for retiree health care. the question is, is it a reliability? i i think it is. my last year's governor we had just.

standard and poor trying the interplay credit rating. ed and eight years balanced-budget, pay taxes. strong employment numbers. last year's governor, aaa credit rating. lo and behold all three across the board give us aaa is the 1st time. and he said we used to. elected governor. we had no money for employees and retirees. revenue and participation to raise money and make pigeon checks every month. ten ye