omb issues policy memoranda as part of its oversight role of federal activities. so there are government wide policies and procedures as well as standards. at the same time, though, federal agencies need to assess the risk and apply the standards as they pertain to their own environment. so they need to be able to assess the risk and determine which are proper controls are necessary to mitigate those risks in their own computing and are met. host: did the gao look of a framework for decision making in have suggestions? guest: yes. in our review will look at the standards of that omb has established for federal agencies and monitor the extent to which federal agencies have implemented that. under fisma, gao is responsible for assessing the security at federal agencies and compliance of the provisions of the act. that is the other side is federal law. another requirement for agencies to follow. and our report we do address how well federal agencies are meeting those requirements are based on the work that gao has performed, as well as the work that agency i.g.'s and

omb issued a report on its fisma implementation which is required to under law last year or early this year and it identifies about 1100 of the 13,000 systems operated by the federal government, 1100 of those were operated by contractors. in addition, the i.t. personnel that were involved in information security activity for which there are about 80,000 fte's a large percentage of those, particularly in the civilian agencies, over half of those, were contractor personnel. so it is a large number of contractor personnel that have access to information. >> host: to follow up on joe's line of questioning does that lead to further security concerns and what about the issue of cloud computing? does that lead to security threats? >> guest: certainly with the use of contractors, agencies need to understand and be aware of the controls they have in place to oversee the actions of those contractors to make sure they adequately protect information systems and their information. with respect to cloud computing i testified last week on the senate congressional committee in which i indicated our re

the only information we received has been for omb. as d.o.e. has not responded to many requests for information about trent three, end quote. she goes on to note the treasury's legal counsel statute and d.o.e. regulations both require the guaranteed loan should not be subordinated to any loan or their debt obligations and that in february, treasury request in writing that d.o.e. seek the department of justices approve the approval is any proposed restructuring and not to hurt knowledge, that has never happened. in closing, assistant secretary miller seemed almost resigned to d.o.e. scores of action in stating that while she expects that d.o.e. has it so you why the subordination can occur without eog, approval of treasury consultation, i wanted to correct any impressions we have acquiesced in the stats to date. .. >> he understood quote, these adjustments may include subordination of solyndra's 535 million reimbursement obligations to d.o.e., and possibly the forgiveness of interest, integral. accordingly he raised the prospect of seeking depar

sharp consult with omb and treasured for granted any deviation and that loan. -- shall consult with omb and treasury for any deviation in that loan. the bankruptcy is not only a deviation, it is apparently unprecedented. so what happened? why did d.o.e. keep treasury in the dark? solyndra was burning through cash and the alarm bells were ringing. treasury restructure the terms and gave to private investment firms priority over the federal government in the unlikely that event the solyndra declared bankruptcy. d.o.e. postponed their initial interest payments and pushed back the payment of the loan. d.o.e. waived several requirements solyndra was required to be before receiving further funding. including solyndra's consistent failure to comply with the davis banking act and their inability to contribute to an agreed upon reserve bucket. while all that was happening d.o.e. continued to push millions of additional dollars out the door in the futile attempt to save solyndra. six months later, as predicted by d.o.e.'s on financial model in 2009, solyndra went belly up. today's witnesses hopef

omb re al omb re. he just finished a film called latie on youth. he is a father and his 2 children are here. daniel and elma and his daughter in law and megan m burns and suggested we contact him. we are so happy to have you here and look forward to hearing your address. >> good morning ladies and gentlemen. you know i got to share this with you. i know how to drive a tractor. don't forget what you come from. culture cures. it's like coming back to our mom. i want to first and formost jeff adachi, thank you for the opportunity. patty lee. and sury to all the students. can i see the hands of the high school students? you know what i like about that? mihose means my children. look where you are sitting. in the front. i did a presentation for 2 thousand students and they were 25 hundred chairs. where do you think they sat? it breaks my heart. they sat in the back. i had all the ushers remove the first 5 hundred chairs and we started getting closer. how does it feel to be in the front? if you see yourself at second best, how do you think people are goi

the only subpoena was for the documents from the omb, not doe.ed to this committee voluntarily come into this particular memo and in addition the other memo which says draft as secretary chu. chu was in the wendi production but this one was produced many months ago we had so, you know, if we want to try to cater to the press and make a scandal where there is one we can do that. if we want to have a full and thorough investigation. i would suggest we put the memos in and bring the doe people in, talk to them about why there was one drafted another one and so long instead of making these allegations completely unsupported by any evidence. i would also say, mr. chairman, that the doe wasn't even invited to this committee. mr. waxman and i wrote a letter to you asking that the doe be invited to this committee. so to somehow save the doe is trying to hide something is, again, inaccurate. i think that emotions are running high. i'm glad we are putting both of these memos into the record. let's bring the doe in to talk to them about it instead of making

that omb to risk-based approach. the challenge doing anything in the short term for the state department is it takes years to grow diplomatic security specialists. it would be difficult if not impossible for the state department to grow 5500 or 7,000. they are in a situation we describe that you use in your opening statement. they have no choice. they got there by default. they don't have the organic capacity to be expeditionary in a combat zone for very long. state is facing a dynamic situation in iraq and they have no choice but to contract for the security they need. >> if i could add to that. it is my understanding that whether the state actually considers that it is limited, my understanding is it doesn't. it is only apply and to d o d which is a major issue. secondly, one possible way around the dilemma bob henke just laid out is to have better oversight. if you are stuck with contractors at least have people that oversee them and if you cannot get people from within the state department get them from other fed

systems, the omb published some of the statistics. there were 10,000, or in excess of 10,000 federal i.t. systems. and many of those i.. the -- i.t. systems operated with fairly what we would call high-risk impact data, data that if it got out would really hinder the ability of the agency to operate. but there were thousands of them that were low or moderate risk systems, and those are the ones that are suitable for the cloud. the fed ramp program that has been developed by gsa, omb and dhs encourages looking at those applications. so i think you will see private clouds particularly for the moderate risk applications, but there are many applications that are perfectly suitable for the cloud today. and in cases like that, the public cloud offers all the benefits. i think that it's good to make that evaluation of private versus public. in the case of dhs, they chose private for initial foray. that doesn't mean all their applications will end up there. >> host: and then i wanted to ask you about, for example, one of the major cloud servi

systems, the omb published, there were 10,000 or in excess of 10,000 federal i.t. systems, and many of those on 18 systems were systems that operated with what we would call high-risk impact data that if it got out would hinder the ability of the agency to operate, but there were thousands of them that were low risk or moderate risk and the low or moderate risk systems are the ones that are suitable for the cloud. the federal program that has been developed by the gsa, omb and dhs encourages looking at those applications. so i think that you will see private clouds particularly for the moderate risk applications, but there are many applications a perfectly suitable for the cloud today and in the cases like that the public weld offers all the benefits. i think it's good to make that evaluation public in the face of the dhs for the initial doesn't mean all their applications will end up there. >> i wanted to ask you about, for example, one of the major cloud service providers coming up right now and that some google. about a year ago they had published a posting that

an omb analyst writes - quote - "possible to close and ddfault on one before closing on a secood??? chu denied that a second solyndda loan was eeer considered.sot - chu says: "... it was not ever n serious contention... here are many, many sseps... so it's not trre." both chu and president obama today againnacknowledged that some loan guarantees would be pisky, but neeessary invessments for thh us to remaan competitivv. as to whetter laws broken? sot - obama says: "... if they violated llws on the books, they need to be prosecuted." but some republicans in the house energy and commerce committee don't trust the administration to investigate itself. they believe that another subpoena will be necessary to force thh administration to produue those e-mails that committee members want to see. in washington, doug mckelway, fox news. 3 republiccns.../ turn... up the heat.../ on... attorney general ...ericc holder, .../ ááwitháá some saying... he... misled testimony. today.../ the.... justice &pdepartment... fired back.../ saying .../// ááthissá was... all a game ...of... "gotcha"...

. >> you were hearing this from omb. you were hearing they may have been subordinating the taxpayer. you cited some statute that said you can't do it, basically. you don't have legal authority. that's why you need to consult the department of justice because i think in your e-mail, reading from your febuary 10th e-mail, unless other authorities exist the statute rests with doj and the authority to accept compromise of the claim of the u.s. government in those instances where the principal balance after debt exceeds $100,000. you specifically said you can't subordinate the taxpayer unless you have some approval from the department of justice. >> we were specific on the fact that they should go to the department of justice. >> and right, going --, going to the actual question, the next e-mail you got back was, could you call me, could you give me a call to discuss, thanks. and that is from the department of energy's legal counsel. so again, now we're going off the e-mails. who all were involved in those discussions, not e-

. >> recent e-mails produced by the white house and omb, as well as a long chain of others clearly showmerous members of the obama administration, from the most senior levels in the west wing down to the career professionals at omb and doe knew that solyndra was a bad bet that was destined to fail. >> wrongdoing by government officials. just a bad investment decision. >> and in another development today, white house chief of staff bill daly told cnbc's john harwood today that the white house is not likely to turn over any e-mails that president barack obama might have sent about solyndra, even though republicans on the hill have asked for those e-mails. eamon javers, cnbc business news in washington. >> thank you. >>> new details tonight about stanford's plan to build a brand-new campus in new york. those are the stock numbers we just gave you a moment ago. so we're not going to give them to you again. let's talk about stanford. the university is putting the finishing touches on a 500-page application for the second campus in new york city. it's to land on mayor bloomberg's desk in two

he has used his moral authority as a former omb director to say the super committee needs to look at entitlements and raising revenues and stay away from discretionary spending, including defense. >> it sounds as though there is another showdown coming between the senate democrats and house republicans over defense authorization. >> it was stunning to hear him say he would rather see no bill at all. this would mark half a century this year. he would rather see no bill than have these two provisions get stripped out of the house. the senate has not finished their billion. we're just projecting the senate will not be near the house on these two issues. one is same-sex marriages, which he and his colleagues are very much opposed to in the military. the other set of issues is connected to how detainees are prosecuted and tried. >> i was a bit surprised that they would like to revisit the debate over don't ask, don't tell. the senators have shown no interest in doing that. the detainee issue is one where they believe the polls are on their side. there are indications that is true. most am

of the program that has been dhsloped by tgsagsa, omb and encourages looking at those applications. i think you will see private clouds, particularly for the moderate risk applications, but there are many applications that are suitable for the cloud today. the public cloud offers all the benefit. i think it is good to make that evaluation of private versus public. in the case of dhs, they chose private for the initial. it does not mean all their applications will end up there. guest: i wanted to ask you about, for example, one of the major cloud service providers and that is google. about a year ago, they published a blog saying hackers had compromised their system and had stolen some intellectual property in the process, and that attack had stemmed from china. so if google is able to be breeched and google is offering an array of cloud services, not just google, but other well-known, innovative tech companies are providing cloud the services to the government, is that a concern when you have news of a bridge coming from another country? guest: i think the way to look at this is tha

. >> you were hearing this from omb they may be supporting the taxpayer and then use cited some statute that said you can't do basically you don't have the legal authority that's why you need to consult the department of justice and i think in your e-mail reading from your february 10th e-mail unless other authorities exist, the statute rests with the doj and the authority to accept the compromise of a claim of the u.s. government in those instances where the principal balance of a debt exceeds $100,000 so you specifically said you can't support of the taxpayer unless you have approval from the diprete of justice. >> we were specific on the fact they should go to the department of justice. >> but going to the actual question the next e-mail you got back is could you call me, could you give me a call to discuss? thanks. that's from the department of energy's legal counsel so now we are going off the e-mails. who all were involved in those discussions, not e-mails the actual discussions? was a just the department of energy? was anyone from the white house involved? >> i have no calls from

there is nothing in the documents produced by the doe, the omb, the treasury or the white house that interviewed in the solyndra loan guarantee to benefit a campaign contributor. >> basically, the white house counsel doesn't like the idea of releasing the blackberry messages and. >> constitutionally those are going to be protected there is no chance republicans will get those. let's be honest. >> why if these were all the eternal communications. >> i agree with you. >> on why they would give this company that there was lots of compelling evidence that it was in trouble why they give it a half billion dollars loan wouldn't the blackberry be relevant. >> absolutely. >> when you don't want to release things that makes people go what are they trying to hide? >> on friday the hearings got rather at the timey. of course, the main problem that they were highlighting on friday is that taxpayers were forced to the back of the line. here is what happened? >> recent emails produced by the white house and omb as well as a long chain of others clearly show that numerous members of the obama admin

. >> he worked as an adviser in the reagan white house, omb director and george w.ration and he implemented budget cuts that produced $1 billion in surplus. mitch daniels on his decision not to run for president in 2012 at 8:00 p.m. eastern on c- span's today. >> on friday, president obama honored the recipients of the 2010 medal of science and technology. it is the highest honor bestowed on scientists and innovators. the president discussed the importance of making investments and speeding up the transfer of new ideas from the laboratory to the marketplace. from the east room of the white house, this is 20 minutes. >> welcome, everybody. please have a seat. it is a great pleasure to be with so many outstanding innovators and inventors. and i'm glad we could convince them all to take a day off to accept our nation's highest honor when it comes to honor when it comes to inventions and innovation, and

it's backed up by mary miller who is the deputy assistant to the secretary of treasury sent a memo to ombare you doing, you can't do this. we have the administration not even agreeing with what d.o. d.did, mary miller. >> greta: i saw her august 17th letter, i thought was the weirdest. what she said was, the we have been asking for this stuff for years and didn't get it. this is two weeks before you declare bankruptcy and suddenly this woman sends this letter out she may be absolutely right and legitimate letter, that letter was bothering. >> and she goes back to 2010 e-mail. so she is covering herself, i told you so. where is the evidence to show that you are not doing this. >> greta: and the way the law is broken, in the restructuring, the restructuring allows investors to jump the line and get ahead of taxpayers should the company go belly-up. >> no one should get priority over taxpayers' money. >> greta: is that was that law broken? >> its one sentence law. you cannot subordinate taxpayers to any private investors. here we had $535 million subordinated to two hedge funds one owned by

there's no question without the first stimulus, which is much mall lined, the conservative omb office of manage about the budget has said we would have had a point to two points worse unemployment without the first stimulus. so give the president credit for making sure that things didn't slip over the abyss, number one. number two, we've made progress. the sad part is everyone knows for every billion spent on infrastructure, we create 25,000 jobs. the president in this new stimulus wants to spend $75 billion right away, in the next 18 months. that would create close to 1.6 million new jobs by itself. >> now, e.j., you said this week was a pivot week, this changed the whole conversation going on. what do you mean by that? >> i think where you look at where we were for most of the year. we were talking about the tea party, talking about deficit cutting, an insurgency and resurgence. what you have seen are a number of things. one, the anti-wall street demonstrators have replaced the tea party as the object of our attention, and they're saying the concentrated power is not in wall stre wa

does the omb guidance applied to the state department and its contractors? >> yes, it does. the devil is in the details on how they interpret the words in the guidance. the question is what agencies do with that guidance. the state will perhaps argue to you that we do not do, that what that we do not support d.o.d. who does combat. that is all well and good, but it leads to the conclusion that the embassy in kabul is like it and where and can be guarded by contractors. >> what about combat security in afghanistan? would that be appropriate for contractors under the new guidance. >> security operations as part of a larger integrated armed force. it seems to me they are in direct support of combat operations. >> i want to thank each and everyone of you. >> one thing is getting lost that we do not want to get lost. inherently governmental means the government should do it. it is not inherently governmental does not mean the government should not do it. we look at risk. if the risk is high, we would be leaning toward suggesting that a government do it. what is disconcerting abou

obama administration, from the most senior levels in the west wing, down to the career professionals at ombd doe, knew that solyndra was a bad bet that was defend continued to fail. >> the department of energy violated the law when they agreed to subordinate the taxpayers' money to private investors, some of whom appear to be heavy contributors to president obama's campaign. >> it's inconvenient, boo-hoo. i think what happened is the department of energy made a bad loan, they realize it had and they were trying to figure a way to cover-up the fact not that they had done anything illegal, but that they had made a bad loan and they went and broke the law. >> and david prenn, who is a cofounder of the boston based investment form rockport capital, who is also serving as a green energy advisor to the president at the time, may have been the first one to push the administration for the half billion dollar loan for excellent draw, all the time while he held a stake into the company. and to explain the president's latest scapegoat strat strategy, the one and only charles. >> and as wes get more an

>> the president and cass sunstein, who runs this effort at omb, have undertaken a comprehensive review of the existing body of regulation and announced a series of changes to regulations, designed to get regulations smarter and reduce the burden where we can. i am completely supportive of that, and i am sure there is a whole range of work we can do in that area. it is absolutely true that because if health care reform -- because of health care reform, financial reform, the changes we are making, we are changing basic protections that americans depend on, and business depends on, across the country but change in that context is things that people just to, but if you look at the evidence -- senator snowe, when you quoted me last week, i was quoting your republican economist chris barlett -- it is hard to find evidence that regulation is having material effect on growth at all. the evidence he cited -- is worth looking at this -- if you look at profitability, employment, in the sectors of the economy where there has been the most reform -- in mentioned -- i mention three of those areas --

and steve spinner is that man and quote, any word from omb, the white house breathing down my neck on this, getting itchy to get involved if needed, i don't want that, steve. and the e-mail vase that it had intimate knowledge and knew what was going on and the republicans are not pleased and saying that doj, some in the administration thought the department of justice needed to approve the loan because it might be illegal, but the department of energy went ahead with it anyway. >> jamie: awful lot of people involved. every time we learn a new development and how are republicans responding to it specifically. >> reporter: well, congressman fred upton and cliff sterns from the energy and commercial committee shows the west wing and their, the deep pocket donors of the-- to president obama are disturbingly close and they said, quote, when asked about solyndra this week, president obama proudly proclaimed solyndra went through the regular review process and people felt like this was a good bet. the facts say otherwise, but if solyndra is evidence of obama's regular review process, when we

in it she writes, quote: there is nothing in the documents produced by doe, department of energy, omb, the office of manage and budget. treasury or the white house that the white house intervened in the solyndra loan guarantee to benefit a campaign contributor, a classic struggle. congress wanting more information, the executive branch sometimes not wanting to give everything up, also today in that hearing, a lot of scrutiny about the department of energy's actions as it relates to solyndra, take a listen. >> to your knowledge, do you believe today that the department of energy should have sought department of justice approval? >> yeah. i have said that i believe that it would have been wise for them to seek department of justice approval. >> and that point is related to the department of energy reworking the solyndra loan to essentially make sure that private investors in solyndra would get paid back before federal taxpayers, trace? >> trace: mike, is there any sign this investigation might be coming to a close any time soon? >> not at all. as you said at the top, there are some demo

what they do is they give a break to government contractors and in addition to that, they order the ombo come up with $30 billion of more cuts to domestic discretionary. that's fbi, that's the border patrol, that's education, that's roads. that's what they're doing. >> they're going to cut fbi, they're going to cut law enforcement, they're going to not vote and continue philly brus tering on first responders and teachers. so if they had their way tonight, senator boxer, you're telling the american people it would be a net loss of 600,000 yet they say they want to create jobs. >> that's what i'm saying. but this started even before the obama jobs bill. i stood on the floor on my feet for two days with the economic development act which would have meant a great number of -- half a million jobs over a period of time. and it's a program that's been in place almost forever. and they filibustered that. they filly bustered mary landrieu's small business innovations bill which in the past has helped 19,000 businesses. they did shut down for a period of time the faa, you know that, and they stop

. >> he worked as an adviser in the ronald reagan white tests omb in the bush white test and implement its that because that produced a $1 billion budget surplus. sunday night, mitch daniels on his new book on "q &a" at 8:00. >> this morning richard cohen has the latest on the deficit reduction committee and efforts to reach a deal by late november. kea susanting talks about credit card debt and counseling programs for consumers and late jo,an schaffner discusses how states deal with the ownership of the exotic animals as well as welfare and safety concerns. "washington journal" is next. "washington journal" is next.

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. >> he worked as an adviser in the reagan white house, the george bush administration's omb, and heduced a billion dollar budget surplus. tonight, which daniel on the economy and his decision to not run for president. that is 8:00 eastern on "q&a." >> watch more video on the candidates, track the latest campaign contributions on the c- span campaign website for 2012. easy to use, with candidate bios and the latest polling data. plus, links to partners in the early primary caucus states. >> every weekend, let the c- span network speed your source for public affairs. politics and public affairs events. the latest nonfiction books and authors. american history 3, showcasing the people and events that shaped our country. the c-span networks, washington your way. >> "washington journal" continues. host: we want to welcome back to c-span daniel serwer, scholar and professor at the johns hopkins school of international studies. thank you so much for being with us. guest: my pleasure. host: i want to focus on the washing -- "the washington post ," headline. just one of the many obstacles fa

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