U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

For sale by the Superintendent of Documents, U.S. Government Printing Office

Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800

Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001

75–476 PDF 2002

S. Hrg. 107–155

NOMINATION OF DANIEL R. LEVINSON

HEARING

BEFORE THE

COMMITTEE ON

GOVERNMENTAL AFFAIRS

UNITED STATES SENATE

ONE HUNDRED SEVENTH CONGRESS

FIRST SESSION

ON THE

NOMINATION OF DANIEL R. LEVINSON TO BE INSPECTOR GENERAL OF

THE GENERAL SERVICES ADMINISTRATION

JULY 31, 2001

Printed for the use of the Committee on Governmental Affairs

(

(II)

COMMITTEE ON GOVERNMENTAL AFFAIRS

JOSEPH I. LIEBERMAN, Connecticut, Chairman

CARL LEVIN, Michigan

DANIEL K. AKAKA, Hawaii

RICHARD J. DURBIN, Illinois

ROBERT G. TORRICELLI, New Jersey

MAX CLELAND, Georgia

THOMAS R. CARPER, Delaware

JEAN CARNAHAN, Missouri

MARK DAYTON, Minnesota

FRED THOMPSON, Tennessee

TED STEVENS, Alaska

SUSAN M. COLLINS, Maine

GEORGE V. VOINOVICH, Ohio

PETE V. DOMENICI, New Mexico

THAD COCHRAN, Mississippi

ROBERT F. BENNETT, Utah

JIM BUNNING, Kentucky

JOYCE A. RECHTSCHAFFEN, Staff Director and Counsel

MICHAEL L. ALEXANDER, Professional Staff Member

JASON M. YANUSSI, Professional Staff Member

HANNAH S. SISTARE, Minority Staff Director and Counsel

ELLEN B. BROWN, Minority Senior Counsel

WILLIAM M. OUTHIER, Minority Investigative Counsel

JOHANNA L. HARDY, Minority Counsel

DARLA D. CASSELL, Chief Clerk

(III)

C O N T E N T S

Opening statements: Page

Senator Lieberman ........................................................................................... 1

Senator Thompson ............................................................................................ 2

WITNESS

THURSDAY, JULY 31, 2001

Daniel R. Levinson to be Inspector General of the General Services Administration ................................................................................................................... 3

Prepared statement .......................................................................................... 9

Biographical and financial information .......................................................... 14

Pre-hearing questions and responses .............................................................. 22

(1)

NOMINATION OF DANIEL R. LEVINSON TO BE

INSPECTOR GENERAL OF THE GENERAL

SERVICES ADMINISTRATION

TUESDAY, JULY 31, 2001

U.S. SENATE,

COMMITTEE ON GOVERNMENTAL AFFAIRS,

Washington, DC.

The Committee met, pursuant to notice, at 2:30 p.m., in room

SD–342, Dirksen Senate Office Building, Hon. Joseph I.

Lieberman, Chairman of the Committee, presiding.

Present: Senators Lieberman and Thompson.

OPENING STATEMENT OF CHAIRMAN LIEBERMAN

Chairman LIEBERMAN. The Committee will come to order. We are

here this afternoon to consider the nomination of Daniel R.

Levinson to be the Inspector General of the General Services Administration. Mr. Levinson, welcome to the Committee. I know that

having been confirmed previously by the Senate for the position of

Chairman of the Merit Systems Protection Board, you are no

stranger to these arcane proceedings. Hopefully, we can move with

dispatch today.

As you already know, the IG’s position at GSA is very important

to the overall operation of our government. GSA is one of only

three executive agencies with government-wide responsibility. It is

the Federal Government’s central management agency for administrative services and its activities are vital to the ability of all agencies to achieve their respective missions. GSA’s anticipated budget for fiscal year 2002 is $18.2 billion, and through its contracting

responsibilities, GSA will directly place another $37 billion in commercial purchases for agencies across the government. The Inspector General’s role is to promote economy, efficiency and effectiveness within GSA and to detect fraud, waste and abuse in the agency’s programs and operations. Given GSA’s relationship with all

Federal agencies, the Inspector General, obviously, is a key player

in ensuring that literally billions of dollars of taxpayer money are

properly managed and accounted for.

The previous IG’s most recent assessment of the major challenges at GSA identifies several issues, which this Committee has

raised through various channels, including under the leadership of

my distinguished predecessor and colleague, Senator Thompson.

They include management controls, information technology solutions, procurement activities, human capital, aging Federal buildings and, perhaps most importantly, the protection of our Federal

2

personnel and facilities. Helping GSA adequately address these

and other areas of concern will be a major challenge of the IG.

Mr. Levinson, I am pleased that you have accepted this challenge

and I look forward to hearing your ideas about how you will address some of these issues. I also look forward, as is the custom of

this Committee, to working closely with you in your capacity as Inspector General, should you be confirmed by the Senate.

Senator Thompson.

OPENING STATEMENT OF SENATOR THOMPSON

Senator THOMPSON. Well, thank you, Mr. Chairman. I, too, want

to welcome Mr. Levinson back into public service and I express my

appreciation to you for scheduling this hearing. Hopefully, we can

act on this nomination and Mr. Levinson can be confirmed before

the August recess. It is important that we get inspectors general

in place to carry out their mission that has been established, as

you said, to promote the economy, efficiency and effectiveness, and

detect waste, fraud and abuse and mismanagement in government

programs and operations.

GSA’s mission, as stated in the fiscal year 2002 budget justification, is to provide policy leadership and expert solutions and services, space and products at the best value to enable Federal

employees to accomplish their missions. This is implemented in a

variety of ways through a variety of organizations, including the

Public Building Service, the Federal Technology Service, the Federal Supply Service and the Office of Government-wide Policy. The

GSA Inspector General will have an opportunity to evaluate these

operations and assist GSA as it seeks to adopt more business-like

practices and streamline its organizations, cut overhead, cut unnecessary costs and re-engineer the processes to deliver quality goods

and services to its customers.

Dan Levinson has served as Chairman of the Merit Systems Protection Board, General Counsel of the Consumer Products Safety

Commission and as Deputy General Counsel at the Office of Personnel Management. He also was in private practice and in academia. I believe that Mr. Levinson has the experience and background to take on these challenges, and I am pleased that after

many years of public service, he is again willing to reenter the public service. He is the kind of person we need giving a portion of his

career to government. I am pleased to see that. Thank you and best

of luck to you.

Chairman LIEBERMAN. Thanks, Senator Thompson.

For the record, Mr. Levinson has submitted responses to a biographical and financial questionnaire, has answered prehearing

questions submitted by the Committee and additional questions

from individual Senators, and has had his financial statement reviewed by the Office of Government Ethics. Without objection, this

information will be made part of the hearing record with the exception of the financial data, which is on file and available for inspection in the Committee’s offices. In addition, the FBI file has been

reviewed by Senator Thompson and me, pursuant to Committee

rules.

3

1The prepared statement of Mr. Levinson appears in the Appendix on page 9.

Biographical and financial information appears in the Appendix on page 14.

Pre-hearing questions and responses appear in the Appendix on page 22.

Mr. Levinson, before we proceed I would like to give you an opportunity to introduce family members that may be with us this

afternoon.

Mr. LEVINSON. Thank you very much, Mr. Chairman. I would

like to introduce my wife, Luna, and sitting next to her—and let

me note that I understand you have among your children a daughter named Hannah.

Chairman LIEBERMAN. I do.

Mr. LEVINSON. To Luna’s right is my younger daughter, Hannah.

Chairman LIEBERMAN. I was already inclined to support your

nomination. I am now more vigorously inclined, yes.

Mr. LEVINSON. To her right is my older daughter, Claire.

Chairman LIEBERMAN. Welcome to all of you. You have a lot to

be proud of.

Mr. Levinson, our Committee rules require that all witnesses at

nomination hearings give their testimony under oath, so would you

please stand and raise your right hand? Do you solemnly swear

that the testimony you are about to give is the truth, the whole

truth and nothing but the truth, so help you, God?

Mr. LEVINSON. I do.

Chairman LIEBERMAN. Thank you. Please be seated. Mr.

Levinson, if you have an opening statement, we would be happy to

hear it at this time.

TESTIMONY OF DANIEL R. LEVINSON 1 TO BE INSPECTOR

GENERAL OF THE GENERAL SERVICES ADMINISTRATION

Mr. LEVINSON. Thank you very much, Mr. Chairman. I want to

begin by noting that my parents were unable to make the trip to

Washington today, but please let me take this occasion to express

my deep love for and continuing gratitude to my father, Gerald

Levinson, and to my mother, Dr. Risha Levinson, of Garden City,

New York.

Especially given this busy period for the Committee and the Senate, I thank you for this opportunity to appear before the Committee this afternoon. I also want to thank the Committee staff for

taking the time to meet with me last week. I have a prepared

statement that in the interest of efficiency—important for a prospective IG—I would ask your consent to have inserted in the

record, and I would be glad to speak briefly and then go right to

your questions.

First, I would like to say that I am grateful to the President for

the honor of this nomination. As this Committee knows well, GSA

is charged by Congress to perform a very big job on behalf of the

American taxpayer. It is the Federal Government’s provider of office space, products, services and technology affecting over $58 billion in transactions. It also is responsible for protecting the life and

safety of employees and public visitors in Federal buildings. The

job of Inspector General is to a great degree defined by the agency’s

mission and charter, and the very large responsibilities placed on

GSA in turn place large responsibilities on its Office of Inspector

General in the performance of its core audit and investigative roles.

4

As I have noted in my prepared statement, I have had the honor

of serving in several senior posts in the Executive Branch over the

course of a 25-year career, and I very much appreciate you and

Senator Thompson noting that service in your introductory remarks. If confirmed, I welcome the major challenge and unique opportunity that this position affords in contributing to the effective

and efficient operations of the Federal Government. As GSA seeks

to improve on the ways in which it carries out its mission, an effective Office of Inspector General must be well-equipped and nimble

to keep up with the pace of change. I commit myself to working

with the agency and with this Committee and the Congress to ensure that GAO’s OIG not only maintains its core abilities to prevent fraud, waste and abuse, but that it serve as a catalyst for

positive change.

I welcome your questions, Mr. Chairman.

Chairman LIEBERMAN. Thank you for that thoughtful opening

statement. I am going to start by asking you certain questions that

we ask of all nominees. First, is there anything you are aware of

in your background which might present a conflict of interest with

the duties of the office to which you have been nominated?

Mr. LEVINSON. No.

Chairman LIEBERMAN. Do you know of anything personal or otherwise that would, in any way, prevent you from fully and honorably discharging the responsibilities as Inspector General of the

General Services Administration?

Mr. LEVINSON. No, Mr. Chairman.

Chairman LIEBERMAN. Do you agree without reservation to respond to any reasonable summons to appear and testify before any

duly constituted Committee of Congress if you are confirmed?

Mr. LEVINSON. Yes, I do.

Chairman LIEBERMAN. Thank you. I have just a few questions.

The first is about e–Government. As you may know, e–Government

is one of my personal priorities here on this Committee. I am convinced that this is one of the keys to creating a more efficient, costeffective and citizen-accessible government, by transferring more of

the government onto the net, but also using information technology

more effectively. I am pleased that you indicated in prehearing

communication with the Committee that if confirmed as IG, you

anticipate an important role for GSA’s Inspector General as e–Government develops. I wonder if you could elaborate briefly on how

you view the IG’s responsibility in this area?

Mr. LEVINSON. Mr. Chairman, I view the entire IT arena as an

extremely important emerging area for activity, certainly by IGs

government-wide, and collectively, through the President’s Council

on Integrity and Efficiency, as well as across agency lines. We must

work to ensure that as the significant investments are made in e–

Government, that they are made with careful thought, both about

how the networks will actually deliver service and how those networks are protected from unauthorized or improper access. It just

so happens that we are meeting on a day when a significant virus

is expected to hit the Internet. This underscores how timely, and

in a sense how timeless, this issue is, that it is not just a matter

of coming up with perhaps one specific fix for any particular probVerDate 11-MAY-2000 10:06 Feb 07, 2002 Jkt 000000 PO 00000 Frm 00008 Fmt 6633 Sfmt 6633 75476.TXT SAFFAIRS PsN: SAFFAIRS
5

lem that may emerge on a particular day, but that, systematically,

we need to be prepared government-wide.

IGs, because of the mission that IGs have, have a unique responsibility to ensure that through their IT audit work, as well as

through their work with PCIE, OMB and GAO, that they work aggressively to make sure that those services are provided with the

appropriate controls.

Chairman LIEBERMAN. I appreciate the answer. I hope you will

not hesitate as you proceed with your work, if it generates thoughts

that you have about how to improve e–Government more broadly,

that you would not hesitate to be in touch with the Committee.

Mr. LEVINSON. Yes, I will. I appreciate that, Mr. Chairman.

Chairman LIEBERMAN. Let me go to the subject of building security. Upgrading the security of Federal buildings continues to be a

major challenge for GSA. In July 1995, GSA launched a multimillion dollar program to strengthen security at 8,300 buildings

under its control. While GSA has made progress, the GAO has reported that GSA cannot pinpoint the program’s exact cost or status.

Also, GSA has not established program outcome measures and,

consequently, does not know the extent to which completed upgrades have resulted in greater security.

I think that effectively monitoring GSA’s progress in this area is

a key challenge that faces you as incoming Inspector General. I

know from my staff that you have expressed a commitment to keep

the issue of security for employees at our Federal buildings right

at the top of your agenda, and I just wondered today if you have

any preliminary thoughts about working with other law-enforcement agencies in this effort.

Mr. LEVINSON. Mr. Chairman, in the most recent semi-annual report of the GSA OIG, it was indicated that there is still a good deal

of work to be done in making more effective the intelligence-sharing program that GSA has been an integral part of. It does strike

me that it would be of key importance, again, to be working across

agency lines, working with the Justice Department, with the Treasury Department, with resources around the Executive Branch to

ensure that the security provided is done in an integrated way.

Going back to my experience, having done Congressional staff

work in Conference on the 1996 anti-terrorism bill, and having had

an opportunity and, indeed, the privilege, of meeting some of the

families of the victims of the Oklahoma City bombing—those instances really bring home in a very personal way how much depends on our ability to address the security needs around the country, and in some respects, around the globe. I do not certainly, this

afternoon, have any quick verbal formula to share with you on

that.

Chairman LIEBERMAN. Understood.

Mr. LEVINSON. But I do think that there could be no more important issue for the agency and for the Inspector General than to ensure that this kind of security issue—certainly computer security

and other security issues are important, but physical security never

take second-place to anything else.

Chairman LIEBERMAN. Absolutely. Thank you. My final question

is on the persistence of waste, fraud and abuse in government. In

your responses to the Committee’s written questions, you shared

6

your belief that waste, fraud and abuse will probably always be

issues of concern to our government. You also indicated that you

would employ expertise in management analysis to gain a more

complete understanding of the relationship between acute problems

and the underlying systemic issues. I thought that was a very interesting statement, and I wonder if you wanted to elaborate on

that a bit today. I am interested whether you have utilized that expertise to address systemic problems at other times in your career

in government.

Mr. LEVINSON. Well, thank you, Mr. Chairman. I certainly was

afforded a wonderful opportunity to address systematic issue as

chairman of the MSPB earlier in my career. There we integrated

the important work of the Board in adjudicating work place due

process cases with the Board’s merit studies function, so that the

studies were informed by the real world experience of individual

disputes in the workplace.

This is, as you know well, a very, very large enterprise. When

you deal with a couple of million people who are exercising such

a broad array of responsibilities, it is an enormous challenge for executive leaders to understand where the synergies are, where you

can pinpoint how a change in a particular system or a change in

a particular management operating method can have a ripple effect

throughout an agency and throughout the Executive Branch. We

certainly tried to do that at the board. More often than not, we

probably were not able to succeed as much as we would like, but

by having the issue presented, I think we laid a very good foundation for better things to happen in the future.

Chairman LIEBERMAN. That is a thoughtful response. Let me just

mention one other observation that we have made on the Committee, which is the inclination of IGs in recent years, not just to

focus on the kind of independent watchdog role by which they have

performed such extraordinary service, uncovering literally billions

of dollars in waste and fraud or abuse, but also in trying to play

a proactive kind of preventive role, to help the agencies avoid the

difficulties in the first place. It seems to me that the challenge—

and I think that is a good step—in combining those functions is obviously—or perhaps I should say so evidently—to be certain that

the independence necessary for the first role as the watchdog is not

compromised by a kind of collegial relationship that might develop

in the second role, of being the preventive, the adviser to

proactively prevent problems. I do not know whether you want to

comment on that or not.

Mr. LEVINSON. I would, Mr. Chairman. It is an interesting issue

that you raise here, and in a sense, I think Congress was struggling with exactly that in 1978, during its consideration of both the

Inspector General Act as well as the Civil Service Reform Act. Coincidentally, the two acts were passed within 24 hours of each

other. I think the language of the IG Act reveals a struggle to incorporate, in one operation, a multi-tasked list of very important

structural duties. I think on the civil service side, there was the

struggle with the Special Counsel and its relationship with the

merit board. And some of the language there is reflected in the IG

Act, as well.

7

The language of the IG statute, codified as an appendix to Title

V, reflects an encouragement to IGs to make the case internally

and to work with the Congress to show how the day-to-day issues

involved in the investigative and audit work draws connections

with important, systematic or structural reforms. The IG needs to

carry that forward, not just do that very important foundation

work with the investigative and audit responsibility, but then to

ensure that the leadership in the agency and the relevant committees of Congress are aware of what systematically the implications

of that audit and investigative work really mean.

Chairman LIEBERMAN. Again, a very thoughtful answer. I do not

have any more questions. I hope that we can put your nomination

on the agenda for a markup that we have this Thursday, and move

it out quickly. It should not be controversial.

I thank you for your willingness to serve the public again in the

Federal Government. I thank your family for their support and acceptance of the fact that you are returning to public service. I say

that on behalf of my wife and children, who are not here today. I

believe we have done it. Every confirmation hearing should go this

well.

The hearing is adjourned.

[Whereupon, at 2:52 p.m., the Committee was adjourned.]

(9)

A P P E N D I X

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

Æ