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[House Report 115-916]
[From the U.S. Government Publishing Office]

115th Congress   }                                   {         Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                   {         115-916

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     TSA OPPORTUNITIES TO PURSUE EXPANDED NETWORKS FOR BUSINESS ACT

                                _______
                                

 September 4, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. McCaul, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 6459]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 6459) to amend the Homeland Security Act of 2002 
to require a strategy to diversify the technology stakeholder 
marketplace regarding the acquisition by the Transportation 
Security Administration of security screening technologies, and 
for other purposes, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     2
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
New Budget Authority, Entitlement Authority, and Tax Expenditures     3
Congressional Budget Office Estimate.............................     3
Statement of General Performance Goals and Objectives............     4
Duplicative Federal Programs.....................................     4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     5
Federal Mandates Statement.......................................     5
Preemption Clarification.........................................     5
Disclosure of Directed Rule Makings..............................     5
Advisory Committee Statement.....................................     5
Applicability to Legislative Branch..............................     5
Section-by-Section Analysis of the Legislation...................     5
Changes in Existing Law Made by the Bill, as Reported............     6

                          Purpose and Summary

    H.R. 6459 seeks to increase industry participation in the 
Transportation Security Administration's (TSA) acquisitions and 
procurements. The bill requires TSA to develop and submit to 
Congress a strategy to diversify the technology stakeholder 
marketplace that TSA relies upon to acquire security screening 
technologies, including by increased participation of small 
business innovators. The strategy shall include specific 
actions the TSA Administrator will take to foster 
diversification within the marketplace and plans for how the 
Administrator may, to the extent practicable, assist a small 
business innovator at certain points in acquisitions processes, 
including by addressing resource limitations. The bill also 
requires a feasibility assessment of increasing TSA engagement, 
through the Department of Homeland Security (DHS) Science and 
Technology Directorate or by TSA setting up its own venture 
capital partnership modeled after the In-Q-tel program, a 
program maintained by the Intelligence Community. Finally, H.R. 
6459 prohibits TSA from lowering security technology standards 
to meet the requirements of the bill and requires the 
Comptroller General to review the strategy TSA submits under 
the bill.

                  Background and Need for Legislation

    Navigating the Transportation Security Administration's 
(TSA) procurement and acquisition process is a complicated and 
lengthy undertaking. Over the years, the Committee has 
repeatedly received testimony from the private sector that 
participating in these processes is an extremely costly 
endeavor for vendors. As a result, businesses with limited 
resources, including innovative small businesses, often find 
themselves at a disadvantage as they may not have the capital 
needed to pursue an acquisition through TSA's lengthy 
processes. Small businesses provide some of the most innovative 
security solutions; greater participation of small business 
innovators in a larger and more diverse marketplace of 
technology stakeholders has the potential to drive greater 
competition and lead to TSA acquiring more effective and 
innovative security solutions. Given the evolving nature of the 
threat to our nation's transportation systems, it is imperative 
that TSA drives technology innovations and procures cutting-
edge security technology. Small businesses have an important 
role to play in helping address and mitigate the wide array of 
threats that TSA faces. As such, the procurement and 
acquisition process must be as fair and accessible as possible.

                                Hearings

    The Committee did not hold a legislative hearing on H.R. 
6459. However, the Committee held a hearing with Department 
officials on November 8, 2017, to discuss TSA's role in keeping 
our transportation systems secure. The Subcommittee on 
Transportation and Protective Security also held a hearing on 
April 27, 2017 entitled ``Checkpoint of the Future: Evaluating 
TSA's Innovation Task Force Initiative''.

                        Committee Consideration

    The Committee met on July 24, 2018, to consider H.R. 6459, 
and ordered the measure to be reported to the House with a 
favorable recommendation, without amendment, by unanimous 
consent.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    The Committee on Homeland Security considered H.R. 6459 on 
July 24, 2018, and took the following votes:
    No recorded votes were requested during consideration of 
H.R. 6459.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
6459, the TSA Opportunities to Pursue Expanded Networks for 
Business Act, would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 31, 2018.
Hon. Michael McCaul,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 6459, the TSA 
Opportunities to Pursue Expanded Networks for Business Act, and 
H.R. 6461, the TSA National Deployment Force Act.
    If you wish further details on these estimates, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

Transportation Security Administration Legislation

    On July 24, the House Committee on Homeland Security 
ordered two bills to be reported related to activities of the 
Transportation Security Administration (TSA):
           H.R. 6459, the TSA Opportunities to Pursue 
        Expanded Networks for Business Act, would require the 
        agency to develop a strategy for diversifying and 
        encouraging participation of small businesses in the 
        marketplace through which TSA acquires security-related 
        technologies; and
           H.R. 6461, the TSA National Deployment Force 
        Act, would establish an office responsible for 
        deploying TSA personnel to provide additional security 
        at airports and other locations and to respond to 
        manmade disasters and other situations.
    Using information from the TSA regarding the costs of 
similar activities, CBO estimates that neither of those bills 
would lead to additional federal spending of more then $500,000 
annually. (Such spending would be subject to appropriation.)
    Neither H.R. 6459 nor H.R. 6461 would affect direct 
spending or revenues; therefore, pay-as-you-go procedures do 
not apply for either bill.
    Neither bill would increase net direct spending or on-
budget deficits in any of the four consecutive 10-year periods 
beginning in 2029, CBO estimates.
    H.R. 6459 and H.R. 6461 contain no intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act.
    The CBO staff contact for this estimate is Megan Carroll. 
The estimate was reviewed by Leo Lex, Deputy Assistant Director 
for Budget Analysis.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, H.R. 6459 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    This legislation amends the Homeland Security Act of 2002 
to require a strategy to diversify the technology stakeholder 
marketplace that the TSA Administrator relies upon to acquire 
security screening technologies. The legislation is intended to 
drive TSA to (1) pursue policies to foster diversification of 
the vendor community on which it relies and (2) partner more 
effectively with small business innovators with promising 
security technologies through acquisitions processes.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of rule XIII, the Committee finds 
that H.R. 6459 does not contain any provision that establishes 
or reauthorizes a program known to be duplicative of another 
Federal program.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                        Preemption Clarification

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 6459 does 
not preempt any State, local, or Tribal law.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 6459 would require no 
directed rule makings.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    This section provides that this bill may be cited as the 
``TSA Opportunities to Pursue Expanded Networks for Business 
Act'' or the ``TSA OPEN for Business Act''.

Sec. 2. Strategy

    This section requires TSA to submit a strategy to diversify 
the technology stakeholder marketplace, including by increasing 
the participation of small business innovators, to the 
Committee on Homeland Security of the House of Representatives 
and the Committee on Commerce, Science, and Transportation of 
the Senate.
    This strategy shall evaluate how current solicitation, 
testing, evaluation, piloting, acquisition, and procurement 
processes impact the Administrator's ability to acquire 
innovative technology from stakeholders, including small 
businesses, who have not previously done business with TSA. 
Furthermore, the strategy will outline specific actions TSA 
will take to foster diversification within the technology 
stakeholder marketplace, including modifications to existing 
acquisition policies and processes.
    The strategy will also include plans for how TSA may assist 
small business innovators throughout the acquisition process. 
For example, the strategy shall include a feasibility 
assessment of partnering with non-profit organizations to help 
provide small business innovators with the resources needed to 
commercialize their homeland security technology solutions. In 
addition, the assessment shall explore the possibility of 
utilizing a venture capital partnership between the private 
sector and the intelligence community to help businesses 
commercialize innovative security-related technologies. To do 
so, TSA may either establish an organization, modeled after the 
In-Q-tel program, or increase its engagement with the In-Q-tel 
program, either directly or through the Science and Technology 
Directorate at DHS. Finally, nothing in the section shall be 
construed as requiring TSA to lower the standards for security 
technology.
    One year after the submission of the strategy, the 
Comptroller General of the United States shall submit a review 
to Congress that addresses how the strategy TSA developed 
resulted in increased participation of small business 
innovators and diversified the technology stakeholder 
marketplace.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                     HOMELAND SECURITY ACT OF 2002

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Homeland 
Security Act of 2002''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title; table of contents.

           *       *       *       *       *       *       *

                   TITLE XVI--TRANSPORTATION SECURITY

           *       *       *       *       *       *       *

     Subtitle B--Transportation Security Administration Acquisition 
                              Improvements

           *       *       *       *       *       *       *

Sec. 1617. Diversified technology stakeholder marketplace.

           *       *       *       *       *       *       *

TITLE XVI--TRANSPORTATION SECURITY

           *       *       *       *       *       *       *

    Subtitle B--Transportation Security Administration Acquisition 
Improvements

           *       *       *       *       *       *       *

SEC. 1617. DIVERSIFIED TECHNOLOGY STAKEHOLDER MARKETPLACE.

  (a) In General.--Not later than 120 days after the date of 
the enactment of this section, the Administrator shall submit 
to the Committee on Homeland Security of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate a strategy to diversify the 
technology stakeholder marketplace that the Administrator 
relies upon to acquire security screening technologies, 
including by increased participation of small business 
innovators.
  (b) Contents.--The strategy required under subsection (a) 
shall include the following:
          (1) Information on how Administration solicitation, 
        testing, evaluation, piloting, acquisition, and 
        procurement processes impact the Administrator's 
        ability to acquire from a technology stakeholder, 
        including a small business innovator, that has not 
        previously provided technology to the Administration, 
        an innovative technology or capability with the 
        potential to enhance transportation security.
          (2) Specific actions that the Administrator will 
        take, including modifications to the processes 
        described in paragraph (1), to foster diversification 
        within the technology stakeholder marketplace, together 
        with information on projected timelines for such 
        actions.
          (3) Plans for how the Administrator may, to the 
        extent practicable, assist a small business innovator 
        at certain points in such processes, including when 
        such an innovator lacks adequate resources to 
        participate in such processes, to help ensure that an 
        advanced technology or capability can be developed and 
        acquired by the Administrator.
          (4) A feasibility assessment of partnering with an 
        organization described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 and exempt from tax under 
        section 501(a) of such Code to help provide venture 
        capital to businesses, particularly small business 
        innovators, for commercialization of innovative 
        homeland security technologies that are expected to be 
        ready for commercialization in the near term and within 
        36 months. In conducting such feasibility assessment, 
        the Administrator shall consider the following:
                  (A) Establishing an organization described in 
                section 501(c)(3) of the Internal Revenue Code 
                of 1986 and exempt from tax under section 
                501(a) of such Code, modeled after the In-Q-tel 
                program, as a venture capital partnership 
                between the private sector and the intelligence 
                community to help businesses, particularly 
                small business innovators, commercialize 
                innovative security-related technologies.
                  (B) Enhanced engagement, either through the 
                Science and Technology Directorate of the 
                Department of Homeland Security or directly, 
                with the In-Q-tel program described in 
                subparagraph (A).
  (c) Rule of Construction.--Nothing in this section may be 
construed as requiring changes to the Transportation Security 
Administration standards for security technology.
  (d) Definitions.--In this section:
          (1) Intelligence community.--The term ``intelligence 
        community'' has the meaning given such term in section 
        3(4) of the National Security Act of 1947 (50 U.S.C. 
        3003(4)).
          (2) Small business concern.--The term ``small 
        business concern'' has the meaning described under 
        section 3 of the Small Business Act (15 U.S.C. 632).
          (3) Small business innovator.--The term ``small 
        business innovator'' means a stakeholder that is a 
        small business concern that has an advanced 
        transportation security technology or capability.

           *       *       *       *       *       *       *

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