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The government’s worst 2013 spending decisions

2013_12_government-waste Healthcare.gov, federal employees who weren’t working but still got paid and home loans are identified as the worst spending decisions of 2013. (Image: iStockphoto)

As the year comes to a close, Sen. Tom Coburn, R-Okla., released his 2013 “Wastebook”— a list of the top 100 wasteful spending decisions that cost the government $30 billion in the last year.

Coburn identified the top costliest spending faux pas as the $379 million healthcare.gov website, the $400 million spent on paying federal employees to do nothing during the government shutdown, and the $500 million in home loans for people to purchase property in Hawaii.

“Collectively, these cost nearly $30 billion in a year when Washington would have you believe everything that could be done has been done to control unnecessary spending,” Coburn said in the report. “Had just these 100 been eliminated, the sequester amount would have been reduced nearly a third without any noticeable disruption.”

In the last year, the Agriculture Department’s home loan program, which is meant to aid rural areas, issued nearly 166,000 loan guarantees. More than 100 of those were for $500,000 or more to buy homes in Hawaii. When these homes foreclose, it costs the government millions of dollars. According to the USDA Office of the Inspector General, the government paid $496 million in loss claims in fiscal year 2013.

The waste Coburn described as “paid to do nothing” refers to the more than 100,000 federal employees who during the shutdown were deemed non-essential but still received pay. Each of those workers was paid $4,000 during the 17 days the government was closed. In addition, in a sampling of three agencies, more than 35,500 employees were earning more than $100,000, were furloughed for performing non-essential duties, and then paid for not performing those duties.

“It is truly unfair to charge billions of dollars to pay others not to work to taxpayers working to cover their own bills and the bills of the government,” according to the “Wastebook.” “This is especially true when the non-essential federal employee is being compensated more than twice the average U.S. family income of $51,000.”

Coburn also used the “Wastebook” to highlight healthcare.gov as a waste of taxpayer dollars.

States are spending millions of dollars to promote sign-up for the Affordable Care Act, and according to Associated Press data, the total cost for promoting “Obamacare” nationally will be at least $684 million. Building the website is estimated at $319 million so far.

The lesser-known spending decisions Coburn identified as wasteful include:

Surveillance critic Bruce Schneier leaving BT

Noted cryptographer Bruce Schneier, who’s been a vocal and active opponent of the domestic surveillance operations of the U.S. and British governments, is leaving long-time employer BT (formerly British Telecom), FedScoop has confirmed.

News of his departure comes six weeks after FedScoop first ran a story investigating the potential conflict of interest between Schneier’s role as an executive with a government contractor and his public role assisting journalists at the Guardian newspaper to study and understand the technical details of the information contained in the thousands of pages of classified U.S. and U.K. documents stolen by former NSA contractor Edward Snowden.

Bruce Schneier. (Credit: www.schneier.com) Bruce Schneier. (Photo: www.schneier.com)

Schneier confirmed his departure in an email to FedScoop, but said “contrary to rumors, this has nothing to do with the NSA or GCHQ.”

BT would only confirm Schneier “is leaving BT at the end of December 2013.” The company declined to answer FedScoop’s questions about potential legal or business troubles stemming from Schneier’s active participation in the Snowden affair and his public calls for others with access to classified information to leak more data.

“No, BT wasn’t always happy with my writings on the topic, but they knew that I am an independent thinker and they didn’t try to muzzle me in any way,” Schneier said in an email. “I’m just ready to leave. I have spent seven years at BT, and seven years at Counterpane Internet Security, Inc. before BT bought us. It’s past time for something new.”

Schneier is a noted cryptographer often quoted by reporters writing about cybersecurity. He has done a fair amount of writing himself, including publishing a popular blog, a newsletter called Crypto-Gram and several books. But lately, Schneier has been quite vocal about the NSA surveillance programs. Not only has he entered into a contract with the Guardian to help that newspaper understand the leaked classified NSA documents, but he has launched an all-out lobbying campaign to, in his words, take the Internet back and dismantle the surveillance state.

“If you have been contacted by the NSA to subvert a product or protocol, you need to come forward with your story,” Schneier wrote in an editorial published Sept. 5 in the Guardian. “If you work with classified data and are truly brave, expose what you know. We need whistleblowers,” he wrote, characterizing such actions as a “form of civil disobedience.”

But while Schneier may be a respected security commentator, he’s also been serving as the so-called “security futurologist” at BT, which in 2006 acquired Counterpane Internet Security Inc., the company Schneier founded. Counterpane’s former website now points to BT’s Global Services website. Documents on the company’s website list nearly a dozen federal agencies, including the Defense Department and the Transportation Security Administration, as longtime customers of BT’s secure videoconferencing solutions and other security technologies. The company also lists multiple General Services Administration contract vehicles and purchasing options.

Security and legal experts told FedScoop in October that Schneier’s work with the Snowden documents and his public calls for more leaks could lead to a series of legal problems for BT in both the U.S. and Great Britain.

In response to FedScoop’s story in October, BT said in a statement “the views Bruce expresses on his blog are his own and have nothing to do with BT.”

“As to what comes next,” Schneier wrote, “answer, cloudy; ask again later.”

Obama tries to reassure tech CEOs on NSA, privacy

President Barack Obama today met with the chief executive officers of several leading technology firms to discuss major technology policy issues from health care to Internet privacy and security.

Executives from some of the nation’s largest technology companies, including Google, Facebook, Twitter, Microsoft and Yahoo, among others, met with Obama and Vice President Joe Biden in the Roosevelt Room to exchange ideas on improving the capabilities and capacity of healthcare.gov, streamlining the federal IT procurement process and the economic impact stemming from the revelations of NSA electronic eavesdropping around the world.

“This was an opportunity for the president to hear from CEOs directly as we near completion of our review of signals intelligence programs, building on the feedback we’ve received from the private sector in recent weeks and months,” the White House said in a statement. “The president made clear his belief in an open, free and innovative Internet and listened to the group’s concerns and recommendations and made clear that we will consider their input.”

2013_08_Edward_Snowden-2 Former NSA contractor Edward Snowden. (Photo: Praxis Films)

Many of the companies attending the meeting have urged the administration to impose greater restrictions on NSA and have warned that the government’s data surveillance programs may make it more difficult for U.S. technology firms to compete in the global marketplace.

The companies are required by law to turn over data to the government when presented with a valid court order. But they are also barred from discussing the requests or even acknowledging the existence of such requests publicly.

Documents leaked by former NSA contractor Edward Snowden have revealed the existence of a massive data and telephone metadata collection effort involving millions of Americans. Several Internet companies have announced plans to encrypt their data links in an effort to reassure users of the privacy of their personal communications and browsing history.

FedWire: Feds going above and beyond, launching planes from submarines

2013_04_fedwire2001FedWire is FedScoop’s afternoon roundup of news and notes from the federal IT community. Send your links and videos to tips@fedscoop.com.

Radio is still cool in the Army.

SAVE Awards announce their final four.

NASA pondering space walks.

Advice on getting a defense contract.

Staffing for digital preservation.

How to launch a plane from a submarine.

Coast Guard’s top 10 videos of 2013.

Here is a teaser video:

Former Microsoft exec tapped to replace Jeff Zients

2013_12_kurtdelbene Kurt DelBene will lead and manage healthcare.gov. (Photo: Microsoft)

There’s a new lead man running healthcare.gov.

Kathleen Sebelius, secretary of the Department of Health and Human Services, announced today Kurt DelBene will be Jeff Zients’ successor and also serve as Sebelius’ senior adviser.

DelBene most recently served at president of the Microsoft Office Division and will start his new role in government tomorrow.

In the blog post, Sebelius said DelBene will be working closely with her, the White House and the teams and senior leadership at HHS and the Centers for Medicaid and Medicare Services, as he leads and manages healthcare.gov.

DelBene has agreed to serve in this role for at least the first half of 2014.

“Because of the site’s progress, his responsibilities, while similar to Jeff’s, will reflect an evolution of focus as we move on to the next phase,” Sebelius said.

DelBene will be working and consulting with CMS Administrator Marilyn Tavenner and QSSI, the general contractor for healthcare.gov. One of his main focuses will be to ensure the website runs smoothly and is functional through the open-enrollment deadline of March 31, 2014.

“The president and I believe strongly in having one person, with strong experience and expertise in management and execution, who is thinking 24/7 about healthcare.gov,” Sebelius said.

Jeh Johnson confirmed for top DHS post

The Senate last night confirmed Jeh Johnson to be the next secretary of homeland security.

The 78-to-16 vote makes the former Pentagon lawyer the fourth leader in the short history of the Department of Homeland Security.

2013_10_JehJohnson_DODPhoto Jeh Johnson at a Pentagon press briefing. (Photo: Defense Department)

Johnson, 56, is a native of New York and was in Manhattan on Sept. 11, 2001, an experience he credited with helping him make the decision to accept the job as DHS secretary.

“I was not looking for this opportunity,” Johnson said during a Rose Garden press briefing during which President Barack Obama announced his nomination. “But when I received the call, I could not refuse it. I love this country. I care about the safety of our people.”

Obama has credited Johnson with helping to design and implement many of the policies that help keep the United States safe. “He’s been there, in the Situation Room, at the table,” Obama said, describing Johnson as a cool and calm leader.

Senate Homeland Security and Governmental Affairs Committee Chairman Tom Carper (D-Del.) characterized Johnson as a strong leader who is well-prepared for the challenges that await him at DHS.

“He brings experience from the public and private sectors, as well as an impeccable character,” Carper said in a statement issued shortly after the Senate vote.

At DOD, “he was a major player in the management team that ran the Defense Department … giving him invaluable experience for the huge task to which he has been nominated,” Carper said.

During his confirmation process, Johnson has received bipartisan support and letters of recommendation from all three former DHS Secretaries Tom Ridge, Michael Chertoff and Janet Napolitano.

Guest column: Wearable technology, shareable data

2013_12_nigel Nigel Ballard, director of federal marketing at Intel.

Nigel Ballard is Intel’s director of federal marketing and a FedScoop contributor. 

You’ve probably read at least a dozen times already that the so-called wearable segment will be huge in 2014. From my vantage point, such as it is, I see a mad scramble from vendors known and unknown to get into this space. Why? Because it’s a new market sector, there’s everything to gain and the field is green and wide open. You don’t have to prove yourself up against any of the big brands because as of today, nobody has a controlling interest.

Innovation plus venture capital funding beats or has the potential to beat the Fortune 100 tech companies. There’s no rule book regarding what makes a successful wearable product, and it’s too early to call any of them a flop.

Glass

The highest-profile wearable today is the ambitious Google Glass, which isn’t even shipping yet. I count myself among those Glass Explorers, but as I write this, mine sit on the table behind me. Why? I’m more pragmatist than enthusiast when it comes to doing actual work as opposed to just geeking out. Glass is fun, “trick” and has promise, but I wear glasses, have astigmatism and happen to believe that today, and for mass-market appeal, a wearable device on your wrist makes way more market sense than one on your head.

Blog

I have a personal blog on my website at http://www.joejava.com, and I used to have a Google Glass page there. But I tired of reporting endless stories about how Glass was going to “change the way be build cities” (sic). And so I swizzled it to a wearable page, and my, how the visitors grew. Their domains show me they are indeed largely made up of those Fortune 100 companies. This space is hot and hopping!

Cupertino time

Everybody outside Apple knows, or thinks they know, that an iWatch is coming, we just don’t know what it will feature and when it will arrive. The smarter money is on a curved touch glass design with wireless charging. They’re probably waiting for the Bluetooth 4.1 specification to get fully baked before they commit to production silicon. Knowing Apple, it won’t just be the assembly of other people’s chips and screens; there will be that certain something or somethings that will separate it from the mass of lookalike products that will surely pour out of Asia within in a few short months of its availability.

Made in Vietnam?

Apple has had leak problems of late; casings from the 5S and 5C were all over the interwebs months before the official launch. This bodes well for Vietnam, which has better, (read, lower) labor rates than China. Vietnam is also a dexterous nation and it promises not to kiss and tell.

24/7 fitness

Where are the wearables today? That would be the fitness and wellness market. Clips, straps or bangles that record your steps (activity) just like the pedometers of yesteryear, but in a much sexier hi-tech way. The better ones incorporate altimeters and fancy displays and do other things like analyze your activity. Every article I’ve read seems to claim one or another is the victor, so there’s no agreement on which is tops right now. I’ve owned and used two; both have inherent strengths and weaknesses befitting a burgeoning product segment.

The fitness do-dat you wear today will be old hat in none month’s time. That, my friends, is how life is on the technology bleeding edge. To tote the latest toys, you have to accept some rough edges. Nothing is perfect, but then again, nothing in life ever is. So, suck up the shortfalls and show off your new gadget at the water cooler and do it quickly!

So, what am I going to do when the iWatch or rumored Google watch appears? I already have a Nike FuelBand SE on my wrist; do they expect me to wear the watch on the other wrist? Wrong. Tout le manufacturers better combine the recording features of the fitness band with the “don’t-need-to-remove-your-phone-from-your-pocket” alerting, incoming call screening, automatic timezone setting convenience of the SmartWatch into a single product, otherwise I’d call that a big fat fail. I’m looking for a twofer here!

Sharing is caring

Now, I get to reuse the title of my article: They aren’t only wearable, they’re shareable, and that’s almost as important as the measuring of your Himalayan trek to Safeway’s and back. Now, you must share the sweat (steps) with your social network. If you’ve done really well, then you get to feel superior. If you’ve done really poorly, then you get to shame yourself in public, but best of all you get to compete against your friends and co-workers. And that truly healthy competition is what ultimately drives many of us to do better, eat healthier, be a bit thinner, walk farther than our friends and WIN. Hey, whatever it takes to shed the weight, right? #WINNING

I’m walking the long way round into 2014, I hope to see you there, and regarding my daily step count, if you show me yours, I’ll show you mine.

Happy holidays!

Mongo DB Federal’s Will LaForest on open source trends

Will LaForest, senior director at Mongo DB Federal, highlights some of the open source trends in this FedScoopTV interview.

DHS expands student volunteer program in cybersecurity

The Department of Homeland Security today announced the launch of the 2014 Cyber Student Volunteer Initiative for college students, opening up new opportunities at five additional DHS components as well as state and local fusion centers around the country.

Created in April 2013 as part of the Secretary’s Honors Program, the Cyber Student Volunteer Initiative offers college students hands-on experience and exposure to the cybersecurity work performed by DHS cybersecurity professionals. The program is specifically designed for current college students pursuing a program of study in a cybersecurity-related field.

In a statement, DHS said more than 100 unpaid positions have been made available in more than 60 DHS field offices across the country. Participants will perform a broad range of duties in support of DHS’ cybersecurity mission, from cyber-threat analysis to digital forensics to network diagnostics and incident response. Student volunteers will begin in spring 2014 and participate throughout the summer.

“DHS is excited to continue the Secretary’s Honors Program Cyber Student Volunteer Initiative and expand it to additional DHS offices and locations while increasing our engagement with students in the important cybersecurity work DHS does every day,” said Rand Beers, DHS acting secretary. “Providing these opportunities across the department is a vital step in our efforts to cultivate the next generation of cybersecurity leaders and to attract the best and brightest cyber talent who are looking to pursue a career in public service.”

The program originally provided assignments at U.S. Immigration and Customs Enforcement Homeland Security Investigations computer forensics labs and state and major urban area fusion centers. This year, however, DHS is expanding the program to include new opportunities at the U.S. Secret Service, the U.S. Coast Guard, the Transportation Security Administration, the Office of Intelligence and Analysis, the DHS Office of the Chief Information Officer, and additional state and more than 60 major urban area fusion centers and ICE labs.

The SHP Cyber Student Volunteer Initiative was created in response to the Homeland Security Advisory Council’s Task Force on CyberSkills, which last year released 11 detailed recommendations on how government can recruit and retain the thousands of cybersecurity professionals needed in the coming years.

Despite roadblocks, expectations high for FITARA in 2014

The Federal Information Acquisition Reform Act may have been extracted from the National Defense Authorization Act, but the bill meant to overhaul government IT procurement is far from dead.

In fact, folks on Capitol Hill are saying there’s a good chance FITARA will see new movement in the near future.

Co-sponsored by Reps. Gerry Connolly, D-Va., and Darrell Issa, R-Calif., FITARA was tacked on as an amendment to the defense bill. The bill is still awaiting action in Congress, but when the House Armed Services Committee met over Thanksgiving recess and decided on a final draft of the bill, FITARA was left out.

However, Connolly says there’s reason to hope.

“There may be a silver lining to this,” Connolly said in an emailed statement to FedScoop. “In March, FITARA was favorably reported out of committee with unanimous support as a standalone bill, in addition to being unanimously passed by the entire House as an amendment to NDAA in June. Thus, we are confident FITARA carries the broad, bipartisan support that will enable it to be expeditiously advanced through the House.”

FITARA, or H.R. 1232, would reform the laws governing the management and procurement of IT in federal government. Specifically, the bill would establish a center to coordinate the acquisition of IT products, increase authority of the agency chief information officer and the CIO Council, and require additional analysis and reports by federal agencies.

“The federal government needs to be able to build cutting-edge, 21st-century computer systems, but right now we are hobbled by laws written in the days of floppy disks and telephone modems,” Sen. Tom Udall, D-N.M., said in an emailed statement to FedScoop. “We desperately need to modernize the law and especially to incorporate flexibility and accountability.”

According to a Nov. 12, 2013, Congressional Budget Office report, implementing FITARA from 2014 to 2018 would cost more than $145 million. “CBO estimates, however, that any net increase in spending by those agencies would not be significant,” the report said. “Enacting the bill would not affect revenues.”

The CIO section of the bill specifically would cost about $50 billion over the 2014-2018 time period, CBO estimates. It would grant CIOs the authority to hire additional staff, expand the role and responsibilities of the CIO Council as well as the analysis process to justify governmentwide IT procurements.

According to a Hill staffer close to the issue, morale for FITARA is high. The language for the bill has already passed in the House.

“There’s a good cohort of senators behind this bill,” the staffer said. “The fact that they’re interested in these issues is a great surprise.”

Sen. Jeanne Shaeheen, D-N.H., who’s on the Senate House Armed Services Committee, has indicated she wants FITARA pushed forward. The staffer said it will come down to figuring out a version of FITARA most members of Congress share views on and has buy-in for most stakeholders.

“The bottom line is that there is an influential group of members from both sides of the aisle that share the same goals with respect to enhancing how government procures, develops and deploys technology,” Connolly said. ”I am confident that for the first time in nearly two decades, we can work together to fundamentally strengthen federal IT management.”

Connolly also said moving FITARA must be a priority for Congress when it reconvenes in the new year.

His colleague Udall expressed disappointment the amendment was dropped from the defense bill, but said he is “considering the next step forward.”

“This issue needs to be a priority, and as chairman of the Financial Services and General Government Appropriations Subcommittee, I look forward to continuing to work for reforms with my colleagues on both sides of the aisle,” he added.