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115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-916
======================================================================
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.
* * * * * * *
[all]
