ADDITIONAL COMMITTEE QUESTIONS

OrganizationalChanges

Question 1: Overthelastseveral years, you have

made some

significant organizationalchangesincludingdownsizing.

Can

youbriefly describe these actions and

what

affecttheyhave had ontheorganization?

Answer: SinceFY 2000,several

new museum

directorsand keyadministrators have beenbroughton boardto sustainthehighstandardsofSmithsonian scholarship; toimprove ourpublicprograms;toaggressively strengthen

management

ofour

human

capital, fiscal, and informationtechnologyresources;

andto overseethe modernization ofour aging buildingsand infrastructure. Those

who

havejoinedthe Smithsonian areexperts intheir fields

who

understand

how

to balance theneeds oflarge, complexorganizations withmanaginglarge

sums

^of taxpayerand private dollarsand are well preparedtoleadthe Institutionintothe 21"Century. They include, forexample, the formerFacilitiesDirectorfrom

NASA who

will oversee ourcapital program;a

new

director oftheFreer Gallery ofArtand ArthurM. SacklerGallery-

who

brings tothe Institution a careerrich inthe research,study,andteachingofAsianartandculture; andthePrincipal Deputy Comptrollerandthe budgetofficerfromthe DepartmentofDefense.

Inaddition to building afirst-rate

management

team, the Institutionhasalso restructured

some

programs and businessprocessestoreduceduplication ofeffort andto improve

management

efficiency.

One

such example,implementedthis fiscal year,

was

outsourcingthe duplicating functionofthe Office ofImaging, Printing and PhotographicServices.

Restructuringandefficiencieshaveresultedinthe elimination of atotal of97 federal positionsinthelastyear.

Most

ofthisreduction

was

taken throughattrition and only 11 staff

members

weredirectlyaffected.

Question 2:

What

do youconsider tob? thegreatest challengefacingthe Smithsonian Institutiontoday?

Answer: Inthelargestsense, ourgreatestchallenge isto bring theSmrthsonian intothe^{2^'^'}century, inallits complexity. This

means

fixingup our buildings, installing uptodatecomputer technology, modernizing ourexhibits,andinstituting

modern methodsofmanagement. Thereal challengeissetting prioritiesto determine

what

canbeaccomplished withina realisticbudget.

We

are vigorously raising

money

inthe private sector, but private contributors arewillingtopayfor only part of thatactivity.

42

Private Fundraising

Question 3: There hasbeena significant

amount

ofcriticisnninthe press about private fundraisingforthe Institution.

Can

youreflect onthiscriticism andtellthe Committee

how

thisadversepublicity isaffectingthe Institution?

Answer: Undeservednegative press tends tohave anadverseimpacton

philanthropy, however,

we

believe thatthepeople, corporations, and organizations committedtothe Smithsonian Institutiontake thelongview andsee thesestories inperspective.Ourfundraising

work

continues withgreatsuccess. Contributions

inthefirst part offiscalyear

2002

exceed

$80

million.

A number

offoundations, individualsandcorporations are currentlyindiscussion with the Smithsonianabout futuregifts.

Question4:

How

would youdescribethegeneralmorale ofSmithsonian employees?

Answer: Smithsonian employees have been concerned fora

number

of yearsabout tightening budgetary constraints thathaveaffected, ifnottheirunits directly, certainlyothersinthe Smithsoniancommunity. In recentyearstherehave been targeted downsizingsand Institution-widebuyouts inFY

1994

and FY 1997.

InselectingSecretarySmall,the BoardofRegentssignaled itsintention to bring stabilityin both

management

andfinances to the Institution, and fromthe beginning Secretary Small has beenvery openabout theneedto evaluate the Institution's programs andrequirements againstavailableresources and core missions. Programs and projectsextraneoustothose core missions

may

be terminatedand costly in-houseservices that can be

more

economically contracted outhave and will beeliminated. And, in keeping with the Administration's government

management

proposal, performance will

become

a keyfocus. Allof thesefactorshaveasignificantimpactonjob security, andmoraleiscertainly affected by the prospectofchange.

However, the Institution hasalso created greateraccesstoitstopmanagers, with opportunities foremployeestoexpresstheirconcerns. Quarterlyemployeesurvey reportsareconductedbyallunits,giving details of training andadvancement opportunitiesand providing a

mechanism

^forgreatlyincreased communications.

Regular

town

meetingsare held forallSmithsonian staffto interface directlywith the Secretaryaboutanyissue regarding the Institution. Both the Secretaryandthe UnderSecretary forAmerican

Museums

and NationalPrograms conductroutine breakfast meetingsthat areopento allSmithsonian staff, givingeveryonean opportunitytodiscussissuesand concerns directly. Thisenhanced communication allows Smithsonian employeesto bea part ofthe solution tolong-terminstitutional problems sothattheycanbe hopeful aboutthe future.

43

ImpactofSeptember 1

Question 5: Specifically

how

havetheeventsofSeptember 11th affectedthe Smithsonian both froma visitationstandpointandyour recentdecision toconduct a reductioninforce?

Answer: ThetragiceventsofSeptember 1^1**"affected theInstitutionin

two

ways:

seriousdrop ^invisitationasAmericansworriedaboutsecurity anda

new

focuson thesecurityof our premises. DuringthefirstquarterofFY

2002

visitorship

was down

approximately

35

percent. This translated into a reduction inrevenue from our business operations - restaurants,theatresandstores. Similarly,asa

consequenceofthe nationwide recession,our magazineadvertising revenue, which

ishistoricallyrelated to the traveland automobileindustries, is also

down

sharply from budget estimates. Withthese sharpdropsin projectedrevenue, the institutionhad nochoice buttoinstitutecost cuttingmeasuresin FY

2002

including a reductionof

209

trustfunded positions.

We

expect these actionsto save $9 millionin FY 2002. Our

new

focusonsecurity attheSmithsonian has causedus to testmagnetometers attheNational Airand Space

Museum,

institute bag searchesofallvisitors,and reevaluateour plansforthestorageofcollections preserved in highlyflammable alcohol.

Question 6:

Was

thedecision to eliminate positionsbasedsolely onthe reduction

invisitation?

Answer: Thedecisiontoeliminate positions

was

drivennotonly by the reduced incomeresultingfromthe declineinvisitation,butalso lost magazineadvertising revenueandthe economicrecession.

Research

Question 7: Recently, theSmithsonian Astrophysical Observatory, the EnvironmentalResearchCenterandtheTropicalResearchInstitute have been singledoutinthescientific and popularpressfortheiroutstandingcontributions to understanding thenatural worldandfor theirservices tosciencethroughoutthe UnitedStates. Giventheirprominence andscientificleadership,

why

^isthe

Smithsonian not requestingany increase forthese researchprograms?

Answer: Thesethree programsareindeed pre-eminentintheirrespectivefields. In addition tothequality ofresearch they perform,theirexcellenceisevidentintheir successin competingforgrants from other institutions. Atthistime, perthe instructions ofthe Committee,

we

are waitingfor thereport ofthe independent ScienceCommission, as well astheseparate studiesunderwayby the National

Academy

of PublicAdministrationand the National

Academy

of Sciences, before addressinganychanges toourscientificresearchprograms.

44

Question8: Forthelastsevenyears, the Smithsonian has requestedfewincreases fortheresearch programs. Considering the factthatthe SmithsonianInstitutionis

considered tobeoneof thegreatestresearchinstitutions inthe world, canyou explain

why

research isconsidered alesser priorityforfunding?

Answer:

We

do not consider researcha lesserpriorityforfunding. However, inthe past several years, ina climate of restricted federal funding, ^ithas been necessary to

make

difficultchoices

among

the

many

competingprioritiesand needs for fundingofthe Institution.Thestate of

many

ofourfacilities, whichrequires additionalfunding to meetthe verylarge backlogof revitalization needs; theneed toaddress additionalsecurityrequirements; the state ofour financial

management

system, whichrequires implementation of a

new

system;and the requirementsof the

new museums

authorizedby Congress and

now

underconstruction, haveall

hadtobe addressed in thistimeframe, leavinglittleornoopportunity toaddress

many

worthy and important needs inresearch.Atthistime, perthe instructions of theCommittee,

we

arewaitingforthereport of theindependent Science

Commission, as wellas theseparate studiesunderway by theNational

Academy

of PublicAdministrationand theNational

Academy

ofSciences, beforeaddressingany changestoour scientificresearch programs.

Question9: The SmithsonianTropical ResearchInstitute in

Panama

has

demonstratedworld leadership intheunderstanding oftropical forests,and ofthe roleof suchforests inmitigating carbon emissions. Would you consider thework thatisbeing done bytheInstitute

among

the mostcriticalandtimelyresearchdone bytheSmithsonian? If so, would you support anincrease totheir base budgetto expand studieson thecrucial role of microorganisms intropicalforestsand soils?

Answer: The

work

being doneat theSmithsonianTropical ResearchInstituteis

indeedcritical andtimely. There are majorissues relating tothe carbon cycleand green-house gas emissions inthetropics. STRI providesan exceptional logistical platform within a tropical setting forthe studyofcarboncyclingwithinvegetation andsoils. STRI scientistshave

made

criticaladvancesin understandingtherole andinteractions

among

forest microorganismsincarbon uptake by forest treesand

insoils.

We

currentlyhave severalstudies -the Smithsonian ScienceCommission, andadditionalstudies bythe National Academiesof Public Administrationandof Science^- reviewing scienceactivitiesand theirfunding atthe Smithsonian.

We

willawait theresultsof thesestudiesbefore commenting onpotential increasesin funding.

SecurityNeeds

Question 10: ThisCommitteeprovided $21.7million totheSmithsonian inthe TerrorismSupplemental bill lastyeartoaddresssecurityconcerns inlightofthe

45

September 11thattacks. Similarfundswereprovided infiscal year1997.

Specifically

how

arethese funds being used?

Answer: Afterthe

1995

bombingoftheAlfredP.Murrah Federal Building in

Oklahoma, theSmithsonian received

$935,000

ⁱⁿFY 1997. Thisfunding

was

usedto reducevulnerabilitiesassociated with mailhandling, accessto special events attended byVIP's,andpersonnel/vehicleaccesstofacilities.

This funding

was

specifically usedtopurchase X-rayequipmentformail and package screening attheSmithsonian's centralmail facilityand facilityloading docks. Thefundswerealso usedtoprocureequipment andtraining forvarious portablemetal detectorsthat aredeployed forthescreeningofguests during specialevents. This appropriation alsofundedthe implementationofa centralized personnel identificationsystem,whichensuresthatonlyauthorized personnelhave accessto sensitiveareasoftheSmithsonian.

TheSmithsonian received $21.7million viathe TerrorismSupplementalin

FY

2002. TheOffice of ProtectionServices administers approximately$17.2million

andthe National Zoological Park administersapproximately $4.4million. The remainder ($.1 million) isforthe cleanupoftheHeye Center in

New

York City.

Current plansare to spendthefunds received as follows;

FY 2002

TerrorismSupplementalSpendingPlan

($Millions)

OPS NZP TOTAL

Temporaryphysicalbarriers 2.25 0.00 2.25 Magnetometer/X-rayequipment 2.16 1.93 4.09

Publicaddresssystems 2.90 0.50 3.40

Security plan(blastassessment) 1.00 0.10 1.10

HAZMAT

equipment 0.05 0.02 0.07

Perimetercameras 0.66 0.00 0.66

FencingatNational Zoological Park 0.00 1.10 1.10

Heye Centercleanup 0.10 0.00 0.10

Staffingforexternalpatrols&

operation ofmagnetometers andx-ray

equipment 8.15 .78 8.93

TOTALS 17.27 4.43 21.7

46

Question11:

How

would youdescribe the state of securityattheSmithsonian?

Answer: Priorto September 11^,2001^,the Institution consideredthe state of securityattheSmithsonianadequate forthe protection ofthe National Collections andmorethan

30

^{millionvisitors a year.}

Sincethe September 11^,

2001

^terroristattacks,theInstitution isreconsidering its vulnerability toterroristattack.

New

securitymeasuresareneeded asthe popular recognition ofthe Smithsonianname,the Americanicons contained in itsfacilities,

andthe high levelofpublic access/visitationdistinguish the Smithsonianfromother governmentbuildingsand placeitat a highriskforpossibleterroristattack.

Inthelastsix months,the Smithsonian has increasedliaison effortswithlocal and federal lawenforcementtoexchangesecurityinformation andmonitorthreat conditions. Also, the Smithsonian continuestoperform vulnerability studies, which arebeing confirmedthrough independentassessment. Based onthefindings of thosestudies,theSmithsonian has requested fundingin FY

2003

to implement additionalappropriatesecuritymeasures.

Question 12: Willthesupplemental funds, andthefiscal year

2003

request, provideforpermanentsecurity needsfortheInstitution?

Answer: Inadditiontothe supplemental funding receivedⁱⁿFY 2002, the Institution's FY

2003

budgetrequestincludes additional fundingof $19.8millionto continueimplementing increasedsecurity measures inthe followingareas:

Continued funding forauthorized staffingfrom FY

2002

Hardeningoffacility

windows

Permanentphysical barriers Pop-upvehicle barriers Hardenedsecuritybooths

Thesafety of Smithsonianvisitors, staff, andcollectionsisoneofourhighest priorities.

We

constantly monitor oursecuritypostureand willrespondto future securityneedsas theyarise.

ScienceCommission

Question 13: Thefiscalyear

2002

appropriations billcontained a directivetoform aScienceCommissiontoadvise theSmithsonianon currentandfuturescientific researchactivities. The Committeealsoprohibited theSmithsonian fromclosing anyresearch facilities until finalrecommendationsfromtheCommission have been reviewed bythe Regents andtheCommittee.

What

isthe currentstatus ofthe Commission's comprehensivereview?

Answer: TheScienceCommission hasconductedfour (Sept. 6-7,Nov. 12-13, Dec. 13-14,Feb.28-March 1) of itseight scheduledtwo-day meetings (Apr. 16-17, June3-4,

Aug

1-2, Sept.26-27remaining). Thefivesubcommittees have been worl<ingontheir charges(science organizational structure;research andpublic programs; researchprofile;researchevaluation; andresearchleadership).

Town

hall meetingsandScience Commissionsite visitshavebeenconductedat

Smithsonian Astrophysical Observatory, National Zoological Park's RockCreek and FrontRoyalfacilities, National

Museum

of Natural History, National Airand Space

Museum's

Center^forEarthand Planetary Studies, Smithsonian Environmental Research Center,Smithsonian Center^forMaterialsResearch and Education,and SmithsonianTropicalResearch Institute. SubgroupsofCommissioners have met withstaff scientists, departmentchairs, unitdirectors, UnderSecretariesand the Secretaryin executivesession. The Committeeofthe wholehas reviewed numerous documents, including: externalreviewsofresearch units,individual staff researchstatements (400-t-),unitprogrammatic statements, strategic vision statementsofdepartments andunits,and Smithsonian researchbudgetdata. The ScienceCommission ExecutiveCommittee met withtheSmithsonian Boardof RegentsonJanuary

22

toprovide an updateon the Commission'sprogress.

A

finalreportwill besubmittedtotheRegentspending completion ofthe

NAS

and

NAPA

studies, most likelyin lateOctober.

Question 14: Specifically,

what

directions did theSmithsoniangive tothe Commission?

Answer: Thefollowing isthechargefrom theRegentstothe Commission: "For 155years, the Smithsonian Institutionhashad asitsmission 'the Increaseand diffusionof knowledge.' Given the important questionsfacingthescientificworld today,the existing levelofinstitutionalfinancial andphysical resources,the strengthsofthe Institution'speopleand itscollections,

how

should the

Smithsoniansetprioritiesforscientific researchinthe yearsahead and,in general, carryoutitshistoric missionmoreeffectively?

•

How

shouldscientificresearch beorganizedtooptimizetheuseofthe Institution's human, physical andfinancial resources?

How

shouldtheperformanceofscientific researchbyindividualsand research departments be evaluated?

•

How

canthe relationshipbetween researchand public programmingbe enhanced?

What

suggestions, ofanytype might the ScienceCommission haveto strengthen researchatthe Smithsonian?

What

should bethe qualifications ofthose chosento lead keyscientific research units of theSmithsonian?

What

shouldbe donetoenhancepublicrecognition ofSmithsonian science?"

48

The Commission'sfindingswillbesubmittedtotheRegentsfor theirconsideration.

Question 15:

When

arethey expectedtofinalizetheirrecommendations?

Answer: TheScienceCommission has repeatedlystated thattheyarecommitted toworkas long as ittakes toprovide the rightrecommendations.

An

interim reportwillbedelivered tothe Smithsonian Boardof Regents at their

May

meeting thatfocuseson strengthening Smithsonian science.

A

final reportwillbe submittedto the Regentsin October 2002.

Question 16: There werediscussions during thepreparationofthe budgetabout transferring $35 million from Smithsonian researchprogramstothe National Science Foundation. Can you

comment

onthisproposal?

Answer: No. Discussions during the preparationofthe budgetare privileged communicationswithin the Executive Branch.

A

keypart oftheSmithsonian Institution'smissionistheincreaseof knowledge. Congress,ⁱⁿ establishingthe Smithsonian Institution,committedthe Smithsoniantoundertakebasicscientific research.

There iscurrentlyan independent stud" beingconductedbythe National

Academy

ofSciencesandthe National

Academy

ofPublic Administration,which isreviewing theextenttowhich base funding ofailbasicscientific researchatthe Institution shouldbe subjecttocompetition.

MajorRehabilitationNeeds

Question 17: The Committeedirected the Smithsonianinthe FY 2001 Interior Appropriations bill tocontractwiththeNational

Academy

of PublicAdministration (NAPA)to clarifythe following: 1)

how

had theSmithsonianused over

$200

millionspecifiedfor major backlog maintenance, 2)

what

progress hadbeen

made

toreduce themostcritical problems and3) verify futurebacklog requirements.

Can you summarizethehighlights oftheAcademy's reportfortheCommittee?

Answer: The

NAPA

teamofFederal financial

management

andfacilities engineering

management

experts spenteightmonthsstudyingtheseissues identified bytheCommittee andsubmittedtheirreport,

A

StudyoftheSmithsonian Institution's Repair, Restoration

and

AlterationofFacilitiesProgram,inJuly2001 The

NAPA

reportincluded

30

recommendations, andthehighlights areasfollows:

NAPA

concludedthat

$208

millionappropriated byCongress between FY

1996

and

2000 was

usedproperly for the purposes requestedinthe budgets.

•

NAPA

concludedthatthe Smithsonian's "extensive backlog ofmajorrepair, restorationandrenewal requirementsarevalidand havenotbeenoverstated."

However, theInstitutionfailedtocommunicatethefull extentofits

requirement.

»

NAPA

estimated thetotalrevitalization requirementat $1.5 billion, and

recommended

athorough revalidation ofthetotal requirement. The professional engineering study.

Museums and

Facilities: Critical

Assessment

and

ImprovementObjectives,

was

published in September 2001 to respondtothis

recommendation.

Uf\Pf\ notedthatasthe Smithsonian's

RR&A

programis substantiallyincreased to achievethis revitalizationrequirement, staffing shouldalso be increasedto effectively

manage

thelargerprogram.

NAPA

pointedoutthat lack ofpreventivemaintenancecontributedto building deterioration and increased restoration costs, and

recommended

development of a well-structuredmaintenanceprogram with increased annual funding.

NAPA

foundthat Smithsonian'scentral

management

does not haveeffective toolsfortracking obligationsandexpendituresorformeasuring performancein

orderto hold managersaccountableforachieving organizational goals.They

recommended

replacement ofthe currentfinancialsystem.

NAPA

noted the lack of effectivecommunicationswith

0MB

and Congress, and

recommended

that Smithsonianplaceincreased emphasison reestablishing credibility by respondingquickly and accurately.

NAPA recommended

that Smithsonian considerreorganizing itsfacilities

management

functionsunder asingle organizationtoimproveoperational efficiency andeffectiveness, costandqualitycontrol andaccountability.

The Smithsonian agrees withallofthe

NAPA

recommendations, and has

implemented oris inthe processof implementingallofthem. The Institutionfound the

NAPA

reportvery usefulin helping us focusonspecific areasofthefacilities operations needingimprovement, andallowing us to articulatethefull scopeof requirements formodernizing the physical plant.

We

appreciate theCommittee's pastsupportand current interestinresolving this criticalissue.

Question 18:

One

ofthe critical findings inthe

NAPA

study

was

that for all

practical purposes, theSmithsonian has nothad apreventive cyclicmaintenance program. Thisobviously ledto the $1 billion maintenancebacklog.

How

are you proposing todeal withthisproblem?

Answer: Using the funding providedformaintenance within the

RR&A

programin

FY

2002

and requested forFY 2003, theSmithsonianis refocusingits preventive maintenanceprogramto a ReliabilityCentered Maintenance(RCM) program.

RCM

usesthelatestin predictive testand inspection protocolsto assistindetermining theappropriate scheduleformaintenance activities. Using riskassessmentfactors toguide theprogram will furtherinsure thatthe appropriatemaintenancetasks are performedatthe proper timeandthatcriticalsystemsreceivethe highest priority.