Homeland Security

STATEMENT OF JOSEPH S. PARESI, PRESIDENT, SECURITY SYSTEMS DIVISION, L-3 COMMUNICATIONS, INC., BEFORE THE HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE, SUBCOMMITTEE ON AVIATION, CONCERNING EXPLOSIVE DETECTION SYSTEMS.  OCTOBER 11, 2001.

Mr. Chairman and Members of the Subcommittee:

I am Joe Paresi, President of L-3 Communications' Security Systems Division, which produces the eXaminer 6000 explosive detection system (EDS).  I very much appreciate the opportunity to appear before the Subcommittee today to discuss the topic of aviation security.  The office building where I work looks out on the World Trade Center and I  personally witnessed the horrific events of September 11th.  No one who witnessed that tragedy can ever be dismissive of the need for strengthened security not only for our aviation system, but also for our society at large.  And although there are no "silver bullet" solutions, it is now clear to all of us that there is more that we can and must do to combat the terrorist threat to our free society.

Before highlighting some facts concerning the EDS we produce and offering a brief perspective on security in general, I would like to quickly offer some history on L-3 Communications and our entry into the EDS field.  L-3 Communications was founded in 1997 as a spin-off resulting from the merger of Lockheed Martin and Loral Corporations in 1996.  L-3 was established as a high tech product company to serve the Department of Defense and to consolidate the fragmented supplier base in the U.S.  due to massive prime consolidation and significantly reduced defense spending.  L-3 has grown from an initial $500 million volume to $2.5 billion through internal growth and acquisition.  The executives of L-3 include Frank Lanza and Robert LaPenta, the former Loral Corporation Chief Operating and Chief Financial Officers, respectively.  L-3 has grown steadily, acquiring a number of small corporations that are primarily involved in the defense field.  In fact, about 65% of L-3 Communications Corporation's work is defense-related.  We do, however, produce a number of systems for the civil aviation sector as well, including for example, collision avoidance systems (TCAS), advanced flight data recorders (black boxes), avionics displays and air traffic control power systems.

Our work in the EDS field began in February 1996 with a grant from the FAA to develop an advanced computer tomography system based on medical imagery technology that was far advanced over the first generation explosive detection systems.  The grant was made in partnership with General Electric and Analogic Corporations, world leaders in computer tomography systems, and was supplemented by significant corporate investment.  The FAA provided a further grant to us in November 1996 to accelerate the development of our system, which successfully passed FAA's certification testing in November 1998. 

Not only was this a significant achievement and advancement in technology in a relatively short span of time, but it also established a new benchmark for second generation EDS performance that is still unmatched.  The L-3 approach is equivalent to having twenty-four (24) parallel computer tomography systems--the first of its kind--which assure that no potential threat object is overlooked. Although I cannot further detail the specifics of our system's capabilities in an open session, I can say with authority that the eXaminer 6000 is smaller, lighter, faster and has a greater detection capability than any other certified EDS.  And we are continuing to work to make the system better while further reducing acquisition and operating costs.

Few would argue that competition is vital to achieving better products and customer value, regardless of the line of business.  In fact, we are hopeful that, in the succeeding fiscal year, FAA will move to a competitive buy between certified-EDS manufacturers, acquiring the greater percentage of systems from the best value vendor.  This will help maximize value to the taxpayer, while still preserving dual manufacturing sources.  

At this juncture, we are working hard with the FAA to secure the deployment of additional L-3 systems.  To date, FAA has ordered nineteen (19) systems and has installed two systems at airports in Dallas and Honolulu along with four units at FAA test facilities for continuous certification and operational support.  The first of these, installed for American Airlines in Dallas/Ft. Worth in May 2000, was our first domestically operational unit. While it experienced limited "growing pains"--a commonly shared experience for all EDS suppliers when first moving a system from the laboratory to the operational world--it is presently operating without issue.  In fact, American Airlines has requested several more systems for their installation requirements.  The Honolulu systems, installed in January 2001, no doubt benefited from some of the steps we took in Dallas, and these units have operated with a high degree of availability and reliability throughout the time they have been in place.  In fact, two (2) additional systems have been planned for Hawaii for some time, and will be installed in November 2001.

In addition to the units I have identified, L-3 has held in storage nine (9) FAA-owned units in our warehouse awaiting their disposition. On Thursday, September 27, 2001, the FAA sent us e-mail requesting these units be made ready for immediate deployment and directing L-3 to convert these units to a stand-alone configuration from an integrated system. This conversion requires a minor change in the conveyor tunnels and the addition of a software application called Hold-on-Alarm which is used in stand-alone operation only, in order to facilitate bag control by a single system operator. The final four (4) units with mods are scheduled for factory acceptance testing by the FAA starting Monday, October 15, 2001. This test usually takes about three days to complete.

There are also seven (7) L-3 systems that were installed in Rome in late-1999, where they are being used in a modern integrated in-line conveyor baggage screening operation, which is a considerably more complex operation than the use of EDS in a stand-alone lobby installation.  The integrated system in Rome is state-of-the-art and has worked extraordinarily well.  A demonstration was made in Rome to Members of Congress in March 2001.

Based on recent planning information provided us by the FAA, we now anticipate that the remaining eleven (11) L-3 eXaminer 6000 systems will be deployed in the next three months. Not only do we believe it important that our systems be deployed expediently to provide additional security coverage, but also to provide us further operational exposure to the airlines, which no doubt will have a voice in any future acquisition.  Recent congressional committee report language, of which some of you are aware, called for equal acquisitions of certified EDS systems by FAA from the two existing manufacturers in order to promote a more competitive environment.  In view of the limited numbers of our systems deployed domestically, we have not yet benefited from exposure to the airline community that we believe is mandatory to achieve a level competitive environment.  We trust that a heightened emphasis on system deployment will provide that opportunity shortly for the second generation EDS.  

The tragic events of September 11 made clear to all the seriousness with which terrorists have targeted the United States.  It has reinforced the need for strengthened security measures in all facets of our lives.  EDS can and should play an increased role in protecting our citizens from this threat both in aviation and in other sectors, as well as further restoring confidence to the American traveler.  I would anticipate that the deployment and use of EDS will inevitably increase at home and abroad.  To that end, the FAA has advised L-3 to plan for at least thirty-five (35) additional units in this coming fiscal year once funding is authorized.

In addition, L-3 is developing a new lower-cost unit to make a broader application of EDS for smaller airports with less traffic, under the FAA's ARGUS program.  ARGUS, designed to be a smaller, lower capacity certified EDS, addresses operational deployment in the design effort.  I would recommend strongly that the ARGUS program continue to proceed on track.  At the same time, I would urge that we provide added funding and an increased commitment to the rapid deployment of existing certified systems.  The American traveling public deserves the added protection that can be afforded by the expanded use of the technology we already have available to us.  L-3 Communications stands ready with its partner Analogic to assist however we can in our Nation's efforts to combat the all too real threat of terrorism directed against our citizens.

That completes my prepared statement, Mr. Chairman.  I would be pleased to respond to any questions you may have at this time.