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HEARINGS

BEFORE A

SUBCOMMITTEE OF THE

COMMITTEE ON ARMED SERVICES

UNITED STATES SENATE

EIGHTY-SIXTH CONGRESS

FIRST SESSION

ON

S. 500

AMENDING TITLE 10, UNITED STATES CODE, WITH RESPECT
TO PROCUREMENT PROCEDURES OF THE ARMED SERVICES

S. 1383

REQUIRING THE USE OF COMPETITIVE BIDDING TO THE
GREATEST PRACTICABLE EXTENT IN THE PROCUREMENT OF
PROPERTY AND SERVICES BY THE ARMED FORCES THROUGH
THE ESTABLISHMENT BY THE SECRETARY OF DEFENSE OF
SPECIFIC STANDARDS GOVERNING THE USE OF NEGOTIATED
CONTRACTS FOR SUCH PROCUREMENT

S. 1875

AMENDING TITLE 10, UNITED STATES CODE, TO ENCOURAGE
COMPETITION IN THE PROCUREMENT OF THE ARMED

43452

SERVICES

JULY 13, 15, 21, 24, 28, AND 31, 1959

Printed for the use of the Committee on Armed Services

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COMMITTEE ON ARMED SERVICES

RICHARD B. RUSSELL, Georgia, Chairman

HARRY FLOOD BYRD, Virginia
LYNDON B. JOHNSON, Texas
JOHN STENNIS, Mississippi
STUART SYMINGTON, Missouri
HENRY M. JACKSON, Washington
SAM J. ERVIN, JR., North Carolina
STROM THURMOND, South Carolina
CLAIR ENGLE, California

E. L. BARTLETT, Alaska
HOWARD W. CANNON, Nevada

LEVERETT SALTONSTALL, Massachusetts
STYLES BRIDGES, New Hampshire
MARGARET CHASE SMITH, Maine
FRANCIS CASE, South Dakota
PRESCOTT BUSH, Connecticut
J. GLENN BEALL, Maryland

HARRY L. WINGATE, Jr., Chief Clerk

SUBCOMMITTEE TO CONSIDER S. 500, S. 1383, AND S. 1875

STROM THURMOND, South Carolina, Chairman

JOHN STENNIS, Mississippi
SAM J. ERVIN, JR., North Carolina
HOWARD W. CANNON, Nevada

LEVERETT SALTONSTALL, Massachusetts PRESCOTT BUSH, Connecticut

II

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Bailey, Charles M., Associate Director, Defense Accounting and Audit-
ing Division, General Accounting Office....

Barron, Paul, staff director of the Interagency Procurement Task
Force, General Services Administration..

Bridges, Hon. Styles, U.S. Senator from the State of New Hampshire
Case, Hon. Clifford P., U.S. Senator from the State of New Jersey.
Chamber of Commerce of the United States...

Chapman, Robert B., III, executive vice president, Aircraft Arma-
ments, Inc.__.

290

Bean, Clarence D., Commissioner, Federal Supply Service, General
Services Administration.

340

McMorrow, Gen. F. J., Director of Procurement, Office of Deputy
Chief of Staff for Logistics, Army..

Thurman, Maj. Gen. William T., Office of Deputy Chief of Staff
for Material, Air Force...

DeLuca, Frank, vice president, Acoustica Associates, Inc.
DeRose, Louis J., DeRose & Associates, New York City.
Electronic Industries Association...

McGuire, Hon. Perkins, Assistant Secretary of Defense for Supply
and Logistics___

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Saltonstall, Hon. Leverett, U.S. Senator from the State of Massa-
chusetts

33

Smathers, Hon. George A., U.S. Senator from the State of Florida,
joint statement with Senator John Sparkman, for the Select Com-
inittee on Small Business__.

455

Sith, George P. F. (vice president of Borg-Warner Corp.), repre-
senting Chamber of Commerce of the United States___.

Snepp, Charles D., Knoxville, Tenn..--

403

Thurman, Maj. Gen. William T., Office of Deputy Chief of Staff for
Materiel, Air Force...

185

Webster, Warren, chairman, National Defense Committee, National
Association of Manufacturers _ _

414

Welch, J. Edward, Deputy General Counsel, U.S. General Accounting
Office__

279

Williams, Hon. John J., U.S. Senator from the State of Delaware__

54

VIII. The WSPO Concept: Space Age Procurement (Armed Forces

Management, February 1959).

IX. Defense Department Explains Weapons System Management

and Procurement Concept; Army, Navy, Air Force Outline

Operation of Concept in Each Service (Army, Navy, Air

Force Journal, June 27, 1959)_.

X. Weapon System Contracting, by J. Sterling Livingston (Harvard

Business Review, July-August 1959)---

XI. Comments on Weapons System Procurement Policy, by Capt.

E. C. Callahan, USN, commanding officer and director, U.S.

Naval Training Device Center, Port Washington, N.Y...

XII. Atwood Backs Weapon Systems Concept, by Irving Stone

(Aviation Week, June 22, 1959).

XIII. References to Congressional Hearings and Reports Relative to

Treatment of Small Business Concerns in Connection with

Government Procurement, by Harry G. Ritchey, Head,

Congressional Documents Section, American Law Division,

Legislative Reference Service, the Library of Congress,

November 20, 1958, together with the transmittal letter from

Hugh L. Elsbree, Director of Legislative Reference Service. _

XIV. Small Business Trends, With Particular Reference to Govern-

ment Procurement, Economics Division, Legislative Reference

Service, the Library of Congress, February 4, 1959---

XV. Current Status of National Defense: A Study in Appropriations,

Organization, Inefficiency and Waste, and Trends in Roles

and Missions, by James D. Threlkeld, Foreign Affairs Division,

Legislative Reference Service, the Library of Congress,

September 11, 1958.

XVI. Why Research Costs Too Much, by Burgess Dempster, presi-

dent, Electronic Engineering Co. of California (Armed

Forces Management, March 1959).

XVII. Military Management, by Bernard K. Gordon, analyst in na-

tional defense, Foreign Affairs Division, Legislative Reference

Service, the Library of Congress, March 13, 1959.

XVIII. Legal Status of Low Bidder on Military Procurement Contracts,

by J. R. Bolinger, legal analyst, American Law Division,

Legislative Reference Service, the Library of Congress, April

17, 1959.

XIX. Gifts or Undue Influence Between Subcontractor and Prime Con-

tractor on Military Contracts, by J. R. Bolinger, legal analyst,

American Law Division, Legislative Reference Service, the

Library of Congress, April 22, 1959

XX. Pentagon Expands Incentive Contracts, but Obstacles Rise, by

Louis Kraar (the Wall Street Journal, April 30, 1959)_.

XXI. AMC Gets Ready for Change, by Gen. E. W. Rawlings, com-

mander, Air Material Command (Armed Forces Management,

January 1959.

XXII. Formula for the Future: Military/Industry Cooperation, by Vice

Adm. E. W. Clexton, Chief of Naval Material (Armed Forces

Management, January 1959)_ _ .

XXIII. Filling the Gap in Defense Supply Operations, by Bill Borklund

(Armed Forces Management, January 1959) _

XXIV. How Army Handles Tri-Service Buying, by Lt. Col. William T.

Bell, Jr., Chief, Procurement Policy Branch, Office of Quarter-

master General (Armed Forces Management, January 1959) -

XXV. Army's Buying System: What It Does, by Col. E. J. Gibson,

Office of the Deputy Chief of Staff for Logistics, Department

of the Army (Armed Forces Management, January 1959)____

XXVI. Why Navy Procurement Is Flexible (Armed Forces Management,

January 1959)_

XXVII. How Air Force Handles Logistic Support, by Maj. Gen. T. P.

Gerrity, commander, Oklahoma City Air Materiel Area

(Armed Forces Management, January 1959)

XXVIII. Time *** The Resource We Mismanage Most, by Bill Bork-

lund (Armed Forces Management, May 1959).

XXIX. No Time for Sale, by Maj. Patrick W. Powers (Army, March

1959)__

XXX. An Analysis of Proposed Amendments to the Armed Services

Procurement Act of 1947, by Charles W. Celson and Murray

Zweben (the George Washington Law Review, April 1959)__

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