sonal property that should go to the educational agencies, and should go to the schools. Mr. TUTTLE. The GSA objection to this bill, Senator, however, has no relation to a desire for public sale. It is only related to the fact that AID, like numerous other Government agencies, is spending a lot of money every day buying new property, and we in GSA would like to see them not buy new items whenever we can find something in excess that is used but still in serviceable condition that will fill the need. Senator METCALF. Believe me, we in Congress would like that. Mr. TUTTLE. We review some of the AID procurements, you know, and frequently bring to their attention something they are about to buy that is new, and we tell them, "Let us help you find some excess items." Senator METCALF. I wasn't talking specifically as to S. 1432. I was talking about a general policy that I assume to be followed over the years where many of these Federal agencies don't ever let their property get into the channels of surplus disposal. And so we find surplus stores all over America full of stuff that junk dealers have acquired. Mr. TUTTLE. Senator, I don't know how it can happen. Senator METCALF. I don't know how it can happen either, but it does. Mr. TUTTLE. There is one channel of disposal which skips the donation program. And I have a feeling that perhaps that is what you are mentioning. It is called the exchange/sales provsion of the Federal Property Act. Senator METCALF. That is what I am talking about. Mr. TUTTLE. When an agency has something that is getting old and it wants to replace it and buy something that is a similar item, brand new, then it doesn't have to offer the old item for donation. Senator METCALF. That is right. And the Department of Defense is very quilty. And they put up material for exchange. Mr. TUTTLE. There are a number of agencies that use this authority, 201 (c) of the Property Act. Senator METCALF. They use it to sell. We had some hearings on this, Mr. Chairman, and we had people up here, and we had a considerable amount of property that could have been used for valuable educational purposes that was disposed of just in order to help a percentage on an appropriation. I don't think it is in the public interest. It may help the individual agency, but the overall public interest is to make the highest use of this property. As you have pointed out, sometimes a higher use is not to exchange it but to allow an educational institution, or some charitable institution use it for it its original purpose. Mr. TUTTLE. I would agree that that is true with many types of property and many types of condition. The incentive, of course, for agencies, is that they reduce their annual appropriation requests for equipment replacement, by the amount that they can get back by way of proceeds from sales. And the GSA's task is to administer a regulation implementing the law which tries to serve, on balance, the needs of these Federal agencies and still recognize the Federal utilization concept and the donation program. Senator METCALF. 201(c) is not only exchange; it is a real sale sometimes. Mr. BARTH. It includes both authorities; the authority to exchange and the authority to sell. Senator METCALF. I am glad to hear you make an official statement that sale is the last resort, because if we are going to get full value out of our surplus property, we certainly don't get it if we sell it to junk dealers. Thank you. Thank you, Mr. Chairman. Senator ALLEN. Thank you, gentlemen. (Whereupon, at 5 p.m., the subcommittee recessed to reconvene at 10 a.m., Thursday, July 10, 1969.) DONABLE SURPLUS PROPERTY PROGRAM THURSDAY, JULY 10, 1969 U.S. SENATE, AD HOC SUBCOMMITTEE OF THE Washington, D.C. The subcommittee met, pursuant to recess, at 10:05 a.m., in room 3302, New Senate Office Building, Senator James B. Allen (chairman) presiding. Present: Senators Allen and Metcalf. Also present: James R. Calloway, chief counsel and staff director; Ann M. Grickis, assistant chief clerk; Glenn K. Shriver, professional staff member; Charles M. Ryan, professional staff member; and Arthur A. Sharp, editor. Senator ALLEN. The subcommittee will please come to order. The first witness this morning is Mr. Paul H. Riley, Deputy Assistant Secretary of Defense. TESTIMONY OF PAUL H. RILEY, DEPUTY ASSISTANT SECRETARY Mr. RILEY. Mr. Chairman, I have a prepared statement. Mr. RILEY. Mr. Chairman and members of the subcommittee, I am appearing here today in response to your request. I wish to express my appreciation for this opportunity to review with you the conduct of the Department of Defense donable property program. I wish to assure you, Mr. Chairman, and the members of your subcommittee, that the Department of Defense is in complete accord with both the principle and the objectives of the donable property program. Surplus personal property which is generated by the Department of Defense is donated in support of two separate programs. I would like to discuss each program briefly. HEW ADMINISTERS PROGRAM The Department of Health, Education and Welfare is responsible, under the provision of the Federal Property and Administrative Services Act of 1949, as amended, for the approval and allocation of donations of surplus personal property to accredited donees. As I am sure you are all aware, over the years the Department of Defense has generated the predominant portion of all surplus property made available for donation. To give you some idea of the magnitude of these donations, I would like to cite the following figures, which represent total acquisition value of property donated. SURPLUS PROPERTY DONATIONS In fiscal year 1966 property with acquisition value of $264 million was donated. And I am sure that you appreciate that the acquisition value is by no means an expression of the true value of the property$206 million in 1967; $181 million in fiscal year 1968 and $158 million during the first three quarters of fiscal year 1969. Donations for these periods total over $800 million in acquisition value. The Federal Property and Administrative Services Act of 1949, section 203 (j) (2) provides that the Secretary of Defense shall determine whether surplus personal property under the jurisdiction of the Department of Defense is usable and required for educational activities which are of special interest to the armed services. These include maritime academies and Army, Navy, Air Force, and Coast Guard preparatory schools. Upon determination by the Secretary of Defense that such surplus personal property is usable and required by the requesting special interest activity, he allocates it for donation. All donations, however, are made through the General Services Administration. Surplus personal property generated within the Department of Defense is donated on a priority basis directly to the special interest activities by the General Services Administration under arrangements developed by that agency, the Department of Health, Education, and Welfare, State agencies for surplus property, and the Department of Defense. The conditions under which the property may be used and the procedure for obtaining such property are described in specific donation agreements with each of the activities involved. SPECIAL INTEREST ACTIVITIES We currently have 105 special interest activities participating in the program. These include the Junior Reserve Officer Training Corps (JROTC) in public/parochial high schools based on Public Law 90-83 as amended. Such units are eligible for designation as special interest for the purpose of obtaining surplus personal property in support of the JROTC unit. I have a current list of these special interest activities, which I will furnish for the record if the committee desires. Senator ALLEN. Yes, we would like that. (The document follows:) EXHIBIT 6 SCHOOLS OF SPECIAL INTEREST 1. Admiral Farragut Academy, on Boca Ciega Bay, St. Petersburg, Florida 33710 2. Admiral Farragut Academy, on Toms River, Pine Beach, New Jersey 08741 3. Albuquerque High School, 110 Broadway Boulevard, N.E., Albuquerque, New Mexico 87102 4. Allen Academy (The), P.O. Drawer 673, Bryan, Texas 77801 5. American Military Academy of Puerto Rico, Box 285, Guaynabo, Puerto Rico 00657 6. Andress High School, 5400 Sun Valley Drive, El Paso, Texas 79924 7. Antilles Military Academy, P.O. Box 666, Trujillo Alto, Puerto Rico 00760 8. Army and Navy Academy, Carlsbad, California 92008 9. Austin High School, 3500 Memphis Avenue, El Paso, Texas 79930 10. Benedictine Military School, 6502 Seawright Drive, P.O. Box 6576, Savannah, Georgia 31405 11. Board of Education, Chicago, Illinois (includes 37 High Schools) 12. Bordentown Military Institute, Park Street, Bordentown, New Jersey 08505 13. Bowie High School, El Paso, Texas 79901 14. Burges High School, El Paso, Texas 79900 15. California Maritime Academy, P.O. Box 1392, Vallejo, California 94590 16. Camden City Schools, Camden, South Carolina 29020 17. Camden Military Academy, Camden, South Carolina 29020 18. Canon City High School, Canon City, Colorado 81212 19. Cardinal Farley Military Academy, Rhinecliff, New York 12574 20. Carlisle Military School, Bamberg, South Carolina 29003 21. Carolina Military Academy, Maxton, North Carolina 28364 22. Carter Parramore High School, Quincy, Florida 32351 23. Castle Heights Military Academy, Lebanon, Tennessee 37087 24. Catholic High School for Boys, 6300 Lee Avenue, Little Rock, Arkansas 72205 25. Children's Village (The), Dobbs Ferry-on-Hudson, New York 10522 26. Christian Brothers College, 6501 Clayton Road, St. Louis, Missouri 63117 27. Columbia Military Academy, Columbia, Tennessee 38401 28. Coronado High School, 6832 North Mesa Street, El Paso, Texas 79912 29. Culver Military Academy, Culver, Indiana 46511 30. Eastern Military Academy, Cold Spring Hills, Huntington, Long Island, New York 11743 31. El Paso High School, 1600 North Virginia Avenue, El Paso, Texas 79902 32. Fishburne Military School, Waynesboro, Virginia 22980 33. Florida Air Academy, 25 Palm Drive, Melbourne, Florida 32901 34. Florida Military School, De Land, Florida 32720 35. General Douglas MacArthur Military Academy, Mount Freedom, New Jersey 07970 36. Georgia Military College, Milledgeville, Georgia 31061 37. Gordon Military College, Barnesville, Georgia 30204 38. Howe Military School, Howe, Indiana 48746 39. Irwin High School, 9465 Roanoke Drive, El Paso, Texas 79924 40. James A. Shanks High School, Quincy, Florida 32351 41. Jefferson High School, 4700 Alameda Avenue, El Paso, Texas 79905 42. Jesuit High School, 4133 Banks Street, New Orleans, Louisiana 70119 43. Johnson City High School, Johnson City, Tennessee 37601 44. Joilet Township High School, District 204, 201 East Jefferson Street, Joilet, Illinois 60432 45. Kamehameha School for Boys (The), Kapalama Heights, Honolulu, Hawaii 96817 46. Kemper Military School and College, Boonville, Missouri 65233 47. Kentucky Military Institute, Inc., Lyndon, Kentucky 40222 48. LaSalle Military Academy, Oakdale, Long Island, New York 11769 49. Luther L. Wright High School, Ironwood, Michigan 49938 50. Lyman Ward Military Academy, Camp Hill, Alabama 36850 51. McDonald High School, McDonald County School District R-1, Anderson, Missouri 64831 52. Maine Maritime Academy, Castine, Maine 04421 53. Manlius School (The), Manlius, New York 13104 54. Marine Military Academy, 320 Iwo Jima Boulevard, Harlingen, Texas 78550 55. Marist School, 3790 Ashford-Dunwoody Road, N.E., Atlanta, Georgia 30319 56. Marmion Military Academy, Aurora, Illinois 60504 57. Massachusetts Maritime Academy, Buzzards Bay, Massachusetts 02532 58. Massanutten Military Academy, Woodstock, Virginia 22664 59. Memorial High School, 1225 Fourth Street, Beloit, Wisconsin 53511 60. Miami Military Academy, Inc., 10601 Biscayne Boulevard, Miami, Florida 33138 61. Miller School of Albemarle (The), Miller School, Virginia 22901 |