FEDERAL TELECOMMUNICATIONS SYSTEM ROBERT F. MUNDY, ACTING DIRECTOR, OFFICE OF TELECOMMUNICATIONS JOHN SCOTT, ACTING ADMINISTRATIVE OFFICER, OFFICE OF TELECOMMUNICATIONS REAL PROPERTY ITEMS LAWSON B. KNOTT, JR., DEPUTY COMMISSIONER L. L. HUNTER, ASSISTANT COMMISSIONER, DESIGN AND CON STRUCTION WILLIAM A. SCHMIDT, ASSISTANT COMMISSIONER, BUILDINGS MANAGEMENT WARREN OLNEY III, DIRECTOR, ADMINISTRATIVE OFFICE OF THE U.S. COURTS JOHN C. AIRHART, ASSISTANT DIRECTOR, MANAGEMENT DR. OTIS R. FARLEY, VICE PRESIDENT, GREATER SOUTHEAST COMMUNITY HOSPITAL FOUNDATION, INC. GEORGE T. STAFFORD, DIRECTOR Mr. THOMAS. We have with us this morning our friends from the GSA. It is certainly nice to welcome all of you. Mr. Moore, do you have a statement for us? Do you want to lead off with the testimony? We have looked over your budget. You go all the way across the lot, do you not? I note that in House Document No. 210 you are requesting supplemental appropriations for several purposes totaling $12,050,000. Mr. MOORE. Yes, sir. GENERAL STATEMENT Mr. MOORE. Mr. Chairman, members of the committee, I recognize that this is rather early in the year to appear before you to request additional funds for the fiscal year 1962 for the General Services Administration. However, recent developments make it essential that this be done. Our supplemental requests for appropriation are summarized as follows: Additional court facilities_. Hospital facilities in District of Columbia__ Operating expenses, FSS_ Expenses, supply distribution___ Expenses, Federal telecommunications system__. Total_ $4,650, 000 3, 000, 000 1, 000, 000 2,500,000 900, 000 12, 050, 000 I would like to speak briefly to each of these items and then they can be explained in detail by members of my staff and the other gentlemen who are here to assist us. The estimate for "Additional court facilities" is occasioned by recent legislation authorizing the appointment of 10 additional circuit and 63 district judges. The amount requested covers space rental, moving, space adjustments and related costs, alterations and extensions in buildings estimated to cost less than $200,000, and furnishings and equipment at all locations. No funds have been included for the larger alteration projects (in excess of $200,000 each) estimated to cost about $13 million, on which prospectuses have to be approved by the Public Works Committees. A request for these projects will be submitted at a later date. Mr. Warren Olney and Mr. John C. Airhart from the administrative office of the courts are here to assist us in justifying this request. The $3 million for "Hospital facilities in the District of Columbia" is to provide for a matching grant for the construction of a hospital in Southeast Washington. Dr. Farley and Mr. Stafford of the Greater Southeast Community Hospital Foundation, Inc. have indicated they will be happy to answer any questions the committee may have on this item. The next two items are for the Federal Supply Service. The $1 million request for "Operating expenses, FSS" is to expedite completion of the accelerated item reduction program in which the Subcommittee on Independent Offices expressed such an interest at our recent hearings. It is believed that the investment for this purpose is extremely worthwhile. Of the 278,500 items which will be referred to GSA for decision, it is estimated that about 40 percent or 110,000 will be eliminated from the supply system of the U.S. Government with all of the attendant savings inherent in such a reduction. The $2.5 million in "Expenses, supply distribution," is to provide necessary funds for an expanded supply support program to the Department of Defense. Our overall sales program for 1962 is currently estimated at about $1,145 million as compared to the $1,097 million originally contemplated; and a stores sales program of $226 million against an original program of $215 million. There is proposed a new appropriation item for "Expenses, Federal telecommunications system" for which we are requesting $900,000. At the time of the hearings on our 1962 estimate we advised the Subcommittee on Independent Offices that preliminary work had been done on this program and that we would return when we were in a better position to evaluate our progress. We have proceeded to the point where we can now go forward with the program. This request is to provide for the supervision and the initial phases of operation of a unified telecommunications system for the civilian agencies of Government. This completes my statement and we are prepared to answer any questions which the committee may have. ADDITIONAL COURT FACILITIES Mr. THOMAS. Let us take a look at the item for additional court facilities. JUSTIFICATION OF THE ESTIMATES Mr. Reporter, put pages 1, 2, and 3 in the record. (The pages referred to follow :) SUPPLEMENTAL ESTIMATE OF APPROPRIATION, 1962 ADDITIONAL COURT FACILITIES APPROPRIATION LANGUAGE "For expenses, not otherwise provided for, necessary to provide, directly or indirectly, additional space, facilities and courtrooms for the Judiciary, including alteration and extension of Government-owned buildings and acquisition of ad ditions to sites of such buildings; rents; furnishings and equipment; repair and alteration of rented space; moving Government agencies in connection with the assignment and transfer of space; preliminary planning; preparation of drawings and specifications by contract or otherwise; and administrative expenses; $4,650,000, to remain available until expended: Provided, That buildings constructed pursuant to the Public Buildings Purchase Contract Act of 1954 (40 U.S.C. 356) shall be considered to be Government-owned buildings for the purposes of this appropriation: Provided further, That this appropriation shall be available for the provision of court facilities in places which are otherwise subject to the restrictions of section 142 of title 28, United States Code, but only if such facilities are determined to be necessary by the judicial council of the appropriate circuit." GENERAL STATEMENT "This proposed appropriation is to provide additional court facilities as a result of the enactment of Public Law 87-36 which authorizes the appointment of 10 additional circuit and 63 additional district judges. Provision is made for rental of space, moving, space adjustments, and related costs, furnishings and equipment, and alteration and extensions (including sites and expenses) to building where the estimated cost is less than $200,000. No funds have been included for the larger alteration projects for which congressional authorizations must be obtained through the submission of prospectuses to the Public Works Committees. It is estimated that approximately $13 million will be required later for these projects." (Quoted from House document.) Following enactment of Public Law 87-36 the administrative officers of the courts and the Department of Justice requested GSA to provide the additional facilities required and supplied a listing of locations, where available, in which the judges will sit, and data concerning supporting court personnel who must also be accommodated. Specific locations for other courts will be determined upon appointment of judges. Of the 73 new judgeships it is planned that: 10 will be provided for in existing court space without modification; 10 will be ultimately provided for in authorized or proposed new buildings following their funding and completion; and space for the remaining 53 must be provided for by alterations to existing Government-owned buildings, as shown on exhibit A at the end of this section. Alterations to provide for 36 of the 53 judgeships are estimated to cost in excess of $200,000 per building ($13 million in all); therefore, a prospectus for each such project must be developed and approved by the Public Works Committee of the House and Senate pursuant to section 7 of the Public Buildings Act of 1959. Pending development and approval of such prospectuses no funds are being requested for alteration projects in this category. Facilities for the remaining 17 judgeships, each costing less than $200,000, are provided for in this estimate of $4.65 million. Also included in the estimate are funds for (1) rental of temporary space to house the additional courts pending completion of the proposed alterations, (2) rental of space to house other Federal agencies to be displaced from existing Government-owned buildings to make way for the courts, (3) moving and space adjustments to leased space, (4) furnishings and equipment, and (5) preliminary planning for development of prospectuses. Summary of the total program, amounts provided for in this estimate, and balance of financing to be requested later, follows: JUSTIFICATION Suitable space must be provided to accommodate the 73 additional judgeships authorized in Public Law 87-36, timed as to availability in relation to dates of appointment of the judges. There is no reason to assume that the authorization will not be followed up by early appointments in view of the need recognized by the Congress for relieving crowded dockets in the judiciary. To the maximum possible extent the added space will be provided for on a permanent basis in (1) existing Government-owned buildings, or (2) in authorized public buildings projects now under construction or to be constructed over the next several years as funds are appropriated therefor. Pending completion of the alterations to existing structures or construction of new facilities, temporary reliance on leased space will be required as the judges are appointed. Within the foregoing basic determinations this supplemental estimate of $4,650,000 includes (1) $198,000 for preliminary planning and for design and supervision of alterations costing less than $200,000 each, (2) $946,000 to cover the alteration costs for these projects, (3) $2,613,000 for rental of additional space and incidental moving and related costs on an interim basis at 48 locations, (4) $747,000 for furnishings and equipment for 73 judgeships, and (5) $146,000 for administrative operations support. Elements of cost described in (1) and (2) above are detailed by location on exhibit B which follows. Rents and related costs under (3) above are summarized on exhibit C, and details of furnishings and equipment under (4) above are shown on exhibit D. No provision is made at this time for costs, aside from the $50,000 indicated above for preliminary planning, for the 26 alteration projects estimated to cost over $200,000 each and for which prospectuses must be developed and submitted for approval of the Committees on Public Works of the House and Senate pursuant to the terms of the Public Buildings Act of 1959. A listing of the 26 projects involved showing tentative magnitudes of costs totaling $13,055,000, appears on exhibit E. Funds for this purpose will be requested in a supplemental estimate of appropriation next spring after the project requirements are fully developed. A brief description of each budgeted activity follows: 1. Sites and expenses, $198,000.-Provides for preparation of drawings and specifications, including A/E contracts, printing and reproduction of drawings and specifications, surveys and bids and supervision and inspection of construction, and preliminary planning. 2. Alterations and improvements, $946,000.-Provides for cost of all construction work, air conditioning and built-in courtroom equipment involved in altering an estimated 58,028 net square feet of space for court facilities. The estimated cost averages $16.30 per net square foot. 3. Rents, moving, space adjustments, etc., $2,613,000.-Rental for varying periods up to June 30, 1963, to provide, directly or indirectly, space for temporary quarters of the judges, court officials, and courtrooms as well as space for housing agencies moved from Federal buildings to provide space for alterations and construction of permanent quarters; moving costs to permit relocation of activities from Federal buildings; moves within buildings to provide space for housing the court functions as well as space to be remodeled for permanent facilities; moves required to occupy permanent quarters and backfill the temporary quarters; and space adjustments necessary to adapt space for temporary use by the courts and other activities relocated to provide such space. 4. Furnishings and equipment, $747,000.-Provides for furniture, other furnishings, and equipment for 73 judgeships whether to be located in Governmentowned or leased space. 5. Administrative operations, $146,000.-Financial, administrative and legal services, field supervision, and legislative and business services to support this program are provided by the integrated staff organization of GSA financed by transfers to the administrative operations fund from funds provided herein. Mr. THOMAS. Tell us what this is all about. Mr. MOORE. Mr. Knott will handle this. FACILITIES TO ACCOMMODATE ADDITIONAL JUDGES Mr. KNOTT. Mr. Chairman, this is designed to provide the facilities which are required to fully implement the provisions of Public Law 87-36. Mr. THOMAS. For creation of 10 circuit judges and 63 district judges, making a total of 73. Mr. KNOTT. That is right, sir. This estimate would provide for the accommodation needed for all the judgeships, except in those instances where, in the case of 36 judges, it will be necessary to alter 26 buildings at a cost in excess of $200,000. That is not included in this estimate. Mr. THOMAS. You are asking today for $4,650,000. When you complete your job it is going to cost you $13,055,000. Mr. KNOTT. $17,705,000 would be the total. That would be for the 73 judges. Mr. THOMAS. This $4.6 million takes care of projects for 17 judges. That will leave 26 projects for judges unfunded. Mr. KNOTT. Yes, sir. The remaining 20 will be provided for in existing facilities without alteration or in new buildings. Mr. THOMAS. Explain the 17 projects for judgeships. Mr. KNOTT. The projects for these 17 judges would be at locations in public buildings where the cost of alterations would be less than $200,000. Mr. THOMAS. You need no specific authorization for those? Mr. THOMAS. Then for the 26 projects, which I talked to Mr. Olney about a while ago, you do not have the authorization. They cost more than $200,000. Mr. KNOTT. Right, sir. The chairman of the Public Works Committee has asked that we submit for his consideration a prospectus covering those projects. Mr. THOMAS. All we have to do is worry about the 22 and let Mr. Olney worry about the 26 for the time being. Is that the way the matter stands? Mr. KNOTT. That is within the framework of this justification, yes, sir. Mr. THOMAS. That is well put. Go ahead. Mr. KNOTT. In addition, you will notice that the actual alteration cost for the projects under $200,000 which are included here is $946,000. The other items include rentals, moving, space adjustments, furnishings and equipment. The "Furnishings and equipment" item does cover the entire need for the 73. That would include the 36 judges who would not be provided for in terms of facilities under this budget estimate. COSTS OF ALTERATION AND IMPROVEMENTS Mr. THOMAS. You have given us a very good table on pages 4, 5, and 6. We have to fish it out. Tell us where these projects are located and what the nature of the construction is. Confine it to your 17 judgeships. Mr. KNOTT. I will ask Mr. Schmidt to give us that detail. Mr. SCHMIDT. The 17 include the 10 circuit judges, 3 of which would be located in New York, 1 in Philadelphia, 2 in Richmond, 2 in New Orleans, 1 in Chicago, and 1 in Denver, all of which accommodations would be provided in existing buildings. |