which was submitted to the Bureau of the Budget in March of 1963, is still in a deferred status at the request of the Bureau of the Budget. The Bureau of the Budget indicated in a letter dated October 3, 1963, to the committee several alternatives of a more basic nature that it was considering.

DUPLICATION IN ROAD CONSTRUCTION ACTIVITIES (Recommendation No. 5):

The Secretary of Commerce and the Secretary of the Interior should determine a logical distinction between road construction work to be undertaken by the Park Service and that which should properly be delegated to the Bureau of Public Roads based upon the size and nature of the project. Following this agreement, funds covering projects to be performed by the Bureau of Public Roads should be transferred to that agency, under the express proviso that they not be expended without specific Park Service approval of overall project design and location.

RESULTS.-The Department of Commerce has advised the subcommittee that:

We had previously advised you of the revised agreement between the Bureau of Public Roads and the National Park Service, which was entered into to utilize to the fullest extent possible the professional engineering skills of the Bureau in the planning and construction of parkways and major park roads. In line with this agreement, the Bureau of Public Roads and the Park Service began work on a number of identified operating problems, including such matters as design standards, service and landscape standards, preliminary engineering, funds, and programing procedures. At least two of the working groups have completed studies of their assigned problems and progress has been made on others. While we are not satisfied with the rate of progress on these matters, the collaboration of the Park Service has been encouraging and we are hopeful regarding the prospects of working out the standards and guidelines that will make possible the most efficient working relationships between the Bureau of Public Roads and the National Park Service.

ABOLISHMENT OF PUBLIC ROADS REGION 15 HEADQUARTERS OFFICE (Recommendation No. 6):

Region 15 headquarters office at Falls Church, Va., should be abolished and the supervisory functions transferred to Public Roads' regional offices in Hagerstown, Md., and Atlanta, Ga.

RESULTS.-The Department of Commerce has advised the subcommittee that:

In our earlier report to the committee on this item, we advised that after thorough study of the matter the Department concluded that region 15 of the Bureau of Public Roads

61-207-66 4

should be retained. A copy of the evaluation report made
by the Department's Office of Management and Organization
was forwarded to the committee. The Department's con-
clusion was based, in part, on the internal reorganization of
region 15, then underway.

The reorganization resulted in a reduction of 25 positions.
In January 1965, a further reduction of 30 positions was
accomplished by the transfer of the Pentagon Network and
Shirley Highway maintenance responsibility to the Common-
wealth of Virginia. Also, through continuing regional
observations of field operations, we were able to eliminate
the Roanoke District Office under region 15, and transfer
the active projects to the jurisdiction of adjacent districts.
This change resulted in the reduction of three positions.

THE GREAT LAKES PILOTAGE ADMINISTRATION (Recommendation No. 7):

The Secretary of Commerce should consult with the Secretary of the Treasury and the Secretary of State for the purpose of recommending to Congress the transfer of the functions of the Great Lakes Pilotage Administration to the Coast Guard and the State Department at the earliest possible date.

RESULTS. Under pending legislation, recommended by the President, to establish a separate Department of Transportation, the activities of the Great Lakes Pilotage Administration would be transferred to the new Department.

[H. Rept. 206, 88th Cong., 1st sess.]

SURVEY OF SELECTED ACTIVITIES (PART 2-EFFICIENCY AND ECONOMY IN THE SMALL BUSINESS ADMINISTRATION)

First Report by the Committee on Government Operations

(Submitted to the Speaker April 10, 1963)

The Small Business Administration was the subject of the second hearing in the "survey of selected activities." As in the case of other departments and agencies, management control functions, efficiency measurement, and the agency's annual report were reviewed. Particular attention was also given to the SBA loan program, the operation of SBA field offices, and the assignment of SBA procurement representatives.

The committee was particularly pleased to note the rising trend in bank participation in the small business loan program and in Federal procurement contract set-asides.

RECOMMENDATIONS

GOVERNMENT-WIDE POLICY ON FEES (Recommendation No. 1):

An appropriate office of the executive branch of Government should review the program of the various agencies making or guaranteeing loans to determine whether a fair, reasonable, and more consistent Government-wide policy on such fees can be established.

RESULTS. The Small Business Administration has advised the subcommittee that:

It is our understanding that the Bureau of the Budget plans to initiate a study to determine the feasibility of a consistent Government-wide policy on application and other fees charged by agencies making or guaranteeing loans. Needless to say, SBA is prepared to participate actively with BOB, in conjunction with the other Federal credit agencies, in the early development of criteria for applying user charges to loan programs.

REVIEW OF FIELD OFFICE OPERATIONS (Recommendation No. 2):

The SBA Administrator and the Secretary of Commerce should review field office operations to determine the possibility of a closer working relationship aimed at saving office overhead and extending greater service and convenience to small businessmen desirous of assistance.

RESULTS.-The Small Business Administration has advised the subcommittee that:

A review of field office operations was conducted by a survey team consisting of Small Business Administration, Department of Commerce, and Bureau of the Budget personnel during calendar year 1964. The report of this survey, dated June 24, 1965, was transmitted to the SBA Administrator by the Director, Bureau of the Budget, on July 13, 1965. The Executive Administrator replied to the Director, Bureau of the Budget, on September 26, 1965, stating the Agency's position concerning the recommendations made by the survey team.

The recommendations of the survey team supported in most respects the earlier recommendations of the committee and have resulted in a closer working relationship between SBA and the Department of Commerce.

DUPLICATION IN PAMPHLETS AND BOOKLETS (Recommendation No. 3):

There should be closer liaison with the Commerce Department and tighter control within SBA to avoid unnecessary duplication in pamphlets and booklets.

RESULTS.-The Small Business Administration has advised the subcommittee that:

The survey team included a similar recommendation in its report. SBA has continued to advise the Office of Marketing and Services, Business and Defense Services Administration, Department of Commerce, of proposed publications by means of an annual "Survey of Prospective SBA Publications," last conducted on August 25, 1965.

INTERNAL MANAGEMENT FUNCTIONS (Recommendation No. 4):

SBA internal management functions should be reorganized to av id overlapping in responsibility, duplication in effort, and generally so as to conform with the basic criteria recommended by this committee.

RESULTS. The Small Business Administration has advised the subcommittee that:

The audit functions of this agency have been reorganized as recommended in the report. The Office of Audits plans and directs comprehensive audit, program analysis and investigations programs for the agency, reports to the Administrator on findings resulting from audits, inspections, and investigations, and makes recommendations for changes in policies and procedures for the improvement of programs of assistance to small business and improvements in the administrative operations of the agency.

MEASUREMENT OF OVERALL EFFICIENCY OF OPERATIONS (Recommendation No. 5):

SBA, along with other departments and agencies of Government, should undertake the development of effective means to measure the overall efficiency of operations.

RESULTS.-The Small Business Administration has advised the subcommittee that:

For a number of years SBA has used a work measurement system for the purpose of determining and evaluating employee performance in the field offices. The system covers all technical employees assigned to the financial assistance programs, procurement and management assistance programs, and attorneys in the field offices. The data developed

from the system has been used in the preparation of budgetary requests and the staffing of field offices. Substantial savings have been achieved through the application of standards developed under the work measurement system. Productivity has been increased and our budgetary workload standards have been adjusted accordingly. For example, a comparison of standards in effect at the time of the hearings with those in effect today shows an increase for processing regular business loans from 6%1⁄2 to 10 per man-month, and for loan administration from 150 to 245 per man-month for bank-serviced regular business loans. SBA is conducting a feasibility study to revise the accounting system and program reporting to present to management more meaningful data for decision making. One aspect of this study is to determine unit costs for the various, loan programs by field office.

CONTENTS OF ANNUAL REPORT TO CONGRESS (Recommendation No. 6):

In keeping with the criteria established by this committee, the SBA should review the contents of its annual report to Congress for the purpose of including information indicative of the efficiency and economy of operations.

RESULTS. The Small Business Administration has advised the subcommittee that:

Pursuant to the committee's recommendation, additional information has been included each year in the agency's annual report, beginning with the report for the year ended December 31, 1962, as follows:

(1) Use of administrative expense funds by activity within each of the major programs such as business loans, disaster loans, investment and development company loans, and procurement and management assistance. The breakdown has been modified from year to year as necessary to recognize new programs and modifications in existing programs.

(2) Assignment of employees by office in Washington and the field, distributed as applicable by program or job category.

(3) Data concerning actual and projected losses under each of the respective loan programs based on an annual evaluation of loss experience in relation to the rates used to establish loss reserves.

(4) Historical data on revolving fund income and expense by major program for comparison with current year figures.