Table 45 Excess, Surplus, and Foreign Excess Property 1/ Includes the United States, Puerto Rico, and the Virgin Islands. to some other agency. This excess materiel may have emanated either from supply system inventories or from equipment in use; in either case, accountability is dropped at the time of transfer to disposal channels and picked up in the property disposal account, shown in Table 45. The amount of property in disposal channels as of 30 June 1966 amounted to $2,650 million, which is $891 million less than was in this category a year ago. The decrease in domestic excess and surplus property (covering United States, Puerto Rico, and the Virgin Islands) amounted to $848 million; foreign excess decreased $43 million. Of the DOD total of $2,650 million on hand, the Navy (including Marine Corps) accounted for $1,008 million, or about 38 percent of the DOD total; Army, $333 million, 13 percent; and Air Force, $1,250 million, 47 percent. About $59 million of excess and surplus or about 2 percent of the total, was reported by the Defense Supply Agency. Domestic inventories account for 95 percent of the total, while foreign make up 5 percent. As far as the reporting components are concerned, the value of Army excess, surplus, and foreign excess property on hand at the end of fiscal year 1966 was about $178 million less than a year earlier, while the value of such Navy property was about $494 million less, and Air Force property of this kind decreased $192 million. DSA property was reduced about $28 million. As the footnote to Table 45 indicates, the data shown do not include combatant ships which are in process of disposal, because combatant ships are not considered "personal property" under the terms of the statutes governing disposal of Government property. The value of those ships that have not been disposed of amounted to $242.3 million as of 30 June 1966. This value is included in Section B.1, above, devoted to Weapons and Other Military Equipment in Use, and in Tables 1 and 2. 5. Government-Provided Material (Other than from Supply System) This is material which has been purchased by the Government from one contractor and furnished to another, generally for incorporation in an end item being fabricated, or has been acquired by the manufacturer under the terms of his contract for Government account for the same purpose. Examples of such equipment are aircraft engines, electronic systems, and other parts which are furnished to a contractor by procurement offices for incorporation in an airplane, ship, or other weapon. These items do not go through the supply system and therefore are not included in the "Stocks in Hands of Contractors" shown in supply system tables. When the end item has been delivered, the value of these components is included in the value of the end item. As of any given time, however, substantial dollar values of this Government-owned property are in the contractor's hands awaiting further fabrication. Accountability for such property is vested in the contractor in terms of item and control accounts. The amount of such property in the hands of contractors is reported in Table 1 under the caption of Government-provided property. It has been growing, as the procedures provided under the Armed Services Procurement Regulation for reporting the value of this property which are incorporated into new contracts or extensions of existing contracts, are extended to a greater number of contracts. Public Law 883, 80th Congress, the "National Industrial Reserve Act of 1948," provides for establishing "adequate measures whereby an essential nucleus of Government-owned industrial plants and a national reserve of machine tools and industrial manufacturing equipment may be assured for immediate use to supply the needs of the Armed Forces in time of national emergency or in anticipation thereof." The properties still owned by the Government are managed by the General Services Administration (as successor to the Federal Works Agency) under general policies established by the Secretary of Defense. Since the Department of Defense has a contingent claim and production priority rights in all the National Industrial Reserve plants, including those which GSA has disposed of or leased with a National Security Clause, data on these are included in this section of this report. However, none of the properties in this Reserve have been included in the totals for real property (Part I) or metalworking equipment (Part II, Section B) of this report because they are held by the General Services Administration. 2. Plant Reserve The National Industrial Plant Reserve contained 11 facilities as of 30 June 1966, the same number as at the end of the preceding year. Only portions of some of the facilities are being set aside for use by the military services. The sponsoring military department and status of these plants at the end of fiscal year 1966 were: |