ment purchase rights, questions of the application of the Federal Property and Administrative Services Act arose. The staff examined the matter and the question was referred to the General Accounting Office.

GSA took the position, and the GAO agreed, that the purchase and leaseback transactions involved could be considered together as a method of procurement and could be resorted to for the purpose of enabling the leasing firm to acquire the equipment and then lease it to the Government at a lower rental than it was previously paying, and not as a procurement for the purpose of vesting title to the equipment in the Government. The GAO was in agreement with the objective of conserving public funds by such a means so as to obtain more favorable terms for the Government; however, it cautioned GSA to exercise its full authority to determine the most economical method of procurement in each case.

(b) Estimated monetary or other benefits.-Not reported at this time.

8. Closing of Springfield Arsenal and Related Contract Awards. (a) Summary of investigation.-Several Members forwarded or originated inquiries related to the Defense Department decision to close Springfield Armory, and to certain contracts cited in connection with the decision. The staff performed considerable research on the contract awards, production matters, and companies involved in these questions. A staff memorandum was prepared and furnished to the interested Members.

(b) Estimated monetary or other benefits.-Not reported.

9. Army procurement of Electrical Filters.

(a) Summary of investigation.—A complaint was received through a Member's office concerning an Army contract award for the production of certain electrical filters. An examination of the detailed actions and procedures of the award was performed by the staff. No irregularities, or indications that appropriate procurement statutes and regulations were not being observed, were found. The Member was provided with the results of the investigation.

(b) Estimated monetary or other benefits.-None; such reviews are part of the committee program of spot checking various types of procurement to assure fairness and compliance with prescribed procedures.

10. Personnel problems at Rock Island Arsenal.

(a) Summary of investigation.-The subcommittee received complaints from a Member's office and from individuals alleging personnel organization and morale problems at the Rock Island Arsenal that were said to be causing unusual personnel turnover and inefficiency in the work of certain divisions. Staff investigation and coordination of other investigations was completed.

(b) Estimated monetary and other benefits.-Separate investigations were requested by the Army and the Bureau of Investigations, U.S. Civil Service Commission. The staff reviewed the reports of

these investigations. The matter was brought to the attention of the Secretary of the Army. The Office of the Secretary of the Army requested the Army Materiel Command to undertake compliance with the recommendations of the Civil Service Commission report.

11. Army procurement of Heavy-Duty Typewriters for Consolidated Armed Forces Examining and Induction Stations.

(a) Summary of investigation.-The subcommittee received a series of complaints and allegations concerning the procurement of certain special-purpose heavy-duty typewriters for the newly reorganized Armed Forces Examining and Induction Stations. The questions raised by the procurement related to (a) whether the specifications were restrictive or properly written; (b) whether the material purchased met the specifications; and (c) whether the planning for the purchase, adoption, and use of the equipment was sufficient and reasonable. The staff reviewed all the steps of the procurement, and the agency actions in making the required determinations and decisions. In addition, the staff visited the first of the new consolidated AFEIS after it began operations and after it had begun to put the new equipment into use for providing enlistment and induction data on an accelerated basis.

(b) Estimated monetary and other benefits. It is estimated that the new equipment will provide more data at less cost on a daily basis (which previously could be compiled only monthly, a month later) than ever before. The investigation found no basis for questioning the procurement or the planning and initiation of the consolidated offices. The offices and the information system should result in substantial savings in operations, use of doctors' and others' time, and in the fiscal and budget planning for enlistments and inductions. Specific figures are not yet available.

12. Procurement of Subsistence Items by Defense Supply Agency.

(a) Summary of investigation.—A complaint was received through a Member's office concerning the organization of operations of subsistence purchasing offices of the Defense Personnel Support Center, Defense Supply Agency. The allegation was that procurement by visual selection methods in central market areas was resulting in higher costs for items and for transportation to other bases, than would local purchase by the bases.

The staff reviewed all available data concerning the organization of DSA and its field organization for the procurement of produce and other subsistence items. The staff also visited and received all available information from DSA headquarters on current operations. It was found that DSA takes the position that current methods are not only cheaper but more efficient than other means of procuring subsistence items. Furthermore, a number of separate reorganizations and changes are being made in the DSA organization to bring about additional consolidations and improvements.

(b) Estimated monetary and other benefits.-No basis was found for further investigation at this time of the DSA methods. However, the matter can be further explored in the next Congress after all the

changes proposed by the DSA have been completed and operating data under these arrangements have been compiled.

13. Military Shoe Procurement.

(a) Summary of investigation.-A request was received from several Members and referred to the subcommittee, concerning rising prices of shoes and other footwear procured by the Department of Defense, the hide export control order of the Commerce Department, and related matters. The staff conducted a number of interviews and attended briefings and conferences with the Army, the Defense Supply Agency, the Commerce Department, and the Renegotiation Board. Procurement, economic, cost, import and export, inventory, and other data were requested and examined.

(b) Estimated monetary and other benefits.-While the cause of higher prices in all cases could not be determined, it was found that one primary cause of higher leather footwear prices was a rise in the cost of leather. The export control order in question was an attempt to deal with that problem. Another major cause was that the higher volume of Defense Department orders stemming from the war in Vietnam was compelling contracts with producers who do not ordinarily take such orders. In general, these producers have higher overhead and production cost histories. With these two factors. present, other contributing causes would be difficult to assess.

14. Shortage of Military Tropical Combat Boots.

(a) Summary of investigation. A number of allegations of shortages in supplies of military tropical boots for use in Vietnam were received via the press, Members' offices, and others. The staff conducted interviews, discussions, and briefings, with Army, Defense Supply Agency, and other affected military offices. Data were requested and received on the development, procurement, and production history of the item. Current deliveries and shipments to Vietnam were checked.

(b) Estimated monetary and other benefits. It was indicated by all offices that the primary cause of scheduling difficulties was the time that had been required to develop, standardize, and authorize the boots for issue in Vietnam and as a standard tropical item. Once this had been completed, it was found that all possible steps had been taken to qualify additional producers and place orders in quantity for early delivery. The subcommittee was assured that all steps were taken at the time to make the supply on hand available to combat troops in Vietnam as first priority, and to deliver shipments as fast as they came off the production line.

GOVERNMENT ACTIVITIES SUBCOMMITTEE

1. FAA-ADP Procurement Complaint.

(a) Summary of investigation. On January 27, the subcommittee completed review of a complaint filed by Representative Joseph Karth relating to the procurement of automatic data processing punched card equipment by a Federal Aviation Agency regional office. The complaint alleged that the UNIVAC Division of the Sperry Rand Corp. was not afforded a fair and equal opportunity to participate in the procurement of these systems.

After thorough evaluation of the material furnished the subcommittee and lengthy discussions with FAA officials, Congressman Karth was advised that the complaint against FAA was justified. Even though pertinent Bureau of the Budget circulars requiring the broadest competition possible were not mandatory, as FAA alleged, protection of the expenditure of Federal funds requires that, if possible, all manufacturers be given the opportunity to submit proposals.

As a result of this investigation, the subcommittee recommended that FAA give all ADP manufacturers an opportunity to submit proposals for more efficient and economical systems than those procured. The systems had been acquired on a 30-day basis and the Government would not suffer as a result of the termination of the existing lease. In the course of the investigation, the subcommittee uncovered additional evidence of shortcomings in FAA contract procedures and its internal audit system. It was further recommended that FAA again consider adoption of the subcommittee's recommendation concerning internal audit systems and also review the deficiencies in its procurement procedures.

(b) Estimated monetary and other benefits.-Adoption of the subcommittee's recommendations should bring about improved procurement practices by the FAA resulting in fairer treatment of manufacturers and undeterminable but substantial savings to the Government.

2. FAA Aircraft Evacuation Standards.

(a) Summary of investigation.-The subcommittee has been concerned for some time with the manner in which the Federal Aviation Agency conducted its aircraft evacuation tests. The subcommittee learned early in 1965 that some aircraft manufacturers were contemplating extending the fuselage lengths of their jet-type transports enabling them to carry larger numbers of passengers.

The subcommittee initiated an investigation to determine whether the FAA had or would perform adequate evacuation tests before approving the use of the extended fuselage transports. As a result of this and previous similar investigations by the subcommittee, the FAA did revise its evacuation test procedures. The more significant

improvements are that the participants in the test will not be permitted to practice the evacuation prior to the actual test nor will they be informed in advance which exits would be available for use, and a representative passenger load must be used.

While these improvements are steps in the right direction toward safer air travel, the subcommittee has a continuing interest in the advancement of air safety and will continue the investigations in that area.

(b) Estimated monetary and other benefits.-This investigation was not intended to result in measurable monetary benefits but in a possible saving of human lives.

3. FAA Air Traffic Control Operations.

(a) Summary of investigation.-The problem of safe and effective air traffic control on the Nation's airways at our increasingly congested airports becomes more critical each day. The purpose of this investigation was to review progress in the development of the Nation's new air traffic control system and determine whether our efforts in this vital field were keeping pace with the need.

(b) Estimated monetary and other benefits.-The investigation focused public attention on the traffic control problem and what the Federal Government is doing to meet it. Continuing review of air traffic control operations in FAA will make it possible for prompt remedial action to be taken should deficiencies develop in the FAA

program.

(c) Hearings.-Hearings were held on April 26 and 27, 1966. Hearings printed.

4. Interagency Motor Pool Operations.

(a) Summary of investigation.-The General Accounting Office is undertaking a general audit review under the direction of the subcommittee of GSA motor pool operations in an effort to determine guidelines to measure the effectiveness of these operations and to uncover any latent deficiencies that may exist in them at this time.

(b) Estimated monetary and other benefits.-Because of the Government's multimillion-dollar investment in motor pools, it is essential that these operations be conducted in the most efficient and economical manner. This investigation could lead to increased efficiency in motor pool operation with resulting savings which could amount into the millions annually.

5. Data Processing Acquisition in the Department of the Navy.

(a) Summary of investigation.-In March 1966, the subcommittee learned that the Navy intended to acquisition additional data processing equipment to meet an unsophisticated, nonpriority requirement at nine public works centers in the United States and Pacific area. It was also ascertained that one ADP manufacturer had even recommended the use of existing unused Government capacity in lieu of new procurement. The investigation has resulted in the Navy locating existing capacity at six of the nine locations, and BOB officials predict that