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surplus ADP equipment will be located at the remaining three locations before the public works data processing system goes into operation

next year.

(b) Estimated monetray and other benefits.-At this time it is estimated that this investigation should save between $10,000 and $20,000 monthly.

6. Painting Contract Irregularities.

(a) Summary of investigation.-Painters under Government contracts at the National Bureau of Standards have revealed that contractors or subcontractors failed to follow Government specifications as to the number of coats of paint to be used. Because of the expensive nature of Government construction activities, the subcommittee is reviewing this particular problem in depth to determine the need for revisions in GSA inspection procedures.

(b) Estimated monetary and other benefits.-Because of the millions expended annually in construction, any improvements in GSA supervisory or inspection techniques will result in significant savings. An authoritative estimate of these savings cannot be made at this time.

INTERGOVERNMENTAL RELATIONS SUBCOMMITTEE

1. Drug Safety.

(a) Summary of investigation.-The subcommittee has been engaged in a comprehensive and intensive investigation of Government activities to assure the safety of drugs. Primary attention has been given to the activities of the Food and Drug Administration since this agency bears the major portion of the Federal Government's responsibility in this area. Attention has also been given, however, to the relevant activities of other Government agencies, as well as nongovernmental organizations and groups concerned with drug safety, with particular emphasis on their relationship to the Food and Drug Administration.

The investigation to date includes a study of the roles of these agencies and organizations in assuring the safety of drugs and a detailed examination of the following activities of the Food and Drug Administration: (1) monitoring the use of investigational drugs in humans; (2) evaluating the safety and effectiveness of new drugs for marketing; (3) maintaining surveillance over the safety of new drugs subsequent to their marketing; (4) monitoring drug manufacturing practices; (5) monitoring the advertising and promotion of prescription drugs; and (6) controlling drug abuse.

The subcommittee also examined in detail the activities of the Federal Trade Commission to prevent fraudulent or deceptive acts in the advertising and promotion of nonprescription drugs.

The subcommittee has heard witnesses from the Food and Drug Administration, the Federal Trade Commission, the National Institutes of Health, the Department of Medicine and Surgery of the Veterans' Administration, the American Medical Association, the Pharmaceutical Manufacturers Association, the American Pharmaceutical Association, and individual drug companies.

In addition to the 32 days of public hearings the investigation has entailed extensive consultations with officials and administrators of the Government agencies involved and other interested parties, examination of vast quantities of files and records, intensive study of pertinent books, reports and other published documents, and voluminous correspondence.

(b) Estimated monetary and other benefits. It is anticipated that the investigation will contribute significantly to improved administration of the laws designed to assure the safety of new drugs and, thereby, to greater health protection for the American people.

(c) Hearings. During the 89th Congress, hearings were held on March 23, 24; May 4; June 8, 9, 10, 24, 25; July 20, 22, 27; August 3, 10; and September 24, 1965, and on March 9, 10; May 25, 26; and June 7, 8, 9, 1966. During the 2d session of the 88th Congress hearings were held on this subject on March 24, 25; April 8, 22, 23, 28, 29; May 6; and June 3, 17, 18, 1964.

The printed hearing record now includes 5 volumes totaling almost 2,500 pages.

2. Management of Research Grants in the Public Health Service.

(a) Summary of investigation.-Beginning in the 87th Congress, the subcommittee has maintained close and continuous oversight of the Public Health Service and its principal research bureau, the National Institutes of Health, for the purpose of examining the agency's research-support activities and efforts to strengthen its management capability.

The subcommittee's investigation led to the issuance of two committee reports dealing with grant programs administered by the National Institutes of Health. These are "Health Research and Training: The Administration of Grants and Awards by the National Institutes of Health" (H. Rept. No. 321), April 28, 1961, and "Administration of Grants by the National Institutes of Health (Reexamination of Management Deficiencies)" (H. Rept. No. 1958), June 30, 1962.

Selected administrative policies and practices of the Public Health Service were studied during the 89th Congress, with particular reference to the agency's effectiveness in putting its stated research grant policies into actual operation.

(b) Estimated monetary and other benefits.-Total money savings cannot be estimated at this time, although sizable savings and recoveries have been made and are anticipated as a result of the subcommittee's investigations. In addition, the correction of management deficiencies brought to light by the subcommittee should bring better control of grant funds and other administrative improvements. (c) Hearings. Two days of hearings were held on June 29 and 30, 1965. The hearings have been printed.

3. Patent Rights.

(a) Summary of investigation. An investigation has been made of the Public Health Service's administration of the patent rights to new drug products and other inventions resulting from research supported by Federal funds.

(b) Estimated monetary and other benefits. It is anticipated that the subcommittee's investigation, when completed, will lead to more equitable and efficient arrangements for determining the rights to patentable inventions resulting from Government-supported research, and to greater protection of the Government's interest in such inven

tions.

4. Medical Care for Injured Federal Employees.

(a) Summary of investigation. The subcommittee initiated a study of possible savings through improved economy and efficiency in Federal expenditures for medical care for injured Federal employees. The study disclosed that the Federal Government spends about $9 million annually to provide medical care for injured Federal employees in non-Federal hospitals. However, it did not appear that worthwhile efforts were being made to reduce this cost through greater use of

available space in Federal hospitals for treatment of injured Federal employees.

(b) Estimated monetary and other benefits.-The situation has been discussed with officials of the Bureau of Employees Compensation and the subcommittee is following up to determine what corrective measures can and should be taken.

5. Recovery of Costs Attributable to Injuries to Federal Employees. (a) Summary of investigation.-The subcommittee began an inquiry into procedures of the Department of Labor relating to recovery of costs resulting from injuries to Federal employees in cases where private firms or individuals may be responsible for such injuries.

(b) Estimated monetary and other benefits.-The subcommittee's investigation has not yet progressed far enough for it to reach conclusions or make recommendations.

6. Coordination of Investigative and Enforcement Activities. (a) Summary of investigation. The subcommittee continued its study of coordination of investigative and enforcement activities of the Federal Government.

(b) Estimated monetary and other benefits.-Because of the subcommittee's interest in this subject, the Bureau of the Budget is making a review of Federal investigative activities with a view to improved coordination. The subcommittee expects to receive a report from the Bureau of the Budget on the results of its review and will give further attention to the situation at that time.

7. CCC Cotton Transactions.

(a) Summary of investigation.-The subcommittee studied transactions involving sales of CCC cotton by unlimited sales agencies, with particular reference to possible action by the Department of Agriculture to recover commission payments and damages.

(b) Estimated monetary and other benefits.-The subcommittee inquiry provided further evidence of the need for more effective coordination between the Department of Agriculture and the Department of Justice.

(c) Hearings.-Hearings were held on March 23 and 24, 1966. The hearings were not printed.

NATURAL RESOURCES AND POWER SUBCOMMITTEE

1. Water Pollution Control and Abatement.

(a) Summary of investigation.-The subcommittee continued its extensive investigation into (a) the causes, effects, and methods for alleviating all forms of water pollution, including industrial wastes, mine acids from both active and abandoned strip and other mines, radioactive wastes, garbage, oil spillage, continued use of combined sewers and storm drains, et cetera, and (b) the Federal Government's effectiveness in administering the present water pollution laws and grant-in-aid programs, including Federal enforcement efforts. The study included hearings in Rochester and Syracuse, N.Y., Toledo, Ohio, and Milwaukee, Wis., and inspections of water quality_conditions and pollution control treatment methods in those and other cities, with respect to the Great Lakes, Lakes Oneida, Onondaga, and the Finger Lakes, and the basins of those lakes, and the Milwaukee, Root, Pike, Maumee, Raisin, Niagara, Buffalo, Irondequoit, and other major rivers.

(b) Estimated monetary and other benefits.-The subcommittee's study of national water pollution problems is not yet complete, and it is not possible to estimate dollar savings as of this date. However, through its activities, the subcommittee has helped to energize the national program of water pollution control directed to the preservation and improvement of our critically important water resources. The subcommittee has, through its water pollution studies, investigations and hearings, helped to illuminate the issues involved, to establish the Federal Government's role of leadership, and to marshal public support for pollution control and abatement programs at Federal, State, and local levels.

(c) Hearings.-Eight days of hearings and inspections were held, as follows:

Rochester, N.Y., 1 day hearing and 1 day on-site inspection, July 22 and July 23, 1966, transcript of hearing printed.

Syracuse, NY, 1 day hearing and I day on-site inspection, August 19 and August 20, 1966, transcript of hearing printed. Toledo, Ohio, 1 day hearing and 1 day on-site inspection, September 9 and September 10, 1966, transcript of hearing printed.

Milwaukee, Wis., 1 day hearing and 1 day on-site inspection, September 16 and September 17, 1966, transcript of hearing printed.

2. Financing Construction of Combined Sewers Under the Federal Roads Program.

(a) Summary of investigation.-The subcommittee is examining the extent to which the Bureau of Public Roads finances, in roadway

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