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the result of using excess property instead of new property in the AID program.

Preliminary investigative work by the subcommittee substantiated to a considerable degree the conclusions expressed in these two reports. It was apparent from the testimony and records evaluated that certain regional bureaus of AID, particularly in Latin America, were not making efficient use of excess property much to the detriment of the U.S. taxpayer. Moreover, Congress in passing the 1965 Foreign Assistance Act, added new language enjoining AID to utilize excess personal property in lieu of procuring new items wherever practicable (Public Law 89-171, sec. 101; act of Sept. 6, 1965; 22 U.S.C. 2151). As a consequence, the subcommittee visited certain AID missions in Latin America to investigate excess property utilization there. This investigative trip resulted in House Report No. 1466, 89th Congress entitled "The Use of Excess Property by the U.S. Foreign AID Program in Latin America," and in significant improvement in the operation of the program.

Overseas mission directors have been ordered to pinpoint responsibility in each mission for screening new procurement proposals against excess property availability. AID's rehabilitation depots show a sharp overall increase in the turnover of equipment shipped to the program's many AID missions around the world. Standard provisions are being put into all development loan agreements requiring the screening of excess property lists prior to purchase of new items. Even so, it is apparent from the Agency's own records that certain regional bureaus are dragging their feet in the use of excess property. The subcommittee intends to make a special check of the progress of all regional bureaus.

In other testimony, AID reported that more and more of its excess property supply is coming from overseas sources. This reverses a trend that existed early in the program when most excess property used in AID operations came from the domestic supply in the United States. The Agency estimated that in the future approximately twothirds of the total program would come from foreign excess rather than domestic. At present, it is about 30-70. This eventually should help to alleviate some of the current handicaps on the availability of property for the school and hospital donation program in the United States.

The following table shows the increasing amounts of foreign excess which AID is utilizing:

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The Peace Corps has made only limited use of excess property in its programs because its primary mission is to provide manpower rather than commodities. Yet, investigation by the subcommittee in Latin America last November showed that many Peace Corps volunteers in the field believe excess property items could be put to good use. Arrangements also have been made with the Agency for International Development to provide oversea Peace Corps posts with information about excess property under AID control.

With respect to the viability of the donable property program, the report finds that the amount of property available for donation will in all probability decline in future years; that the character of surplus property being generated is undergoing a change from common use items to the highly exotic technical electronic and scientific equipment; that screening procedures by State agencies representing donees need tightening; and that use of the surplus Government property is extremely valuable to eligible donee organizations.

With respect to exchange/sale matters, the report concludes that the announced change in policy by the Department of Defense regarding use of its exchange/sale authority, is being accomplished without adequate information and data in certain important areas relating to property management and disposal.

The committee recommends that the Department of Defense hold in abeyance any change in its 1962 policy of making personal property under its control available for further Federal use on a nonreimbursable basis and for donation screening prior to exchange/sale, until more is known about the economies of each form of disposal and the Committee on Government Operations has had an opportunity to evaluate this information.

(b) Estimated monetary and other benefits.-In a November 8, 1966, letter to Chairman Dawson, the Assistant Secretary of Defense (Installations and Logistics) stated that pursuant to the specific request embodied in the committee's recommendation, the Department was continuing to hold in abeyance its implementation of the GSA's recent revision of the exchange/sale regulations. The letter added that the Department was planning to meet jointly with representatives of the General Services Administration, the Department of Health, Education, and Welfare, the General Accounting Office and possibly the Bureau of the Budget to review the committee report in detail.

Until the studies recommended in the report are concluded, it is not possible to estimate savings to the Government. There is ample reason and evidence to believe, however, that if the DOD change had been allowed to become effective, new procurement would have had to replace at great cost to the Government property now received by agencies from DOD through excess channels.

It can be added that the studies recommended by this report will result in a smoother functioning, more uniform disposal program involving Federal property costing billions of dollars at acquisition. (c) Hearings.-June 8 and 9, 1965, and August 23 and 24, 1966. Transcript printed.

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SPECIAL SUBCOMMITTEE ON DEATH VALLEY NATIONAL MONUMENT 1 1. "Death Valley National Monument (Furnace Creek Area-Water Rights and Related Matters)", House Report No. 193, 89th Congress, March 22, 1965. Fifth Report by the Committee on Government Operations.

(a) Summary of report. The report showed that the Government was not receiving its rightful share of the water being diverted by a private resort company from public lands in the Furnace Creek area of Death Valley National Monument. The report also found that the National Park Service had failed to fulfill its statutory responsibilities in administering the monument and made several recommendations to improve the development and administration of the monument.

(b) Estimated monetary and other benefits.-The investigation and report will help to protect the land and water rights of the United States within the Death Valley National Monument, but the amount of the monetary savings cannot be estimated at this time. (For additional related information, see pp. 91-92, infra.)

(e) Hearings.-Hearings on which this report are based were held on January 27-29, March 23, and April 21, 1964. Hearings printed.

1 This subcommittee was established Aug. 23, 1963. It completed its work and approved a proposed report before it expired at the close of the 88th Cong. The full committee approved the proposed report in March 1965.

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B. OTHER INVESTIGATIONS

FULL COMMITTEE

Pursuant to the direction of the chairman, the staff of the full committee handles a large number of matters alone or in cooperation with subcommittee staffs. Many of these have been referred to the committee by Members of Congress or by others. Some of the matters are in the nature of followups on committee reports or studies of General Accounting Office reports. Among the more significant are the following:

1. Department of Defense and Department of State-Study of Certain Overseas Operations.

(a) Summary.-For the information of the chairman of the full committee, a staff group of full committee and Foreign Operations and Government Information Subcommittee personnel prepared a nine-part report on the group's study and investigation of a number of matters contained in formal and informal reports of the Comptroller General of the United States. They covered aspects of our overseas military, diplomatic, and foreign-assistance operations. Information copies of the staff report were furnished to the DOD, the Department of State, and the Comptroller General. As a result, several actions have been taken by the affected agencies to improve the efficiency and economy of their operations in question.

For example, the Assistant Secretary of Defense reported on October 19, 1965, that the military departments have been requested to adjust their rate structures for overseas transient billeting facilities on a more equitable basis, giving full consideration to the type of accommodations furnished. This will establish a differential between the charges for large or luxury suites and small or less desirable accommodations.

Also, with respect to AID's Far Eastern Regional Excess Property Office, shop capacity is being improved. An agreement has been reached with the Army for providing services to AID under the program for advance acquisition of property authorized by section 608 of the Foreign Assistance Act of 1961, as amended (22 U.S.C. 2357). Also, a contract was being negotiated for a barter-type commercial repair arrangement in Korea, similar to one already in effect in Antwerp. Concerning the Far Eastern excess property program generally, personnel inadequacies will be improved by the filling of two positions and the authorizing of two additional positions.

(b) Estimated monetary and nonmonetary benefits.-

(i) Figures for estimated monetary benefits accruing from rate structure adjustments for overseas transient billeting have been requested as soon as compiled. In some cases, the facilities are supported by appropriated funds to the extent that their own operating revenues

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are not sufficient. Increases in such revenues, therefore, mean corresponding reductions in expenditures of appropriated moneys.

(ii) With respect to a more effective excess property utilization program in AID, no specific monetary benefits have been estimated for the above-mentioned changes. However, greater and better use of foreign and domestic excess property in the AID program means either reduced expenditure of appropriated money for foreign assistance or more foreign assistance for each appropriated dollar.

2. Identical Bidding in Public Procurement.

(a) Summary.-The committee has had an active interest in this subject since February of 1961, when it began consideration of proposed legislation to provide for public information on identical bids to public agencies, a measure subsequently passed by the House.1

On April 24, 1961, President Kennedy issued Executive Order 10936, requiring executive agencies to make reports to the Attorney General of identical bids submitted in advertised procurements and sales for more than $10,000. The Executive order also required the Attorney General to report to the President from time to time consolidating the identical bidding information received from the agencies. The Attorney General is directed to invite State and local governments to transmit to him reports on identical bidding.

The Third Report of the Attorney General to the President on identical bidding in public procurement was submitted February 1, 1965. The committee's review of this report disclosed that among the reporting agencies TVA and the AEC had the highest percentage of identical bids, with the Interior Department and NASA enjoying the lowest. Inquiries were sent to TVA, AEC, and Interior with respect to their standings.

In replying, the AEC noted that the Attorney General's report had based its ratio on total dollar value of procurements by the AEC alone, whereas the aggregate of advertised procurement by the AEC and its prime contractors (including its contractor-operators) had been double that amount. Thus, a ratio based on the latter figure would be only half as great as that listed in the Attorney General's report. The Commission also pointed out that much of its procurement was in electrical wire and cable and chemicals, among the group of products accounting for the largest volume of identical bidding. The Commission stated, however, that it was again emphasizing to its field offices the pertinent regulations on the reporting of identical bids. In its reply, the TVA, like the AEC, attributed part of the high percentage of identical bids to large procurements of electrical wire and cable. The TVA Chairman added, however, that they had sought to deal with the aluminum cable problem by considering identical bids as being no real competition and by then seeking their requirements at lower prices through readvertising or negotiation.

1 An outgrowth of this committee interest was adoption by the General Services Administration and the Department of Defense, in their respective procurement regulations, of requirements for certification of noncollusion in Federal procurement contracts. (41 CFR 1-1.317 and 1-2.201 (a) (28); 32 CFR 1-1.115 and 1–2.201 (a) (33)). See also item V.1, under Executive and Legislative Reorganization Subcommittee, infra.

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