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1 Total costs for California include $174,880 of expense of deliveries to donees. The entire net income was refunded to donees.

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TABLE 8.-Relation of selected items of cost to total cost, fiscal year ended June 30, 1961-Continued

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APPENDIX 4: LETTER FROM HON. JOHN W. MCCORMACK, CHAIRMAN, SPECIAL SUBCOMMITTEE ON DONABLE PROPERTY, TO HON. MAURICE STANS, NOVEMBER 22, 1960, WITH ATTACHMENTS

HOUSE OF REPRESENTATIVES,
OFFICE OF THE MAJORITY LEADER,
Washington, D.C., November 22, 1960.

Hon. MAURICE STANS,

Director, Bureau of the Budget,

Washington, D.C.

DEAR MR. STANS: During the past 2 months I have had the staff administrator of the Special Subcommittee on Donable Property review the donable program in order to determine the extent to which it might be improved to best serve the national interests.

As the result of conferences with interested executive agencies and attendance at several meetings of Federal and State agencies it is my understanding that a bottleneck has developed with respect to the amount of screening time available for the purposes of education, health, and civil defense. It seems to me that considering the interests involved and the fact that the donable program utilizes some $400 million in surplus property per year that the 15 days' screening time made available for such meritorious purposes concurrently with other activities is inadequate. It also occurs to me that the Federal utilization program itself may be handicapped by the short screening period available to it, and that usable property may be sold at a small return to the taxpayers.

I suggest, in view of the above, that your staff with participating agencies reevaluate the situation and take such administrative action as may be necessary. If adequate administrative action cannot be taken under existing legislation your recommendations for legislation would be appreciated. Copies of this letter are being sent to the Secretaries of Health, Education, and Welfare and Defense and to the Administrator of General Services.

Sincerely yours,

JOHN W. McCORMACK,

Chairman, Special Subcommittee on Donable Property.

Hon. JOHN W. McCORMACK,

EXECUTIVE OFFICE OF THE PRESIDENT,
BUREAU OF THE BUDGET,
Washington, D.C., November 30, 1960.

Chairman, Special Subcommittee on Donable Properly, Committee on Government Operations, House of Representatives, Washington 25, D.C.

MY DEAR MR. CHAIRMAN: This is in response to your letter of November 22, 1960, suggesting that we arrange with the various executive agencies concerned to review the existing screening procedures for surplus property.

Our staff has been analyzing the excess and surplus property time schedules and procedures. It is important to accomplish disposal actions promptly in order to reduce the Government's storage and handling costs and avoid losses through deterioration of property. The total disposal process already entails delays up to about 4 months, even if planned schedules are maintained perfectly. We hope it will not be necessary to extend these delays further.

On the other hand, it is necessary to allow sufficient time for Federal agencies to review listings of available excess in order to promote maximum utilization and to avoid possibilities of concurrent surplus disposal and purchasing of similar property.

Although these objectives seem to be in conflict, we believe they should be attainable with proper overall scheduling of all phases of excess and surplus property disposal, including a reasonable time allowance for the various donation programs.

Arrangements will be made with the other interested agencies to review the problem along the lines you have suggested, and we will keep you informed of the findings and of any actions taken.

Sincerely yours,

MAURICE H. STANS, Director,

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C. DOD property reported to GSA only ($3,000 or less per line item) in Oatalogs or on SF's 120:

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DOD Contractor Inventory property Military Screening

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reported to GSA:

GSA

30 days

15 days

GSA Catalog Preparation Time DOD Priority DOD & Federal Agencies

15 days

ARD

*The ARD's are set by the local disposal officials and should be obtained from them.

15 days

SEA and DHEW

First Come, First Served 15 days

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