Senator ALLOTT. May I interject a question here to straighten out my thinking.

Do we furnish your capital for construction in this committee? It is not through GSA?

Mr. KELLY. We use the General Services Administration in the performance of the work, but we seek the funds.

DELAY IN CONSTRUCTION PROGRAM

Senator HILL. In that connection, Mr. Kelly, did we not put these funds in some time ago for this construction, way back in fiscal 1964? According to the information I have, we provided some $3,800,000 in 1964 for planning costs and for equipment to be located in district offices in New Orleans and Seattle, and planning funds for Denver and Philadelphia. Have the plans yet been concluded on these offices?

Dr. GODDARD. The design contracts have been let in many instances and many will be completed by June of 1966. Construction contracts will be let between November of 1966 and May of 1967.

Senator HILL. Why has there been so much delay?

Dr. GODDARD. There has been a good deal of delay and in part it has been due to the changeover required in the specifications. Then there was long debate about the needs in terms of the various structural changes in the buildings.

I know that in spite of that change there were additional delays which I have looked into. In some ways I feel it was in part a failure on the part of the agency's personnel to follow up with GSA and keep hammering at them to get this job done. I am also equally aware that we badly need these laboratories to handle our workload in the field. I have directed the Acting Assistant Commissioner for Administration to report to me on the first of every month progress made on the construction program until we have these buildings in hand. I can assure you that we will follow these closely from this date forward. Senator HILL. The $3,800,000 provided for fiscal year 1964 was for Federal construction. That was not for lease, was it?

Mr. KELLY. That was the year we decided to change over. We started this plan for modernizing the laboratories as long-lease facilities. We then concluded that it would be wiser and more economic to shift over to construction.

When we came to the Congress and asked for the funds for construction, we were significantly overoptimistic as to how rapidly we could make the transition and what the costs involved were. As Dr. Goddard says, when we faced up to reality we had quite a bit of work to do. Due to the many problems, we had to come back here to ask you for additional funds for completion, because we had underestiinated what it would cost to build these types of facilities.

Senator HILL. The transition then might be primarily the cause for the delay?

Mr. KELLY. I think that is true, but in other areas of our construction programs, we have had substantial evidence of overoptimism as to how fast we can determine the program of requirements and design a facility and construct it. Similar to the review that Dr. Goddard made, reviews were made at other places including the Public Health Service, and a long period of time elapsed between the studies and the time we were able to go forward.

Dr. GODDARD. These facilities are badly needed, and as I say, we will give careful consideration to make sure that no further delay within our control will occur.

TYPE OF FACILITIES

Senator ALLOTT. I have, on page 101, a list of these various construction projects which total $13 million. Would you kindly explain for me, for example, are these basically laboratories or laboratories and office spaces?

Dr. GODDARD. These are both, Senator Allott. We have in each of these buildings laboratories which are designed to support our fieldwork. As you will recall, our investigators sample the produce that enters into Interstate Commerce, the drugs at the point of manufacture. They look for pesticide residue on crops, and a wide number of activities, such as imports to mention another category. The samples must then be brought into the laboratory and a precise determination made. So we have space for administrative work and laboratory work. It is about a 50-50 ratio.

Senator ALLOTT. The statement would apply to all of these buildings?

Dr. GODDARD. It would indeed.

DENVER SITE

Senator ALLOTT. With respect to Denver, have you determined where that site will be located?

Dr. GODDARD. For the site, we have an architect-engineer working on this and it is in the northeast part of Denver.

Mr. SPARER. It is bounded on the southwest by 22d Street and on the northwest by Stout Street.

Dr. GODDARD. May I provide a more accurate description for the record?

Senator ALLOTT. Yes. You have acquired a site already?

Dr. GODDARD. Yes, sir.

Senator HILL. Would you furnish that information for the record then please.

(The information follows:)

The Denver site is located on the corner of East 22d Street and Stout Street in the northeast section of the city.

DENVER RESEARCH FACILITIES

Senator ALLOTT. Where are you now housing your research facilities in Denver?

Dr. GODDARD. We are using a building at the Denver Federal Complex, a facility with which I am well acquainted, because I served there as the medical officer in 1951 and 1952. It is an outdated facility and we badly need this space.

Senator ALLOTT. I know that. That is all I have, Mr. Chairman. Senator HILL. You may proceed, Doctor.

REQUEST FOR FIXED EQUIPMENT

Dr. GODDARD. An additional $1 million is requested to provide fixed. equipment for Chicago, New Orleans, and Seattle district offices. In

1962, when the lease-construction program was still in effect, fixed equipment funds were appropriated in FDA's annual appropriation act for these offices. Equipment contracts were executed. However, because of the changeover to direct Federal construction and the delays in that program, FDA has not been able to notify the contractors to fabricate this equipment. A request is currently pending before the General Accounting Office for a review of this matter. It is anticipated that these existing contracts will be canceled. In this event, additional funds would need to be authorized to provide for the fixed equipment. Of the previously appropriated funds, $732,000 would lapse and revert to the Treasury.

CONSTRUCTION OF HEADQUARTERS LABORATORY FACILITIES

Mr. Chairman, I would like particularly to urge favorable consideration of an item included in the budget for planning a new research facility. This facility would house the scientific staff that FDA needs to hire between now and 1970 in order to continue to make progress in answering the scientific questions facing the agency.

This committee is aware that FDA has for too long housed its laboratory research staff in inadequate facilities. Unless we can provide first-quality equipment and facilities for our scientists, we cannot hope to recruit and retain first-quality scientists. Unless space is available, we cannot expand our laboratory research efforts to provide the answers we need to make decisions on matters vital to the Nation's health. An amount of $950,000 in planning funds is requested to plan a laboratory that will house approximately 650 employees.

Senator HILL. Last year, as I recall, this committee put in $604,000. Dr. GODDARD. That is my understanding.

Senator HILL. This was at Beltsville, Md., for approximately 450 scientists and supporting personnel in 1969. The House previously raised a question as to whether the work in the headquarters laboratory should be decentralized to field laboratories, and they asked that a study be made of this matter.

Is it your idea to carry forward with what the committee stated in its report last year?

Dr. GODDARD. Yes, sir, but I might note that the location of the research facility is in the hands of the Departmnt at this time. Mr. Kelly may wish to comment on that.

SUBMISSION OF REPORT BY DEPARTMENT

Mr. KELLY. The House conference report called for a report from the Department on this, and we prepared the report in support of this concept that we would like to develop.

Inasmuch as we have both a new Secretary and a new Commissioner of the Food and Drug Administration, although we had a draft report ready to come up, the Secretary felt it would be wiser action to ask the House and Senate to give us a little additional time so we could work with the new staff and revised circumstances and make sure that what we were coming before you with was a suitable plan. I think two things ought to be emphasized-one, we hope to have this report in your hands before you have acted on the bill.

Senator HILL. Before acting on the pending bill?

Mr. KELLY. Yes. And secondly, there is no question about the need for the expanded facilities. The question is, the best location of facilities to accomplish the overall mission.

Senator HILL. You will let us have your report and your best judgment on it before we act in this Senate committee?

Mr. KELLY. That is correct.

Senator ALLOTT. In the planning and construction money you are asking for on this building, and I ask this more as a member of the Independent Offices Appropriations Subcommittee rather than as a member of this committee, where do you plan to construct?

Dr. GODDARD. The Department has that matter in hand. We have made a report to them of our recommendation.

Senator ALLOTT. Do you mean GSA?

Mr. KELLY. No, HEW. This was based on building this facility at Beltsville where we now have two facilities for the Food and Drug Administration. The House has raised questions as to the appropriateness of the amount of staff that we would like to have in the Washington metropolitan area.

Last year, you may recall, the Senate asked similar questions. An amendment was incorporated into the bill designed to maintain the percentage of departmental staff in the Washington metropolitan area at a strength no greater than it had been in the past.

Senator ALLOTT. Basically we would not be fighting for more downtown?

Mr. KELLY. No, sir.

Senator ALLOTT. They are going to start taxing us on that pretty quick.

Dr. GODDARD. If Beltsville is the site, it will be next to existing facilities.

Senator HILL. You may proceed.

REQUEST FOR PLANNING FUNDS

Dr. GODDARD. You will recall that the fiscal year 1966 President's budget requested funds for planning such a laboratory at Beltsville. However, planning authority for that facility, although initially approved by this committee, was not included in the fiscal year 1966 appropriation.

I recognize, Mr. Chairman, that there have been delays encounted in FDA's construction program. I have explored these delays in detail with my scientific and management staffs. With all of our buildings currently under design contract, I feel confident that the significant delays are behind us. I have instructed my staff to report to me regularly on the progress of our construction programs, and I intend to assure that this program moves forward. I believe it is vital for FDA to have the research facilities it needs to answer the scientific problems ahead. I respectfully request your favorable consideration of this item.

CONCLUSION

Mr. Chairman, I have highlighted the major features of this budget request. I have reviewed the request in detail with my staff. I am very much aware of the tremendous responsibilities facing this

agency. In accepting the post as Commissioner of Food and Drugs, I committed all of my energies to lead the agency to new achievements in medical and science activities, to improved management operation, and to enhanced consumer protection programs. I shall do my best to effectively utilize the resources provided.

Now, with the assistance of my staff, I will be pleased to answer any questions.

UNFILLED POSITIONS

Senator HILL. You speak of your tremendous responsibilities. I think we all recognize them. From your statement this morning and your budget request, you certainly seem to be marshaling your forces to meet those responsibilities.

Dr. GODDARD. I am trying to.

Senator HILL. Let me ask you this question, Doctor: Do you have any unfilled positions at the present time?

Dr. GODDARD. We have 800 unfilled. I believe 214 of these are in the Drug Abuse Control activities. We have over 900 applications for those 214 positions. I feel confident that with the selection of the new Bureau Chief, the Deputy Chief and the division directors, all of which have taken place, those 214 vacancies will be filled in the very near future.

In the Bureau of Medicine we have 140 vacancies at the present time and 22 in the Bureau of Veterinary Medicine.

With respect to the Bureau of Medicine vacancies, I have requested assistance from the Public Health Service in the provision of manpower by asking them to detail junior officers to us to assist us in this very important task of evaluating IND's and NDA's.

The Surgeon General has agreed to this concept of detailing commissioned officers to us so I feel those vacancies will also be very quickly taken care of.

In the Bureau of Scientific Research, we have 72 vacancies. We are actively working toward recruitment of those positions. We have 63 in the Bureau of Scientific Standards and Evaluations.

There are 35 in administration and 32 in the Bureau of Drug Abuse Control, aside from the field activities. Progress is being made. I think the agency has established a record in previous years of being able to fill most of its vacancies, and I am confident that we will do well in spite of the seemingly large number at this point in the fiscal year. As I say, we have 900 applications pending for the Bureau of Drug Abuse Control activities.

We have had a 100 position net gain in the last month for example, in our recruitment, so it picks up very quickly from this point in the year on. We realize, of course, that many of our recruitment activities are aimed at the college graduate. In getting that group on board, as we go past the spring quarter, we will get many more into the

agency.

REASON FOR VACANCIES

Senator HILL. Basically, to what do you ascribe many of these vacancies?

Dr. GODDARD. The Bureau of Medicine vacancies were, frankly, due to the fact that it is difficult to recruit physicians today at the salary levels that can be provided for a physician. You can't really expect