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UTAH

116. Ogden: The 45th Rifle Company of the Marine Corps Reserve at Ogden

will be relocated and consolidated with 21st Rifle Company, Salt Lake
City, Utah, by October 1966. The Navy Reserve Training Center in
Ogden will remain active.

VIRGINIA

117. Charlottesville: The 7th Truck Company of the Marine Corps Reserve

located at Charlottesville will be inactivated by October 1966. Leased

facilities will be returned to the owner. 118. Newport News: The Army Aviation Laboratory now docated at Fort Eustis,

Va., will relocated to Biggs Air Force Base, El Paso, Tex., by December 1967.

WASHINGTON 119. Aberdeen: The Naval Reserve Training Center will be reduced to a train

ing facility by June 1966. 120. Bellingham : The 56th Rifle Company of the Marine Corps Reserve will be

inactivated by October 1966. The Naval Reserve Training Center will

be reduced to a training facility by June 1966. 121. Seattle: The Naval Supply Depot, Seattle, will be disestablished by July

1967 and its functions merged with those of the Puget Sound Naval Shipyard under a new command. The Naval Supply Center, Puget Sound, with headquarters at Bremerton. The Naval Supply Depot will be redesignated the Seattle Annex, Naval Supply Center, Puget Sound, with terminal, cold storage and naval station functions continuing. Re

maining facilities will be declared excess. 122. Spokane: Two NIKE Hercules sites at Spokane will be phased out and

the sites inactivated by June 1966. These facilities will be declared

excess. 123. Tacoma : The 25th Air Division Air Defense Combat Center, located at

McChord Air Force Base, will be inactivated in April 1966. The 498th Fighter Interceptor Squadron will be relocated to Payne Field by January 1967 to replace the F-101 Squadron being inactivated.

WEST VIRGINIA

124. Parkersburg: The 104th Rifle Company of the Marine Corps Reserve lo

cated at Parkersburg will be inactivated by October 1966. Leased facilities will be returned to the owner.

WISCONSIN

125. Milwaukee: A 130-acre portion of the U.S. Army Disciplinary Barracks

will be declared excess by October 1969. Tenant activities will be re

located to the area being retained. 126. Oshkosh: The 95th Rifle Company of the Marine Corps Reserve will be

inactivated by October 1966. The Naval Reserve Training Center in Oshkosh will remain active.

OVERSEAS

*1. San Juan: The Army Antilles Command in Puerto Rico will be inactivated

and Fort Buchanan in San Juan closed by the end of December 1966. The English language training program will continue under the sponsorship of the Commonwealth of Puerto Rico. Fort Buchanan will be declared excess to the General Services Administration and made available under applicable laws to the Commonwealth of Puerto Rico for nonmilitary use.

DISPOSAL OF SURPLUS PROPERTY OVERSEAS

Mr. Denton. Do you dispose of surplus military property ?
Mr. SIMPSON. Yes, sir.
Mr. DENTON. What about overseas property?

MSIMPHON. We do not bother with those overseas because of the the involved

Hir. Dinion. I will tell you why I am asking that question. I re(wivel moneral lectors from one man who enclosed an advertisement of burplus prorty being sold overseas. lle said, “We paid for that proporvi Why don't you bring it over here to us?” What is the answer to that!

E SIMPSON. I think really the answer is the costs involved in sy ping it back. Actually, when property is sold, personal property par

sou maliza probably somewhere between 10 and 1, cents or the dollar in terms of acquisition cost of the property. (Remem that most of the surplus property generated by the Government - 5) Ihr now in this country as well as overseas. It is a relative's mma percentages, I think less than 30 percent, that becomes available for o.: porgram.) History has shown we are only realizing 10 to 13's ihn dollar at man i hen surplus property is sold. When you adi :nangareration cants of bringing it back, you wouldn't realize enous fentheid worthwhile

Mr. N. Wells it overseas
Mr. Suv PV. The Impartment of Defense sells it overseas

Mr Penar. If this man wants to bid ou surplus propery, how heue it!

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conclusion of the program the stuff is usually pretty well worn out
anyway because it has been used for from 5 to 8 years. They will just
leave it, under the agreement, with the host government, and the
title will revert to the host government.

Mr. SHRIVER. You are not involved ?
Mr. SIMPSON. We are not involved, no.

Mr. DENTON. AID can claim that as surplus property as a Government agency would in this country?

Mr. SIMPSON. That is right.
Mr. DENTON. Overseas?
Mr. SIMPSON. Yes.

SOURCE OF CASH COLLECTIONS

Mr. DENTON. General Services Administration sells this surplus property. How do you get this money that you have acquired ?

Mr. SIMPSON. We don't get our money that we report in these cash collections in that way. We get our money when the donee, which is usually a school district or a health agency at the local level, does not live up to the terms and conditions under which the property is made available to them. For example, they may get some real property and lease a portion of it out for a while. One of the things we have in the agreement we make with them is that any proceeds from that lease must be to the credit of the United States. Or, again, they may sell a portion of it that they don't need when their plans don't mature as expected.

Mr. DENTON. And you get that money?
Mr. SIMPSON. The Government gets that money.

Mr. DENTON. The money that comes from the sale of the property is not included in here?

Mr. SIMPSON. It is not included. This is purely the money that comes to us in the program of donation or transfers under certain limited terms and conditions.

Mr. DENTON. That is all.
Mr. FOGARTY. Mr. Flood.

Mr. FLOOD. I am glad you have heard of GSA because this was certainly confusing and to a great extent still is. How did you come into existence? Did Congress give birth to you?

Mr. SIMPSON. Yes, sir.

PURPOSE AND ACTIVITY OF THE DIVISION

Mr. Flood. What is the purpose of your division ?
.

? Mr. SIMPSON. The primary purpose of this program is to make available surplus Federal properties for educational and for health purposes at the local level.

Mr. Flood. Do you do this of your own initiative? Do you handle this directly from your office with the institutions involved? What is your liaison with ĞSA, who is the general housekeeper? If you talk about surplus property to me, I only think of GSA, I don't think of you at all. What do you do?

Mr. SIMPSON. I am glad to explain that, sir. Once property is reported by Defense or any other agency as excess to its needs, it is circulated among other Government agencies.

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Mr. FLOOD. That is under GSA.

Mr. SIMPSON. That is under GSA. When there still is no taker within the Federal Government, then it is declared surplus. Durir. this processing, GSA gives us lists of these properties, and with our field staff in this particular division we go out and inspect them.

Mr. Flood. Before they are declared surplus?
Mr. SIMPSON. Yes.

Mr. Flood. You are one of the Government agencies that by priority gets the first shot at this?

Mr. Simpson. That is right, sir, when it actually does become surplus. We make this information available to State surplus property agencies with whom we work. Every State has a surplus property agency. They indicate back to us that which they want, whether it is personal property or real estate. If they have a program for the use of that property that contributes to the ends spelled out in the act, for health purposes or for educational purposes, and the program for that local school district or hospital or health agency is the best program, we then donate the property to them if it is personal property.

Mr. Flood. You donate it?

Mr. SIMPSON. Yes, sir; because General Service Administration has transferred it to us to dispose of.

Mr. FLOOD. And you now have acquired title?
Mr. SIMPSON. That is correct.
Mr. FLOOD. How do you get title!
Mr. SIMPSON. It is transferred from GSA.
Mr. FLOOD. It is merely a paper transaction?
Mr. SIMPSON. That is right.
Mr. Flood. This is bookkeeping, you pay nothing for it.
Mr. SIMPSON. We pay nothing for it.

Mr. Flood. You just say to GSA, “I have received your list and inspected the following items, and out of the following we want the first 10"?

Mr. SIMPSON. That is right.
Mr. Flood. Then you tip off the States about those 10?
Mr. SIMPSON. Yes.
Mr. FLOOD. What happens then?

Mr. SIMPsox. If the State comes in and we have 20 or 30 applicants for the same 10, we make the choice of that project which offers the best educational or health program.

Mr. Flood. Then, if there are a number of applicants for property A, you decide which applicant, for the the following best reasons gets it?

Mr. SIMPSON. That is right.
Mr. FLOOD. And it is a donation ?

Mr. Simpson. That is right, sir. If it is personal property, it is a donation. If it is real estate, we give a quitclaim deed where it is an on-site conveyance. If the buildings are portable and can be moved off the site, we make an agreement with them.

CIVIL DEFENSE PROPERTY

Mr. Flood. How do you get to the Civil Defense Act? What do you have to do with that?

Mr. SIMPSON. On delegation from the Assistant Secretary of Defense for Civil Defense, we process these cases, because the law also provides that properties can be donated for civil defense purposes as well as health and education.

Mr. FLOOD. Your law provides that?

Mr. SIMPSON. The Federal Property and Administrative Services Act.

Mr. Flood. You get into it because the Assistant Secretary of Defense asked you to?

Mr. SIMPSON. He asked our staff to do this job for him of screening the properties that can be used for civil defense purposes, of submitting the lists to the States, of getting back the applications, of processing them.

Mr. FLOOD. And you turn them over to him and that is the end of it?
Mr. SIMPSON. Yes.
Mr. Flood. You act as his processing agent?
Mr. SIMPSON. That is precisely right.
Mr. Flood. It really baffled me. That is all.
Mr. FOGARTY. Is there anything else?
Thank you.
Mr. SIMPSON. Thank you.

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