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Y 4.SM 1:C73/5

COMPETITION IN FEDERAL PROCUREMENT

HEARINGS

BEFORE THE

SUBCOMMITTEE ON GENERAL OVERSIGHT
AND THE ECONOMY

OF THE

COMMITTEE ON SMALL BUSINESS
HOUSE OF REPRESENTATIVES

NINETY-EIGHTH CONGRESS

FIRST SESSION

WASHINGTON, D.C., OCTOBER 5 AND 6, 1983

Printed for the use of the Committee on Small Business

CIS RECORD ONLY:

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NEAL SMITH, Iowa

COMMITTEE ON SMALL BUSINESS

PARREN J. MITCHELL, Maryland, Chairman

JOSEPH P. ADDABBO, New York
HENRY B. GONZALEZ, Texas
JOHN J. LAFALCE, New York
BERKLEY BEDELL, Iowa
HENRY J. NOWAK, New York
THOMAS A. LUKEN, Ohio
ANDY IRELAND, Florida
IKE SKELTON, Missouri

CHARLES W. STENHOLM, Texas
ROMANO L. MAZZOLI, Kentucky
NICHOLAS MAVROULES, Massachusetts
CHARLES HATCHER, Georgia
RON WYDEN, Oregon
DENNIS E. ECKART, Ohio
GUS SAVAGE, Illinois

BUDDY ROEMER, Louisiana
NORMAN SISISKY, Virginia

FRANK MCCLOSKEY, Indiana

ESTEBAN EDWARD TORRES, California
TOM J. VANDERGRIFF, Texas

JIM COOPER, Tennessee
JAMES R. "JIM" OLIN, Virginia
C. ROBIN BRITT, North Carolina
RICHARD RAY, Georgia

JOSEPH M. McDADE, Pennsylvania SILVIO O. CONTE, Massachusetts WILLIAM S. BROOMFIELD, Michigan

LYLE WILLIAMS, Ohio

JOHN HILER, Indiana

VIN WEBER, Minnesota
HAL DAUB, Nebraska

CHRISTOPHER H. SMITH, New Jersey
DAVID DREIER, California

GUY V. MOLINARI, New York
TOBY ROTH, Wisconsin

GENE CHAPPIE, California

SHERWOOD L. BOEHLERT, New York
MICHAEL BILIRAKIS, Florida
DAN SCHAEFER, Colorado

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CONTENTS

Bilirakis, Hon. Michael, a Representative in Congress from the State of
Florida.

1, 123

3, 125

Amlie, Thomas S., Assistant for Technical Systems, Office of the Assist-

ant Secretary for Financial Management, U.S. Air Force, Department

of Defense....

Boxer, Hon. Barbara, a Representative in Congress from the State of
California

Connolly, Maj. Gen. Joseph H., Deputy Director for Acquisition Manage-

ment, Defense Logistics Agency, DOD, accompanied by Brigadier Gen-
eral Skeen, Commander, Defense Industrial Supply Center, DOD
Engfer, Charles W., vice president, Lynmar Sales, Inc....

Forman, Wallace, chairman, Gibralter Industries, Inc., on behalf of Busi-
ness Executives for Equitable Procurement..

Gilleece, Mary Ann, Deputy Under Secretary of Defense for Research and

Engineering (Acquisition Management), Department of Defense, accom-

panied by Harvey Gordon, Assistant Deputy Under Secretary for Ac-

quisition, and Norma Leftwich, Director, Small and Disadvantaged

Business Utilization, DOD

Grassley, Hon. Charles E., a Senator in Congress from the State of Iowa...
Haugh, Leroy J., Associate Administrator for Policy Development, Office
of Federal Procurement Policy, Executive Office of the President, ac-
companied by Owen Birnbaum, Deputy Associate Administrator

Kemp, Ira L., Associate Director of Contracting and Manufacturing, Di-

rectorate of Contracting and Manufacturing Policy, U.S. Air Force,

DOD, accompanied by Don Rellins, Director of Small and Disadvan-

taged Business Utilization, USAF, DOD..

Miller, Frank G., SBA Breakout Procurement Center Representative,

Tinker Air Force Base....

Mitchell, Hon. Parren J., a Representative in Congress from the State of
Maryland, and chairman, Committee on Small Business
Otero, Richard J., president, RJO Enterprises, Inc..

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Testimony of-Continued

Rankin, Thomas R., president, G.K.S., Inc., and on behalf of Small Busi-
ness United, as a trustee of National Small Business Contractors Asso-
ciation, and as a trustee of the Cleveland Government Contractors
Sales Program
Sanders, James C., Administrator, U.S. Small Business Administration,
accompanied by Robert F. McDermott, Assistant Administrator for Pro-
curement Assistance, SBA.

Sansone, Rear Adm. Joseph S., Jr., Deputy Chief of Navy Materiel (Con-
tracts and Business Management, Department of the Navy, DOD..
Seidman, Paul J., special counsel for procurement policy issues, National
Tooling & Machining Association

Solomon, Maj. Gen. Robert B., Deputy Inspector General for Investiga-
tions, Assistance, Training, and Information Management, Department
of the Army, DOD

Page

242

52

198

115

185

Stallings, Maj. Gen. David W., Director of Procurement and Production, U.S. Army Materiel Development and Readiness Command, Department of the Army, DOD...

196

Swain, Frank S., Chief Counsel for Advocacy, U.S. Small Business Administration..

54

Vander Schaaf, Derek J., Deputy Inspector General, Department of Defense.

181

Weiss, Stanley A., president, Business Executives for National Security,
Inc...

97

Williams, Jon, president, Association of Southwest Government Contractors

34

Additional material supplied for the hearing record:

Amlie, Thomas S., Assistant for Technical Systems, Office of the Assistant Secretary for Financial Management, U.S. Air Force, Department of Defense...

137

Boxer, Hon. Barbara, a Representative in Congress from the State of
California:

"Pentagon, in Year-End Rush, Spends Billions," article, New York
Times, Oct. 2, 1983..

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Connolly, Maj. Gen. Joseph H., Deputy Director for Acquisition Manage-
ment, Defense Logistics Agency, DOĎ: Prepared statement
Engfer, Charles W., vice president, Lynmar Sales, Inc.: Prepared state-
ment..

216

75

Forman, Wallace, chairman, Gibralter Industries, Inc., on behalf of Business Executives for Equitable Procurement: Prepared statement..... Gilleece, Mary Ann, Deputy Under Secretary of Defense for Research and Engineering (Acquisition Management) Department of Defense: Prepared statement.

Kemp, Ira L., Associate Director of Contracting and Manufacturing, Directorate of Contracting and Manufacturing Policy, U.S. Air Force: Prepared statement.....

Mitchell, Hon. Parren J., a Representative in Congress from the State of Maryland and chairman, Committee on Small Business: Prepared statement.

Rankin, Thomas R., president, G.K.S., Inc., and on behalf of Small Busi-
ness United, as a trustee of National Small Business Contractors Asso-
ciation, and as a trustee of the Cleveland Government Contractors
Sales Program: Prepared statement.

Sanders, James C., Administrator, U.S. Small Business Administration:
Prepared statement...

Sansone, Rear Adm. Joseph S., Jr., Deputy Chief of Navy Materiel (Con-
tracts and Business Management), Department of the Navy, DOD: Pre-
pared statement...

105

157

206

20

28

53

199

Seidman, Paul J., special counsel for procurement policy issues, National
Tooling & Machining Association: Prepared statement

119

Sowle, Donald E., Administrator for Federal Procurement Policy, Executive Office of the President: Prepared statement...

253

Stallings, Maj. Gen. David W., Director of Procurement and Production,

U.S. Army Materiel Development and Readiness Command, Depart-
ment of the Army, DOD: Prepared statement.....

197

Swain, Frank S., Chief Counsel for Advocacy, U.S. Small Business Administration: Prepared statement....

57

Additional material supplied for the hearing record-Continued

Weiss, Stanley A., president, Business Executives for National Security,
Inc.: Prepared statement....

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Williams, Jon, president, Association of Southwest Government Contractors: Prepared statement

40

APPENDIXES

Appendix A.-Additional material submitted for the record by Jon Williams,
president, Association of Southwest Government Contractors
Appendix B.-Additional material submitted for the record by Paul J. Seid-
man, special counsel for procurement policy issues, National Tooling &
Machining Association..

269

291

Appendix C.-Additional material submitted for the record by Rear Adm.
Joseph S. Sansone, Jr., Deputy Chief of Navy Material (Contracts and
Business Management), Department of the Navy, DOD.

305

Appendix D.-Additional statements submitted for the record...

348

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