CONSOLIDATED PROCEDURE PROGRAMS A. SINGLE DEPARTMENT PROCUREMENT One military department, utilizing its regularly established purchasing system, purchases the requirements for certain commonly used commodities for all military departments. Of the 32 commodities, which include such items as paint, lumber, coal, photographic equipment, and food preparation equipment, 5 are assigned to the Air Force. Single Department Procurement Assignments Commodity Electrical and electronic components--- Assigned Department Air Force. Electronic equipment---- Firefighting, rescue, and safety equipment (airport). Lighting fixtures, airport----. Photographic equipment--- 1 Do.1 Do. Do. Do. 1 Each Department is assigned procurement responsibility for those items which the Department either designed or sponsored development. B. PLANT COGNIZANCE PROCUREMENT One military department effects all procurement from certain assigned aviation plants, thereby permitting proper allocation of production capacity, avoiding duplication of military inspection and providing a single point of contact for the contractor. Plant Cognizance Procurement Assignments Location Manufacturer AIRCRAFT PLANTS Assigned department Do... Do Palmdale Production & Testing Center. Republic Aviation Corp. Beech Aircraft Corp.. Wichita, Kans. Bell Aircraft Corp., Niagara Falls Blvd. Northrop Aircraft. Northrop Aircraft, Radioplane Co. Renton, Wash.. Long Beach, Calif. Air Force. Do. Do. Do. Do. Hutchinson, Kans. Do. Wichita, Kans. Do. Do. Do. Do. ENGINE PLANTS United Aircraft Corp., Sikorsky Aircraft Division. AVCO Manufacturing Corp., Lycoming Division. AVCO Manufacturing Corp., Bridgeport Lycoming Division... General Electric Co., Aircraft Gas Turbine Division, produc- Bridgeport, Conn. Do. General Motors Corp., Allison Division, plancor 548. General Electric Co., Aircraft Gas Turbine Division, small aircraft engine department, plancor 864. General Tire & Rubber Co., Aerojet General Corp., liquid rocket plant Nimbus station. Sacramento, Calif. Do. PROPELLER PLANTS Curtiss-Wright Corp., Propeller Division. Caldwell, N.J. Do. General Motors Corp., Allison Division, aero products operations. Vandalia, Ohio.. Do. OTHER PLANTS Toledo, Ohio.. Do. Air Force plant No. 27 (DOD 319). RELATED PROGRAMS C. SINGLE MANAGER PROCUREMENT Centralized procurement activities, assigned for management to the Secretary of a single military department, procure the combined net requirements for selected, commonly used commercial type commodities and services for all military departments. Commodities/services included are: subsistence, petroleum and petroleum products, clothing and textile material, medical material, ocean transportation, air transportation, and traffic management services. GSA procures commonly used, commercial type items, such as office equipment, for all Government agencies, including the military services. (Repeated from page 1.) List of Federal supply schedule contracts which are mandatory nationally upon the Department of Defense Gasoline and lubricating oil-service station deliveries. Tires and tubes (other than aircraft), part II' (commercial tires and tubes only). Brake lining, clutch facings, oil filter elements, and tire chains, etc., part IV.1 (Selected items only are mandatory upon DOD.) Spark plugs, part II.1 Electric lamps, part VI.1 Household and quarters lamps, part VII.1 Purchase, maintenance, repair, and rental of michophotographic equipment, and supplies, part IV.1 Household and quarters furniture, parts I1 through IV.1 Office furniture, wood and steel, including steel insulating filing cabinets, part V.1 Floor coverings, part I.1 Books, part I,' sections A and B. (Section A only is mandatory upon DOD.) (Law books section only is mandatory upon Drafting room and office supplies, part I.1 Envelopes, printed and plain, part V.1 Typewriters (manual and electric); purchase, exchange allowances, and repair parts; maintenance and reconditioning of electric typewriters, part I.1 Office equipment, part III,' sections A and B. Offset duplicating blankets and plates, direct image and photographic (metal and paper type), part IV.1 Vacuum cleaners and repair parts, accessories and attachments, part II.1 Recordings and transcription service, part I.1 1 Refers to GSA catalogues which contain pertinent data relative to these items. Mr. VINSON. Now let's stop right there and get this. This is important, now, so you can follow it down and know what you are talking about. Now, on page 3: "Procurement Study-Army," as to who makes the contracts in the Department. Later on, we will come to what types of contracts. Now, here is the history of the contracts. Under the Secretary of Defense, the Assistant Secretary of Defense for Supplies and Logistics. Now, Mr. Courtney, you pick up there and you read all this out: Under the Secretary of Defense, the Assistant Secretary of Defense, Supplies and Logistics, establishes procurement policies and procedures for the entire Department. The Secretary of Defense has no contractual authority except in research and development by the law of 1958. Now, then, he does fix the policy, after consultation, as you will see, with the Departments. Now, go ahead, Mr. Courtney, right on the second line. Mr. COURTNEY. Beginning, then, with the establishment of the policy, which essentially is incorporated in the Armed Services Procurement Regulations, which are mandatory on the three Departments, the Assistant Secretary of Defense for Logistics terminates his responsibility, except for review on policy. Mr. VINSON. All right. Mr. COURTNEY. In the Army, the Assistant Secretary of the Army for Logistics is the Mr. VINSON. Well, read out what you have. Mr. COURTNEY. Is the actual head. Now, within each military department, the Assistant Secretary of the Army (Logistics) has delegated to the Deputy Chief of Staff for Logistics the authority for carrying out his procurement functions throughout the Army Establishment. The Deputy Chief of Staff directs and controls the procurement functions of the technical services, which include the Chemical Corps, Corps of Engineers, Ordnance Corps, Signal Corps, Quartermaster Corps, Transportation Corps, and Army Medical Service. The procurement responsibilities of the individual technical services are as follows Mr. VINSON. Now, these are the people in the Department of the Army that make the contract. Now, read them out. "Chemical Corps." Mr. COURTNEY (reading): Procurement of services, materiel, and equipment pertaining to chemical, biological, and radiological warfare, and related research. Mr. VINSON. All right. Mr. COURTNEY (reading): Corps of Engineers: Procurement of the engineering, construction, repair, and real estate services and material for the Army and the Air Force, and related research. Ordnance Corps: Procurement of ordnance material, including guns, missiles, ammunition, motor vehicles, and related research. Signal Corps: Procurement of signal communications, electronics, pictorial, and cryptologistic services and material, and related research. Transportation Corps: Procurement of transportation services and material for the Army, and related research. In addition, the Military Traffic Management Agency, a single managership, operates under the Transportation Corps. Quartermaster Corps: Procurement of all types of quartermaster equipment, supplies and services, and related research. Additionally, two single manager commodity assignments made to the Army, the Military Subsistence Supply Agency, and the Military Clothing and Textile Supply Agency, operate under the Quartermaster Corps. These are all for services. Army Medical Service: Contracts for dependents' medical and hospitalization services, medical research, and miscellaneous supplies and services for sup port of Army hospitals. In addition, the six continental Armies in the United States and the Military District of Washington supervise the not inconsiderable volume of local procurement effected at the level of Army posts, camps, and stations. The direction of the Army's research and development effort is vested in the Director of Research and Development and the military Chief of Research and Development. Under their direction and control, the technical services are responsible for the research, development, and test of materiel assigned to them. Mr. VINSON. All right. Now, stop right there. Now, members of the committee, get this in your minds. These are the agencies in the Army that are authorized by the setup, under the direction of the Assistant Secretary of Defense for Supply and Logistics, to formulate the policies to make the contracts that spend the amount of money that the Government appropriates to support the Army, some $7 billion, for this fiscal year. Now, the next column is the coordinated procedure program, which you are trying to bring into close cooperation, the activities that relate not only to the Army but relate to the other Departments, in hoping to bring about some uniformity and some economy. Now, you get there a single department procurement. Start there, now, Mr. Courtney. Mr. COURTNEY. Well, there are 32-within the Department of Defense, there are 32 categories of items purchased, which are distributed among the three services. And there have been 17 of such items dis tributed or assigned to the Army. Mr. VINSON. All right. Now, there are the items. Mr. COURTNEY. Here they are [pointing]. Mr. VINSON. There are the articles. There are the 17 articles that the Army procures for the other services. Now, the next is plant cognizance procurement assignments. Then it goes to the fourth column, which is single management procurement. Take that up now, Mr. Courtney. Mr. COURTNEY. Now, the Army has four single manager assignments. Now, single manager means that it is in complete charge of either the service or the supply. Subsistence is all purchased by the Army and distributed and handled for the three services; that is, perishable and nonperishable. Clothing and textiles is handled as a single manager by the Army and operates through and under, as a separate agency, under the Quartermaster Corps. Mr. BECKER. Is that for all services? Mr. COURTNEY. Yes, it is. Mr. VINSON. All services. This is single management. Mr. VINSON. Go ahead. Mr. COURTNEY. Traffic management: The Military Traffic Agency, under the Transportation Corps, handles transportation for all of the services. Now, hand tool and administrative and housekeeping supplies, or so-called general supplies, are under the single management, distribution, and handling, of the Army for the other two services, as well as for itself. Mr. HUDDLESTON. Which corps? Mr. COURTNEY. Quartermaster Corps. Mr. HUDDLESTON. Why is that listed, under Quartermaster Corps, in the procurement organization table? There are two commodity single manager assignments. Mr. COURTNEY. Well, I can't answer that, because this is taken from material furnished us by the Army. Mr. VINSON. Well, here is what we did. This is off the record. (Further statement off the record.) Mr. COURTNEY. I have an answer, Mr. Huddleston, which I had overlooked. This is now in the making. It is planned for early implementation. It is not yet in being. Mr. HUDDLESTON. I see. Mr. COURTNEY. It is only partially in being. Mr. VINSON. Now, you bear this in mind. The GSA does a large amount of purchasing for all three departments. And here is what the GSA purchases for the three departments. You see, that is broken down. Now, let's go back. Now, here are the agencies-the Chemical Corps, the Engineers, the Ordnance, the Signal Corps, the Transportation Corps, and the Quartermaster, and the Army Medical Corps, as well as the Zone of Interior armies. They do all the procurement for the Department. Then in addition to that, the Army does single procurement of certain items, which is set out in chart 3. Now, let's take the Navy. Turn to the next page. Now, the Navy follows down the same procedure, and that is from the Assistant Secretary of Defense, and comes down to the Secretary of the Navy. And he delegates his authority to the Assistant Secretary of the Navy for Material and the Chief of Naval Material. Now, Mr. Courtney, start right there and read those out. Mr. COURTNEY. (reading): In the Navy— Mr. VINSON. That is right. Mr. COURTNEY. (reading): under the Assistant Secretary of the Navy (Material), the Chief of Naval Material directs the efforts of the bureaus and offices of the Navy Department in procurement matters. These bureaus and offices, which are similar to the Army's technical services in that each generally has cognizance of a broad category of material, have respective procurement responsibilities as follows |