This statement of recommended apportionnent a good and request for the allocation of funds necessary
for the accomplishment of the program
quarterly time periods of my finacial planter

lor which

responsible is a summarization by

resource scbellules.

BETER BX
ALOE SWING GANZATION

JRD QUARTER

4TH QUARTER

RESERVED

TOTAL FOR

FISCAL YEAR 19.

THE SPACE JELOW IS FOR USE BY THE OASA

The Bureau of the Budget has apportioned the funds as recommended or adjusted. Such funds are
hereby allocated within the specified amounts and time periods. The allotment of pead tunds for
obligational purposes shall be in accordance with departmental policy regulation.

poliger

TO (some ad alle)

FROM

(authorized signature)

TO BE COMPLE

ETED

DATE

AMENDMENT NO. 79
September 1965

OL FORM 1-182

SEPT. 1964

NOTIFICATION AND APPROVAL IS HEREBY GIVEN FOR THE ALLOTMENT DESCRIBED BELOW:

415 ALLOTMENT SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICY AND REGULATION.

TO BE SIGNED BY ADM,
BUREAU OROFFEE
HEAD.

FUNDS WHICH BECOME AVAILABLE UNDER A CONTINUING RESOLUTION ACT, OR A
SUPPLEMENTAL APPROPRIATION ACT PASSED IN THE LAST QUARTER OF A FISCAL
YEAR ARE HEREBY ALLOCATED WITHIN THE SPECIFIED AMOUNTS AND TIME PERIODS.
NOTIFICATION AND APPROVAL IS HEREBY GIVEN FOR THE ALLOTMENT DESCRIBED BELOW:

415 ALLOTMENT SHALL BE ADMINISTERED IN ACCORDANCE WITH DEPARTMENTAL POLICY AND REGULATION.

MERITS OF LEASING EQUIPMENT

Mr. FARNUM. One other question on the last page the comment by GAO is on whether or not you lease outright mechanized systems, or whether you have lease-purchase. I would like to ask this question: In relation to the position of the Department where you feel it is better to lease rather than to purchase, in your lease agreements have you had the advantage of any technological improvements in the use of this equipment that came about during the term of the lease? In other words, if they come out with a method that is faster and can give you more information and do it better during the course of your lease, would they step the equipment up so you could have the advantage of this improvement ?

Mr. WERTS. Not as much as they should have. We can give you a better answer, but it has not been as good as it should have been.

Secretary WIRTZ. We shall answer that for the record.

Mr. FARNUM. The criticism of the auditors in terms of efficiency in the use of dollars can well be substantiated if you do not have this written into a lease agreement, because if you are not going to be updating, really the equipment that you are paying for all the time is amortized many times during the lease, and you are still using the same old, antiquated equipment as a result of technological changes that happen each day.

I would hope you could answer that for the record.
Secretary WIRTZ. We will complete the record on that.
Mr. FARNUM. That is all, Mr. Chairman.
(The requested information follows:)

TECHNOLOGICAL IMPROVEMENTS IN LEASED ADP EQUIPMENT The General Services Administration negotiates Government-wide contracts with each computer manufacturer. Included in these contracts is the right of any agency to have full benefits from technological improvements made by the manufacturer. This relates to both equipment components and to programing improvements.

The Department of Labor on a number of occasions has taken full advantage of improved equipment technology and has increased substantially the capability of its computer system. The reaction time for computer manufacturers in responding to the Department's requests for upgrading the capability of existing installations has always been excellent.

Mr. FOGARTY. Mr. Secretary, I think you have done a really good job in your presentation this year. Again I want to say I understand the problems you had a year ago when I was not so kind. I think you have done a really good job this year. You are one of the best Secretaries we have had.

Secretary WIRTZ. Thank you.

Mr. Chairman, I wish to acknowledge the fine work done by Jim Hudson in assisting me in preparing the statement and other materials I have presented today.

Mr. FOGARTY. Mr. Hudson is a really good man and does an excellent job as budget officer. James Dodson, I thought, was one of the best budget officers in the Government, also. You have had two really good men in the years I have been here.

Thank you, gentlemen. The committee will stand adjourned until tomorrow morning.

THURSDAY, FEBRUARY 3, 1966. MANPOWER ADMINISTRATION

WITNESSES

STANLEY H. RUTTENBERG, MANPOWER ADMINISTRATOR
DR. CURTIS C. ALLER, ASSOCIATE MANPOWER ADMINISTRATOR
ROBERT C. GOODWIN, ADMINISTRATOR, BUREAU OF EMPLOYMENT

SECURITY
HUGH C. MURPHY, ADMINISTRATOR, BUREAU OF APPRENTICE-

SHIP AND TRAINING MARGARET E. THOMAS, ACTING ASSISTANT MANPOWER ADMIN

ISTRATOR FOR ADMINISTRATION H. H. PREZLOMSKI, CHIEF, DIVISION OF ON-THE-JOB TRAINING, BUREAU OF APPRENTICESHIP AND TRAINING

RED M. ZUCK, ACTING DEPUTY ASSISTANT MANPOWER ADMINISTRATOR FOR ADMINISTRATION V. S. HUDSON, DEPUTY ASSISTANT SECRETARY FOR ADMINISTRA

TION RICHARD E. MILLER, DIRECTOR, OFFICE OF BUDGET ADMINIS

TRATION

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
JAMES CLARKE, ASSISTANT TO THE UNDER SECRETARY
FRANCIS KEPPEL, ASSISTANT SECRETARY FOR EDUCATION
DR. HOWARD MATTHEWS, DIRECTOR, MANPOWER DEVELOPMENT

AND TRAINING, OFFICE OF EDUCATION
JOSEPH G. KEEN, BUDGET OFFICER, OFFICE OF EDUCATION