Mr. RIVERS. That is right. Mr. VINSON. Now, at this point I introduced in the record the record of the reports of the Departments on the actual use (both in dollars and in numbers of contracts) of the various methods of procurement, pages 8 and 9. (Inserted at completion of proceedings for April 25, 1960.) Let's don't get to that page now, because we have plenty of time. One table is the most recent experience of the Department reported for all of fiscal year 1959. That is the year ending June 30, 1959. In table 5, page 9, you will find four columns-and we will get back to this the total and the distribution through the three services of: number of contracts entered; and similarly in four columns, the total and the distributions between the services of the dollar value of all contracts entered into. Table 4, page 8, gives the same type of information consolidated into total figures for all of the Defense Departments for the years 1957, 1958, and 1959, using not only dollars and numbers of contracts but percentage totals for each of the types of procurement. This presents a comprehensive background of data on the actual use of the Armed Services Procurement Act and as assimilated into the Armed Services Procurement Regulations since 1956. Earlier, I mentioned the fact that procurement powers now being exercised depend for their authority upon the continued existence, unrevoked, of the Korean National Emergency Proclamation of 1950. The proclamation of section 2304 (a) (1) are the legal basic authority for the actions you will see listed under table 5, or seven uses which depend on a Presidential national emergency proclamation for legal authority. Table 4 lists only five. We shall explain those as we go along. I particularly direct your attention (so the picture will not be distorted) to subsection (f) under section 2304 (a) (1) on table 5. This is "modification" authorized on contracts negotiated prior to January 1, 1956, and incomplete. That figure represents the contract changes occurring in those contracts where the contracting authority used was only the national emergency proclamation of December 16, 1950. Thus, you will see, if you refer to table 5, there were 1,761 contracts which were dealt with in that year, by way of change or modification; and these contracts had all been entered into prior to January 1, 1956. These changes were plus or minus the original contracts' amount, as the case may be. If you go over to the dollar column, you will find that the total dollar changes amounted to $40,750,000. Of course, there will soon come a time when these contracts will have been closed out and notation (f) will no longer appear upon these tabulations. This item is necessary for reconciliation with practices and procedures since January 1, 1956. Now I desire to introduce into the record charts in three parts, pages 3, 4, and 5, setting forth the organizational structures of the three services pointing out the administration of procurement. Each chart is identical in format. (The material referred to follows:) PROCUREMENT ORGANIZATION OF THE DEPART- SECRETARY OF DEFENSE Assistant Secretary of Defense (Supply and Logistics).. THE PROCUREMENT ORGANIZATION Under the Secretary of Defense, the Assistant Secretary of Defense (Supply To render assistance in this connection, the Armed Services Procurement Within each military department, an Assistant Secretary is in charge of mili- The Assistant Secretary of the Army (Logistics) has delegated to the Deputy The procurement responsibilities of the individual technical services are as follows: 'Procurement authority is vested in the Military Secretaries by statute. 2 Departmental procurement instructions are applicable worldwide to all commands of the respective departments. Chemical Corps: Procurement of services, material, and equipment pertaining to chemical, biological, and radiological warfare, and related research. 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, Transportation Corps: Procurement of transportation services and material Quartermaster Corps: Procurement of all types of quartermaster equipment, Army Medical Service: Contracts for dependents' medical and hospitalization In addition, the six continental Armies in the United States and the Military The direction of the Army's research and development effort is vested in the COORDINATED 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 assigned commodities, which include such items as paint, lumber, coal, photographic equipment, and food preparation equipment, 17 are assigned to the Army, as follows: Single Department Procurement Assignments Drums and cans.. Electronic equipment-- Commodity Antifreeze- Batteries, dry cell.. Chemical warfare equipment and supplies--- Construction and agricultural equipment and tractors__. Firefighting, water purification, and sewage treatment equipment-- Food preparation and serving equipment.. Lumber, millwork, plywood, and veneer. Assigned Department Army. Do. Do. Do. Do. Do.1 Do. Do. Do. Telephone and telegraph equipment and components, military- Do. Army (part). Tires and tubes____ Army. Weapons, fire-control equipment, ammunition and explosives------ Army (part). 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. No assignments. Plant Cognizance Procurement Assignments 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. 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 1 (commercial tires and tubes only). Brake lining, clutch facings, oil filter elements, and tire chains, etc., part IV.3 (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 microphotographic equipment, and supplies, part IV.1 Household and quarters furniture, parts I' 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.) Periodicals and law books, part II.1 (Law books section only is mandatory upon DOD.) 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 imagine and photographic (metal and paper type), part IV.1 Vacuum cleaners and repair parts, accessories and attachments, part II.31 Recordings and transactions service, part I.1 1 Refers to GSA catalogues which contain pertinent data relative to these items. 5509660 |