mercial warehousing service for general merchandise, the monitoring of arrangements between DOD and GSA for GSA services and the operational control of the Defense Documentation Center which was transferred from the Air Force to DSA. The Agency continues to show an excellent record in personnel savings over 6,000 spaces being saved since its establishment.

Current studies underway.-At the present time there are underway several studies in functional areas which could result in management improvements and organizational changes.

Savings and improved management practices may be possible in the provision of printing and publications services throughout the Department of Defense. A study is now being made in this area and should be completed sometime this spring.

Recently a study was completed on provision of automatic data processing services for the Office of the Secretary of Defense. The recommendations made in the study are being processed.

As a result of a study in depth of contract administration services, a pilot project is being conducted in the Philadelphia area which would consolidate these many and varied services in one organization. At the present time contract administration services are widely fragmented not only among the military departments, but among organizational subdivisions of those departments. If the pilot project proves successful, and we have every reason to believe it will, substantial savings should be achieved in this area.

Office of the Secretary of Defense

During the period of January 1, 1963, to January 1, 1964, there was a net increase of 56 civilian employees serving on a full-time and part-time (WAE) basis in the Office of the Secretary of Defense. The number of WOC-type personnel serving at the end of 1963 was nine less than were serving at the same time in 1962. The net increase was due primarily to (a) increases in the Office of the Assistant Secretary of Defense (Comptroller) to complete the establishment of an in-house capability for the management of the programing system and the continuing focus of greater attention on the gold-flow implications of budgetary and expenditure actions; (b) increases in the Office of the Assistant Secretary of Defense (International Security Affairs) to strengthen and improve the management, supervision, and review of activities of the military assistance program; and (c) increases in the Office of the Assistant Secretary of Defense (Manpower) required to improve the administration and coordination of classification management, industrial relations, and industrial security activities and equal employment opportunities among Department of Defense civilian and military personnel.

Organization of the Joint Chiefs of Staff.-Seventeen full-time civilian personnel were added to the organization of the Joint Chiefs of Staff during calendar year 1963 to strengthen the plans and policy staff and to provide adequate manning of the staff element responsible for joint war games activities.

Other DOD agencies.-As of January 1, 1964, there were 7,003 more civilian employees assigned to DOD agencies, other than the military departments, the OSD and the JCS, than were assigned to those agencies on January 1, 1963. Most of this increase occurred in the Defense

Supply Agency and classified activities. It represented personnel transferred predominantly from the three military departments as a result of the continuing action to effect phased consolidation of functions in accordance with approved plans and schedules for the establishment of the agencies.

Other activities.-A net reduction of five full-time civilian personnel assigned to interdepartmental activities and a net increase of three full-time civilian personnel assigned to international military activities were effected during 1963. These changes were occasioned by the completion of projects for which DOD was providing support and by the realinement of several functions in the European area.

General. Decreases in the overall number of civilian personnel employed by the three military departments considerably exceeded the increases made by the above activities within the Department during 1963. Statistics for civilian personnel employed by the Departments of the Army, the Navy, and the Air Force are being submitted in separate reports made by each of those military departments.

DEPARTMENT OF THE AIR FORCE

The acting administrative assistant reported a reduction of 7,662 employees during 1963, and organizational changes effected since January 1, 1963. He also reported that during the year the Department continued the drive to attain the most economical and effective organization structure. The objectives are to organize combat units (wings) so that all elements and activities are primary mission oriented, eliminate supervision layering at all levels, take advantage of improved communication systems by eliminating function staffs at intermediate headquarters, and, finally, standardize unit and command organization structures to the maximum degree consistent with operational effectiveness and efficiency.

A standard base-level organization is being installed throughout the Air Force. The organization is designed so that all elements are oriented to the primary mission of the wing and decision authority and responsibilities are clearly defined. The overall mission is divided into three major blocks of authority and responsibility. A deputy (to the wing commander) is designated for operations and is assigned responsibility for execution of the primary mission of the wing. A second deputy is designated for materiel and made responsible for those elements of support absolutely essential to operations. Usually these are supply, maintenance, and munitions functions. A support group commander is designated and made responsible for all remaining activities of the wing except medical, including the duties, responsibilities, and accountability of base commander.

The organization was installed in several of the major commands in 1962. In 1963 it was installed in Air National Guard elements committed to Tactical Air Command and the Military Air Transport Service. Planning for similar action in elements of the Air National Guard committed to Air Defense Command was completed in 1963 with implementation expected by mid-1964. When the latter action is completed, all Air National Guard units will be organized almost identical to regular units. The advantages will be cost reductions and increased efficiency in procedures, publication, mission orientation time

required when called to active duty, and quicker response to emergency requirements.

The mission-oriented concept of organization can be applied to noncombat units also. In 1963, for example, laboratories assigned the Research and Technology Division of the Air Force Systems Command were reorganized. The reorganization combines administrative and staff support elements into one element similar to the support group of the wing-base organization. This structure permits the laboratory director to concentrate on the difficult problems of the mission elements of the organization. Typical of units reorganized are: Rocket Propulsion Laboratory, Edwards Air Force Base; Weapons Laboratory, Kirtland Air Force Base; Materials, Aero-Propulsion, Avionics, and Flight Dynamics Laboratories, Wright-Patterson Air Force Base. Another example is training. The organization was applied to all undergraduate pilot training wings of the Air Training Command. The 3500th Pilot Training Wing, Reese Air Force Base, Tex., is typical of the undergraduate pilot training wing.

With the standard wing-base organization well established in 1962 and 1963, particular attention was directed in 1963 toward improving and expediting the decision process at intermediate echelons of command. Evaluations were made to determine if all echelons are required and, if required, whether complete staffs are necessary. It was found that considerable compression of staffs is feasible, resulting in savings of manpower spaces without detracting from command-control-supervisory requirements.

Illustrations of actions completed in 1963 as a result of evaluations

are:

(1) In Europe, realinement of units between 3d and 17th Air Forces and elimination of some staffs in Headquarters, 3d and 17th Air Forces, resulted in saving 315 manpower spaces.

(2) Elimination of most administrative and nondirect mission staffs in Headquarters, Western and Eastern Air Forces (Military Air Transport Service), saved 81 manpower spaces.

(3) Administrative staffs of 9th and 12th Air Force Headquarters were reduced substantially on the basis of comparable staffs at Headquarters, Tactical Air Command, assuming the work. This permitted-in part-expansion of operational staff elements of the two headquarters. These elements are now manned to provide welltrained, hard-core mobile teams for execution of contingency plans and exercises.

The name of one major command was changed in 1963. The Caribbean Air Command was redesignated the U.S. Air Force Southern Command in consonance with the change of the unified command name to U.S. Southern Command.

In summary, the Air Force continued its drive to improve organization control, standardize organization where practical, and eliminate unnecessary staffs.

DEPARTMENT OF THE ARMY

The Chief of Legislative Liaison reported that during calendar year 1963 there was a net reduction of 15,412 in Department of the Army civilian employment. Of this decrease, approximately 3,200

Army employees were transferred to other defense agencies, primarily the Defense Supply Agency. The remainder of the decrease is due to curtailments in hiring to replace attritional losses due to fund limitations; productivity improvement program; and reductions in direct hire non-U.S. citizen employees necessary to improve the balance-ofpayments situation.

There was also a net decrease of 6,375 in foreign national employees provided through contractual agreements with foreign governments during this period. This decrease can be attributed to the reductions associated with the balance-of-payments situation and the necessity to curtail employment in order to stay within the budgeted dollars.

The report submitted to the committee stated that the Department of the Army continued to take action during the calendar year 1963 to improve its organizational structure as part of the Department's continuing program of management improvement. The more noteworthy changes are discussed below.

The following changes were made in the Department of the Army Secretariat:

The positions of Deputy Under Secretary (Manpower), special assistant for personnel, and special assistant for Reserve and ROTC have been abolished.

A position of Deputy Under Secretary (Manpower and Reserve Forces) has been established to monitor for the Under Secretary of the Army the active Army military and civilian manpower programs, to include Reserve Forces and ROTC manpower and personnel management actions.

A position of Deputy Under Secretary (Personnel Management), has been established to monitor for the Under Secretary of the Army activities relating to the overall plans, programs, procedures, and policies relating to military and civilian personnel management in the Active Army Establishment and its personnel research effort.

The civil functions responsibility previously assigned to the Assistant Secretary of the Army (Financial Management) has been transferred to the Office of the General Counsel. In addition to his responsibility as the Chief Legal Adviser to the Secretary of the Army, the General Counsel acts as special assistant to the Secretary of the Army for civil functions.

The Defense Supply Service, Defense Telephone Service, Per Diem, Travel, and Transportation Allowance Committee and the Armed Services Explosive Safety Board which were formerly reflected as elements of the Office of the Secretary of the Army were transferred to the joint DOD activities category in order to more appropriately reflect their DOD-wide sphere of operations.

Two new offices were established within the Office of the Chief of Staff as follows:

The Office of the Special Assistant for Army Information and Data Systems (AIDS) was established in recognition of the increasing need for information at all levels of the Army. The special assistant, AIDS, is to serve as the project manager for the overall development of Army information and data systems. To carry out this responsibility the AIDS office has been organized into three divisions as follows: Systems Planning Division, Management Planning Division, and Operations Division.

The Office of the Director of Special Studies was established to monitor, review, and make recommendations to the chief of staff and the Secretary of the Army concerning Army contractual and in-house special studies.

The Office of the Deputy Chief of Staff for Logistics was modified to meet the assignment of the cost reduction program and expanded activity in the field of international logistics. To carry out his assigned responsibilities the Deputy Chief of Staff for Logistics now has five directorates as follows: plans, materiel acquisition, international logistics, supply and maintenance, and installations.

The Office of Deputy Chief of Staff for Military Operations was divided and some of the functions were placed into a newly established general staff agency, entitled "Office of the Assistance Chief of Staff for Force Development." The primary reasons for making two staff agencies out of one were to reduce the excessive span of staff responsibilities of the Deputy Chief of Staff for Military Operations, which formerly covered all joint and unilateral Army plans and operations, and to devote greater emphasis and capability to unilateral Army force development planning, which is, in fact, the basis of the Department's current mission to organize, train, equip, and support combat-ready forces to be employed by the unified commands. Overall responsibilities of the two new agencies are summarized as follows: The Deputy Chief of Staff for Military Operations is the principal adviser to the Chief of Staff on all joint affairs and on the establishment of requirements for, and utilization of, combat-ready forces. To carry out these responsibilities he has four directorates: strategic plans and policy, operations, special warfare, and civil affairs.

The Assistant Chief of Staff for Force Development is principal adviser to the Chief of Staff on coordinated development of Ariny forces, to include combat doctrine, organization, and equipment. To carry out his responsibility, the Assistant Chief of Staff for Force Development has five directorates: Plans and Programs; Doctrine Organization and Training; Materiel Requirements; Chemical, Biological, and Radiological Operations; and Army Aviation.

The Office, Comptroller of the Army has organized a new unit, the Audit Compliance Group. The purpose of this unit is to provide a central point on the general staff to follow up on recommendations in audit reports, both internal and those prepared by the U.S. General Accounting Office. The Comptroller of the Army is spearheading a drive to improve Army administration through expeditious action in correcting deficiencies revealed by audit review.

The Office of the Assistant Chief of Staff for Reserve Components was reorganized and redesignated Office of Reserve Components. This reorganization was designed to strengthen and centralize, in one individual reporting to the Secretary of the Army and the Chief of Staff, the primary staff responsibility for development and control of Reserve component forces not on active duty.

As part of the reorganization, the Office of the Chief, Army Reserve and ROTC Affairs was redesignated Office of the Chief, Army Reserve and its former Reserve Officers Training Corps (ROTC) functions were reassigned to the Chief, Office of Reserve Components in recognition of the importance and Army-wide scope of the ROTC program as a primary source of commissioned officers.