Imágenes de páginas
PDF
EPUB
[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]

Military-owned supply system stocks in hands of contractors as of June 30, 1959

[blocks in formation]

2 Stocks in hands of contractors (Government-furnished material) not available from the Air Force inventory accounting system or supply management reports.

ASSISTANT SECRETARY OF DEFENSE,

SUPPLY AND LOGISTICS, Washington, D.C., February 23, 1960.

Hon. PAUL H. DOUGLAS,

Chairman, Joint Economic Committee,
U.S. Senate.

DEAR MR. CHAIRMAN: Your letter to the Secretary of Defense, dated January 13, 1960, requested certain information on Department of Defense transportation costs and costs for storage of household goods.

In my reply of January 29, 1960, I advised that the cost figures for household goods, requested as item No. 4 of your letter, would be furnished at a later date. Accordingly, the following further information is submitted in response to your request :

[blocks in formation]

The budget and accounting structure of the Air Force as presently established does not provide for identification of funds expended solely for the cost of storing household goods either commercially or in Government warehouses. The expenditures of such funds for the fiscal year 1959 could be developed only by a research of many thousands of individual vouchers and the tabulation of the costs listed thereon.

The estimated cost for fiscal year 1960 is $7.2 million for commercial storage. This estimate is based upon average rates contained in commercial contracts and the anticipated number of lots that will be stored. Costs for Government storage are not available but the amount of household goods belonging to Air Force personnel in Government warehouses is very small.

It should be noted that since April of 1958, 97 percent of all household goods generated for storage has been placed in commercial warehouses.

If the committee desires any further information on this subject, do not hesitate to call upon me.

Sincerely yours,

PHILIP LEBOUTILLIER, Jr.,

Acting Assistant Secretary of Defense (Supply and Logistics).

MISCELLANEOUS PAPERS ON SURPLUS PROPERTY AND STOCK FUND OPERATIONS RELATING THERETO

FEBRUARY 9, 1960.

Mr. ELMER B. STAATS,
Deputy Director, Budget Bureau,

Executive Office of the President, Washington, D.C.

DEAR MR. STAATS: In your testimony before the Joint Economic Committee on January 29, 1960, you mentioned some joint studies on utilization and disposal of excess and surplus personal property and also that you were working with GSA in relaxing existing policies under which agencies are required to pay for excess property.

It would be of value to the committee if you would furnish copies of studies made to date in these areas and also copies of any directives and instructions which have been issued in this regard.

With best wishes.
Faithfully,

PAUL H. DOUGLAS,
By FRANK W. MCCULLOCH,
Administrative Assistant.

EXECUTIVE OFFICE OF THE PRESIDENT,

BUREAU OF THE BUDGET, Washington, D.C., February 19, 1960.

Hon. PAUL H. DOUGLAS,

Chairman, Joint Economic Committee,
U.S. Senate, Washington, D.C.

DEAR SENATOR DOUGLAS: In your letter of February 9, 1960, you ask that we furnish to the Joint Economic Committee copies of studies we have made on utilization and disposal of excess and surplus personal property and any directives which have been issued as a result of these studies. Last summer we established a management improvement project on a governmentwide program for utilization and disposal of excess and surplus personal property. Since GSA and DOD had already undertaken studies to determine the extent to which GSA-DOD screening procedures could be streamlined and improved, the Bureau project concentrated on major governmentwide issues and management problems. The specific problems selected for study were set forth in my letter of September 22, 1959, to the heads of those agencies which generate substantial quantities of excess personal property, a copy of which is attached as exhibit A. You will note that the specific problem areas selected for study are

(a) the extent, if any, to which proper excess property utilization is adversely affected by present governmentwide policies and practices relating to reimbursement for such property;

(b) classification and disposal of scrap;

(c) whether full and appropriate use is being made of excess personal property transferred between Federal agencies;

(d) whether effective controls have been established to assure that excess personal property is considered the first source of supply in agency procurement programs; and

(e) whether a more meaningful governmentwide excess and surplus personal property progress reporting system can be developed. The study on (a) confirmed that existing policies and procedures relating to reimbursement for excess personal property transferred between agencies has adversely affected maximum utilization. The staff report on (a) is attached as exhibit B. The first two steps toward implementing the recommendations contained in the staff report are letters from the Bureau to GSA (see exhibit C attached), and DOD (see exhibit D attached), requesting changes in existing policies and procedures which will eliminate reimbursement as an obstacle to better utilization of excess property. GSA has informed us that revised GSA regulations which will effectuate our recommendations will be ready for review within a few days. DOD has not had sufficient time to analyze and reply to our letter (exhibit D) which urged that DOD policies be modified to permit the transfer of excess property without reimbursement.

Since studies on problem areas (b) and (e) are not completed, data is not yet available for transmission to the committee.

With respect to problem area (c) the staff concluded, after examining thousands of transfer documents, that hoarding of transferred excess property is not a significant problem. Agency inventory controls are generally adequate to prevent the transfer of unneeded excess property.

The study on problem area (d) is just now getting underway. We expect to determine the effectiveness of agency programs to use excess property as the first source of supply in lieu of new procurement by conducting tests in three GSA regions. A detailed explanation of the test is contained in material attached as exhibit E.

If we can be of further help, please let us know.

Sincerely yours,

ELMER B. STAATS, Deputy Director. EXHIBIT A

EXECUTIVE OFFICE OF THE PRESIDENT,

BUREAU OF THE BUDGET, Washington, D.C., September 22, 1959.

The Honorable the SECRETARY OF AGRICULTURE. MY DEAR MR. SECRETARY: The Department of Defense and the General Serv ices Administration have launched aggressive programs to speedup and improve the system for utilization and disposal of excess and surplus personal property. In order to be successful these programs require active support from all agencies.

The Bureau of the Budget is committed to support the DOD and the GSA programs fully. In addition we are concerned with the budgetary and governmentwide management problems which are involved in utilization and disposal of excess and surplus property.

The Bureau has started an intensive effort leading toward action on some of the fundamental issues which have direct or indirect budgetary or management impact. George C. Taylor, Deputy Director, Office of Plans, U.S. Atomic Energy Commission, has been detailed to the Bureau of the Budget to take the lead in this effort.

I have asked the staff who will work in this area to avoid duplicating or retarding the excellent programs now underway in the Department of Defense and the General Services Administratoin. Our efforts are to be directed toward an action program to identify and remove any obstacles or modify any policies which stand in the way of maximum results. We intend to avoid detailed analytical reports and concentrate on needed action. Specific problem areas selected for study include

(a) the extent, if any, to which proper excess property utilization is adversely affected by present governmentwide policies and practices relating to reimbursement for such property;

(b) classification and disposal of scrap;

(c) whether full and appropriate use is being made of excess personal property transferred between Federal agencies;

(d) whether effective controls have been established to assure that excess personal property is considered the first source of supply in agency procurement programs; and

(e) whether a more meaningful governmenwide excess and surplus personal property progress reporting system can be developed.

Unless you indicate some other preference, Mr. Taylor will work with the national utilization officer which you have designated in connection with the utilization program launched by the Federal Supply Service. Mr. Taylor may be reached at the Bureau, code 113, extention 686, room 461.

Sincerely yours,

(Signed) ELMER B. STAATS,

Deputy Director.

Identical letter to the following agencies: AEC, Commerce, D/HEW, Post Office, OCDM, FAA, Interior, State, ICA, Justice, NASA, TVA, VA.

EXHIBIT B

No-112-EXCESS PROPERTY PROJECT, FINDINGS AND RECOMMENDATIONS ON THE PROBLEM OF REIMBURSEMENT FOR THE TRANSFER OF EXCESS PROPERTY

(By George C. Taylor, Bureau of the Budget, November 4, 1959)

Problem: To determine whether present Government policies and procedures relating to reimbursement for excess personal property transferred between agencies need to be changed to facilitiate and promote maximum utilization of such property.

BACKGROUND

Present policies and practices applicable to the transfer of excess personal property at fair value are derived from section 202, Federal Property and Administrative Services Act of 1949 and subsequent amendments thereto. The act originally (sec. 202(e)) required reimbursement, at fair value, with minor exceptions, for all transfers of excess property between Federal agencies. Stringent requirements on reimbursement were included in the act to avoid undue augmentation of specific appropriations and to avoid hoarding of supplies. By 1952, it was apparent that the best utilization of excess property under the act was not being attained and the "fair value" requirements of the act were cited as the principal cause. As a result, Public Law 522, 82d Congress, repealed the mandatory requirement for transfer at "fair value" and liberalized the law to provide a more flexible method for transfer so that greater utilization of excess property could be attained. The revision authorized the Administrator, with the approval of the Director of the Bureau of the Budget, to determine the extent of reimbursement to be made and directed him to "provide policies and methods to promote maximum utilization of excess property." The House and Senate committee reports on the bill which became Public Law 522 cautioned "that it was intended that when regulations are developed, due regard will be given to procedures that will either preclude undue augmentation of specific appropriations *** or take into account in subsequent appropriations prior transfers of excess property * * *” and, further, that transfers of property be "carefully related to the actual supply needs and inventory situation" in the receiving agency.

GSA IMPLEMENTATION

The "policies and methods" developed by the Administrator and approved by the Bureau to carry out this responsibility, as they relate to reimbursement, appear in GSA Regulation I-III-303.03. (See exhibit A, attached.) These regulations reflect the difficulty of providing administrative procedures which will "promote maximum utilization" and at the same time give due regard to the avoidance of appropriation augmentation. The policy is to require reimbursement at fair value except under specific conditions. The exemptions most frequently used by civil agencies to obtain property without reimbursement are:

(a) When the property is to be used to replace and upgrade existing equipment.

(b) When transfers at one time from one location have a fair value of $100 or less.

(c) When the agency has need for the property and certifies that it has no available funds to pay fair value (pauper's oath).

(d) When the property requires major repairs or is in poor condition. Property held in DOD working capital funds are not subject to these exemptions since the authority to price such property rests in the Secretary of Defense. However, DOD working capital fund excess property is available for transfer without reimbursement when the value at standard cost of the line item requested is less than $500. Plans are underway to raise this ceiling from $500 to $3,000, effective January 1, 1960.

Thus, under present policies agencies can acquire excess personal property, except DOD working capital fund excess property, without paying for it if they qualify under the approved exceptions to the general rule and make the appropriate certifications. In fact, over 90 percent of the excess personal property transferred in fiscal years 1958 and 1959 was without reimbursement.

« AnteriorContinuar »