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August 19, 1974
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Approved For Releas 2 Iq RpP7g. 038g A0130014-1 A gust 19, 197I~ C 7NGRESSII~AL REC~3K7g \ ,prove collective bargaining and encourage price restraint; (4) conduct public hearings necessary to provide r public scratiny of inflationary problen various sectors of the economy; (5) foe ttention on the need to increase product1vl , n both the public and private .sectors of. t economy; (6) monit the economy as a whole by aoquirli g as ropriate, reports on wages, costs, product y, prices, sales, profits, im- ports, and expo ` and ,(7) review an ppraise the various pro- grams, policies, a activities of the depart- ments and agency f the United States for the purpose of de fining the extent to which those progra and activities are con (b) Nothing in this (1) authorizes the continuation, imposit or reimosition of any mandatory econo controlps with re- spect to prices, rents, w s, salaries, corpo- rate dividends, or any s lar transfers, or (2) affects the authority nferred by the Emergency Petroleum Allo' on Act of 1973. 6Ec. 4. (a) Any departm or agency of the United States which col s, generates, or otherwise prepares or ma ins data or Information pertaining to th nomy or the Council. .(.b) Disclosure of information with the provisions of section 552 of 5, United States Code. .(d) Disclosure by a member or em- ployee of the Council of the confid ial in- formation as defined in section 19 of title 18, United States Code, shall be iola'tion strued as providing for or aorizing any Federal agency to divulge or make known any income tax return led pursuant to the provisions of the In nal Revenue Code gress,' from time to e, concerning its ac- tivities, findings, nd recommendations with respect to t containment of infla- tion and the main lance of a vigorous and SEc. 6, There Iffhereby authorized to be appropriated no to exceed $1,000,000 for the fiscal year nding June 30, 1975, to Mr. TOW . Mr. President, I move to reconsider e vote by which the bill was Mr. $. RKMAN. Mr. President, move to;. that motion on the table. The tion to lay on the table w disagrees to the amendment of the Sen- ate to the bill (H.R. 14883) to amend the Public Works and Economic?Develop- purposes; requests a confei The message al tablish managers of the of the House. and that the House recedes from its dis- agreement to the amendments of the Senate numbered 18, 22, 23, 24, 26, 36, 3 d recedes from its disagreement to the T the :joint the First Vietnam; The PRESIDING OFFICER. Is there objection to the consideration of the conference report? There being no objection, the Senate proceeded to consider the report. (The conference report is printed in the House proceedings of the CONGRES- SIONAL RECORD of August 7, 1974 at pp. I-17790-H7793.) Mr. CHILES. Mr. President, the con- ference was held on August 6, 1974. All conferees signed the report. As chair- man of the Procurement Subcommittee, I want to express my sincere apprecia- tion to my colleagues-Senators NuNN, HUDDLESTON, ROTH, and BROOK-who, as subcommittee members and conferees, gave unrelentlessly of their time to mold this legislation over the last year. The House has passed the conference report by a vote of 389 to 1. The importance of this legislation can- not be over emphasized in these times of rapid inflation. President Ford has -stated that we must work together to control Federal spending. The new Of- fice we are creating with this legisla- tion will have the necessary authority to clean up the maze of conflictions and duplicative agency spending practices that have kept the taxpayer from getting his dollar's worth in the Government's $60 billion annual purchasing bill. This conference substitute reflects, in all major respects, the Office of Federal Procurement Policy, OFPP, bill passed by this body on March 4, 1974. While there have been changes, the substance of the Senate bill has been retained. As originally passed by the Senate, we envisioned that an Office of Federal Pro- curement Policy would be created within the executive office of the President, which includes the Office of Management and Budget. The Senate bill did not specify where within the executive office, but the recommendation of the Commis- sion on Government Procurement, as re- flected in the House bill, specifically placed the Office within the Office of Management and Budget, OMB. As con- ferees, we accepted specifying the loca- tion of the office. But this was done only after we had the necessary assurances that the stature of the Office would not be diminished by its organizational loca- tion. These assurances took many forms. For example, the House agreed to estab- lish at the head of the Office an Admin- istrator to be subject to Senate corlfir- FEDERAL OFFICE OF PROCURE- mation. With the exception of the Direc- ME14T POLICY ACT-CONFERENCE tor of OMB and his Deputy, this Admin- REPORT istrator will be the only senior operating Mr. CHILES. Mr. President, I submit 'official in OMB subject to our confirma- a report of the committee of conference tion. on S. 2510, and ask for its immediate As an Administrator, we have also in- consideration. sured his independence. He will, for ex- regent of the Board of hsonlan Institution; f Dr. Murray Gell- of the Board of Re- TION OF COPYRI SION, S. 1361 I ask unanimous consent providing for the calling 'Calendar Order No. 995, atff vacated. The PRESIDING OFFICER. Without objection, it is so ordered. SAGE FROM THE HOUSE sent~tives, by Mr. Hackney, one of its Approved For Release 2000/08/27 : CIA,RDP75B00380R000600130014-1 c'~d S A-3287 The PRESIDING OFFICER (Mr. AL- LEN). The report will be stated by title. The assistant legislative clerk read as follows: The committee of conference on the dis- agreeing votes of the two Houses on the amendments of the House to the bill (S. 2510) to create an Office of Federal Procure- ment within the Executive Office of the Pres- ident, and for other purposes having met, after full and free conference, have agreed to recommend and do recommend to their re- spective Houses this report, signed by all the conferees. Approved For Release 2000/08/27 :CIA-RDP75B00380R000600130014-1 S 1528 g CONGRESSIONAL RECORD - SENATE ample, have his own appropriations ex- pandable only for the purposes specified in this act. He, and not the Director, must keep the Congress informed as to hi.s ac- tivities. Moreover, these activites must be limited to those specified in this act. !Ir. President, I am convinced that this Of- fice of l?ederai Procurement Poll cs is clearly at the level and with the inde- pendence eve intended for it. There should be no question raised in the future regarding the clear expecta- tion that the authority, functions ;and responsibilities granted the Office iri ":his act, shall be aggressively exercised by the Administrator. This act does not em- power the Director oi' OMB; It empowers the Administrator of the OFPP. S. 2510 contained it declaration of :po- licy providing a conceptual framework for the Conduct of Federal procurement, It intended to demonstrate that Congress now is, a;id will continue to be, an active watchdog of the procurement process. That declaration remains. To ass'-ire congressional participation, the Senate bill further required of the Administrator that he provide Congress with advance notices of proposed policy changes and that major policies would be subject to a veto by either House on a majority vote. I am pleased to inform my colleagues that while modifications were made to remove the eon;ress;.oral veto provision, strong advance reporting requirements were retained in' the con- ference substitute. We are all too painfully aware of the public climate of Government distrust. If is because of this that I insisted upon the inclusion of a sunshine provision in this bill to require that meetings for the pur- pose of establishing procurement, poli- cies will be open to the public in order that the Office be conducted so as to give substantial visibility to its deterrr ilna- tions. It gives me a great deal of pleas- ure to be able to report that the Semite sunshine provision has been agreed to by the House. Mr. President, this effectively high- lights our conference and the substitute bill agreed to by the conferees. It was, in my judgment, a successful conference. I believe that the conference slibst;.tote I am reporting on today accurately rep- resents the intent of this body and cleiir- ly sets forth a congressional mandate to bring about long overdue and funda- mental improvements in the procu;re- .ment process--improvements that ;should result in an effective and. viable Federal procurement system and ulti- mately benefit each and every one of us as Federal taxpayers. Mr. President, I urge its enactment. I ask i,.nanimous consent that sta'f;e- ments by Senator ROTH, Senator N,?n H, ,Senator F[UDDLESTON, and Senator BI;OCx in regard to the conference reps>r; be printed in the REcolrio. The PRESIDING OFFICER. Without objection, it is so ordered. STB.TE-`.ra.NT BY SENATOR RoTI1 I would like to join Senator (!hik-s, the rhairrrian of our subcommittee on Federal .procurenze st in expressing my agreement in the outcome of the conference on 5.:1510, the bill to create an Office of Federal Roo. curement Policy. The conferees of both the House and Senate are to be conrm.endeci for semi g forth %vi';h a conference bill which retains the character and purpose of the legislaation that was sent to conference by the rj-spective houses. I note that there was only One negat:;vo vote in the House on the conference bill when it was passed by that body on August 14. S. i510, the Office of Federal Procure- ment! Policy Act, will pit into Operation the first recommendation of the commission on government procurement. It is the corner- stone, of this 14t recommendations of the comrrjlssion to bring increase efficiency. ef- fectiveness and sconoiny in the purchase of Federal aIercies. Many of my colleagues will recall that tats commission was est:ab- lishecX by public law t:a November 1969 to take s comprehensive, systematic look at the vtay in which the Federal Government expenjals almost $-30 billion annually to pro- cure Brood and services. After 3 years of inten4ive study, the commission provided to the Congress a blueprint for Correcting the rpot causes of many of the ills that plague the procurement process and have been of so much to Congress and the public. The enactment of the Public Law estab- lishin., the Commission on Government Pro- curement, the development and passage of S. 25XO, and the deliberations of the con- ferees' have ')een characterized by a bipar- tisan [leterm='nation to insure that a dollar's value ts obtained for every dollar expended by the Federal G)vernraent in the acquisi- tion of goods, services and facilities. As a member of the subcommittee on Federal Procurement it has been a privilege to work with Senators Chiles, Brock, Huddleston, and Nunn in this kind of joint effort. The, Office of Federal Procurement Policy Act is but the first major legislative effort of the; subcommittee to update and restruc- ture the procuretr ent process of the Federal Government, to correct the abuses of the past, and to provide a system tailored to the demands of the future But it is the step that will set. the pace for the future. By acceptance of the -.onference report, the Sen- ate W41 have put someone in charge of pro- curempent policy in the executive branch for the flat time Sfgr>tiflcant).y, fit providing an executive branch focal point for procurement policy. as prescribed in the conference report, the conferees have limured that this Office will be responsive to ';he needs of Congress. As the report states, this has been done by the following- A requirerient for Senate confirmation of the Administxa.tar (the head of the Of- fire of Federal Procurement Policy) ; Vesting the functions of the Office in the Administrator; Separate appropriations for the Office which can only be used for the purposes spe- cified n the Act; A rehrulrement that the Administrator keep t1-1e Congress foil:7 and currently informed of his 6ctivitiss; A ref;uiremsnt t'sat the Administrator give the Congress SO days' advance notice before the effective date of any major policy; A provision that the Administrator is not to be j assiened any functions other than those $oecifeci in tie act. I join with Senator Chiles in asking the Members support of the conference report. With the acceptar.ce of this report , we will have rl4ade a goad beginning on a long over- due re4.urn to greater fiscal responsibility In the pifocess through which a fifth of the Federal budget is expended. ".iTArzrszNT BY SENATOR NUNN Today we are to vote on the bill to create a central Office, of Federal Procurement Pol- icy. _I joined in cosponsorship of this im- portanjt measure because it provides the sorely 4 needed guidance and control over FederaX agency procurement processes. Over the years, we watched agency regu- lations, procedures and forms multiply and divide with little rhyme or reason., leaving a labyrinth of diverse procurement rules and regulations, Our tax dollars are. buying paperwork and red tape as much as they are buying needed goods and services, and, at the same time, making it more difficult for business to coo business with the Government, Our Federal Government now spends over $80 billion annually ill. procurement out- lays. This ccupled with over $50 billion spent In grants, amounts to 40% of the Federal budget. We can no longer afford to overlook opportunities for improving economy and efficiency ir.. such a va.t area of Federal spendings. The President of the United States has committed himself to the resolution of our Nation's economic difficulties as his top pri- ority program. In the short run, we can re- ceive benefteial results by reducing this year's Federal budget. It. is a painful but necessary exercise and one in which. we can not afford tc play favorites. Item by item cuts on a year to year basis alone, however, will not prove suftlcient to bring about- an ordered system of control over the Federal budget. By establishing the Office of Federal Procurement Policy we will have a central policymaking authority in- dependent or any agency with the long-term task to be sure that every dollar spent on contracts is well spent. In our conference report we made certain that the O'FPP will have directive rather than advisory author- ity, and that. it will be directly responsive to Congress. Mr. President, in my opinion, this legis- lation is desperately needed. We mrinot in good conscience ask the American people to tighten their belts unless we tighten ours. We cannot e:cpect them to put their house in order until we ourselves take action to clear out the bureaucratic cobwebs from the Fed- eral Government's purchasing practices. I join with the distinguished Senator from Florida and other members of the Pro- curement Subcommittee to urge the Senate to pass, favorably on this conference report. STATEMENT BY SENATOR HUDDLErroi I support ''';he conference report on S. 2510 and to commend the distinguished Chairman (Mr. Chiles) of the Subcommittee on. Federal Procurement and the ranking minority, the Senator front Delaware (Mr. Roth). As one of the Senate conferees, I urge my colleagues to pass this legislation so that we . can get on with the business of instituting real, meaningful reform in Federal spending practices. The chairman has already emphasized the tax savings to be gained through this. legisla- tion and goodness knows that taxpayers need a break. Americans need to know that their tax dollar is being spent with the utmost care. But equally important, taxpayers need to have faith In the procurement system they support. Mr. President, the subcommittee heard too much evidence of conflicting, confusing. complex regulations; we heard too much evi- dence of bureaucratic red tape strangling and stagnating a system which disburses over $60 billion a ;rear. We heard coo much evidence of the need for reform, not to do something. I think the "something" we did as embodied in S. 2610 is a hard, realistic first step toward restoring public trust and faith in the procurement process. The Federal procurement process Involves everything from purchasing, pencils to missile systems, but the common denominator is that it's all being bought with hard-earned taxpayers money. We owe it to those tax- payers to provide a system that unifies the current fragmentation, standardizes the cur- rent haphazard maze of doing things, and offers a focal point for future leadership. Approved For Release 2000/08/27 : CIA-RDP75B0038OR000600130014-1 19Aq@rjo4/ed For ReI Q =R1M 6 68- 00130014-1 SEC. 2. Subsection 5(c) of the Natural Gas Pipeline Safety Act of 1968, as amended (49 U.S.C. 1671), is amended by renumbering paragraphs (2) and (3) as (3) and (4), re- spectively, and by inserting a new paragraph (2) AA fnllows: by section 15(b) of this Act shall be allocated among the several States to aid in the con- duct of pipeline safety programs approved in accordance with paragraph (c) (1) of this section.". SEc. 3. The text of section 15 of the Act is amended to read as follows: "SEc. 15. (a) There are authorized to be appropriated such sums as are necessary not to exceed $2,000,000 for the fiscal year ending June 30, 1975 for the purpose of carrying out the provisions of this Act, except that the funds appropriated pursuant to this subsec- tion shall not be used for Federal grants-in- aid. "(b) For the purpose of carrying out the provisions of subsection 6(c) of this Act, there is authorized to be appropriated for Federal grants-in-aid, the sum of $1,200,000 for the fiscal year ending June 30, 1975.". The need for honest reform in procurement goes beyond the much heralded cases of cost overruns, and cries out for simplicity and clarification of regulations and statutes. I personally feel that the conference bill expresses the desire of Senate and deserves enactment. I urge acceptance of the confer- ence report. STATEMENT BY SENATOR BROCK 'I want to associate myself with and sup- port the remarks made by other members of the Subcommittee on Federal Procurement. I believe the conference bill is a good one and should be accepted by the Senate and sent to the President for his signature. It is-and has been--extremely wasteful to have fragmented regulations issued by each agency governing the procurement sys- tem. The conference bill before the Senate will give us the opportunity to provide a uniform set of regulations and policies where none now exist, among other vital functions for the Office. I, for one, personally support President Ford's call for curtailing government spend- ing. The Federal Government must tighten its belt and establishing the Office of Federal Procurement Policy can help us do so by trimming the excess costs of paperwork and bureaucracy off the government's $60 bil- lion a year purchases. This Office has a man- date and the authority to promote efficiency within the government and promote positive spending practices, and I expect it to be ag- gressively implemented. Mr. President, I believe the conference bill reflects all the major points passed by the Senate and recommended by the Conimis- slola on Government Procurement in its report. I Join the Chairman and commend the other Senate conferees In working to produce this bill. Mr. President, I urge favorable Senate ac- Mr. CHILES. Mr. President, I move the adoption of the conference report. T1h2. n was agreed to. and they can and do work. Similarly, at the state and local lev islation should be enacted to req I with tractors to notify, via a one cal itie, t similarly effective system, all u to commencing work. The itia itic IME should be required to respo with priate markings and assists to coni d r t e f so as to avoid damage t r Also, I believe that t is a critic nspc e for examining the ad say of exist e this year, I h e e spection and staff. road a w n duced S. 3245, the expand the ro coni d r n a n d Safety Board b b which would broad went Act of 197 f the National Tran d in surface transPc, tion Safety r safety, Inc i r introduce n is Safety, in my judgment. is E y e are only on pip e safety. Similarly. the C s T Pipel ed with only eighteen prof, der t u e yees. One might feel better if t1- e a y n isi v the states in this field were ac h w C. BYRD. Mr. President, ACT AMENDMENTS OF 1974 bill (S. 3620) to, amend the Natural Gas Pipeline Safety Act of 1968, as amended, to authorize additional appropriations, and for 'other purposes which had been dig June 30, I`000 for the 978". Mr. BEALL. Mr. President, I ask unan- imous consent that additional views I at- tached to the report from the Commit- tee of Commerce in respect to this bill be as follows: that this Act needs more the simple ex- tension, without even a sing day of hear- ings. In fact, the growing pr em of natural My interest in nature as problems grew out of the series of a osions which have ment to the Depar ent of Transportation Appropriations bi authorizing a study of the growing pro m of natural gas explo- 'struction activities see be an area that cries out for immediate a on. These are steps that can and should en to dra- cidents." When we keep in mind that dam- age to pipeline during excavation is already the primary cause of pipeline accidents, and it is estimated by the Association of General Contractors that between now and the year 2000, the United States will match all the construction that has taken place in our Na- tion's history, the need for action, and action now, to prevent construction-related acci- Approved For Release 2000/08/27 : CIA-RDP75B0038OR000600130014-1 S15289 dents to pipelines and other underground utilities is apparent. States, for example, should be required to establish statewide utility coordination coun- cils and see to it that local councils are es- tablished in appropriate areas within the State. These are ongoing in a number of areas leg- con- recent study that both the Office of Pipeline Safety and the Maryland Public Service Com- Little or no on-sight inspection was found to be conducted by State and Federal agencies to verify compliance with regulations. Mary- land had only one pipeline safety inspector tive State in this regard. At the very mini- mum, I believe that the Federal grants to the State must be sufficient to pay for the cost of a full time safety engineer and not less right to offer floor amendments or to offer amendments to subsequent bills which the Commerce Committee will be considering. I was pleased that the Committee, during our discussions of the reported measure, indi- cated its willingness to entertain such amendments to another measure at a later time. I will be discussing and working with my colleagues in determining the best course able to conduct the needed and serious eval- uation of this growing problem of natural The amendments were agreed to. OF 1971 The Senate proceeded to consider the bill (S. 3801) to authorize the Federal Farm Credit Board to fix the compensa- tion of the Governor and the Deputy Governors of the Farm Credit Adminis- tration which had been reported from the Committee on Agriculture and For- S 152!tf1wv71 wl "` ` CO1\ GA ESSI DP4 A L R CORD - SENATE lztirr,3t r.). es 8, xtftwout "*, and- try with amendmen insert 1, n l ne ~~Tlie }i IEi)I.NG OFFICER. Without ate, I mote, in acccrrt?arice with the pre insert Iir lieu eof "'5". On page 2, in line 7, strike out "T, B-e it enacted by the Send Howie of Pay Schedule" and inserting in lieu is*:reof by the l5ederal Farm Credit Board without regard to the provisions of title 5 c t the United Bates Code relating to classifica tioal and pay". (b) The-second sentence of section 0.:3 is amended by striking out "not exceel the inaximuln schedule rate of the general ached- ule Of t: a C?lasstiication Act of 194:9, as amended" and Insetting In lieu therecd "be at the rains fixed by.tha Federal Farm Credit Board wi,lout regard to the provisions of title 5 of the United Stea Code reiatinil to clasafHctton and pay". S?c. 2. Section 5814 of title 5 of the United States Code is amended by striking out pura- graph (58). The aillendments were agreed to. The bill was ordered to be cllgroa sed for a third read, read the third tune, and passed. Mr. ROBE1,T C. BYRD. Mr. President, I move to reconsider the action by %hich both bills were passed. Mr. CEEUFT'Ili. I move to lay that nio tion on the table. The motion to lay on the tabl Mr. ROBERT C. B-1 I ask unanimous Senator Bias::v be exceed 15 minutes. PROGRAM RO1iP1Z7' C. BYRD. Mr. President. will convene at 9 o'clock to. Ater the two leaders or their designee,; have been recce?mized under the standing order, ther3 wit be a period for the trans-. action of rourziie morning business with statements limited therein to 3 minute; eaclr., the pericd to extend to no late;' lie ri 9::,5 to 1:15 p.m., with th time to ?equa ly divided between AA debate on the _ ticrn to invo cloture under rule QI 1 begin mM- Wing. Atthe hour Cif 2 m. e automatic quort,m call 9,r.11 . nd upon the establishment of a , or at about 2:30 p.m., the rialto to all vote will occur on the inc Iff to inv cloture on W1 at ha r.s after the v n the Senate will then proceed to the con- siderstion of H.R. 16:343, an act making appropriations for the Department of Defeii;se for '?a)le fiscal year ending June 30, 1975. So 'at least one ro]!lcall vote will oc- cur tomorrow 21 about 2:30 p.m. and other; rollcall votes may follow. ADJOURNMENT UNTIL 9 A.M. Mr, ROBERT C. BYRD. If there be no further businen to come before the Sen- Approved For Release 2000/08/27 : CIA-RDP75B0038OR000600130014-1 violas order, that the Senate stand in ad- journriaent until 9 a.m. tomorrow. The m(Ytion was agreed to, and, at 6.48 p.m., the Senate adjourned unti}.tomor- row, Tuesday, August 20, 1974ARt t a.ni. Executive rrcmti i :received by the Senate August 74: I Axe FORCE rates Code: To be majir. gem'ral r Nations:: Guard. To be brigaei -r gs:aera:. Brig, Gen. John T, C1-lice, 427-64--76131-G. Air Netiona] Guard. IN THE U.S. C`AST GUARD The fs,ilovting-named a Neer to be a pernia- nnent commissioned officer in the Coest Guard in the grade of captain having been found flit for daty while on The temporary dh- ability retired list. Hugh C. McOalfrey The foilovring-name,l t ficc, to be a pern.a- nent eon;ni,sioned office' in the Coast Guard in the grade of chief warrant o810er, W4 having been found fit for duty While on the temperer; disability retired Lat. Russell A. Scruggs The follow ing-nameei o'rlcer to he a Fersn.e.- ent commissioned officer in the Coast Guard asuablilty retired list. L. Woford \\TION Executive nation eori rmed by the Senate A 119W,19, 1974: COLNCn. OF LMIC ADVI5F..RS Approved For Release 2000/08/27 : CIA-RDP75'B00380R000600130014-1 August 14, 1974 CONGRESSIONAL RECORD-. HOUSE "yea" vote in favor of the Federal Elec- tion Campaign Act of 1974. APPOINTMENT OF CONFEREES ON H.R. 15842, INCREASING COMPEN- SATION FOR DISTRICT OF CO- LUMBIA POLICEMEN, FIREMEN, AND TEACHERS Mr. DIGGS. Mr, Speaker, I ask unan- imous consent to take from the Speak- er's table the bill (H.R. 15842), to in- crease compensation for District of Co- lumbia policemen, firemen, and teachers, to increase annuities payable to retired teachers in the District of Columbia, to establish an equitable tax on real prop- erty in the District of Columbia, to pro- vide for additional revenue for the District of Columbia, and for other pur- poses, with a Senate amendment there- to, disagree to the Senate amendment, and request a conference with the Sen- ate thereon. The SPEAKER. Is there' objection to, the request of the gentleman from Michigan? The Chair hears none, and appoints the following conferees: Messrs. DIGGS, FRASER, STUCKEY, DELLUMS, REES, MAZZOL.1, NELSEN, HARSHA, BROYHILL Of Virginia, and GUDE. VCONFERENCE REPORT ON S. 2510, OFFICE OF FEDERAL PROCURE- MENT POLICY Mr. HOLIFIELD. Mr. Speaker, I call up the conference report on the Senate bill (S. 2510) to create an Office of Fed- eral Procurement Policy within the Ex- ecutive Office of the President, and for other purposes, and ask unanimous con- sent that the statement of the managers be read in lieu of the report. The Clerk read the title of the Senate bill. The SPEAKER. Is there objection to the request of the gentleman from Cali- fornia? There was no objection. The Clerk read the statement. (For conference report and statement, see proceedings of the House of August 7, 1974.) Mr. HOLIFIELD (during the reading). Mr. Speaker, I ask unanimous consent that the further reading of the state- ment be dispensed with. The SPEAKER. Is there objection to the request of the gentleman from Cali- fornia? There was no'objection. (Mr. HOLIFIELD. asked and was given permission to revise and extend his remarks.) Mr. HOLIFIELD. Mr. Speaker, I yield myself a very brief period of time. Mr. Speaker, I am privileged to report to the House _on the successful outcome of the conference with the other body on S. 2510, the bill to establish an office of Federal Procurement policy within the Executive Office Of the President and for other purposes. The conference was held on August 6, 1974. All conferees signed the report and the statement. I wish to express my appreciation to Representatives, ST GE$MesN, FUQUA, HORTON, and ERLENBOR1 for the time they gave as House conferees and their dedicated work in helping to resolve the differences between the House and the Senate bills. The substance of the House bill, I am pleased to report, is preserved in the con- ference substitute. All changes accepted by the conferees to resolve differences are consistent with the purposes of the House bill. As the Members will recall, the Sen- ate and House bills established an Of- fice of Federal Procurement Policy to provide Government-wide direction of policy for procurement by the executive agencies and Government grantees. The Senate bill placed the Office of Federal Procurement Policy in the Executive Of- fice of the President. The House bill placed it within the Office of Manage- ment and Budget, a component of the Executive Office. The conference substi- tute adopts the provision of the House bill in locating the Office of Federal Pro- curement Policy in the Office of Man- agement and Budget. This accords with the strong preference of the administra- tion and the Commission on Government Procurement and, in the judgment of the conferees, will give the new Office the prestige and leverage required to accom- plish its mission. The conference substitute designates the head of the new Office as Adminis- trator for Federal Procurement Policy. The conferees accepted this provision from the Senate bill in lieu of a provi- sion in the House bill making him an Associate Director for Procurement Pol- icy of the Office of Management and Budget. The conferees agreed to author- ize compensation for the Administrator at executive level IV, $38,000, as provided in the House bill rather than executive level III as provided in the Senate bill. Retained from both the Senate and House bills was the provision for ap- pointment of the Administrator by the President with the advice and consent of the Senate. I may point out that the Administrator will be the only official in the Office of Management and Budget below the level of the Director and Dep- uty Director who will be subject to Sen- ate confirmation. The conference substitute incorpo- rates a declaration of congressional pol- icy to promote economy, efficiency and effectiveness in Government procure- ment. This is substantially the same as the declaration contained in the Senate bill and approved by the House in the 91st Congress as a part of Public Law 91-129, the act establishing the Com- mission on Government Procurement. The Senate bill included a provision which required the Administrator to give advance notice of any proposed major policy change to the Senate and House Committees on Government Operations and made the proposed change subject to disapproval by resolution of either House. In place thereof the conferees agreed to accept a modified version pro- viding simply for 30 days' advance notice to the congressional committees, elimi- nating the provision for congressional disapproval but allowing a waiver by the President of the notice requirement in emergency situations. The House bill provided for continuing H 8315 authorization of appropriations without specifying a yearly sum or a time limit. The Senate bill authorized $4 million for the first fiscal year and appropria- tions in unspecified sums for the 4 years thereafter. The conferees agreed to ac- cept the Senate provision with a mod- ification to reduce the authorization for the first fiscal year from $4 million to $2 million. In consequence, at the end of 5 years the' Administrator will have to come before the appropriate commit- tees of Congress for a new authorization of appropriations, at which time there can be a new evaluation by the Congress of the past accomplishments and con- tinued justification and needs of the Office. The conference substitute includes other changes to accommodate a number of special provisions in the Senate bill. These include: First, a direction that the Administrator make a study of non- appropriated fund activities; second, a limitation on the authority of the Ad- ministrator to delegate to other agencies his basic policy-making responsibility under the act; third, a requirement that the Administrator keep the Congress and its committees fully and currently in- formed of the major activities of the office; and fourth, a provision that the Administrator make formal meetings to establish procurement policies "open to the public" on 10 days' advance notice. In all other respects, except as to minor matters of form and language, the con- ference substitute conforms to the House bill. This was, in my judgment, a very suc- cessful conference. In resolving dif- ferences, we have kept in mind legitimate requests of the administration and ar- rived at a substitute which retains all important features of the House bill, If the House approves this report, I am confident that the bill can be sent to the President within a few days, and we will have given effect to a key recommenda- tion of the Commission on Government Procurement, thereby providing the mechanism for carrying out other im- portant recommendations of the Com- mission. I ask the Members to support the con- ference report. (Mr. HOLIFIELD asked and was given permission to revise and extend his re- marks.) Mr. HOLIFIELD. Mr. Speaker, I now yield such time as he may consume to the gentleman from New York (Mr. HORTON). (Mr. HORTON asked and was given permission to revise and extend his re- marks.) Mr. HORTON. Mr. Speaker, I am pleased to agree with Chairman HoLI- FIELD's statement that-this conference bill reflects, in all major respects, the OFPP bill passed by the House on July 15, 1974. There are' no significant ad- ditions or deletions from the House bill. I would like to comment briefly on a few of the points in the conference bill: The Senate conferees accepted the House position that the OFPP should be a part of the Office of Management and Budget. The only change we were asked to accept in this matter was a new title Approved For Release 2006"/08/27 : CIA-RDP75B0038OR000600130014-1 Approved For Release 2000/08/27 : CIA-RDP75B0038OR000600130014-1 1 8316 CONGRESSIONAL RECORD -HOUSE for the head of the. Office; he is to be known as the "Administrator for Fedual Procurement Policy. The Administrator was made an executive level IV as in the House bill. so he will be comparable to the associate directors of OMB, who are the principal line officers of that orga- nization. We except the Administrator, working under the direction and super- vision of the OMB Director, to bring the full resources of his Office and other ap- propriate resources of OMB to .bear on reforlning the Federal procurement 1;ys- t The conference bill includes a decls,rr- Lion of policy provision comparable to that found in the Senate bill. The del la- ation of policy provision in the Serialle bill was the same as that contaknett. in Public Law 91-129, which est.ablishi:id the Commission on Government Pra- curementi. The Se hate conferees receded from their prov:sion authorizing congressicnal vetoes of major procurement policies land recommendations. Instead, the confer- ence bill :requires the Administrator to notify the Congress of major procurit- rnent policies and regulations 30 days be- fore they would take effect, with an ap- propriate waiver provision for emergen- cies. The conference bill includes modi cad Senate previsions emphasizing the desire of the Congress that major procurement policies be made openly and with is much public participation as is practlcst- ble. The Administrator will desigr ate those formal meetings called to finalize major procurement policies and regula- tions which should. be opened to the public and will provide appropriate >:'rt.- cedures to be followed in the conduc, of such meetings. Finally, the conference bill has a modi- fied authorization of appropriations i e - tion. The House bill authorized such funds as may be appropriated for an in- definite period of time. In our report, we estimated a cost of approximately $1 ra I- lion a year. The Senate bill authorized $4 million for the first fiscal year and such sums as may be appropriated for the next 4 fiscal years. The conference bill authorizes $2 million for the first fiscal year and such sums as may be aprlna- priated only for the next 4 years. The conference bill deserves; enssct- ment. It meets the objectives of the Cont- mission or l, Procurement? It will serve; as the Commission felt it should, as the cornerstone of our efforts to create an effective and viable Federal procurement system. The Office will pro- vide the necessary coherence and direc- tion for future Federal procureniel:it policy. The benefits to be gained from this legislation will redound to the aill- ciency and effectiveness of all Federal programs, to those who work under Fed- eral contract or receive Federal assist- ance, and ultimately to all Federal tat:- payers. Mr. Speaker, I urge acceptance of the conference report. Mr. HOLIFIELD. Mr. Speaker, I move the previous question on the conference report. The previous question was ordered. The SPEAKER. The question is on the conference report. August 14, ;1974 The; question was taken; and the Morgan Rose Thompson, N.J. Speaker announced that the ayes ap- Mosher Rosenthal Thomson, Wis. peare4 to have it Moss Rostenkowski Thone . Mr. WYDLER. Mr. Speaker, I object Murphy, Ill. Roush Thornton Murphy, N.Y. Roy Tiernan to the vote on the ground that a quorum Murtha Roybal Towed, Nev. is not' present and make the point of Myers Runnels Traxler Hatcher Ruppe Treen order :hat a quorum is not present. Nedzi Ruth Udall TheSPEA:KER. Evidently a quorum is Nelsen Nichols Sandman Van Deerlin not present. Nix Sarasin Vander J'agt The; Sergeant at Arms will notify ab- Obey Sarbanes Vander Ireen sent Members. O'Brien Satterfield Vanik O'Hara Scherle Veysey The; vote was taken by electronic de- O'Neill Schneebell Vigorito vice, end there were-yeas 389, nays 1, Owens Schroeder Waggonner Parris Sebelius Waldie answered "p:reser.t" 2, not voting 42, as Patinan Seiberiing Walsh follows: Patten Shoup Wampler [Roll No. 4851 Pepper Shriver Ware Perkins Shuster Whalen YIiAS--3 89 Pettis Sikes White Abdnor Crane Henderson Peyser Sisk Whitehurst Abzug Cronin Hicks Pickle Skubitz Whitten Adams Culver Hillis Pike Slack Widnall Addabbc Daniel, Dar. Hinshaw Poage Smith, N.Y. Wiggins Andelscn, Daniel, Robert Holif eld Pcdell Snyder Wilson, I3ob Calif.: W. Jr. Holt Powell, Ohio Spence Wilson, Anderson, Ill. Daniels, Holtzman Preyer Staggers Charles H., Andrew. N.C. Dominick V. Horton Price, 111. Stanton, Calif. Andrews, Danielson Roamer Price, Tex. J. William Wilson, N. Dal. Davi;;, S.C. Howard Pritchard Stanton, Charles, Tex, AnnunzXo Devil, Wis. Hudnut Quie James V. Winn Archer de Ia Garza Hungate Quillen Stark Wolff Ashbroak Delaney Hunt Reiisback Steed Wright Ashley Dellenback Hutchinson Randall Steele Wyatt Aspin Denholm Ichord Ranger Steelme,n Wydler Badillo Denr.is Jarman Rees Steiger, Aria. Wylie Bafalis Dent Johnson, Calif. Regula Steiger, Wis. Wyman Baker Derwinski Johnson, Colo. Rtuss Stephens Yates Barrett Devine Johnson, Pa. Rhodes. Stokes Yatron Bauman Dirk: nson Jones, Ala. Rinaldo Stratton Young, Alaska Beard Dii;gG Jones, N.C. Roberts Stubblefield Young, Fla. Bell Donc hue Jones, Okla. Robinson, Va. Studds Young, Ill. Bennett Dorn Jordan Rodin Symington Young, E.C. Bergland Downing Karth Roe Symms Young, 7'ex. Bevill Dr:in;an Kastenmeler Rogers Talcott Zeblocki Biaggi Duncan Kazen Roncalio, Wyo. Taylor, Mo. Zion Blaster du Punt Kemp Roncalio, N.Y. Taylor, N.C. Zwach Bingham Eckhardt Ketchum Rooney, Pa. Teague Blackburn Edwssds, Ala.. Kluczynskl Blatnik Edwssds, Calif. Koch NAYS-?l Boggs Eilberg Kyros Landgrebe Boland Erler.born Lagomarsino Bolling' Each Latta ANSWERED "PRESENT"-2 Bowen Eshleman Leggett Findley Ryan Brademes Evans, Colo. Lehman ' Bray Evan;;, Tenn. Lent NOT VOTING-42' Breaux Faseoll Litton Alexander Grover Mitchell, Md. Breckinridge Fish Long, La. Arends Gubser Passman Brinkley Fiehcr Long, Md. Armstrong Gunter Rarick Brooks Flood Lott Brasco Hansen, Idaho Reid Brooms ld ~ Flowers Lujan Carey. N.Y. Hawkins Riegle n Brotzma Flyn Luken Collier Hebert Robison, N.Y. Brown, Calif. Fo",el' McClory Conte Hogan Rooney, N.Y. Brown, ]c4ich. Ford McCloskey Davis, Ga. Huber Rousselot Brown, Ohio Forsythe McCollister Delluma Jones, Tenn. Shipley Broyhill, N,C. Fountain McCormack Dingell King Smith, Iowa Broyhill, Va. Fraser McDade Duiski Kuykendail Stuckey Buchanan Freli lghuysen McEwen Frenzel Landrum Sullivan Burgener Frey McFall Grasso McSpadden Williams Burke, Calif. Burke Ma Froehlich Fulton McKay McKinney Gray Macdonald Young, Ga. , . Burke, Iris. Fugi;a Madden So the conference report Burlesotc, Tex. Burlison Mo. Gaydos Gett?s Madigan Mahon to. , Burton, John Giairco Mallary The Clerk, announced the following Burton.,'Philiip GibbDns Mann pairs : Butler Gilman Maraziti Byron Ginn Martin, Nebr. Mr. Hebert with Mr. Arends. Camp Gold water Martin, N.C. Mr. Rooney of New York with Mr. Grover. Carney, Ohio Gonzalez Mathias, Calif. Mr. Shipley with Mr. Passman. Carter doodling Mathis, Ga. Mr. Jones o:' Tennessee with Mr. Rerick. Casey,'.P'x. Gree.s, Oreg. Matsunaga Mr Dingell :with Mr Reid Cederbetg Chamberlain Gree:a, Pa. Griffiths Mayne Mazzola . . . Mrs. Grasso with Mr. Gubser. Chappell Gros:; Meeds Mr. Hawkins with Mr. Hogan. Chisholm Dude Melcher Mr. Carey o:' New York with Mr. King. Clancy Guyer Metcalfe Mr. Dellums with Mr. Gray. Clark Hale1 Mezvinsky Mr. Gunter with Mr. Collier. Clausen, Ham:iton Michel Mr. Mitchel: of Maryland with Mr Dulski Don 1. Clawson? Del Hamner- Schmidt Milford Miller . . . Mr. Landrum with Mr. Conte. Clay Hanh:y Mills Mr. Macdonald with Mr. Davis of Cleorgla. Cleveland Hanr_a Minish Mrs. Sullivan with Mr. Frenzel. Cochran Uanrahan. Mink Mr. Smith of Iowa with Mr. Hansen of Cohen Hansen, Wash. Minshall, Ohio Idaho. Collins, i11. Harrington Mitchell, N.Y. Mr. Young of Georgia with Mr Robison of Collins, TeX. Conable' Ha:rslia Hastings Mizell Moakley . New York. Conian Hays Moilohan Mr. Alexander with Mr. Williams. Conyers' C ! Hecker, W. Vs. Montgomery k Mr. McSpadden with Mr. Huber. orman Hee .er, Mass. Moorhead, .Mr Riegle with Mr Kuykendall Cotter CoughlliL Hetnu Hei?tooki Calif. Moorhead, Pa. . . . Mr. Stuckey with Mr. Rousselot. Approved For Release 2000/08/27 : CIA-RDP75B0038OR000600130014-1 Approved For Release 2000/08/27 : CIA-RDP75B0038OR000600130014-1 -' ! ;fiS March 27, 1974 CONGRESSIONAL RECORD -SENATE J ~~ c S 4519 dollars and this year may reach the fantastic total of 20-billion dollars. The 10 billion dol- lar surplus in agricultural exports over agri- cultural imports this year is expected to out our trade balance in the black for the first time since 1970., By the way, this surplus will be enough to pay for all of our imported energy this year. U.S. agricultural exports are the primary reason that the American dollar is gaining strength. This is important if we are going to be able to meet the higher prices for oil and other energy Riaterials that we must have to keep our system working. It is also significant to note that the international role of agriculture has changed from one primar- ily of aid to one of commercial trade. THE BENEFITS OF FULL PRODUCTION All farmers in the United States would much rather produce from fence to fence than to operate with acreage restrictions provided, of course, that they received a fair return for their efforts. Expanding agri- cultural exports have resulted in tremen- dous savings to the United States taxpayer. Land retirement and subsidy costs were run- ning about 4 billion dollars annually for 40 million acres. 'For wheat alone, 20 million acres were annually withdrawn from produc- tion at a cost of about one million dollars. I must point out, however, that farmers are worried over the potential effect of over- production.-We do not want to build up price depressing surpluses again. Frankly, we are quite concerned as to the extent that the predicted 2 billion bushel wheat crop this year will affect price levels in the face of rapidly escalating costs. The cost of producing wheat has rise?4 dramatically during the past year. Last Junk, a farmer in Western Nebraska paid $55 Jer ton for anhydrous ammonia-today he gray have to pay as much as $400 per ton, f he can find it. Farm machinery is imps#sible to purchase off from the lot. It oftel takes a waiting period of 6 to 9 months t : obtain a new farm truck, tractor or co mine. A medium size combine, equipped to har- vest corn, now costs $37,000. Threetyears ago a farmer had to pay $12,000 alojlg with a trade in of a good used combin This year his cash cost for the same tract has risen Fuel costs have more thanoubled. Last spring the farmer could buy esel fuel for 16? per gallon; now it cots;- 7Q. Last year he could buy gas for 27?; t 4s year 480 per gallon. Furthermore, there a no discounts for volume tank purchases. These are a few examnlJnf 'the many in- are concentrating our efforts in'a wide range of "trade-servicing" activities. Trade servic- tion, providing technical assistance,dnd gen- erally improving the climate of,,, grade. Be- markets today, there is an strengthen communication 1 Market development tions could be called a pansion." There are believe that market always be essentail that expansion of many commodities and ricultural exports will time that he skfbuld install an extra phone and keep his .Itcase packed. WHE Do wE GO" FROM HERE? While co "chiding my remarks, may I ask this que on of everyone in this room, "Where -o We Go From Here?" Are we still in a sei is market? Or are we In the transi- tion t buyers' market. The price of wheat has llen sharply during the past three weeks-over $1.00 per bushel. During this pas year, we have been on a jet plane ride in'the market, soaring to new highs in prices ing along at 30,000 feet but occasionally an engine falters and, as we nervously grip the armrests, we wonder "Where Do We Go From Here?" - We are still rocketing along in space, sub- ject to sharp climbs and abrupt frightening falls. We cannot predict for sure what will happen during the next few years, or even the next few months. Too many factors that are uncontrollable and cannot be fore- seen affect our situation; but we do know that we must continue to carefully plot our course and that we must use every moden facility to scan ahead for storm- clouds as well as sunshine. We can do much to pilot our own ship. We have customers to serv- ice-a crop is planted and must be sold following harvest. With your cooperation and support, we will continue to climb to new heighths, along a smooth path and to a smooth landing onward toward our next objective. creased costs of farm inlruts that require """"? y"' much higher prices for heat and- other I.+-- - commodities than 12 or months ago. They SENATOR CHILES ON PROCURE- continued expansion of ' gricultural exports system. PRODUCTION FAR E; A more practical we must continue t tion far exceeds this marketing y total use. Do*estc use will only utilize 38% of our estimated 1974 wheat production. The export market today is far bigger than our domestic market. CQNTINBING MARKET DEVELOPMENT IN A SELLER'S MARKET Let me come back again to a point made as I began tliese remarks. Great Plains Wheat and Western Wheat Associates must con- tinue a market development program even though we have been in a seller's market. We Mr. CHILES. Mr. President, on March 1 of this year, the Senate passed S. 2510, a bill to create an Office of Fed- eral Procurement Policy (OFPP). The bill has been referred to the House Gov- ernment Operations Committee and, with Chairman HoLIFIELD's dedicated leadership, we will probably see action on the bill by the House before the end of May. By its prompt action, the Senate has shown a unique response to a docu- mented need and has taken steps to fill a void in procurement direction and guidance. Mr. Arthur F. Sampson, the Admin- istrator of General Services Administra- tion, who served with Chairman HoLI- FIELD and myself on the Procurement Commission, is an articulate spokesman for procurement reform. He spoke to the Federal Bar Association briefing on Government Contracts on March 5, 1974 and addressed himself to the issues in- volved in trying to promote changes in this vital area. The two basic goals that Mr. Samp- son emphasized deal with problems that S. 2510 seeks to eliminate: Modernizing the mammoth Federal procurement sys- tem and, thereby, making it easier for the private sector to do business with the Government. Mr. President, I ask unanimous con- sent that Mr. Sampson's remarks be printed in the RECORD. There being no objection, the state- ment was ordered to be printed in the RECORD, as follows: REMARKS BY ARTHUR F. SAMPSON The Procurement Commission report is over a year old. And it isn't getting any younger. Or more exciting. Or more full of potential. Over the past year the report has generated a lot of interest. A lot of guessing, and more speeches than any of us would care to hear. I, myself, have gone out around the coun- try-and I know some of the other commis- sioners have, too-much like a missionary. Selling the need for change in Federal pro- curement and offering the Procurement Com- mission report as the basis for that change. What I've been saying is really very sim- ple. I've been saying that all the changes needed in Federal procurement and all the changes recommended by the commission are focused on two fundamental goals: GOAL NO. 1 We've got to modernize the mammoth Federal Procurement System. And GOAL NO. 2 We've got to make it easier for the private sector to do business with the Federal gov- ernment. All our efforts, I've said, should be devoted to these two goals. The first goal-modernization-is really directed to the workings of the Federal pro- curement establishment. And it's a massive.. establishment-thousands of specialized em- ployees, a $57 billion annual "output" of procurement actions, and every citizen of this country as a direct or indirect client. In so large a system, there is bound to be some waste, some inefficiency, some conflict. We must seek them out and eliminate them. And we must search out the logic in the sys- tem. The economies we can make. That's a fundamental aim of all the procurement com- mission recomendations and all our work to implement them. The second goal-making it easier to deal with the Government-is equally important. It deals not with the inner workings of the system so much as the outward face of it. It's a concern not so much for operating efficiency as for quality of product. It's as simple as this: The easier we are to deal with, the more attractive Federal business becomes to private businessmen. The more attractive the market, the more competition. And more competition means better products and better services for the taxpayer's dollars. These two goals are what the procurement commission is about. That's what I've r)een saying for the past year and I still believe it. And the responses to this view are very encouraging. There is a lot of interest and a lot of attention and a lot of concern with the Federal procurement system shared by groups such as yours and by private citizens around the country. But what's really happening? To someone not familiar with the ins and outs of Fed- eral procurement there wouldn't seem to be much change or much current action. - Well, that's a pretty good guess. Approved For Release 2000/08/27: CIA-RDP75B00380R000600130014-1. Approved For Release 2000/08/27 CIA-RDP75B0038OR000600130014-1 S4520, C:O.NGRE4SIONAL RECORD - SENATE Sure; a lot of fyaclescratching, A lot of pushing ap.4 pulling. A lot of coordinating. But, to dote, not one single major procure rnent reform has come out, of the proce;:s. Sound and fury.... Right now GSA and-the other procurement agencies are involved ih a process of devil- oping positions on all- of procurcntgnt c:ommissic. it recomm?ndations, By Executive Order 1-1717 cued Mar 9, l973 , the raside>r trai sferred-to GSA cer- tain management policy- functions from OMB. Ili &s1 ?sequentstatcment..oxn. lad 22,_ 1973, the -Resident called on GSA to lake the lead tin the development of Government wide malingement policy In `four hi{ably sensitive areas including procurement '.a is in a partnership with OMB. In response to the President's ordW:r, we have estabi lsfbed an office of Federal man?age- rnent policy at GSA. The Office has a broad charter to formulate, prescribe e.nrl assure- compliance with Gov- ernment-aide policies' relative to the ft:.nc- tions of picocnrement, financial maragemert, property wanagement and automated data processing. The most important procurcn.e it mission presently is the coordination of executive branch effort relative to the pro- curement eornmlssion report. - GSA is leading the efforts of: 14 load ageit- cies chairing, 74 task groups involt.ng, more than 300 people all working to develop an executive branch position and, where appr,:) priate, implementation for every one of the recommendations. And a panel of recognized government pro- curement experts has been formed to assist in planning this effort. 'Based on present schedules, we wilt have task group proposals for executive bren';h positions cr position implgmentattons on nearly 100 percent of the reconunendations by the end of fiscal 1974. And a special unit has been formed irf GAO to review and report to Congress on executive branch efforts regarding. the ie- ports. So, while GSA is watching the task groups, the GAO is watching GSA, This process of discussion and coordination can be useful. Some commission recommendations xteM close study before developing a position and a strategy to implement them. aecooaniettcla- tions, for example, concerning the selection of architects and engineers, Government profit polie,es and independent research and development, We have the mechanism SOW for disoussdag these and other d}fiicult issu!rs. There ar,e other recomm ndatious whl.h require legislation and so require a careful and complete approach. In that way, ahem legislation is Introduced, it will be fully sup- ported and -speedily enacted, For example, we will be supporting, in the near futute, legislation for a common Gov- ernment-wide procurement statute, propos- ing bills to increase the small purchase negotiation authority from $2,500 to $10,030 and toextend the truth in negotiations act to all fedets,l;agencies. Our, coordinating procedure can be useful also in implementing those commission rec- ommendatL)ns that do not require legislation. That do not require deep debate. Many recommendations are subject to managerial action without legislation and without th>.t much discussion. Recommendations such as: A reasonably uniform approach to debriefing -unsuccessful offerors, the placement of procurement in agencies, tharole and authority of contract ing officers, re-evaluation of ADPE egzip- ment acquisition procedures In-light of total economic cost, are but a few of perhaps30 or 40 recommendations which are amenable to administrative action.. The interagency coordination going on new promotes einslsteney in decisionn:aking on these recommendations. can tt C1L r kknowNto ments ask una gram be p Finn';'-y, a thorough and complete debate Chiles' bill in the Senate on Friday there of issues is an educational process. The Corn- may be a lot of lobbying in the' House mission report expcsed some elements of the against an Office of Federal Procurement Federal-,` procurement community to brand Policy. new issues. Titus the task groups-and-their A,third _prcblem. Ithink we've lo;atmo- positloli. development support the goal of mentum. `c'hat's the most dangerous prj:`?- building; a e- phisticated and professional Ism of all. procurement avorkiorce. let's look at: what's at -;take, We have in But for all its value, this interagency co- our hands a tremendously powerful tool. The ordination wi:l no> result in the dramatic procurement ommission report. Months and change necessary----not one single major pro- months of research went Into it and vol- euremert reform vrit}ueut the establish- runes of testimony . It props:-es improvements meat-4I -ass -)ifice of Federal Procurement that are realistic. Changes that can be made. Policy. ] It's the most comprohensive study of Fed- I've done a tot n' talking about the OFPP eral procurement ever done. If we let it fade issue and Ira gong to continue-it', so out, or get filed away, it's unlikely that the vitallytmportaurt. climate of change and the cooperation it Estes fishing an OFPP is the single most has fostered can be reproduced for years. import nt procurement commission recoin- If we don't act on the commission recorn- mendaion. Arid its the philosophical bo ris mendatlons now, we'll be postponing procure- for molt of the others, went reform for five years at least. . Let'siface. It, we're running in. sixty bil- There's never been a true constituency to lion dollar purchaa ng program like a garage push for pro urement reform--its a: tech- sale! NKr one at ti.e front of the store. NO rascal and complex subject. one in c?harge. If Proctor and Gamble or Gen- We can't look to government contractors, eral Mdcore or IBM ran their purchasing like to business in general or to the public to that 11 would certainly put their stock- push for charge. It's up to us in the execu- holders; out of sorts--If It didn't put them tive branch---:rom contracting officers to top out of lusineec altogether. managers. An i it's rp to Contress. Passage We might agree on the need for an OFI P, of S. 2510 is a strong step towards reform. but ho*' to structure }t? 150w would it work? We must give up our parochial views, ad- First` I beliove, i; has to have a statutory just our special needs to a larger system, base. That's tie only way it will have per- and see Federal procurement--for the first manente enough to grapple with an evolving time-as the single, major Federal function Federal procurement sys- em. it truly is. - Senator Chiteas' till to establish an OFPP We should devote all our .attention: to the has nors passel tie Senate and Representa- establishment of central procurement au- tive Hoiffield has introduced one. In sub- thority to diroct the policies of that system. stance, -I support loth. 1: do disagree, how- Then we should work on the system to mod- ever, with the provision in the Senate bill ernize it and make it easier to deal +ivith. which, in effect, gives the Congress 90 days The recommendations of the Commission in which to veto Major policy changes pro- on Government Procurement hold the prom- posed by the Administrator of the OFPP. To ise of millions of dollars of savings and my mind, this provision is too rigid a means improved quality of service to the people, of coca ination between the executive branch And beyond the savings, beyond the, qua.1- and the Congress. And It would impair the ity of service, procurement reform offers us ability of the : OFPP to make the major all who are involved in it the confirmation But, tuhatever the detaLs, the Office of Fed- eral P}iocurentient Policy must be estab- lished by taw to mike It last. A second chsraot,ristic of an OFPP. It has to have; clout. our office of Federal Management Policy Is directing inteiagen y work on the Procure- ment Ckrmmission; report. It is working and it Is the only garie sin town. But, it works en consensus and turns to OMB as the tie- breakerF It will never have the clout of an OFPP as the Commissioners saw it. And it shouldn't have the title. The Office cf Federal Procurement Policy has to ire set up In the Executive Office of the President. To give it true directive ar_u- thority in the executive branch. To give it the strength to withstand the tremendous pressures that will surround it. Finally, the Off ce of Federal Procure- ment Policy his to be an expert group-but a sma one 'to avoid duplication. And to avoid ere tenelency to get involved in pro- cureme t operations. That'is the OFPP the commissioners pro- posed-'small, strong and set up in law. All the interagency cooperation and co- ordinagon is fine. And we are pushing to keep the process moving ahead more quickly, But noj major issues can be settled and no major reforms made until some overall pro- curemetrt authority Is established. Of course, that's just the problem. Nearly everyone is "for" an OFPP. They're foritt as long as they can structure it and as long as it leaves them alone. The F'PP is a "motherhood" issue. But even therhood can be a bad thing under some a rcumstancer. Coml}oundir.g that problem? there are op- ponent4 to central procurement policy au- thority In spite o:' the success of Senator GENO;;IDE CONVENTION. -Mr. HUGH SCOTT. Mr. President, the matter of ? anocide continues to be a matter. of concern to many of my con- There, bel't? no objection, the telegram was ordered be printed in the RECORD, as follows : Senator Hums Sco U.S. Senate, Washington, L .C...* March 27, 1974 WASHINGTON, D.C. We support the re t of the Senate For- eign Relation's Commi ee dated March 6, 1973 concerning the gee de convention and urge that the Senate ad a and consent to William P. Gossett. O on S. Marden, Robert W. Meserve, rl F. Morris, Bernard G. Segal, and hitney. North NUCLEAR INIDUSTRY STILL' UNRE- SPONSIVE TO SAFETY EXIIRTA- entitled "AEC Warns of Shortcomi;ngsIn the Nuclear Industry" by Lee Dye, the Los Angeles Times of December 26, 1973, reported as follows: Approved For Release 2000/08/2: CIA-RDP75B0038OR000600130014-1 4`ebruary ;o 7 o t--tz. cioul S 2471 J1> Number mobilized ............. 136,000 ____ 297,754 ----------- 241,500_-__...__ 136,500 ---------- 68,883 (30,056 in 44,371-------- __ 7933r (includes 12,234. s). units), fillers). Percent of TOE strength at ------------------ 41-56 d---------- Most-individuals. 3455 d _-_____ 67____ __________ 62-69 d---------- 82--------------- 89. induction. Percent MOS qualified at indoc na___------------ na--------------- Most-experi- 27-46d------- _- 67--------------- 67--------------- 85------- -_------ 85. tion_ enced veterans. Un'ttrainingcompleted atinduc_ ------------------ None ------------ None ------------ None ------------ None ------------ None -------- ___ None ------------ None. tion Facilities Tn dequate Inadequate Inadequate Adequate ______ Adequate--.------ Adequate--------- Adequate. itially. initially. initially. Materiel___________________ __-._____ _____..-_ Totallyinadequate- limited ________ 35 percent ofTOE_ Major shortages ___ 50pOercentof REDCONC-4----- REDCON C-4. T d Postmobiilization situation 1: - Personnel Fill requirement_______________________________ 197,533 (for divs)------------------- 96,100 (for divs).__ 15,234 (for units)-- 9830(furdivs)____ 698 (for units) 1512. Time tofill ............ ------- 7mosd--------- ------------------ 2mosd---------- 2mos__ _ ------- 3mosd.......... Up to5mos------ Up to5mos. Trequouem emen, weeks wee eks --------:-- R -_- 44 (later 32)_ ____-_ __ 28___________ __ Varied A_ _ -___ 27 compressed to 7-8a -_ __-__--_- 15 s. Requirement, weeks --------- .------------------ Average 120 ------------------------ 32-35_ __________ Required full unit 13 d - ________ 7-15 a___________ 15-17 s. ATP. Materiel ----------------------------------------- Adequate by 1942-------------------- Improvement Continued short- 60 percent REDCON C-1 REDCON C-I during unit ages. within 3 mos.d within 60 days. within 60 days. training. Units include 13 training divisions to 1061 and 1968, and 3 separate inf fides in 1968. Units include I8 separate inf bdes. Paid drills 2 hr weekly; after Vietnam buildup increased to 4 hr and MUTAs. Mr. HASKELL. Mr.' President, a re- nt Senate A riculture Committee re- port indicated that about `30 percent of the total production of food and fiber in this country is a direct product of the application of fertilizer, and U.S. grain stocks are currently at. near-record lows. These two facts underlie an approaching supply-and-demand imbalance wh has potentially enormous consequ ces for U.S. consumers and Citizens i oun- tries overseas that depend on r food exports. Over the past few years t e amount of acreage kept idle or ,set as a has been drastically reduced, and in ' 974 agricul- tural production goals Calif or maximum production. Approximat 1y 20 million more acres of land will , e in production this year than last.. The American farm" is ready to meet supplies, particularly nitrogen and phA- phate fertilizer, at riies he can afford. figures, retail pries of fertilizers have inereased over Q tuber 1973 prices from a range of 26 per ent more for potassium chloride to 71 ercent more for anhy- States has. xpressed _its willingness to meet these hallenges, but for a variety of reasons, The mates Iiitroge !including past price control dequate fuel supplies, trans- roblems, and a virtual halt ant construction, it appears it , ortfalls of 1 million tons of and about 700,000 tons of phos- zaterial. The Fertilizer Institute that while they expect to sunnly about i to 8 percent more total fertilizer tonne a during the current year than last y ar the industry will still fall short ofd and, by 3 million tons of nitrogen mat rlal and, 1,5 inili#on torts of. phos- pl a e material. X have talked with knowledgeable spokesmen in southeastern Colorado. who . are very concerned about this situation 21/z-year study; back through the Com- the proposed office. A showdown could come and who ar(gi\&W1= YFlF@1@ b- 21900 0V27o. 0PAGR9i5a003 oRo.ooeoo13o0t $gor by the end of February. Rele CUNGRE~S$ fJNRL Af3J160O-3WRg00130014-1 A Applied to divisions but is representative of all other units. Not available. r Period from arrival at mobilization station to completion of training cycle. e Army Reserve nondivisional units and/or National Guard inf tides. the highest possible priority to fertilizer in the allocation programs. I would urge these agencies to act promptly on the Senate's request. I agree with my col- leagues who have already spoken out on this issue that if there is indeed a se- rious fertilizer shortage in the United States there will be a food shortage not only in this country but elsewhere in the world such as we have not seen before. I think we must take every precaution to insure against the possibility of hunger SSUES.IN PROCUREMENT REFORM LEGISLATION . Mr. CHILES. Mr. President, there now seems to be little doubt that legislation to create an Office of Federal Procure- ment Policy (S. 2510) may generate con- troversy when it is considered by the Senate. But before the debate begins, I would like to share with my colleagues a very perceptive and objective evaluation of the situation done by Mr. James Phil- lips of the National Journal, and particu- larly the announced opposition of the Defense Department. I have to say that I wholeheartedly agree with the Administrator of the Gen- eral Services Administration, Art Samp- son, who served along with me on the Procurement Commission when he says: Defense thinks someone wants to interfere with their specialized procurements like fighter airplanes. Nobody wants to do that. So the Pentagon is afraid of a bogeyman that doesn't exist. It's the old thing about change. The Pentagon's position-that the status quo is good enough-is just hogwash, pure hogwash. We need an awful lot of re- form in procurement policy. I think we need to look back over the long and thorough legislative history of S. 210-~ack.to init}al hearings.in 1966; back to the creation of the Procurement ate a central procurement office; back through the 5 days of hearings held by my Procurement Subcommittee, and the unanimous support of all but some execu- tive agencies. This is not exactly a shaky record to stand on. The facts remain that procurement re- form is sorely needed; the problems are there wasting money every day and they are not just Defense Department problems, they are Government-wide problems that Defense could not solve if they wanted to. A central procurement authority, with statutory backing is what is needed, and nothing less will do more than massage the status quo. As I said when we opened our hearings: The vagaries of time and the variability of executive orders are too great to trust so im- portant a function as the expenditure of a quarter of the Federal budget to the good in- tentions of bureaucrats. To update the National Journal article, I should note that S. 2510 passed the full committee on February 6 by a unanimous vote and that 12 Senators have joined me in cosponsoring the bill. Mr. President, I believe that procure- ment reform is of vital importance to Congress, small and large businesses and to the taxpayers of this country. Legisla- tive action is of the utmost importance if procurement reform is to be of a lasting nature. I ask unanimous consent that there be printed in the RECORD a copy of the article by Mr. Phillips. There being no objection, the article was ordered to be printed in the RECORD, as follows: OVER PROCUREMENT OFFICE (By James G. Phillips) Battle lines are taking shape in the Sen- ate over legislation to create a centralized office to oversee federal purchases of goods and services worth almost $60 billion a year. The Defense Department and its support- ers in Congress are dead set against the new procurement ffrce, which they view as a threat to the Pentagon's own extensive pro- curement bureaucracy. Defense purchases account for more than two-thirds of all fed- eral procurement. But the General Services Administration (GSA), which does much of the buying for other federal agencies, and the Small Busi- ness Administration (SBA) are supporting S 247Vproved For Release 2 CONGR27'SS1O1NA.L R CORDORO 11 Q014-1 February 28, 1971 , Senate Government Operations Committee, sitioa that the status quo is good enough quo is good enough- which which has been studying procurement re- is jus$. hogwash, )ure hogwash. We need an form proposals since October. On Dec. 4, a Senate Government Cpera- tions Subcommittee on Federal Procurement, chaired by Sen. Lawton Chiles, D-Fla., ap- proved a bill (S 2510) to establish the pro- curement office in the White Rouse-ether in the Office of Management and Budget (OMB) or as a separate agency. "I don't ex- pect any problems In getting this bill past the full cDmmittee," Chiles said in an inter- view. But a senior Pentagon official, who asked not to be identified, said the Defense Depart- ment Is confident that Pentagon supporters will stop the bill from passing if it reaches the Senate floor. '"The Defense Department's opposition. to this legislation extends to Congress," the of- ficial said.. "I don't think there is any as- surance that this bill will pass." S 2510, co-sponsored by Chiles and S en. William '%'. Roth Jr., R-Del., the ranking mi- nority member of the procurement snboom- mittee, would implement the major recommendation of the Commission on Cov- ernment Procurment, which early last year produced 149 suggestions for changing the way the government buys products and sorv- ices. (For reports on the commision'. rec- ommen(tattons, see Vol. 5, No. 21, p_ 74f, and No. 25, p. 897.) The diferences between the Pentagon and the GSA on the issue of a procurement office flared into the open during November hoar- tngs of the Chiles subcommittee on 8 2510. Arthur L Mendolis, asistantDefense s;erre- tary for installations and logistics, told the subcommittee that the proposed office merely would create unnecessary red tape for, the Pentagon. Mendolla said that Defense contractors view the Pentagon's procurement regulations as "fairly unchanging (rules )they can un- derstand."' Mendolia endorsed an OMB proposal to defer legislation pending a tryout period for an OMB procurement coordination off c++ to be established by executive action. Tire co- ordinator had not been appointed as of late January. (For badkground on`the OME pro- posal. see Vol. 5. No. 30, p. 1110, and ifo. 42, p. 1572.) Said Mendolia: "I think we should apply the 'fly-before-buy' philosophy here to the evolution of improvements in procure'rlient in much the same way that we in DOD apply it toweaFons system acquisition. But in GSA's view, a procurement policy office would be Ineffectual without a statu- tory base to give it prestige and permanence. "I am convinced now," testified GSA Admin- istrator Arthur P. Sampson, "that 'at some point we are going to have to have legisla- tion to support an Office of Federal Procure- ment Policy." Similar testimony was pre- sented by the Small Business Administra- tion. `T do not think we are going to get the major rei'orms that are required by iri;ain- taining the status quo, no matter how you change it," Sampson said. Agencies had "great fears" about the pro- curement office, some of which were founded," Sampson said. Expounding on this topic in a subsequent interview, the GSA chief said. "Membership of the Office has got to be constituted so that Defense, for instance, feels 'they're repre- sented. They've got to feel that they're not just having policy Instituted by people who don't understand their business. "Defense thinks someone wants to Inter- fere with their specialized procurements like fighter Airplanes. Nobody wants to do that. So the Pentagon is afraid of a bogeyman that doesn't exist. It's the old thing about awful, lot of reform in procurement policy." Cor gr'essional sides said that before the Chile hearings, Sampson urged the Admin- istraton go into the hearings with its own bill to set up the procurement office-as a ploy to get a shar> of the credit for procure- ment'. reform, watch otherwise might go solely'to Congress. But Sampson', proposal was shot down by Dept4y Defense Secretary William P. Cle- ments Jr., who persuaded OMB Director Roy L. Ash to stick with the proposal for a pro- curement ccordir.ator set up by executive action. "I see no useful purpose this legislation could serve as far as DOD is concerned," Cle- ment4 said in an interview. INOIXSTRY STANCE Industry and professional associations test- ifying before the Chiles subcommittee unan- imously favored the immediate passage of legislation to ee.tablisir the procurement office. Leading groups favoring the legislation in- cluded the Aerospace Industries Association of Anjerica, the National Security Industrial Association and the Electronic Industries As- sociation. SURCX)PSMITT]:E ACTION "The commission report is getting older every; day," Chiles said in concluding the hearings. "'Fly-before-buy' has already taken place as far as DoD's experience." The subcommittee rejected OMB's proposal to deter action and unanimously approved S, 2810. (Members of the subcommittee, other, than Chitee and Both, are Democrats Walter Huddlesl.c?n of Kentucky and Sam Nunn of Georgia, and Republican Bill Brock of Tennessee.) To lassuago Pertagon fears that the pro- curenpent of ee would mushroom into a giant bureaucracy, the subcommittee amended the bill q) limit the office's size and duration. The gifice would :.lave a five-year authoriza- tion, after wbica Congress would decide whether to continue it. Its first-year budget would be limited to $4 million. The office would be prohibited from doing any actual procurement. Its , purpose, tt a bill says, would be "to provide over-ail leadership and direction, through a 'small but highly qualified and competent staff, for the development of pro- curenlent policies and regulations for execu- tive hgenciec in accordance with aplicable laws.'i1, EXECUTIVE ACTIONS The executive branch Is moving to Imple- mentmany of the procurement commission reforms that do not require legislation. Systems purchases An, interagenc3 task force recently en- the basic concept of the commis- proposals for changes in the pur- chasing process for major weapons and civil- ian systems (suci. as mass transit and ocean navightion systeina). The interegenc:, task force on system ac- quisition, in a Dec. 31 report to OMB, en- dorsed most of tine commission's suggestions in thist area, e lea though it said there are "valid difference;' in systems purchasing policies of different agencies. The task force's only serious reservation concerned the extent of implementation of a commission recommendation for alternative systerhrs concepts, which the task force said could, produde "a potpourri of systems ... which would present more options than might economically be pursued." Th commission recommended strengthen- ing tie acquisitic n process for weapons and other, major systems by emphasizing compe- tition for allernaldve approaches at the out- set of, the developmental process to minimize occurrence of cost and performance prob- lems downstream. (Under today's process in the Pentagon, for instance, service systems commands ;developmental Offices) develop a weapons concept, such as 'a plane of given speed or range capability, and then open the program for competition. Under the commis- sion's proposal, companies would be asked to design their own concepts of what type of weapon-a plane, helicopter or artillery piece-would be best for the job at hand.) The task force said that to avoid excessive expense under this approach, the competi- tions should be held only when Clearly feasible. Among ot:ber major recommendations in this area, the Commission called on. agency heads to frame "mission needs," such as close air support, prior to & ,decision on what type of weapon to seek and to bring Congress into the picture at this point-much earlier than is now the case- to review the mission statement in terms or the nation's needs, goals and available resources. And It called for heightening competition for major sys- tems awards by encouraging small firms to propose alternative systems concepts. The task force report, which Faust be reviewed by Individual agency heads, includ- ing the Defense Department, Atomic Energy Commission, Transportation Department and National Science Foundation before final approval, fu:.ly endorsed the earlierinvolve- rnent by Congress in the acquisition process. It adopted the recommendation on. mission statements, ;subject to the "recognition that there are limitations to making long-range projections of mission capabilities, deficien- cies, total mission costs, etc.," and the rec- ommendatioa on soliciting increased com- petition on the part of smaller firms, provided the solicitations were lirlaited to "qualified" companies. GSA move The GSA has adopted-subject to, ongres- sional approval-a commission recommenda- tion that it charge its governmental custom- ers the full costs of items they buy from GSA. The aim is to force agencies to shop around to determine it they can buy items cheaper on the private economy than they can from (38 A. Under existing procedures, GSA does not pass on its own overhead costs, such es ware- housing, but bills agencies only for the cost of the merchandise and its transportation expense. The new system, which has a target date of July 1, 1975, is known as "total economic cost" or "industrial funding." Under it, GSA's Federal Supply Service (FSS); instead of getting annual appropriations from Con- gress, would be financed out of the proceeds of goods and services it sells to agencies. These range from pencils and light bulbs to highly sophisticated civilian aircraft. "Industrial funding would make the Fed- eral Supply Service work a het of a lot hard- er to keep costs down," FSS Commissioner Michael J. Timbers said in an interview. "We'll be charging the ful costs to the agencies and they'll turn to the private mar- ket if our costs get out of hand. Secondly. Congress will get a better picture of other agencies' budgets since GSA appropriations will no longer cover FSS overhead !posts." Timbers said the change also will force FSS to look hard at its central warehouse system to determine if it is more economical to procure items for agencies locally-at the aoint of use-than to stock them in: regional warehouses. "The trend wit be to less ware- housing," Timbers said. Implementation of the proposal will re- quire amendment of the Federal Property and Administrative Services Act of 1949 (63 Stat. 377), which governs GSA procurement. Tim- bers said he expects the Administration to submit the bill by spring and that he does Approved For Release 2000/08/27 : CIA-RDP75B0038OR000600130014-1 ,Februa4ovfor Relea9a~1-~~038~0~0ff not contemplate any problems for it on Cap- Nonetheless, the indomitable spirit Itol H111. GAO report The General Accounting Office (GAO) on Jan. 31 told the House Government .Op- erations Committee that executive branch task forces made "considerable progress in recent months" in proposing policy positions on procurement commission recommenda- tions. By the end of 1973, the GAO found, executive task forces had presented position papers for agency review on 79 of the 149 commission proposals, as opposed to three as of mid-August 1973. To speed congressional action, the GAO recommended that the House Government Operations Committee consider establish- ment of a separate subcommittee-such as the Chiles subcommittee in the Senate-to ,handle procurement matters. After holding extensive hearings on pro- curement reform last summer, the House Government Operations panel deferred fur- ther action because of the press of other bus- iness such as government reorganization plans. According to committee aides, the panel will again take up procurement re- form as soon as the Senate acts on it. The committee chairman, Rep. Chet Holifleld, D- Calif., who served as vice chairman of the procurement commission, pledged last sum- mer that "I will do everything in my power to see that the public gets a'dividend on the commission report." LITI3tYANIA Mr. DOMINICK. Mr. President, Febru- ary 16 marked the 723d anniversary of the founding of the Lithuanian State and the 56th anniversary of the establish- ment of epublic of Lithuania. Amer- At this time when a word "detente" appears so often and th _ eality so rarely, vexed Lithuania and started mass depor- tations to Siberian slave and labor camps. During June 1941, the Lithuanian people succeeded in getting rid of the Commu- nist regime in the country; freedom and independence were restored and a free government reestablished. This free gov- ernment remained in existence for more than 6 weeks, until Lithuania was over- pealed the Germans and, reimposecytheir Lithuanians have never since Peen free or-independent. Through direct control of oreign af- fairs, economic Planning, efense, cur- rency, and foreign tra , the Soviet Union has endeavored wipe out not only Lithuanian indepe dente and free- dom, but also their v heritage. More thah one-fourth of thuania's popula- tion has been exter inated or relocated -ar d its culture con nues to be stifled by the imposition o ussian customs and dictates. Solzhenitsyn's "The Gulag Archipelago" is telling testimony to life under the Soviet system, and the spiritual and ethnic strength of the Lithuanian people stands today as an example to all people who are striving for self-determination and their national heritage. The Lithuanian. World Con- gress, meeting in August 1958, declared unanimously that "Lithuanians continue fiercely resisting the alien rule" of the Soviet Union, and that Lithuanians "have not and never will accept Soviet slavery." The United States has never recognized the forcible annexation of Lithuania by the Soviet Union and continues to ac- credit diplomatic representatives of the free government of Lithuania. Since June of 1940, when the Soviet Union first took over Lithuania, all the Presidents of the United States have stated, restated, and confirmed this nonrecognition policy. Unfortunately, Mr. President, no ac- tions have followed our fine words. In our attempts to give some meaning to "detente," we should negotiate to ob- tain for the people of Lithuania-and for the people of all captive nations-the basic freedoms we enjoy. An eduring the captive nations are free to deter ,one their own destinies to accord wi the United Nations Declaration of uman month the Comptrolle General issues many reports and de sions concerning the operation of the/Government, legis- lative recommendations, and election law pared at the req t of Members of Con- gress. Fortuna y, the General Account- ing Office su marizes the reports and decisions is ed during the preceeding month. T monthly list is very useful, particula y as a reference to current GAO a vity. Therefore, as I have done i the Pas t. I again ask unanimous con- sen at the last three "Monthly Lists of GA9 rts" be printed in the RECORD. ONTHLY LIST OF GAO REPORTS: COMP- TROLLER GENERAL O IF' HE UNrrED STATES-- VOL. 7, No. 11, DECEMB 973 COMMERCE AND TRANS TATION Limited Success of Federal Financed Minority Businesses in Three Cit . Small Business Administration, Office of ority Business Enterprise, Department of fined the factors contributing to success or failure of minority businesses assisted by SBA loan programs. Minorities make up about 17 percent of the Nation's population and about 4 percent of the Nation's busi- nesses. Of 845 minority-owned businesses receiv- ing SBA loans from its Chicago, Los Angeles, and Washington district offices during FY 1969 and 1970, GAO classified 27 percent as failures, 25 percent as probable successes, and 17 percent as undeterminable. Lack of managerial capability of the owner was the sole reason for failure of about 30 percent of businesses classified as failures or probable failures and a contributing reason S 2473 for failure or probable failure of an addi- tional 39 percent. t Foreign Visitor Travel to the United Sates Can Be Increased. United States Trave Serv- ice, Department of Commerce. B-15 399 of In 1972 travel receipts from forelj(h visitors to the United States reached .2 billion, while travel expenditures by Americans Although the U.S. travel receipts have in- creased steadily, since 1969 a U.S. share of international travel has de riorated gradu- ally in both number of Visitors and travel GAO suggested USTS'consider developing and promoting comp itive package tours and other travel p ams In the U.S. COMMUNITY DEVE PMENT AND HOUSING Administrative roblems Experienced in Providing Fede 1 Disaster Assistance to Disaster Vict . Department of Housing Urban Devel went, Department of Trans- portation 67790 of November 5, released November by the Chairman, S1.ibcommittee on Inv fgations and Review, House Com- mittee n Public Works. Th% report indicates that Federal disaster ass tance has helped disaster-ravaged com- disasters. While this assistance generally has been timely, the manner in which it is provided by the Federal Disaster Assistance Adminis- tration can be improved through- Providing definitive and timely guidance on the eligibility of cost; and Reducing the detail and documentation required to support e, community's applica- tion for assistance and its subsequent claim for reimbursement. Information of Federal Disaster Relief Programs. Multiagency. B-+178415 of Novem- ber 5. Greater uniformity is needed in Federal disaster assistance programs. Because of dif- ferences between SBA and ERA disaster loan programs, victims sustaining similar dam- ages from the same disaster received differ- ent amounts of assistance depending on whether they applied to SBA or FHA. Although the Office of Emergency Pre- paredness was responsible for coordinating overall Federal disaster relief, there was little coordination of programs involving large Federal expenditures. This precluded any assurance that applicants were not receiving financial assistance from each program for the same losses. Examination of Financial Statements of the Federal Home Loan Mortgage Corpora- tion for the Years Ended December 31, 1971 and 1972. B-179312 of November 13. In GAO's opinion, the Corporation's fi- nancial statements present fairly its finan- cial position at December 31, 1971 and 1972, and the results of its operations and the changes in its financial position for the years then ended. This is GAO's first examination of the financial statements of the Corporation, a private corporation created in 1970, to A ecember 31, 1972, the Corporation had invest in $1.7 billion worth of mortgage loans, a increase of $0.8 billion over the December 34 1971, balance. EDIIC ION AND MANPOWER Educational L- oratory and Research and Development Cent Programs Need to be Strengthened. Natio Institute of Educa- tion. Department of H lth, Education, and Welfare. B-164031(l) of vember 16. Since 1963, Federal appro cations for the educational laboratory and ter research programs totaled about $211 Ilion. As of December 1972, 11 laboratories an 9 centers Approved For Release 2000/08/27 : CIA-RDP75B00380R000600130014-1 Approved For Release 2000/08/27 : CIA-RDP75B0038OR000600130014-1 S 2474 CONGRTSSICNAL RECORD -SENATE February 28,1974,,l, (called contractors) were engaged In a hea- T'he' Civil Servco Act requires appoint- objectives and the activities needed to attain tional research and development. mentri to competitive civil service positions them. There was little evidence that products in the Federal service in the District of C$- Result: foreign markets are not finer zed created by these contractors---such as 'nooks lamb t to be apportioned on the basis of systematically to identify areas of yYd com- and audit-visual materials-have had it popul tion among the States, territories, and inercial importance. Nor are expo ;rategies nificant impact in classrooms. the District. adapted to the peculiarities an special op- tractor products Independently and ebjec- tion nt has been minimal. Only 15 percent NATIONAL Dr liars Federal employees in the Wash- tively have criticized the products gensrrlly of ct v Financial Status of Selected Major Weapon as not ha'ring been proved effective, ingto area In Ma;' 1973 were counted against Systems. B 163068 of November 13. OE tb:nded that contractors' protttcts the require ment. This Is G..A8's second miannuat report on be draw lnated to the educational corniuu- The Civil ilerrice Commission, saying this the financial status of rslected ma]arweapon nity by c mmercial publishers, Et (]lot not report provides support to the conclusion require its ntractors to assess market needs that apporti3nrnent has "outlived its use- systems being acquiret3y DOD. Datm was or to ?cen'tcc [1bllsAelR before product' de- f line a," ' shares GAO's recommendation that extracted from the syelected acquisition re- velopnient to termine a product's market- the t >ngress. act favorably upon proposed ports (SAR) released'by DOD 2 Thislreport details the cost increases of ability. legislation to repeal the apportionment i'e- .A. bili t.li .ten po major ~ $ r on re weep 45 had generated little ublisher interest. Co umer Protection Would be Increased lone 30, 19f Review of Sal led Subcontracts Awarded cENe E ct MENT by I proving the Administration of Intra- by Ingalls hi wilding Division o7' Litton Improving the Ef[ectiv gas of tige C~ovErn- state eat Plant Inspection Programs. Ani- Industries, Tnc Departnar zt of the Navy. B- ment Employees' Incentiv wards Program. mad nd Plant ifealth Inspection Service, 177748 of Oc r 23, released November 14. U.S. Civil Service Conimiss n. B-18380.. of Department of Agriculture, B-163460 of No- At the request of-the Chairman Subcom- , November 1. vember 2. mittee on Priorities and I.concmy in Govern- During PY 1972, Governor t agencies Aftsr reviewing intrastate meat inspection ment, Joint` Economic Cemenittee, j Inspectors. Of the 269 plants, 202 01 procurement practices were not followed in in granting cash performance awards, ere mated acceptable and 67 as unacceptable four instanois as specified in its report. In FY 1972, special achievement awards by b use of sanitation deficiencies, pest can- ~ Opportunities for Increased Interservice all Federal agencies ranged from 1. to 146 for tro , ~ontrol over inedible and condemned/.? Use of Training Programs and Resources, De- each 1,000 employees and quality lncl'el:~ses prod -ts and other reasons. ranged. from 2 to 85 for each 1,000 employees. pertment of Defense. (To the Secretary of The ante were selected at random fr Defense). B-475773 of November 21. Inconsistent use of cash performance 2.143 dl is in California, Iowa, Maryland, With DOD spending more than $6 billion awards Is attributable in part to the var3ing Mnssoiari, entucky, Minnesota, and Ne- annually to train personnel in a variety of b k d s attitu es of management toward the awards rea. for Ir occupational specalitfes, GAO focused on and In part to the subjective nature of Nee ~Idrotement in certain capital economies - and efficiencies obtainable most performance awards. Labor tort' Se~iyy1oa Activities. Vete ns Ad- ,th i h li ti Df)1) t ra n- roug conso da ng common Rehabilitating Inmates of Federal Prisons: ministration. (' the Administ tor, VA) tag requirements. B-d33 }44 of Pleven r 13 S i l P g a t pec ro r a ms help, Bu Not Enougb.:13u- . Although there were some intiu^aervice reau of Prisons, Department of Justice. B- In most cases. laborato es provided training arrangements, of November 6, ear Ctf~ve serV ces fns port o calth care to the t1 le repre- sented only about bout 6 percent t of of the total Progress has been made in developing edu- veterafis; users genera , w e satisfied with training in DOD. Before GAOs review, DOD cational and vocational programs for re- test results. In some are: , owever, program had not aggressively promoted it. habilitating inmates of Federal prisms. In planning ant manageme needed improve- Interservics training has not been exten- relation to the total problem, however, "his meat.. sive up to now because each military service progress i?es been limited because In i1is report, GAness rem tided that VA has decided how its training requirements Many inmates needing rehabilitative serv- shouin increase ef laboratory could best be met within its resources. ices did not participate in available programs, activities to includ improving Outreach mad Effectiveness of lacking motivation; Cooidinatfug Wood bank acti ties with DOD Reviews of, Discharges Given. Service Prison industries have not been fully ef:"ec- the military tq/take advantage of vallable Members Because of Drug Involvement. tive in training inmates in marketable ek~llls; volunteer bl add when needed; S B-173688 of November 30, menting rormal on-the-job training in main- requi III Me, Oil one oasis or the proaram mscharges because of drug involvement are tenance and operation of institutions; and objectts for diagnostic and training ap i- experiencing problems in obtaining employ- Prisons did not have sufficient vocational catio t r; and ment and vocational training or education coursed: is general reference laboratories de- and in discontinuin their drug depe-ndence g . Studies have indicated that jobs off et in v op a method for informing hospitals; of This report contains suggestions for im- 8 i eat l b t h o lf t th A 7 s a , a :.oug u se e systems -resPect and financial support will deter p verve zrt o;' DOD's program for upgrading 41 many former inmates from returning T'ERNA rIQ rrAL AFFAIRS AND FINANCE criminal .activity Many inmates, neuter of r-than-honorable discharges for service are rel aict without Examination of Financial Statements of m ra who were involved with drugs. jobs unaware at the Egport-Import Bank of the United States In1 ation fin- this report should assist lace e _-._, -t_,_ t -Reis}. p m n ace is rap Need for a Faster Way to Pay Comp claims to 'Disabled Federal EmpI partment of Labor. B-1757693 of N e GAO looked into the causes r d a disabled employee's recelvin is fi pensation payme nt and how be reduced. GAO rho mar laded favorably consider er pen g n co would reduce the meats. The leirawslative proposal s proposal each agency to ay its e rather than t Office of F Compensatio Propasei I iminatioii of men RR iii tal Service In Depart i Colo Ia. U.S. Civil Servi B the Apportion- ation ees, Ae- mber 21. elayii in rst com- delays cold t the Cor.givas legislation that mpensation pay- would permit mployees' claims ederal Employee - C.Wauav v ,S .iW vU lSl4'23 U.i Except for omitted assets and liabilities Membe rs with their legislative resp>nsibilf- totalinig abort $148 million, the financial ties relating to DOD programs, parldcularly statements present fairly the financial post- as these app to S. 1716 acid H.R. 69'2;3, which tion of the E'ximbank at June 30, 1973, and were introdic_ in the let session, 93d the results of its operations and the changes Congress. in financial position for the year then ended, NATURAL in co>oformity wl':h generally accepted ar- pp:l on axis ___ - - sistent with that of the preceding year and the Protection of with sppllcat 1e Fe feral laws. 'Ways to Improve U.S. Foreign Trade Strat- egies. ioepartnent,,, of Slate, Commerce, and Agrieulure; Office of Management and Budg- et. B-172255 of :November 23. This} repor, forlses on agencies involved in planning and carrying out commercial activities abroad. Thee agencies have not developed clearly stated: objectives for foreign markets which roSectcoordiliated consideration of U.S. trade Atomic Energy Comirlisssion, B-164106 of No- vember 7. Potentially dangerousconsequenees could result from 3 single theft from, or loss by, authorized possessors of tl enable uranium or plutonium, GAO reporte in a study on AEC's program for the pro tion of this At two of three plants operated y licensee/ contractors, GAO found condit na which limited their capability "for preve ing, de- Approved For Release 2000/08/27 : CIA-RDP75B0038OR000600130014-1