DEPARTMENT OF DEFENSE APPROPRIATION BILL, 1976

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00933R000200030005-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 12, 2016
• Document Release Date: April 10, 2002
• Sequence Number: 5
• Publication Date: September 25, 1975
• Content Type: REPORT

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94Trr CowoRrss HOUSE OF REPRESENTATIVES I RrronT
1st N ssin i j No. >I-517
DEPARTMENT OF DEFENSE APPROPRIATION BILL, 1976
SEPTEMBER 25, 1975.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. MAHON, from the Committee on Appropriations.
submitted the following
REPORT
together with
SEPARATE VIEWS
[:To accompany H.R. 96611
The Committee on Appropriations submits the following report. in
explanation of the accompanying bill making appropriations for the
Department of Defense for the fiscal year ending June 30, 1976, and
the period ending September 30, 1.9716.
Appropriations for the military functions of the Department of
Defense. are provided for in the accompanying bill for the fiscal year
1976 and for the three month transition period ending September 30,
1976. This bill does not provide for military assistance, military con-
struction, military family housing. or civil defense, which requirements
are considered in connection with other appropriation bills.
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 Defense Ap-
directed that
fined through
,jw states that
1 per aircraft
he maximum
.its is 1.75 per
-al year 1978.
crease the ca-
dilable the 4.0
W F to .25 In
.r 1978 as the
orce after the
fiver material
to meet war-
that the 4.0
y a computer
rf Aerospace
(GAO) re-
ft operations
ce airlift had
!ns and by no
at the Israeli
rid to an all-
rial airlifted
ability.
- Force in not
efficient num-
e Committee
which would
er of unsub-
lieve the Air
;e crew ratio
nittee, there-
cal year 1976
000 for com-
ins. The pur-
dest.ined for
flights.
initiate this
r 1975. This
11cient cargo
own fleet of
and recom-
'76 be denied.
0,000.
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1613
ADVANCED LoararrC (ADP) SYSTEM
FUNDING REQUEST AND RECOMMENDATIONS r s'
Fore fiscal year 1976 the Air Force is requesting $5$,831,000 for
support
the trans Q
r period
Maintenance f fi l 191 $46,116 00
est or sea year 5 was ,
t 01
sv funds W(
it procurement..exl
estimate of Operation an
the Congress. The re 1
funds for 1975 is $59,666,
fiscal year 1976
obligate any procurement fundse
15,000 abo
maintenance request is an ixtcrease of
request for fiscal year 1975,
The Committee is rec~olnmending that the fiscal y
reduced by $33,831,q06 and the transition period by $
requested ($25
U anct there was
1976 request be
e recommendation that the balance oo'f`the funds
used to terminate the program. The procurement ads
appropriated for fiscal year 1975 should be used, as necessary,
contract settlement and the balance returned to the Treasury.
For fiscal year 1970 the Air Force requested and the Congress
approved the. first funding for ALS of $3,507,000. According to in-
formation provided at the time the system was estimated to cost
about $370 million and become operational during fiscal year 1972.
The Air Force began the design of ALS in 1967. It was to be a new
automatic data processing (ADP) system for the management. of the.
Air Force's total logistic operations. ALS was to be the most. advanced
ADP system ever designed and implemented for logistic operations
in the Department of Defense.
While approving the request for initial funding the Committee had
concerns regarding its adaptability to Air Force logistic problems then
being encountered and those to be faced in the future. The Commit-
tee was also concerned with the implementation of the system in regard
to the state-of-the-art of computer development. at. that time. There-
fore, the Committee, while recommending funding approval, directed
the General Accounting Office (GAO) to make a comprehensive
review of the need, requirements, and implementation features of the
system. (See! House Report 91-698, dated December 3, 1969.)
The GAO report was received by the Committee. on February 4.
1971. The report pointed out. many problems in system planning and
other areas which required close management attention. One par-
ticular area concerned the installation of equipment and adequacy
of testing before full implementation at the logistic support bases
programmed to use the system. The GAO pointed out that the Man
to acquire all the equipment at one time and to test it over a short
period of time was risky, and recommended against such a? procedure.
The GAO adopted its recommendation from a report of the Air Force
Scientific Advisory Board that, called for acquiring and installing the
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d .maintenance
Operation and
ve the original
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164
hardware and software at two locations; completing testing, checking
out and debugging under operational load at those locations; and
adjusting the software design and hardware configurations, as neces-
sary, before computers were acquired and installed at the remaining
sites.
The GAO further pointed out that the Air Force revised estiniate
of total cost to implement the system was $821.4 million. However,
the Air Force also estimated that after closing down other logistic
systems then on line and eliminating 3,007 personnel spaces the esti-
mated net savings would be $144.1 million between 1972 and 1979,
the phase out year of the system.
On April 6, 1971, the Air Force responded to the GAO report and
agreed to its findings, conclusions, and recommendations. The Air
Force further stated that it would "heed" the advice contained in the
report.
The Committee has continued to follow the implementation of the
system with concern. There have been numerous delays; such as, the
slippage in the award of the contract, software development problems
by both the Air Force and the contractor, and ,hardware problems in
handling the volume of required transactions. The Committee was
deeply concerned when it discovered that the equipment was installed
at all sites before the system was proven to be adaptable for operational
purposes. I lowever, the Committee was continually assured by the Air
Force that the development of the system was progressing satisfactor-
ily and no insurmountable problems were being incurred. During last
year's hearings the. same assurances were received on the implementa-
tion of the system.
On October 25, 1974, after the Congress had completed action on the
Air Force budget request for fiscal year 1975, the Committee was ad-
vised by the Air Force that ALS was encountering serious problems
and that it was conducting an in-depth study of the system to deter-
mine the necessary corrective actions required. Subsequently, the Com-
mittee was advise (l that the Air Force and the contractor had developed
and negotiated a et well" plan. The information provided by the Air
Force shows that the get well plan will accomplish very little that the
originally developed specifications required. Practically a whole new
system is planned. The original specifications required the system to
operate with a quick response ready access on-line capability about 80
percent of the time and provide batch processing about 20 percent
of the time. The system was designed so that logistic managers would
have ready access to all available data in time to influence "in process"
logistical transactions. The get.well plan calls for a complete reversal
of this requirement with an 80 percent batch processing operation and
only a 20 percent on-line capability. A considerable reconfiguration of
hardware is required and redevelopment of substantially all the
software is necessary.
As of June 30, 19175, the Air Force had invested $216.7 million in
development of the system. The. Committee has been advised that of
that amount $132.6 million is unrecoverable cost lost in system devel-
opment, mostly on the software to be used in the system. Only $84.1
million, is salvageable for the further development, of an adequate or
useful logistic system. The Committee questions the amount of useful-
ness that can be obtained from the $84.1 million.
The Air For(
tior-al $563 mill
invested amour
the same amour!
reported to the
in the $563 mill
future investiric
a whole. The C
should be disco
meats of the A
stalled. All sysi
being through t
ing contracts o
immediately. 'I
fullest extent.
questing any fi;
process should
properly deveb
meats of the A
At the Comrr
was establishe(
tion of this offs(
tiveness, and o
an(1 installed
of ALS the (?
system review,
being complel
forcing termii
appear that tl
was establishe
necessary corr
sibly in the fui
The Depart
t ions incurre,
Section 3732
000 was used
medical and
tiori charges
increased cot
The. Cornn
lieu thereof
Maintenance
these funds t
Appropriated,
t'3timate, 197E
Recommended
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 `ing testing, checking
those location:a; and
figurations, as neces-
iled at the remaining
"orce revised estimate
1:1 million. However,
6r down other logistic
,twee i 197 aide 1979,
[;i the GAO report and
niiendations? The Air
advice contained in the
implementation of the
sus delays; such as, the
development problems
[hardware problems in
s. The Committee was
?quipluent was installed
:laptable for opperate nal
,,ally assured by the Air
progressing satisfactor-
ig incurred. During last
ived on the iraplementa-
completed action on the
-, the Committee was ad-
iitering serious problems
stem to deter-
s
th
y
e
of
Subsequently, the Corn-
t. iitrpro provided by thepA r
~it?ion p little that the
,,push v ery
Practically a whole new
ns required the system to
on-line capabilit v about
rce8t0
,cessin;g about 20 pe -
1. logistic managers would
to to influences "in process
.ils for a complete reversal
, liroeessing operation n and
derable recon fir
of substantially all the
165
et well The Air Forie Air Force is of the opinion that ncludin addi
the -bo
invested $563 mill
amount thuors f ar the total installed system should cost, a ut
the sa d amount
nally provided to he GAO and subse li ently
co tained
mates n
the same
I;ecause. of the
itt
t
?
ee.
of the Ai Force
to the Comm
rel)orted to
tical
ske
in the $563 million the Committee is very p
and furthermore of tile value, Of the bbeli ves th t i plementtion of th esSystem
ftltureT] e Comni ttee
a Whole.
Should e Force and a be made before any newt ADP ysten his in-
stalle of the he Air reniain in
stalled. All systems as the t on exist at of thetnew pre~ delopa ent ~ cle. All exist-
being through the comp
ing contracts or anticipated contract endeavors 91101,11d be terminate shou
k its re ullTulle diexten . co i emr laF ting all foreseeable requirements befo e trehe-
iie
extent, l? p rethinking
clucsting any f i idfew years in order to fully comlprehend and
process shoal require a
properly develop a system which will meet the present logistic require
ments of the Air Force and those, of the future. The- lnc-
At the Committee's direction the "Directorate of Data Automation"
was established in the office, of the E ecretary of Defense.
effec-
tiveness, -systems being requested
ithan o operational capabilities of ADP p
~s In e instance
ai installed and
office, didtan effective
of ALS the Committee rdoes not bedefense l eve thise
review. For this office to allow ALS ,. to progress to the. state of kabl
corrective action or
system
without
hens bleVIt does not
om
r
i
nu
] t
p
.
t,cnng c
mp
un o
of
forcing team
reat on
appear that this office isrperTbe Se -t11 and responsibilifies
lae_t1W
divested $216.7 million in
-e. has been advised that. Of
J(, cost osystem Only $84.1
d in the s date or
,.lopinent of an adequate
4tions the amount of useful-
lion.
sibl yin the future.
T.r.-.TTTfAT1ON OF CONTRACT ALTTIIORI
ted $67,000,000 for t
incurred by the Air
li
ons
3732 of the Revise
i
S
on
ect
used by the Air Fo
lion cnarq't't~ l.,?
increased combat operations in tl
d
di
'T he Committee is recoinmen
/l~
.. a _ bt
ed from un1
ain
these funds to be made ava
nor year Operat.lon Ulm
ll
i
ng
ow
pry'. Language a
- _ _ .^ _ i..Cli
AT1I 1 6IICF STOCK FT
fj-
rjrtimate, ivw------- -- -
-------
in the b ------
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Statutes (4
`1 .rtiw~ _,. ? The $67,0001-
p1) ha e of fuel, clothing,
tilt',
South Vietnam during
t
o
goods
latter part of fiscal year 11)72.
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