DEPARTMENT OF DEFENSE APPROPRIATION BILL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00337R000500210020-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Document Release Date: September 19, 2005
• Sequence Number: 20
• Publication Date: June 29, 1965
• Content Type: MF

Approved For Release 2005/11/21 : CIA-RDP72-00337R000500210020-9
SECRET
29 JUN 9955
AHDIB[ PCI: Dxecutive Director-Comptroller
SUBJWT: Department of Defense Appropriation Bill
1. The following is for the information of the Executive Director,
MCI and DCI:
2. The House Committee report on the Department of Defense
Appropriation Bill for FY 1966 made a number of points which have
interest and implication for the Agency. They are as follows:
a. That the Appropriation Committee expects to get a large
supplemental appropriation request for Southeast Asia for YY 1966.
(This is of interest to CIA should the Agency also require additional
funds. DOB bas been asked to alert us on timing.)
b. Overall spending for Defense research and development,
test and evaluation has averaged during the past four years over
50 percent higher then the previous four years. The Committee
feels the level achieved in the past four years is adequate.
(For comparison the Agency's BAD groam in FY 1966 is more than
double what it was in FY 1962 --
c. A criticism of the rotational practice of the Defense De-
partment and its impact upon technical management and "apparent
instability of operational planning." The Committee suggests
longer continuity in command positions and/or the possible replace-
ment of military with civilian personnel in developmental programs.
d. In criticism of DIA, the Committee's investigative staff
examined management practices therein and found excessively
elevated grade structures, the assignment of high ranking military
personnel to positions which could be handled by people of lower
grades and the failure of top management to streamline the manage-
ment. The Committee calls for a decided improvement in operations
and expects a re poi t next year indicating substantial progress.
e. The Committee praises the Department of Defense prac:ire-
went program and the operating of competitive bidding for procure-
ment purposes.
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f. The Cosaittee criticises existing procedures whereby
personnel in MM saist "assume too often a primarily negative
role in their reaev of proposals of the military services."
They suggest t etieperhape more of the negative role could be
Tested in the Comptroller's office and could undertake a
more active part in expediting the successful completion of
approved development programs." The Committee also criticizes
the tendency of engineers to "make just one more refinement in a
system."
S. The Caasaittee also calls for the Department of Defense
to make better use of scientific and technical investigations
funded by other departments. In this connection taut Comte will
direct it staff of i st. ,ors to ate the deist s
for "oars s e1' c rsae 2 ef'fo , the various
at& and ncie and to suggest economies which m3;ht be
saccaip imbed through genuine coordination.
h. The Committee recommends greater use of in-house capability
in lieu of higher-cost external research effort (applicable to Army
particularly).
i. The Committee feels DOD should very carefully consider the
dsevelop sent of the YF?LA as an err ':stio aal interceptor. Special
commendation is given to the outstanding achievements of the A?ll.
"(signed) John M. Clarkei
John M. Clarke
Director of Budget,
Program Analysis and
Manpower
Distribution:
Orig ? Z.xDir
1 -Col. White
r) ? General. Counsel
1 ? Ch/BD
1 ? BPAK Reading File
1 ? JMC Chr onto
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Approved For Release 2005/11/21 : CIA-RDP72-00337R000500210020-9