BY MR. CHILES (FOR HIMSELF, MR. PERCY, AND MR. HEINZ)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00933R000400030034-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 9, 2016
• Document Release Date: May 11, 2000
• Sequence Number: 34
• Publication Date: May 11, 1977
• Content Type: OPEN

Approved For Release 200.0/09/03 : CIA-RDP84-00933R0004000300.34-0
May 11, 1977 CONGRESSIONAL RECORD ? SENATE
ffghting the Mob. ACcording to a study
bY G. Robert Blakely, director Of the Cornell
Institute On Organized 'Crime, all levels of
governtherit- employ" Only 400 lawyers who
specialize in brgarilzed Crime. Says he: "The
Mafia now has more lawyers than we have."
Permitting ,easier bugging and wiretapping
Of known members of drganfZed4crime. The
crinrtS neW'retienire investigators' to demon-
strAte that a sp crime has probably been
COMMittett, 1f the. eavesdropping does not
turn up enough evidence end the suspects
are not propmtly indicted, they must be in-
formed about the bugs or taps.
plotting stronger legislation. The Carter
Administrator last week `moved in this 'direc-
tion PT proposing laws 'that Would prohibit
the laundering of fvtob inorieY,lighten loan
sharking 'thtatUtes -and 'provide stiff prison
sentences for operating, racketeering syndi-
cates. The: Proposals, however, clO not solve
the central problem: the very difficulty of
proving charges of money-washing, loan-
sharking and running illegal rackets.
Giving convicted' racketeers longer prison
sentences. The GAO study found that over a
four-year period, 62% of the Sentences
im-
posed on Organized criminals by federal
courts involved fines but no imprisonment
and only 20% were tor sail ten-tie of two years
or more. One reason: many judges feel that
the mobsters' crimes, except the killings of
each other, are nonviolent and thus les?
serious than, say, Mugging. When jailed,
mobsters are generally model prisoners' and,
'with their high-priced legal help, Win parole's
more eAsilY than the average convict.
Above all, there must. be an end to Amer-
icans' tolerance for any kind or organized
crime. Romantic notion about the dons and
winking acceptance of their goods and serv-
icestaCeAte_ailatmospliere that helps the Mob
to 'flourish._ Without a 0-refound shift in Pnb-
lic attitudes, even the limpet aniesqive law
enforcement drive against the "Mafia ahd
organized crime has scant chance' of perma-
nently cutting into their activities, let alone
putting them out of business.
vlzzCODDiorma' s
They live quietly in the exclusive Suburbs
of River Perest and the Hamptons. 'There may
be a ranch house in Palm Springs or a Mi-
ami condominium as well. They can afford
the best of everything, but they have almost
nowhere to go, few Pleasant ways to page the
time. Their husbands are often away,on buSi7
ness, or in Jail, Or calling on their mistresses.
The Wives are, isolated only' by body-
guards but alsolV"ignorande of the details
of their husbands business aetiVities,_ The
men's, arorltday deeds are not discussed at
dinner.
Today most Mafia wives are native Ameri-
cans, but their marriages reflect the old-
country values Of silence and obedienee,
Family bonds have weakened. but neither the
generation gap nor the suburban biasnora
has dissolved thein, -Fathers 'MO bankroll
their sons in A leltimate business or pay
their way through rnedfeal schoOl. "But if the
sons don't have the brains," says' an inves-
tigator, "they are given work in the Mob. The
sorts don't become plumbers or factory work-
ers. That Wouldn't look right." Many of t the
daughters go 't6 college, but only a few seek
careers, most marry early.
. . ? .
The Maria's code limits social activities.
"'Made' guys (Manosil don't like their wives
to ini,ngle with the wives of Other 'Made'
guys; says fbriner MOb lieutenant, ."be-
cause imight rOvea Sornithn.g., about
each other. The only thing Wives _go to is
wakes, weddings and funerals." ?
Detroit News Reporter Shelley Eichenhorn
intervieiked for TimS the wives of three mid-,
dfi47,t14 high-level MqfloSi. Her report:
ese?wornen.live,snspended in contradic-
_
tree-lined Grosse Fointe streets and,
prre. cells, handmade lace and machine
guns, frmity portraits and FBi mug shots,.
They disbelieve the ugly headlines about
their men, and they bristle at the stereotype
of themselves as provincial peasant wives
who never leave the nursery or their knees.
"They're not vulgar or bold-acting," says
one Grosse Pointer. 'They are mother and
grandmother types?and good ones. Take
Mrs. Anthony Giacalone [wife of a top Mafia
figure in Detroit's ' ruling family], she's a
quiet, lovely lady. Why, she even contributed
$20 to the March of Dimes."
Mafia wives rarely unburden themselves to
friends, and sometimes not even to their par-
ish priests. Says a Grosse Pointe priest: "One
woman's husband is in prison. She doesn't
want to be asked how he is. The subject is
never introdueed. Her man is away; she
misses the father of her children."
When Mass is over, one top-ranking Mafia
wife returns home where a plaque proclaims
her Madonna of the Kitchen. A housekeeper
is here today only because the wife is ill.
She makes a point of saying that she cares
for her own house, It is a matter of pride.
We live a quiet life. It is not our intention
to be noticed," she says. happiest
sometimes when they leave my name off the
list of charity contributors."
Sundays, her family gathers in the living
room. There are shelves of family pictures,
arid a wall plaque reads: God Bless Our
Family. FiVe children and three grandchil-
dren say grace. The head chair is for their
father; he is in prison.
Across the city in a gracious colonial home,
another Mafia wife speaks with pride of her
husband, a graduate of a prestigious univer-
sity who served honorably in the Army. A re-
cent family portrait hangs above the fire-
place. Her husband is not in the picture; he
is serving a five-year term.
"The worst thing I had to face was the day
my husband went to prison," says the wife, a
pleasant, stylish blonde. "For him, the worst
day came when his kids were kicked out of a
private Grosse Pointe club.
"I'm so sick of the Italian image of the
uneducated housewife. The women / know
give their time to charities and hospitals.
They don't get in the papers. They don't do
it for that. I feel for the Watergate wives. I
admire them for standing by their husbands.
I uphold that.
"They have taken my husband out of my
home for no reason. Others are murderers,
and they walk the streets."
Most of the wives are totally untouched by
the violence that pervades their husbands'
lives. Not Jeanne Randazzo. Her husband
Frank and two other men were shot to death
last summer in the basement of the Rendez-
zoo' modest home on the east side of Detroit.
The gunman, a government informer named
Ernie Kanakis, was acquitted on the ground
of self-defense; he told a jury that the oth-
ers had tried to kill him with ice picks.
"Life is nothing," says Jeannie. "Life is
a vaporous smoke. On the night Frank was
killed, he said, 'Don't cook, we'll g0 out to
dinner, He took a shower like he always did,
and we went 'to, dinner with my son and
daughter. After dinner, about 11:45 p.m.,
Frank said he had to see someone who was
buying Our '74 Cadillac. H. said to wait for
him at the Golden, Coach, Restaurant. When
he didn't come back by 10 p.m., my son said,
.11 I know Dad, he fell asleep in front of the
TV set.'
"So we went home. I couldn't get in my
own house .because of the police and the
neighbors. The bodies were still in the base-
inent, I hail to move in with my mother for
thyee, days while the police cleaned up."
_ In the. Randazzo parlor, red and white
checkered bows brighten dried-flower ar-
rangenie,nts left over from Frank Randazzo's
ft41.?P34. Were. ,married 37 years," says
wiping tears from behind
'black-rimmesi glasses. "Before you know it,
it's goodbye."
Approved ForRelease 2000/09/03 : CIA-RDP84-0093
S 7391
By Mr. TOWER:
S. 1488. A bill to provide for monitor-
ing of soil moisture in drought-prone
areas, to provide information thereon
and accelerate financial and technical
assistance to lessen impact of drought on
farming and ranching operations; and
S. 1489. A bill to amend the Soil Con-
servation and Domestic Allotment Act to
prevent soil erosion during a drought
emergency; to the Committee on Agri-
culture, Nutrition, and Forestry.
Mr. TOWER. Mr. President, I am in-
troducing today two bills which will both
help to prevent the worst consequences
of drought in the United States and rem-
edy those which cannot be planned for
or prevented.
It is essential that the Department of
Agriculture be able to better predict
drought occurrence and warn farmers ?
and ranchers of' its imminence. Although
the rudimentary machinery is in place
within USDA, the program does not?
work satisfactorily, as we can all attest
from our recent experience in the West.
My bill would correct this deficiency
by directing the Secretary of Agriculture,
through the Soil Conservation Service, to
monitor soil moisture, rural water sup;
plies, and other drought-related indices
in drought-prone areas to provide inf or- -
mation for making decisions about early
actions which can be taken by both Gov-
ernment and landowners to minimize the
adverse effects of drought.
This bill would also accelerate the soil
conservation program by helping farm-
ers to implement those measures which
lessen the potential and the impact of
drought. Without such measures, we are
in jeopardy in this country of losing Our
present ability to feed and clothe the
Nation.
The second bill, Mr. President, would
authorize assistance on a matching basis
for weather modification measures, when
these remedial efforts are needed and de-
sired by local conservation districts. The
bill does not authorize the Federal Gov-
ernment to undertake such weather
modification work on its own or without
the request of local soil conservation dis-
tricts. The power to plan or implement
these efforts to modify weather patterns
and precipitation will remain at the local
level.
Mr. President, I think this last provi-
sion is very important. Weather modifi-
cation to relieve drought areas remains a
controversial alternative. It is still as
much an art as it is a science, and the
decision to implement such procedures
is one which is appropriately a local
initiative.
It is also important, however, that the
Department of Agriculture expend ap-
propriate efforts to assist those farmers
and ranchers in an area to take these
steps, should they be deemed desirable.
My bill, if enacted, would provide up to
80 percent of the cost of weather modi-
fication work, with the remaining share
paid by the conservation district or com-
bination of districts that request assist-
ance.
The cost of both bills is relatively low.
In the case of the weather modification
assistance bill, $5 million is authorized
for each fiscal year through Septem-
ber 30, 1080.
3R000400030034-0
, Approved For Release 2000/09/03 : CIA-RDF'84-00933R000400030034-0
S 732 CONGRESSIONAL RECORD?SENATE May 11, 1977
, . President, drought is a long-term eeneervatio '
n of soil, water, and related re-
disaster, a gradual depletion of resources sources.
"(3) 'Weather modification' shall mean any
which saps the vigor of the Nation's
activity performed with the intention of pro-
agricultural sector. By helping to pre- ducing artificial changes in the composition,
vent, to plan for, or end drought-related behavior, or dynamics of the atmosphere.
disasters, we can in some measure insure (D)isrrticatte'fshcall include the several States,
continued vitality of the farm sector. I the otlhuemvbiira,itnheIsl Commonwealth
know each' of my colleagues is concerned of Puerto Rico, Islands, d the
eand n United
Mr.
that goal, and I would hope they territory or insular possession
Mr
States.
would -view these tvio bills as viable steps
"(5) The term 'Governor' means the chief
- in that direction. executive of any State.
Mr. President, I ask unanimous con- "(b) (1) Pursuant to the request of a Gov-
sent that the two bills I have introduced ernor, the Secretary is hereby authorized to
today to alleviate drought disaster be declare a state of drought to exist in those
Printed In the RECORD. areas designated by the Governor in the Goy-
713:pre being no objection, the bills were ernor's request to the Secretani.
"(2) Whenever a drought is declared as in
Ordered to be printed in the RECORD, as
ti 2(b) 1) within a district or combina- one but in each instance, Congress Ad-
follows: tion & 148$ n of districts, the officials of the district or one, but
journed before the House could take ac-
combination of districts may make applica-
Mr. CHILES. Mr. President, today I
join with Senator PERCY and Senator
HEINZ in introducing a bill to save up
to $150 million a year in Federal leas-
ing of automatic data processing equip-
ment.
As an amendment to section 111 of the
Federal Property and Administrative
Services Act of 1949 (40 U.S.C. 759) ,
this new subsection (H) authorizes the
Administrator of General Services to en-
ter into multiyear leases through the use
of the automatic data processing fund
without obligating the total anticipated
payments to be made under such leases.
In each of the last two Congresses,
the Senate passed bills identical to this
. Be it enacted by the Senate and House tion to the Secretary for financial assistance tion. This time around, both Senator
of Representatives of the United States of for weather modification purposes. PERCY and I are looking forward to work-
? America in Congress assembled, That this "(3) Upon such a request from a district or ing with Senator HEINZ to enact this leg-
A t rna be cited as the "Drought Disaster combination of districts, as in section 2(b) islation into law.
In this period of economic stress, it is
our obligation to initiate and encourage
efficient and conscientious spending in
our Federal agencies. Wasteful spending
practices are today outrageous. This bill
is one part of a broad campaign to over-
haul the Government's antiquated sys-
tem for spending $70 billion a year in
the purchase of goods and services.
This legislation was recommended by
the Commission on Government Pro-
curement and supported by the General
Acounting Office in a report entitled
"Multiyear Leasing and Governmentwide
Purchase of Automatic Data Processing
Equipment and Results in Significant
Savings"?B-115369-0f May 7, 1974.
As GAO concluded in that report:
Almost all of the $390 million that the
government spent to rent ADP equipment
In fiscal year 1969 was for short-term rentals
. . . generally the most costly acquisition
method.
Furthermore, GAO discovered:
Since many agencies do not seek compe-
tition before renewing leases under schedule
contracts, there is no assurance that the
Government is leasing a major part of its
ADP equipment at the lowest possible cost.
Most manufacturers and suppliers offer
discounts under multiyear leases. Since most
Government leased ADP equipment is for
3 or more years, GAO concluded that the
rental of the equipment under multiyear
leasing would be the most efficient use of
the limited funds available for such equip-
Warning and Assistance Act of 1977".
, (2) the Secretary, through the Soil Conserva-
Etna. 2. The Secretary of Agriculture, tion Service, shall make financial assistance
through the Soil Conservation Service, is di- available to the district or combination of
rette:d under existing authorities to moni- districts for the purpose of assisting and in-
tor sbil moisture, rural water supplies, and itiating weather modification measures rec-
other drought-related indicators in drought- ommended by the district designed to allevi-
prone areae in order to provide information
for Making 'decisions about early actions
which , can be taken by Federal, State, and
local goVerninents and landesvners or land
users to minimize the effects of drought.
Sag. 3. The Secretary is further directed
to accelerate financial and technical assist-
ance .to farmers and ranchers and to develop
and help implement those additional con-
serVation techniques or measures that will
lessen the impact of a drought on their op-
eratidaa, thus aeSuring a continued supply of
fOod and Tiber far the Nation. '
S. 4, Such measnies on irrigated lands
-- shall include but not be -limited to irriga-
tion system change or reorganization, land
leveling, ditch lining or piping, water flow
control structures, and water re-use systems;
- provided that such measures are planned and
iplernehted to provide improved water qual-
ity including salinity Control; further tech-
nical assistance will include information on
the capability of Soils' to Produce food and
fiber under, clibizglit Conditions while main-
'taming a soil conservation prograah to reduce
wind and water erasion; further aesistance
will be accelerated to local organizations in
'pooperation with states or other Federal agen-
da, to develop Water resources plans which
-w0t11.4:llessen the-effects of recurring droughts.
Sep. 6. there is 'authorized to be appro-
priated such sums ae are retjuired to Carry out
the provisions of this Act.
S. 1480
'Be it enacted by ,the Senate and House
of Representatives of the United States of
America in Congress disembled, That this
Act may be cited ag the "Drought Emergency
Relief 'Act of 1977".
SEC. 2. The Soil Conservation and Domestic
Alotnient Act is amended by including there-
in the following: ?
"(a) DEFINITIONS?As used in this amend-
ment-- '
. ,
."(1) 'Drought' shall mean that which exists
whenever the Secretary of Agriculture (here-
aft g referred to, as the pecretary), pursuant
to tpi, request of the Governor of a state. de-
,diareq,,that severe econornic' losa IS imminent
Unless an ibid,pp,6 Of piTelpitatica
occurs in the affected liTealri time to prevent
or lessen said economic '
?
? ".(2) 'Distriet' shill Mea? a consereation
district as constituted uriderEfate law In ad-
Oardance With 'the prOviiithis Of section 8(b) 11
Of p Soil 'Conservation and Doniestic Allot- to
,
ate the drought condition. The total amount
of such financial assistance provided by the
Secretary to meet a drought shall equal 80
per centum of the total cost of the weather
modification program during that period of
implementing such drought alleviation or
prevention program.
"(c) The remaining portion (20 per
centum) of the cost of the weather modifica-
tion described in section 2(b) (3), shall be
borne by the district or combination of dis-
tricts in which a drought has been declared,
such money being raised by the district or
combination of districts as the officials of
the district or combination of districts may
prescribe within the limits of the State laws
which initiated the district.
"(d) Funds shall be made available by the
Secretary to a district or combination of dis-
tricts when the district or combination of
districts are declared to be in a state of
drought as defined in section 2(a) (1) and
after the district or combination of districts
have raised the required local funding as pre-
scribed in section 2(c) ."
SEC. 3. (a) The Secretary is hereby author-
ized to transfer and utilize for the purpose
of section 2(b) (3) any funds included in the
Agricultural and Related Agencies Appropria-
tions Act for fiscal year 1977. This transfer
and utilization of funds shall not exceed
$5,000,000 for the fieeel year ending Septem-
ber 30, 1977, these funds to remain available
until exnended.
(b) The funds transferred and utilized in ment.
section 3(a) may be replaced at the request It is essential that competitive proposals
of the Secretary in a future supplemental be solicited for initial lease, purchase, or
appropriation, renewal of ADP equipment as well as soft-
SEC. 4. There are authorized to be appro- ware, maintenance, related equipment, sup-
pleated such sums as may be neceesary to plies and services. Competition should not be
carry out the purposes of this amendment, limited to manufacturers, but should In-
not to exceed $5,000,000 for the fiscal year elude the proposals of third-party sources
ending September 30, 1978, and $5,000,000 for and nonmanufacturing businesses.
the fiscal year ending September 30, 1979, and Presently, GSA has authority to enter into
$5 000,000 for the fiscal year ending Sentem- multiyear leases, payment of which comes
her 30, 1980, all funds to remain available from a revolving fund established by section
until expended. 111(c) of the Property Act. But under 31
U.S.C. 665(a) :
13y Mr. CHTIES (gni- himself, Mr. No officer or employee of the United States
PERCY. and Mr. HEINZ) : shall make or authorize an expenditure?in
e
S. 1490. A bill to authorize the Admin- excess of the amount available therein.
Accordingly, the amount payable for the
trator of General Services to enter into entire period of the multiyear lease must
ltiyear leases through use of the auto- not be -obligated from the fund at the time
tic daf a processing fund without ob- of contracting. However, as GAO recom-
ting the total anticipated payments mended, this legislation would authorize
e made under such leases; to the GSA to enter into lease agreements without
ittee on Governmental Affairs. immediately obligating the total anticipated
t Act having for its prime purposes the Coin
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May 11, 1977
CONGRESSIONAL RECORD ? SENATE S 7393
payment, but rather than cash balances
of the ADP fund be maintained in such
amounts as is neeessary for cash disburse-
Merits of payments.
In an August 20, 1973, letter to, the Presi-
dent of the Senate, Arthur Sampson, Admin-
istrator Of GSA, stated:
A GAO comparison of multiyear versus
short-term rental rate,or 1,066 systems in
the government's inventory of June 1969
indicated possible savings of $70 million un-
der 3-year leases and $155 million under 5-
yeak leases.
I aSic nnahimous consent that the big
and some pertinent descriptive material
be printed in the RECORD.
'There being no objection, the bill and
material were ordered to be printed in
the RECORD, as follows:
S. 1490
Be it enacted by the Senate and House of
Representatives of the United States of
Americain Congress assembled, That section
111 of the Federal Property and Administra-
tive Services Act Of 1949 (40 U.S.C. 759) is
amended by adding at the end thereof the
following: ,
"(h) Notwithstanding any other provision
of law, the Administrator la authorized tg
enter into multiyear contracts under ? this
section financed through the fund and may
incur or authorize obligations in excess of
the amount available in the fund, except
that (1) the amount of unfunded obliga-
tions incurred during any fiscal year shall
not exceed the amount specified in an ap-
propriation Act for that fiscal year, (2) the
cash balances of the fund shall be main-
tained in such amounts as are necessary at
any time for cash disbursements to be made
from the fund, and (3) the term for the per-
formance of any such contract shall not ex-
ceed ten years.
"(1) As u,sed in this section, automatic
data processing equipment also includes,
but is not limited to, hardware, software,
maintenance, related equipment and sup-
plies, and related services."
EXCERPTS FROM REPORT
PURPOSE
This bill amends section 11 of the Federal
Property and Administrative Services Act of
1949, 79 Stat. 1127, as amended (40 U.S.C.
759) by adding two new subsections (h) and
(i). These subsections would permit the Ad-
ministrator of the General Services Adminis-
tration (GSA) to enter into multiyear leases
(nOt to exceed ten years) of automatic data
processing (ADP) equipment at amounts in
eXCeSS of what is available in the fund, pro-
vided the amount of unfunded obligations
authorized is not needed and the balances
of the fund are maintained in such amounts
as are necessary at any time for cash dis-
bursements to be made therefrom. Thus,
the 'United States Government, the world's
largest user of ADP equipment, would be
able to take advantage of multiyear lease
savings that are available to any private
business. The bill also clarifies that tile
authority to enter into multiyear leases of
automatic data processing equipment ex-
tends to collateral maintenance, software
and pllser kinds of supplies and services that
norinally flow with ADP equipment acquisi-
tion.
NEED FOR THE LESISLA'TION ,
The, clevernment is expending $35 to $75
Million more for instailed computer equip-
ment under short-term leases it Would
under firm-term multiyear leases. Millions
of dollars of additional savings are possible
through the use of multiyear contracting for
new equipment and maintenance services
associated with long-term leases. S. 2785
would permit the Government to obtain bet-
ter terms, more effective competition and,
In short, operate in the marketplace in a
manner comparable to commercial _lessees of
automatic data processing equipment.
Presently, GSA has multiyear leasing au-
thority for acquisition of automatic data
processing equipment through the ADP
Fund. However, since, under 31 U.S.C. 665(a),
"No officer or employee of the United States
shall make or authorize an expenditure-1n
excess of the amount available therein:"
the amount payable for the entire period of
the multiyear lease must be obligated from
the fund at the time of contracting. This
provision severely limits the use of the ADP
Fund for multiyear leasing; therefore, GSA
and other Federal agencies are generally
forced to enter into short-term leases, or
long-term leases with termination rights.
Both of these types of leases are consider-
ably more expensive than firm-term multi-
year leases.
* *
ANALYSIS OF THE BILL
The bill amends section 111 of the Federal
Property and Administrative Services Act of
1949 by adding two subsections.
Subsection (Ii) would enable GSA to en-
ter into multiyear leases at amounts in ex-
cess of what is available in the ADP Fund.
Restrictions are placed on this authority to
enable Congress to maintain visibility and
control over the Fund. An additional provi-
sion limits the terms for performance of
multiyear leases placed under the authority
of this subsection to ten years.
Following is a further elaboration on each
of the above three elements of subsection
(h):
Firm-term multiyear leases
GSA's authority to execute firm-term
multiyear leases for automatic data process-
ing equipment is severely restricted because
governing laws require obligation of the to-
tal post for the entire period of the lease at
the time of contracting. These laws provide,
in part, that:
"No officer or employee of the United
States shall make or authorize an expendi-
ture from or create or authorize an obliga-
tion under any appropriation or found in ex-
cess of the amount available therein; nor
shall any such officer or employee involve
the Government in any contract or other
obligation, for the payment of money for any
purpose, in advance of appropriations made
for such purpose unless such contract or ob-
ligation is authorized by law. (31 U.S.C.
665(a)).
"No contract or purchase on behalf of the
United States shall be made, unless the same
is authorized by law or is under an appro-
priation adequate to its fulfillment," . .
(41 U.S.C. 11)
Subsection (h) would remove this restric-
tion, thereby permitting GSA to use firm-
term multiyear leases rather than short-
term rentals of one year or less.
During the hearings on S. 2785 the Com-
puter and Business Equipment Manufac-
turers Association (CBEMA) representative
cautioned that if the Government applies
the authority of this bill in such a manner
as to conflict with normal commercial oper-
ations, then countercosts would arise which
would offset the advantages of true multi-
year leasing. He pointed out that in return
for payment of a lesser sum over a specific
number of years, the ADP vendor expects a
long-term commitment or cash flow which
Approved For Release 2000/09/03 :
can be discounted by a bank or used as col-
lateral :for a loan. The Committee took the
position that the objective of the bill is to
gain for the Government the same benefits
that are available to the private sector from
multiyear contracts. Accordingly, the Com-
mittee desires the Government's use of
multiyear contracting to be consistent with
normal commercial practice. The Committee
expects GSA to use a multiyear contract
that is, in fact, a marketplace mechanism.
Another point that arose during the hear-
ings was whether the multiyear contracting
authority should be extended to user agen-
cies. CBEMA suggested that S. 2785 is un-
necessarily restrictive in limiting multiyear
leasing to GSA's ADP Fund. After a thor-
ough evaluation of this suggestion, the
Committee determined that the CBEMA ob-
jective of maximizing use of the multiyear
authority could best be accomplished within
the framework of Public Law 89-306 that
established GSA as the focal point for ADP
management within the executive branch.
The approach adopted in S. 2785 of estab-
lishing the ADP Fund as the single source'
of funding for multiyear ADP contracts has
a number of advantages:
GSA can consider the useful life of ADP
equipment to the Government as a whole.
Individual agencies, either from annual ap-
propriations or from revolving funds, would
only be able to commit funds for their indi-
vidual needs.
The provision in the bill that, "the amount
of unfunded obligations incurred during
any fiscal year shall not exceed the amount
specified in an appropriation Act for that
fiscal year," assures congressional control
over these expenditures. Broadening the bill
to authorize other agencies, through annual
appropriations or revolving funds, to con-
tract on a multiyear basis would diffuse ?
accountability to such a point that Congress
could lose a great Measure of fiscal control.
By funding all firm-term multiyear con-
tracts through the ADP Fund (including
those procurements delegated to other agen-
cies), single payment discounts from vendors
of 2 to 4 percent annually are expected.
One source of ADP funding to interface
with the market and its supporting financial
institutions would enhance the Govern-
ment's bargaining position for the acquisi-
tion of ADP equipment.
The concept in S. 27135 of the ADP Fund
serving as the single source of funding for
multiyear ADP contracts is entirely consist-
ent with the responsibilities assigned to GSA
by Public Law 89-306. Senate Report 89-938,
pertaining to this law, discussed the need for
the Fund and GSA's operation of the Fund
In these terms:
The. Fund would afford an effective means
of attaining economic acquisition of Gov-
ernment ADP equipment.
Were all ADP purchase and lease money in
"one pocket," the Government would be in a
stronger bargaining position in dealing w:lth
the manufacturers.
But the most compelling need for the re-
volving fund is in establishing the single
puchaser concept in Government AD?
acquisition.
Essentially, all Federal agencies would
lease equipment from the GSA revolving
fund.
By proper use of the authority conveyed in
the Brooks bill as amended by S 2785 all
of the above advantages can be realized,
while maximizing use of the multiyear con-
tracting authority. It will also be possible
to use selectively, the capabilities for ADP
procurement that exist within the user agen-
cies. The procedure to be employed bi GSA
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S 7394 CONGRESSIONAL RECORD ?SENATE May 11, 1977
In implementing S. 2'785, is explained in the
Agency's letter of April 5, 1974. It should be
noted 'that in recent years GSA hag' dele-
gated approximately 81 percent of the ADP
procurements to user agencies (in terms of
dollar value).
Under the GSA procedure, when a procure-
ment delegation is made to an agency to
enter into a firm-term multiyear lease with-
out full obligation of funds, the authority
to cite and obligate the ADP Fund will also
be delegated. The Fund then would under-
write the contract and ,make payments " to
the vendor, and the us( n? agency -Would. reim-
burse the Fund from annual apiiropriations.
To insure that there is no legal impedi-
ment to QSA delegating an agency author-
ity to cite and obligate the Fund, the Gen-
eral Accounting Office was asked for an opin-
ion. GAO confirmed that there is no pro-
hibition against this practice, as long as GSA
maintains adequate overall supervision of
Federal agencies procurement of ADP equip-
inent and provided the amount of unfunded
obligations authorized is not exceeded and
that there is sufficient balance in the ADP
Fund to make required cash disbursements.
ADP fund
Use of the Fund, as prescribed by S. 2785,
is consistent with the principles of congres-
sional visibility and control as set forth in
the,,Senate's budget reform legislation (S.
1541, as amended) . The provisions In the bill
that (1) the amount of unfunded obliga-
tions incurred during any fiscal year shell
not exceed the amount specified in an appro-
priation Act for that fiscal year, and (2) the
cash balances of the Fund shall be main-
tained in such amounts as are necessary at
any time nor cash disbursements to be made
from the Fund, will enable Congress to exer-
cise control over the amounts that may be
obligated for ADP leasing. These restrictions
conform to the requirements established in
Public Law 89-308 for operation of the ADP
Fund.
Contract terra
The limitation of ten years on the term
for the Performance of a multiyear lease pro-
vides an essential control but permits flex-
ibility in the negotiation of multiyear leases.
One reason for selecting ten years is that the
current life of ADP systems is eight to ten
years. Another reason Is that it corresponds
to GSA's contracting authority in the tele-
coluniunications area. The fact that multi-
year contracts may cover up to ten years does
not alter the requirement that multiyear
leases are to be justified on a case-by-case
basis as the most cost-effective method of
acquiring needed ADP equiPment.
Subsection (i) was included in the bill to
make it clear that the authority in subsec-
tion (h) applies to more than leases for
hardware. Software development, related
equipment, maintenance, supplies, and serv-
ices may also be procured by firm-term
multiyear contracts. The description of au-
tomatic data processing equipment in sub-
section (1) is compatible with the General
Accounting Office interpretation of auto-
matic data processing equipment as it is used
in the Brooks bill.
Mr. PERCY. Mr. President, along with
Mr. CHILES and Mr. HEINZ I am intro-
ducing legislation to amend section 111
of the Federal Property and Adminis-
trative Services Act of 1949, 79 Stat.
1127, as amended (40 U.S.C. '159). This
legislation would permit the Adminis-
trator of the General Services Adminis-
tration to enter into multiyear leases of
automatic data processing equipment
through the use of the automatic data
processing fund, provided cash balances moval, and similar services for periods
of the fund are maintained in such not exceeding 4 years; to the Committee
amounts as are necessary at any time on Governmental Affairs.
for cash disbursements to be made there- Mr. PERCY. Mr. President, I am today
from. introducing legislation along With Mr.
This bill was originally recommended CHILES and Mr. HEnqz which would au-
by the General Accounting Office in a thorize procurement of janitorial, pro-
report to the Congress entitled "Multi- tective, trash removal, and similar serv-
year Leasing and Government-Wide ices for periods not exceeding 5 years.
Purchasing of Automatic Data Proces- This legislation is similar to S. 3635,
sing Equipment Should Result in Sig- which was introduced last year by Sena-
nificant Savings." In this report, re- tor CHILES, Senator WEICKER, and my-
leased April 30, 1971, GAO states that? self, and it is consistent with other legis-
The rental of equipment under multiyear lation I have sponsored to allow for sig-
leases, as an alternative to short-term rentals, nificant cost savings by providing for
has become essential if the Government is longer term contracting authority. By
to make maximum use of its limited funds initiating such Multiyear contracts, both
for acquiring ADP equipment. administrative expenses and actual costs
As a result of this report and my own can be reduced.
study of the subject, I introduced S. 2785 Currently, GSA has 390 janitorial serv-
on December 6, 1973. This bill passed ices contracts in 440 buildings. These 440
the Senate on September 19, 1974, but buildings represent 17 percent of the
no action was taken in the House. Government-owned and GSA-leased
The bill which Senators CHILES and buildings. However, since these buildings
HEINZ are introducing with me today is average over 125,000 square feet Of space,
Identical to that bill, and to S. 1260, they represent over 34 percent of all
which Senator CHILES introduced during GSA-managed space. Additionally, there
the 94th Congress 5 1260 also passed. are 'approximately- 210150 trash removal
the Senate, but never reached a vote in and similar contracts in an estimated
the House. 2,200 buildings, or 85 percent of the
I appeared as a witness last year in Government-owned and GSA-leased-
hearings on S. 1260, and I told the Sub- operated buildings. All of these contracts
committee on Federal Spending Practices are currently limited to a maximum
that "for us in Government to assume length of 1 year, necessiating higher
that we only live year to year and there- contract costs as Weil as yearly costs asso-
by cannot commit ourselves in such a way elated with annual hid invitations, adver-
to take into account the economies that tising, bid evaluation, and contract
are available to us is perfectly ridicu- awards.
bus." The United States is the world's GSA has submitted anticipated savings
largest user of ADP equipment, yet it is of $1.5 million annually on 3-year con-
currently unable to take advantage of tracts and $1.63 million annually on 4-
multiyear lease savings that are available year contracts. Since this legislation au-
to any private user. Each year which thorizes contracts of up to 5 years, it is
passes without this bill becoming law estimated that annual savings will be in
costs the American taxpayer significant excess of both these figures. Further-
amounts of money which could be used more, successful experience resulting
for more constructive purposes, from this legislation can ultimately lead
The General Services Administration to further savings by extending contract
estimates that the passage of this legisla,- authority in other areas.
tion could result in savings of $150 mil- I commend this legislation to the at-
lion over the next 5 years, and up to $50 tention of my colleagues, and I hope that
million annually thereafter. Over the we will move quickly toward its adoption.
past 2 years, Senator CHILES has led a Mr. HEINZ. Mr. President, I am
commendable effort to increase efficiency proud to join with Senators PERCY and
In Government by overhauling anti- CHILES in introducing two bills to make
quated Federal spending practices. I the procurement of services by the
firmly believe that this legislation takes Federal Government more efficient and
an important step in that direction, less costly.
Section 111 of the Federal Property Act,
which this bill would amend, authorizes
and directs the Administrator of GSA to:
Coordinate and provide for the economic
and efficient purchase, leasing and mainte-
nance of automatic data processing equip-
ment by Federal agencies.
The introduction of these two bills
shows our continuing commitment to
and interest in reforming Federal
spending practices. Even though these
two bills cover only narrow areas of
Federal spending, I believe that they
are, important for two reasons. First,
In my opinion, which is shared and significant savings will accrue to the
substantiated by GAO and GSA, this bill Government. And, second, these ?two
truly does make such leasing of ADP bills will demonstrate the sizeable po-
equipment "economic and efficient." Ac-j tential for cutting down on Federal
cordingly, I urge its expeditious adop- spending.
tion.
By Mr. PERCY (for himself, Mr.
CHILES, and Mr. HEINZ) :
S. 1491. A bill to authorize procure-
ment of janitorial, protective, trash re-
Presently, there is a 1-year limitation
on contracts for the procurement of
janitorial, protective, trash removal,
and similar services. One of our bills
would authorize multiyear contracts
for these services, so long as such con-
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DATE
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