FEDERAL OFFICE OF PROCUREMENT POLICY ACT--CONFERENCE REPORT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000600130014-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: November 17, 2016
• Document Release Date: July 13, 2000
• Sequence Number: 14
• Publication Date: August 19, 1974
• Content Type: OPEN

>,? 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
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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.
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 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-
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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-
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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
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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
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 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.
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 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.
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 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
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 ,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 $211 Ilion. As of
December 1972, 11 laboratories an 9 centers
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S 2474 CONGRTSSICNAL RECORD -SENATE February 28,1974,,l,
(called contractors) were engaged In a hea- T'he' Civil Servco Act requires appoint- objectives and the activities needed to attain
tional research and development. mentri to competitive civil service positions them.
There was little evidence that products in the Federal service in the District of C$- 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-
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