(b) Benefits. While income of the 608 program in the past 2 years has not kept up with expense, recent figures suggest that financial operations are beginning to normalize around the new organization and system. However, increase in income is vital in order to balance expense and preserve the integrity of the revolving fund. It is expected that activities in the remainder of fiscal year 1971 will permit a fair conclusion concerning operational effectiveness under present procedures and policy. Under Operation Payload, diesel engines have been ordered for 202 excess trucks. The trucks will be dieselized and put in guaranteed "like new" condition. AID recipients will obtain the vehicles for less than 50 percent of the cost of new trucks. Furnishing the converted trucks instead of new trucks will result in a dollar saving to the AID program of nearly $1.5 million.

The subcommittee, at AID's request, furnished 300 copies of the printed 1969 and 1970 hearings for distribution to overseas missions.

41. Returning Unneeded Overseas Property for Further Federal Utilization and Donation Within the United States.

(a) Summary. A recommendation by the committee in House Report 865, 90th Congress, resulted in a project that is now returning considerable property from Germany and the Far East to the United States for further Federal use or for donation to educational, public health, or civil defense activities. This project began in 1968 as a test operation in which GSA, HEW, DOD, and several State surplus property agencies cooperated closely. It was agreed that the donee users would bear the expense of shipping and handling. As a result of imagination and hard work by the involved agencies, the program has clearly demonstrated its workability and value. HEW has now assigned personnel to Germany and to the Far East, specifically Okinawa and Japan. GSA is also placing personnel overseas to assist with Federal utilization as well as with some donation matters. Throughout, the subcommittee has conducted active oversight of this operation.

Thirty-three State surplus property agencies have participated in the overseas program. Most have been well satisfied with the result. Property returned continues to be of very desirable type and quality. In August 1970, GSA sponsored a special project known as "Project Home-Run." This was an entire shipload (over 9,000 measurement tons) of unneeded Federal property returned to the west coast from Japan and Okinawa. Some 4,000 tons were earmarked for the donation program and the rest for distribution by GSA for further Federal utilization. (See Congressional Record, Sept. 22, 1970, p. H-9056.) By enactment of Public Law 91-426, September 26, 1970, the Congress elevated this enterprise to a full-scale Federal program and authorized the Administrator of General Services to prescribe regulations governing it. Under the act, transportation costs are borne by the user be it Federal agency or donee. The holding agency overseas retains discretion whether to dispose of its property by this authority, or by some other authorized mode, such as sale. GSA's proposed regulations are being circulated for comment.

(b) Benefits. For the benefit of the donation program, 415 cargo container-vans of property have now been shipped from Europe and the Far East, plus 14 Military Sea Command shipments of heavy equipment. The original Government acquisition cost of all this property was $15.6 million. Of these vans, 198 came from Germany. From the Far East, 217 vans were shipped, of which 58 represent the container-equivalent of the "Project Home-Run" property. The original acquisition cost of the German shipments is $9.7 million, and that of the Far East shipments is $5.8 million.

State agencies have reported that the influx of high-quality property from overseas has stimulated greater donee interest in surplus property of domestic origin.

The opportunities and techniques shown during the early stages of the overseas program as effective in bringing property back for donation stimulated GSA to begin exploiting overseas property resources for the benefit of Federal agencies in the United States. Its first major effort was "Project Home-Run." The 5,000 measurement tons of property returned by this and later shipments for further Federal utilization represent an approximate original acquisition cost of $3.7 million. Current replacement cost of this property would be much more. With a 10-percent allowance for shipping, handling, storage, and administrative expense, the net saving to the Federal Government because of new procurements thus made unnecessary is estimated at $3.3 million.

42. Providing Specialized or Technical Services and Essential Facilities to State Agencies for Surplus Property.

(a) Summary.—The purpose of title III of the Intergovernmental Cooperation Act of 1969 is "to encourage intergovernmental cooperation in the conduct of specialized or technical services and provision of facilities essential to the administration of State or local government activities, many of which are nationwide in scope and financed in part by Federal funds." Pursuant to this title, the Bureau of the Budget issued Budget Circular A-97, dated August 29, 1969, requiring Federal agencies to cooperate to the maximum extent possible with State and local governments to provide such services as may be authorized. The bulletin specifies the types of services available.

The subcommittee, by letter, urged the State agencies for surplus property and the Department of HEW and the GSA to explore fully the availability of such services to the State agencies. For example, the operation of State agencies under the overseas property program (see item 41 above) could benefit by such services as might appropriately be rendered by the Department of Defense overseas. Also, Federal Telecommunications System services for the States, clearly encompassed by the BOB circular, would enhance efficient and economical operation of the donable property program. Most State agency toll calls are made to Federal holding and administering agencies.

In letters to the Administrator of General Services and the Secretary of HEW, the subcommittee chairman urged prompt exploration of means whereby the FTS services could be made available. As a

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result, GSA advised the subcommittee it was undertaking to coordinate the obtaining of specialized or technical services, including Federal Telecommunications System services for the State agencies. On November 14, 1969, the Secretary of HEW reported on its exploratory action with GSA and the State surplus property agencies, pointing out that any decision regarding the furnishing of such services would rest with GSA, as the agency which administers and operates the FTS. On March 18, 1970, the Administrator wrote the subcommittee of GSA's decision that FTS service could be made available for State surplus property agencies where existing facilities and personnel were sufficient to meet the requirements for additional service. On July 16, 1970, South Dakota's State agency became the first to connect with FTS. Since then, the agencies of California, Colorado, Maryland, and Michigan have also come on the line.

(b) Benefits. Substantial economies and increased efficiency are likely as a result of the sharing of such services, which, at the same time, will promote the purpose of encouraging intergovernmental cooperation.

II. Legislation

MILITARY OPERATIONS SUBCOMMITTEE

1. H.R. 474, To Establish a Commission on Government Procurement. (a) Report number and date.-House Report No. 91-468, August 12,

1969.

(b) Summary of measure.-Bill provides for a temporary commission of experts on Government procurement. It would be a mixed commission of 12 members; five appointed by the President, three by the President of the Senate, three by the Speaker of the House, with the Comptroller General serving as a member. Each appointing authority would draw equally upon Government and non-Government sources. The congressional appointees would be bipartisan. The Commission would have a broad mandate to study procurement Government-wide and to make findings and recommendations to the Congress. Its tenure would be limited to 2 years.

Declaring it to be the policy of Congress to promote economy, efficiency, and effectiveness in the procurement of goods, services, and facilities by and for the executive branch of the Federal Government the bill outlines 12 general ways of achieving this policy. These are intended as general guidelines for the work of the Commission and not as rigid recommendations for changes or modifications in existing procurement laws.

The Commission is directed to study and investigate the present statutes affecting Government procurement; the procurement policies, rules, regulations, procedures, and practices followed by the departments, bureaus, agencies, boards, commissions, offices, independent establishments, and instrumentalities of the executive branch of the Federal Government; and the organizations by which procurement is accomplished to determine to what extent these facilitate the policy declared in the bill.

(c) Legislative status.-Public Law 91-129 approved November 26, 1969.

(d) Hearings.-Hearings were held on March 18, 19, 20, 24, 25, 26, 27; April 15, 16, 21, 22, 23, 28, 29, 30; May 5, 6, 13, 14, 15, 16, 20, 21, 22, 26, 27, 28; June 17, 18, 19, 24, 25, and 27. The hearings were printed in nine parts comprising 2,619 pages.

2. Reorganization Plan No. 1 of 1970, To Create an Office of Telecommunications Policy, Effective April 20, 1970.

Military Operations Subcommittee staff assisted the Executive and Legislative Reorganization Subcommittee in its hearings on this plan. The plan put into effect recommendations made by the Military Operations Subcommittee in its reports on Government use of satellite communications and on military communications in 1965, 1966, and

1967.

GOVERNMENT ACTIVITIES SUBCOMMITTEE

1. H.R. 10791, To Amend the Budget and Accounting Office, 1921. To Direct the Comptroller General To Establish Information and Data Processing Systems, and for Other Purposes.

(a) Report number and date.-House Report No. 91-258, May 20,

1969.

(b) Summary of measure. The purpose of H.R. 10791 is to provide for the efficient and effective utilization of modern data processing techniques to give committees and individual Members of Congress better information for decisionmaking.

This proposal does not alter the jurisdiction or authority of any committee. Nor is the authority or jurisdiction of any of the subordinate units of either the House or the Senate, or the Congress as a whole, affected to any significant extent.

The bill delegates authority to the Comptroller General of the United States to provide for and coordinate electronic data processing usage in the Congress. Three closely related but distinct responsibilities are delegated to him:

First is the responsibility to cooperate with the Director of the Bureau of the Budget in the development of a compatible data system to support the budget and appropriations cycle. Under this authority, the Comptroller General would see that the system and the data base under development in the executive branch of the Government have those inherent characteristics necessary to meet the needs of the Congress.

Second, the Comptroller General is delegated the coordinating authority necessary to extend these basic concepts of compatibility to all other data processing systems to be developed in the Congress to process substantive data pertinent to the legislative process.

Third, the Comptroller General is given the responsibility to coordinate the general management of computers in the legislative branch, irrespective of their application or use, to assure effective and efficient exploitation of these techniques in the Congress.

Under this approach, Congress can work toward the developmen“ of an optimum level of computer capability without unnecessary duplication in computer capacity.

(c) Legislative status.-Pending before the House Rules Committee.

(d) Hearings. An open hearing was held on H.R. 404 and H.R. 5522 (identical bills) on April 23, 1969. On May 1, 1969, H.R. 10791 was introduced as a "clean" bill, sponsored by all members of the subcommittee, rather than amending H.R. 404 and H.R. 5522. The transcript of the hearing on H.R. 404 and H.R. 5522 has been printed.

2. H.R. 16443, To Amend the Federal Property and Administrative Services Act of 1949 in Order To Establish Federal Policy Concerning the Selection of Firms and Individuals To Perform Architectural, Engineering, and Related Services for the Federal Government.

(a) Report number and date.-Report No. 91-1445, September 10,

1970.