cations, safety, printing, and internal security.

FY 1973 staff is 476 positions including 56 in Management Planning and Evaluation, 261 in Personnel Administration, 11 in Equal Employment Opportunity, and 148 in administrative support services. An increase of twenty-three positions is requested in FY 1974.

Management Planning and Evaluation - FY 1973 Accomplishments

This activity is conducted by the Office of Management and the Office of Management Planning and Technology. The Office of Management completed a variety of management studies concerning decentralization in the areas of the Office of Education, drug abuse/alcoholism programs, the National Health Service Corps, youth development, Indian programs, and department policy development. Management studies, which have resulted in substantive management improvements, were conducted in the offices of three Assistant Secretaries--Legislation, Administration and Management, and Community and Field Services.

The Division of Federal Assistance Review (FAR) was formally established within the Office of Management. The Division, in formalizing Departmental controls over the FAR program, developed and issued the DHEW-FAR basic plan to major Departmental agencies and OS units. The Division will synthesize program data and analyze various activities of all DHEW components, including OS, to insure maximum Departmental achievement of FAR objectives which are to streamline delivery of Departmental services to make them more responsive to the needs of States and localities.

The Division of Manpower Utilization also was established in the Office of Management to initiate manpower utilization and productivity programs throughout the Department. The FY 1973 position increase was used in the formation of this new division. A Manpower Utilization Council was established to provide top management evaluation of agency manpower utilization plans, to monitor progress toward implementation, and to advise agency heads and the Secretary on significant manpower issues. Agency manpower utilization plans have been submitted to the Council for approval. Under these plans, agencies have set up advisory groups to assist in implementation of the manpower utilization program, in particular, to help in the reallocation of manpower to higher priority functions. This manpower program was recommended by the House Appropriations Committee.

The Office of Management Planning and Technology, through the Operational Planning System, has provided a framework for the Secretary to resolve critical policy issues, established a solid base of results-oriented management systems in five agencies, enabled the agencies to focus attention on specific program output and performance measures and established a management control element for problem solving and coordination of cross-agency efforts.

Program Plans FY 1974

An increase of seven positions is requested for the Office of Management. Four of these positions would be used in the Manpower Management Program to support efforts currently underway involving the design and replication of work measurement and manpower forecasting systems. The additional staff would accelerate the Departmental commitment to conduct manpower surveys of all resources not covered by a measurement system within the next three years and to validate the effectiveness of existing work measurement systems and associated workload data collection techniques. The remaining three positions are requested for the Division of Federal Assistance Review (FAR) to focus on using National, State, and local government resources to build FAR concepts into assistance programs; consolidate administrative and operational procedures for reducing program processing time; establish a model system to validate the delivery of domestic assistance programs to their recipients in accord with the New Federalism concepts; and increase reliance on State agencies by assisting them to improve the management of formula grant programs and by preparing them for greater management responsibility under revenue sharing.

An increase of three positions is requested in FY 1974 for the Office of Management Planning and Technology to assist in developing management control systems essential to carry out procedures based on enacted legislation (especially HR-1) and to assist in implementing policy development and implementation in the Office of the Secretary. In addition, this office has been assigned the task of coordinating the statistical activities of the Department.

Personnel Administration, Training and Career Development

FY 1973 Accomplishments

An

Progress was made in upgrading career development within the Department. in-house selection process, administrative structure and counseling program were established for the Management Intern Program. A Junior Fellowships Program was initiated, and the Summer Employment Program was firmly established. The Office of Upward Mobility expanded and refined its programs. Implemented in FY 1972, the program is designed to impact on all individual and organizational impediments to the upward movement of capable, low-grade employees. The program offers, through the Upward Mobility College, educational opportunity leading to an AA or BA degree, and it offers a combination of on-the-job training and academic preparation for professional target positions. A career counseling service and an effort to restructure jobs to create bridge positions between lower and higher levels, have been undertaken. FY 1973 accomplishments include expansion of program beneficiaries from 2,660 in FY 1973 to an estimated 6,230 in FY 1973 and expansion of relevant activities to the regions. Job restructuring activities involving review of 7,000 positions were undertaken resulting in 1,050 restructured jobs and 850 placements. Based on a critical analysis of the Department's management of its executive manpower, the Executive Manpower and Development Division developed systematic executive recruitment planning and search, instituted a Department-wide study of executive development needs, and established an Executive Development Branch.

Employee health and welfare and Departmental labor relations benefitted from several activities. Department policies and objectives were published for the Employee Occupational Health Program, and special provision was made to deal with employee alcoholism. A policy statement on employee welfare, support for open housing, and adherence to requirements of E.0. 11512 concerning availability of adequate housing for employees at the sites of Department facilities, was issued. The Office of Labor Relations developed and distributed two handbooks and two training modules on labor relations which will contribute to the development of an improved cadre of local labor relations officers and management officials.

Program Plans FY 1974 An increase of 8 positions is requested for the Office of Personnel and Training to support the improvement of personnel management and administration within the Department. The increase would provide 5 positions for the Personnel Operations and Evaluation Division to effectively implement management and first line supervisory career development and career management programs and to provide services to Departmental employees in such areas as alcohol and drug abuse. An increase of 2 positions for the Executive Manpower and Development Division would be utilized to assist in completing a formal Department-wide executive review and succession planning cycle, to develop and improve an expanded skills inventory system and to establish a system of individual development planning for GS-16's and above. The increase also would provide one position for the Labor Relations Branch to continue implementation of Department responsibilities under the Federal LaborManagement relations program, with particular emphasis on systematic approaches to negotiations and labor relations training.

The evaluation and technical assistance staff will continue to work with agencies and regions on decentralization. Career development will continue to be emphasized to carry out the Secretary's decision to implement the Perkins report which relates to the long range needs for special talents within the health agencies and for providing meaningful careers for the health professional. A nationwide full scale independent evaluation of upward mobility program components will be conducted. Employee housing services based on the success of a pilot program will be expanded, and development of appropriate guidelines for implementing the employee drug abuse program will be completed.

Equal Opportunity - FY 1973 Accomplishments

The Office of Equal Employment Opportunity conducted the first annual HEW-wide conference of headquarters and regional EEO officers and Federal Women's Program Coordinators in June 1972, to discuss program implementation and development. During the fourth quarter of FY-72 a full complement of EEO officers and FWP Coordinators in every operating agency and regional office was achieved. A Departmental affirmative action plan for 1973 was developed and is being evaluated by the Civil Service Commission. The Plan covers affirmative action for all women and minority males. Affirmative action plans for each of the ten regions are currently being developed and coordinated for submission to the Commission.

The Federal Women's Program, established in May 1972, organized this new program in seven agencies and ten regional offices. Affirmative action plans on behalf of women employees were upgraded, and a job information center was established for all agencies. Studies were conducted in minority-nonminority distribution of women, changes in grade distribution of women, training in restructured jobs for men and women, and job series distribution of men and women by grade level and agency for 1971 and 1972.

Under the direction of the Office of Minority Business Assistance, the Department honored its commitment to support the President's Minority Business Enterprise Program. The following table shows the Department's steady progress in the award of contracts to minorities under Section 8 (a) of the Small Business Act, and under direct procurements.

Program Plans FY 1974 An increase of one position for the Federal Women's Program is requested to provide additional staff support to meet Secretarial commitments and Civil Service Commission expectations and to assure responsiveness to individual constituents. The program will continue to monitor affirmative action plans in all aspects of women's employment, coordinate efforts for Women's Action Program with all agencies and regions and expand monitoring of aspects of women's employment to include regional data.

It is estimated that the Department will award approximately $38,000,000 in contracts to minority businesses in FY 1974 and this will include $18,000,000 by the SBA 8 (a) process. Six minority-owned concessions were opened in HEW facilities in FY 1973 and 3 others are in process. Desirable locations will continue to be evaluated in all HEW facilities. HEW deposits in minority-owned banks were increased from $1.9 million in FY 1971 to $19 million by December 1972, in 14 separate minority banking institutions, and it is estimated that in FY 1974 these deposits will be increased to $25 million.

General Administrative Services - FY 1973 Accomplishments

The Office of Internal Security completed facility self-protection planning and evaluation and implemented the new Executive Order on classification of national security information. The Office of New Careers published DHEW's first New Careers Compendium, a catalog of para-professional training programs funded by the Department. The Office of Safety Management implemented a program of safety and health standards review and compliance, and developed and implemented a Department-wide safety management information system. Major policy issuances by the Office of Procurement and Material resulted in: A cost avoidance in procurement staffing costs of $320,000 in FY-72 although DHEW procurements increased by $210 million; increasing competitively based contracts from 53% in FY-71 to 60% of all contracts in FY-72; and increased small business participation from $157 million in FY-71 to $176 million in FY-72.

Program Plans FY 1974 An increase of four positions is requested in Procurement and Material to provide additional emphasis in policy direction, administration, training, technical assistance and surveillance. Procurements in the Department have increased from $453 million in FY-70 to $725 million in FY-72. It is estimated that this growth will continue and exceed $1 billion within the next two years.

Facilities Engineering and Construction Agency

The Facilities Engineering and Construction Agency, through its 10 component Regional Engineering Offices, provides coordinated architectural/engineering services to contruction projects supported through HEW programs, and manages an inte

grated facilities engineering system for HEW-owned or operated real property. current staff is 270 positions and an increase of 22 positions is requested for FY 1974.

Accomplishments FY 1972-73

The

FECA has continued to promote the use of advanced design and construction technology including comprehensive planning, systems building, construction management with phased design and construction, and value analysis. These techniques have been adopted by administrators and professional personnel for HEW-assisted facilities, resulting in total cost avoidances of an estimated $73 million in FY 1972 and based on current trends, $125 million in FY 1973.

Development of two management systems within FECA has continued. A computerized Management Information System applicable to HEW-assisted design and construction projects totaling almost $10 billion has enabled FECA to realize increased benefits in terms of project management and evaluation of regional workload, staffing, and performance. Substantial progress was also made in the development and implementation of HEW's Facilities Engineering Automated Management System, which furnished comprehensive inventory data on all HEW installations and a facilities cost accounting system.

Two major direct Federal projects have made notable efforts in applying current design and construction state-of-the-art to facility procurement. A major innovation for design and construction of five Indian Health Service hospitals was developed, with benefits in terms of time savings and potential cost savings. A unified project to provide 1.8 million square feet of office for SSA payment centers in Philadelphia, Chicago, and San Francisco advanced to site selection and receipt of bids.

Other noteworthy accomplishments include a fire research project contracted to the National Bureau of Standards by HEW; delegation of certain compliance responsibilities to State Hill-Burton agencies having sufficient expertise, in order to free HEW engineers and architects for other professional activities; development of guides on minimum criteria for life-safety design of educational facilities; preparation of guidelines for applicants on the design/construction management concept; development of streamlined procedures for acquistion of space needed in implementing HR-1 legislation, in conjunction with SSA and GSA; and promotion of minority contracting firms to bring awards totaling $4 million to such contractors.

Program Plans FY 1974

An increase of 22 positions and $1,000,000 in special project funds is requested. Twenty new positions would implement the National Environmental Policy Act, which requires each Federal agency to consider the consequence of its actions which significantly affect the quality of human environment. The positions would provide technical advisory capability on environmental matters to the regional offices and HEW agencies. An increase of 2 positions in real property would implement new legislation (P.L. 92-313) requiring that space allocations to each agency program be specifically identified for funding purposes. The positions would be used for facility surveys to assure that assignment records are accurate and that the new billing process for assigned space established under P.L. 92-313 is correct. Management efforts will be intensified to assure that the Department's space assigned by GSA is properly utilized and that it is adequate for the required purpose. A larger than normal acquisition workload will be supported during FY 1974, since SSA space needs anticipate a staffing increase of 6500 employees from HR-1 implementation. The $1,000,000 increase would purchase furnishings and equipment which require long lead time for delivery, in order to permit occupancy of the South Portal Building upon its completion in May 1975 by 2,100 Office of the Secretary personnel. The purpose of the building is to provide a quality working environment and to provide expansion space for the Department in accordance with the approved DHEW longrange housing plan for the Southwest Mall area. A "Deep Look" facilities condition survey of all HEW facilities will be continued, in order to identify deficiencies and estimate costs of corrective measures. The Facilities Engineering Automated Management System will be completed and become fully operational during FY 1974.

Office of Surplus Property Utilization

The Office of Surplus Property Utilization administers a program to utilize Federal surplus property for health and educational purposes. The major responsibilities are allocating surplus personal property to State agencies for distribution to eligible donees and conveying available surplus real property to eligible applicants. The current staff is 102 positions. No new positions are requested for FY 1974.

Personal Property Program FY 1972-73 Accomplishments

FY 1972 Operations Personal property with an original acquisition cost of $407,700,000 was located during the year and made potentially available for donation. Of this total, $405,100,000 was allocated to State agencies for distribution to eligible donees. These amounts are 3.6% and 4.9% respectively, above the FY 1971 level. During FY 1972, 1356 aircraft were screended for potential donation. Of this number, 325 were allocated and approved for donation at an acquisition cost of $40.3 million. This was an increase of 224 aircraft donated over FY 1971. The value of property returned to the United States from Europe and Southeast Asia areas was $11,017,000. This represents a decrease of $1,235,000 during FY 1972. Accordingly, the increase in donations during FY 1972 was the result of increased generations of property located at domestic installations.

During FY 1972, audits and reviews of 28 State agencies were processed. Compliance and utilization activities resulted in the collection of $311,967 for deposit in the Treasury. These collections represent the proceeds of the sale of property which was not utilized by the donee, property which State agencies found to be unsuitable and/or unneeded for distribution to donees, as well as the proceeds arising from compliance program activities.

FY 1973 Operations - Assuming that the Department's July 14 directive terminating the eligibility of grantees to acquire excess property, and that the GSA/OMB proposed rule making to terminate similar eligibility of grantees governmentwide will be continued in force, it is estimated that surplus personal property located in FY 1973 will reach a total of $455.0 million, an increase of $47.3 million over FY 1972. Based on the same assumptions, property allocated to State agencies for donation is estimated to increase by $44.9 million to a total of $450.0 million. In the event the position taken by OMB and the Department is modified to permit grantees again to acquire excess property by loan from the Federal Government, the amount of property becoming surplus and available for donation will decrease.

Forty-two audit and review actions of State agencies are planned for FY 1973. Income from compliance and surveillance activities is estimated at $400,000 for FY 1973. The return of property no longer needed by DOD installations in Europe and Southeast Asia is expected to increase by $2 million during FY 1973 to a total of $13 million.

Program Plans FY 1974 Assuming that the excess grantee problem will have been satisfactorily resolved and that military operations in Southeast Asia will have ended, it is anticipated that personal property with an original acquisition cost of $503.0 million will be located during FY 1974. Property allocated to State agencies for donation to eligible donees during FY 1974 is anticipated to increase by $5.0 million to a total of $500.0 million.

Forty-six audit and review actions are planned for FY 1974. Income from compliance and surveillance activities is estimated to increase to $500,000 for FY 1974. The return of property from Europe and Southeast Asia is estimated to increase to a total of $15 million in FY 1974. This represents an increase of $2 million which is anticipated to result from the closeout of military operations in Southeast Asia.