Schedule of the Classification Act of 1949, as may be necessary to provide for the performance of such duties as may be prescribed by the Board in connection with the exercise of its powers and functions under this Act. Each appointment under this subsection shall be subject to the same security requirements as those required for personnel of the Foundation appointed under section 14(a).

(i) The Board is authorized to establish such special commissions as it may from time to time deem necessary for the purposes of this Act.

"(j) The Board is also authorized to appoint from among its members such committees as it deems necessary, and to assign to committees so appointed such survey and advisory functions as the Board deems appropriate to assist it in exercising its powers and functions under this Act."

SEC. 3. Section 5 of the National Science Foundation Act of 1950 is amended to read as follows:

"DIRECTOR OF THE FOUNDATION

"SEC. 5. (a) The Director of the Foundation (referred to in this Act as the 'Director') shall be appointed by the President, by and with the advice and consent of the Senate. Before any person is appointed as Director, the President shall afford the Board an opportunity to make recommendations to him with respect to such appointment. The Director shall receive compensation at the rate provided for level II of the Federal Executive Salary Schedule and shall serve for a term of six years unless sooner removed by the President.

"(b) Except as otherwise specifically provided in this Act (1) the Director shall exercise all of the authority granted to the Foundation by this Act (including any powers and functions which may be delegated to him by the Board, and (2) all actions taken by the Director pursuant to the provisions of this Act (or pursuant to the terms of a delegation from the Board) shall be final and binding upon the Foundation.

"(c) The Director may from time to time make such provisions as he deems appropriate authorizing the performance by any other officer, agency, or employee of the Foundation of any of his functions under this Act, including functions delegated to him by the Board; except that the Director may not redelegate policymaking functions delegated to him by the Board.

"(d) The Director shall not make any contract, grant, or other arrangement pursuant to section 11(e) without the prior approval of the Board if such contract, grant, or other arrangement involves a new program, or involves a total commitment of over $2,000,000, or over $500,000 in any one year, or a total commitment of such higher amount or amounts or subject to such other conditions as the Board in its discretion may determine and publish in the Federal Register.

"(e) The Director, in his capacity as ex officio member of the Board, shall, except with respect to compensation and tenure, be coordinated with the other members of the Board. He shall be a voting member of the Board and shall be eligible for election by the Board as Chairman or Vice Chairman of the Board." SEC. 4. The National Science Foundation Act of 1950 is further amended by striking out section 8, by redesignating sections 6 and 7 as sections 7 and 8, respectively, and by inserting after section 5 the following new section:

"DEPUTY DIRECTOR AND ASSISTANT DIRECTORS

"SEC. 6. (a) There shall be a Deputy Director of the Foundation (referred to in this Act as the 'Deputy Director'), who shall be appointed by the President, by and with the advice and consent of the Senate. Before any person is appointed as Deputy Director, the President shall afford the Board and the Director an opportunity to make recommendations to him with respect to such appointment. The Deputy Director shall receive compensation at the rate provided for level III of the Federal Executive Salary Schedule and shall perform such duties and exercise such powers as the Director may prescribe. The Deputy Director shall act for, and exercise the powers of, the Director during the absence or disability of the Director or in the event of a vacancy in the office of Director.

"(b) There shall be four Assistant Directors of the Foundation (each referred to in this Act as an 'Assistant Director'), who shall be appointed by the President, by and with the advice and consent of the Senate. Before any person is appointed as an Assistant Director, the President shall afford the Board and the Director an opportunity to make recommendations to him with respect to such appointment. Each Assistant Director shall receive compensation at the rate provided for level V of the Federal Executive Salary Schedule and shall perform such duties and exercise such powers as the Director may prescribe."

SEC. 5. The section of the National Science Foundation Act of 1950 redesignated as section 7 by section 4 of this Act is amended to read as follows:

"EXECUTIVE COMMITTEE

"SEC. 7. (a) There shall be an Executive Committee of the Board (referred to in this Act as the 'Executive Committee'), which shall be composed of five members and shall exercise such powers and functions as may be delegated to it by the Board. Four of the members shall be elected as provided in subsection (b), and the Director ex officio shall be the fifth member and the chairman of the Executive Committee.

"(b) At each of its annual meetings the Board shall elect two of its members as members of the Executive Committee, and the Executive Committee members so elected shall hold office for two years from the date of their election. Any person, other than the Director, who has been a member of the Executive Committee for six consecutive years shall thereafter be ineligible for service as a member thereof during the two-year period following the expiration of such sixth year. For the purposes of this subsection, the period between any two consecutive annual meetings of the Board shall be deemed to be one year.

"(c) Any person elected as a member of the Executive Committee to fill a vacancy occurring prior to the expiration of the term for which his predecessor was elected shall be elected for the remainder of such term.

"(d) The Executive Committee shall render an annual report to the Board, and such other reports as it may deem necessary, summarizing its activities and making such recommendations as it may deem appropriate. Minority views and recommendations, if any, of members of the Executive Committee shall be included in such reports."

SEC. 6. The section of the National Science Foundation Act of 1950 redesignated as section 8 by section 4 of this Act is amended to read as follows:

"DIVISIONS WITHIN THE FOUNDATION

"SEC. 8. There shall be within the Foundation such divisions as the Board may from time to time, after receiving recommendations from the Director, deem necessary."

SEC. 7. Section 9(a) of the National Science Foundation Act of 1950 is amended by striking out "section 3(a) (7)" and inserting in lieu thereof "section 4(i)". SEC. 8. Section 10 of the National Science Foundation Act of 1950 is amended(1) by striking out "section 17" and inserting in lieu thereof "section 16”; and

(2) by inserting "social," after "engineering,".

SEC. 9. Section 11(c) of the National Science Foundation Act of 1950 is amended

(1) by striking out "basic";

(2) by inserting "Secretary of State or" before "Secretary of Defense"; and (3) by striking out "the national defense" and inserting in lieu thereof "international cooperation or national security".

SEC. 10. Section 13(a) of the National Science Foundation Act of 1950 is amended

(1) by striking out", with the approval of the Board,"; and

(2) by striking out "section 16(d) (2)" and inserting in lieu thereof "section 15(d) (2)".

SEC. 11. Section 14 of the National Science Foundation Act of 1950 is repealed. SEC. 12. (a) Section 15 of the National Science Foundation Act of 1950 is redesignated as section 14, and subsection (a) of such section as so redesignated is amended by striking out "Such appointments" and inserting in lieu thereof "Except as provided in section 4(h), such appointments".

(b) Subsection (a) of such section as so redesignated is further amended by striking out the last two sentences and inserting in lieu thereof the following: "The members of the special commissions shall be appointed without regard to the civil service laws or regulations."

(c) Subsection (b) of such section as so redesignated is amended to read as follows:

"(b) Neither the Director, the Deputy Director, nor any Assistant Director shall engage in any other business, vocation, or employment while serving in such position; nor shall the Director, the Deputy Director, or any Assistant Director, except with the approval of the Board, hold any office in, or act in any capacity for, any organization, agency, or institution with which the Foundation makes any grant, contract, or other arrangement under this Act."

(d) Subsection (d) of such section as so redesignated is amended

(1) by striking out "divisional committee, or special commission," and inserting in lieu thereof "special commission"; and

(2) by striking out "$50" and inserting in lieu thereof "$100”.

(e) Subsection (e) of such section as so redesignated is amended by striking out "divisional committees and".

(f) Subsection (f) of such section as so redesignated is amended by striking out", of a divisional committee,”.

SEC. 13. Sections 16 and 17 of the National Science Foundation Act of 1950 are redesignated as sections 15 and 16, respectively, and subsection (b) of the section so redesignated as section 15 is amended by striking out "section 15(h)” in paragraph (1) and inserting in lieu thereof "section 14(h)".

SEC. 14. (a) (1) Section 303(b) of the Federal Executive Salary Act of 1964 is amended by adding at the end thereof the following new paragraph:

"(20) Director of the National Science Foundation."

(2) Section 303(c) of such Act is amended by striking out paragraph (41), and by adding at the end thereof the following new paragraph:

"(47) Deputy Director, National Science Foundation."

(3) Section 303 (e) of such Act is amended by striking out paragraph (66), and by adding at the end thereof the following new paragraph:

"(100) Assistant Directors, National Science Foundation (4)."

(4) The amendments made by this subsection (and the amendments made by sections 3 and 4 of this Act insofar as they relate to rate of compensation) shall take effect on the first day of the first calendar month which begins on or after the date of the enactment of this Act.

(b) Section 902(c) of the National Defense Education Act of 1958 is amended by striking out "$50" and inserting in lieu thereof "$100".

SEC. 15. Except as otherwise specifically provided therein, the amendments made by this Act are intended to continue in effect under the National Science Foundation Act of 1950 the existing offices, procedures, and organization of the National Science Foundation as provided by such Act, part II of Reorganization Plan Numbered 2 of 1962, and Reorganization Plan Numbered 5 of 1965. From and after the date of the enactment of this Act, part II of Reorganization Plan Numbered 2 of 1962, and Reorganization Plan Numbered 5 of 1965, shall be of no force or effect; but nothing in this Act shall alter or affect any transfers of functions made by part I of such Reorganization Plan Numbered 2 of 1962.

STATEMENT OF DR. LELAND J. HAWORTH, DIRECTOR, NATIONAL SCIENCE FOUNDATION

Dr. HAWORTH. Thank you, Mr. Chairman.

Mr. Chairman, members of the subcommittee, I am happy to have the opportunity to speak to you this morning.

First let me say that the entire National Science Foundation-the National Science Board, the Director, and the staff-is highly appreciative of the intensive efforts and the considered thought that the committee has given for more than a year to the Foundation, its objectives, its problems, the manner in which it works and the statute under which it operates. These have already borne fruit in many ways, including the bill that lies before the Congress, the wisdom and the ideas that you have imparted to the Foundation through our many contacts, and the stimulation that has been provided to us to clarify our thinking and try to improve our operations. We are very grateful to you.

With your permission, Mr. Chairman, I would like, at this point, to read my comments on H.R. 13696. This will probably take 25 or 30 minutes. Having read this document, I would then be happy, of course, to discuss further any of the items covered or any other matters on which the committee might wish to question me. And, from this point, Mr. Chairman, the document will largely follow the letter that I have already forwarded to you.

In general, I heartily endorse most of the provisions of the bill, the enactment of which will, I believe, greatly facilitate the effective operation of the Foundation and permit it to play a larger role in the development of our country. There are, however, some specific provisions in the bill with respect to which I particularly wish to state my views and in some cases to express reservations or suggestions. These observations follow, in general, the order in which the provisions appear in the bill.

First, I strongly support the proposed amendment of section 3(a) (1) to formally add the social sciences to the list of the specific sciences which the Foundation is authorized and directed to support.

Although the Foundation has for some years conducted limited but growing programs in support of certain aspects of the social sciences, it is widely felt that the time has come for these sciences to receive expanded attention from the Foundation. It is fitting that the social sciences should now be recognized by that name in the act itself rather than receive support anonymously as an "other science."

This greater visibility should emphasize the efforts of the Foundation to stimulate and support increased research and improved education in the social sciences in order to help them play an increasingly important role in coping with some of the major problems facing society today.

Second, I welcome the proposed revision of section 3(a)(2) which would broaden the Foundation's authority to participate in international scientific activities. I suggest, however, that the section be changed to include not only scientific research abroad, but also activities designed to strengthen science education, such as appropriately modified course content or curriculum development programs, at the request of the Secretary of State. This could be done by deleting the word "research" on line 8 of page 2 of the bill and substituting the word "activities" for the word "research" on line 12 of the same page. In addition, I believe that the Foundation should be free to decide itself whether it should undertake an activity which might be requested under this section. I would suggest, therefore, that in place of the phrase "at the request of" on line 6 there be substituted the phrase "at the discretion of the Foundation when requested by", the Secretary of Defense, or the Secretary of State, and so on.

Section 3(a) (2) would then read as follows:

at the discretion of the Foundation when requested by the Secretary of State or the Secretary of Defense, to initiate and support specific scientific activities in connection with matters relating to international cooperation or national security by making contracts or other arrangements (including grants, loans, and other forms of assistance) for the conduct of such scientific activities;

Third, while endorsing the general purposes of proposed section 3(a) (7) I have some reservations with respect to those of its provisions which would require the Foundation to maintain a program for the determination of the total amount of money spent for research, including construction of facilities, by each educational institution, nonprofit organization, and private contractor in the United States. I believe that so comprehensive a survey offers almost insurmountable difficulties. While I assume that the language is not intended to apply to funds made available to subcontractors for research, which would be almost impossible ascertainment, nevertheless, the identification of the amount of funds made available for research under procurement

contracts with industry appears to be beyond present capabilities. This would also be true with respect to funds made available to certain nonprofit organizations.

Mr. DADDARIO. Dr. Haworth, on that point do you believe we could overcome your objection if language were to be included which would make it mandatory on the part of the agencies involved to supply you with the necessary information, or do you carry this reservation to their ability as well as to ours?

Dr. HAWORTH. Mr. Chairman, we are informed by some that there are severe difficulties, if one takes this at all literally. One of these is that procurement contracts, by the Department of Defense and by AEC, for example, carry with them in most instances a sort of a research overhead, if I may use that phrase, that the company is allowed to use for company-sponsored research. Where that money is finally used is hard to find out. It doesn't sound like much, a few percent, but procurement contracts are often enormous contracts. Since the money gets all mixed up with other funds that the company has, both of its own and from other contracts, it would be very difficult to trace its ultimate use.

Now, I wouldn't say it couldn't be done. It would have to be done in retrospect rather than at the time of issuance of the contract, and it might well be that it would have to be done by surveying the companies themselves rather than the agencies, which again could be done, but it would be a massive thing, and, quite frankly, I question whether it would be worth the effort.

Now, this depends, of course, on interpretation of this section, how literally one interprets it, how accurate one tries to be and things of that sort.

As I will say a little later on that if this section were modified, as we suggest, we would expect to experiment and look into how we might do this sort of thing.

But, to have it be a legal requirement without more knowledge than we have now, we are somewhat dubious about.

Mr. CONABLE. Mr. Chairman?

Mr. DADDARIO. Mr. Conable?

Mr. CONABLE. Were you suggesting it be mandated on also by these reports? You talked about these agencies when you said should we mandate reporting.

Mr. DADDARIO. We are seeking, Mr. Conable, to establish a formula so that there will be made available to us, to the Congress, more information on this subject than there has been. Dr. Haworth shows his concern, not as to the direction we move, but as to whether we are imposing a requirement which would be "impossible" to accomplish or if accomplished would not be as meaningful as the effort would require.

Dr. HAWORTH. That's really what I am trying to say, Mr. Chairman, and I would point out another thing.

As I said here, we assume that it was not your intention to have us follow this into second- and third-tier subcontracts, but in terms of what I believe your interest is, the dispersal among business organizations, both from the standpoint of the individual organizations and the areas of the country that are affected and so forth, those subcontracts and sub-subcontracts can well be a good deal more important than some of the direct use that the company itself makes.