declared as excess and for which you have not been given the authority to declare excess? Colonel LEE. We think we do have but we cannot make that determination ourselves, as we have no authority to do so. Higher headquarters have to determine the excess items for us. Mr. HOLIFIELD. You are helpless. Colonel LEE. We have no authority. We report it to the prime depot. Mr. RIEHLMAN. You know what you have here and that is always reported to the prime depot? The responsibility lies with the prime depot whether or not that is declared excess? Mr. LANE. Do you have difficulty in getting material declared? Colonel LEE. I don't know whether our system has been in operation long enough, but there is an effort being made to report those known excesses, and the prime depot gets at them as rapidly as possible. Mr. HOLIFIELD. Let me ask you a specific question. From the standpoint of your actual knowledge in walking through warehouses, do you have knowledge of the fact that there are large stocks of supplies which you have reported to be in excess, but for which you have not received any orders of any kind. Colonel LEE. We have stocks we have not used for some time, but when we request disposition on a certain item it sometimes turns out that it is required in the war reserve plan. Mr. RIEHLMAN. As I understand it, Colonel, (This is important as far as your depot is concerned), you have no authority to recommend that certain portions of materials are excessive. It is the responsibility of the prime depot. As commanding officer it would not be out of line for you to make a notation on it to say to the prime depot that this is excess and should be moved off of the base. Colonel LEE. We are making a special effort on requests of disposition on certain items. Mr. RIEHLMAN. If the commanding officer felt there were any items excess, when the new program is under way he would undertake to alert the prime depot with this information. They are in the process of informing the other depots that is what is under way. I am not taking the sides of the services. When the Korean conflict started, everything was held in abeyance. We are in a period of tension at the present time. Now, we are beginning to relax the stringent regulations and see the great need for really cleaning house. All of the services have their programs. The only high point we can clarify, this depot has it-we have seen a lot of it, and we have been upset about a lot of stuff we know is obsolete and standing in these depots a long time. It is at a standstill, but the time has arrived where this program should get under way and see some definite measures taken. We can I make that statement for your benefit, Mr. Holifield. assume then that the responsibility must be at a higher level than this base or a similar one, that the responsibility for moving this material and for determining that which is excess must be at the prime base. Mr. BALWAN. When we get to McClellan, they are a prime depot for several classes, and order other depots to do these things. At San Bernardino, which gives these people instructions as to what is available across the country, it will be a different picture. Mr. MORRIS. We do know that this base has no prime responsibilities for any items. Mr. HORTON. I would like to clear one point, Mr. Balwan, Cheli is no longer under San Bernardino after October 1. [Continuing presentation on Disposal Division functions:] They screen the excess property in the warehouses. Property then goes to Surplus Property Branch, who receive it and review the market prices, if scrap or waste, and determine what a good asking price is. Here at Cheli we not only use bidders' lists, we contact people who might. be interested by telephone, where there is a potential market. The Surplus Branch also implements the policy on sales. Mr. HOLIFIELD. Do you use different methods? Mr. HORTON. We will cover that in later charts. They classify and segregate property for highest value and merchandise it, which is important, that is, lay out the property so customers can see it in the best light. Mr. BALWAN. May I ask this? When we take a look at surplus property, can we go to the salvage yard and pick a certain item in your account; is that right? Mr. BUTLER. Yes, sir. Mr. BALWAN. Then suppose we pick 2 or 3 items and determine how long they have been on 120's and how long it was since you first received word you had to drop it from the inventory. That will give us an idea as to how long it takes for this end product to go through the processing. CHELI AIR FORCE DEPOT EXHIBIT No. 9 CHELI AF DEPOT PROJECT "SPRING CLEAN" CHELI TRANSFERS FROM ACCOUNT CODE I TO ACCOUNT CODE 7 SUCH ITEMS AS PRIME DEPOTS DETERMINE TO BE EXCESS TO CHELI AIR FORCE DEPOT EXHIBIT No. 10A P-400-Springclean-Preparation for sale or salvage of military property FISCAL YEAR 1953 Annual budget authorization (Feb. 15 to June 30, 1953) Obligations: Object class 01, pay of personnel. Object class 15, FICA____ Fiscal year 1953 unobligated balance__ Expenditures same as obligations. Civilian man-hours utilized: Graded___ Ungraded $55,000.00 55,000.00 $54, 650. 16 54,968. 35 31.65 Hours 14, 510 17, 064 AMC has advised that further funds are not available until received from USAF. Mr. HORTON (Continuing the presentation). Here we see an indication of the status of project Springclean. Cheli does not have any prime responsibility. We transfer from account code 1 to excess stock such items as are determined excess by the prime depot. We have been instructed to transfer 325 items under Springclean. To date we have transferred to account code 7, 286 of these items. There are 29 items yet to be transferred to account code 7 by the end of the month. Mr. BALWAN. 296 transferred are valued at $3 million? Mr. HOLIFIELD. Would you say that was a year's declaration? Mr. HORTON. The project started January or February of this year. Mr. HOLIFIELD. That was not made at one time? Those instructions have come in gradually during the year, or did they all come in at once? Mr. PORTER. Gradually. Mr. HOLIFIELD. It isn't a one-shot deal? Mr. PORTER. This is a result of a special program set up as the Colonel told you. This is the first time we have had this program since the Korean outbreak. Mr. BALWAN. It is a result of this program to a big degree. Mr. HOLIFIELD. I was trying to compute back, you actually have about 1 percent declaration of excess with your inventory, 342 million. You have about 1 percent declaration of excess on this base to date for the year? Why is that so small? Colonel BETZ. Perhaps I can clarify that, sir. The instructions for Springclean were mainly to clear out parts for World War II aircraft and other old material. This year's disposal program will include other military and commercial-type items. Mr. HOLIFIELD. This would be much greater. How much do you expect to realize in this new program? Colonel BETZ. I can't estimate, sir. It might go to as high as 10 percent at this depot. Many military and commercial items handled here will be affected. Mr. RIEHLMAN. Have you had any experience on other bases? Mr. MORRIS. Are you doing a computation or is that completed? gone over every year. Mr. HOLIFIELD. Then this original part of Springclean was handled on a different criteria? Colonel BETZ. Right, sir. Additional items will be disposed of this year. It is no longer a project Springclean but will become an annual disposal program for excess material. Mr. HOLIFIELD. Of the 342,000 total inventory here, how much is represented by aircraft parts? Colonel GREEN. I would estimate $1 million. Mr. HOLIFIELD. All right. What does this represent? Mr. PORTER. This represents items that project Springclean has affected. Clothing, 25B class, 43 packaging materials and even some in office areas. Mr. HOLIFIELD (to Colonel Betz). Then your observation doesn't apply. I want to know what this item means? Mr. PORTER. Special clothing, some of the old-type army clothing, tents, and office supplies and packaging material. Right, Colonel Betz? Colonel BETZ. This is all World War II obsolete items. Colonel LEE. I think when we go down to the warehouse where we are consolidating class 27 you will see the different items. Class 64 which is kitchen equipment for instance. Mr. HOLIFIELD. See where we are getting. As I understand it we have had testimony that this program which we had in the past was along the line of airplane parts and no program for the declaration of excess material. How did that occur? Mr. PORTER. Project Spring Clean was across-the-board cleaningup program. As far as aircraft is concerned that is an exception to the rule. As far as aircraft is concerned they only affected project Spring Clean on old-type aircraft. Now, I believe, what they are getting ready to do is on newer type aircraft where they find they have overstock. Colonel LEE. I think Colonel Betz should answer that question. Mr. RIEHLMAN. The situation is being confused. Apparently they are not using the same yardstick at all bases. We were told at Warner Robins that Spring Clean was for aircraft parts. If we can get it 41957--54. -39 clarified for the record-where the instructions came from, exactly what we have in excess, I think that will make it a little easier for me to understand. Colonel BETZ. Can we get copies of 67-11? (Copies obtained.) Mr. RIEHLMAN. I think we should go out and see what you actually have. We are being told two sides of the story. There is a conflicting view. We can see what they have and come back and clarify the testimony given previously. I don't want to confuse the issue, we want to clarify it. If we see what you have then we will be able to ask the questions. Mr. HOLIFIELD. Let's go ahead and see the rest of the charts. Let's look at the rest of them. CHELI AIR FORCE DEPOT EXHIBIT No. 11 Engine disposal program Cheli disposes of aircraft engines only as directed by higher headquarters. Engines on hand as of Nov. 1, 1952 Number shipped out Nov. 1, 1952, to Oct. 31, 1953- Current shipping orders (not shipped). CHELI AIR FORCE DEPOT EXHIBIT No. 12 Aircraft engines stored, by type and condition, Oct. 30, 1953 2,260 749 1, 511 109 Mr. HORTON. (continuing the presentation). In the engine disposal program at Cheli we dispose of aircraft engines as directed by the prime depot. We have on hand 1,511 and shipped 749, primarily to San Bernardino. We have 109 current shipment orders. Mr. HOLIFIELD. Is that for redistribution? Colonel LEE. It is for reclamation. For the parts which they take off of engines and then dispose of the rest as scrap. Mr. HOLIFIELD. It is a scrapping operation? Colonel LEE. It is reclamation of parts. They will take off the parts they will need. |