(2) Outleasing-This should include restrictive or safety land areas wherein agricultural or other usage will not interfere with the use for which held by the department. Provisions shall be made in all outleases of Government-owned property requiring that prior approval of the controlling military department must be secured before subleasing any part of the property for direct or indirect use by another Federal Government agency.

NOTE. As to (1) and (2) above, provision for adequate maintenance will be included.

(3) By declaring it to General Services Administration as excess real property for disposal subject to adequate provisions for recapture of use in accordance with existing regulations, instructions and statutes.

b. The release of recapture rights retained by the Government may be effected in response to a petition if there is no current or mobilization requirement therefor by any of the military departments. The military departments shall review plans covering contemplated future or mobilization use of the facility in light of the current physical condition of the improvements, extent of deterioration and anticipated acceleration thereof.

c. In consideration of possible changes in mobilization requirements, disposal of excess buildings and improvements located on nonexcess land will not be undertaken where such improvements are structurally sound, are adaptable to normal operational use, will require only nominal maintenance and the physical location thereof will not interfere with approved new construction, unless such improvements are movable and are required to satisfy a current requirement of a military department.

d. Immediately upon determination that a leasehold will become excess to the needs of a military department, that department will forthwith send notice of availability to the appropriate offices of the other military departments (see paragraph V B 1 (b)) including a physical description of the property, terms of lease, date possession can be surrendered and date that renewal of the contract must be exercised. Notices of availability shall be scrutinized by the receiving department to determine if pending requirements can be satisfied by assuming "the excess leasehold or an economic saving can be realized by cancelling an existing lease and moving into the excess space. It will be the responsibility of the Military Department having an interest in the acquisition of such excess space to continue the leasehold interest.

VI. UNIFORMITY

Subsequent to the enactment of laws concerning real estate actions that apply equally to the three military departments, the Assistant Secretary of Defense (Properties and Installations) will designate one of the military departments to develop and coordinate uniform implementation for approval by the Office, Secretary of Defense.

VII. IMPLEMENTATION

Written implementation of the policies contained in this directive shall be effected within sixty days subsequent to the effective date hereof and copies shall be furnished the Assistant Secretary of Defense (Properties and Installations).

VIII. EFFECTIVE DATE

This directive is effective on the date of issue.

(Signed) REUBEN B. ROBERTSON, Jr., Deputy Secretary of Defense.

Number 4275.4.
OCTOBER 6, 1956.

DEPARTMENT OF DEFENSE INSTRUCTION OASD (P. & I.)

Subject: Industrial Facilities Funded from Procurement and Production Appropriations.

References:

(a) DOD Directive 4275.2 "Industrial Facilities Funded from Procure

ment and Production Appropriations," dated October 6, 1956.

(b) DOD Directive 4215.9, Para VII A 1, dated February 2, 1956.

I. AUTHORITY AND PURPOSE

This instruction is issued pursuant to and in amplification of Reference (a). It provides procedures for the submission of industrial facility expansion projects as required by Reference (a) III D (c).

II. SCOPE AND APPLICABILITY

This Instruction covers all industrial facility expansion projects estimated to cost $1 million or more which the military departments propose to acquire, expand, construct, rehabilitate, or improve.

III. IMPLEMENTATION

A. An on-site inspection may be necessary by personnel of the Office of the Secretary of Defense when an expansion, major rehabilitation or improvement of existing Government owned industrial facilities is proposed. In order to facilitate the scheduling of such inspections and to avoid delay in the processing of projects, the following plan will be used:

The military departments are asked to supply this office with the following information at the earliest possible time:

(1) The estimated date when each project will be developed to a state where an inspection would be timely and meaningful;

(2) The relationship between such proposed improvements and the planned future mission of the facility;

(3) The general breakdown in dollars of each project for proposed land acquisition, building construction, purchase of tools and equipment, instrumentation for test facilities, etc.; and

(4) The estimated date when the project will be submitted to the Secretary of Defense for approval, and the name and telephone number of the departmental representative with whom arrangements for the inspection should be made.

B. When submitting projects for industrial facility expansions, acquisitions, construction, rehabilitation, and improvement as provided in reference (a), each military department shall be guided by the following:

(1) Submission may be made for an individual project, a group of projects, or an annual program;

(2) Six (6) copies of each submission shall be provided. Supplementary economic or engineering studies may be provided as deemed necessary or appropriate by the department concerned ;

(3) Each project submission shall contain a specific statement as to how the proposed acquisition complies with the policy contained in Reference (a), or, in the event it does not comply, an explanation showing the extent of such deviation and the reason therefor; and

(4) Each project justification should be designed to present a clear understanding of the need for the facility, its cost, and other essential elements, such as its relation, if applicable, to established long-term planned requirements in a particular field.

Appendix A provides a guide or checklist of information required for Office of the Secretary of Defense review.

IV. REPORT CONTROL SYMBOL

Report Exemption Symbol DD-P & I (EX) 33 has been assigned to the reporting requirements of this instruction.

V. EFFECTIVE DATE

This instruction shall become effective 60 days after date of issue.

(Signed) FLOYD S. BRYANT,
Assistant Secretary of Defense

(Properties and Installations).

APPENDIX A. CHECKLIST OF INFORMATION REQUIRED FOR OSD REVIEW OF
INDUSTRIAL FACILITIES PROPOSALS

It is suggested that the following format be used in submittals of proposed facility acquisitions, expansions, construction, rehabilitations, and improvements: 1. The name of the prime contractor and the name of subcontractors, if any. 2. The nature and location of the proposed facility.

3. The end item which will be produced in the proposed facility.

4. Basis of need:

a. Reference to approved programs or T/O and E's from which need for facilities directly arises:

(1) Relationship of this project, including phasing, to the other elements of the same overall weapons systems program.

b. With reference to end items:

(1) Specify phase, whether R. & D., test model, or production for inventory; (2) If for production for inventory:

(a) The total number and cost of items to be produced;

(b) Present production rates for this end item;

(c) Maximum rates that can be produced with current facilities;

(d) Maximum planned rate, including the present and expanded facilities; (e) Estimated mobilization production rate of facility;

(f) If a new item, has decision to produce for inventory been made and approved, and, if not, what is the basis for facilities requirement at this time; (g) What part of the expanded capacity will be used by other Services, what Services, and for what specific items; and

(h) Number of hours per week the expanded facilities will be operated. c. With respect to facilities:

(1) To what extent do facilities anticipate future technical developments; (2) State advantage of the proposed geographic location at this facility; (3) Does the proposal constitute a complete facility? If not, what elements are not included herein, and how will they be provided?

5. Screening of existing facilities.

a. Has list of idle reserve plans of all three departments been screened? Identify and give brief justification for rejection of facilities which have prima facie suitability;

b. Have production equipment inventories been screened (Reference (b)); c. Can production be effected adequately in Government-owned Governmentoperated facilities, for example, arsenals, shipyards, or rehabilitated facilities, except for production for inventory;

d. Possibility of accommodating additional production through double-shifting operations; and

e. With respect to R. & D. test facilities, are Government-owned facilities available, and, if so, why are they not being utilized?

6. The estimated cost, and indication of method of computation for each category, showing a total for each of the following categories.

(1) Land and land improvements.

(2) Buildings, structures, additions, alterations.

(3) Machinery and equipment, portable tools, and materials-handling equipment, instrumentations, and special equipment.

(4) Installation costs of equipment.

(5) Indirect costs.

(6) Grand total.

7. Funding requirements.

a. What are the funding requirements for?

(1) Current year.

(2) Future years, with estimated amounts per year for total project.

b. Source of funds for a, above.

Number 4165.12.
DECEMBER 7, 1956.

DEPARTMENT OF DEFENSE INSTRUCTION ASD (P. & I.)

Subject: Prior Approval for Real Property Actions.

Ref.: (a) DOD Instruction 4165.12, subject as above, March 8, 1954.

I. REISSUANCE AND PURPOSE

This instruction is a reissue of Reference (a), with amendments indicated by marginal asterisks. It establishes uniform procedures for obtaining prior approval from the Office, Assistant Secretary of Defense (Properties and Installations) for the acquisition and disposal of real property.

II. CANCELLATION

Reference (a) is hereby superseded and cancelled.

III. EXCEPTIONS

This instruction does not apply to real-property actions pertaining to river and harbor and flood-control projects (Civil Works under jurisdiction of the Secretary of the Army) or to real property actions included in Paragraph III, B, of DOD Directive 4000.8, November 17, 1952.

IV. SCOPE AND APPLICABILITY

A. The following subparagraphs of this section apply to real-property actions in areas of the United States, Alaska, Hawaii, Commonwealth of Puerto Rico, and the Virgin Islands:

B. Subparagraph 2, hereof, is also applicable to real-property action outside the aforementioned areas in instances where the proposed lease is for a firm term in excess of one year:

1. Acquisition of real property in fee or easement for an amount estimated to be in excess of $25,000.

2. Acquisition by lease of real property for an annual rental estimated to be in excess of $25,000 (including all lease renewals, e. g., automatic and by notice). This includes all leases to be acquired for military use, whether by contract, condemnation proceedings, General Services Administration, or other

means.

3. Lease of Government-owned real property for estimated annual rental receipts in excess of $25,000.

4. Disposal or report to a disposal agency of excess Government-owned land and/or improvements with an estimated value in excess of $25,000.

5. Transfer of Government-owned real property with an estimated value in excess of $25,000, except transfer of such real property within a military department.

6. Acquisition of use rights in and to any acreage of the Public Domain, through application for permanent or temporary withdrawal to the Department of the Interior or application to that or any other Government agency for use under authority of permit or license, (1) having in excess of 500 acres, regardless of estimated current value, or (2) having an estimated current value in excess of $25,000, regardless of number of acres involved.

NOTE. In those cases where individual real property actions are to be made as part of a real property project involving a total estimated value or cost in excess of the amounts set forth in 1, 2, 3, 4, and 5, above, then details of the entire project shall accompany a request for approval of the individual real property action.

V. PROCEDURE

A. Each real property action included in section IV will be submitted to the Office, Assistant Secretary of Defense (Properties and Installations), for approval before committing the Government to acquire, lease, or dispose of such property. The request for approval will include the material facts used by the military department concerned in determining the need for such real property action, together with the area, location, using agency, and estimated cost, rental, or value, as appropriate. In addition, the latest utilization report will be submitted for each lease renewal, and a real estate planning report, based on sound engineering and appraisal principles, prepared by qualified personnel, will be submitted for the acquisition of real property in fee or easement for an amount estimated to be in excess of $25,000.

B. All cases requiring approval of the Armed Services Committees pursuant to Section 601, Public Law 155, 82nd Congress, approved 28 September 1951, will include the project sheet in the form it will be submitted to the Committees,

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after approval by the Assistant Secretary of Defense (Properties and Installations). Upon submission of a project sheet to the Committees, the Office of the Assistant Secretary of Defense (P. & I.) will be furnished a numbered and dated copy of such project sheet. No real property action will be submitted to the Committees without the approval of the Office of the Assistant Secretary of Defense (P. & I.).

VI. EFFECTIVE DATE

This instruction is effective immediately.

(Signed) FLOYD S. BRYANT, Assistant Secretary of Defense (Properties and Installations). Secretary BRYANT. This concludes my statement, Mr. Chairman. Of course, I hold myself at your disposal for whatever time or period you wish.

Mr. HÉBERT. Of course, Mr. Bryant, you have outlined the general policy, and the services will specify the details that you have requested

Mr. HESS. No questions.
Mr. HÉBERT. Mr. Bates?
Mr. BATES. No.

Mr. HÉBERT. Mr. Osmers?

Mr. OSMERS. No questions.

Mr. HÉBERT. Mr. Lankford?

Mr. LANKFORD. I would, Mr. Chairman, if I may.

Mr. Bryant, in this statement which you made, which I found very interesting, you talked more about the acquisition of new facilities by the Defense Department.

Secretary BRYANT. Yes, sir.

Mr. LANKFORD. What procedures are used by the Defense Department to insure that existing facilities are used to their fullest practical extent?

Secretary BRYANT. Well, perhaps I didn't do this as well as I had intended, Mr. Lankford, because that was the very purpose of referring to the instructions and the Department of Defense issuances to which I referred. I took the position that the best way to insure that the coverage was provided, that I thought the committee wanted, was to point out the extremities to which we are committed, at least, to review existing facilities before indulging in the acquisition of any new facilities. I think it is the same thing. Perhaps the emphasis is a little different than you had in mind.

Mr. LANKFORD. No. I agree that, under these directives, it seems to me you have taken every logical step to insure that no new facility will be acquired if there is an existing facility which can fulfill that need. However, what I am getting at is what steps do you take to insure that the existing facilities, some of which are working at a reduced rate, are utilized to their fullest economical extent?

Secretary BRYANT. By much the same process. In other words, I would assume that the only method by which they could be increased in their usefulness would be to look for something which is a new requirement that could be added to or used for the purpose of expanding that facility.

Mr. LANKFORD. Maybe I could make myself a little clearer by putting it in this way.