DEPARTMENT OF THE NAVY, BUREAU OF YARDS AND DOCKS, Washington 25, D. C., June 12, 1953. From: Chief, Bureau of Yards and Docks. Subject: Authorization for sale of used equipment for purposes of replacement under section 201 (c), Public Law 152, 81st Congress. Reference: (a) BUSANDA Manual, paragraphs 26190, 53229, and 71301. 1. The equipment listed on enclosure (1), has been screened in accordance with Department of Defense Directive No. 4160.1 of May 19, 1952, and authority is hereby granted to proceed with the sale of the equipment listed, under subject law. 2. Sale of this equipment and accounting procedure thereto shall be in accordance with instructions contained in reference (a). Proceeds of sale shall be credited to account 173/45690(70), deposits, proceeds of sale, personal property. 3. A report of all sales must be submitted to this Bureau as soon as completed in accordance with reference (a). To more completely identify this equipment, USN numbers have been assigned to all items not previously numbered and these numbers must be referenced on sales reports. Copy to: YDSO, Port Hueneme, Calif., w/enclosure. BUSANDA (SO), w/enclosure. DPWO 6ND, w/enclosure. NABSD Port Hueneme (Code 344), w/enclosure. GEORGE W. POOLE, Mr. COTTER. Let us go through this again before we get to the general picture. You stated in your sale that it is not surplus. By so stating, do you make your money available for a purchase against new equipment, wherein if you had said it was excess or had not put that in there, the money would not have been available. Mr. COLVIN. That is correct. Mr. BALWAN. It is on the APA account. Mr. COLVIN. That is right. Commander BRYANT. The proceeds of the sale would be turned in to miscellaneous receipts if it had not been replacement property. Mr. COTTER. What condition did it have to be classified in order for them to take the action they have taken, namely, to sell it for a replacement? I know about R-4, but what above that? What better condition could they have had it in and still sold it? Mr. COLVIN. I could not make the determination. Mr. COTTER. Do you know the categories that fall within this action whereby they can sell the material as surplus property would be sold but for the purpose of getting a replacement? Mr. BALWAN. Can you give us the answer on that ? Mr. BALWAN. How bad do the welder's pumps have to get before they decide they have to sell them for replacement purposes? Commander BRYANT. The screening board who actually looks at it, the technical people are the ones who decide for us. Mr. BALWAN. There is a point at which it is decided that the welders' pumps are not to be sold but you will repair them, and then there is a point at which it is decided to sell. Where is that point? Mr. COTTER. Wouldn't your surplus property disposal officer here almost have to know that and have to know what the criteria are? By accident couldn't you be selling very good stuff? Mr. COLWIN. We make no determinations that an article is to be sold for replacement purposes. That is made solely by the controlling bureau. Mr. MORRIS. When you speak of the Bureau of Ships or supply control point, is that the "controlling bureau"? Mr. COLVIN. Either the supply demand control point or the Bureau itself. Mr. MORRIS. In Washington, D. C. Mr. COLVIN. Yes, sir. I used the names interchangeably because certain types go to the aviation supply office and other materials are reported to the Bureau of Ships and Bureau of Ordnance in Washington. Either the supply demand control point or the cognizant bureau in Washington, D. C., makes a determination that an article would be sold. They base that on the assumption made by the technical people, as to the condition of the material, the estimated cost of repairing the article, and the approximate sale price. If we report a vehicle to the Bureau of Aeronautics for disposition, they have told us "You can have so many automobiles or trucks and the rest of them have to be retired.” You take the vehicles out, and tell the Bureau of Aeronautics how much they will cost, and the cost of repairs, and the approximate sales price. Based on that determination, that to repair that vehicle and keep it in service would cost more than it would be worth. The Bureau makes the decision. Mr. COTTER. We understand that, but what are the criteria that the Navy uses? I presume you dispose of it without making a physical inspection or any judgment at the time that you are making the disposal. You take the information that you receive and you list it and sell it, and that is it. Mr. COLVIN. In this case, that would be it. Commander BRYANT. We have 2 screening boards, 1 for airborne, 1 for nonairborne material. If we should suddenly develop from a carrier off-loading a Bureau of Ships items, we would request technical assistance from Green Cove Springs, their screening board. And the same way with Yards and Docks material, we would get the public works people. Mr. RIEHLMAN. The material you are selling now is Bureau of Ships material? Before you get to that, I notice it is now a little after 10 o'clock and perhaps we should go to the sale. (Whereupon, at 10: 10 o'clock, a. m., the hearing was recessed for 18 minutes.) Mr. RIEHLMAN. There is nothing being sold here today that is from your base? Commander BRYANT. No, sir. This is the only sale. Mr. RIEHLMAN. As long as we are making a record of all the bases we are visiting, we would want to get the background of the lieutenant who is handling the sale this morning. Commander BRYANT. That is Lieutenant Armstrong. Mr. RIEHLMAN. We want to know her background. Do you have that information? Commander BRYANT. I can get that, sir. She was at the Patuxent River. Mr. BALWAN. Let us read the information into the record. Mr. BALWAN. While we are waiting, Mr. Colvin, would you tell us about your education, whether you are a high-school graduate and where you went to college and so forth? Mr. COLVIN. I graduated from a local high school in Jacksonville, and have been living here 23 years. My first job was with the Western Union Telegram Co. and I started with them in 1933 and worked 7 years. I went to the Navy Department, Bureau of Ships, in September 1940. I worked as a clerk in the Design Division until June 1941, at which time I transferred back to this station as a clerk-typist. From then, approximately 2 years later, I was promoted to assistant purchasing agent. In December 1942, I enlisted in the Air Force and spent 3 years and 70 days in the Air Force, and was discharged in February 1946. I came back to work at the Naval Air Station as purchasing agent in March 1946. It was approximately July 1947, when this disposal function was also placed under my jurisdiction. Since that time I have operated both as purchasing agent and as disposal man. |