Colonel RAMME. Sixty people, sir. This office, the Deputy for Requirements and Distribution, representing 98 people, is where we control the computation of requirements, provisioning, identification, cataloging, packaging control, and so forth. These are major operating divisions of which the Disposal Division is one. It became a division on October 1 of this year.

Mr. RIEHLMAN. How large is it?

Colonel RAMME. It is 39 people now, sir. The Disposal Division formerly was a Disposal Branch as a part of the Materiel Facilities Division and included in here, now, is class 27, excess property, which was formerly a portion of our Materiel Control Division. Those two have been pulled out now and set up as a separate operating division.

Mr. BALWAN. What difference does that make?

Colonel RAMME. It is recognition of the importance of this program, I think. If you take an important program and put it down into an organization it doesn't get the attention that it gets if you set Mr. BALWAN. Do you have any more people in the actual disposal section that you had before?

Colonel RAMME. No, sir.

Mr. BALWAN. Just a paper organization, then?

Colonel RAMME. No, sir; it is more than that. It has taken several people out of the channel of the Chief of the Disposal Division. He now reports directly to me whereas before he reported to Mr. Dumas, Chief of the Materiel Facilities Division, who in turn reported to me. Mr. HOLIFIELD. Do you anticipate an increased workload there? Colonel RAMME. Yes, sir; I think we will. The Air Force is getting into more of these disposal programs of which Spring Clean is the first major one. We now have plans to expand that, and new criteria are being developed by AMC and USAF, and as a result we definitely will see an increased activity.

Mr. HOLIFIELD. Are you going to give us figures in regard to your inventory and also your monthly disposal?

Colonel RAMME. Yes, sir. The facilities which we have are broken down this way: We have a total of 4,782,000 square feet made up of covered space-closed warehouses, 2,325,000; improved outside hardstand 1,616,000; unimproved outside hardstand-and unimproved means a very light surface that will not stand a heavy storage, will not hold a forklift.

Mr. RIEHLMAN. What percentage of the covered is now occupied by surplus or excess property?

Colonel RAMME. I'll cover that, sir. It's about 24,000 square feet. Other, is storage in buildings that were not intended to be used for storage. We used to use the wing of an old hospital, military buildings at Kohler. Now, in addition to these facilities, we have gone into commercial storage to the extent of 78,538 square feet. We had transferred to us from the Army 700,000 square feet and GSA have given us 67,000 square feet.

Mr. RIEHLMAN. Where is that storage? In San Francisco?

Colonel RAMME. Commercial storage, sir?

Mr. RIEHLMAN. Yes.

Colonel RAMME. Most of it is in San Francisco, however, some of it is scattered in outlying towns. It is in 12 different locations in various increments, 6 of them up to 10,000 square feet each.

Mr. RIEHLMAN. What is that costing the base per month?
Colonel RAMME. I can get you that figure. I do not have it, sir.
(NOTE. The data requested is as follows:)

Cost of commercial storage (78,538 square feet) per month_--
Cost per square foot per month_

$9,931. 38 0.125

Mr. RIEHLMAN. I think we would like that for information. Mr. BALWAN. Can you give a manageable figure? Give us the average cost per square foot per month or per year to rent commercial space? Colonel RAMME. Well, this figure would be that. Of course commercial storage includes the handling. I believe we can break that out as to what is rental for the buildings, how much of it is paid for moving the property into the warehouse and out.

Mr. BALWAN. The Air Force would have those costs too, wouldn't they?

Colonel RAMME. I believe they do. They are overall. They would have an average of all the depots where dollars reflects only our own.

Colonel PACKARD. We are developing the cost of Department of Defense storage which includes service and storage space utilizing commercial warehousing as against our own cost of utilizing our own personnel and our own warehouse space. We are developing it now. Mr. RIEHLMAN. Now the property that GSA is making available to you, that is chargeable to the space too, is it not?

Colonel PACKARD. It is not chargeable under the Department of Defense storage.

Mr. RIEHLMAN. It is not?

Colonel PACKARD. Not under the Department of Defense plan; you got that on a loan basis.

Colonel RAMME. Yes, we pay, reimburse, GSA for facilities, upkeep, and that sort of thing. It is excess to their requirements therefore they have made it available to us.

Colonel PACKARD. That is the same with the Army space that is being loaned to us down at Stockton?

Colonel RAMME. Yes, we have 375,000 square feet at Stockton, 350,000 square feet at Mira Loma, in Los Angeles.

Mr. RIEHLMAN. We might get some information from the GSA sometime. Figures as to what the cost is.

Mr. HULL. I'm Clarence Hull from GSA and Mr. H. C. Maaske is here, head of Federal Supply. He can give you that.

Mr. RIEHLMAN. Mr. Hull, I wouldn't care to ask for the figures at this time but if you could get them for us and furnish them to the committee we would appreciate it.

MCCLELLAN AIR FORCE BASE EXHIBIT NO. 5

GENERAL SERVICES ADMINISTRATION,

ARIZONA, CALIFORNIA, NEVADA, AND TERRITORY OF HAWAII, REGION 9,
San Francisco, Calif., November 12, 1953.

Hon. R. WALTER RIEHLMAN,

House of Representatives,

Washington, D. C.

DEAR CONGRESSMAN RIEHLMAN: Reference is made to the hearings of your committee held at McClellan Air Force Base, Calif., on November 9, at which time Col. E. L. Ramme, Director of Supply and Services, McClellan Air Force Base, presented a list of Air Force warehouse-storage properties, including 1 area of 67,000 square feet on lease by the Air Force from the General Services

Administration. Congressman Holifield asked that the General Services Administration inform the committee by letter as to the area, location, and rental rate of this property.

The General Services Administration has under lease at 1071 San Mateo Avenue, San Bruno, Calif., 1 building totaling 571,000 square feet used for various GSA activities. In connection with fiscal year 1954 GSA economy efforts, it was determined that the General Services Administration warehouse stock in a part of one wing of that building, identified as section 8, could be consolidated with our other stocks at that location, and such space offered for use by other Government agencies. The GSA stock in section 8 was moved, the space vacated, and agreement promptly reached for joint use of the facilities by the Air Force and General Services Administration.

Effective October 1, 1953, 67,000 square feet were taken over by the Air Force for its needs. The rental rate is $0.051943 per square foot per month. This cost is the actual rental rate to the owner, and no extra charge is made to the Air Force for utilities. Reimbursement from Air Force to General Services Administration is on a quarterly basis.

This agreement is firm to June 30, 1954. It is mutually agreed that if cancellation is to be effected on or after July 1, 1954, either the Air Force or the General Services Administration may cancel such use and occupancy upon the giving of 90 days notice in writing. Should additional storage space become available at the warehouse and be required by the Air Force, its use and occupancy will be on the same terms and conditions as the original 67,000 square feet.

I trust this is the information requested, but if any additional details are desired, we shall be very glad to supply them. This is simply an interagency agreement of convenience and economy to both, as the General Services Administration had no foreseeable need for the space, at least during fiscal year 1954, and, therefore, were glad to release it to the Air Force to meet the latter's need for storage of Air Force property.

Sincerely,

ROBERT B. BRADFORD, Regional Director. (NOTE.-SMAMA reimburses GSA at a rate of $0.051943 per square foot per month. In addition, SMAMA reimburses GSA for 16 man-hours a day at $2 an hour spent in handling our property.)

MCCLELLAN AIR FORCE BASE EXHIBIT No. 6

CURRENT STORAGE SPACE SUMMARY

1. We have 2,325,000 square feet of covered storage space, which excludes 104,000 square feet used for transportation functions, 55th Strategic Weapons Squadron, and maintenance engine bagging operations.

2. In addition, we have 1,616,000 square feet of improved storage space and 807,000 square feet of unimproved storage space.

3. Also, we have other storage space which amounts to 34,000 square feet. This space includes the following buildings which are not designated for storage purposes: T-306-A and T-306-B, where serviceable cylinders are stored; T-313, miscellaneous base support classes and 751 at Camp Kohler where mops, brooms, etc., are stored.

4. Then, we are using 78,538 square feet of commercial warehouse space in addition to the above.

1. There is a total of 336,148 line items stocked within 187 property classes with a total value of approximately $600 million. Within this total 3,071 aircraft engines are included with a value of approximately $100 million.

Colonel RAMME. Now, of the storage space which I have mentioned and the facilities that are available these quantities are a part of the Disposal Division. In covered space they have 4,134 square feet which is in the disposal yard for the storage of material which would deteriorate while it is awaiting sale. Most of their storage, of course, is in outside storage. Improved hardstand, 270,353 square feet. Mr. RIEHLMAN. That is property that you are now in the process of disposing of?

Colonel RAMME. No, that is facilities.

Mr. RIEHLMAN. I mean that is the space that is occupied for surplus property?

Colonel RAMME. That is right. It is a part of the Disposal Division facilities for the storage and sale of surplus property.

Mr. BALWAN. I think the question that Mr. Riehlman wanted to ask is this: Is the property which is resting in that space already past the SF 120 stage and have you been told to go ahead with the disposal?

Colonel RAMME. Yes.

Mr. BALWAN. It doesn't include property which is awaiting the clearances which is excess, plus all the reparables, which is neither classification?

Colonel RAMME. That is right. The reparables are in the other storage, overall. That is in the active Air Force account.

Mr. BALWAN. Then the class 27 has perhaps a lot of potential surplus and you are awaiting instructions.

Colonel RAMME. Very definitely, yes. That is, the material we think as excess is being now screened by all Government agencies to see if anybody can use it.

Mr. BALWAN. That is not in your 35,000 total?

Colonel RAMME. Yes, sir. That is the quantity in square feet of the property we currently have mixed among all our classes. Now remember, I haven't explained this yet.

Our storage of class 27 is mixed along with all our other property classes in the warehouse. It is not separated in one place. We are currently in the process of that separation, and are about 50 percent complete in clearing out a warehouse, T-311, of 21,000 square feet— and we will move this property that belongs inside from our warehouse and consolidate into that activity.

When I get the Disposal Division chart, I will show you that the Storage Section Excess Branch has not yet been activated and will not be until we get the warehouse set up and can move that property, but this represents the material by square foot that is currently intermingled with the rest of the active AF property tagged as individual items in there as belonging to class 27 but not physically moved yet.