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have 5 primes and 19 zonal classes and 163 base classes. The total value of the inventory of these 336,148 items is about $600 million; $100 million of that is aircraft engines.

Mr. Balwan. Do you have those broken down as to how much of that is MDAP and how much is reserve, what is operating stock, and about what part of that is going to fall into excess or surplus !

Colonel RAMME. Well, I would hesitate to guess as to how much of that will fall into excess.

Colonel PACKARD. We don't have it broken down under our monetary property accounting. What we will be doing is putting a dollar tag on our stock. Then our MDAP account, mutual defense aid account, of course, will be broken out by dollar value. MDAP funds are allocated by Congress for a specific purpose; however, to break the dollar value of our stock down by active and reserve stocks has not been done as yet. We are in the process of trying to determine, back to Mr. Thomas' question, exactly what our stock levels will be for active stocks, and for reserve emergency above that level will be excess. Once we have defined those active stock levels and the reserves that we can retain, we will be able to apply that requirement against our total stock and come up and say we have roughly so much excess or we think it is excess.

Mr. THOMAS. Are you in the process of doing that?
Colonel PACKARD. Yes, sir, we are, Mr. Thomas.

Mr. THOMAS. Because your inventory is no good unless you know what it is?

Colonel PACKARD. That's right, sir. Of course, one of the difficult problems is we are practically sure of our active stock and our stock levels, but we are not sure of exactly how much we should retain as a reserve. That is the policy that has to be determined. When we get our active reserve then the balance is roughly excess and we can give a figure on it, but we're doing that.

Mr. BALWAN. What is your goal, in terms of time, for getting that

Colonel Packard. Monetary property accounting for prime and zonal classes should be completed by July 1 of this coming year. And then we will apply our base property classes within another 6 months. I'd estimate in approximately 12 months we should have monetary accounting in across the board with reserve stocks and active stocks priced out by dollar.

Mr. HOLIFIELD. That includes from the depots right down to the bases?

Colonel PACKARD. Basically, I am talking about the depots. We are putting in monetary property accounting at bases, but we must recognize that we are just starting, and that that program probably won't

Mr. HOLIFIELD. Do you mark an item off your inventory when you ship it to a base ?

Colonel PACKARD. We mark off of our depot inventory, Mr. Holifield, then the base has to pick it up on their inventory.

Mr. THOMAS. In the computation of your requirements for the next budget year, do you take into consideration your base inventory as well as your depot inventory?

out?

go so fast.

Colonel PACKARD. Yes, sir.
Mr. Thomas. Have you always done that?

Colonel PACKARD. We have always done that; yes, sir. For the past 10 years we have had a worldwide stock balance report that is collected from base through the zonal depot up to the prime depots so that at the time of requirements computation worldwide assets are known.

Mr. THOMAS. But that is on a unit basis?

Colonel PACKARD. Yes, sir. Not on a dollar basis. We have to compute our requirements on a unit basis. For that purpose the stock balance report is good, but we also recognize that monetary reports will be a marvelous management tool. Mr. THOMAS. I think that is one of your No. 1 priorities. Colonel PACKARD. It is the No. 1 priority, sir. Mr. HOLIFIELD. You will convert then later on to the dollar value?

Colonel PACKARD. We will have to have both the item accounting and the dollar value, Mr. Holifield.

Mr. HOLIFIELD. Actually now, in the computing of your requirements, if you need a certain number of trucks, you ask for those trucks without regard to how much they cost?

Colonel PACKARD. Basically, that is true.

Mr. HOLIFIELD. But then don't they have to reduce that to dollars when they ask for their budget requirements ?

Colonel PACKARD. Of course, it works like this: We take the Air Force programs that we get and compute the item requirements and then we interpret those into dollars for budget needs. Of course, you gentlemen are aware that our budget requests go in to Congress, and they may be trimmed, and often times are, and then we take the dollars that we have left and we recompute those back into items in order to make the dollars cover as much of our program requirements as we

Mr. Thomas. When it goes into the system, it goes in as items, not dollars?

Colonel PACKARD. Yes, sir. What we haven't done, and what we are doing at the present time is pricing out our inventory on a dollar value. That's what we are doing now.

Mr. BALWAN. We noted in our discussion at Maywood that it was difficult to get information because salvage property went in as units and came out as pounds some way.

Mr. RIEHLMAN. Well, we are going to have an explanation of that, I think, today. Isn't that correct?

Colonel RAMME. I would like also to mention that GSA is a source of supply for us for approximately 11,000 items. We process about 700 requests to GSA a month.

Now, more specifically, getting into the disposal organization, this is the outline of the Disposal Division. We have two branches: Surplus Branch and an Excess Branch. The Excess Branch has the class 27 stock records which are maintained by items. Exactly the same item records that we maintain on active Air Force stock. The Surplus Branch is our sales agency. It is in this organization we talk about pounds. Now up to this point it is items; from here on it is pounds but the major end item is still identifiable as an item.

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MCCLELLAN AIR FORCE BASE EXHIBIT No. 12

DISPOSAL DIVISION MI88ION

1. Disposal Division (SP).-Maintain cognizance over other elements of the depot in connection with implementation of the criteria for the determination of USAF excess personal property, advise the Director of Supply and Services as to the progress of the disposal program. Initiate and assist in the develop ment of programs for the conservation and further utilization of excess and surplus property. Develop forecasts reflecting Air Force excess or surplus property activity as directed. Serve as central coordinator and adviser for overall disposal policy and procedures, maintain files of, and disseminate applicable publications and regulations.

a. Excess Branch (SPE).-Supervise complete control over all class 27 property. Accomplish and furnish disposition instructions for reported property. Serve as a central control office for the receipt and classification of listings of excess and exchange-sale property from other Government agencies. Maintain liaison between the class and Government agency concerned to insure maximum utilization and recovery of excess property.

(1) Records and Reports Section (SPER).–Maintain stock record accounts and historical records and accomplish stock control responsibilities for excess property account (account code 7). Obtain pertinent information, classify and prepare listings of property as required for redistribution or disposal. Prepare reports for all account code 7 property generated and processed. Initiate, receive, review, and correct Standard Form 120, Report of Excess Personal Property, of account code 7 property for which the depot bas prime responsibility and provide technical assistance as required.

(2) Ercess Storage Section (8PES).-Maintain physical control over receipt, transfer, and storage of class 27 property. b. Surplus Branch (SPS).-Review and study current national requirements for materials. Initiate appropriate base directives for utilization, conservation, and segregation of materials and exercise strict supervision to insure compliance. Maintain strict supervision over all transactions and exercise due caution and diligence to prevent irregularities or opportunities for fraud or collusion. Initiate and implement policies, procedures, and technical information affecting disposal of property.

(1) Records and Reports Section (SPSR).-Maintain records and prepare reports of surplus and exchange-sale property received, utilized, transferred, donated, sold, and destroyed. Initiate, monitor, and conduct sales of surplus and exchange-sale property. Review commercial market quotations, trends, and trade practices to intelligently merchandise salable property. Accomplish or assist in evaluation of bids, making awards, and collection and deposit of money received from the sale of this property.

(2) Storage Section (SPSS).-Receive, identify, segregate, and classify surplus and exchange-sale property and insure proper disposal authorization. Insure proper demilitarization of arms, ammunition, and implements of war and property determined by competent authority to be classified for reasons of national security.

(a) Receiving and Screening Unit (SPSS1).-Receive by unit count and scale weight all Air Force property subject to disposal action. Segregate material by type and material content in preparation for further use or sale.

(b) Storage and Issue Unit (SPSS2).-Store disposable property, prepare material for and construct bid sales. Select and prepare material for donable property program. Process issue and shipping documents.

(c) Paper Products Reclamation Unit (SPSS3).-Segregate and bale paper products by type. Manufacture shredded paper. Reclaim car

tons for reuse. Turn in and issue processed paper products. (3) Aluminum Sueater Section.-Receive, identify, and segregate scrap metal to insure that only one type of metal is processed through the sweater. Process scrap metal through sweater and prepare ingots. Store ingots pending disposition and/or sale.

MCCLELLAN AIR FORCE BASE EXHIBIT No. 13

ORGANIZATION AND STAFFING OF DISPOSAL DIVISION 1. Disposal Division (SP):

Carl Reese, Captain, USAF, Chief Disposal Division
R. W. Peck, GS-7, Acting Deputy Chief

M. Whittaker, GS-3, Clerk-stenographer
a. Excess Branch (SPE):

J. Zambelich, GS-5, Acting Branch Chief
(1) Records and Reports Section (SPER):

J. Zambelich, GS-5, property and supply supervisor
A. Ardell, GS-3, property and supply clerk
R. Carstairs, GS-3, property and supply clerk
J. Gilmer, GS-3, property and supply clerk
E. Norehead, GS-3, property and supply clerk
R. Thompson, GS-3, property and supply clerk
L. Meyer, GS-3, clerk-typist

8. Schlax, GS-2, clerk-typist
(2) Excess Storage Section (SPES):

In process of being established.
b. Surplus Branch (SPS):

R. W. Peck, GS-7, Branch Chief
(1) Records and Reports Section (SPSR):

E. J. Schuler, GS-5, supervisory clerk
R. Bertacchi, GS-3, clerk-typist
J. Clark, GS-2, file clerk
D. E. Cooney, GS-3, clerk-typist

V. Sprague, GS-4, statistical clerk
(2) Storage Section (SPSS):

T. I. Olson, WF-3, disposal and salvage foreman
(a) Receiving and Screening Unit (SPSS1):

W. W. Jones, WB-9, salvage material inspector
R. McCutchon, WB-7, salvage material grader
R. Coffey, WB-7, salvage material grader

J. Cutts, WB-6, hight lift and fork operator
(b) Storage and Issue Unit (SPSS2):

W. Adair, WB-9, senior warehouseman
A. Clayton, WB-6, high lift and fork operator
S. Creekmore, WB-3, laborer
J. Hogan, WB-7, warehouseman
E. Madriago, WB-7, warehouseman

M. Williams, WB-6, high lift and fork operator
(c) Paper Products Reclamation Unit (SPSS3):

K. Eleby, WB-5, laborer pusher
E. Jackson, WB-5, laborer
C. Jones, WB-3, laborer

E. Ziegenbein, WB-3, laborer
(3) Aluminum Sweater Section:

1. 2 WB-16 mobile crane operator
2. 6 WB-10 aircraft reclamation worker

3. 1 WB-8 junior aircraft reclamation worker Mr. Balwan. I don't understand why you want to do it that way. I see your explanation where it is both units and pounds, and where it is lost and becomes pounds only. I still don't see why you worry about pounds in the Surplus Branch.

Colonel PACKARD. It isn't a very important designation. It is only a common denominator. We actually maintain a stock record on everything except scrap and salvage which, of course, loses identity and must be kept by pound. We maintain an individual item record for every item, and only use a pound as a common denominator in our management tool. We don't use it in actual control of material.

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Mr. HOLIFIELD. Isn't it true that the answer for that is that your workload and your tons moved per man must be computed in pounds rather than in any other denominator?

Colonel PACKARD. That is right, Mr. Holifield. Now, for example, in our form 488 report we show pounds for all depots but it is only a measurement and a common denominator from depot to depot. Each depot itself has the item listed by the individual item. It lists the items for sale by individual item and it drops it from its records as individual items, but in order to collect it together for our 488 report, which is our management report at AMC, we do use a pound figure. But, I think we have to recognize that if we were to put items on the 488 report from all of our depots we would end up with yards, and gallons, and gross, and each, and all of those various things.

Mr. HOLIFIELD. The important thing to you is that one man can move so many tons per day and from the standpoint of movement, and packing, and transportation, and so forth, you must reduce it?

Colonel PACKARD. Exactly right.

Mr. RIEHLMAN. Is there any possibility of losing track of the acquisition cost as compared with what we are getting in return for the sale of these items?

Colonel PACKARD. No, sir.

Mr. BALWAN. We tried to follow that particular point out in Washington. For instance, on form 488 for July 1953, you showed 323,000 pounds of vehicles sold for which you got $14,283, and that is a replacement item.

Colonel PACKARD. Right.

Mr. HOLIFIELD. We tried to find out what the acquisition cost of the 323,000 pounds of vehicles was. They told us we couldn't do that. You can get the stock catalog value, and the total amount of sales for the month of July at SMAMA, here, but they couldn't isolate the acquisition cost of the vehicles from the pound figure.

Colonel PẠCKARD. Not from the form 488 report, but each base does have the number of vehicles they sold, and they have the acquisition cost that can be applied against it. We do not ask for this information from all of the depots and from all of the bases. We have to recognize that if we have some 400 bases in the AF and some 15 depots, that to try to accumulate this at either our level or the Washington level, by items, would be rather difficult. But this information is not lost, because it is at the base or at the depot where the items are sold. If you wanted it for any one depot we could get it for you, or for the items.

Mr. HOLIFIELD. This is not a handy device then to lose track of dollars or to refrain from giving us a true picture of percentage of recovery of the acquisition cost?

Colonel PACKARD. No, sir. It isn't. It is merely a common denominator on which we can measure each depot against another because, as I pointed out, if we try to take each individual item as the unit of issue, as I say, it could be a vehicle, it could be a yard, it could be a gallon, or something. It would be very difficult. We use it as a broad management tool, but at each depot and each base there are specific records, by individual items, the acquisition cost, and the dollars returned against it.

Mr. HOLIFIELD. In other words, if a truck had been acquired for $10,000 and sold for $1,000, you could ascertain those two figures?

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