3. PROPERTY LISTED ON SF-120 ON WHICH NO RELEASE HAS BEEN RECEIVED

4. PROPERTY TRANSFERRED FROM ACCOUNT 1 OR ACCOUNT 7 TO DISPOSAL

1. There is now on hand 504 tons of class 27, account code 7, property which is valued at $5,210,000.

Mr. RIEHLMAN. Let me ask one question. How long did it take to make that computation?

Mr. PAUL. Just about 30 days here at Sacramento.

Mr. HOLIFIELD. May I ask a question? Was this a one-shot deal or have you now inaugurated a continuous program which might well be called Spring Clean?

Colonel RAMME. Spring Clean as such was a one-shot deal; however, there is another program to follow on which AMC and USAF are currently working up the new programing data and on which we will go back and make a new recomputation.

Mr. HOLIFIELD. And that will be continuous from now on? A continuous program?

Colonel RAMME. As far as I know, it will; yes, sir. We sent the retention list to the bases telling them to keep so much and dispose of so much, rather than telling them the other way around, because the inventory report could have been off, and we would dispose of a few more than we wanted to, so we gave them a retention list rather than a disposal list.

Mr. RIEHLMAN. Well, this is a little disconnected in the questioning, but I wanted to ask this other question. It took 30 days. How many people were employed to make that computation?

Mr. PAUL. I would say, roughly, sir, about 20 people were involved. Colonel RAMME. Full time for 30 days?

Mr. PAUL. Yes, sir.

Colonel PACKARD. Of course, I am sure you gentlemen recognize we are discussing only the items for which this depot is prime. Each

depot in turn computed its requirements for excess on which it was prime and then disseminated the information to the AF bases concerned.

Mr. RIEHLMAN. That was general across the country.

Colonel RAMME. It represented-getting down on the chart further here-16,660 line items, or the items on which we actually did the computation and the review.

Mr. BALWAN. You did all that in 30 days?

Mr. THOMAS. Was that actually disposed of? The last thing I saw was 2,200 items, and you recovered about 1,008 out of them.

Mr. MORRIS. Those property classes do not include all the classes for which you are prime, do they?

Colonel RAMME. They do not include all items for which we are prime. For instance, all World War II aircraft were included; however, the jet aircraft were not included in this figure. They are a newer aircraft, and we do not have the life on that airplane-when it is going to go out of the system; therefore, we did not compute it. In other words, we can't get an average percentage on it without knowing whether that airplane is going out of the system in 1960, 1961, or 1962.

Mr. THOMAS. What percentage of spares are you buying?

Colonel PACKARD. On our new aircraft in terms of dollars? General Hefley, isn't that about a 20 percent figure?

General HEFLEY. Excluding the engines. Of course, the engines are a large dollar item, but the total dollar value of the spares, including engines, run about 60 percent; on the airframes around 15 to 20 percent. As we cut down the high dollar items in the aircraft spares and as we cut back the engines, which we did recently in the J-47's, that would be considerably reduced. It is probably in the neighborhood of 50 percent.

Colonel PACKARD. Yes, sir, approximately.

General HEFLEY. That is above the basic cost of the aircraft. It is not the total cost, but it is above the basic cost.

Mr. BALWAN. That $16 million figure that you have for the cost of the items that are in excess are only for those items which come out of your computation on items for which you have prime control. You may have items stored here which are a zonal responsibility and for which another prime depot will tell you that you have so much excess. It is probable that you will have more than $16 million of material located on the depot here.

Colonel RAMME. It is possible. not located here either.

Actually all of the $16 million is

Mr. HOLIFIELD. That represents what this base is prime for? Colonel RAMME. That is right. Some of the material is in Europe, some in Japan, and some is down at Chile. It is not necessarily on

this station.

Mr. BALWAN. Have we arrived at a figure which tells us, now, as a result of our computation and having located the items which are excess, exactly what we have on this base which is excess from Spring Clean?

Colonel RAMME. We can give it to you in tons. I believe we can give it to you in dollars, can't we Miss Zambelich?

Miss ZAMBELICH. I don't have the dollar value of items that came into excess. I have the number of items that came into excess as a result of the Spring Clean program.

(NOTE.—The dollar value of these items is $633,315.34.)

Colonel RAMME. 985 line items came into class 27 from Project Spring Clean.

Colonel PACKARD. What Mr. Balwan has specifically in mind is whether you have finished your breakout of where these items are excess. Have you determined what quantities are in excess here-in addition to FEAF-and notified your people?

Colonel RAMME. Yes. This chart on Project Spring Clean covers a period from January to June of last year and indicates the schedule given to us by AMC to complete their program. We fully completed the screening on June 30 and the listing went out to the stations within 2 or 3 weeks. They all were out at least by August.

Mr. BALDWIN. The point that I am trying to make is that this is still a computational exercise, that you don't know exactly what you have at this base that is excess out of that $16 million plus the other excess which the other prime depots are telling you is excess at this base.

Colonel RAMME. Yes, sir, we can give you a listing by item from the stock record cards.

Mr. HOLIFIELD. I think that what Mr. Balwan means is, once excess was determined, were orders given in the different bases and in this base to dispose of certain percentages of that inventory?

Colonel RAMME. Not by percentage, but by so many of this particular item.

Mr. HOLIFIELD. In other words, one base might be told to dispose of 5 items and another base 100 items, according to the amount that is in inventory.

Colonel RAMME. Yes, sir.

Mr. HOLIFIELD. In other words, there is not an order to dispose of 10 percent just because you have a 10 percent overage.

Colonel RAMME. No, sir.

General HEFLEY. As far as you know your list of material here is intermingled with other surplus material so that it would be difficult to determine the results from Project Spring Clean at this base. You would have to go to each prime depot to find out, worldwide, about each item.

Colonel RAMME. That is right.

Mr. HOLIFIELD. Once this is accumulated we want to be sure that orders are sent out to dispose of excesses wherever they may be.

Colonel RAMME. That's right, sir, those have gone. I believe we are compiling what you want as a result of the AMC request which is deadlined for December 31.

Mr. BALWAN. October 31, originally, wasn't it?

Colonel RAMME. Yes, but it has been moved up now, I think, to December 31. They have asked for the same type data, and we are now trying to get the figures for the very thing you are asking.

Colonel PACKARD. For example, our Spring Clean computation shows about $277 million of paper computation excesses. Now what we want to get at is what does this actually result in? Those are the figures that we are attempting to compile so we can take, eventually,

the $277 million that we computed on paper and determine what we actually disposed of.

Colonel RAMME. The categories in which we have our prime excesses are these wingtip tanks, F-51 spares, and F-82 spares. Those three areas represent the bulk of all that we were able to find as surplus as a result of Spring Clean.

Mr. HOLIFIELD. How do you get that storage space release figure. Is that here at this base?

Colonel RAMME. Yes, sir. This is the storage space occupied by Spring Clean property at this depot.

Mr. BALWAN. This is not for the whole 4,890 items with the value of $16 million?

Colonel RAMME. No, sir, this should well be on another line of the chart.

Colonel PACKARD. This is a local storage space.

Colonel RAMME. Now in class 27 we have 504 tons of property as of today with a value of $5,210,000. Again, this is not physically segregated.

Mr. BALWAN. These are the reparables?

Colonel RAMME. Both reparables and serviceables. An item that I haven't mentioned here is that, in addition to Project Spring Clean, we currently have a project for screening reparables which we have on hand at this depot. It is about 30 percent complete. As you can imagine, the reparables have been in the system since the end of the war. Some of them have set for a long time. Some are beyond economical repair; some have deteriorated and now should be condemned. They are no longer reparables and should not be figured as Air Force assets. We are going through and getting these items out of the system. This generates property which can then be discarded.

Mr. MORRIS. Is that how you identify the property, calling them reparables? Do you have a numerical classification for that?

Colonel RAMME. No, sir. All categories of property are serviceable, reparable or TOC. I might mention this in passing; the 504 tons represent 2,882 items. 1,044 of those are currently on SF-120's for screening by Government agencies. Over one-third are on SF-120's. Another 550 are being held pending action of prime depots. These are hand tools which are a special category that are being held under review. We shall place 495 more on SF-120's. There are 813 which we are going to send directly to salvage.

Mr. BALWAN. Are there any part of these SF-120's that are in GSA?

Colonel RAMME. Yes, sir. There are bound to be. We don't know whether they are or not, but the system provides that they will get a chance to screen all the material we report.

Mr. BALWAN. Why would parts peculiar to aircraft go to GSA for screening?

Colonel RAMME. That is another category. The material we report on SF-120's to the Surplus Material Division goes to GSA, whereas material reported to the Aviation Supply Office of the Navy does not. It goes to the CAA and elsewhere.

Mr. BALWAN. Do you have anything besides aircraft parts in your system?

Colonel RAMME. Yes, sir.

Mr. BALWAN. What percentage of the total 120's that go out for screening include property that would normally go to GSA for screening?

Miss ZAMBELICH. The percentage of the type of property that goes to GSA? I can give it to you.

Mr. BALWAN. I just want to know how big a part GSA is playing in this disposal picture at this base.

General HEFLEY. At this particular depot, they will get very few items.

Colonel RAMME. We are prime in class 33A, printing equipment, for instance; they would want to screen that and all reproduction equipment.

Colonel PACKARD. Mr. Haines tells me that only about 15 percent of the property we generate is apt to go to GSA. These are the common use type items. The balance of the items being peculiar to aircraft, make up approximately 85 percent.

Mr. BALWAN. Of that amount which goes to GSA, what kind of service do you get? Is that held up to any extent, or do you get screening as fast as the screening you are required to do?

Colonel RAMME. In the past the entire processing of the SF-120 was unsatisfactory, and now we have this new system-the Q planwhich is designed to speed that up. I will cover this a little bit later. The processing on SF-120's had been unsatisfactory across the board; everybody was taking too much time.

MCCLELLAN AIR FORCE BASE EXHIBIT No. 19

EVALUATION OF THE Q PLAN

1. A large advantage of the Q plan for screening excess property as opposed to the system it supplanted is in the great reductions of time required to consummate the screening-reporting cycle. Formerly, all property screened was reported to the Surplus Materiel Division (SMD) of the Navy Department through the prime depot. The Surplus Materiel Division was allowed to hold the list up to 90 days before passing it on to the General Services Administration (GSA) where it could also be held up to 90 days. Thus, it was possible that property would be held in excess of 180 days before disposition could be made.

2. The Q plan established two major categories: P and Q. Type P property is that having high value and/or high utilization potential. Type Q property is that having low value and/or low utilization potential. Although P type property follows the former procedure in essence, Q type item disposition is considerably more rapid with a suspense totaling only 75 days. If, within this 75day period, disposition instructions are not received from SMD, or GSA, release to the Disposal Officer at the reporting activity.

3. The grouping into P and Q categories represents a definite advantage in that for Q type property, generally, processing extensively through excess channels is not economically feasible. Obviously, it is not profitable to spend the same amount of time and effort to process an R-4 condition item (used-repairs required-poor) as an N-2 item (new-good).

4. The short time the Q plan has been in operation does not yet permit an accurate evaluation of its effectiveness, however, some progress has been noted to date. The figures which follow indicate the number of line items reported by the directorate and their total acquisition costs broken down by P and Q types for the months of August, September, and October 1953.

41957-54-47