e. To save storage space. Using a wrecked B-29 as the criteria, 1,000 square feet of storage area was required prior to the sweating operation. Sweating reduces the same B-29 into 22 ingots requiring 50 square feet when stacked. This results in a storage area saving of 95 percent.

2. CAPITAL AND OPERATING COST

a. Capital value of aluminum sweating furnace:
(1) Construction cost (includes overhead).
(2) Anticipated life----

(3) Annual depreciation rate_

b. Cost of operation (Aug. 11, 1953, through Oct. 31, 1953):

Electricity-.

(5) Depreciation of furnace__

(6) Depreciation of mobile operation equipment_.

(7) Furnace maintenance__.

Total__

$2, 209.44
96.00

2,305. 44

208. 09

455.91

301.33

12, 090. 49

3. AVERAGE DAILY COST AND PRODUCTION (BASED ON OCTOBER 1953)

.009807

(5) Direct cost of producing 1 pound of ingot aluminum____.

4. PRODUCTION CAPACITY

Based on experience of operating the sweater since August 11, 1953, operating 16 hours per day, the estimated daily production is 20,000 pounds.

5. FUTURE USE

Greater utilization of the sweater will be realized in the future by experience gained in the operation thereof. Thirty-pound "finger" molds are on procurement and will replace current 1,000-pound molds. The "finger" molds will operate within a conveyor and will provide automatic pouring and emptying. Due to the reduced weight of the ingot, easier handling will be realized and result in a saving in man-power and equipment.

6. STOCKS OF ALUMINUM INGOTS AND VALUE

To date the entire 646,551 pounds of ingots are on hand awaiting sale. At 16 cents per pound, $103,448.16 will be realized therefrom. There were 721 ingots produced at an average weight of 897 pounds each.

7. MISCELLANEOUS INFORMATION

The cost of installing the sweater and operating costs are provided from disposal revenue. Personnel involved in sweater functions are charged to project 400 funds, which receives funds from the miscellaneous receipts account derived from disposal sales.

Mr. HOLIFIELD. But you still have to take your processing, the labor cost, and so forth, out of that.

Colonel RAMME. That is in the $12,000, sir.

Mr. HOLIFIELD. That is in there?

Colonel RAMME. That is in there, yes, sir. And that includes amortization of building that sweater.

Mr. HOLIFIELD. Över what period of time is that?

Colonel RAMME. Two and one-half months, sir. We started the sweater on the 11th of August.

Mr. RIEHLMAN. Now, did you say that includes the amortization of the cost of the smelter and its depreciation and overhead?

Colonel RAMME. Yes, sir. You will find all those figures are all broken down in the brochure.

Mr. THOMAS. I remember they had about $4,000 of that as overhead. They have a direct labor cost and an overhead cost of $4,000.

Colonel RAMME. Yes, sir. That is about right, $4,000.

Mr. THOMAS. I made them get figures that were comparable and on the high side rather than **°

Mr. RIEHLMAN. I commend you, sir.

Mr. THOMAS. Yes, but they forgot those two plants.

MCCLELLAN AIR FORCE BASE EXHIBIT No. 23.

QUALIFICATIONS OF PERSONNEL AND CRITERIA USED IN DETERMINING EXCESSES

Personnel highly trained in the techniques of screening worldwide stock balance reports, bit and piece consumption reports, buyers guides and provisioning lists are established in each prime class. These technicians are at a level of GS-7 or above and have from 5 to 10 years' experience in stock-control functions. Prior to final determination of items to be declared as excess, a review by section chiefs (GS-9 to GS-11) is made to insure computations are based on consumption experience, related to current assets as applied to projected program requirements. The computations are further audited by a requirements analyst of the Requirements and Distribution Division, again insuring that all factors have been considered. When the above has been completed the parts or materials are processed as excess to Air Force requirements.

POINTS OF EXCESS GENERATION

1. Generation of USAF excesses:

(a) Items classified as account 7 in stock catalogs.

(b) Headquarters USAF, Headquarters AMC, and prime class determination.

(c) Items administratively condemned for technical reasons outlined in technical orders.

(d) Items which cannot be identified to the extent its usage and value cannot be determined.

(e) Items conditioned condemned with the following exceptions:

(1) Critical items.

(2) Items requiring reclamation until required reclamation is performed.

(3) Items authorized for continued use by USAF, such as quartz radio crystals, unserviceable parachutes.

2. Disposition of items determined excess:

(a) Specific types of material are transferred directly from class or generation point to the disposal officer:

(1) Scrap materials, such as:

(a) Paper.

(b) Garbage.

(c) Scrap steel and iron.

(d) Scrap lumber.

(2) Property which is unidentified to the extent its value cannot be determined.

(3) Condition condemned property.

(b) Remaining excess items are transferred to account 7 for purposes of: (1) Demilitarization and classification as required.

(2) Circulation of items which because of their category and condition are authorized for local redistribution.

(3) Reporting certain aeronautical items, particularly those common to both Air Force and Navy, for which SMAMA has prime class responsibility, are screened by the Naval Aviation Supply Office, CAA, and Department of the Interior. These items are screened simultaneously for 50 days by each organization; however, requirements of the Aviation Supply Office are honored first. Property found to have no requirement is transferred to the disposal officer. Items in this category are reported on standard form 120.

(c) Nonaeronautical property for which SMAMA has prime class responsibility is also reported on standard form 120 to the Surplus Materials Division and the General Services Administration. Disposition instructions are required within a 75-day period from SMD and GSA for Q type items based on a beginning date set by SMD. This property is simultaneously screened by SMD and GSA. If disposition instructions are not received in the 75-day period this property is automatically released to the disposal officer. Type P property may be screened for a period of time up to 90 days by SMD, and an additional period up to 90 days by GSA thereafter. Type P material for which no requirement exists is released to the disposal officer.

(d) Items for which SMAMA does not have prime class responsibility are reported to the appropriate prime depot. The prime depot is responsible for issuing disposition instructions.

3. All aeronautical and nonaeronautical items authorized for transfer to Disposal are first issued to Reclamation. This includes items condemned by technically qualified maintenance inspectors as a result of fair-wear-and-tear and material condition condemned by supply inspectors. This practice insures the removal and immediate return to stock of the useful parts cannibalized.

MCCLELLAN AIR FORCE BASE EXHIBIT No. 24

ANALYSIS OF PROPERTY SOLD PER DISPOSABLE PROPERTY REPORT, NOVEMBER 1952 TO OCTOBER 1953

1. The total acquisition cost of scrap and waste between November 1952 through October 1953 amounted to $1,400,429.26, and the total revenue received amounted to $155,628.69.

2. The total acquisition cost of salvage and usable items amounted to $4,369,357.89 and the total revenue received from all line items came to $234,044.93. This information, categorized by line item, appears on the following page.

List of invitations for bid, issued since Nov. 1, 1952, through Oct. 31, 1953 [Number of sales conducted, advertised and negotiated: 55]

Colonel RAMME. This is the last chart which I have with regard to the Disposal Division. This chart goes back to the criteria which were the qualifications of the people who screen the stock records and do the computations to determine that an item is actually excess to the requirements of the Air Force. This is in the prime classes.

First of all, our Requirements Distribution Office, which I showed you, establish the guidelines to our people, based on the guidance they get from Headquarters, AMC. In each prime class those individuals screen worldwide stock balance reports, which Colonel Packard mentioned, to determine how many of that item there are and where. They also use the worldwide stock balance and consumption reports. Those people are at the GS-7 level and are our better clerks. Normally our stock record personnel are hired in base supply at a lower

grade level and, as they become more proficient, they move on to zonal; then when they are seasoned, are transferred over to the prime function. These are the better people of all our class clerks in our prime classes who do this screening.

After lists of potential excess items have been screened, and requirements have been computed by these clerks, they are again screened by their chief, who is a GS-9 to 11, depending upon which property class we are talking about.

The lists then go back to the Requirements and Distribution Division again for screening by what we call analysis; they are the same people who do the screening of our computation requirements prior to our buying.

Mr. THOMAS. Is there quite a turnover in the personnel in that group?

Colonel RAMME. No, sir; stable.

Mr. MORRIS. Is this mostly a civilian group?
Colonel RAMME. It is all civilian.

Mr. MORRIS. All civilian?

Colonel RAMME. The Chief of the organization, Materiel Control Division, is a lieutenant colonel. The rest of that organization is civilian. Of our 2,480, we have 12 officers, the remainder is civilian. We have some military trainees currently getting depot level training in our organization. There are about 75 of those now.

Mr. THOMAS. How much turnover do we get in military personnel! Colonel RAMME. Very great. They come and go. I have an authorization of 25 officers, and in the 22 years I have been here, I think I have had at least 100 who have come and gone.

Mr. HOLIFIELD. And how long have you been here, sir?
Colonel RAMME. Two and one-half years, sir.

Colonel PACKARD. I might say, for the record, that we realize this is a problem. The Air Force has published a regulation that has stabilized the tour of base accountable officers at 3 years. All base officers now in the Zone of Interior must spend at least 3 years at the one job unless reported for some specific reason by the Air Force. This problem has been recognized, however, and the Air Force is attempting to do something about stabilizing military personnel.

Colonel RAMME. I have not covered merchandising methods, about which I presume you would like to know. Perhaps someone would like to ask questions on it.

Actually, the bulk of our property is sold on sealed bids. We do have retail sales for scrap lumber; we have negotiated sales for garbage, and we sold a burned down PX building on a negotiated sale. We do not use the auction sale method here.

Mr. BALWAN. How about the spot bid sale?

Colonel RAMME. We have never used it, sir.

Mr. HOLIFIELD. Is there any reason why you haven't? Have you not just as a matter of happenstance, or did you determine that you should not?

Colonel RAMME. No, sir; we were satisfied. We were getting a fair return and saw no reason to change. We apparently are getting into some areas, however, where we are going to need to go into some other method of sale.

As an example, down in the yard, right now, we have about 24 gas stoves that came out of quarters. Now, those were put on bid back