every 6 months. Here, the missile will receive a complete checkout and overhaul. The electric bill for this building at Warren will run between $25,000 and $30,000 a month. During the winter months, the boiler room at the powerhouse supporting a missile site; that is, 1 by 9 configuration site, will consume 132 gallons of fuel oil per hourthis for the sole purpose of keeping the water from freezing.

This brief picture gives some indication of why the annual operating cost of an ATLAS squadron totals some $16 million. The costs I mentioned exclude military personnel pay and allowances, personnel training, replenishment spares and other categories of operating expense included in the $16 million figure.

STRATEGIC AND DEFENSE COMMUNICATIONS SYSTEMS

Planned communications systems fulfill several essential needsinstantaneous command, positive control, logistic support, and weather data. These systems support operational forces worldwide. Fiscal year 1962 costs are estimated at $160 million. This is some $16 million over that sustained in fiscal year 1961. These costs include the installation, as well as the rental of leased communications. The principal area of increase relates to the communications logistic network (COMLOGNET). This is a high-speed digital data network. It will connect major Air Force installations with various Air Force depots in the United States. The system will be fully automatic and secure. It will be capable of transmitting large volumes of data at extremely high speed.

General White recently announced our plan to consolidate Air Force communications operating responsibilities under a single agency. This new command-to be called the Air Force Communications Service-will initially be established on July 1, 1961. Command Headquarters will be located at Scott Air Force Base, Ill. It will assume operating functions now discharged by the Airways and Air Communications Service and other major air commands on an orderly time-phased basis. The reorganization will centralize management and control of our extensive communications systems under one activity.

Detailed planning, to include the specifics of command organization and the consolidation of responsibilities under it, is now underway. It is too early to provide now exact figures related to the economies we expect by virtue of this action. We estimate, however, that at the level-off point-some time in fiscal year 1963-the Air Force Communications Service will have an ultimate strength of approximately 58,000 people. This is 3,000 less personnel than now required to perform the same function.

LOGISTICS OPERATIONS

The combination of all the varied requirements related to the operation of our depots, shipment of materiel, procurement functions, and management of a worldwide logistics system fall under the term "logistics operations." Fiscal year 1962 costs are estimated at $843 million. This is a decrease of some $47 million below fiscal year 1961 costs. The major area of decrease reflected in this estimate is in the civilian personnel area. Under this budget, we will employ some

92,000 personnel during fiscal year 1962. Comparable manning in fiscal year 1961 was 99,000 civilian personnel.

As discussed during previous appropriation hearings, the Air Force has been phasing out its large-scale depot operations in oversea areas. Within the last month, we completed the phaseout of the depot at Tachikawa, Japan-our last depot in the Pacific area. The base will continue in operation. It will, however, serve primarily in support of tactical units. We still have one depot remaining overseas, located at Chateauroux in Europe. A substantial portion of the supply complex at Chateauroux is being used as a NATO supply center. We will complete inactivation of the depot located at Topeka, Kans. by June 30 this year.

A modernization program is now being undertaken by the commercial air cargo carriers which operate the LOGAIR network. The contractors currently utilize C-46 and C-54 aircraft. During the latter part of 1961, contractors will start placing a number of more modern aircraft in operation. These aircraft have a cargo-carrying capability averaging 13.5 tons as compared to 6.5 tons carried by the C46 and 9 tons by the C-54. They also have a larger loading entrance. This feature will enable us to airlift cargo such as aircraft engines, ground power generators, and other bulk cargo which cannot be accommodated in C-46's and C-54's.

TRAINING OPERATIONS

This budget reflects a decrease in training support costs of $37 million below the level of the fiscal year 1961 program. The fiscal year 1962 estimate is $302 million. A major factor contributing to this decrease in cost is the consolidated pilot training program which I discussed with this committee last year. I can report that this program is well underway and when it is completed we will realize the savings which we discussed with you last April. During the conversion period we have had to reduce our pilot input. This action will result in a production of 1,113 U.S. Air Force pilots during fiscal year 1962. We expect, however, to return to the required 1,500annual pilot production training early in fiscal year 1963.

The changing composition of the Air Force has had its impact on the need for navigator training production. The student output of 2,460 in fiscal year 1961 will decrease to 1,200 in fiscal year 1962.

We are fast attaining an in-house capability in the field of ballistic missile training. This capability allows us to reduce the contract support required. Overall technical training loads will, however,. remain relatively constant throughout the budget period.

AIR ACADEMY OPERATING COSTS

This committee has previously given close attention to cadet training costs at the Air Force Academy. Comparisons have been made. to costs experienced at West Point and Annapolis. I am pleased to report that we have reduced the cost per cadet man-year from $25,820 in fiscal year 1959 to $16,180 during the current fiscal year. This budget forecasts an estimate of $14,294 per cadet man-year for fiscal year 1962. I include all the costs of operating the Academy, together with the military pay and allowances of the military staff and the

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cadets when I speak of the cost per cadet. Looking forward 1 more year toward fiscal year 1963-we expect the cost per cadet man-year to be between $12,000 to $13,000 for cadets taking flying indoctrination training. The cost per cadet will be somewhat less for those cadets not qualified to fly. The authorized cadet peak strength during fiscal year 1963 will be 2,536.

OPERATIONAL INSTALLATIONS

Costs associated with the term "operational installations" include base level operating requirements of the combat forces, as well as several support commands worldwide. A number of significant changes are occurring in this program. The Army will assume financial support of the installation located at Ladd, Alaska. The Navy will, as I have said, take over responsibility for Keflavik, Iceland. The Air Force will, of course, continue to finance the direct expense of operation of the tenant fighter squadron and A.C. and W. sites which will remain tenanted at Keflavik.

A Strategic Air Command base located at Clinton County Airport and a MATS Base (Donaldson AFB) will be transferred to the Air Force Reserve Forces in fiscal year 1962. Five relatively small installations will be inactivated-four of these being located overseas. Annual operating costs will be reduced by approximately $3 million as a result of these actions. Two other installations: Chennault AFB and a base in the Pacific are programed to close by June 30, 1962. Accordingly, we will not realize savings out of these actions until fiscal year 1963. On the other side of the ledger, the operational installations program cost is increased by approximately $10 million since Tachikawa AFB will henceforth be financed here rather than as a logistic cost. There is, however, no net increase to the Air Force budget as a result of this change in budget categorization. Increased costs will result, however, from the addition of 5,400 family housing units to our inventory during fiscal year 1962. Also, the Air Force Security Service is expanding its oversea activities and will be operating at six additional locations during fiscal year 1962. Again, as I mentioned during my discussion of expanding Air Force programs, we will have additional gap filler locations and other primary radar stations in operation during fiscal year 1962.

HEADQUARTERS, USAF

The estimate for Headquarters, Air Force, includes all the expenses of operation at the seat of the Government for the Office of the Secretary and the Air Staff. Provision is also made for operation of the Air Force Command Post and the Air Force share of the Defense Department telephone system.

The budget for fiscal year 1962 is $43 million-an increase of approximately $1 million over the fiscal year 1961 program. Of this amount $34 million is for pay of civilian personnel and related cost which provides for holding our civilian personnel employment level with the fiscal year 1961 program. The increase requested is primarily associated with the cost of maintaining new equipment installed in the Air Force command post and the Joint Chiefs of Staff war room.

To provide instantaneous display of intelligence and warning data new equipment known as ICONORAMA, is being installed this year. This equipment will simultaneously display here the same visual data being received by the NORAD command post from the air defense warning network.

MEDICAL CARE

Medical care to be provided in Air Force medical facilities will average a daily patient load of some 9,000 during fiscal year 1962. This is approximately the same level as that provided in fiscal year 1961. Whereas military personnel strengths remain comparatively level, dependent population is, nevertheless, increasing. Since optimum use of inhouse medical facilities already has been attained, the added dependent patient workload must be carried by civilian facilities. We estimate that the average daily dependent patient load in civilian hospitals will increase from 1,479 in fiscal year 1961 to 1,614 during fiscal year 1962. To support this added requirement, the fiscal year 1962 budget reflects an increase of $3.3 million over the fiscal year 1961 cost of $28 million.

ROTATIONS AND MANEUVERS

The cost category "Rotations and maneuvers" includes expenses for rotation of combat units to oversea areas; joint service maneuvers; Army airborne troop training; as well as continuing exercises to test the capability of the military air transport fleet.

COMMAND OPERATIONS

To support the operations of the 14 major air command headquarters, the attaché systems, Air Force mission activities in South America and Air Force field extension offices, will require $108 million in fiscal year 1962-an increase of $1 million over the fiscal year 1961 program. The principal area of increase is for automation of intelligence processing and analysis activities. Basically the program elements remain level; however, during the latter part of fiscal year 1961 and early in fiscal year 1962, 11 new attaché stations will be activated in Africa. Under the executive agency concept of operating the attaché systems of the three military services, the Air Force will assume financial responsibility for four of the stations and the Army and Navy the other seven. Activation of the new stations is being undertaken due to the increasingly important position that the emerging African nations are attaining.

MAINTENANCE OF FAMILY HOUSING

You will recall that the fiscal year 1961 Appropriation Act reduced our estimate for maintenance of Wherry and Capehart family housing by $10.5 million. The reduction was made because we did not support our requirement with complete accounting data. Additionally, the Congress was advised by certain outside sources that our housing maintenance costs were vastly overstated. An investigation of maintenance performance on family housing, including review of the detail cost records utilized by the Air Force, was conducted by the surveys and investigative staff of this committee over the past several months

at 13 Air Force installations. It is my belief that the report rendered as a result of this investigation will be favorable insofar as it pertains to the method by which we manage the maintenance and operation of our family quarters and as pertains to our budgeted costs.

Of course, Mr. Chairman, this statement was written previous to the release of the report. However, I still stand on the statement as being factual as of today.

The congressional reduction of $10.5 million represents, overall, a cut of approximately 31 percent below the $33.5 million reflected in last year's budget request. In this respect, consider the following factors. The funds requested were to support an average of some 73,000 Capehart and Wherry units. Fixed costs-heat, light, fire protection, garbage disposal, and so forth, approximately $16.9 million. There remained then only $6.1 million to cover expenses for essential maintenance and repair an average of approximately $80 annually per set of quarters compared to an actual need for $230 per set of quarters. Out of necessity, we have reprogramed available funds to meet minimum needs.

When I say "reprogramed" in this particular instance I am talking about earmarking of the funds available over the total year to apply to this particular purpose. We have not actually submitted a formal reprograming report as yet. We wanted to await the results of the House investigating committee's examination; also the preliminary results of the special program which we put in at 4 test stations in accordance with the Senate's desires that the Department of Defense establish a test program at 12 installations, 4 to each of the services. We will, however, submit a reprograming report very shortly.

To have done otherwise would have resulted in excessive deterioration and the concomitant need to incur more excessive repairs in future years.

In further compliance with the expressed desire of the Congress, we have established a system for developing detailed cost records. This system was initiated at 12 Department of Defense installations. The program began on November 1, 1960. Four of the twelve installations are Air Force activities. Monthly reports are rendered by the installations concerned and the Department of Defense will render a consolidated report.

Congress further requested that the Department of Defense investigate the possibility of effecting further savings in family housing maintenance by introducing contractual maintenance procedures. The Air Force has found it more economical to do the job with a combination of Air Force personnel and contractual services. Where it is more economical to do so and where the quality of work would not be impaired, we resort to contractual service. There are installations where the complete function of maintenance is accomplished under contract. At others, there is combined use of Air Force and contractor maintenance personnel. Conversely, at a number of remote locations, such as A.C. & W. sites which have relatively small numbers of quarters, experience indicates maintenance is more readily accomplished by Air Force personnel. Normally, we find that major maintenance or repair projects are beyond the capability of base maintenance personnel. This work is therefore done principally under contract.