1 Reimbursements from non-Federal sources derived from utilities and services furnished to private contractors.

Mr. MAHON. The committee will come to order. We will proceed with our hearings.

I wish you would give us a statement, General Wilson, in regard to operation and maintenance requirements for the Air National Guard. You have been before us earlier this year and, of course, we always are glad to have you.

Will you please proceed?

GENERAL STATEMENT

General WILSON. Thank you, sir.

Mr. Chairman and members of the committee, it is a distinct pleasure to return to these hearings to present our request for funds under the operation and maintenance appropriation, Air National Guard, for fiscal year 1962. In presenting my previous request for funds under the National Guard personnel, Air Force Appropriation, I attempted to give you an overall picture of our program, both in terms of past and present accomplishments as well as our plans for the future. In so doing, you will recall that I discussed our total program so you would have a comprehensive understanding of how we are trying to carry out your wishes.

Before getting into the justification of our estimates under this appropriation for fiscal year 1962, I would like to speak briefly of the current year because of certain significant actions and changes. I am sure that several of the members of this committee will recall that during the closing weeks of the previous Congress, this appropriation was increased by $11.3 million to provide financial support for a late change in the Air National Guard program which was the conversion of 14 squadrons from F-86 to F-102 aircraft, on a phased basis, by the end of this fiscal year. However, only seven Air National Guard squadrons have converted to F-102's. The lesser number of F-102's allocated to the Air National Guard was a result of other actions related to the Air Defense Command which made it imperative that the Air Force retain a greater number in the active inventory.

It is specifically for this reason that I feel it is incumbent upon me to report the stewardship of these funds to this committee.

I will speak first of the F-102 program. As stated previously, the initial F-102 program would have equipped the Air National Guard with 14 squadrons by the end of fiscal year 1961, phased in by calendar quarters. Actually, seven squadrons were converted but they were all converted prior to July 1, 1960. Therefore, funds were required for a full year's operation for 7 squadrons as compared to the 14 squadrons which were phased throughout the year which will result in the use of the major portion of the amount that was appropriated.

Secondly, and of considerable impact, is the very recent conversion of five squadrons to KC-97 aircraft. This represents an acceleration of conversions that were not originally scheduled until late fiscal year 1962. The "breakage" in the F-102 program provided this appropriation with the funding flexibility required to accept these conversions and finance the increased cost of maintenance and spares required in support of the KC-97's.

We are happy to be able to respond to this change in the program at this time since it gives us as much as a year's advancement in attaining an operationally ready status in this mission.

The changes I have mentioned are indicative of a constantly changing and improving Air Force posture.

Unprogramed changes in the Air National Guard are perennial and may appear small in comparison to those which occur in the active Air Force; however, it must be emphasized that the unprogramed conversion of even a few Air National Guard squadrons represents a significant percentage of our aircraft inventory and the attendant increase in costs cannot normally be absorbed within this single appropriation without seriously impairing our mission capability.

In this respect, I point out that changes subsequent to the development of this budget estimate create a financial problem not reflected herein; that is:

(a) The KC-97 conversions, I mentioned above, are in this budget request on a phased input basis throughout fiscal year 1962, whereas they are actually on hand now.

(b) An increase in maintenance and spares costs has occurred since this budget estimate was developed.

(c) The most recent change to the program will place 26 fighter squadrons on Air Defense Command 24-hour runway alert, whereas the budget request before you provides for 22 squadrons on alert, 4 on 24-hour and 18 on daylight.

At this point, Mr. Chairman, I would like to digress from my prepared statement and respond to Mr. Ford's question pertaining to my previous testimony in support of our request under the National Guard personnel, Air Force appropriation request, for fiscal year 1962.

In response to questions by members of this committee, I stated that beginning with July 1, 1961, our alert program will be expanded to 26 squadrons on a 24-hour basis. I further stated that this program change occurred after the budget estimates were approved and submitted to the Congress and that the estimates as submitted did not include funds in support of the additional flying hours required in support of this program change. I also stated that due to this program

1

change our operation and maintenance appropriation request as submitted was deficient by a little over $2 million. As brought out in their testimony by other Air Force witnesses, other program changes such as the accelerated conversion of additional C-97 squadrons and associated program changes have resulted in a total deficiency under this appropriation of approximately $3 million.

Now to return to the budget request for fiscal year 1962. In order to avoid repetition and to be considerate of this busy committee's time, I would like to proceed immediately to a discussion of what our "Operation and maintenance" appropriation request contains this year.

As you may know, our operation and maintenance funds primarily support our flying hour program. The flying hour program is our major means for realizing the goals of operational and combat readiness. Almost all of our ground training, our equipment, our real. estate, and our presonnel are devoted to insuring full return from every hour flown in support of Air National Guard training objectives. The flying hours contained in current estimates are computed on the basis of 125 hours per tactical pilot and 150 hours per tactical support, a standard established several years past. Field commanders from ADC, TAC, and MATS have seriously questioned the adequacy of these hours under current day deployment practices and complexities of today's weapon system. Frankly, I share their conviction. Air Force peacetime planning factors recognize a minimum requirement of 140 hours per tactical pilot and 200 hours per tactical support. Our' pilots have demonstrated a capability and desire to accomplish an increased flying hour program. I will assure you that within our financial resources capability, we will make every effort to maintain our high standards of operational readiness.

This request for fiscal year 1962 in the "Operation and maintenance" appropriation is $194.4 million. These funds are to operate and maintain our aircraft and bases.

AIRCRAFT OPERATION AND MAINTENANCE

The program for fiscal year 1962 provides for the operation and maintenance of additional transport and air refueling squadrons. We are currently converting several of our units to these new missions and will continue these conversions through fiscal year 1962.

The flying hours in this estimate, as I just mentioned, are based on each jet pilot receiving 125 hours per year and each transport pilot flying 150 hours. We are estimating approximately $81.7 million to operate and maintain Air National Guard aircraft during fiscal year 1962. These funds provide for costs of aircraft maintenance spares, spare parts and supplies, fuel and oil, and depot maintenance.

BASE OPERATION AND MAINTENANCE

Base operation and maintenance has been estimated at $109.6 million. I would like to classify base operation and maintenance in two. sections.

AIR TECHNICIANS

First, I would like to discuss our air technicians which is estimated at $87.8 million. Our air technicians are full-time civilian employees who are responsible for the day-to-day operation of our bases and maintenance of our equipment. These State employees who are paid with Federal funds are required to be members of the Air National Guard. They perform, for the most part, the same duties in their civilian capacities as they do as military members of the guard. They are carefully selected and their experience level is usually substantially greater than other members of the unit. We are continuing the manpower surveys I described last year and are realizing substantial manpower savings by improving efficiency and economy of operation. Such managament actions are vital for the higher performance aircraft we are receiving which demand a higher level and a greater amount of maintenance manpower. We will continue these efforts, for proper maintenance is a prime factor in the operational capability and safe operation of our aircraft.

OTHER BASE OPERATION AND MAINTENANCE

Other base operation and maintenance costs account for $21.8 million. These include expenses incidental to local housekeeping, service contracts, travel of military and civilian personnel, local purchase of supplies and services, maintenance of vehicles and equipment, base communication costs, and transportation costs involved in the distribution of materiel.

The balance, or approximately $3.1 million, is for expenses incident to field training, training aids and supplies, major repairs of existing facilities, medical equipment and supplies, hospitalization costs and servicewide support costs for the Air National Guard.

To refresh your memory, I might explain the service contract because it is unique and peculiar to the National Guard. Under the service contract concept, the States enter into a voluntary agreement with the Federal Government to pay 25 percent of the costs of the maintaining facilities at our bases. We pay 75 percent, except where the facility is completely at the convenience of the Federal Government, such as permanent training sites for which we pay 100 percent. Gentlemen, I have tried to present a concise statement of our requirements for operation and maintenance funds in fiscal year 1962 without omitting anything that might be of interest to this distinguished body. By way of summary I would like to say that our major emphasis for fiscal year 1962 will be on advancing still further toward our goal of full combat readiness.

Your strong support of the Air National Guard in the past has enabled us to bring this organization to a level of ready firepower that has never before been achieved by a reserve flying force. With the continued support, cooperation and interest of the Air Force and the several States, the Commonwealth of Puerto Rico, and the District of Columbia, I am convinced we will continue to raise this capability to the level this Nation's defense interests urgently require. Further, the Air National Guard stands ready to assume increased responsibilities as an aid to the Regular Establishment in fulfilling its peace

time mission, besides constantly seeking more economical ways of accomplishing our training. We will continue to explore ways and means of achieving economies in the overall defense structure through the accomplishment of regular missions as a byproduct of the Air National Guard training program. It is my sincere opinion that the Air National Guard has demonstrated its capability and its capacity for further growth in such a manner as to warrant your continued support.

Mr. Chairman, the members of my staff and I are ready to provide you with any further information you may desire.

Thank you, Mr. Chairman.

Mr. MAHON. Thank you, General Wilson, for your statement.

JUSTIFICATION OF THE ESTIMATE

We shall place in the record at this point pages 1, 2, 4, 5, 7, 8, 9, 13, 14, 18, 24, 29, and 33 of the justifications.

(The pages referred to follow :)

Project 410: Operation of aircraft-Summary of requirements