II. Matériel Experience Factors: Rate of Consumption Replacement Factors. New Rate of Reparable Returns Wearout Rate Time Between Overhauls Attrition Rates III. Total Inventory: In Stores In Use In Transit IV. Pipeline Factors: AMC Processing Time Manufacturer's Lead Time Pipeline Time Authorized Stock Levels APPENDIX B. MANAGEMENT PROGRAMS 1. Dr. Mace: (Harvard University) "Study of the Computation of Requirements Within the Air Force." (Jan. thru Mar. 51.) 2. Robert Heller and Associates: "Organization and Management of Supply and Maintenance." (1950.) 3. "Mathematical Study of the Logistic System of the Air Force." (1950.) 4. Dr. Learned: (Harvard University) "Study on Methods of Computing Requirements for Engines." (Current.) 5. Dr. Bliss: "How Air Transportation Can be Used to Effect Changes in our Logistic Operations, Especially in the Field of Distribution." (Current.) 6. Sutherland Co.: "Managerial Control and Procedures of Requirements Computations and Budgeting." (Current.) 7. Mr. Zuckert: "Policy on Supply of Common Items." This was the culmination of detailed studies in this field over several years. 8. Clothing: Continuing detailed studies are being made on the assumption of distribution of clothing and on the operation of Monetary funds connected therewith. 9. Integration of Common Items of Supply. (Current.) 10. Revitalized Base and Depot Supply (Current): During the past several months a concerted effort has been made to revitalize base and depot supply, at both management and operational levels. Major improvements were accomplished in the following areas: a. Management Improvement Areas: 1. Organization of Consolidated Base Supply. 2. Base Supply Personnel Reporting. 3. Base Supply Activity Reporting. 4. Career Field for Supply Officers. 5. Space Utilization. b. Operations-Base Supply Level: 2. Requisition Control. 3. Cardatype Requisitioning. 5. Forms Simplification. 6. Mobile Delivery Systems. c. Operations-Depot Level. 1. Project WISE. 2. Microfilming. 3. Space Utilization. 11. To determine the extent to which current air freight capacity can be economically utilized in Air Force supply distribution. (Current.) 12. Integrated Accounting System. (Cost, budget, fiscal and property accounting) (Current). 13. Review of the Air Force Mechanized Property Accounting System. (Current.) 14. Air Force all electronic accounting system development. (Current.) FEDERAL SUPPLY MANAGEMENT (Overseas Survey) MONDAY, OCTOBER 22, 1951 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON INTERGOVERNMENTAL RELATIONS OF THE COMMITTEE ON EXPENDITURES IN THE EXECUTIVE DEPARTMENTS, Juneau, Alaska. The subcommittee met Monday, October 22, 1951, at Federal District Courthouse, Juneau, Alaska, Hon. Bill Lantaff, acting chairman of the subcommittee, presiding. Members of Congress present: Bill Lantaff, acting chairman; Cecil M. Harden, and Charles B. Brownson. Staff representatives present: Christine Ray Davis, chief clerk; Thomas A. Kennedy, general counsel; and Ray Ward, Bureau of the Budget. Juneau, Alaska, Government representatives present: Edgar Hales, management officer, Geological Survey; Marvin V. Ripke, administrative officer, Bureau of Indian Affairs, Alaska Native Service; Charles G. Burdick, Assistant Regional Forester, United States Forest Service; Vance M. Blackwell, office engineer, Bureau of Public Works; Ben Furness, administrative officer, Fish and Wildlife Service; and Robert Haag, supply and property officer, Alaskan Road Commission. Mr. KENNEDY. Mr. Lantaff, the record should show that the subcommittee separated into two units this morning: one group, with Mr. Bonner presiding, is examining certain Coast Guard activities in a hearing at another location in this building; this group, under your direction is interested in problems of supply management. In this instance, our supply interest concerns General Service Administration relationships with Federal agencies which it serves in the Alaskan area. Mr. LANTAFF. The hearing this morning will come to order. The Expenditures Committee of the House of Representatives, of which this is a subcommittee, has been actively working in the field of supply management for the past several years. You will appreciate our concern in this area since 20 to 50 percent of available appropriations are annually expended for supplies and equipment. This, of course, means billions of dollars. I think we all know that economies can be made in these expenditures. Frankly, economies must be made. The cooperation of everyone is solicited in attaining this objective. You are all aware of this situation and also of the national NOTE.-Asterisks denote classified material deleted for security reasons. debt, which may reach the $300 billion level. You also know that we are in an emergency hour which will call forth appropriations and expenditures of 60, 70, and 80 billions of dollars in the years to come. On July 1, 1949, the President signed Public Law 152, which set up the General Services Administration. As all of you know, it was the intent of Congress in adopting this law to provide the Government with an efficient supply system. We realize that the agencies operating in Alaska have unusual supply problems due to the distance from continental United States, the limited local supplies, and other factors. We are aware also that the Federal Supply Service of General Services Administration has been supplying services of various kinds to the Alaskan agencies. Since the Expenditures Committee sponsored Public Law 152, it has the responsibility of following up to see what the experience to date has been, and whether some changes or added emphasis may be required at this time. I will ask the representatives of the various governmental agencies here this morning to come up in order, and if you will take a chair here in front of the microphone and identify yourself, together with the name of your agency, why we can then proceed. STATEMENT OF EDGAR HALES, MANAGEMENT OFFICER, GEOLOGICAL SURVEY, DEPARTMENT OF THE INTERIOR Mr. HALES. I am Edgar Hales, Management Officer with the Geological Survey. Mr. LANTAFF. What are the general problems of your agency in connection with supply? Mr. HALES. Our greatest problem in the Territory of Alaska with regard to procurement of both supplies and equipment is in getting delivery in the Territory in time to activate our summer field season. You may or may not be familiar with the fact that the Geological survey operates for the most part during the summer months in Alaska. That being the case, it is well known that the seasons are very short, and we have to start our procurement program along in November or December in order to have our supplies and equipment in the Territory by the end of the next May or the first of the coming June. We have found great difficulty in getting delivery by these deadline dates, not only for equipment but for food supplies-subsistence supplies. We operate with a great number of field parties in the Territory who go out during this summer season. Now if these supplies are not on hand by the deadline date, it means a great expenditure so far as dead time is concerned for employees waiting for supplies and equipment to get into the Territory. That, up to this date, has been our biggest problem. Mr. LANTAFF. What delays have you experienced in delivery from GSA in Seattle? PIECE-MEAL DELIVERY OF GEOLOGICAL SURVEY SUPPLIES Mr. HALES. The biggest problem that we have had along that line has been due to the fact, I believe, that when we submit requisitions or purchase orders to the Federal Supply Service in Seattle, let's say, for instance, a bill of food supplies, GSA sublets these orders to various suppliers throughout the northwestern part of the United States, particularly. These suppliers, then-some of them fill the order pretty promptly-some of them don't-and our supplies then come in helter-skelter, or bit by bit. We have to accumulate this as it comes in and try to get all of our supplies consolidated here in Juneau in order for our field men to take off. That has been one of our biggest problems. Mr. LANTAFF. In other words, the General Services in many cases does not consolidate your requisitions for supplies and send them to you in the next shipment? Mr. HALES. That is right. Mr. LANTAFF. Do you have warehousing facilities here in Juneau? Mr. HALES. Oh, yes; yes, we do have. Mr. LANTAFF. And do you have to redistribute throughout the Territory? Mr. HALES. That is right. Mr. LANTAFF. How many distribution points do you have? Mr. HALES. Three chief points-we have one at Juneau; then we have another at Anchorage and Palmer, and our next point then is Fairbanks. They are our three main distribution points. Mr. LANTAFF. Then all of your supplies and equipment, as well as foodstuffs, are procured through the Federal Supply Service. Mr. HALES. Yes, for the most part. Now in procuring this stuff and in ordering it from Federal Supply, very frequently we order delivery to these various points in Alaska in order to eliminate back shipment from Juneau, and that has been another source of a great deal of concern for everyone in the Survey the fact that our field men come a lot of them don't come to Juneau but they come to these other outlying points in order to take off for their field activities. When they come and are ready to go, in cases where we find that their supplies and equipment are not there for them to pick up and go on to the field, you can well imagine the lost time that we have. Mr. LANTAFF. Is there a Federal warehouse here in Juneau, or does your agency have its own AGENCIES IN ALASKA HAVE OWN STORAGE FACILITIES Mr. HALES. There is no Federal warehouse that I know of. For the most part the various agencies have their own storage facilities, I know we do. Mr. LANTAFF. How much rent do you pay for that? Mr. HALES. We don't have to pay any rent. We have some buildings we got from the Army on a use-permit basis. Mr. LANTAFF. You have ample facilities there? Mr. HALES. Yes, we do. Mr. LANTAFF. Sufficient for your own use or for others too? Mr. HALES. Well, we have plenty for our own use and have sublet a great deal of space to various other agencies for storage purposes. Mr. LANTAFF. How do the prices of the equipment and supplies which you secured through Federal Supply Service compare with prices paid prior to this organizational set-up? |