8. Still another directive, that of April 1951, transfers owner of and defines Army and Air Force supply responsibility for sele items of enlisted men's clothing and equipage. Responsibility self-support of these items was placed on Air Force as of Apr:

1951.

9. Short-range (prior to July 1, 1954), logistical support will c tinue to be furnished Air Force by Army until agreements are. proved at departmental level and transfer of responsibility is actu

made.

Log Div, Sup Br

Bonner Committee
Nov '51

prescribed schedules for accomplishment of the transfer. cation and transfer of logistical responsibilities and is maintaining 10. This command has implemented all directives concerning allo

X. SUPPLY COORDINATION

Europe has been covered in the previous presentation. 1. Supply coordination between EUCOM, Navy, and USAFE in

ing common planning information and data to the technical services, supply policies, standardizing procedures whenever possible, providthe seven technical services. This is accomplished by providing 2. The Director of Logistics, EUCOM, coordinates the actions of

Scrap 45-49

300

Consumed 45 - 49

3,630

establishing balanced levels of supplies, promulgating SOP's (EUCOM circulars) for command-wide guidance, and by making staff visits to units, installations, and subordinate headquarters, as well as to the technical service divisions.

3. In short, Logistics Division translates plans provided through or by the Operations, Plans, Organization and Training Division into a logistic "sketch" which is passed on to the technical services. The technical services develop the "sketch" into detailed blueprints and proceed to execute the tasks outlined. Technical service detailed plans, as well as their execution, are regularly examined by Logistics Division to insure conformity with the original concept. Coordination is effected at the lowest levels possible, thus reducing time spent in funneling papers upward through channels.

4. Likewise, Logistics Division monitors coordination between the technical services in cases that cannot be resolved between themselves. 5. Supply coordination in EUCOM is a real, live matter. Without it, we would not be able to receive the Army and Air Force augmentation troops as we have been doing. EUCOM and USAFE have been working in daily contact to make our stocks satisfy all requirements. The same necessity has emphasized coordination among our techical services. In addition, we are constantly coordinating with Department of the Army in supply details in order to attain a wellrounded system of supply for the support of the EUCOM mission. 6. I will be followed by Colonel Harvey who will speak on "Procurement."

CHART 9.—Responsibilities after allocation, until physical transfer

1. Prepare separate forecasts of requirements-Army-Air Force

2. Establish separate stock levels-Army-Air Force

3. Maintain separate availability listings-Army

4. Maintain separate supply control records--Army

5. Prepare separate Army-Air Force requisitions on zone of the interior for same items-Army

6. Maintain separate records on status of zone of the interior requisitions-Army 7. Maintain separate records on status of local procurement—Army

FURTHER STATEMENT OF COL. GEORGE A. HARVEY, CHIEF OF PROCUREMENT, LOGISTICS DIVISION, EUROPEAN COMMAND Colonel HARVEY. Gentlemen, my discussion will cover briefly procurement by the European Command.

Our basic procurement function is to obtain those items, needed for our forces here in Europe, which are not obtained by normal requisition procedures from supply sources in the United States.

Procurement functions and responsibilities are carried out by the various technical services of this command, following in general the same responsibilities as are assigned to the Department of the Army chiefs of technical services. Similarly, the EU COM Logistics Division bears the same relationship to its technical services as the Department of the Army G-4 has to the chiefs of technical services in the United States, in establishing and implementing coordinated and effective procurement policies and procedures.

CATEGORIES OF EUCOM PROCUREMENT

EUCOM procurement is divided into two categories which are quite different, DM procurement and dollar procurement. Although each has its own legal basis and its individual procedures, they are coordinated and controlled to obtain our requirements from the European economy without duplication.

DM procurement may be defined as that which is accomplished in Western Germany, using occupation cost DM funds. It is limited to meeting the needs of the United States forces in Western Germany. This type of procurement is not affected by the familiar "contracts" which are legally binding on both the supplier and the buyer. Under the Hague Conventions, the commander in chief of the occupying forces may levy upon the economy of the occupied country to meet the needs of his forces. Based on this authority, the occupation forces issue orders that necessary supplies or services will be furnished by the designated individuals or agencies. International law, as implemented by the Allied High Command and the United States High Commissioner of Germany, also establishes the limitations upon such levies that are necessary to permit the economic rehabilitation of the country and to insure maintenance of the standards of living for Germany provided by the Potsdam agreement.

Procedurally, DM procurement is accomplished by issuing a formal written order to the supplier to furnish the specified supplies or services when and where required. In the United States area of Germany this document is known as a "requisition demand." Under international law, a fair price must be paid by the occupation forces for the items so demanded. This price may be fixed by the occupation forces, and is usually comparable to the prevailing market prices for like items. Payment is made after the delivery of the items by furnishing the supplier a "requisition receipt." This receipt is, essentially, an order by the occupation forces to the German Occupation Cost Office to pay to the named supplier the amount that is stated on the requisition receipt. Such payments are booked as occupation costs. Individuals who are authorized to issue such demand and payment documents are appointed by a published order of the appropriate commander.

LOCAL PROCUREMENT BY ARMY TECHNICAL SERVICES

Our technical services perform centralized procurement of items that are to be issued from depot stocks. The procurement oflices of the technical services are located throughout Western Germany so that they may most effectively contact the firms and agencies that can provide the items needed by the different services. The Quartermaster, for example, has procurement teams located in almost every military post, as it procures in Germany hundreds of line items in large quantities. The Medical Division has only one procurement office, which is here in this headquarters. Because of the specialized nature of its requirements and the relatively small amounts required, this office is sufficient to perform the medical procurement mission. These central procurement agencies of the technical services procure such items as office and quarters furniture, vehicle replacement or

spare parts, hospital and dental equipment, electronic equipment, firefighting equipment, and so forth. The military posts, which are subordinate commands, procure services and facilities within their areas of responsibility as well as those items which are not economically adaptable to depot stockage and issue. An example of this type of procurement is the demand for replacement parts for the many types of German civilian heating, lighting, and plumbing equipment that is installed in the facilities used by our forces. Local procurement of these items is far less costly than superimposing the thousands of such items upon the depot systems.

*

The items that will be procured from the German economy are determined by the technical services in accordance with established stock-control levels and availability in Western Germany. * * Requirements for items to be procured from the German economy are consolidated by Logistics Division and are submitted to the High Commissioner of Germany for allocation 75 days in advance of the calendar quarter in which the procurement is to be made. This action particularly aids us in meeting our needs for items deemed to be in critical or short supply. These allocations, when approved by the High Commissioner of Germany, are published by that office as "mandatory assignments." This programing not only provides for our requirements but also precludes the exploitation of the local economy and aids in the economic rehabilitation of the country.

The principles of the ASPR's and the APP's, which safeguard the best interests of the United States in expending public funds, are embodied in EUCOM directives governing DM procurement. The statutory provisions and clauses of these regulations are not applicable to DM procurement which follows the Hague Convention.

General Bradshaw earlier presented a chart which showed the distribution of occupation costs. This chart shows not only the increasing amount of supplies being procured from the German economy but also shows the accelerated rate of procurement obligations.

Let us now consider dollar procurement for a few minutes. This may be considered as that procurement made by EUCOM agencies in Europe using dollars that have been appropriated to the Department of the Army. It is not limited to the needs of our forces in Germany but includes any procurement action which may be directed, for which dollars are authorized. This type of procurement is fully governed by the ASPR's and the APP's. The negotiations, documentation, and awards are the same as followed by Stateside procurement agencies. Procedures and statutory requirements followed in the United States are modified only to the extent authorized by the Department of the Army directives.

OFFSHORE PROCUREMENT IN NATO PROGRAM

Our dollar procurement falls into two classes: that for EUCOM's normal needs using dollars appropriated to EUCOM, and for offshore procurement as the Department of the Army purchasing agency in Europe. Prior to this fiscal year, dollar purchases were relatively small and were limited largely to perishable subsistence. However,