Do you solemnly swear that the evidence you shall give before this Senate Investigating Subcommittee shall be the truth, the whole truth, and nothing but the truth, so help you God? Commander BURKHARDT. I do. TESTIMONY OF JOHN BURKHARDT, JR., COMMANDER, SUPPLY CORPS, UNITED STATES NAVY The CHAIRMAN. Will you state your name, rank, and assignment, for the record? Commander BURKHARDT. John Burkhardt, Jr., commander, Supply Corps, United States Navy, commanding officer of the Clothing Supply Office, Brooklyn, N. Y. The CHAIRMAN. Commander, I assume the staff has interrogated you informing you about this matter and you know what the subject of inquiry is? Commander BURKHARDT. They have, sir. The CHAIRMAN. You do not desire counsel? Commander BURKHARDT. No, sir. The CHAIRMAN. You may proceed. Mr. KENNEDY. Commander, how long have you held the position you now hold? Commander BURKHARDT. Almost 2 years, Mr. Kennedy. Mr. KENNEDY. You came in June of 1953 to that position? Mr. KENNEDY. In that position, did you have some dealings with the contract that was awarded to Mr. Harry Lev, for 6,800,000 white sailor hats? Commander BURKHARDT. Yes, sir. We submitted the requisitions to the Armed Services Textile and Apparel Procurement Agency for that quantity of hats. Mr. KENNEDY. The hats were not actually purchased directly by the Navy? Commander BURKHARDT. No, sir. Mr. KENNEDY. They were purchased by ASTAPA? Mr. KENNEDY. Your organization merely submitted to ASTAPA the amount of hats that were needed; is that right? Commander BURKHARDT. That is right. Mr. KENNEDY. But it was their responsibility to whom the bid was to be awarded and how the contract was to be fulfilled; is that right? Commander BURKHARDT. That is right. The CHAIRMAN. Let me see if I understand, Commander. The Navy determined the quantity and quality of the goods that it required? Commander BURKHARDT. That is correct, Senator. The CHAIRMAN. In this instance, you determined you needed 6,800,000 caps for the Navy? Commander BURKHARDT. Yes, sir. The CHAIRMAN. Then you submit that as a procurement request to ASTAPA? Commander BURKHARDT. That is right. The CHAIRMAN. From there on, the responsibility is ASTAPA's to make the purchase, to make the contracts and procure the hats or the goods that you desire? Commander BURKHARDT. Yes, sir. The CHAIRMAN. That is what was done in this instance? Commander BURKHARDT. That is right, sir. The CHAIRMAN. To make it clear, does the Navy submit the specifications of the articles that it desires? Commander BURKHARDT. Yes; they do, Senator. The CHAIRMAN. In other words, you give the plan and the pattern and design to ASTAPA, and the quality that you want? Commander BURKHARDT. Yes, sir. The CHAIRMAN. They are supposed to procure it on the basis of the Navy's specifications? Commander BURKHARDT. That is right. The CHAIRMAN. All right. Mr. KENNEDY. Commander, as I understand it, the Navy actually did not ask all at once for 6,800,000 hats? Commander BURKHARDT. That is right. Mr. KENNEDY. There were two requisitions for hats that totaled approximately that amount; is that right? Commander BURKHARDT. That is right. Mr. KENNEDY. Once again, it was the responsibility of ASTAPA, their responsibility, for joining the two requisitions to make the overall sum of 6,800,000 hats? Commander BURKHARDT. Yes. Mr. KENNEDY. Would you give to the committee the history, as far as the Navy is concerned, of these requisitions, how they came about, and what occurred in ASTAPA, at least as far as the Navy was informed? Commander BURKHARDT. The clothing supply office on December 29, 1952, submitted military interdepartmental purchase request No. 76-3 to the Armed Services Textile and Apparel Procurement Agency for the manufacture of 2,000,016 enlisted men's white hats and 3,312 midshipmen's hats to be made from Government furnished textiles. This MIPR, as it is called, was returned to the clothing supply office by ASTAPA on the 2d of January 1953 because it was not dated, and it was resubmitted to ASTAPA on the 5th of January 1953. Mr. KENNEDY. Could I interrupt there? Therefore, beginning the first week in January, the Navy had requested that approximately 2 million hats be purchased by ASTAPA for the Navy? Commander BURKHARDT. That is right. Mr. KENNEDY. All except 3,000 being white sailor hats? (At this point, Senator Bender entered the hearing room.) Commander BURKHARDT. On the second of April 1953, MIPR 130–3 for the manufacture of an additional 4,816,104 enlisted men's white. hats and 3,996 midshipmen's hats was submitted to ASTAPA by the clothing supply office. On April 14, 1953, Mr. Streicher of the clothing supply office was advised by telephone by Miss Ostroff of ASTAPA that invitations to bid on MIPR 76-3 were ready but were being held up inasmuch as MIPR 130-3 was received and she had been instructed to combine the two MIPR's. Mr. KENNEDY. Did she inform the Navy at that time who had given her those instructions? Commander BURKHARDT. No, she did not. Mr. KENNEDY. Do you know now what position Miss Ostroff held? Commander BURKHARDT. I do not. Mr. KENNEDY. You do not know that she was the buyer on the contract? Do you know who the contracting officer was? Commander BURKHARDT. I believe it was Captain Wool. Mr. KENNEDY. Captain Raymond Wool? Commander BURKHARDT. Yes, sir. Mr. KENNEDY. He was the contracting officer and she was working for him? Commander BURKHARDT. I am not sure of that. Mr. KENNEDY. You do not know? Commander BURKHARDT. I don't know that personally. Mr. KENNEDY. Continue. Excuse me. Commander BURKHARDT. Contract DA 30-352-TAP-1822 for the manufacture of the entire quantity of 6,823,428 hats was awarded to H. Lev. The contract was dated May 20, 1953. On June 3, 1953, the clothing supply office acknowledged receipt of information regarding the combining of both requisitions in a single award to H. Lev, and requested that the contractor give priority to the manufacture of 400,000 size 74 hats which were urgently required. (At this point, Senator Ervin withdrew from the hearing room.) Commander BURKHARDT. The contract was amended on February 5, 1954, to provide for the manufacture of an additional 3,024 midshipmen hats bringing the total contract quantity to 6,826,452. The original delivery schedule for the hats and amendments thereto I have here as exhibit A of my statement. The record of deliveries of hats to the Navy is shown here as exhibit B. As will be noted from these exhibits, the total quantity delivered is less than the contract quantity. The contractor is permitted a 2-percent variation in quantity by the terms of the contract. This variation applies to each size. The contractor is within the variation except for size 7, upon which he is approximately 7,460 hats short. The Navy is going to ask the contractor to manufacture those hats. The CHAIRMAN. Was this contract performed within the time in which it was supposed to be performed? Commander BURKHARDT. The original schedule was not met, sir. The schedule was amended in October 1953. Even so, the contractor was a little late in deliveries. The CHAIRMAN. There has been some testimony here, Commander, that they were slow getting started, because when they took the contract, when the contract was awarded to them, they actually had no plant. Do you have any information about that? Commander BURKHARDT. I have no personal knowledge of that, sir. The CHAIRMAN. You have no personal information on that? Commander BURKHARDT. No, sir. The CHAIRMAN. Do you have a schedule there of deliveries at different dates that will indicate how far the contractor was behind with deliveries according to the contract? Commander BURKHARDT. Yes, I do, Senator. The CHAIRMAN. What is that that you have now before you? Is it a record of deliveries before the contract was amended or afterward? Commander BURKHARDT. I have the deliveries that were originally specified, Senator, but in the comparison I used only the amended schedule, which was amendment No. 2, dated October 1, 1953. The CHAIRMAN. What did the original contract provide with respect to deliveries? At what time were they supposed to have all been manufactured and delivered? Commander BURKHARDT. By July 19, 1954. The CHAIRMAN. That was the original contract? The CHAIRMAN. When was the contract amended and modified to grant an extension? Commander BURKHARDT. In October 1953, sir. The CHAIRMAN. They were unable to comply with the contract by making all of the deliveries by July? Commander BURKHARDT. That is 1953, Senator. The original contract called for July 1954. The CHAIRMAN. For July 1954? Commander BURKHARDT. Yes, sir. The CHAIRMAN. All right. How far was the contractor behind on his deliveries at the time the contract was modified, an extension of time granted? Commander BURKHARDT. This is just by examination of these records, Senator. It will not be entirely exact. It will appear that he was about 1,300,000 short at that time. The CHAIRMAN. At the time the contract was modified to grant him further time he was about 1,300,000 caps behind scheduled deliveries? Commander BURKHARDT. Yes, sir. The CHAIRMAN. It was modified, to extend it from July until what date in 1954? Commander BURKHARDT. Until September 1954. The CHAIRMAN. Until September 1954? Commander BURKHARDT. That is right. The CHAIRMAN. As of September 1954, at the time all deliveries were supposed to have been made under the revised schedule, how far was the contractor behind at that time? Commander BURKHARDT. 861,743. The CHAIRMAN. Was any further extension granted? The CHAIRMAN. There was no further modification of the contract? Commander BURKHARDT. No other amendment; no, sir. The CHAIRMAN. From there on, will you point out what deliveries were made after that date and when the contract was finally fulfilled? That is, except as to the 7,000 hats you say he is still short. Commander BURKHARDT. The final delivery of any consequence, Senator, was in December 1954. He delivered, as of that month, 90,144 hats. In February, we had a delivery of 504 hats which were of the midshipman variety. His final shipment of sailors' white hats was in December, for, as I said, 90,144. The CHAIRMAN. Is there still a shortage? Commander BURKHARDT. Yes, sir, the 7,000 shortage still exists. The CHAIRMAN. Has he been paid for all deliveries? Commander BURKHARDT. No, sir, he has not, to the best of my knowledge. I don't have those records. The CHAIRMAN. You do not have the record of payments? The CHAIRMAN. At the time you issued the procurement request, or requisition, whichever you term it, was this item of hats or caps of urgent need to the services? Commander BURKHARDT. Yes, they were, Senator. The CHAIRMAN. Was the Navy consulted about extending the time of the contract? Commander BURKHARDT. Yes, we were. As I recall it, we were. I don't have anything here to show that. The CHAIRMAN. Why did you agree to an extension? Commander BURKHARDT. We were aware of a late delivery of Government-furnished property, Senator. The CHAIRMAN. A late delivery of what? Commander BURKHARDT. Of the material that he would make the hats from, the white twill, sir. The CHAIRMAN. Do you know why it was delayed? Commander BURKHARDT. No, sir, I do not. The CHAIRMAN. Do you know that it was misshipped, probably purposely, to create delay? Commander BURKHARDT. No, sir, I do not. The CHAIRMAN. You do not have that information? Commander BURKHARDT. I know that it was misshipped, Senator. The CHAIRMAN. You do know it was misshipped? Commander BURKHARDT. Yes, sir. The CHAIRMAN. But you do not know why? The CHAIRMAN. I think you have an extra sheet of these schedules of delivery. I think it may be made an exhibit to the testimony. Commander BURKHARDT. Yes, sir, I have that. The CHAIRMAN. It may be made exhibit 21 with the testimony. (Exhibit No. 21 may be found in the files of the subcommittee.) All right, Mr. Kennedy. Mr. KENNEDY. Under the usual procedure, Commander, even if the two requisitions were joined to make up 6,800,000 hats, it would not have been necessary to make that award all to the same bidder; is that right? Commander BURKHARDT. I am not engaged in the contracting business, Mr. Kennedy. There would not have been any need that I know of, though, for making an award to one contractor. The CHAIRMAN. In the records, the records of the Navy's purchasing of white hats, what is the largest contract that has ever been awarded to your knowledge? Commander BURKHARDT. The largest one before this that I have a record of is in May 1951, a contract for 1,775,000 white hats. The CHAIRMAN. Are you testifying this was most unusual that they had combined those 2 requisitions into 1? Commander BURKHARDT. It had not been done before, Senator. There had not, apparently, been a need for it before or any reason for it. |