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With a packaged presentation such as this, the line items become more meaningful to us.
The CHAIRMAN. We have with us this morning Assistant Secretary of Defense Floyd Bryant. This is the first time that Mr. Bryant has appeared before the full committee in his present position.
The program used to be presented to us by Mr. Floete, who is now over at GSA.
I think the Department of Defense is to be congratulated in choosing Mr. Bryant for the position which he occupies. He, of course, is very well qualified for this important job because of his background as a business executive and former vice president of Standard Oil of California. It was in that position that we have known Mr. Bryant for a number of years.
Indeed, he was our partner, in a sense, in connection with the unit plan contracts when he held that position.
We have always known him as a forthright person. I must confess that he and I have not always been in complete agreement, but our disagreements were perhaps only the natural result of variant interests.
Mr. Bryant is an intelligent and clear thinking person, and I know that his relationship with the committee is going to be mutually rewarding for all of us.
Mr. Bryant, will you please come around, sir?
Now, Mr. Bryant, in your position as Assistant Secretary of the Department of Defense, it is your responsibility to submit to the committee the justification of H. R. 7130.
The committee will be pleased to have you make your statement in your own fashion, without interruption.
Secretary Bryant. Thank you very much, Mr. Chairman, and may I say first that I deeply appreciate those very kind expressions of yours and I know from my experience with you that you meant them. I am deeply moved.
Thank you very much.
Mr. Chairman and members of the committee, it is indeed a privilege to appear before you on behalf of the Department of Defense in connection with the proposed military construction authorization bill for fiscal year 1958.
I should like to briefly summarize the progress which has been made on the previous years' construction authorized by this committee. I shall then provide information on the development of this year's bill, and outline the contents and objectives of its titles I, II, III, and IV covering the Army, Navy, and Air Force projects, and the general provisions.
At this point, Mr. Chairman, I would like to state and with your permission to act accordingly, that I have in my prepared statement certain charts and tabulations which I do not propose to read because they are readily available to the members of the committee and I think that having filed them they will serve their purpose and avoid excess use of time.
The CHAIRMAN. Well, let them be printed in the record as part of your statement.
Secretary BRYANT. Thank you, sir.
First, on the matter of construction progress. I think this is interesting. Of the total of $14,032 million appropriations for military construction from fiscal year 1948 through fiscal year 1957, $13,529 million or 97 percent had been allocated to field construction offices for contract award as of February 28, 1957.
The major portion of this amount, $12,863 million or 95 percent, represents work that has already been completed. During the 12-month period ending December 31, 1956, a total of $1,169,066,300 in construction contract awards were made, and 93 percent of this amount was awarded by formally advertised competitive bids. This I understand is in accordance with public law, the expressed desires of this committee, and the policies of the Department of Defense.
Development of the fiscal year 1958 bill: After their initial planning and preparation at the respective Army, Navy, and Air Force bases, the projects comprising the annual authorization program are consolidated and screened by the various intermediate service headquarters. Following this, these projects are reviewed at the headquarters of the three respective departments. After transmittal to my office, each line item in these programs is carefully reviewed and all questionable items discussed with representatives of the three departments. As a result of this latter review, the programs submitted by the three departments were reduced from their original total of $3,641 million to an approval total of $2,098 million.
Following this reduction, the departments were required to still further reduce these programs to a total of $1,770,315,000, in order that a proper balance could be maintained between the new and the residual authorizations to be funded from fiscal year 1958 appropriations.
I am sure that this committee is aware of the detailed review and screening procedures which are followed within the Office of the Secretary of Defense in the examination of our annual construction authorization bill. These include a careful study of each project by members of my office and by members of other interested offices of the Secretary of Defense.
Each line item is reviewed from the standpoint of necessity, scope, cost, location, and proper design. This year, we have made special efforts to eliminate new projects on which no previous work had been undertaken, and which could be deferred to future years without seriously affecting military operations. I can therefore assure you that this entire program received the closest scrutiny.
Finally, after our Department of Defense review of this bill was completed, the Bureau of the Budget conducted a still further review based on the most rigid concepts of economy, such as deferring the replacement of many World War II structures and rephasing certain new work until future years, as a result of which the program was reduced to the amounts shown in titles I, II, and III of the bill now before this committee, which total $1,561,338,000, and as the chairman has indicated to you the amounts broken down in titles I, II, and III, as he stated.
This final reduction conforms to a corresponding reduction of $200 million in the fiscal year 1958 new obligational authority which was made by the President on April 18, 1957. We feel that this is the minimum amount needed to satisfactorily support the missions assigned to our military forces.
You will note at this point that I have given a chart here showing the status of military construction authorizations, so that the committee can review these through fiscal 1948 to date. And in consonance with the admonition of the chairman, I am happy to say that there has been a reduction in the carryover of unfunded obligations due to the statutory requirements and other devices which are in our opinion, as the chairman's opinion, necessary to keep this unfunded balance from growing and hopefully to be further reduced.
As it stands today, just briefly, as you will see from the chart in front of you, the residual authorization to be available at the end of fiscal 1958 totals $1,933 million, whereas the same figure, residual authorization, to be available at the end of fiscal 1957 was $2,169 million.
Status of military construction authorizations: In order that the committee may review the status of all military construction authorization through fiscal years 1948 to date, the following summary is provided (all figures represent $1 million):
Total authorizations fiscal year 1948 through fiscal year 1957.-
Law 968, 84th Cong
Total of fiscal year 1957 residual and proposed fiscal year
1958 authorizations.. Less estimated authorization to be repealed by sec. 406 of fiscal
year 1958 bill.. Less estimated authorizations available for rescission as reported
under provisions of sec. 408 (b), Public Law 564, 81st Cong --Less proposed fiscal year 1958 appropriation
Resiäual authorization to be available at end fiscal year 1958.
Now, this tabulation illustrates that the amount of residual authorization available to the three military departments is being steadily reduced each fiscal year. This means that each year the lowest priority projects are eliminated through the annual rescission of unfunded authorization over 5 years old. Consequently, the balance of residual authorization left available is steadily being reviewed, and consists of both urgently needed projects, and other projects for which the requirement has changed due to revisions in missions and weapons.
The military departments are each using part of their annual construction appropriations to assure continued progress on the most urgent of these residual projects. The balance of their annual appropriation is applied to essential new authorizations.
It is necessary that a proper balance and control be maintained between these two segments of the program, so that construction can satisfactorily proceed on both residual and new authorization, at a rate which is proper relationship to the funds the Defense Department can make available for military construction.
In order to achieve this, the amount of new authorization requested this year has been closely limited and consists mainly of additional increments on projects already underway, items required to support new weapons developments, and essential modernization of our bases. It is intended to fund and utilize all of this new authorization during fiscal year 1958.
Summary of the bill: In order to present to the committee in brief form the major program objectives which are proposed by this legislation, a summary of the most important projects in each of the three titles is given, showing the amount and percentage of authorization devoted to each. A further analysis is also provided showing a summation of the various categories of facilities for which authorization is requested in each of the three titles.
The page following, you will note, is that summary of program objectives contained in title I of the Army, which I think is self-explanatory. It is followed, on the next page, so that the total comprises the $323 million authorization request for the Army.
The following page No. 8, I think, on your list there, is an analysis of the Army's request by category type of facilities to be provided and the percentage and money allotted to each of those types.
The Navy summary of program objectives follows, in summary form to that which I gave for the Army. And it amounts as you will see in total to $135,099,000. Also, the analysis of the category type of facilities for the Navy is likewise made a part of the record summary.
Similar charts or statements, summaries, are made with respect to the Air Force, totaling $802,914,000, and also the analysis of the type of facilities which have been requested by the Air Force. That winds up on page 16.
Summary of program objectives contained in title I (Army)
$123,000,000 for construction of classified facilities required for Nike
and other antiaircraft defense measures in both continental United
States and overseas. $48,000,000 for troop housing in the continental United States and over
seas areas, including $ 15 million for permanent barracks, messes, and administration and supply buildings, to accommodate 14,808 enlisted men, and permanent bachelor officers' quarters spaces to accommodate 360 officers. The remaining $3 million will provide 1,447 semipermanent barracks spaces and 34 bachelor officers' quarters spaces at temporary installations in the continental United States and in over
seas base-rights areas.-$21,000,000 for essential airfield and heliport facilities at major installa
tions throughout the United States and in overseas areas to support
the Army's aviation program.. $13,000,000 for 415 units of family housing in the continental United
States and overseas territories and possessions. One hundred and fifty of these units are required for officer personnel stationed at bases in Alaska, where housing needs cannot be fulfilled, because of area and cost limitations, under the provisions of the Capehart Act. Two hundred and fifty units will be at antiaircraft sites and 15 units
at sites along the recently completed Alaska pipeline_ $21,000,000 for a general supply depot and 3 storage facilities with mis
cellaneous support items along the line of communications in France, $15,000,000 for research and development facilities in the continental
United States, including $2.5 million laboratory at Dartmouth University to support studies on Arctic construction problems; $7.5 million for research and development facilities at White Sands Proving Ground; and other research and development facilities at various stations,
Summary of program objectives contained in title I (Army)—Continued
Summary of program objectives contained in title II (Navy)
marine aviation units, including $10.5 million at 2 continental and 2
and NAF South San Diego Bay, Calif---