It should be noted that this goal was established before the Berlin crisis which resulted in an additional materiel requirement of about $1,750 million largely for aircraft, missiles, vehicles, and electronics. Because of the emergency nature of this procurement, the items must be obtained from existing suppliers who, for the most part, are not small firms; therefore, it is anticipated that this will have an adverse impact on the small business percentage. The accounting system is being revised to obtain figures on the precise effect of the Berlin "addon."

Defense small business subcontracting program.—It may be seen from the following table that in addition to prime contract awards, small business participates extensively in military subcontract work. The table below shows that over the 5-year period from 1957 to 1961, small business has been receiving an average of $3.4 billion per year in military subcontract work from large prime contractors, in addition to the $3.7 billion average of prime contract awards from the Department of Defense, or an average of $7.1 billion in military prime contract and subcontract work combined. Over this period, total military prime contract awards to all business firms averaged $21.6 billion per year. Thus, the small business share has been about one-third of all military procurement from business firms.

Military prime contracts of $10,000 or more awarded to firms in areas having a substantial labor surplus totaled $2,007,622,000 in July-September 1961. This amount represented 42 percent of all contracts of this size which were placed during the quarter, compared to the peak of 54 percent placed in the fourth quarter of fiscal year 1961 (April-June 1961) and to 29 percent for all of fiscal year 1961.

The number of major areas designated by the Department of Labor as having a substantial labor surplus declined from a peak of 101 at the end of March 1961 to 72 at the end of September 1961. Since this time, the Department of Labor has further reclassified major areas, reducing the total number with substantial labor surplus to 60 at the end of November 1961. This undoubtedly will decrease both the amount and percentage of contracts reported for labor surplus areas in the second and subsequent quarters of fiscal year 1962.

Set-asides and tie-bid preference procedures were used to award contracts amounting to $11,940,000 in the July-September 1961 period.

INDUSTRY INTEGRATION COMMITTEE OPERATIONS

Reports on integration committees are submitted quarterly to the Congress through the Office of the Attorney General as required by section 708 of the Defense Production Act of 1950, as amended. The latest report was submitted to the Attorney General by the Judge Advocate General of the Army on October 27, 1961.

INDUSTRIAL DISPERSION PROGRAMS

During the 3-month period from October 1961 through December 1961 the Office of the Assistant Secretary of Defense (Installations and Logistics) received 102 dispersion inquiries, requesting advice on whether proposed locations of important activities met dispersion standards with respect to proximity to key industrial facilities and major military installations. Of the 102 sites analyzed, 68 locations, or 66.7 percent, met dispersion standards.

The 102 inquiries received during this period is an increase of 60, or 142.9 percent, during the same period of the previous year. As was reported for the last quarter period of the previous year, there was, during this quarter, a substantial increase in the number of dispersion inquiries received from private industry (from 21 to 62), while inquiries from Federal agencies were almost identical (39 versus 40). During this quarter only one Federal agency, namely, the Office of the Assistant Secreary of Defense (Civil Defense), requested advice on dispersion matters. These requests related to locations under consideration as possible emergency relocation centers for local, county, and/or State governments.

The source and number of inquiries processed during the last quarter of fiscal year 1961 is summarized as follows:

NATIONAL MOBILIZATION PROGRAM PLANNING AND MOBILIZATION MATERIAL REQUIREMENTS

National mobilization program planning

Under the provisions of Executive Order 10952, the President transferred the basic responsibility for civil defense to the Secretary of Defense. Insofar as it does not interfere with its primary mission of conducting military operations, the Department of Defense provides military support to civil defense. Both civil defense and military operations are dependent for their support on resources made available from the national economy.

In order to evaluate the adequacy of Department of Defense emergency plans as well as those of other Federal agencies charged with responsibilities for management of the national economy and control of national resources, preliminary planning was initiated within the DOD and by interagency planning groups for a joint military-civil defense-civil agency exercise to be held late in 1962. As presently planned, the concept of the exercise is to stress militarycivil defense relationships and their mutual dependence for logistics support on the availability of essential resources from the surviving national economy under conditions of simulated nuclear attack. The exercise, of a command post type, will be principally one of logistics support and management of the surviving economy involving no actual movement of troops or physical resources. Participation by the public in the civil defense phase at local and State levels will be left to the discretion of local and State civil defense officials.

During the quarter, emergency plans for staffing of relocation sites were updated and emergency callup procedures were reviewed and brought up to date in accordance with current plans.

Mobilization material requirements

Controlled materials (DMS).-As a part of the defense materials procedure, the requirements for the DOD and associated agencies for the second quarter of 1962 were computed, analyzed, consolidated, and transmitted to OEP as a claim for allotments.

During the fourth quarter of 1961, it also was necessary to obtain from OEP supplemental allotments for alloy steel and aluminum for the fourth quarter and for the first quarter of 1962. These supplements were necessitated by recent increases in military production schedules.

Requirements for beryllium metal.-During the fourth quarter of 1961 a study was completed of military and NASA requirements for beryllium metal for the period January 1, 1962, to December 31, 1963. This study indicates that present production capacity is adequate.

Requirements for liquid oxygen and liquid nitrogen.-Forecasts of DOD-NASA requirements for these materials (excluding those for breathing and welding) were compiled and submitted to OEP and BDSA for the period calendar year 1962-64, together with anticipated supplies from DOD production facilities and the net demand on private producers. The purpose of this estimate is to pro

vide a planning basis for any priorities assistance or expansion of supply which might be indicated.

EXECUTIVE RESERVE PROGRAM

OSD completed a survey of the major subdivisions of the Office to determine whether additional reservists were needed. The results were negative. The Army appointed one reservist in the Ordnance Corps.

The shelter survey program

CIVIL DEFENSE

The DOD assigned responsibility for the survey to the military engineers in the Army Corps of Engineers and the Navy Bureau of Yards and Docks. This program is divided into several key activities.

(a) Training of qualified architects and engineers to perform the survey.-We found that there were inadequate numbers of trained engineers in the United States as a whole to perform the detailed surveys required for our program. Therefore, it was necessary to embark on a training program so that adequate numbers of architects and engineers could qualify as contractors in the performance of the survey. Courses were established in the Corps of Engineers and Bureau of Yards and Docks schools at Fort Belvoir and at Port Hueneme on the west coast. In addition, eight universities established training courses to augment military schools. Courses were established for 77 groups which would accommodate 30 people in each group for a total of 2 weeks' training. As of the end of the year a total of 1,300 architects and engineers had been trained and qualified to perform survey work. It is expected that, all in all, over 2,000 will be trained by February at which time the courses of instruction will have been completed. One of the byproducts of this training is to provide a technical basis for shelter design and construction in all the major architectural and engineering firms in the country so that future construction can include shelter designs at low cost.

(b) Actual survey work.—In order to deal with the massive problem of surveying every existing structure in the country which would hold 50 or more people and provide adequate shelter against radioactive fallout, the Department of Defense developed an automatic data processing system to handle this massive data collection and analysis program. Included in these automated procedures is the use of FOSDIC forms designed by the Census Bureau for the easy collection and processing of data; our computer procedures convert these data automatically to protection factors thereby saving vast amounts of professional time which might otherwise have been spent in routine mechanical calculations. Three pilot surveys utilizing these forms and procedures were completed by November. These tests verified the procedures which had been designed for the survey and suggested revisions which have been incorporated to make the procedures more practicable and useful. By the end of the year over 175 architectural and engineering firms were already under contract and surveys had been started in every State. Contracts were under negotiation with many other architectural and engineering firms and it is expected that all of the 750 firms required to conduct the survey will be under contract by the end of January 1962. As the results of the survey are made available they will be processed by rapid computer methods and detailed information on location and degree of protection will be available for all shelter space in existing structures in the United States.

(c) Actual marking and stocking of shelters. Based on results of survey work and calculations we will have identified those spaces which afford the best protection in existing facilities. In coordination with local civil defense authorities, the Department of Defense will mark and stock each of these shelters required to meet the needs of the population. Only those shelters will be marked which will provide adequate protection for 50 or more people and be available to the general public. It is our intent to stock each shelter with austere survival necessities. Such stocks will include 10,000 calories for each occupant, a 2-week supply of water for each occupant, certain sanitary supplies, a first-aid kit, and radiological monitoring instruments. As of the end of the year, the procurement specifications for the shelter supplies were under final development and it is anticipated that specifications for all items will be available early in the year. Procurement will begin in the first quarter of calendar year 1962, and it is expected that all appropriate shelters located by the survey will be marked and stocked no later than December 1962.

The national emergency alarm repeater (NEAR) system

This system is designed to reach 97 percent of the population in their homes. The alerting mechanism is relatively simple with a signal transmitted over normal public utility powerlines to each power user. Each user would have plugged into the line a receiver which would set off a very loud buzzing noise upon receipt of the signal. This warning system would alert the population to an impending emergency and they could then turn on their radios and obtain necessary instructions. A technical evaluation and system test found NEAR to be feasible. Alternative means of introducing the system across the Nation have been under study and discussions have been held with representatives of the major electric power companies and publicly owned power systems. In order to establish the technical advantages and disadvantages of various installations procedures, contracts have been let to initiate technical analyses of the power networks of utilities companies in California, Georgia, and Wisconsin. These analyses will determine the appropriate placement and the size of the NEAR system signal generators for the transmission of the alerting signal. Emergency operations

This element of the civil defense program includes all the activities dealing with operations in an emergency. It includes the communications network (NACOM I and II) and the national warning system (NAWAS). In addition, we directly support State and local governments in their civil defense activities via the Federal matching fund program which provides 50 percent of costs of personnel and administrative expenses, of supplies used for civil defense, and for the construction of emergency operational centers for the continuity of Government activities in an emergency. Further, the Department supports a very extensive training and information program whereby instructors are trained in the technical aspects of civil defense such as communications, radiological monitoring, shelter management, and shelter operations. The increased nation wide interest in civil defense has developed a large demand for civil defense information and publications. In addition to already existing pamphlets, the Department developed a booklet designed to inform each citizen of the hazards of nuclear attack, entitled "Fallout Protection." Copies of this publication are currently available at local civil defense offices and at post offices throughout the country. Further, in collaboration with the Department of Health, Education, and Welfare, the Department of Defense supports adult education courses on civil defense and has initiated a program of instruction called medical selfhelp designed to provide nonprofessional people with adequate medical know-how to treat themselves in an emergency.

Research

The research program is divided broadly into four major areas: Shelter research, support systems research, postattack research, and systems evaluation. The primary emphasis in our research is on shelter and support systems. In these areas we are concentrating special attention on shelter design, attenuation characteristics of materials and structures, problems of fire and thermal radiation, problems related to the ventilation of shelter spaces, shelter environmental studies, and habitability studies. Our research effort is directed toward identifying the most fruitful and lowest cost method of obtaining the broadest possible civil defense for the Nation.

MOBILIZATION ACTIVITIES OF THE CIVIL SERVICE COMMISSION, FIRST QUARTER: JANUARY-MARCH 1962

(Periodic Survey of Appointments Under Authority of the Defense Production Act and Executive Order 10647)

INTRODUCTION

This survey covers appointments under the authority of sections 710(b) and 710 (c) of the Defense Production Act, as amended by Public Law 295, and Executive Order 10647 for the period January 1, 1962, through March 31, 1962. It is submitted in compliance with those parts of the law and the Executive order which require the Chairman of the U.S. Civil Service Commission to survey such appointments at least once every 3 months and to report his findings to the President and to the Joint Committee on Defense Production.

The report consists of: (a) A statistical summary of consultants or experts (WOC's) on the rolls or appointed during the period, who serve without com

1

pensation; (b) a statistical summary of the paid consultants or experts (WAE's) on the rolls or appointed during the period; and (c) a narrative statement covering the findings in each of the departments or agencies in which there were appointments or separations during the quarter covered by the survey.

On January 1, there were 131 WOC consultants carried on agency rolls under the authority of the Defense Production Act. During the quarter covered by this survey, there were seven new appointments and nine separations, resulting in a decrease of two in the total number carried under this authority at the end of the quarter. Three agencies reported activity during this period. These were the Department of Commerce, which made three appointments and five separations; the Department of Interior, which made two appointments; and the Office of Emergency Planning, which made two appointments and four separations.

The total number of WAE appointees on the rolls of all agencies increased from 73 at the beginning of the quarter to 75 as of March 31, 1962. The Office of Emergency Planning made 11 appointments and 7 separations. The Department of Commerce had two separations and no appointments. No changes were made in other agencies.

The survey showed that all new appointments had been made in full conformance with the provisions of the law and the Executive order.

In those agencies making no appointments or reporting on separations, the records were reviewed to determine that the requirements under section 710 (b) (6) of the act for filing revised financial statements had been met. In those agencies all such statements were filed with the Federal Register within prescribed time limits. Since there was no other activity in this area, these agencies are not included in the narrative coverage which follows.

Statistical summary-Consultants and experts WAE-Not to exceed $50 per day

NOTE.-3 WAE's of the Office of Civil Defense shown on chart for the previous quarter have been omitted from this report as they serve under another authority