Mrs. HECKLER. Considering the contract agreement you have with Mr. Adriaenssens, should the source change radically, do you have an escape clause in your contract that would allow you to be absolved of your contractual obligations?

Mr. WOLL. Our legal counsel tells us we can terminate the contract at any time.

Mrs. HECKLER. Is there any penalty for termination?

Mr. WOLL. No. But from what I have seen over the past 4 years in Europe there is no doubt we will meet our minimum input.

Mrs. HECKLER. There is no doubt you will not meet it or no doubt you will meet it ?

Mr. WOLL. There is no doubt we will meet it.

Mrs. HECKLER. Are you satisfied with the quality of the work?

Mr. WOLL. We have been up to date. I have not as yet learned the origination of the various items which the GAO related to us last Saturday in Frankfurt. I don't know whether they emanated from this site or the Rota site or our stateside sites.

Mrs. HECKLER. How do you determine the quality of the work? Is a spot inspection the sole method?

Mr. WOLL. No: I think really the main criterion is if we do not have complaints from our recipients.

Mrs. HECKLER. Do you have the names of all the recipients?

Mr. WOLL. Each country, yes.

Mrs. HECKLER. Each what?

Mr. WOLL. Each country.

Mrs. HECKLER. Do you have the names of the recipients within the countries?

Mr. WOLL. Not in every instance. In some recipient countries they have an organization that acquires the property and then distributes it to others in the country. In such case we do not know the ultimate end user.

Mrs. HECKLER. Do you have a list of all the recipients which is available? Is this something you file in Washington?

Mr. WOLL. In Washington or in our regional excess property offices. We could get this. It would be quite a job. If you are interested in our going back to the inception of the program we can get it.

Mrs. HECKLER. I am wondering how you can judge the performance of the items if the recipients are unknown in a reference sense.

Mr. WOLL. The way the AID agency is constituted we only hear if an item of property is bad. The property goes in a recipient country and the AID agency in the recipient country would keep records of when the property was received, how long it was used, and the amount spent on maintenance and repair. This would not be our responsibility here the way our agency is constituted.

Mrs. HECKLER. According to the GAO meeting that we had the other day, I think Mr. Moore said he could not locate 60 out of 180 items.

Mr. WOLL. Yes, ma'am.

Mrs. HECKLER. Is there any way this procedure could be tightened so that a more accurate recipient identity could be established?

Mr. WOLL. Yes, ma'am.

Mrs. HECKLER. How do you suggest this be done?

Mr. WOLL. This would have to be handled within the AID mission. I would recommend that the excess property program in each AID mission be controlled or be a part of the Office of Procurement, Government Property Resources Division.

Mrs. HECKLER. I would like to know about the certification that Mr. Adriaenssens makes. What is the extent of his certification?

Mr. WOLL. He certifies that the work which has been lined up in the work order, or set up in the work order, has been performed. He certifies that the parts that have been ordered and are needed for this particular operation have been used; and he certifies to the serviceability of the item.

Mrs. HECKLER. For how long a period does he certify as to the serviceability of the item?

Mr. WOLL. There is no particular time. It would be practically impossible to give a guarantee or a warranty on this. I think that is what you have in mind.

Mrs. HECKLER. Yes.

Mr. WOLL. The conditions and countries in which this property could be used are such that no new manufacturer would give a warranty or a guarantee on it.

Mrs. HECKLER. Mr. Chairman, would it be possible to have a copy of a certification put in the record?

Mr. MONAGAN. Certainly. It may be inserted at this point. (The document follows:)

Adriaenssens N.V.

A.I.D.

Polostraat 59-Hoboken

Noorderlaan 95-Antwerp

"I hereby certify that I did on the.

day of 196-, complete work on

The Contractor certifies that there have been no variations and/or deviations from specifications cited in the contract or other related contract terms, except those approved by the Contracting Officer or his authorized representative.” Shop Leadman__.

Production Chief.

Quality Control___

Mrs. HECKLER. On the administrative cost, the 11 percent you talked about, I assume that is included in the 15 percent for the revolving fund?

Mr. WOLL. Yes, ma'am.

Mrs. HECKLER. You also talked about the fact that the initial contract covers the cost of rehabilitation and storage.

Mr. WOLL. That is right.

Mrs. HECKLER. What is the average period of storage you use in this program? How long do you store equipment?

Mr. WOLL. As long as is necessary. I would think that the average age of the equipment which has been stored here normally runs 4 to 7 months. Would you say that is about right, Al?

Mr. GIBSON. Is that completed items or in process?

Mr. WOLL. Both.

Mr. GIBSON. About 4 to 7.

Mrs. HECKLER. Four to 7 months?

Mr. GIBSON. Yes.

Mrs. HECKLER. You mentioned that some of the jeeps have gone to Saigon. What percentage of the property you have acquired this year would you estimate has been used in Vietnam?

Mr. WOLL. How much have you shipped out to Saigon this year? Mr. SCORDAS. I have that.

Mrs. HECKLER. Is it a large percentage this year?

Mr. WOLL. It is higher this year than it was in past years. The two largest recipients of our property from Europe have been Vietnam and Turkey. Jordan, Tunisia and Nigeria have come in also.

Mrs. HECKLER. You have how many marshaling sites?

Mr. WOLL. We have three in Europe.

Mrs. HECKLER. Is there a marshaling site superintendent at each place?

Mr. WOLL. No. Our operation in Italy is so small that at the present time it would not pay for us to have a marshaling site superintendent there. Mr. Scordas checks it from time to time..

Mrs. HECKLER. How do you do the inspection in Italy, then?

Mr. WOLL. We have an Army inspector.

Mrs. HECKLER. An Army inspector assigned to this?

Mr. WOLL. Yes.

Mrs. HECKLER. What percentage of the items have been complained about as far as falling into disrepair?

Mr. WOLL. Worldwide? Since I returned to Washington in 1964 I would say less than one-half of 1 percent. :

Mrs. HECKLER. Less than one-half of 1 percent?

Mr. WOLL. Yes, ma'am.

Mrs. HECKLER. What is your procedure following a complaint? Do you try to repair the item or do you write it off?

Mr. WOLL. No. We insist that a recipient immediately inspect the property as soon as it arrives in the country. This is the only valid way you can determine if we have been negligent in our rehabilitation process. In many instances we have found that property has been damaged in transportation or has sat in a customs yard for 6 months or a year or has been cannibalized or deteriorates in a customs yard. If we receive a complaint we immediately check the work order to see if what the recipient complains about was actually repaired. If he says the brakes were no good, we check to see if new brakes were supplied. If they were not we will send out new brake linings or refund that amount of money to the recipient. We think we give a better form of guarantee-which it isn't-than a manufacturer does.

Mrs. HECKLER. I think you said the other day you are not always informed when articles have arrived.

Mr. WOLL. When I speak of the recipient I am talking of the AID mission in the country which controls or is supposed to control all the items in that country.

Mrs. HECKLER. If the AID mission has not been informed of the arrival of equipment in the country, is there any way to tighten this up? Mr. WOLL. Apparently, from what the GAO said last Saturday, there must be a breakdown between Turkey and our office. But the USAID is informed of every shipment from our worldwide marshaling sites. They have the name of the vessel, the estimated time of departure, and the estimated time of arrival.

Mrs. HECKLER. How does the AID mission check on the arrival? Mr. MONAGAN. That is a problem for AID and for us if we want to go into it. He can't tell us about their procedure.

Mr. WOLL. This is their responsibility.

Mrs. HECKLER. This is the AID mission responsibility?

Mr. WOLL. Yes, ma'am. Maybe the shipping documents are not forwarded to the right person.

Mr. MONAGAN. We can either request from them their procedure or we can ask somebody from AID to come in and tell us about their procedure.

Mrs. HECKLER. I think a further investigation in this area could tighten it up.

Mr. MONAGAN. It could very well do so.

Mr. MIKUS. May I say something off the record? (Discussion off the record.)

Mr. WOLL. If I could submit this for the record. This is a copy of a shipping document which goes out to the consignee as well as to the mission. It lists the name of the vessel, the estimated time of departure from here, and the estimated time of arrival in Turkey.

Mr. MONAGAN. That will be made a part of the record at this point. (The document follows:)

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