73-424 O

COMMITTEE ON

GOVERNMENT OPERATIONS
UNITED STATES SENATE

NINETY-FOURTH CONGRESS

SECOND SESSION

ON

S. 1437-

AND ON

THE TRANSFER OF GOVERNMENT MANAGEMENT FUNC-
TIONS FROM THE OFFICE OF FEDERAL MANAGEMENT
POLICY TO THE OFFICE OF MANAGEMENT AND BUDGET

WASHINGTON: 1976

GOV'T.

DEPARTMENT

DOCUMENT

SUBCOMMITTEE ON FEDERAL SPENDING PRACTICES, EFFICIENCY, AND OPEN GOVERNMENT

CONTENTS

OPENING STATEMENTS

Senator Chiles (March 23, 1976)...

Senator Chiles (April 5, 1976)..

WITNESSES

TUESDAY, MARCH 23, 1976

Carl Blackwell, Florida Governor's Office, State of Florida........

Page

1

33

Maurice Rowe, Secretary of Administration and Finance, Commonwealth of

Virginia...

Charles Griffiths, aide to the Governor, Commonwealth of Pennsylvania.

James Martin, Director of State-Local Relations for the National Governors

Conference..

Robert D. Wallick, American Bar Association..

MONDAY, APRIL 5, 1976

James Lynn, Director, Office of Management and Budget, accompanied by
Paul O'Neill, Deputy Director, Office of Management and Budget; Hugh E.
Witt, Administrator, Office of Federal Procurement Policy, OMB; Fernando
Oaxaca, Associate Director for Management and Budget....

Ralph Tabor, Director of Federal Affairs, National Association of Counties...

ADDITIONAL MATERIAL

Statement for the record transmitted by: Boasberg, Hewes, Finkelstein & Klores,

Attorneys at Law, in behalf of 19 major voluntary human service organizations;

consisting of the following: American National Red Cross, Boy Scouts of

America, Boys' Clubs of America, Camp Fire Girls, The Child Welfare League

of America, Inc., Council of Jewish Federations and Welfare Funds, Family

Service Association of America, Girl Scouts of the U.S.A., Girls' Clubs of

America, Good Will Industries of America, National Association for Mental

Health, National Board of YMCA's, National Board of YWCA's of the U.S.A.,

National Conference of Catholic Charities, National Federation of Settlements

and Neighborhood Centers, National Urban League, The Salvation Army,

Travelers Aid International Social Service of America, and United Way of

America....

Letter to Senator Lawton Chiles from Charles B. Saunders, Jr.; Director, Office

of Governmental Relations, American Council on Education, June 9, 1975..

Statement submitted for the Record by the American Council on Education on

behalf of nine higher education associations: American Council on Education,

American Association of Community and Junior Colleges, American Associa-

tion of State Colleges and Universities, Association of American Universities,

Association of Jesuit Colleges and Universities, National Association of College

and University Business Officers, National Association of State Universities

and Land-Grant Colleges, National Catholic Educational Association, College

and University Department, and National Council of Independent Colleges

and Universities...

Statement submitted for the record by Howard C. Brown, Jr., Vice President and

Executive Director, National Association of Life Science Industries, in behalf

of the Association

Letter to Senator Lawton Chiles from Paul F. Hannah, Chairman, Public Con-

tracts Section, American Bar Association re support for S. 1437 and suggested

amendment....

Letter to Senator Lawton Chiles from Joseph V. Stewart, President, National As-

sociation of State Budget Officers, December 10, 1975 re NASBO resolution

supporting the concept of S. 1437. (Resolution enclosed)..

103

105

Page

Letter to Senator Lawton Chiles from James T. Lynn, Director, Office of Man-

agement and Budget, May 15, 1975, re OMB's position on the Federal Grant

and Cooperative Agreement Act...

Letter to James T. Lynn, Director, Office of Management and Budget from

Senator Lawton Chiles, June 2, 1975, in response to Director's letter of May 15,

1975.

Excerpt from Federal Register, vol. 40, No. 126 - Monday, June 30, 1975 wherein

notice is given of Executive Branch acceptance of Commission on Government

Procurement Recommendations F-1 and F-2...

Additional material submitted for the record by Carl W. Blackwell, Florida Gov-

ernor's Office, State of Florida....

107

109

112

113

118

Additional material submitted for the record by Charles W. Griffiths, Governor's

Office, Office of Budget, Commonwealth of Pennsylvania...

An Interagency Study to Determine How to Implement Relationship Instrument

Concept of S. 1437..

120

Dissent from the Conclusions and Recommendations of the Interagency Study

Group on S. 1437....

165

APPENDIX

Introductory Remarks by Senator Chiles on S. 1437, from the Congressional

Record, April 15, 1975..

179

S. 1437, a bill to distinguish Federal grant and cooperative agreement relationships

from Federal Procurement relationships and for other purposes..

Part F from Report of the Commission on Government Procurement "Federal

Grant-Type Assistance Programs.'

186

195

F-1 Task Force Report, "Proposed Executive Branch Position/Implementation

for Recommendation F-1 of the Report of the Commission on Government

Procurement.".

221

F-2 Task Force Report, "Proposed Executive Branch Position/Implementation

for Recommendation F-2 of the Report of the Commission on Government

Procurement.".

230

Reprint of article in Public Administration Review July/August 1975, "Towards

an Understanding of Federal Assistance," by Dr. Robert D. Newton...

236

FEDERAL GRANT AND COOPERATIVE AGREEMENT ACT OF 1975

TUESDAY, MARCH 23, 1976

U.S. SENATE,

SUBCOMMITTEe on Federal SPENDING PRACTICES,
EFFICIENCY AND OPEN GOVERNMENT AND THE
SUBCOMMITTEE ON INTERGOVERNMENTAL OPERATIONS

OF THE COMMITTEE ON GOVERNMENT OPERATIONS,

Washington, D.C.

The subcommittee met, pursuant to notice, at 2:25 o'clock p.m., in room 3302, the Dirksen Senate Office Building, Senator Lawton Chiles, Chairman.

Senator CHILES. The subcommittees will come to order.

Staff members present: Lester A. Fettig, chief counsel and staff director; Ronald A. Chiodo, counsel; Robert E. Coakley, counsel; Claudia T. Ingram, minority counsel; Robert F. Harris, chief clerk; Christine Sheridan Betts, assistant chief clerk; Debra P. Altman, clerical assistant; and Ronna C. Stone, clerical assistant, Mary McAuliffe and Barbara Clarke, minority counsels, Subcommittee on Federal Spending, Practices, Efficiency and Open Government.

OPENING STATEMENT OF SENATOR CHILES

Today we begin 2 days of joint hearings with the Intergovernmental Relations Subcommittee on S. 1437, the Federal Grant and Cooperative Agreement Act of 1975.

The bill is co-sponsored by myself and 12 other Senators (Senators Glenn, Nunn, Weicker, Roth, Tunney, Brock, Moss, Muskie, Percy, Hart of Mighigan, Hartke, and Hathaway.)

I think this list shows the bipartisan support for S. 1437. I believe it also reflects a consensus within the Congress that more attention is needed on the administrative machinery-the "how to do it side" of government programs. It is one thing to legislate national goals. It is quite another to insure that things get done.

WHAT THE BILL DOES

When you consider that one-third of the Federal budget is spent through outlays on either procurement contracts-some 70 billion-or grants-some 65 billion plus-it is hard to underplay the importance of this measure.

This legislation would implement two key recommendations made by the Commission on Government Procurement that resulted from its 221⁄2 year study.

Simply put, the bill would do two things:

(1)