64-d-18

Development laboratory, Sandia Base, N. Mex., $3,780,000

This project provides for a facility designed to upgrade the research and development capabilities and the physical plant of the laboratory, and to afford needed additional space.

This building provides 76,000 gross square feet of laboratory office and related areas. It affords the additional laboratory space necessitated by the growth over recent years in the percentages of engineering staff and technical assistants within a constant laboratory employment total, as well as by the increased equipment space needed per technical person which has resulted from advanced equipment developments and more stringent weapons design tolerances.

This project provides for a facility designed to upgrade the research and development capabilities and the physical plant of the laboratory, and to afford needed additional space.

This facility provides 4,200 gross square feet for an explosives chemistry laboratory and a preparation facility. They will be separated for safety and continuity of operations and will provide the additional space needed to analyze explosive materials in larger quantities as well as to adapt standard explosive charges to specific design characteristics.

1 High unit cost per square foot is due to special construction and equipment for safe operation of these facilities.

64-d-20 Classified technical reports building addition, Sandia Base, N. Mex., $500,000

This project provides for a facility designed to upgrade the research and development capabilities and the physical plant of the laboratory, and to afford needed additional space.

This building provides 10,200 gross square feet of library, reading room, vault and office space which will permit the centralizing of all of the classified technical books and reports which are essential to the laboratory's scientists and engineers. Thousands of such valuable documents are dispersed in hundreds of safes and files throughout the site. This results in wasted time and effort, duplication of research and development work previously performed by others, loss of information through individual disposal actions, and general inefficient use of technical staffs and facilities.

64-d-21 Control point additions, Nevada Test Site, Nevada, $630,000

This project provides for facilities designed to increase the underground testing capability of the weapons laboratories by upgrading control point facilities at the Nevada Test Site. The project provides for a communications building and for device handling and storage facilities.

The communications building included in this project will provide 11,000 square feet containing a radio control room, microwave terminals, offices, frame and equipment room, storage space, and equipment maintenance space to meet the complex communications requirements at control point 1. The device storage and handling buildings provide 10,320 square feet for underground explosive magazines, a device storage building, a handling building, a warehouse, and paved roads to each building.

Summary of changes-Operating expenses, fiscal year 1964

Raw materials, -$10,928,000

The decrease of $10,928,000 results from

1. An estimated decrease in deliveries of 355 tons of U3O8 costing $5.8 million from domestic procurement as a result of certain mill operators rescheduling their deliveries during the 1964-66 period as a result of the stretchout program.

2. An estimated decrease in deliveries of 200 tons of U3O8 costing $5.1 million as a result of a rescheduling of deliveries by Canada. Weapons, $94,641,000

The amended fiscal year 1964 budget estimate for weapons provides for increased underground testing and other safeguards. The net increase of $94,641,000 includes an increase of $109,762,000 to (1) maintain a readiness capability for atmospheric test and (2) to conduct increased underground tests to yield additional new information applicable to development of weapons which when applied to weapons production will greatly enhance the capabilities of the Armed Forces. The increased test requirements are offset by a decrease of $15,121,000 in other phases of the weapons program.

Security investigations, -$1,050,000

The reduction in the amended fiscal year 1964 budget is due primarily to a reduced unit cost of investigations performed by the Civil Service Commission based on billing rates furnished by that agency.

Cost of work for others, —$560,000

The decrease of $560,000 principally reflects a reduction in the estimated sales of heavy water from 75 to 50 tons. This reduction of 25 tons costing $700,000 is

based on more current information and is partially offset by minor increases in several categories.

Revenues, $2,500,000

The increased revenues are principally the result of increased sales of source and special nuclear materials.

Summary of changes-Plant and capital equipment, fiscal year 1964

This book contains the budget estimates for the appropriation “Operating expenses" for fiscal year 1964. The estimates provide for total obligations of $2,507,058,000 to be funded by (1) a new appropriation of $2,423,500,000, (2) the utilization of an unobligated balance of $54,058,000 estimated to be available at the end of fiscal year 1963, and (3) an estimated $29,500,000 to be received as revenues from non-Federal sources during the fiscal year.

ESTIMATES OF COSTS AND OBLIGATIONS

The budget estimates for this appropriation are stated in terms of accrued costs for each of the AEC's operating programs. "Accrued costs" denotes the actual application of labor, materials, and services to the program during the year, but excludes depreciation of facilities used in the operations. The AEC does, however, maintain accounts for depreciation for the purpose of determining total costs of production and for use in establishing prices for services rendered or products sold to others.

Capital equipment not related to construction, formerly included in this appropriation on a cost basis, is now reflected on an obligational basis in the "Plant and capital equipment" appropriation in accordance with the direction of the Appropriations Committee of the House of Representatives as expressed in House Report No. 2223, August 14, 1962, on the public works appropriation bill for fiscal year 1963.

The costs of operation are reconciled to the total obligations to be incurred during the year by estimating the buildup or decrease during the year of the resources that are to be applied to future years' operations. These estimates are

included in the section titled, "Increase or Decrease in Selected Resources" and include inventories and undelivered orders.

From total obligations are deducted the revenues estimated to be obtained from non-Federal sources in order to arrive at the amount of appropriations required. These revenues are obtained from AEC-owned community and housing operations, from the sale of products, from services performed for others, and from other miscellaneous sources. These revenues are identified and summarized under the tab "Revenues Applied."

The following table summarizes the accrued costs for each program, and the total obligations for fiscal years 1962, 1963, and 1964, except that accrued costs and obligations pertaining to capital equipment not related to construction in fiscal years 1962 and 1963 have been omitted to provide comparability with fiscal year 1964, since the estimates for that year include such equipment under the appropriation "Plant and Capital Equipment." The detailed justifications, beginning on page 25, present the programs in the same order as they appear on this summary table.

Summary of accrued operating costs by program reconciled to net obligations

The financing of the estimated total obligations of $2,507,058,000 proposed in the budget estimates for fiscal year 1964, together with comparable data for fiscal years, 1962 and 1963, is summarized in the following table: