material within the packing and shipping area; checking and tallying material in and out; all operations incident to packing, repacking or recrating for shipment, including on-line fabrication of tailored boxes, crates, bit inserts, blocking, bracing and cushioning, shrouding and overpacking and any containerization, including the packing of material in transportation containers. Excludes packing of household goods and personal effects. T802 Cataloging.-Prepare supply catalogs; furnish cataloging data on all items of supply for distribution to all echelons world-wide; includes catalog files; preparation and revision of all item identifications for all logistics functions; compilation of Federal Catalog Sections and allied publications; development of Federal Item Identification Guides and procurement identification descriptions. T803 Acceptance testing.-Operations pertaining to the laboratory inspection and testing of supplies and materiel to assure that products offered meet minimum requirements of applicable specifications. T804 Training and consultant services.-Operation of professional and other specialized training activities such as General Educational Development and Project Transition. Includes Architect-Engineer (A-E) and expert and consultant services. Excludes DoD schools such as Industrial College of the Armed Forces (ICAF), Air Force Institute of Technology (AFIT), Army Management Engineering Training Agency (AMETA), and the Navy Post Graduate School (NPGS). Also excludes Contract Engineering Technical Services (CETS) reported in functional area T813. T805 Operation of bulk liquid storage.-Operation of bulk petroleum storage facilities, including operation of off-vessel discharging and loading facilities, fixed and portable bulk storage facilities, pipelines, pumps and other related equipment within or between storage facilities or extended to using agencies (excludes aircraft fueling services); handling of drums within bulk fuel activities. T806 Printing and reproduction (except Joint Committee on Printing (JCP) approved printing plants).-Printing, duplicating and copying facilities and services. (Excludes user-operated office copying equipment.) T807 Photographic, film and TV Services, including CATV.-Operation and maintenance of photographic and television services including CATV. Includes film and photograph production, film processing and distribution. T808 Mapping and charting.-The design, compilation, printing, and dissemination of cartographic and geodetic products. T809 Administrative telephone service.-Provide for the installation, operation, and maintenance of the common user, administrative system at DoD installations and activities. T810 Air transportation service.-Operation and maintenance of nontactical aircraft assigned to commands and installations and utilized for administrative movement of personnel and supplies. T811 Water transportation services.-Operation and maintenance of nontactical watercraft assigned to commands and installations and utilized for administrative movement of personnel and supplies. T812 Rail transportation services.-Operation and maintenance of nontactical rail equipment assigned to commands and installations and utilized for administrative movement of personnel and supplies. T813 Contractor engineering and technical services (CETS).-Those services performed by commercial or industrial companies which provide advice, instruction and training to DoD personnel in the installation, operation and maintenance of DoD weapons, equipment and systems. These services include transmitting the knowledge necessary to develop among these DoD personnel the technical skill capability required for installation, maintenance and operation of such equipment in a high state of military readiness. T814 Fueling service (aircraft).-Those operations related to distribution of aviation POL products. Includes operation of trucks and hydrants. T815 Scrap metal operation.-The bailing or shearing of metal scrap includes the melting or sweating of aluminum scrap. T816 Communication and electronics systems.-This includes the installation, operation and maintenance of all nontactical and nondefense communications systems (DCS); communication and electronics systems with the exception of communications centers; automatic message distribution systems; technical control facilities; airfield communications; public address systems; and intrusion alarm systems. Automatic data processing W824 Data processing services.-The provision of ADP processing services by means of (1) Government or contract operation of Government-owned or leased ADPE; (2) participation in the Government-wide ADP Sharing Program; and (3) procurement of time-sharing processing services (machine time) from commercial sources. Includes all types of data processing services performed by general purpose automatic (electronic) data processing and peripheral equipment. W825 Maintenance of ADP equipment.-Maintenance and repair of all Government-owned ADP equipment. (Includes peripheral equipment.) W826 Systems design, development and programing services.-Includes all types of software services associated with ADP operation. Products manufactured/fabricated in-house X931 Ordnance equipment.-Ammunition and Related Products. X932 Products made from fabric or similar materials.-Applicable to the assembly and manufacture of clothing, accessories and canvas products. X933 Container products and related items.-The design, engineering and manufacture of wooden boxes, crates, and other containers. Includes the fabrication of fiberboard boxes, assembly of paperboard boxes with metal straps. Excludes on-line fabrication of boxes and crates reported in functional area T801. X934 Food and bakery products.-Includes the operation of central meat processing plants, pastry kitchens and bakery facilities. Excludes food services reported in functional area $713. X935 Liquid, gaseous and chemical products.—Includes LOX and LIN plants. X736 Rope, cordage and twine products.-Chains and metal cable. X939 Construction products.-Operation of quarries and pits to include crushing, mixing and batching plants (concrete and asphalt). Repair, alteration, and minor constructon of real property. (Excludes repair incident to mantenance and military constructon (MILCON) funded projects) Z992 Buildings and structures.-Includes structural features; exterior and interior painting and glazing; roofing, interior plumbing; interior electric; interior heating equipment, including heat sources under 750,000 BTU capacity; installed food service and related equipment; air conditioning and refrigeration under 5-ton capacity; elevators; and other equipment affixed as part of the building and not included in other activities. Including fencing, flag poles, guards and watch towers, grease racks, unattached loading ramps, training facilities other than buildings, monuments, grandstands and bleachers, elevated garbage racks and other miscellaneous structures. Z993 Grounds (improved).--Includes improved grounds including lawns, drill fields, parade grounds, athletic and recreational facilities, cemeteries, other intensively used ground areas, landscape and windbreak plants, and accessory drainage systems. Z994 Surfaced areas.-Includes airfield pavement, roads, walks, parking and open storage areas. Includes traffic signs and markings, storm sewers, culverts, ditches, bridges, etc. Z996 Grounds (other than improved).-Small arms ranges, antenna fields, drop zones, and fire breaks. Also grounds such as wild life conservation areas, maneuver areas, artillery ranges, safety and security zones, desert, swamps and similar areas. Z997 Railroad facilities.-Includes all two-rail tracks (narrow and standard guage), including spurs, sidings, yards, turnouts, frogs, switches, ties, ballast. roadbeds, etc., with accessories and appurtenances, drainage facilities, and trestles. Z998 Waterways and waterfront facilities.-Includes approaches. turning basins, berth areas and maintenance dredging; excludes waterways maintained under the Corps of Engineers river and harbors programs. Also includes wharves, piers, docks, ferry racks, transfer bridges, quays bulkheads, marine railway dolphins, mooring buoys, seawalls, breakwaters, causeways, jetties, revetments, etc. Excludes buildings, grounds, railroads and surfaced areas located on above waterfront facilities. Z999 Other. Senator NUNN. Who is in charge of the commercial and industrial activities of the DOD and each of the military departments? Who makes the final decision as to whether or not an activity is contracted out? Who defines the activities and conducts the periodic reviews? Mr. WHITE. Within DOD, the commercial industrial activities are managed by the Assistant Secretary of Defense for Manpower, Reserve Affairs and Logisties. In the Army, the commercial industrial activities program is managed by the Assistant Secretary of the Army for Installations, Logistics and Financial Management. The Navy Program is managed by the Assistant Secretary of the Navy for Manpower, Reserve Affairs and Logistics. The Deputy Assistant Secretary of the Air Force for Logistics manages the Air Force program. The decision whether or not to contract an activity is generally made by the Secretaries of the Military Departments or their designees. If the decision would effect more than 50 DOD employees, OSD approval is required and Congress is notified. The commercial and industrial activities are defined in DOD Directive 4100.33. Periodic reviews are generally conducted by installation personnel. Senator NUNN. On page 3 of your statement you give data on the level of commercial and industrial activity employment. This data shows about 473,500 manyears were devoted to such activities in fiscal year 1976. Of this almost 60 percent (278.800) is in-house DOD civilians. The remainder is equally split between civilian contract manpower (97,250 manyears) and military manpower (97,500 manyears.). DOD testimony earlier this year before this subcommittee stated that contract manyears associated with commercial and industrial activities have been stable at the 130,000 level from fiscal year 1973-76. Why do these figures vary so widely? Mr. WHITE. The "Annual Inventory of Commercial and Industrial-Tyne Activities and Contract Support Services" for fiscal year 1976 includes 97,250 contractor man-years. This is understated because some activities that were reported as contracted out did not submit the number of contractor manyears. Based on DOD averages in these functions, the understatement amounts to about 30,000 contractor manyears. Thus, DOD testified that about 130,000 contractor manyears were used in fiscal year 1976, the total represents reported and estimated unreported manyears in activities subject to the annual inventory. Senator NUNN. What specific commercial and industrial activities are included in the 130.000 manyears. Mr. WHITE. The approximately 130,000 manyears represents contractor effort at nearly all of the 8,700 separate DOD commercial and industrial activities in the United States. The following table shows how the contractor manyears were distributed among the categories of major functions performed by the 8,700 activities in fiscal year 1976. The table includes the estimate of 30,000 unreported contract manyears explained earlier. Fiscal year 1976 Estimated Contract Service Manpower1 Thousands of contractor man-years Maintenance, repair, modification, alteration, and rebuild of equipment___ Other manufacturing operations. Automatic data processing___ Repair. alterations, and minor construction of real property. Other (not reported) Total 128 1 For contract services costing more than $50,000 annually for DOD commercial and industrial activities in the United States. Note: Detail may not add to totals due to rounding. Senator NUNN. Please provide a breakdown from 1964 on, for all manpower in commercial and industrial activities; (1) by Defense Planning and Programing categories; (2) by Service; and (3) by military, DOD civilians, and contract Mr. WHITE. Historical data on manpower in DOD's commercial and industrial DOD COMMERCIAL AND INDUSTRIAL ACTIVITIES IN CONUS EXCEEDING $50,000 ANNUAL COST |