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agencies. So that whenever a position opens up in one of the agencies in the audit area or the financial management area, the tendency is to come to the GAO. In the 1966 fiscal year, of the people who left GAO, about 35 percent of them went to other Government agencies.


Senator BARTLETT. Has the GAO had any involvement in black market operations in Vietnam? And I don't mean any active participation on the part of the employees, but have you done any investigating?

Mr. STAATS. We mentioned earlier the reports that we have made have borne on this only infrequently in that we were concerned about the absence initially of adequate auditing staffs on the part of the operating agencies in the area.

As I mentioned, I believe very great progress has been made in this respect. The recent report which we have made to the Congress on our current review of audit and inspection programs in Vietnam reflects that. You may be interested in the data contained in that report (B-159451, dated May 4, 1967).

Second, the report that we have made with respect to the military construction work in Vietnam, a very large construction program, had some observations on this point. Mr. Weitzel referred to that earlier.

The third is that we did a review for Senator Fulbright with respect to AID's report on losses of commodities in Vietnam in which they made the estimate of around 5 percent, which was discussed earlier.

Fourth, we have a report in process today which will be coming to Congress shortly on the commodity import program of AID which will bear, also, on this subject.


Senator BARTLETT. Did you tell Senator Young that you did have available information concerning shipping conditions in Saigon?

Mr. STAATS. I told him that we would obtain for the record the figure on demurrage cost and ships awaiting offloading.

Senator BARTLETT. It is my understanding that it has been greatly improved.

Mr. STAATS. Yes.

PERSONNEL ON LOAN TO CONGRESSIONAL COMMITTEES Senator BARTLETT. How many personnel from your Office do you have on loan to the congressional committees?

Mr. Staats. The most recent figure I have on this is 90 professional and 10 clerical. This number varies,

Senator BARTLETT. Will you please include for the record a table showing the number during the current year, where they were assigned, and whether you received reimbursement and, if so, how much.

Mr. Staats. Yes, we have that information. We will be glad to supply it.

(The information follows:)


Summary of assignments of personnel to congressional committees, July 1, 1966 through Mar. 25, 1967

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Senator BARTLETT. Also for the record there will be included the savings attributable to work which the General Accounting Office identified during fiscal year 1966. If there is no objection this will be placed in the record.

(The information follows:)



The information included on pages A4 through A19 summarizes financial sav. ings to the Government attributable to the work of the General Accounting Office during fiscal year 1966 including those both of a one-time and of a recurring nature.

Many improvements are made by Federal agencies as a consequence of General Accounting Office recommendations which cannot be identified or determined readily in monetary terms. In many other instances, it is feasible to compute the savings resulting from General Accounting Office activities. A summary appears on page A4.

Specific criteria are applied to assure that savings and revenues computed are reasonable and appropriate for the actions taken, or planned, on the basis of General Accounting Office recommendations. For example, annual recurring savings that continue indefinitely are only included for a 12-month period. These savings and revenues were derived as follows:

million. Nonrecurring savings in planned or current programs.

$73. 4 Recurring and additional revenues-1 year's amount.

40. O Refunds and collections--



130. 6 Approximately $74.4 million of the above savings were achieved in supply management of Government-owned materials.

Details of savings, other than actual refunds and collections, are included on pages A5 through A13. Examples of other improvements not readily measurable in monetary terms are included on pages A14 through A19.

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Total for audit of departments and agencies..
Transportation audit.
General claims work.


113, 445

4, 568 8, 195 4, 129

118, 013

8, 495 4, 129

17, 192

113, 445

130, 637


Details of other measurable financial savings, including additional revendes attributable to the audit work of the General Accounting Office during the fiscal year 1966, totaling $113,445,000, are listed below. Approximately $40 million of the savings or additional revenues are recurring in nature and will continue in future years. The items listed consist of realized or potential savings in Government operations directly attributable to action taken or planned on findings developed by the General Accounting Office in its examination of agency and contractor operations. In most instances, the potential savings are based on estimates and for some items the actual amounts to be realized are contingent upon future actions or events. Action taken or planned

Estimated Supply management:

savings Transfer of excess material to agencies or contractors for use in lieu of making new procurements-

$19, 940,000 Return to active inventory excess or surplus material and equip

ment which was either prematurely scheduled for disposal or
not being recognized as an acceptable substitute for items in

11, 595,000 Cancellation of plans to purchase materials for which there was not current need.-

10, 006, 000 Savings resulting from reduction of rates paid for farm storage of grains under the 1965 reseal program..

9, 200, 000 Reduction in losses from deterioration of limited-life and ex

cess medical supply items in the civil defense medical stock-
pile ----

8, 691, 000 Adjustment of prices under existing contracts or proposed amendments

6, 707, 000

Action taken or planned_Continued

Estimated Supply management-Continued

savings Annual savings in operating cost ($250,000) and reduction in

replacement cost ($3,500,000) of seagoing tender used for aid-
to-navigation work made available for partial support of the
national oceanographic effort----

$3,750,000 Transfer and utilization of excess missile launching and handling rails in lie of making new procurements--

502, 000 Reduction in procurement costs as a result of qualifying addi

tional suppliers as competitive sources for items previously
purchased on a sole-source basis..

439, 000 Savings by having fee-basis physicians' prescriptions filled in VA pharmacies instead of in private pharmacies----

428, 000 Savings in procurement cost as a result of direct purchase from actual manufacturer--

396, 000 Redistribution of ammunition provided under the military as

sistance program which was excess for recipient country

392, (WO Cancellation of production of items obtainable at lower prices. 361, 000 Savings realized by replacing sedan delivery vehicles with lower cost pickup trucks--

294, 000 Reduction in Governmentwide procurement costs due to elimi

nation of the requirement that general office desks be
equipped with locks_-

250, 000 Annual savings resulting from change in method of contracting

for photographic services from time and material contract to
cost-plus-fixed-fee contract-

145, 000 Savings on purchase of aircraft parts for overhaul as a result of new pricing procedures.--

131, 000 Reduction in charges to Government cost-type contracts of corporate and administrative expenses-

126, 000 Cancellation of unnecessary handtool procurements..

125, 0) Return to accountability of Government-owned material not

known to exist and equipment improperly retained by con-

125, 000 Reduction of costs resulting from revision of procurement pro

cedures to require support services contractor to consider GSA
source of supply prior to purchase of general supply items
from more costly commercial sources.

116,000 Utilization of excess property as a result of more adequate screening procedures..

110,000 Savings resulting from the centralized procurement of certain

drugs at prices lower than prices availalbe to individual field

108.000 Redistribution of missile system spare parts which were determined to be excess to the needs of the Republic of China..

96, 000 Cancellation of outstanding requisitions and programs for train

ing ammunition not required for the military assistance pro-
gram in a South American country---

33,000 Other items.-

299,00 Communications: Reduction in number of leased telephone circuits

in cable facility through utilization of unused telephone circuits in microwave facility (estimated annual savings)----

503, 000 Payments to Government employees, veterans, and other individuals:

Annual savings through reducing travel costs by making Gorern

ment vehicles available for use in lieu of privately owned

1,500,000 Savings resulting from revising travel regulations to permit the

payment of a lower rate when justified to compensate em-
ployees for expenses incurred when using privately owned
automobiles for official business..


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