Machine tool program

MISCELLANEOUS PROJECTS

Machine tool M-day pool order program

The M-day pool order program which provides for the formulation of “standby contracts" with selected machine tool producers for specific types and quantities of machine tools was established in 1956 by the predecessor agency of the Office of Emergency Planning. In the event of a national emergency, or disruption of national production capacity, these contracts may be activated to provide for uninterrupted maximum production of essential types of machine tools. There are presently in effect contracts with 71 machine tool producers, covering 10.833 machine tools with a market value of $209 million. These contracts are under frequent review and revisions are made as required to reflect changes in model specifications, technological advancements, and current price levels.

Inspection and market impact evaluation of excess Government-owned machine tools

In 1965, a memorandum of agreement was established between the Defense Supply Agency of the Department of Defense and BDSA under which BDSA reviews the lists of machine tools declared excess by DOD. BDSA advises DSA of the types of machine tools required to meet current mobilization needs and with respect to the orderly disposal of surplus machine tools so as to minimize the impact of such disposal on the market.

Mobilization exercises

During the fiscal year, BDSA participated in a Government-wide exercise designed to test the ability of agencies with mobilization responsibilities to prepare for an attack on the United States and to carry out preprogramed actions in anticipation of such an attack. The exercise, known by the code name “Blue Bell" was conducted within the framework of the system of defense conditions of readiness which would be employed in case of a genuine threat.

In 1966, as part of its emergency planning, BDSA enlarged its emergency cadre program from 150 to 380 persons. Since BDSA would be the nucleus of an emergency production agency in an emergency situation, the increase in personnel on cadre was deemed necessary to maintain in being as large a force as possible.

"Blue Bell” provided BDSA the opportunity to test its new alerting schedules. Results were considered satisfactory. About 75 percent of the cadre members called were successfully reached during the test and stated that they would have been able to report to the emergency relocation site had the test been an actual emergency.

Quarterly survey of production capabilities for electronics parts

BDSA continued the management and implementation of this survey throughout the fiscal year under review. The classified statistical tabulations for the last three quarters of calendar year 1966, and the first calendar quarter of 1967, were distributed to the Defense Supply Agency in accordance with existing arrangements under which DSA provides partial finding for the costs of conducting the survey. In addition, unclassified press releases and notices for each of these calendar quarters were published.

Industry response to the survey which was somewhat above 90 percent of the surveyed establishments during calendar year 1965 improved to slightly more than 98 percent during the fiscal year covered by this report. The survey provides timely and valuable information to the Defense Supply Agency. The continued large number of requests for the "notice to trade" is an indication of wide acceptance, not only within the electronics industry, but in other sectors of the economy. These data serve as a useful tool for the respondents to study market trends and also as a guide in the allocation of resources and productive capacity in support of defense requirements.

Supply-requirements analysis of medical items

Because of the increased military demands for drugs and medical and surgical supplies, the development of medicare, and the AID program, the Office of Emergency Planning requested the BDSA to estimate the national production capabilities for selected items and compare them with estimated requirements supplied by the Department of Defense, the Department of State, and the Veterans' Administration. The OEP also asked that studies be made of those medical and surgical items which are becoming difficult to obtain by

the procurement agencies. Accordingly, BDSA prepared a supply-requirements analysis to measure the impact on the health materiel production base of the following programs: military procurement, medical assistance to foreign countries, and the medicare program.

The major claimants for medical materiel, DOD (DSA); HEW (PHS); State (AID); and VA, have submitted their broad requirements, by FSC class, for the second half of 1966 and the full year of 1967. These have been matched with projected production statistics to determine what deficiencies exist. In addition, quantitative requirements on specific items have been submitted where deficiencies are in being or are expected to occur. These individual problem areas were examined by BDSA commodity analysts to determine the cause and extent of the deficiencies indicated, and their findings reported to the OEP. United States-Canadian mobilization planning

The Assistant Administrator for Industrial Mobilization, BDSA, was appointed Chairman of the Industrial Production and Materials Working Group of the United States-Canadian Joint Emergency Resources Planning Committee (JERPC). Organization details, objectives, and terms of reference were adopted at the April 5, 1967, meeting of the working group at Washington, D.C. A report was drafted subsequently from which production and materials guidelines will ultimately be developed setting forth postnuclear attack procedures between the United States and Canada for survival items, and for other essential items during the early recovery period.

On June 22, 1967, a meeting of the JERPC was held at Ottawa, Canada, where the working group submitted its progress report, discussed problems relating to emergency procedures, and established goals for fiscal year 1968. EXHIBIT 1.-DISTRIBUTION OF BDSA EXECUTIVE RESERVISTS BY OEP/OCD REGION AND BY STATE, JUNE 30, 1967

EXHIBIT 1.-DISTRIBUTION OF BOSA EXECUTIVE RESERVISTS BY OEP/OCD REGION AND BY STATE, JUNE 30, 1967-Continued

Distribution of BDSA executive reservists by industry divisions, June 30, 1967

EXHIBIT 3.-BDSA EXECUTIVE RESERVE CONFERENCES FISCAL YEAR 1967

EMERGENCY RESPONSIBILITIES AND AUTHORITIES

The Maritime Administration responsibilities under the Defense Production Act and related authorities include: mobilization planning for ports, systems, and facilities in the United States, its territories and possessions; development of policies and procedures for procuring and operating merchant ships to meet the national ocean merchant shipping requirements for military, foreign assistance and emergency procurement programs, and those essential to the civilian economy; and preparation of plans for claiming supporting manpower and material needed to carry out its emergency responsibilities. Authority to assume these responsibilities is contained in the following legislative provisions: Merchant Marine Act of 1936 (as amended)

Merchant Ship Sales Act of 1946

Defense Production Act of 1950

Federal Civilian Defense Act of 1950

Executive Order 10346

Executive Order 10480

Executive Order 11179

Executive Order 10999

PROGRAM SUMMARIES

NATIONAL DEFENSE RESERVE FLEET

The Maritime Administration (Marad) maintains the National Defense Reserve Fleet (NDRF), as authorized under the Merchant Ship Sales Act of 1946, as amended. The purpose of the National Defense Reserve Fleet is to assure the availability of ocean shipping capability required to support military operations and civilian requirements of the United States in time of war or national emergency. It is currently composed of 656 Reserve vessels moored in seven fleet sites strategically located on three coasts of the United States. An annual program is conducted to maintain these ships in a satisfactory state of preservation. The 656 reserves are divided into three groups consisting of 294 commercial dry-cargo ships 281 Navy auxiliaries, and 81 miscellaneous commercial ships, such as tankers, tugs, and reefers.

During this reporting period an additional 60 ships were broken out to support the Southeast Asia program, bringing the total of reactivated reserves to 161 ships, since July 1, 1965. In addition to the 656 reserves remaining in the National

Defense Reserve Fleet, Marad is holding 65 preserved ships for special programs and another 431 ships which have no mobilization utility and which are being sold for scrap as quickly as the market can absorb them. At the end of the reporting period there was a total of 1,152 ships remaining in layup.

SOUTHEAST ASIA SHIPPING PROGRAM

The Southeast Asia support program placed an urgent and expeditious logistical supply requirement on the Department of Defense. This support requirement was assigned to the Military Sea Transportation Service (MSTS) to formulate and operate. The task of supplying the sealift capability was assigned by MSTS to and undertaken by the Maritime Administration commencing in July 1965. From the seven National Defense Reserve Fleets, 161 ships were withdrawn and reactivated periodically, with the last group delivered in March 1967 to the 40 private shipping companies acting as general agents for the Government. These ships plus 11 additional active ships comprised the 172 General Agency sealift fleets operated for MSTS until March 1967. From March to the end of fiscal year 1967, six ships were withdrawn from the program due to enemy damage, extensive repairs, etc., leaving an active fleet of 166.

The Maritime Administration opened an office in Saigon, South Vietnam, in April 1966, to give assistance to general agents, subagents, and shipmasters of General Agency Agreement (GAA) ships. Problems encountered by the two Marad representatives included berthing schedules, crew medical aid, emergency ship repairs, and mail distribution. Coordination and working liaison with MSTS, Coast Guard, American Consul, United Seamen's Service, Vietnamese officials, stevedore operators and others have produced noticeable improvements throughout the entire Vietnam operational area during fiscal year 1967.

With accelerated logistic support requirements imposed by MSTS, an additional Marad office consisting of one representative was established in Yokohama. This office became operational in June 1967, in order to expedite port operations, facilitate repairs, and handle crew requirements of the GAA fleet.

The period between July 1, 1966, and June 30, 1967, reflected an effective operational effort on behalf of the Maritime Administration and its general agents in logistically supporting the Southeast Asia program. During this period, approximately 8.9 million measurement tons of vital military cargo was sealifted from the United States to the several Vietnam ports, of which nearly 34 percent was carried by GAA ships. This sealift mission required our 172 ships to sail approximately 53,000 voyage days, averaging 16,000 miles per voyage of 90 days' duration. The 166 GAA ships, presently operating, displayed an enviable performance record, and performed effectively with minimal downtime attributed to engine casualties. Total outage due to casualty delays has been determined at slightly above 4 percent.

The Maritime Administration, unions, the military, and general agents continued an effort during fiscal year 1967 to improve the following facilities and services to the crews manning (GAA) ships sailing to Vietnam.

1. Two wings are being added to the present United Seamen's Service (USS) Cam Ranh Bay facility to enlarge the dining, housing, slop chest items, and personal services area. Separate reading and game rooms will also be included.

2. Plans for a new facility to be established in Que Nhon are being processed. Discussions have been held by representatives of USS, Marad, MSTS, U.S. Army, and the Agency for International Development (AID) in Vietnam as to the availability of suitable buildings for quarters.

3. Onboard movie showings are continuing and are now being offered to vessels that are not liberty restricted.

4. Improved mail delivery service was established to crews in Vietnam ports through the new overseas military ZIP code system and extensive worldwide communication coverage commensurate with GAA ship routing. 5. Cargo discharge time in all Vietnam ports has been reduced to less than 15 days as a result of numerous newly constructed deep-draft berths in the various ports and better trained stevedoring crews working with adequate modern equipment.

6. Clearance of ships entering Vietnam ports has been accelerated allowing seamen to enjoy shore leave more readily.

7. Dockside berthing has been increased considerably, thereby reducing need for water transporting and delaying ship crews going on shore leave.