MR. CHAIRMAN, MEMBERS OF THE SUBCOMMITTEE, MY NAME IS HUGH E. WITT. I AM VICE PRESIDENT, GOVERNMENT LIAISON, FOR UNITED TECHNOLOGIES CORPORATION AND AM REPRESENTING THE AEROSPACE INDUSTRIES ASSOCIATION OF AMERICA, INC. (AIA). THE AEROSPACE INDUSTRIES ASSOCIATION REPRESENTS THE NATION'S MAJOR MANUFACTURERS OF AIRCRAFT, AIRCRAFT ENGINES, HELICOPTERS, SPACECRAFT, MISSILES, SPACE LAUNCH VEHICLES, AND THEIR RELATED COMPONENTS AND EQUIPMENT. I APPRECIATE THE OPPORTUNITY TO BE HERE TODAY TO DISCUSS THE ISSUES SURROUNDING THE EMPLOYMENT BY THE GOVERNMENT OF PERSONS FROM THE PRIVATE SECTOR, AND EMPLOYMENT BY THE PRIVATE SECTOR OF PERSONS WHO HAVE BEEN EMPLOYED BY THE GOVERNMENT. THESE ISSUES HAVE BEEN DEBATED, OFTEN WITH MORE HEAT THAN LIGHT, SINCE I CAME TO WASHINGTON TO WORK FOR THE GOVERNMENT 35 YEARS AGO.

I AM IN A SOMEWHAT UNIQUE POSITION TO APPEAR BEFORE YOU TODAY SINCE I WAS A MEMBER OF THE DEFENSE DEPARTMENT CAREER CIVIL SERVICE FOR 23 YEARS, THEN A POLITICAL APPOINTEE AT THE

OFFICE OF MANAGEMENT & BUDGET FOR THREE YEARS, AND HAVE BEEN EMPLOYED FOR THE PAST NINE YEARS BY A FIRM WHICH DOES SIGNIFICANT GOVERNMENT CONTRACTING. DURING MY GOVERNMENT SERVICE, I REPORTED TO NINE ASSISTANT SECRETARIES, AND TWO DIRECTORS OF THE OFFICE OF MANAGEMENT & BUDGET.

BASED ON MY EXPERIENCE AND OBSERVATION, I CONCLUDE THAT

MUCH OF THE ALARM RAISED OVER THE SO-CALLED "REVOLVING DOOR" IS RELATIVELY FEW INSTANCES WHERE A STRONG SURFACE SHOULD NOT BE

UNWARRANTED.

THE

APPEARANCE OF

CONFLICT-OF-INTEREST

ALLOWED TO CAST A SHADOW OVER THE THOUSANDS OF PERSONS WHO HAVE MOVED FROM THE PRIVATE TO THE PUBLIC SECTOR, AND VICE-VERSA, WITH NO HINT OF IMPROPRIETY.

I HAVE HAD THE PLEASURE OF WORKING WITH BOTH CIVILIAN AND MILITARY EMPLOYEES OF THE DEPARTMENT OF DEFENSE, AS WELL AS OTHER FEDERAL AGENCIES. THE GREAT MAJORITY HAVE PROVEN TO BE DEDICATED, PATRIOTIC CITIZENS DEVOTED TO DOING A GOOD JOB FOR THEIR COUNTRY. ADMITTEDLY, HUMAN NATURE BEING WHAT IT IS, THERE WILL ALWAYS BE A HANDFUL OF PEOPLE WHO TAKE ADVANTAGE OF A SITUATION TO IMPROVE THEIR PERSONAL REPUTATION OR FORTUNE. NO SPECIFIC LEGISLATION ON THE BOOKS, OR BEING DRAFTED, WILL EVER SOLVE THAT PROBLEM.

THERE IS CURRENTLY IN PLACE A SYSTEM OF STATUTORY CONFLICT-OF-INTEREST RULES WHICH APPLIES TO FEDERAL EMPLOYEES AND WHICH IS BACKED BY CRIMINAL PENALTIES. THESE STATUTES DISQUALIFY A GOVERNMENT EMPLOYEE FROM REPRESENTING A CONTRACTOR ON ISSUES RELATED TO CONTRACTS WHERE HE PARTICIPATED PERSONALLY

NOW, LET'S CONSIDER ONE OF THE MOST RECENT LEGISLATIVE PROPOSALS DEALING WITH THIS SUBJECT, AND SOME OF THE PROBLEMS H. R. 2554 WAS ADOPTED BY THE COMMITTEE ON ARMED SERVICES AS AN AMENDMENT TO THE FY 1986 DOD AUTHORIZATION BILL AND SUBSEQUENTLY REJECTED BY THE AUTHORIZATION CONFEREES.

IT RAISES.

H. R. 2554 SINGLES OUT DOD OFFICERS AND EMPLOYEES AND CREATES A CONCLUSIVE PRESUMPTION THAT EMPLOYMENT WITHIN TWO YEARS IS A CONFLICT. THIS TWO-YEAR DISQUALIFICATION, WITHOUT REGARD TO HOW REMOTE THE JOB MAY BE FROM DOD'S BUSINESS, IS TOO BROAD AND UNFAIRLY STIGMATIZES DOD PERSONNEL.

AS I UNDERSTAND H. R. 2554, THE SECRETARY OF DEFENSE WOULD BE RESPONSIBLE FOR PRODUCING A LIST OF PROCUREMENT FUNCTIONS AND THE POSITIONS CURRENTLY PERFORMING SUCH FUNCTIONS. THIS LIST WOULD CONSTITUTE THE BASIS FOR A DECISION BY THE SECRETARY AS TO WHETHER A DEPARTING EMPLOYEE HAD HAD A "SIGNIFICANT RESPONSIBILITY FOR A PROCUREMENT FUNCTION" AND THUS WOULD BE PROHIBITED FROM TAKING COMPENSATION FROM A FIRM OR LIST OF FIRMS PRESENTED TO HIM BY THE DEPARTMENT OF DEFENSE UPON THE EMPLOYEE'S DEPARTURE.

I PERSONALLY WOULD HAVE NO PROBLEM WITH LEGISLATION WHICH PROHIBITED THE "WORST CASE" TYPE OF "REVOLVING DOOR."

BASED UPON MY EXPERIENCE, I CAN SEE THE NEED ΤΟ HAVE "APPOINTIVE" PEOPLE FROM THE PRIVATE SECTOR BROUGHT INTO THE GOVERNMENT. FIRST, THE PRESIDENT MUST HAVE HIS REPRESENTATIVES AT THE TOP AGENCY POSITIONS, SUCH AS CABINET OFFICERS, AS WELL AS AT CERTAIN KEY POSITIONS REPORTING TO THEM. CONSIDERING THE SIZE OF THE FEDERAL BUREAUCRACY, THERE ARE IN FACT RELATIVELY FEW OF THESE POSITIONS. SECOND, I WOULD LIKE TO EMPHASIZE THAT THE GOVERNMENT NEEDS THE NEW IDEAS AND CONCEPTS THESE PEOPLE BRING WITH THEM.

AT THE SAME TIME, WE MUST NOT CUT OFF THE AVENUES BY WHICH THESE OFFICIALS RETURN TO THE PRIVATE SECTOR.

RECRUITING GOOD, KNOWLEDGEABLE PEOPLE FROM COMMERCE AND INDUSTRY IS A CHALLENGING TASK, CONSIDERING THE GOVERNMENT PAY SCALES AND THE WORKLOAD THE APPOINTIVE OFFICIALS MUST CARRY, WITHOUT MAKING IT DIFFICULT FOR THEM TO RETURN TO THE TYPE OF WORK THEY HAVE SPENT THEIR PRODUCTIVE YEARS PREPARING FOR.

I CALL YOUR ATTENTION ΤΟ TESTIMONY BY FORMER UNDER SECRETARY OF DEFENSE RICHARD DELAUER. WHEN ASKED WHY HE WAS NOT FILLING CERTAIN POSITIONS IN THE PENTAGON, HE REPLIED THAT, WITH THE GROUND RULES NOW EXTANT, HE COULD HIRE ONLY YOUNG EXECUTIVES WITH LIMITED EXPERIENCE, OR OLDER EXECUTIVES SUCH AS HIMSELF WHO WERE RETIRING FROM INDUSTRY AND WERE WILLING TO TAKE ON THE RIGORS OF GOVERNMENT EMPLOYMENT AS A GESTURE OF GRATITUDE TO THEIR COUNTRY. THIS DEMONSTRATES VERY GRAPHICALLY

THE ISSUE WE ARE DISCUSSING TODAY.