Items less than $500,000 each, budget activity 2210-Personnel support equipment-Continued Training aids and devices, Regular Navy-Continued Radioactive isotopes for decontamination trainer, ScolsComd, Treasure Island; DCTC, Philadelphia; NavUnit, Fort McClellan NEAT trainers, device 6B17, BE/E, STA, FTA scols___. $7,200 270,000 324,000 160,000 190,000 300,000 ECM/ECCM video recorder-reproducer unit, GMS, Mare Island__ 16-mm. sound motion picture projectors, various training schols_ Stands, 16-mm. projector, various training schools. Individual wiring board, device 11A12B, NavScol, Pt. Hueneme__ Subtotal 131, 110 125, 887 87,623 114, 800 47,840 6, 300 14, 555 1,060 1,760 12,000 36, 115 5,000 7,500 100, 000 4,980,000 Training Aids and Devices, Naval Reserve: Moving radar target generator, device 15J1C, Naval Reserve training activities__. 16-mm. motion picture projectors, Naval Reserve training activities 84,000 63,700 Overhead projectors, Naval Reserve training activities_. 36,100 7,750 39,000 Projection screens, Naval Reserve training activities___. Electricity and electronics training aids, Naval Reserve training activities 3,300 Sound film readers, Naval Reserve training activities----- 29,000 111,000 9,000 2-inch x 2-inch remote-control slide projectors, Naval Reserve Opaque projector, Naval Reserve training activities__ 34-inch x 4-inch projector, Naval Reserve training activities____ Stands, overhead projectors, Naval Reserve training activities__. Standard typewriters, PN, YN, SK, DK, and IM scols. Adding machines, SK, DK scols; NTC, San Diego- 606, 000 38,600 40,000 1.790 10,375 Items less than $500,000 each, budget activity 2210-Personnel support equipment-Continued Nontechnical training equipment, Regular Navy-Continued Physical education equipment, Naval Academy- Musical instruments, scol of music, Little Creek. Telephone diving cable, NTC, San Diego_‒‒‒ Welding machine, Subscol, New London_-_-. Pipe bender, NTC, San Diego Sanding machine, NTC, San Diego_. Vacuum gage, electronic, NTC, Great Lakes_. Subtotal Nontechnical training equipment, Naval Reserve: Standard typewriters, Naval Reserve training activities---- Valve refacing machine, COMTWELVE-- York refrigeration trainers, Naval Reserve training activities___ Oxyacetylene cutter back pack, Naval Reserve training activi- Battery charger, COMSIX_ Air test equipment, COMFIVE_ Brake machine, COMTHREE (1), COMELEVEN (5). Rotary machine set, COMTHREE (1), COMFIVE (2), COM- Root-type blower, COMTHREE (2), COMFIVE (2). Subtotal $450 25, 630 1, 850 2, 120 1, 200 240 225 450 350 720 124, 000 77,400 53, 400 4,750 2,500 600 450 12, 600 1,350 6, 470 1,450 2,430 5, 290 5, 210 1,100 175,000 415, 000 6,300,000 Other support equipment: Collateral equipment for new laundry, Grand total_____ You have a request for 3,000 additional workbenches at Great Lakes and at San Diego. Why are they needed? Captain CARTER. These are places which assist in training some 20,000 to 25,000 electronics personnel each year. LAUNDRY EQUIPMENT OF THE NAVAL ACADEMY Mr. SIKES. You are requesting $415,000 for laundry equipment at the Naval Academy. Would it not be realistic for the laundry fund to bear this cost? Captain CARTER. The laundry at the Naval Academy would be sorely pressed to bear a capital cost of this magnitude. Mr. SIKES. Is it not customary for these laundries to bear capital investment costs? Captain CARTER. Yes; but not of this magnitude, sir. This is equipment for a new Naval Academy laundry facility. Mr. SIKES. What is the status of the laundry fund, so far as retained earnings are concerned? Captain CARTER. About $700,000. (Additional information submitted at a later date showed these funds to be annual revenue for operating cost.) Mr. SIKES. Then you should be able to buy $415,000 worth of equipment. Captain CARTER. This $700,000 that covers the operating expenses of the laundry, Mr. Sikes. It does not cover large capital investment buys or new building construction costs. Mr. SIKES. Spell out how the $700,000 normally would be used, and whether all of it is required. Captain CARTER. It is required to keep the laundry in day-to-day operation. Mr. ANDREWS. Does the laundry operation make money? Captain CARTER. It is a self-sustaining fund which recovers the cost of performing laundry and dry cleaning services for the midshipman and other authorized customers, such as professors, military staff, and dental, medical, and commissary department by collecting a service fee. Mr. ANDREWs. I would think that the $700,000 accumulated in whatever fund you want to call it would be over and above operating expenses and could be considered profit. I wondered what disposition was made of profits if you had any. Captain CARTER. There are no real profits in that sense. Mr. ANDREWS. How long does it take the $700,000 to accumulate? Captain CARTER. The $700,000 is an annual operating cost which is recovered by charging the customers. Can we supply information on retained earnings for the record, sir? Mr. ANDREWS. Yes. (Information follows:) Laundry service, Naval Academy balance sheet for June 30, 1966 It will be noted that only $63,884 of the net worth (retained earnings) is in the form of cash availability, Accounts receivable and equipment inventory would have to be converted to cash to permit large equip ment procurements. In connection with the equipments currently in use by the laundry, it is planned to turn certain of these equipments in for "trade-in" credit when the new laundry is outfitted. The $415,000 is the net value of the new equipment required. Mr. RHODES. Can we get an operating statement for the past year? Captain CARTER. Yes, sir. (Information follows:) LAUNDRY SERVICE, NAVAL ACADEMY-OPERATING COSTS STATEMENTS AS OF NOTE. This operating cost is recovered by charges to the customers. The Laundry's major customer is the Midshipmen. The current monthly rate charged Midshipmen is $11.50 which is taken from the Midshipmen's pay. Any large capital investment buys from this Account would result in increased charges to the current classes of Midshipmen and would have the effect of penalizing these classes for long lived equipments. Mr. SIKES. Gentlemen, you have been very helpful to the Committee. Let me say that I am impressed with the way in which some of the younger officers have acquitted themselves here today. It is a good plan for you to bring up here as backup witnesses the men who are expert in these respective fields and let them speak. I think this has been a very worthwhile presentation. THURSDAY, APRIL 20, 1967. PROCUREMENT, MARINE CORPS WITNESSES MAJ. GEN. W. J. VAN RYZIN, U.S. MARINE CORPS, ASSISTANT CHIEF OF STAFF (G-4) REAR ADM. E. E. GRIMM, U.S. NAVY, DIRECTOR OF BUDGET AND REPORTS BRIG. GEN. D. J. ROBERTSON, U.S. MARINE CORPS, DEPUTY FISCAL DIRECTOR Program and financing [In thousands of dollars] Receipts and reimbursements from: 11 Administrative budget accounts: Military assistance orders. Other accounts.. 13 Trust funds. 14 Non-Federal sources 1. 21 Unobligated balance available start of year: 22 Unobligated balance transfer from "Military assist executive" (80 Stat 82). 24 Unobligated balance available end of year: |