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P94/2/958

ADVANCE PROCUREMENT

APPROPRIATIONS, 1958

HEARINGS

BEFORE THE

COMMITTEE ON APPROPRIATIONS

UNITED STATES SENATE

EIGHTY-FIFTH CONGRESS

SECOND SESSION

ON

H. J. Res. 588

A JOINT RESOLUTION MAKING ADVANCE PROCUREMENT
APPROPRIATIONS FOR THE FISCAL YEAR 1958,

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ADVANCE PROCUREMENT APPROPRIATIONS FOR

1958

TUESDAY, APRIL 1, 1958

UNITED STATES SENATE,
COMMITTEE ON APPROPRIATIONS,

Washington, D. C.

The committee met at 3:30 p. m., pursuant to call, in room F-37, the Capitol, Hon. Carl Hayden (chairman) presiding.

Present: Chairman Hayden, Senators Ellender, Hill, Robertson, Bridges, Saltonstall, Young, Knowland, Thye, Smith, Dworshak, and Potter.

ADVANCE PROCUREMENT APPROPRIATIONS

BUREAU OF THE BUDGET

STATEMENTS OF R. E. MERRIAM, DEPUTY DIRECTOR; W. F. McCANDLESS, ASSISTANT DIRECTOR FOR BUDGET REVIEW; AND J. P. BRADLEY, ACTING LEGAL ADVISER

GENERAL SERVICES ADMINISTRATION

STATEMENT OF C. D. BEAN, COMMISSIONER, FEDERAL SUPPLY

SERVICE

HOUSE JOINT RESOLUTION 588

Chairman HAYDEN. The committee will be in order.

We have convened the full committee this afternoon to consider House Joint Resolution 588, making advance procurement appropriations for 1958.

I will insert in the record a copy of the resolution as it passed the House yesterday as well as a copy of the letter from the President dated March 26 recommending its enactment into law.

(The resolution and letter referred to follow:)

[H. J. Res. 588, 85th Cong., 2d Sess.]

JOINT RESOLUTION Making advance procurement appropriations for the fiscal year 1958, and for other purposes

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That for the advance procurement (including advances to supply funds therefor) of supplies, materials, and equipment, not to exceed 50 per centum of each of the amounts set forth in the schedules in the Budget for the fiscal year 1959 (House Document Numbered 266, Eighty-fifth Congress), under each appropriation or fund, for the objects "Supplies and materials" and "Equipment," is hereby appropriated, out of any money in the Treasury not otherwise

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appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the several departments, agencies, corporations, and other organizational units in the executive branch of the Government (including the District of Columbia), for which appropriations were granted for the fiscal year 1958 and are proposed for the fiscal year 1959: Provided, That this paragraph shall not apply to military functions of the Department of Defense.

The appropriations and funds made available under this heading shall be immediately available and shall remain available until (a) the date on which the period of availability terminates for the applicable appropriation or fund provided in the pertinent appropriation Act for the fiscal year 1959, or (b) such earlier date as the pertinent appropriation Act may be passed by either House of Congress without any appropriation, or without provision in the pertinent appropriation or fund, for the objects set forth under the first paragraph of this heading.

Appropriations and funds made available and authority granted under this heading for advance procurement may be used for that purpose, during the fiscal year 1958, without the apportionment which would otherwise be required by subsections (c) and (d) of section 3679 of the Revised Statutes, as amended (31 U. S. C. 665), and the amounts made available under this heading shall be charged to the applicable appropriations or funds provided in appropriation Acts for the fiscal year 1959.

Passed the House of Representatives March 31, 1958.
Attest:

Clerk.

[H. Doc. No. 359, 85th Cong., 2d Sess.]

COMMUNICATION FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING A PROPOSAL TO MAKE AVAILABLE FOR OBLIGATION Now 50 PERCENT OF THE AMOUNTS ESTIMATED IN THE 1959 BUDGET FOR THE PROCUREMENT OF SUPPLIES, MATERIALS, AND EQUIPMENT FOR THE VARIOUS CIVILIAN AGENCIES OF THE EXECUTIVE BRANCH

THE WHITE HOUSE, Washington, March 26, 1958.

The SPEAKER OF THE HOUSE OF REPRESENTATIVES.

SIR: I have the honor to transmit herewith for the consideration of the Congress a proposal to make available for obligation now 50 percent of the amounts estimated in the 1959 budget for the procurement of supplies, materials, and equipment for the various civilian agencies of the executive branch.

The purpose of this proposal is to stimulate business activity and employment by permitting civilian agencies of the Government to advance their procurement of such items budgeted for the next fiscal year. This action would not increase Government purchases but would accelerate them.

The details of the proposal are set forth in the accompanying letter from the Director of the Bureau of the Budget and the attachment thereto. I recommend prompt consideration and favorable action by the Congress.

Respectfully yours,

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The PRESIDENT,

The White House.

SIR: Pursuant to your instructions to accelerate Government procurement, I have the honor to submit herewith for your consideration the attached proposed provision making supplemental appropriations for the fiscal year 1958 for the various civilian agencies of the executive branch.

The proposed appropriation provision would make immediately available to the civilian agencies one-half of the amounts estimated in the 1959 budget for supplies and equipment chargeable to 1959 appropriations. The funds thus made available would be used to place orders promptly for supplies and equipment which are needed and are planned for procurement next fiscal year. This action would not change the total of Government purchases, but would alter the timing. This would provide an immediate stimulus to the Nation's economy.

Funds would not be made available for appropriations which are proposed for 1959 but for which detailed estimates were not included in the budget which you transmitted to the Congress in January; thus, no amounts would be made available for items such as the mutual security program, which is dependent upon the enactment of additional legislation. Funds would not be provided for any new agency or appropriation account, regardless of whether detailed estimates were included in the budget, if there was no appropriation for such agency or account in the fiscal year 1958.

This provision would make available in 1958 up to $840 million, which will ultimately be charged to 1959 appropriations, for items which normally would not be ordered until after the beginning of the new fiscal year on July 1 next. It is expected that the agencies will make the fullest use of these funds to place orders immediately, subject to limitations imposed by the need for seasonal buying, limited storage capacity, and similar factors.

I recommend that the attached proposal be transmitted to the Congress with a request for prompt consideration.

Respectfully yours,

MAURICE H. STANS, Director of the Bureau of the Budget.

"ADVANCE PROCUREMENT

"For the advance procurement (including advances to supply funds therefor) of supplies, materials, and equipment, not to exceed 50 per centum of each of the amounts set forth in the schedules in the Budget for the fiscal year 1959 (House Document numbered 266, Eighty-fifth Congress), under each appropriation or fund, for the objects "Supplies and materials" and "Equipment," is hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the several departments, agencies, corporations, and other organizational units in the executive branch of the Government (including the District of Columbia), for which appropriations were granted for the fiscal year 1958 and are proposed for the fiscal year 1.59: Provided, That this paragraph shall not apply to military functions of the Department of Defense.

"The appropriations and funds made available under this heading shall be immediately available and shall remain available until (a) the date on which the period of availability terminates for the applicable appropriation or fund provided in the pertinent appropriation Act for the fiscal year 1959, or (b) such earlier date as the pertinent appropriation Act may be passed by either House of Congress without any appropriation, or without provision in the pertinent appropriation or fund, for the objects set forth under the first paragraph of this heading.

"Appropriations and funds made available and authority granted under this heading for advance procurement may be used for that purpose, during the fiscal year 1958, without the apportionment which would otherwise be required by subsections (c) and (d) of section 3679 of the Revised Statutes, as amended (31 ̊ U. S. Č. 665), and the amounts made available under this heading shall be charged to the applicable appropriations or funds provided in appropriation Acts for the fiscal year 1959."

STATEMENT OF ROBERT E. MERRIAM

Chairman HAYDEN. We have as witness the Deputy Director of the Bureau of the Budget, Mr. Robert E. Merriam, and certain of his associates.

Mr. Merriam, you may proceed to make your statement in support of the resolution.

Mr. MERRIAM. Thank you.

Mr. Chairman and members of the committee, I am pleased to appear before you today in support of House Joint Resolution 588, as passed by the House of Representatives on March 31, 1958, making advance procurement appropriations for the civilian agencies of the executive branch of the Government, including the civil functions of the Department of the Army. This appropriation measure results. from the proposal made by the President to the Congress on March 26, which is set forth in House Document No. 359.

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