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This activity was originally the General Stores Supply Office, a Navy inventory control point. In November 1960, the activity was designated a single manager supply agency (Military Industrial Supply Agency) and assumed supply support of industrial items for Army, Navy, and Airforce. In April 1962 the Agency was transferred to Defense Supply Agency and redesignated the Defense Industrial Supply Center. Since the transfer to DSA the number of items assigned to this Center have expanded from 148,000 to 688,000 items, of which 424,000 are centrally managed and procured by Defense Industrial Supply Center (DISC). The data processing function at this activity occupies an area of 49,100 square feet, of which a total of 5,260 square feet is used as a computer room to house the six computer systems. There are some 358 personnel within this data processing location involved with the planning, programing, key punching, and operation of the punchcard and computer systems. As this activity assumed more control over additional items from the military services, more personnel were transferred from the services to DISC, more machines were required, and minor alterations weer accomplished to accommodate them around the original computer space. The ADF equipment must be housed in an area which has temperature, humidity, and dust control; electrical power sources must be designed to prevent sudden fluctuations in voltage. . If such conditions are not met, equipment failure occur and supply data are lost. The improvements requested by this project will correct this situation, This project will completely renovate the existing computer room of 5,280 square feet, expand this facility to 8,000 square feet, and improve the work flow for data processing functions. It will also build up electrical input and distribution system to more effectively provide the required environmental controls such as humidity and temperature. In addition, the environmental control for the 49,100 square feet of space occupied in building 3 will result in eliminating employee discomfort and improving key punch operations which, because of the existing high humidity, are hindered as the cards become unsuitable for processing and cause equipment malfunctions.

DEFENSE SUPPLY AGENCY

The Defense Supply Agency proposed military construction program for fiscal year 1966 encompasses some $2,121,000.

DEFENSE CONSTRUCTION SUPPLY CENTER, COLUMBUS, OHIO

The first proposed project is at the Defense Construction Supply Center, Columbus, Ohio. This project is for the alterations of building 9, a large supply building, for an industrial production maintenance shop. The cost, $259,000. This particular activity has the space and also, it has been found that the former contractor operated facility at Terre Haute was a high cost operation which will phase out in June of 1966. The materiel and programing in that area will go to Columbus.

Senator SALTONSTALL. What are you using now?

Captain Poll.ICH. Government-owned, contractor-operated facility at Terre Haute, Ind. Also Army-owned Lordstown Military Reservation, Warren, Ohio, and Fort Custer, Battle Creek, Mich. DSA will move its material from these locations to Defense Construction Supply Center, Columbus, Ohio, by July 1966. Senator SALTONSTALL. For $259,000 we will get annual savings of $1.6 million? Captain Pollic.H. Yes, sir. Senator SALTONSTALL. As a result of this consolidation? Captain Poll.sch. Yes, sir. Senator SALTONSTALL. And you will get it in one and a third years? Captain Poll,ICH. Yes, sir. Senator SALTONSTALL. That is most extraordinary; is it not? Captain Pollic H. Yes, sir. I have a breakdown of this if you would like me to submit it for the record, or discuss it. Senator INoUYE. Will you submit it for the committee's use? Captain Pollic H. Yes, sir. (The document referred to follows:)

SAVINGS AND AMORTIZATION

One-time costs including transportation charges, installation of controlled humidity for two storages buildings, movement of shop equipment, reWarehousing costs and building alternations; $2,252,230.

Recurring savings:

Contract costs (Terre Haute, Ind.) estimated.---------------- $2,477,296 Save 12 DOD employees, Terre Haute, Ind------------------- 94, 370 Save 7 DOD employees, Lordstown, Ohio--------------------- 49,000 Subtotal ---- 2,620, 666 Less recurring increases: Additional utility charges 20,000. Additional building maintenance (DCSC) ------------------- 14,000 Personnel increase, DCSC 136 952, 000 Subtotal (986, 000) Total recurring savings 1, 634, 666"

Total one-time costs ($2,252,230) divided by total recurring savings ($1,634,666) equals 1.3 years.

Senator INoUYE. What will happen to the existing facilities now? Captain Pollic H. At Terre Haute? Senator INoUYE. At all these other places. Captain Pollic H. I cannot answer about Warren or Fort Custer. Mr. SHERIDAN: We would have to submit that for the record, if we may, Mr. Chairman. Senator INoUYE. Please do that, Mr. Sheridan. | Mr. SHERIDAN. Yes. (The statement referred to follows:) The facilities at Terre Haute storage site, Indiana, Lordstown Military Reservation, Ohio, and Fort Custer, Mich., will be declared excess to the requirements Of the Department Of Defense and reported to the General Services Administration. The effective dates are June 30, 1965, for Fort Custer and June 30, 1966, for Terre Haute storage site and Lordstown Military Reservation. Disposal of these facilities will be accomplished by the General Services Ad

ministration in accordance with the Federal Property and Administrative Services Act of 1949, as amended.

Senator INoUYE. Please proceed. Captain Pollich. The next item involves the Defense Construction Supply Center in Columbus and is for warehouse modification for mechanization at that activity. This will permit installation of mechanized conveyor systems for continuous workflow, increase the capacity of warehouse operations, . the number of personnel through improved utilization of prouctivitv. so SALTONSTALL. May I ask a question, Mr. Chairman? These are comparatively small items for the $27 million installation you have out there but when you say Defense Construction Supply, do you mean a consolidated supply station for all the three services? co Poll,ICH. Yes. The $8s:"... Construction Supply Center—property is administered by the Defense Supply Agency under permit from the Army. It is the consolidation of the construction supplies, the inventory control point, and a depot. Senator SALTONSTALL. In other words, if the Army takes something out, it pays you back for what it takes out. Captain PolliCH. Yes, sir. Senator SALTONSTALL. How long has this been in existence? Captain Pollich. DCSC was one of the original Defense Supply Agency activities. TMr. Ecs. The Defense Construction Supply Center was turned over to DSA 2% years ago. It was formerly an Army depot. It still stores Army material. In addition, it stores defense supply material for issue to the Army, Navy, and Air Force. Senator SALTONSTALL. It was turned over to the Defense Department by whom? Mr. ECSI. By the Army on a permit basis. Senator SALTONSTALL. So it is one of the improvements you might Say, a consolidation of the supply services. Captain Pollic H. Yes, sir. Senator SALTONSTALL. Thank you, Mr. Chairman. Senator INoUYE. This original request of $186,000 has been reduced to $62,000; is that correct? Captain Pollic H. Yes, sir. Senator INoUYE. Please proceed, Captain.

DEFENSE DEPOT, MEMPHIS, TENN.

Captain Poll.ICH. The next item deals with the “Defense depot, Memphis, Tenn.” This is another line item for alterations for warehouse mechanization. The total request is for $266,000.

Senator INoUYE. Before proceeding, go back to this reduction from $186,000 to $62,000.

Captain Pollic H. Yes, sir.

Senator INoUYE. What was the reason for this reduction?

Captain, Pollic H. The reason, Mr. Chairman, was that the scope of the project as originally submitted to our headquarters, envisioned demolition of warehouse 30, sections 1 to 3, gutting the whole warehouse, which they found later was not necessary, and as a result the actual amount that was going to be utilized to gut the warehouse was stricken from their request. | Senator INoUYE. Thank you, sir. Please proceed. Captain Poll.ICH. Memphis request is for a warehouse mechanization, $266,000. It is felt that this system, including the military construction costs, can be amortized within 4 years, including these alterations. Senator INoUYE. I know that in the Columbus, Ohio, project you reduced the amount from $186,000 to $62,000. Captain Pollich. Yes, sir. Senator INoUYE. Is it possible to reduce this project accordingly? Captain Poll.ICH. No, sir. Senator INoUYE. This is a different situation? Captain PolliCH. Yes, sir. At all three activities where we hope to mechanize, sir, they are all different complexes, different types of buildings. Senator INoUYE. This also involves the Utah situation? Captain Pollic H. Yes, sir. Senator INoUYE. Please proceed, sir.

DEFENSE DEPOT, OGDEN, UTAH

Captain Pollich. The next item is at the Defense depot, Ogden, Utah. This, too, is for alterations for warehouse mechanization.

Senator INoUYE. Can you provide the committee any information on the construction cost index in these three places?

Captain Pollic H. Yes, sir; I can provide it. I do not have it with me.

(The index referred to follows:)

Oost indea: Cost Area in dea: Columbus, Ohio ---- -------------------------------- 1.05 Memphis, Tenn.------------------------------------------------------- .95 Ogden, Utah --- 1. 00

Senator INoUYE. Mr. Sheridan, will you provide construction cost index for the projects presented here?

Mr. SHERIDAN. Yes, sir.

Senator INOUYE. It would assist the committee very much in determining the costs of all these places.

Mr. SHERIDAN. We have a publication, Mr. Chairman, which shows the construction index all over the world, and perhaps that would be helpful to the clerk of the committee if he does not have one.

nator INOUYE. Will you furnish it to the clerk?

Mr. SHERIDAN. Yes, sir.

Senator INoUYE. Thank you, sir.

(The information referred to appears on p. 453.)

Please proceed, sir.

DEFENSE CLOTHING AND TEXTILE SUPPLY CENTER, PHILADELPHIA, PA.

Captain Poll.ICH. The next project deals with the Defense Clothing and Textile Supply Center in Philadelphia. The project amount is $950,000. This will combine three of the inventory control points into the Philadelphia complex, and at its commissioning will be the Defense Personnel Supply Center. It deals with three commodities: subsistence, clothing, and medicine. Senator INoUYE. I note that this project will bring about an estimated annual savings of over $3 million; is that correct? Captain Pollic H. Yes, Mr. Chairman, and I can provide the rationale for that for the committee. Senator INoUYE. At this point, Mr. Reporter, will you list the justifications? (The justifications referred to follow:) The savings are primarily in the area of personnel, with other savings in

automated data processing equipment rental costs. Description of the savings in chart form is:

Fiscal year || Millions Fiscal Millions 1966, of dollars 1 | year 1967, of dollars 1 man-years man-years 1 Civilian personnel savings: ADP Personnel Defense Construction Supply Center------------------------------------------- 39 0.2 42 0.3 Defense Medical Supply Center-------------------- 164 1.2 170 1.3: Defense Subsistence Supply Center---------------- 77 ... 6 84 .7 Total--------------------------------- 280 2.0 305 2.3 Other savings (largely ADPE rental costs): Defense Medical Supply Center--------------------|------------ 0.4 I------------ 0.6 Defense Subsistence Supply Center----------------|------------|------------|------------ .7 Total-------------------------------------------------------- 0.4 ------------ 1.3 Ultimate recurring annual savings: Civilian personnel savings--------------------------|------------------------|------------ 2. 3. Other savings--------------------------------------|------------|------------|------------ 1.3 Military personnel savings--------------------------|------------|------------|------------ .4 Total---------------------------------- - 4.0.

1 Cumulative figures.

Senator INoUYE. What will happen to the existing facilities in Chi

cago and New York? aptain Pollic H. In Chicago the Defense Subsistence Regional

Office will remain there. In the New York office, the building where medical is presently is a Federal building in Brooklyn.

This activity or a good part of it will be utilized by remaining DSA activities that are there now, the Defense Subsistence Regional Office, the Oversea Procurement Office, and several other smaller offices.

In addition, it is my understanding that a part of this Federal office building will also be utilized by the terminal group of the new Military Traffic Management and Terminal Service.

story INoUYE. Who will be using the Chicago facility after it is Vacated?

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