MANPOWER UTILIZATION IN THE FEDERAL GOVERNMENT MONDAY, MAY 13, 1963 HOUSE OF REPRESENTATIVES, SUBCOMMITTE ON MANPOWER UTILIZATION OF THE COMMITTEE ON POST OFFICE AND CIVIL SERVICE, Washington, D.C. The subcommittee met, pursuant to notice, at 10:07 a.m., in room 215, House Office Building, Hon. Lindley Beckworth, presiding. Mr. BECKWORTH. The subcommittee will come to order. We regret the chairman is ill and cannot be here. Today we begin the second phase of our public hearings concerning the control and utilization of manpower in the departments and agencies of the Federal Government. We have just completed the first phase, which included testimony from the Secretary of Commerce, the Comptroller General of the United States, the Administrator for Veterans' Affairs, and representatives from the Office of the Secretary of Defense, State Department, and the Agency for International Development. Possibility the two most outstanding items we have to date received are: (1) The apparent desire by the top management in most of the agencies and departments to improve manpower management, and (2) the Comptroller General's revelation from numerous studies by his investigators that there is considerable room for strengthening and correcting management practices in the Federal Government. This morning we are happy to welcome the Under Secretary of the Navy, Hon. Paul B. Fay, Jr. Mr. Secretary, our subcommittee has several items we wish to discuss. Not the least is your use of civilian employees to support the combat forces. We are also interested in improving the productivity of all employees, and we continue to question the use of contractors on jobs historically performed inhouse. I believe, Mr. Secretary, that you have a statement for the members. Will you please proceed. 185 STATEMENT OF HON. PAUL B. FAY, JR., UNDER SECRETARY OF THE NAVY; ACCOMPANIED BY VICE ADM. G. F. BEARDSLY, U.S. NAVY, CHIEF OF NAVAL MATERIAL; AND REAR ADM. MARTIN J. LAWRENCE, U.S. NAVY, CHIEF OF INDUSTRIAL RELATIONS Mr. FAY. Mr. Chairman, would you like me to read the total statement? Mr. BECKWORTH. I think it would be well, if it is not too long. Mr. FAY. I do not believe it is too long. I have summarized it, if that would be more convenient. Mr. BECKWORTH. Proceed, if you will, please. Mr. FAY. Mr. Chairman and members of the subcommittee, it gives me pleasure to appear again before the members of this subcommittee. You will recall Admiral Beardsley, Chief of Naval Material, who is on my right, and Admiral Lawrence, Chief of Industrial Relations, who is on my left, who were with me here last year. My statement, Mr. Chairman, will cover the military posture of the Navy and Marine Corps, and then the topics mentioned in the chairman's letter to the Secretary of the Navy. POSTURE The U.S. Navy and the U.S. Marine Corps have undergone challenging experiences during the past year and have demonstrated versatility and a high state of readiness in concert with the Army and Air Force in the face of grave danger. I consider that our military posture over the past year has been recognized as one of unquestioned strength. The number of Navy officer and enlisted personnel will increase from an authorized strength of 662,000 at the start of this fiscal year to an anticipated 664,400 by the 1st of July 1963. Our Marine Corps is expected to stay at around 190,000. Insofar as fleets and Marine forces are concerned, their disposition has changed little from last year. But nine Polaris submarines are operating from Holy Loch, contrasted with six a year ago. Our fleet is comprised of about 860 ships, including 15 attack carriers and 9 antisubmarine warfare carriers. We have more guided missile frigates, about the same number of destroyers and an increased number of nuclear-powered attack submarines than were in the active fleet a year ago. With these forces in being, we stand ready at all times to play our part in maintaining the security of our Nation. CIVILIAN EMPLOYMENT I am pleased to report that the Department of the Navy's downward trend in civilian employment over 9 successive years has resumed after a brief reversal during calendar year 1961 associated with the Berlin buildup. In November of 1961 we reached a temporary peak of 353,600 civilian employees. We plan to end this fiscal year at about 345,000 employees, a total which will include over 2,000 temporary seasonal hires, principally science and engineering students employed during the summer months in our research activities. This reduction of approximately 11,000 permanent positions over a one-and-a-half-year period will have been the result of three principal circumstances: The release of temporary employees from the naval shipyards, air stations, and ammunition depots upon completion of work for the Berlin buildup; Further reductions in naval shipyards during this fiscal year necessitated by the legislation limiting ship repair, alteration, and conversion work accomplished in Government yards to 65 percent of the total; And transfers totaling about 5,800 to the Defense Supply Agency, Defense Intelligence Agency, and other Department of Defense agencies. Transfers between October 1, 1961, and June 30, 1963, are as follows: Defense Supply Agency.. Defense Intelligence Agency- Defense Communications Agency Office of Secretary of Defense and Joint Chiefs of Staff__. 5, 389 332 57 79 During fiscal year 1964 we expect to transfer 1,300 more of our civilian personnel to the Defense Supply Agency, but this reduction will be offset by increased requirements in other areas including the oceanographic program and naval communications. Man-year increases for fiscal year 1964 over 1963 in these areas are expected to be 285 and 359, respectively. Our overall plans for fiscal year 1964 contemplate a further total reduction of approximately 2,700 below estimated end of fiscal year 1963 employment. This reflects a 2 percent cut below carefully screened and approved program requirements in accordance with the President's recently enunciated policy of anticipating increases in employee productivity. We shall continue to make every effort to hold the Navy's civilian employment to the minimum number consistent with carrying out essential programs and to place continuing emphasis on improved productivity. These objectives, which were recently reemphasized by the President, have the unqualified support of the Secretary of the Navy and are receiving my personal attention. They are being promulgated to all levels of the naval establishment with a specific requirement for reporting progress toward their accomplishment. CONTRACT TECHNICIANS The use of contract technicians in the Navy is in consonance with the policies of the Department of Defense on this subject. These policies authorize the use of contract technicians when: (1) The complexity of a new equipment is such that a period of indoctrination of service personnel by the contractor is necessary to assure the application of required operational and maintenance procedures and techniques; (2) Subsequent to the introduction of the equipment, a requirement develops for special on-the-job training to assure adequate capability of self-support by the using units; and (3) Qualitative deficiencies exist in military or civilian personnel technical skills for logistics planning, installation, operation and maintenance of equipments at the time of introduction into service use. The continuing rapid introduction into the naval service of highly complex weapons, equipment, and systems has created qualitative and quantitative installation, operation, training and maintenance skill requirements in excess of the Navy's present capability. The extent of requirements of these skills in excess of the Navy's capabilities is exemplified by the fact that in fiscal year 1962 the Navy procured contract technician services totaling approximately 4,000 man-years. Contract technicians are used aboard ships, both underway and in port, to the extent their services are required to check out and train military personnel in the operation of complex newly installed weapons and equipment. They are utilized as instructors in formal Navy communications and electronics schools to teach military personnel necessary skills to operate and maintain complex equipments and systems that are in field use. They also provide assistance in the area of guided missiles, in the development of test procedures, calibration of test equipment, and instruction and performance of repair procedures. The average cost per man-year, in fiscal year 1962, of contract technicians procured by the Navy was approximately $18,000. This cost includes not only the base salary of the technicians, but also the per diem travel allowance as appropriate, oversea adjustment, insurance, profit by the parent commercial organization and administrative expenses. MAINTENANCE OF FACILITIES IN JAPAN We have been taking corrective measures to improve the utilization of manpower in the Public Works Department, Fleet Activities, Yokosuka, Japan. Manpower utilization at Yokosuka was the subject of a recent Comptroller General report. The Bureau of Ships has had a thorough management and industrial engineering survey of the Public Works Department at Yokosuka conducted by its management office in the western Pacific. The survey recognized that from 1959 through September 1962 the work force at Fleet Activities, Yokosuka, was reduced by 447, or 21 percent, partly as a result of recommendations contained in a previous Comptroller General report. The large backlog of work at the time of the recent survey by the Bureau of Ships prevented any further reduction in work force immediately. However, extensive recommendations were made concerning the use of labor standards and to improve time reporting, operational procedures, and training. The Secretary of the Navy has approved the recommendations which were made, and most are either already accomplished or are in process. Implementation of a few recommendations has been temporarily delayed because of a shortage of funds. For instance, the recommendations concerning on-the-job training of Yokosuka public works personnel at other Pacific and U.S. bases have been delayed. The benefits of this training are more long-range in character, and the effect will not be felt immediately. The adaptation and installation of engineered performance standards are beyond the capability of personnel at Yokosuka and are being provided by the Bureau of Yards and Docks. When the improvements expected from the survey have had time to produce re |