Compared the least cost alternative with other feasible alternatives which will also meet requirements.

Evaluated the organization and administration of the Bureau of the Mint insofar as this influences production and distribution of coins.

The contractor concluded that the production operations of the mint are managed in a sound and economical manner. Within the limitations imposed by the existing buildings and available funds; the mint has used the latest and most economic production technology. However, available manufacturing space is inadequate to meet current demands economically. Alternative methods of providing additional production facilities were studied, and three which appeared most economical were reported on at length.

After reviewing the finds and remommendations of the Arthur D. Little Co., a proposal was developed and forwarded to the Congress for the construction of new mint facilities.

Mr. GROSS. It is a little difficult for me to understand how there could be savings with an increase of 135,000 employees, but I will be very glad to see the statement.

Mr. STAATS. I am referring to the savings resulting from the studies made as a result of the contracts with the management consulting firms.

Mr. GROSS. Of course, time doesn't permit, but I will read your statement with a great deal of interest to find out how savings have been made by the employment of these firms.

Now, on the subject of consultants, you pass upon consultants in other agencies of the Government, do you?

Mr. STAATS. No, we do not, except in terms of the total amount that agencies expect to use for personal service, including consultants.

Mr. GROSS. You mentioned the State Department and their increased employment as a result of the so-called emerging nations in Africa, did you not, in your presentation this morning?

Mr. STAATS. Right.

Mr. GROSS. And these missions have been tremendously increased. Do you know, or do you not know, whether the State Department has increased tremendously their missions in Africa?

Mr. STAATS. Yes, those are reviewed in detail, mission by mission. Mr. GROSS. What is the purpose of increasing the missions or the regular employees of the missions, the regular employees in the State Department in Africa?

Mr. STAATS. Well, in many of those countries as you know, we did not have missions at all before. In others we had simply a consular office, where we now have to establish an Embassy, when the country became independent.

Mr. GROSS. They have increased these missions for administrative purposes. Is that correct?

Mr. STAATS. Well for diplomatic purposes, for all of the functions that an Embassy abroad would perform

Mr. GROSS. Yes. Tell me why, then, the AID and State Department should be hiring consultants. These are all for Africa.

Mr. STAATS. Is that AID Mr. Gross?

Mr. GROSS. AID, direct hire consultants, in fiscal year 1963. Mr. STAATS. I do know they hire many consultants from the outside.

Mr. GROSS. We are increasing the missions and we are larding in consultants on top of them, Mr. Staats. Active AID contracts with consultants for the African programs. Here are some more of them. Mr. STAATS. AID and all of the predecessor agencies, going back

to ECA have used contracts and consultants to a large degree in connection with their technical assistance programs engineers, doctors, public health technicians, educators-many areas of this kind where we are attempting to help the country in its economic development, and where the Department would not normally have such people on its mission staff.

Mr. GROSS. Sure and you have on the regular payrolls all kinds of similar personnel.

Here is a list of active AID contracts with management consultant firms for the African programs. Look at this thing.

Mr. STAATS. In many cases though it is more economical

Mr. GROSS. On top of the individual consultants and so-called experts, here are management firms, running up to a million dollars, paid to one firm, Arthur D. Little, Inc., of Acorn Park, Cambridge, Mass. They can do more, I guess for Massachusetts, than somebody else can. $468,222 contract to Cheechi & Co., of Washington, D.C. Take a look at these management firms that are being larded into dealing with Africa exclusively.

Mr. STAATS. I am not familiar with that particular list Mr. Gross, but I do know the contracting device saves the Government a lot of money.

You cannot hire many of these people on a permanent basis. You wouldn't want to hire them on a permanent basis. If you can hire a firm for 2 months or 6 months, it is better to hire them on that basis, than to have people on your staff full time performing these activities. Mr. GROSS. The trouble is we are getting it both ways. The poor taxpayers of this country is getting it socked to them both ways, both with buildups of missions, regular missions in Africa, and other parts of the world

Mr. DERWINSKI. Will the gentleman from Iowa yield?

Mr. GROSS. Yes, briefly.

Mr. DERWINSKI. If the gentleman wouldn't mind me commenting, now that the gentleman is also a member of the Foreign Affairs Committee, we are hopeful this objectionable trend will stop.

Mr. GROSS. I beg your pardon.

Mr. DERWINSKI. Now that the gentleman is a member of the Foreign Affairs Committee, we are hopeful this objectionable trend might be stopped.

Mr. GROSS. Well, we need some support from the Bureau of the Budget and some of the agencies of the Government in order to get it stopped.

Mr. JOHANSEN. Will the gentleman yield?

Mr. GROSS. Yes.

Mr. JOHANSEN. I want to say while I have the same regard for the gentleman from Iowa the gentleman from Illinois has, let's not place burdens too grevious to be borne on one man. There has to be some

help from downtown.

Mr. HENDERSON. I would like to ask the gentleman, if you have no objection, the list you received to be inserted in the record.

Mr. GROSS. I would be delighted to have it inserted in this record. It is going to be inserted in the record in the Foreign Affairs Committee and I would be delighted to provide this information to the committee for insertion in this record at this point.

(The list referred to follows:)