CONTENTS Aiken, George D., a United States Senator from the State of Vermont---. Grambo, Francis S., Solicitor's Office, Department of the Interior___ merce Jones, Roger, Assistant Director, Bureau of the Budget.. Mangan, Robert M., Office of Civilian Personnel, Department of the Army, accompanied by Floyd Van Domelen, supervisory personnel officer, Department of the Air Force; W. C. Crump, Navy Hydrographic Office; and John Ewan, Aeronautical Chart and Information Center McClure, Kenneth, Office of the Secretary of Commerce, Department of 37-43, 44, 48 Meloy, L. V., General Counsel, Civil Service Commission Price, Capt. W. N., Deputy Chief, Industrial Relations Branch, Depart- Reid, Max P., Assistant Director of Policy and Staff Coordination, Office Spruell, Robert, contracting officer, Army Map Service.. 44, 48 Artcraft Co.: Letter to Senator Thurmond___ Beasley, D. Otis, Administrative Assistant to Secretary, Department of the Interior: Letter to Senator McClellan.. Campbell, Joseph, Comptroller General: Letter to Senator McClellan__ Merriam, Robert E., Assistant Director, Bureau of the Budget: Letter Morse, True D., Acting Secretary, Department of Agriculture: Letter Agriculture, Department of, Chapter 55, Conduct of Employees___ Commerce, Department of: Manual of Orders, part 1. General Accounting Office: Comptroller General's Order No. 4.25 United States Navy Hydrographic Office, Hydro Instruction 12000.1_. III Report of investigation procurement of mapmaking services by Federal agencies, July 1, 1953, to September 30, 1956.. EXHIBIT 1.-Statistical summary of bids submitted and contracts received EXHIBIT 2.-Bidders' time at AMS inspecting source material on five bid 71 TO REGULATE OUTSIDE EMPLOYMENT OF FEDERAL EMPLOYEES THURSDAY, MARCH 6, 1958 UNITED STATES SENATE, SPECIAL SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, D. C. The subcommittee met, pursuant to call, at 10:15 a. m., in room 357, Senate Office Building, Senator Strom Thurmond (chairman) presiding. Present: Senator Strom Thurmond. Committee staff members present: Walter L. Reynolds, chief clerk and staff director; Ann M. Grickis, assistant chief clerk; and Glenn K. Shriver, professional staff member. Senator THURMOND. The subcommittee will come to order. The bill before the subcommittee, S. 2259, provides for improving the efficiency of the Government by regulating the outside employment of officers and employees of the departments and agencies of the Government. At the outset I should like to explain for the record that the purpose of the hearing is to analyze and discuss the objectives of the bill with the view of ascertaining whether legislation is needed to effect better control and increase the efficiency of Government employees with respect to outside or part-time employment after their regular tour of duty. As a result of a complaint received by the Committee on Government Operations, the General Accounting Office was requested to make an investigation of the practice of certain Government employees who were engaged in mapmaking work for private concerns, or for associations in which they had a personal or financial interest while engaged in similar work as an employee of the Federal Government. At this time I shall ask that a copy of bill S. 2259 be placed in the record, together with Staff Memorandum No. 85-2-4, of the Committee on Government Operations, dated January 14, 1958, with reference to this bill. I shall also ask that the report of the Comptroller General of the United States entitled "Report of Investigation, Procurement of Mapmaking Services by Federal Agencies in the Washington, D. C., Area-July 1, 1953, to September 30, 1956," be printed as appendix A in the record. (See p. 57.) (The material referred to follows:) 1 [S. 2259, 85th Cong., 1st sess.] A BILL To improve the efficiency of the Government by regulating the outside employment by officers STATEMENT OF POLICY SECTION 1. The Congress hereby finds and declares that the public interest requires that employees of the Government refrain from engaging in any outside employment which (1) is so related to their official duties as Government employees, or to the functions of the respective agencies in which they are employed, that a reasonable question of propriety might be raised, or (2) may tend to impair their mental or physical capacity to render proper and efficient service. SEC. 2. As used in this Act DEFINITIONS (1) The term "agency" means (A) a department, or an independent establishment or agency (including a Government-owned corporation), in the executive branch of the Government, (B) the General Accounting Office, (C) the Library of Congress, (D) the Government Printing Office, (E) the Office of the Architect of the Capitol, (F) the Botanic Garden, (G) the Administrative Officer of the United States Courts, and (H) the municipal government of the District of Columbia. (2) The term "employee" means a civilian officer or employee of an agency. (3) The term "outside employment" means any employment for personal financial gain, other than employment by the Government, in any type of business or other activity. (4) The term "Commission" means the Civil Service Commission. EMPLOYMENT PROHIBITED SEC. 3. No employee shall hold any outside employment unless the head of the agency in which he is employed, or his duly authorized representative, shall have determined, in accordance with regulations prescribed by the Commission, that such employment is not inconsistent with the policy set forth in the first section of this Act. REGULATIONS SEC. 4. The Commission shall prescribe rules and regulations for carrying out the provisions of this Act. Such regulations (1) may authorize the head of the agency concerned, or his duly authorized representative, to exempt from such provisions any class or classes of employees or employment, if he finds such exemption necessary or appropriate in the public interest, and (2) shall provide such penalties including furlough without pay and dismissal as the Commission may deem necessary for violation of this Act or failure to comply with such regulations. ADDITIONAL RESTRICTIONS SEC. 5. Nothing in this Act shall be construed to prevent the adoption by any agency of restrictions, in addition to those imposed by this Act, with respect to the holding of outside employment by its employees. EFFECTIVE DATE SEC. 6. Section 4 and this section shall take effect on the date of enactment of this Act. The remainder of this Act shall take effect on the first day of the sixth month after the month in which it is enacted, or sixty days after the date on which regulations authorized by section 4 are promulgated by the Civil Service Commission, whichever is earlier. SENATE COMMITTEE ON GOVERNMENT OPERATIONS STAFF MEMORANDUM No. 85-2-4 JANUARY 14, 1958. Subject: S. 2259, to improve the efficiency of the Government by regulating the outside employment by officers and employees of the departments and agencies of the Government, and for other purposes. BASIS OF COMPLAINT During the past year the staff of the committee has received a number of complaints from well-known mapmaking concerns alleging that Government personnel employed as cartographers, draftsmen, inspectors, etc., by the Army Map Service, Department of Commerce, Department of the Navy, and other agencies, had formed partnerships, associations, or corporations for the purpose of obtaining Government contracts, after which they would perform the work for the so-called private concerns on weekends or when on annual or sick leave. It was further reported that, by reason of their positions in the Government, these employees had access to certain papers and information which would give their companies advantages over privately owned mapmaking companies; specifically, it was stated that in one instance, when the president of a company was examining the bid data in a Government office preliminary to submission of a bid, he met a supervisor of one of the Government mapmaking agencies who was preparing a bid for a private company in which he was a part owner. When challenged or questioned as to why he was working both as a private citizen and as a Government employee, the employee stated that he was assisting the private concern while on annual leave. The complainants informed the staff that it frequently takes 100 man-hours for private concerns to examine the invitation proposals and submission of a bid, whereas the so-called fly-by-night companies located in the metropolitan Washington area submit their bids within 2 or 3 hours after the invitations are made public. Upon being informed of these complaints, the chairman of the committee requested the General Accounting Office to make an investigation and to ascertain the extent and prevalence of this practice. On April 12, 1957, the Comptroller General submitted a report to the committee showing the extent of mapmaking services procured by the Government during the period July 1, 1953, to September 30, 1956, from which the following is quoted: GENERAL ACCOUNTING OFFICE REPORT "During this investigation, officials of the Government agencies involved furnished a listing of their employees who were engaged in cartographic and pertinent related activities. Of these employees, 125 were found to have worked for local mapmaking companies during the period July 1, 1953, through September 30, 1956, on a part-time or subcontract basis. "Thirty-four of the 125 Government employees who worked on a part-time or subcontract basis for local map companies during the period covered by the investigation said they had supervisory Government positions. "Groups of Government employees have formed companies on a cooperative basis with some outsider putting up the money. "In the investigation of the Washington area mapmaking companies who had received Government contracts, we found that some of the companies had been formed by persons who at one time or another had been employed by the Government, but we found no instances in which companies had been formed by persons who were employed during the period of this investigation by agencies covered by the investigation." The GÃO further reported that an employee of one of the Federal agencies admitted that he submitted a bid to another Government department for map work in 1954 but was not awarded the contract. He further stated that he had intended to form a company with other Government employees had he been awarded the contract. The employee admitted receiving $5,668 from a local engineering concern during the period July 1, 1953, to September 30, 1956, for map work performed under an oral subcontract agreement, and that he subcontracted $3,145 of the work to 3 employees of the Geological Survey, and $500 to 2 employees of the Library of Congress. It was further reported that a supervisory employee (GS-12) of the Coast and Geodetic Survey Office admitted that he was connected with a local mapmaking concern owned by his brother-in-law, that he was not active in its management |