on a sole-source basis could, and now would, be procured competitively. In the case of items 36, 38, 43, and 44, all procured under Westinghouse contract N-383-60000A, it was explained that the procurements had been placed with Westinghouse in order to permit production scheduling before the Kansas City Government-owned plant was shut down. It was stated that it had been impracticable to assemble the necessary data in sufficient time to make any other course practicable. It was further testified that three additional parts were potentially susceptible to competitive procurement when adequate procurement data packages were completed. These were Items 28 (clamp), 32 (packing seal), 47 (clamp), and also 25 Schedule 3 (pane) which already has been discussed under I. (c) above. Two parts were discussed by the Navy at the hearings as illustrating items which would be particularly difficult to procure competitively. The seal segments assembly (Item 40) was pointed out as a part more complicated to make than some of the other illustrated. The following is the best information now available: its position on the J34-WE-48 engine is such that clearance between some segments of the part and the turbine blades must be held to an absolute minimum. Also its manufacture involves a process of forging two metals together which was developed jointly by Westinghouse and Portland Tank Company. However, Westinghouse had maintained engineering liaison, quality surveillance, quality control, and functional and dynamic testing of the pieces on a lot basis. It was pointed out that this type of service would have to be sought from the outside in the absence of an "in-house" capability and a desire to perform the above service. It was for this reason that these services have been sought from the Pratt and Whitney organization which was in a position to respond quickly to the assumption of the responsibilities involved. As an example of a simple-appearing part which has exacting requirements, Item 37 (machine bolt) was the subject of testimony setting forth the best information available. It was pointed out that this bolt holds together the assembly of turbine disc, turbine shaft, and labyrinth seal in the J34-WE-48 engine. From the standpoint of safety, it is considered that this bolt is one of the most important in the engine. Its manufacture requires 45 different measurements which must be precise. In addition to meeting other requirements, it must weigh within 1/10 of an ounce of the prescribed weight because of the possible effect on balance as it bolts together the turbine wheel and the after part of the engine. In view of the exacting requirements and the need to deal only with proven sources, the Navy had elected to rely on Westinghouse to provide the necessary assurances. It was noted that Considerations re lating to this part, as well as to Item 40 discussed above, illustrate concrete examples of the problems discussed in D. II. and III. above, which have to be overcome before competition can be obtained with respect to many aeronautical replacement spare parts. The Navy is committed in the future to make such evaluations to the extent practicable. Three remaining parts have already been discussed in I(a), (b) and (c) above. In the case of the New Departure bearings (Items 24 and 26), assurances have been given by that source that it can G. perform the same degree of selection of standard bearings In the case of the rocker-box cover gasket (Item 35) has been undertaken. will be furnished to the Subcommittee as soon as it is ready. question, however, whether all future Air Force requirements will call for this identical part. THE OVERALL PROBLEM OF GETTING COMPETITION IS COMPLICATED BY AN INSUFFICIENT NUMBER OF QUALIFIED PERSONNEL. In view of the reliance which, through the years, has been placed on outside sources to obtain requisite quality and reliability of aeronautical replacement spare parts, there is an insufficient number of presently qualified personnel within the Navy to accomplish an overnight reversal of the existing pattern which would mean that the above assurances would have to be furnished solely through "in-house" capabilities, over the general, or even over a widespread, area of procurement for such replacement spare parts. It is highly questionable whether such a sudden reversal would be de-irable even if it were practicable which it is not. - The present technical engineering, procurement, and inspection personnel are already greatly burdened in meeting the present demands of the system under which they have operated. The problem of selecting the areas in which stepped-up competition is practicable exists. As a first step in improving our own personnel staffing, these will be identified and appropriate action taken to improve our "in-house" capabilities in these selected areas. Closely related also to the system which has existed through the years Because 18 the matter of motivation of personnel involved with procurement. of the lack of "in-house" capabilities, there has been a widespread tendency at various echelons, indirectly related to the procurement process, to be distrustful of competitive procurement as being inherently incompatible with obtaining requisite quality and reliability. It has been established that this is not true in all cases although admittedly the problem becomes much more difficult in the area of competitive procurement. A job remains to be done -and it will be done to inculcate in all personnel so involved the Navy goal of competitive procurement wherever practicable and to motivate them toward viewing objectively all of the pros and cons of competition versus - |