Naval Reserve training centers mentioned above. Although no additional centers are required, replacement, expansion or modernization of some of the present facilities is urgently required. Foreseeable needs are estimated to cost about $8 million. Thus, there is a foreseeable requirement of $162 million for the overall program. Of this, we propose to accomplish about $15 million in fiscal year 1959. The fiscal year 1959 authorization program includes provisions for (a) Replacement of four training centers; (c) Improvements to 4 training centers and 3 ships' operations facilities: (d) Acquisition of two sites of presently used centers; (e) Improvements and modernization at 12 naval air stations. In planning for this program, the principle of joint utilization is observed to the utmost, as required by law. A summary of this joint utilization follows: (a) All Naval Reserve aviation facilities are jointly used; 8 (b) 74 percent of Naval Reserve Surface Training Centers Facilities are jointly used; (c) 71 percent of Marine Corps Reserve Training Centers are jointly used. The fact that electronic facilities stations are mostly small, leased spaces which are shared with the lessor makes them, in general, unsuitable for supporting other Reserve components. However, they are jointly used wherever possible and where the need of other services exists at 17 facilities presently. Mr. Chairman, this concludes my prepared statement. My assistants, who represent the three major categories of this program plus the Bureau of Yards and Docks, and I are ready for your questions. Captain Etter has a very short statement. Mr. BROOKS. You may proceed. Captain ETTER. Thank you, Mr. Chairman. As a prelude to the detailed testimony, I would like to report briefly on the current status of the construction program. In the past 5 fiscal years, during which there has been a separate appropriation for Naval Reserve facilities, projects totaling $104.2 million have been approved, and funds have been appropriated in the amount of $82.7 million. We anticipate that by June 30 of this year a cumulative total of $70 million of these projects will have been obligated. Thus, as of the end of fiscal year 1958 we will have on our books unobligated authorizations amounting to $34.2 million. In keeping with the desires of the Department of Defense that authorizations and funds be approximately balanced at the time of transition to specific line item authorization, approximately $23.5 million of authorization will be made available for rescission as of June 30, 1958. Since certain of these facilities are still required, 9 items amounting to $1,141,000 are inincluded in the fiscal year 1959 authorization request currently being presented to this committee. To date this fiscal year obligations have totaled $7 million of our fiscal year 1958 obligation plan of $13 million. This slow obligation rate has been dictated by expenditure limitations. Due to relatively high obligations in fiscal year 1957, expenditures against prior year starts have been such as to necessitate delaying new obligations in the fiscal year 1958 until the latter part of the year. Between now and June 30, 1958, we expect to enter into an additional $6 million of new contracts which will complete our obligation plan. Our plan is to obligate approximately $15 million during fiscal year 1959. Since this exceeds the authorization being requested, the net result will be to reduce our backlog of authorization. Our current estimate of the expenditure situation for fiscal year 1959 indicates that we should be able to follow a normal obligation pattern, and that it will not be necessary to defer contract awards until the last quarter as has been the case this fiscal year. I shall be pleased to answer any specific questions which you may have concerning this program. Thank you, Mr. Chairman. Mr. BROOKS. Your total carry over from prior years in cash in $10 million? Captain ETTER. $10.7 million of authorization, $12.7 million of cash. Mr. BROOKS. Your obligations that are carried over are $15 million, is that right? Captain ETTER. Not the obligations, Mr. Chairman. Mr. BROOKS. I thought they were more than $15 million. Admiral TAYLOR. Are you referring to the first page of my statement, sir? Mr. BROOKS. Yes. Admiral TAYLOR. That would be the obligations estimated to take place during fiscal year 1959. That is not a carryover figure. The second line is the only one that is a carryover. Mr. BROOKS. So that is the estimated obligations. The carryover is $34 million, is it not? Captain ETTER. That is right, sir, of which we expect to rescind approximately $23.5 million, Mr. Chairman. Mr. BROOKS. Do you have a list of those that you expect to rescind at this time? Captain ETTER. Approximately, Mr. Chairman. Due to the fact that we may not be able to award everything we bid between now and the 1st of June, some of those may slide into next year but we can closely approximate that figure with a list. Admiral TAYLOR. You mean the 1st of July? Captain ETTER. Yes, sir. Mr. BROOKS. We would like to have a list of those to be rescinded. Captain ETTER. Could we furnish it for the record, sir? Mr. BROOKS. Would it be advisable in your opinion to put that rescission in this particular bill? Admiral TAYLOR. I see no reason why we should not. It is getting close to the 1st of July now. Mr. BROOKS. That is correct. We cannot possibly get the bill through and signed by the President prior to July 1, as I see it. Mr. BRAY. Mr. Chairman, that is the authorization you intend to rescind? Admiral TAYLOR. That is right, that would be definitely rescinded. However, some of those might be asked for later. Captain ETTER. Mr. Bray, they are the type of thing where we have had a change in mission or a change in requirement such as the Naval Air Station at Akron-Cleveland, Ohio, where we got authorization and then did not go ahead with it, or the Naval Air Station at Portland, Oreg., sir. In addition to that there is a nominal amount of bits and pieces such as where we may have had authorization for a job including contingencies which were not required. Mr. BRAY. I realize that; but, as the chairman suggested, I think as soon as you know that program is not going on, will be taken off either indefinitely or permanently, we should phase out of it and action should be taken to rescind it. If it is something you are just vacillating on, whether you are going to do this month, next month, or next year, that is not the case, but whether it is an indefinite period, I believe it should be taken off because otherwise it looks like a large backlog here and indicates a lack of interest on your part and the committee's part to do something about it. Captain ETTER. May I clarify that a little bit, sir? The reason I am vacillating on what might be $2 million of the $23.5 million is that when we came into this new program this year Mr. BROOKS. There is only $2 million of that? Captain ETTER. That is right, sir. Mr. BRAY. Well, that is not a large amount. Captain ETTER. That is right. It is bits and pieces of projects we will rescind that we will not need. We have approximately $21 million of line items which we will list, sir. Mr. BROOKS. We would like to have a list and we would like to have the reasons why you want the rescission of that authority. If the matter comes up on the floor, we will be able to give the reasons for it. Admiral TAYLOR. The committee is certainly entitled to have that information, sir, and you shall have it. Mr. BRAY. I believe you have been quite alert in pushing matters along and my remarks are not criticism because I do not feel that way about it, but apparently, I think for your sake and ours both, the matter should be clarified. (The information is as follows:) Military construction, Naval Reserve Forces-Amounts available for rescission Military construotion, Naval Reserve Forces-Amounts available for NRTC, Manchester, N. H.. NRTC, Trenton, N. J. N&MCRTC, Waco, Tex. 49,775 Essentially complete; balance not required. Project canceled; new center to be proposed in fiscal year 1960. Project complete; balance not required. Do. Do. Project canceled; addition to present facility infeasible. Project complete; balance not required. NRTC, Wheeling, W. Va. MCR, Wichita, Kans. NRTC, Wichita, Falls, Tex.. Mr. BROOKS. Last year we went into these authorizations and asked each service whether the authorizaitons we granted last year would be consumed in the course of the year. Now, what would be your answer to that, Admiral? Was last year's authorization consumed? Admiral TAYLOR. As you will remember, sir, last year the authorization was for all the services. Mr. BROOKS. But each service had its separate estimate. We reduced it so it would be of an amount which the services would ask for in coming operations. How did that work out with the Navy? Admiral TAYLOR. We went over all our planning since we last appeared before you and we have revised downward the estimates of what is required along the lines of maximum economy. That is why we now feel that our overall requirements, foreseeable requirements, are considerably smaller than they were before. Mr. BROOKS. What was the estimated authorization last year for the Navy? Admiral TAYLOR. $15 million. Mr. BROOKS. How much of the $15 million has been funded? |