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projects inside the United States and by 10 per centum for projects outside the United States. However, the total cost of all projects in each such title may not be more than the total amount authorized to be appropriated for projects in that title.

Again-
The CHAIRMAN. That is the same as it is in the law now.
Mr. KELLEHER. Right.
Mr. Bray. That has been in there for several years, has it?
Mr. SMART. Yes.
Mr. KELLEHER. Yes, sir.

The CHAIRMAN. All right. Now, section 504.
Mr. KELLEHER. [Reading:]

Sec. 504. Any outstanding authority heretofore provided by the Aet of Sep tember 1, 1954 (68 Stat. 1119), the Act of July 15, 1955 (69 Stat. 324), and the Act of August 3, 1956 (70 Stat. 991), for the provision of family housing shall be available for the construction of family housing at any installations for which appropriated fund family housing is authorized to be constructed under titles I and III of this Act.

And again, Mr. Chairman, that merely gives the authority for the 777 Air Force and I believe the 158 Army houses in here, to utilize old existing authority so it is not added to this bill.

The CHAIRMAN. That is right. Without objection, that is agreed to.

Mr. KELLEHER (reading):
Sec. 505. Whenever-

(1) the President determines that compliance with section 2313 (b) of title 10, United States Code, for contracts made under this Act for the establishment or development of military installations and facilities in foreign countries would interfere with the carrying out of this Act; and

(2) the Secretary of Defense and the Comptroller General have agreed upon alternative methods of adequately auditing those contracts; the Presi

dent may exempt those contracts from the requirements of that section. The CHAIRMAN. That is the same as is in the law now? Mr. KELLEHER. Yes, sir. The CHAIRMAN. Without objection, that is agreed to. Now, this is new. Mr. KELLEHER. Section 506. This was in last year, Mr. Chairman.

Contracts made by the United States under this Act shall be awarded, insofar as practicable, on a competitive basis to the lowest responsible bidder, if the national security will not be impaired and the award is consistent with chapter 137 of title 10, United States Code, and section 15 of the Act of August 9, 1955 (69 Stat. 547, 551). The Secretaries of the military departments I might say, Mr. Chairman, I think you want to put in the Secretary of Defense and the Secretaries of the military departmentsshall report semiannually to the President of the Senate and the Speaker of the House of Representatives with respect to all contracts awarded on other than a competitive basis to the lowest responsible bidder.

The CHAIRMAN. Now, in that connection, members of the committee, the record shows that approximately 95 percent of all contracts made by the engineers and the Bureau of Yards and Docks with reference to all public works, is under competitive bidding. This does give the flexibility if the situation so permits, to have negotiated contracts.

I think that it would be all right to include the Secretary of Defense. I hope someone besides myself will read these reports. But we do read them, and they contain valuable information.

Without objection, we will include a report from the Secretary of Defense, as well as the others.

Mr. RIVERS. Could I inquire, Mr. Chairman.
Mr. BRAY. Mr. Chairman.

Mr. RIVERS. That exception where the security of the country wouldn't permit a project to be advertised--that would fall in the exception?

Mr. KELLEHER. Yes, it might be a remote radar site, for example, or something of that kind, and you just couldn't get a bid on it.

Mr. RIVERS. I see.

Mr. Bray. Mr. Chairman. You said 95 percent. That applies to continental United States?

The CHAIRMAN. Oh, yes.
Mr. Bray. That is what I thought.
The CHAIRMAN. Now, we have a magnificent record-
Mr. MILLER. Mr. Chairman.
The CHAIRMAN. Yes, sir.

Mr. MILLER. With respect to the statement that the counsel just made, I can cite one case, quite recently, where the Army engineers within the United States completely disregarded this. Frankly, I am going to lay it before the Comptroller General. I just want to make the record very clear, that the Army engineers_this outfit that we are so proud of_has been slipping a little bit.

The CHAIRMAN. I do think, Mr. Miller, they have a most magnificent record, the Department, with reference to public bids in all this public works bill.

Mr. MILLER. I have always agreed with you, sir, and I have been on some of these committees.

The CHAIRMAN. That is right.

Mr. MILLER. But this is a case where there has been quite a deflection from the system of prior accomplishment.

The CHAIRMAN. Without objection, the section is agreed to, with the amendment.

Mr. DURHAM. Mr. Chairman-
The CHAIRMAN. Mr. Durham.

Mr. DURHAM. You said we are including the Secretary of Defense in this reporting. Why is it important!

The CHAIRMAN. Well, because the Secretary of Defense is the head of everything. It is all right for him to get up a report to show how much competitive it is. It saves the Hébert subcommittee from having to do it. We have it here now, and we know exactly how many billions of dollars there are in public bids and how much is negotiated contract.

Mr. KELLEHER. And he gets $50 million in here, too, Mr. Chairman. The CHAIRMAN. Yes.

Mr. DURHAM. I wasn't thinking of the elimination, or saving time, if the Secretary of Defense makes the report.

The CHAIRMAN. No.

You see, the philosophy of the other bill was that the Secretary of Defense makes reports and then these service Secretaries make report.

Mr. KELLEHER. The Secretary of Defense will report on his $50 million and the service Secretaries on each of their own amounts.

The CHAIRMAN. That is right.
You see, we give $50 million in here.

Mr. RIVERS. Then I will ask the service Secretaries to keep in business.

The CHAIRMAN. Without objection, the section is agreed to. Now, read the next one. · Mr. KELLEHER (reading):

Sec. 507. As of July 1, 1959, all authorization for military public works to be accomplished by the Secretary of a military department in connection with the establishment or development of military installations and and facilities and all authorizations for appropriations therefor, that are contained in Acts approved before August 4, 1956, and not superseded or otherwise modified by a later authorization are repealed, except

This, Mr. Chairman, cuts it down to 3 years. It was 5, then 4, and now 3.

The CHAIRMAN. This is the same as it was in last year's bill, and this will prohibit a large unfunded list of items.

Mr. KELLEHER. The items of course are not the same. The exceptions this year are not the same.

The CHAIRMAN. That is right.
Without objection, 507 is approved.
All right, now section 50-
Mr. KELLEHER. 508, Mr. Chairman, on page 62, line 16.
The CHAIRMAN. That is right.
Mr. KELLEHER (reading):

Sec. 508. Section 408 (b) of the Act of June 17, 1950 (64 Stat, 236, 245), is hereby repealed. That is the report that is made at the beginning of each Congress by the military departments, on unfunded authorization. It is the thought now that with it being rescinded automatically, the report is no longer necessary.

The CHAIRMAN. That is right, it is no longer needed.
Mr. KELLEHER (reading):

SEC. 509. Section 515 of the Act of July 15, 1955 (69 Stat. 324, 352), as amended, is further amended to reads as follows:

"SEC. 515. During fiscal years 1958 through and including 1961, the Secretaries of the Army, Navy, and Air Force, respectively, are authoribed to lease housing facilities at or near military tactical installations for assignment as public quarters to military personnel and their dependents, if any, without rental charge upon a determination by the Secretary of Defense, or his designee, that there is a lack of adequate housing facilities at or near such military tactical installations."

The CHAIRMAN. This is the same as it was last year and it applies to Nike installations. Instead of building them, we will go in the community and rent them.

Without objection, that section is agreed to.
Mr. KELLEHER (reading):

SEC. 510. Section 406 of the Act of August 3, 1946 (70 Stat. 991, 1015), is amended to read as follows:

"SEC. 406 (a) The Secretary of a military department may acquire any interest in land that

“(1) he or his designee determines is needed in the interest of national defense; and

"(2) does not cost more than $25,000 (exclusive of administrative costs and the amounts of any deficiency judgments). This section does not authorize the acquisition, as part of the same project, of two or more contiguous parcels of land that together cost more than $25,000."

Today, the law is $5,000. The CHAIRMAN. That is right. Mr. KELLEHER. This was suggested last year by the Department. There didn't appear to be any great opposition, but it was the final judgment of the committee that it should remain at $5,000.

The CHAIRMAN. Now, explain exactly to the committee what this does.

Mr. KELLEHER. Yes, sir.

Today, any land acquisition that involves more than $5,000 must be a specific line item in the bill. Once in a while, the Department runs into an instance where they have a radar installation or some other relatively small project where the cost of the property is six or seven or eight thousand dollars.

That means they must wait until the next year, the only alternative being to lease the property in the interim and then purchase it the next year.

This would let it rise to $25,000.
The CHAIRMAN. Well-

Mr. DURHAM. Now, Mr. Chairman, this is something that is important.

The CHAIRMAN. Well, we have to have flexibility.
It is not much. This doesn't happen often.
Mr. RIVERS. You got inflation, anyway.
Mr. DURHAM. They can acquire land and keep on acquiring land.
The CHAIRMAN. No. Without objection, the section is agreed to.

Mr. RIVERS. We just don't have enough time to approve them, anyway.

Mr. GAVIN. Mr. Chairman-
The CHAIRMAN. Mr. Gavin-
Mr. GAVIN. Going back to section 515 for a minute
The CHAIRMAX. Order.
Mr. GAVIN. I merely wanted to make an observation.

I can't understand where these tactical units are developed or programed that housing facilities are not developed along with the project.

In other words, you are talking about these Nike installations, and you are renting houses because there are no houses for the personnel at that installation.

Now, those individuals may be 2 or 3 miles from the installation, and when there is an alert and they have to go through the traffic, how are they going to get to these units to perform their duties when they are out 4 or 5 miles from the area?

The CHAIRMAN. I don't think, Mr. Gavin, you will find many of them a mile and a half away from the installation.

Mr. Gavin. I hope not.

The CHAIRMAN. They are right in that neighborhood. That is the reason we want to give them the authority to rent.

Mr. Gavin. You have to give them the authority. There is no question about that. But I say when they are planning the project why don't they plan the housing right along with it.

The CHAIRMAN. We will save money by permitting them to rent. . Mr. Gavin. You might save money, but if you are ever alerted the matter of money won't make much material difference, when the planes are coming over at you.

The CHAIRMAN. They will be there.
What is the next section?

Mr. LANKFORD. Mr. Chairman, may I ask a question on that provision for letting them acquire land

The CHAIRMAN. What!

Mr. LANKFORD. On the provision which Mr. Kelleher just read, about acquiring land up to the amount of $25,000. Any land under the $25,000 that is acquired without a specific line item will still come before Mr. Rivers' subcommittee, will it not?

Mr. KELLEHER. You mean in excess of $25,000.
Mr. LANKFORD. No; under $25,000.
Mr. KELLEHER. No, it will not.
Mr. LANKFORD. It would not come ?
Mr. KELLEHER. Only as a report and not a clearance.
The CHAIRMAN. All right. Read the next section now.
Mr. KELLEHER (reading):

SEC. 511. Section 408 (a) of the Act of August 3, 1956 (70 Stat. 991, 1016), is amended by adding the following new subsection at the end thereof:

“(5) No determination that a project is urgently required shall be necessary for projects, the cost of which is not in excess of $5,000.” The law today says that any of these minor projects need to be urgently required before this authority can be exercised.

I'he Department requests that the word "urgently" be stricken because it takes so much paperwork for a determination that it is urgent, that it is very expensive and time consuming.

The CHAIRMAN. All right. Without objection, it is agreed to.
Section 512.
Mr. KELLEHER (reading):

SEC. 512. Subsection (a) of section 406 of the Act of August 30, 1957 (71 Stat. 531, 556), is amended to read as follows:

“(a) Notwithstanding the provisions of any other law, and effective July 1, 1958, no family housing units shall be contracted for or acquired at or in support of military installations or activities unless the actual number of units involved has been specifically authorized by an annual military construction authorization act, except (1) housing units required to be acquired pursuant to the provisions of section 404 of the Housing Amendments of 1955"and so far that is the law today“(2) housing units leased, utilizing available operation and maintenance appropriations, for terms of one year, whether renewable or not, or for terms of not more than five years, pursuant to the provisions of section 417 of the Act of August 3, 1956 (70 Stat. 991, 1018); and (3) rental guaranty family housing authorized under section 302 of the Act of July 14, 1952 (66 Stat. 606, 662)."

Mr. Chairman, may I point out that those 2, exceptions (2) and (3), are added now. They are new.

The CHAIRMAN. Now let's discuss those two new ones.
Mr. KELLEHER. Yes, sir.

The housing units that would not have to come within the provisions of this are those that are leased for a year or so, that we just covered-at Nike sites and so on. You couldn't ever predict in advance when you are going to get this house so you could get a clearance.

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