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A small boatyard on Cape Cod, which was operating under a Navy contract, had been forced to shut down for over a year pending engineering changes in the construction of boats. When the Navy Department refused to compensate the boatyard properly for the additional cost of the changes, the Small Business Administration interceded in behalf of the firm and the Navy Department agreed to review the claim. A settlement was made for the changes which were acceptable and which will permit the small firm to complete the contract profitably. From a successful bidder in Missouri: “*** Thank you for the splendid cooperation and assistance that the Small Business Administration has given us. Through your efforts in notifying us of Government proposals opened to small business, we were successful in obtaining two of these contracts."

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A small furniture manufacturer in West Virginia was the only bidder on an invitation to bid for dressers. The contracting officer indicated that this company was to be denied the award. Investigation and followthrough by the Small Business Administration resulted in the award of this contract to the small business and also allowed the manufacturer to make delivery of these dressers by his own trucking facilities without the necessity of expensive and unnecessary crating. This resulted in a substantial saving to the Government.

EXHIBIT H

Typical examples of the types of problems with which production assistance was given are:

A small firm in South Carolina sought advice on the machinery, equipment, and plant layout required to produce liquid petroleum gas tanks of varied sizes. A Small Business Administration production specialist suggested that the company begin operations by purchasing dome and side sheets which already had been formed and rolled, leaving only inspection of incoming material, welding, finish inspection, painting, and shipping to be done. The specialist also suggested that later, as a first step in expanding operations, the company might purchase rolling equipment and power shears for rolling side sheets. If further expansion were warranted, he suggested that the next step might be the addition of equipment for hot or cold rolling the tank domes. A suggested plant layout also was furnished, showing location of various pieces of equipment, providing for storage and handling of raw steel and finished products, and making allowances for future expansion. The firm was advised of the requirements for certification of their product by the American Society of Mechanical Engineers. A Small Business Administration production specialist, visiting a sheet metal fabricating plant in Texas, noticed that flat panels were being cleaned, degreased, and pointed by manual dipping in tanks, although a conveyor system moved the panels after painting. He pointed out that, for relatively little cost, the conveyor system could be extended and new tanks designed so that the entire operation would be largely automatic. He also recommended spray painting, instead of dipping, to reduce costs. The company has adopted the recommendations, and estimates that the new installations will pay for themselves in reduced costs in less than 18 months.

Another Small Business Administration specialist, calling on a small business in Missouri engaged in a sewing operation, suggested changes in the method of loading the cutting tables and in moving work in process into the sewing room. As a result of these changes the firm was able to show a profit rather than loss on a defense contract which it was then performing.

In another case, a small metal fabrication shop was low bidder on a large contract for the tar kettles but was in danger of losing the award. The owner appealed to the Small Business Administration for assistance. The company's bid had been rejected by the contracting officer because he questioned its ability to meet the contract requirements. An SBA specialist surveyed the plant and found that it actually could not meet the required specifications. When the specialist pointed out the reasons for his finding, the small-firm owner was convinced beyond any question. Instead of regretting loss of the contract, he then was very grateful to the Small Business Administration for showing him that the contract, if awarded, would have been disastrous to his small company. A small California firm which manufactures canvas items had difficulty in obtaining Government contracts because of poor management and lack of quality control. Under the Small Business Administration's guidance the firm improved its operations and quality control. As a result its Government orders have increased to the point that the firm now has 4 times as many employees as it did 2 years ago.

Soon after it opened a new department in the field of light metal stampings, a Texas chemical products firm found that it lacked necessary technical knowledge in many phases of the operation. An SBA representative analyzed the firm's problems and located a professional engineering consultant who agreed to work with the firm on a part-time basis.

The operator of a small welding shop in Minnesota developed a rough design of a truck tank for delivery of turkey mash directly from the mill to the feeder. However, he was confronted by design and production obstacles. An SBA industrial specialist suggested changes in design to simplify production and methods for fabricating parts and assemblies to effect cost savings.

A group of persons who wished to form a company to manufacture railroad signal flares called upon the Small Business Administration for assistance. Agency representatives aided in obtaining a suitable location for the plant and in getting the necessary equipment and supplies.

A Washington firm developed and patented a high-speed automatic wrapping machine to wrap and seal meats, vegetables, and bakery goods with cellophane, pliofilm, polyethylene, and similar materials. At the request of the manufacturer an SBA production specialist studied the machine and recommended that certain refinements be incorporated in the production units. The agency staff member suggested also that assembly jigs and fixtures be designed and estimates: of assembled unit production costs be obtained. The management has now completed the production assembly jigs and fixtures and has under production the first of its machines.

A plastic molding and tool and die company in Oregon had been experiencing heavy financial losses due to a high percentage of rejected parts produced from various dies. After study of the firm's production techniques, an SBA production specialist recommended that improved temperature control be adhered to in the casting cycle of the molding machines and that greater circulation of coolants adjacent to the cavities in the die blocks be provided where necessary. The firm is now exercising greater production and quality control and operating on a profitable basis.

EXHIBIT I

EXAMPLES OF REQUESTS FOR ASSISTANCE RECEIVED, INDICATING NATURE OF REQUEST AND THE TYPE OF ASSISTANCE PROVIDED IN EACH INSTANCE

A small New York concern which had acquired a large quantity of glass photographic negative plates in lieu of payment on a bad debt, requested assistance from the Small Business Administration in providing information which would enable it to reclaim the silver bromide and other forms of precions metal existing in the photographic emulsion. Many sources had been contacted by the small concern to obtain the needed information without satisfactory results. The SBA submitted this problem to a number of public and private technical information sources, and as a result a photographic emulsion removal process was developed. In addition, several emulsion and photographic solutions reclamation firms were contacted to assay value of emulsion sludge, confirming profitable salvage value. This technical information was transmitted to the small firm, including salvage sources and complete processes for stripping reclaimed silver-bearing emulsion and cleaning glass for resale.

A small Pennsylvania three-man establishment producing a dietary meat substitute from wheat flour requested the assistance of the Small Business Administration in providing information on salvaging the 80-percent waste in the form of wheat starch slurry resulting from this operation.

Several public and private sources which had developed information on the commercial utilization of wheat starch slurry were contacted and the small concern was furnished all available technical information on research and development concerning this particular subject, including publications regarding starch from wheat and other cereal flours, wet milling of cereal grains, making starch from wheat flour, batter process for the separation of starch and gluten from wheat flours, wheat starch manufacture and details of equipment needed. and processing methods.

A small Ohio concern interested in obtaining plans and specifications of various types of bomb shelters requested assistance from the Small Business Administration in providing this information.

Through the cooperation of the Federal Civil Defense Administration information was provided on a TV-5-2 shelter from radio active fallout, shelter designs— home type and industrial underground personnel type (30 persons). In addition,

information was provided through the cooperation of the Atomic Energy Commission on the availability of Government patents on structural materials used in bomb shelters. The firm also was furnished information on a privately owned patented bomb shelter.

A small New York concern receiving regular issues of the products list cir cular requested information on an invention listed in the circular titled "DripProof Cup." The small company had open productive capacity and was interested in manufacuring and marketing this product. The firm was put in touch with the owner of this invention who resided in Missouri, and within a week the Small Business Administration office in Kansas City reported that the inventor had been contacted by the firm and a contract arranged.

A small producer of insecticides in Indiana, who desired to expand his production activities requested assistance from the Small Business Administration in providing technical information on available research developments concerning commercial utilization of farm wastes.

This agency solicited both private and public sources for information which would be helpful to this small producer and obtained several publications containing current developments in the utilization of various types of farm waste. These were forwarded to the inquiring source, who upon receipt of the information, addressed the following letter to the Small Business Administration: "Thank you very much for your letter of July 12 and the various pieces of material that you have sent for our information.

"It is indeed a fine feeling for a small-business man to know that he has a division such as yours in the Federal Government working in his behalf. Sometimes we businessmen have the feeling that the Government is so darn big they spend all their time on billion-dollar deals and interoffice communications, obviously this is not true in your case

"Thanks again for your assistance in this matter and we think very possibly we will come up with something either from the material you have sent us or which you say we shall receive in your publications."

A letter was received from a small California firm requesting information which would enable it to adjust its formula for producing a mastic or adhesive for applying aluminum wall tile to walls and ceilings so that various qualities could be manufactured.

As industry sources for technical information on research and development of adhesives are generally of a proprietary and confidential nature, the technical information sought was obtained from Government research reports. These reports were the result of research contracts performed primarily by industrial research laboratories for the United States Government. This information on adhesives together with Federal Text Method Specification Standard Publication titled "Adhesive: Methods of Testing" was forwarded to the inquiring source. In addition the small firm was furnished patent abstracts of Government owned inventions available for licensing covering the subject of adhesives. Another small industrial firm in Iowa requested assistance in obtaining information on the commercial development and utilization of the vast amount of corncobs available in that State. After searching for a solution to this problem, the Small Business Administration was able to furnish the following studies and reports to the firm:

1. Corncobs-Their Composition, Availability, Agriculture and Industrial Uses.

2. Soft Grits Provide Low-Cost Method for blast Cleaning Metals.

3. New Abrasive for Hand Soaps.

4. More Cob Processing Plants.

5. Butyl Alcohol.

6. Saccharification Lignin Concentrates in Phenalies.

7. The Storage of Corncobs and Other Agricultural Residues for Industrial Use.

Further research revealed that considerable corncob tonnage (400,000 per year) was being utilized in the manufacture of furfural, and that a national cereal manufacturer located in the State of Iowa afforded a highly potential marketing outlet for the small firm.

A small Maryland firm addressed the following letter to the Small Business Administration:

"We wish to bleach our own shellac but are having difficulty obtaining the services of someone who knows how. We now cut shellac ourselves. Could you suggest a chemist or the method. Your aid will be appreciated."

Through the cooperation of industrial and governmental sources the small firm was assisted by providing it with sources where the desired information would be available. This assistance included publications issued by the United States Bureau of Standards, and other publications issued by a national trade association. In addition a listing of the names of four manufacturers of bleached shellac was furnished. EXHIBIT J

Typical comments regarding Small Business Administration management publications are:

A laundryman in Long Beach, Calif. wrote: "I believe the service your department renders *** is outstanding, and one of the best methods our Government has used to provide factual and educational information to the people who need it."

A Chicago manufacturer wrote: "The publications made available by you for small businesses have been very helpful to us since we are a relatively small company and have benefited tremendously by these aids."

A Michigan firm's sales manager wrote: "These publications are used in our own business, plus being used as a means of passing along information to our dealers."

An Ohio bank vice president wrote: "We are very much in favor of your *** Small Business Administration publications. We maintain a complete file for reference for our offices and customers."

A New York manufacturer said: "We find your small-business aids of great help. In our type of small business where it is not possible to employ individuals specializing in the various phases of office management and selling, we find your suggestions as valuable as a silent partner."

A New York management consultant said this of the aids: "This material is of excellent value. *** It has given us many good ideas, it has taught us many things we did not know previously, and it has allowed us to pass on * * * tips to *** manufacturers we represent."

Typical examples of problems for which other business counseling assistance was given are:

"We are studying our office equipment and machinery to determine its practicality *** Have you information on current types of office machines and their application to various office procedures?" Information and sources of information were supplied.

"We are a food-processing concern and desire to know where we can obtain information concerning the maintenance of high-quality sanitation standards." The concern was referred to specific trade associations and trade journals.

"I am interested in organizing and operating a restaurant and would appreciate any information you could forward me.' Sources of information were supplied on leasing and buying a location, food preparation, recordkeeping, operational methods, and operating ratios for restaurants.

One inquirer sought information concerning the reorganization of his small company. He was especially interested in the advisability of having as president a man primarily interested in research and development. As part of the counsel offered, the Small Business Administration suggested that he consult with officers of a certain company which already had a technical man as president. The businessman followed this recommendation with satisfactory results.

"I should like information with reference to a small business dealing in air compressors and equipment related to skin diving." Sources of information on the manufacture, cost, and merchandising of air compressors and other types of skin-diving equipment were supplied.

"I plan to open a used-clothing store and would appreciate information concerning this type of business-store operation, capital investment, taxes and licenses, factory rejects, etc." Information was obtained from a Government

specialist in the retail clothing field and forwarded to the inquirer.

Typical comments from businessmen who have completed consponsored administrative management courses are:

"I am taking back to the office help that I'll be able to use and apply with an understanding I haven't had in the past."

"I think this type course should be recommended to all persons entering into business-we've learned most of the points mentioned the hard way."

"The financing knowledge picked up helped me to secure financing that I couldn't have gotten otherwise. This is worth more to me than the cost of the entire course."

"This course has helped me decide on making a major change in my business. This is due to no specific statement or lecture, but to the general information gained from the entire course."

"I received more than my money's worth of knowledge and believe that more small-business men should be given the opportunity to take such a course."

EXHIBIT K

Distribution and sale of publications, July 1, 1956-Mar. 31, 1957

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1. How Small Plants Can Sell to the Federal Government

2. Adequate Production Control

3. Reducing Accident Costs in Small Industrial Plants

4. Business Insurance-I

5. Reducing Accident Costs Through Safe Working Conditions 6. Is Your Labor Turnover Cost Too High?

7. Reducing Accident Costs by Use of Safety Committees

8. Incentive Techniques in Small Business

9. How the Small Plant Can Analyze Old and New Markets

10. Saving Manpower in Industry

11. Minimizing the Cost of Breaking in New Personnel

12. Reducing Accident Costs Through Reports and Records

13. Small Plant Health and Medical Programs

14. Subcontracting for Small Plants

15. Business Insurance-II

16. Methods Engineering for the Small Plant

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