INQUIRY INTO POSSIBLE CONFLICTS OF INTEREST HEARING BEFORE THE SUBCOMMITTEE ON CENTER FOR NAVAL ANALYSES, Į 4). S. Comress. Senate. OF THE COMMITTEE ON ARMED SERVICES UNITED STATES SENATE NINETY-SECOND CONGRESS MDW de' CONTENTS Ра (III) INQUIRY INTO POSSIBLE CONFLICTS OF INTERES INVOLVING THE CENTER FOR NAVAL ANALYSES MONDAY, SEPTEMBER 20, 1971. U.S. SENATE, SUBCOMMITTEE ON CENTER FOR NAVAL ANALYSES, Washington, D.C. The Subcommittee on Center for Naval Analyses composed Senators Byrd, Jr., of Virginia (chairman), and Smith, met, pursual to notice, at 2:30 p.m., in room 224, Old Senate Office Building. Present: Senators Byrd (presiding) and Smith. Also present: Senator Schweiker. Staff present: L. B. Garcia, counsel, Hyman Fine, and Charles Conneely, professional staff members, and Mary E. Keough, staff aid Senator BYRD. The committee will come to order. This subcommittee was appointed on September 3, 1971, to inqui into matters on possible conflicts of interest involving the Center f Naval Analyses. This organization is a federally funded contract r search center providing services for the Department of the Nav under contract with the University of Rochester. The Center for Naval Analyses is one of several federally fund contract research centers which function under contractual agre ments with the military services and the Department of Defense. These centers are of particular interest to the Senate Arm Services Committee because funds for their continued operation are part of the annual defense authorization bill. For some time there has been a growing apprehension about salari paid by these so-called nonprofit organizations, as well as their siz which operate under annually financed defense contracts. While the organizations are nongovernment in nature, most, if not all, of the income is from defense contracts. Even today there are those who fe that Federal contract research centers provide means to circumve civil service compensation salary scales. The Congress is responsible not only for surveillance of that po tion of the budget which provides for their funding but the manag ment and operation of the centers as well. During consideration of the fiscal year 1970 authorization bill. t committee recommended the enactment of section 407 of Public La 91-121 which imposed a ceiling of $45.000 per annum on the con pensation of officers and employees of these centers. The law furth provides that exceptions to this limitation would require approval (1) |