H-1d. Veterans' Administration.-Coffee purchased by and for the Veterans' Administration shall be freshly roasted, in prime condition, free from mustiness or sour or seriously damaged beans, and shall produce approximately forty cups of satisfactory coffee to the pound. Shall exactly match in the cup the Veterans' Administration standard control coffee against which samples and deliveries shall be cup tested, a sample of which control coffee shall be furnished prospective bidders with the invitation to bid.

As an aid to bidders in blending coffee to exactly match the distinct cup characteristics of the Veterans' Administration standard control coffee, the kinds and approximate proportions of the various coffees put into the control, as furnished prospective bidders, will be described in the invitation to bid.

H-1d (1). Bidder shall furnished with his bid samples of the products he proposes to deliver under his bid; quantity, size, and time of delivery of such samples to be called for by the invitation to bid.

I. Notes.

I-1. Invitations for bids should state type and grade of subject commodity and style of packaging desired.

I-2. This specification governs all United States Government purchases of this commodity, except as to articles purchased under specified brand names and not under specification requirements, where such purchases, for resale purposes, are duly authorized.

I-3. Copies of this specification may be obtained upon application, accompanied by cash or money order, to the Superintendent of Documents, Government Printing Office, Washington, D. C. Price 5 cents.

1-4. The advantages of interested individuals may be served by the procurement of the Index of Federal Specifications, obtainable upon application, accompanied by cash or money order, to the Superintendent of Documents, Government Printing Office, Washington, D. C. Price, 5 cents.

I-5. Should material be offered by bidders under brand names, catalogue or model numbers, they must signify in the bid that material so offered meets this specification in all respects.

NOTICE. When Government drawings, specifications, or other data are used for any purpose other than in connection with a definitely related Government procurement operation, the United States Government thereby incurs no responsibility nor any obligation whatsoever, and the fact that the Government may have formulated, furnished, or in any way supplied the said drawings, specifications, or other data is not to be regarded by implication or otherwise as in any manner licensing the holder or any other person or corporation, or conveying any rights or permission to manufacture, use, or sell any patented invention that may in any way be related thereto.

FIELD CONFERENCES ON FEDERAL SUPPLY

MANAGEMENT PART III

(Section 4)

(Meeting held to study the operations of the Federal Supply Service of the General Services Administration, San Francisco, Calif.)

TUESDAY, AUGUST 26, 1952

HOUSE OF REPRESENTATIVES,

INTERGOVERNMENTAL RELATIONS SUBCOMMITTEE

OF THE COMMITTEE ON EXPENDITURES

IN THE EXECUTIVE DEPARTMENTS,1

San Francisco, Calif.

The subcommittee met at 3: 30 p. m., in room 421, Appraisers Building, 630 Sansome Street, San Francisco, Calif.

Present: Representatives Herbert C. Bonner (chairman), Cecil M. Harden, and Chet Holifield.

Staff members present: Thomas A. Kennedy, general counsel; Ray Ward, staff director; and Herbert Roback, staff director, Reorganization Subcommittee.

Also present: Jess Larson, Administrator, General Services Administration; Harlan C. Maaske, Deputy Regional Director, Federal Supply Service, region 9, GSA; Clifton E. Mack, Commissioner of Federal Supply, GSA; Maxwell Elliott, general counsel, GSA; Herbert Macomber, Jr., associate general counsel, GSA; Robert Bradford, Regional Director, region 9, FSA; Clarence W. Hull, regional counsel, GSA; Robert L. Bennett, Chief of the Federal Supply Division at Los Angeles; Earl R. Morford, Chief of the Stores Division for this region of the GSA; Robert C. Utzelman, regional traffic manager; Darrel E. Bray, stores division liaison officer; Robert E. Reno, Chief Inspector, Federal Supply Service; Robert I. Ashby, Chief of the Purchase Division, Los Angeles and San Francisco; Harry Folmer, Acting Chief, Personal Property Utilization Division; Rex A. Fones, Chief of the Accounts and Reports Division, Office of the Comptroller; Richard Greenburg, regional comptroller; and Ray M. McNarny, Chief of the Building Management Division, Public Buildings Service.

Mr. BONNER. The subcommittee will come to order.

First, as chairman of the subcommittee, I want to thank Mr. Jess Larson and his staff for the kind invitation issued to us to attend the dedication exercises held at your new warehouse, and to say that personally it was refreshing to me to see the full cooperation of the

1 Name changed to Committee on Government Operations, July 1, 1952.

military services and others attending the luncheon, cooperating with you in making possible a Government function that has a great responsibility and can serve a tremendous purpose and bring about more efficiency and economy throughout the Government. It is cooperation of that kind that has made America great and will continue to keep us a great Nation. With such cooperation, we needn't have any fear from any other part of the world.

Gentlemen, I am sure you all know that the so-called Bonner subcommittee has been studying Federal supply management, particularly in the military agencies, for a period of a couple of years. We have visited many military installations, both in the United States and overseas, and have found, as you know from our reports, that there is great extravagance and waste in the military supply system, particularly as it affects common items and services.

AIR FORCE WILLING FOR GENERAL SERVICES ADMINISTRATION TO SUPPLY COMMON ITEMS

Since the General Services Administration, which was set up under the Holifield Act, has great responsibility in the matter of common supply for all Federal agencies, we want to discuss the problem with you today. You perhaps have seen from the press releases that the high officers of the Air Force have now agreed to turn over their administrative supply responsibilities to other agencies, including the General Services Administration.

I would like to call to your attention a news clipping from the Dayton Journal-Herald of August 20, headlined "Common Supply Service Is Agreed by the Air Force," and another headline from the Dayton paper: "Air Force Drops Bulky Supply System." Still further another headline: "Congressional Group Pleased with AMC; Bonner Committee Heads Study on Air Force; Not Triplicating Supply Services."

ABILITY OF GENERAL SERVICES ADMINISTRATION TO ASSUME WORKLOAD

So far as we were able to ascertain during our visit to Dayton, the Air Forces have now come to the point where they are perfectly agreeable that their general purpose supplies that are intended to be handled by the General Services be furnished by the General Services. But, as you know, this is a big business, and we want to discuss with you your ability to assume the responsibilities of this magnitude.

I am sure you realize that this subcommittee cannot with conscience recommend that a military agency turn over supply or logistic responsibility to a civilian agency unless we are certain that the civilian agency can deliver the goods. We can't expect the Air Force to go through with their commitments unless your agency is perfected to the point that there will be no criticism of your service to the Air Force or to the other branches of the national defense or to any Government agency who calls on you for supply.

Mr. Larson and your staff, I would like to have an open and frank discussion with you, and the members of this subcommittee will appreciate your discussing the problems that confront us and confront you at this time. I know that a warehouse like the one we visited today must handle volume business at low cost if it is to be justified. Will

you be frank in discussing with us where we stand now in the matter and what is necessary in the way of legislation, or any suggestions you might make to this committee as to what would be helpful to you in perfecting your organization and bringing it into its full responsibility.

Of course, the subcommittee is glad to have present today with us Mr. Holifield, who is a ranking member of the full committee and has carried on most responsibly the assignments that have been given him by the chairman of the full committee, and is to be commended for his activity in committee work in the Congress.

The hearings of this subcommittee and the activity of this subcommittee have been nonpolitical. We have not sought sensational newspaper publicity. We have tried to conduct ourselves in a dignified way so as to gain the respect of the men in the services and other Government officials, whether they are in the military or civil service, or the bureaucrats, as some call them; and to find out the substantial things that need improving. You know, as well as we know, that the budget has to be balanced and has to be reduced. It is up to you men to help do it.

Now, Mr. Larson, do you have any opening comment to make? We will be glad to hear it.

STATEMENT OF JESS LARSON, ADMINISTRATOR, GENERAL

SERVICES ADMINISTRATION

Mr. LARSON. Thank you, Chairman Bonner, Mrs. Harden, Congressman Holifield. I do not have a prepared opening statement. I wish to express my personal appreciation, and I am sure that I speak for my colleagues in expressing sincere appreciation of your remarks.

We are available here today for the conduct of the business of the subcommittee, to furnish you such information as we may, and to make any frank comments about our operation and about the over-all Government or Federal supply systems generally that we are able to make as a result of our 3 years of existence and 3 years of responsibility in this field.

With me are Mr. Clifton E. Mack, whom you know, Commissioner of Federal Supply, and Mr. Maxwell Elliott, general counsel of the General Services Administration, both of whom are from Washington. Also we have here Mr. Robert Bradford, the Regional Director of Region 9 of General Services Administration, and his staff, who are prepared to enlighten the subcommittee and furnish such information as the committee might desire, from their point of view as operators on the actual working, supplying, using level of the Government.

I would like to have Mr. Mack join me here, and Mr. Elliott, and Mr. Bradford, if they will pull up chairs, and we will make ourselves available to the subcommittee as you see fit, sir.

Mr. BONNER. There is a field in civilian agencies, as well as military agencies, where you are supposed to supply certain items. Now, are there statistics available to show the volume of these items and the extent to which you have been able to supply them during the existence of your organization in this region?

GENERAL SERVICES ADMINISTRATION SHOULD REDUCE GENERAL OVERHEAD

The reason I ask that is because, if your organization is justified in existing, then you should get in this field and relieve the other