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149 requests were approved for equipment transfers, totaling $666,624, and 2 were disapproved; 54 requests were approved for disposal of excess or wornout equipment and 234 form 7's, reporting disposal of certain equipment, were received and processed; 44 requests were approved to lease or rent equipment at a cost of $25,534 per month, and 4 requests were approved to cancel equipment rental contracts.

There were 13 requests to establish new plants and 14 requests to close plants, all of which were approved.

Seventy-eight requests were received for permission to make free distribution of over 50 copies of Government publications to private organizations. These were approved after careful consideration.

Ten requests to produce or procure printing jobs containing multiple color work costing in excess of $500 in any one instance were evaluated by the staff before submission for production. In addition, there were 95 jobs containing illustrations or additional color work where the cost in any single instance exceeded $500 received at the Government Printing Office and referred to this committee for consideration. Of this total, 55 were for additional color, at a cost of $156,967, which was about a 21.5 percent decrease over fiscal year 1959, and 40 were for illustrations, at a cost of $39,106, representing a 27.7 percent decrease over fiscal year 1959.

One request was received for permission to produce departmental printing in a field plant; one request to charge printing to the congressional appropriation for printing and binding; two requests from the Patent Office involving procurement of lithographic work commercially; two requests to exceed the maximum number of copies allowed by law of annual reports to Congress; two requests seeking advice as to most economical operation of printing plants; one Comptroller General report concerning operation of printing equipment in a duplicating facility; two requests to use other than standard wall date calendars; and two requests to operate power-operated bindery equipment in duplicating facilities. All requests were approved except the two involving use of power-operated bindery equipment.

In many of these 1,185 cases, the committee staff made a thorough technical evaluation, consulted with the requesting agency when necessary, and finally made a physical survey if there were still questions unanswered. Therefore, many of the requests that were approved had been revised in keeping with the final outcome of the staff study. In following this procedure, the staff had 168 meetings with agencies and the industry during the past fiscal year and visited 58 plants in Alabama, California, Georgia, Indiana, Kentucky, Louisiana, Maryland, Massachusetts, Missouri, New York, North Carolina, Ohio, Oklahoma, Panama Canal, Puerto Rico, Rhode Island, Texas, Virginia, and Washington, D.C.

As in the past, the information contained in the periodical reports is a great help in evaluating requests. All plants must submit to the Joint Committee on Printing a production report every 6 months and an inventory report at the close of the fiscal year. All departments and agencies are also required to file a semiannual report covering all contract field printing transactions. Thus the staff is able to maintain a current inventory and an adequate production picture of all plants and, in addition, keep a careful check on the expenditure of contract field printing moneys.

As of June 30, 1960, there were 332 committee-authorized Government printing plants, excluding shipboard plants, and during fiscal year 1960 their total cost of operations was $78,676,689. Produced in these plants during that period were 12,008,612,292 units by offset, 862,678,258 units by letterpress, and 438,438,318 units by mimeo and ditto. The estimated value of equipment in these plants was $15,729,049. In addition, Government departments and agencies secured 807 waivers from the Government Printing Office and procured such work from other sources at an estimated cost of $4,023,567, and purchased $16,024,118 worth of field printing from commercial sources.

The Government Printing Office produced in the main plant $63,295,413 worth of printing and binding, and in their field service offices, $4,639,176. They contracted work from commercial plants in the amount of $31,062,889. The book value of their equipment is $10,015,816.

Therefore, the approximate cost of printing and binding produced by the Government was $146,611,278, consisting of $78,676,689 worth produced by Government-owned and operated agency printing plants, $63,295,413 worth produced by the Government Printing Office, and $4,639,176 worth produced by the field plants

of the Government Printing Office. Adding to this amount $51,110,574 worth of printing contracted by the Government from commercial plants, the total approximate cost to the Government during fiscal year 1960 was $197,721,852. Using the figures developed in the preceding paragraph, we show below in table 1 a breakdown of the cost of Government printing and binding in fiscal year 1960 between that work produced and procured by the Government Printing Office and its field offices, and that work produced and procured by other Government departments and agencies. In table 2, by regrouping the figures, we show a breakdown of the total cost between that work produced in Government plants and that work procured commercially.

TABLE 1.-Cost of Government printing and binding, fiscal year 1960

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The best estimate available of the total dollar volume of commercial printing and binding in the United States during fiscal year 1960, excluding newspapers, is $5,514,803,000. Therefore, based on that figure, the total dollar volume of Government printing and binding produced on Government facilities ($146,611,278) amounted to 2.66 percent of the total dollar volume of commercial printing and binding,

It is important that we remember that these figures apply only to the work and equipment of the Government Printing Office and of the printing plants authorized by this committee pursuant to law,' and include none of the value of and work produced in office-type duplicating facilities.

The committee opened bids and made awards on paper four times during the period, for a total amount of 153,240,616 pounds, valued at $19,988,876. Bids for envelopes were received and opened twice and awards made for 133,533,250 envelopes at a value of $429,966. Specifications for the paper and envelopes covered by these bid openings and contract awards were developed by the Committee on Paper Specifications under the chairmanship of the staff director. The committee also authorized the Public Printer to purchase paper and envelopes in the open market in the amount of $578,598, and approved annual contracts for newsprint in the amount of $484,209.

1 Work produced or procured by the State Department overseas, by the Supreme Court, and classified work involving security is not reported to the committee.

69462-61-20

The committee staff processed 844 requests from the Government Printing Office, as follows:

There were 627 requests, totaling $2,030,276, for authority to purchase material and supplies where the cost exceeded $1,000 in any one instance.

One hundred and seventy-three requests for authority to accept at a discount approximately 4,712 tons of paper which did not meet specifications and one request for authority to accept, at a discount, 20,000 envelopes which did not meet specifications.

There were 21 requests for authority to enter into contracts totaling $1,006,580 for materials, service, space, and hauling.

There were 19 requests to purchase printing equipment, totaling $100,595, of which $49,694 was for replacement of unserviceable equipment; and 3 requests to rent equipment at an annual cost of $38,964.

The staff assisted in many problems concerning legislative printing and distribution, and answered many questions regarding the correct interpretation of the printing laws and regulations.

Under the authority contained in section 133, title 44, United States Code, the committee issued 961 requisitions to the Public Printer to order additional copies of congressional publications for the use of committees, the document rooms, and Members of Congress,

Controls were continued which affected the printing of identical bills whereby quantities for the document rooms and certain orders from departments and agencies were reduced to a number determined to be adequate.

The staff compiled for committee publication and distribution the regular Congressional Directory, seven memorial volumes on deceased Members, four veterans' organization reports, quarterly reports as required by the Lobbying Act were received and prepared for publication in the Congressional Record; information was obtained and recorded for a revised edition of the Biographical Directory of the American Congress; several volumes of the index to Executive Proceedings of the Senate were completed by the staff in order to save type storage costs and to bring the volumes up to date.

Pursuant to its annual custom, the staff met with representatives of the executive branch and the Government Printing Office on May 24, May 26, and June 9, 1960 to discuss recommendations of the department and agency printing heads relative to the revision of Government Printing and Binding Regulations. The heavy legislative schedule precluded the committee's consideration of the proposed changes and, consequently, Regulations No. 12 have remained in effect. However, "Government Paper Specification Standards No. 2," effective July 1,1960, was issued by the committee. One of the most beneficial revisions incorporated in this issue was the expansion of the use information paragraph in each specification, thereby enabling departments and agencies to plan for more efficient and economical use of paper and assisting paper manufacturers to supply the Government with paper better suited to meet its minimum end use requirements. This program, still in its infancy relatively speaking, continues to attract the enthusiastic support of members of the paper industry.

Respectfully submitted.

JAMES L. HARRISON, Staff Director.

Mr. HARRISON. This report shows the cost of printing in 1960 for other departments produced in committee-authorized printing plants was $78,676,689; by waiver issued from the Government Printing Office, $4,023,567; and by contract field printing-that is, printing bought in the field from commercial sources-$16,024,118.

Mr. STEED. Does that $16,024,118 represent all the work that is contracted out both in Washington and in the field?

Mr. HARRISON. No, that is only in the field, contract printing in the field. The amount bought on waiver by the Government Printing Office would represent the printing in Washington. That is $4,023,567. There is also $31,062,889 worth of printing procured by the Government Printing Office."

The overall balances are pretty close together. The Government Printing Office had $98,997,478, and other departments, $98,724,374. Mr. STEED. How much of that comes under the heading of what you would consider duplication?

Mr. HARRISON. You mean the process of printing that is duplication?

Mr. STEED. No; the duplication involved, where instead of your doing it, the departments do it themselves. Are we in a situation here of having in effect two Government printing offices doing the same thing?

Mr. HARRISON. In effect that is true to a point. We feel, and I felt when I was with the Joint Committee on Printing, that the Government departments themselves are doing too much printing. When I came with the Government we had 900 authorized printing offices throughout the world. When this report was written we had 332 committee-authorized plants. That is still too many. But I think in 12 years the reduction of 600 is not too much out of line. I think it can be reduced considerably more.

I want you to understand I am not being critical of the former Public Printer or the operations of the Government Printing Office which my good friends and assistants here had a part in, but the former Public Printer was not particularly interested in his field plants. It was something they had inherited from the Department of the Treasury and they were pretty much willing to let it slide. About 5 years ago he wanted to close the Seattle, Denver, and San Francisco plants and the Joint Committee on Printing said "No." And that is because they were able in those instances where there are Government Printing Office plants to say, "You cannot justify equipment because we have a Government Printing Office plant in those towns."

We feel a well-equipped, well-manned plant can produce printing much better and cheaper than four or five plants that are just-well, jacklegs. The equipment is not used fully; the personnel is not used fully. I proposed to the field plants, with the concurrence of the Joint Committee on Printing-and I have just completed a trip to all the field plants-that, "You can grow as large as you can grow. ." I would like to have each of our field plants be the point of printing procurement for every Government agency in the area. We can save them money because if we can get the jobs we can cut our prices because we will fully utilize both equipment and manpower. The Joint Committee on Printing is very pleased with this approach. Of course it is an approach I have had for years.

Mr. HORAN. Could we have a list of the locations of all the Government Printing Office plants?

Mr. HARRISON. Yes. We have five field plants: New York, Chicago, Denver, San Francisco, and Seattle. At one time we had 12. The others have been discontinued.

WAGE RATES AND POLICIES

Mr. STEED. I know you have contract conferences with your employees on wages and you try to maintain wage scales that will be comparable to those in the industry generally. Do these other departments, in their own independent printing plants, comply with your schedules, or do they vary?

Mr. HARRISON. They vary to some degree, Congressman. Most of the departments set their wages through the interdepartmental lithographic wage board. I think it is made up of representatives from

some 12 agencies that will go into an area and make a survey of the wages paid in commercial plants and come up with what they call the local rate. In New York, for example, we had two or three people that made considerably less in the Government Printing Office plant than the Navy and other agencies paid. That, however, has been corrected.

Our wages are set under the Kiess Act, an act that was passed in 1924. Congressman Kiess sponsored the legislation which in effect says that the Public Printer shall have a conference with the wage groups in the Government Printing Office and will make them an offer, and they can either accept the offer or appeal to the Joint Committee on Printing.

Mr. STEED. What percentage of your employees are affected by that type of wage as against those that are on an annual basis?

Mr. HARRISON. They are ail under the act now.

Mr. STEED. How often are the wages reviewed?

Mr. HARRISON. The Kiess Act provides that wages cannot be revised more often than once a year. We go through it every year.

Mr. STEED. Does that come at a time when it upsets your budget, assuming that a wage increase is granted?

Mr. HARRISON. No. We are able to absorb those increases by continuing to keep up with modernization, and of course if it does increase it a little bit we have to increase our prices to our customers a little bit. Mr. STEED. When was the last increase?

Mr. HARRISON. We settled with the compositors on an appeal which they made last August. We settled in April with the compositors. The anniversary date of the photoengravers was in March and they accepted the Public Printer's offer in March. It was based on what we call a weighted average of the 25 largest cities. The Bureau of Labor Statistics gathers information from the 25 largest cities by population and submits to us the weighted average and under the formula the Joint Committee on Printing has worked out, the Public Printer then offers the wage group the weighted average or the local rate, whichever is higher. In most cases the weighted average is a few cents higher and they accept the weighted average.

FRANCONIA WAREHOUSE

Mr. STEED. In the matter of the damage that you suffered in your Franconia warehouse, how much space do you use out there?

Mr. HARRISON. We would like to furnish that for the record.

Mr. STEED. Will you do that, and also the rental that you pay for it. Mr. HARRISON. Yes, sir; we will be very glad to do that.

(The information requested follows:)

A total of 171,037 square feet of space was rented in the fiscal year 1960 at a cost of $149,828.

PROPOSED NEW GPÓ ANNEX

Mr. STEED. What is the status of the proposed new GPO annex building?

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