CHART NO. 11 WIDESPREAD USE OF ADP IN GOVERNMENT B) NUMBER OF COMPUTERS IN PLACE IN GOVERNMENT. 220 220 ECONOMIC IMPACT OF FEDERAL PROCUREMENT Representative GRIFFITHS. I do have some questions. Mr. Ward has been very busy and he has discovered from the Federal Property Act of 1949, as amended, that you have the power to issue regulations regarding this contractor Government-owned inventory. Mr. KNOTT. I am not sure that I follow. On what point? GSA REGULATIONS ON CONTRACTOR INVENTORY Representative GRIFFITHS (reading). "Subsequent to regulations of the Administrator, any executive agency may authorize any contractor with such agency or subcontractor thereunder; to retain or dispose of any contractor inventory." How many regulations has the Administrator ever issued? Representative GRIFFITHS. This is section 203 (7) (f) of Public Law 152. Mr. GASQUE. Madam Chairman, to my best recollection we have issued regulations currently under the Federal property management regulations system covering this point. Mr. Ward is certainly correct that we do have the authority under section 203 (f) of the Federal Property and Administrative Services Act of 1949, to issue such regulations. Representative GRIFFITHS. Well, how far have you exercised it? Mr. GASQUE. We would be very happy to furnish for the record the regulations, Madam Chairman. (GSA subsequently supplied the regulations which are reproduced immediately following this testimony.) EXTENT OF CONTRACTOR INVENTORY Representative GRIFFITHS. I want more than that. I want the in ventory. Mr. GASQUE. I will ask Mr. Greenberg. Representative GRIFFITHS. I want to know what you own that the contractor is using and how will you get it back in Government warehouses or what you do with it. Mr. GREENBERG. We don't have any contractor inventory in GSA, Madam Chairman. This deals with the contractor inventory of the individual agencies of the Federal Government. But we do not have contractor inventory, we do not expend any money for it, we do not maintain the inventory control, nor do we govern whether or not it is excess to the needs of the contractor. Representative GRIFFITHS. But you issue regulations governing it. I want to know what kind of regulations you have issued and who has produced the inventory. Who knows where the stuff is? Mr. GREENBERG. Every Federal agency of Government who has a contractor. GSA does not have this basic responsibility. Representative GRIFFITHS. GSA is supposed to. (Reading from sec. 3(k), Public Law 152:) The term "contractor inventory" means (1) any property acquired by and in the possession of a contractor or subcontractor under a contract pursuant to the terms of which title is vested in the Government and in excess of the amount needed to complete full performance. Then we get over here in 203 (7) (f) : Subject to regulations of the Administrator any executive agency may authorize any contractor with such agency or subcontractor thereunder to retain or dispose of any contractor inventory. What we want to know is what regulations have you issued and what have you people done? Have you ever checked up on whether you have carried out the regulations? Mr. GASQUE. Madam Chairman, as I said, we will be very happy to provide you with a copy of our regulations and any other information we have available or can get for you on that point. Representative GRIFFITHS. See if you can find out what they are doing under the regulations for us. Check up to see if they are complying. Mr. GASQUE. We will certainly try, Madam Chairman, to get you whatever information is available. GSA AND ASPR CONCERNING CONTRACTOR INVENTORY Representative GRIFFITHS. Does the military issue a contract that refers to your regulations or to their own procurement regulations? Mr. GASQUE. With respect to procurement, the Department of Defense makes its contracts pursuant to its own regulations, the Armed Services Procurement Regulation. Representative GRIFFITHS. They do not follow yours as to contractor inventory? Mr. GASQUE. No. However, I would like to point out that in the development of the Federal Procurement Regulations those regulations are coordinated practically word for word with the ASPR committee of the Department of Defense. So, to the extent that there is a regulation governing any facet of procurement in the FPR, it is practically identical with the corresponding regulation in the Armed Services Procurement Regulation. In connection with the sale of Government property, we have, if my understanding of the law is correct, complete authority with respect to the issuance of regulations on disposal of Government property. Our regulations on the disposal of Government property are now issued in the Federal Property Management Regulations. The regulations which we will provide you with respect to contractor inventory are from that set of regulations and apply to the Department of Defense. Representative GRIFFITHS. Do you consider that you have delegated your authority to write the regulations? Mr. GASQUE. On procurement of property? Representative GRIFFITHS. On contractor inventory. Have you delegated your authority? Mr. GASQUE. NO. We have issued the regulations governing this matter. Representative GRIFFITHS. Have you ever checked up on what they do? Mr. GASQUE. I do not know whether we have or not, ma'am. I can't answer that. We will be glad to look into it for you, though. Representative GRIFFITHS. While you are checking up on that, will you do something with these subcontractors? I have another sugges |