Mr. STAATS. The circular, in brief, directs the heads of each department and agency to Assume direct supervision of a formal cost-reduction program; establish specific dollar-cost reduction goals; initiate a systematic and periodic review of programs and operations from the standpoint of relative priorities; identify roadblocks to cost reduction which may require legislative action or cooperation from other agencies; subject every major proposed expenditure to searching scrutiny in terms of costs and benefits; employ independent means to verify reported savings; Our goal, under the stimulus of this extended program, is to exceed last year's reported cost reduction. The Bureau of the Budget has recently issued a booklet on "War on Waste," which will give the committee an indication of the wide range of the cost reductions achieved. There are sections reporting savings in property and supply management, in automatic data processing, and other areas of interest to the committee. AUTOMATIC DATA-PROCESSING PROGRAM On March 2, 1965, the President approved a Bureau of the Budget report on the management of automatic data processing in the Government. Copies of that report, published as Senate Document 15, 89th Congress, have already been provided to this committee. The report reviews and evaluates our existing policies, regulations, legislation,and practices, and recommends an action program for augmenting our resources and otherwise strengthening the automatic data processing management program. Specific legislative requirements are identified. Prepared with the advice and assistance of a high-level, Government-industry committee, the report highlights a number of accomplishments in automatic data processing management during the past few years. Some of these are of special interest to this committee. For example, a fairly dramatic increase has occurred, since 1963, in purchasing automatic data processing equipment rather than renting. Whereas only 15 percent of our equipment inventory was owned in 1962, 46 percent is owned today. Current estimates indicate that over 50 percent will be owned by the end of fiscal year 1966. The net savings resulting from the purchases made in fiscal years 1963, 1964, and 1965 are expected to be about $200 million within the first 5 years. Automatic data processing equipment sharing exchanges have been established in six regional areas of the country, under General Services Administration leadership. Up to seven more will be established. As a result, sharing of automatic data processing equipment and services within and between agencies is rising consistently, resulting in greater economy in the performance of needed work. Excess and surplus automatic data processing equipment, both owned and rented, is put through special screening processes by the General Services Administration to facilitate continued use in Government whenever practical. Hours of utilization of equipment rise steadily, especially for the medium- and large-scale equipment. As of last year, equipment in the price range of $1.5 million and up was utilized an average of 410 hours per month, which is virtually around-the-clock operation, 5 days a week. For all equipment, the average was 313 hours, up from 285 the previous year. Figures for this year will be available for publication in about 60 days. The automatic data processing management report also points to actions which should be taken by the Bureau of the Budget, General Services Administration, National Bureau of Standards, and Civil Service Commission to provide needed additional policies, guidelines, regulations, and consultative assistance and to undertake expanded research in automatic data processing technology. On March 6, the Bureau of the Budget issued a circular (A-71) defining the responsibilities of these agencies in the administration and management of automatic data processing activities. I have copies available if the committee is interested in them, and a copy of this is in the report, itself, Mr. Chairman. Representative CURTIS. How long a document is it? Mr. STAATS. It is very, very brief. It is a matter of three or four pages, sir. Representative CURTIS. We will include it in the record. Mr. STAATS. Yes, sir. (The Bureau of the Budget subsequently furnished the following material :) Mr. STAATS. The circular, in brief, directs the heads of each department and agency to Assume direct supervision of a formal cost-reduction program; establish specific dollar-cost reduction goals; initiate a systematic and periodic review of programs and operations from the standpoint of relative priorities; identify roadblocks to cost reduction which may require legislative action or cooperation from other agencies; subject every major proposed expenditure to searching scrutiny in terms of costs and benefits; employ independent means to verify reported savings; Our goal, under the stimulus of this extended program, is to exceed last year's reported cost reduction. The Bureau of the Budget has recently issued a booklet on "War on Waste," which will give the committee an indication of the wide range of the cost reductions achieved. There are sections reporting savings in property and supply management, in automatic data processing, and other areas of interest to the committee. AUTOMATIC DATA-PROCESSING PROGRAM On March 2, 1965, the President approved a Bureau of the Budget report on the management of automatic data processing in the Government. Copies of that report, published as Senate Document 15, 89th Congress, have already been provided to this committee. The report reviews and evaluates our existing policies, regulations, legislation,and practices, and recommends an action program for augmenting our resources and otherwise strengthening the automatic data processing management program. Specific legislative requirements are identified. Prepared with the advice and assistance of a high-level, Government-industry committee, the report highlights a number of accomplishments in automatic data processing management during the past few years. Some of these are of special interest to this committee. For example, a fairly dramatic increase has occurred, since 1963, in purchasing automatic data processing equipment rather than renting. Whereas only 15 percent of our equipment inventory was owned in 1962, 46 percent is owned today. Current estimates indicate that over 50 percent will be owned by the end of fiscal year 1966. The net savings resulting from the purchases made in fiscal years 1963, 1964, and 1965 are expected to be about $200 million within the first 5 years. Automatic data processing equipment sharing exchanges have been established in six regional areas of the country, under General Services Administration leadership. Up to seven more will be established. As a result, sharing of automatic data processing equipment and services within and between agencies is rising consistently, resulting in greater economy in the performance of needed work. Excess and surplus automatic data processing equipment, both owned and rented, is put through special screening processes by the General Services Administration to facilitate continued use in Government whenever practical. Hours of utilization of equipment rise steadily, especially for the medium- and large-scale equipment. As of last year, equipment in the price range of $1.5 million and up was utilized an average of 410 hours per month, which is virtually around-the-clock operation, 5 days a week. For all equipment, the average was 313 hours, up from 285 the previous year. Figures for this year will be available for publication in about 60 days. The automatic data processing management report also points to actions which should be taken by the Bureau of the Budget, General Services Administration, National Bureau of Standards, and Civil Service Commission to provide needed additional policies, guidelines, regulations, and consultative assistance and to undertake expanded research in automatic data processing technology. On March 6, the Bureau of the Budget issued a circular (A-71) defining the responsibilities of these agencies in the administration and management of automatic data processing activities. I have copies available if the committee is interested in them, and a copy of this is in the report, itself, Mr. Chairman. Representative CURTIS. How long a document is it? Mr. STAATS. It is very, very brief. It is a matter of three or four pages, sir. Representative CURTIS. We will include it in the record. Mr. STAATS. Yes, sir. (The Bureau of the Budget subsequently furnished the following material :) SUBJECT: 1. Responsibilities for the administration and management Purpose. This Circular identifies certain responsibilities of executive agencies for the administration and management of automatic data processing (ADP) activities, and is intended to provide for maximum cooperation and coordination between and among the staff and operating agencies of the executive branch. 2. Scope. The ADP equipment affected by this Circular is that equipment identified in paragraph 2 of Bureau of the Budget Circular No. A-54, Policies on the selection and acquisition of automatic data processing (ADP) equipment, October 14, 1961. 3. Responsibilities of the Bureau of the Budget. The Bureau of the Budget will provide overall leadership and coordination of executive branch-wide activities pertaining to the management of automatic data processing equipment and related resources and will develop programs and issue instructions for achieving increased cost effectiveness through improved practices and techniques for the selection, acquisition and utilization of automatic data processing equipment and resources. In this connection, the Bureau of the Budget will: 8. Provide policies and criteria, procedures, regulations, information, technical advice and assistance to executive agencies. b. Evaluate, through the review of agency programs and budgets and through other means, the effectiveness of executive agencies and the executive branch as a whole in managing automatic data processing equipment and resources. C. Foster adequate Federal Government support of programs for developing voluntary commercial standards for automatic data processing equipment and techniques, arrange for the approval and promulgation of voluntary commercial standards when it is in the best interests of the Government to do so, and arrange for the development, approval and promulgation of Federal standards for automatic data processing equipment and techniques on an interim basis, or permanent basis, when voluntary commercial standards are not available or usable. |