fice of Federal Elections which I shall discuss later in the statement. The 5,007 man-years is:

One and seven-tenths percent more than the 4,921 man-years requested for fiscal year 1972.

Incidentally, 5,007 is only 86 more than we requested of the Congress for the current year;

Two and six-tenths percent more than the 4,879 man-years allowed in fiscal year 1972 appropriation;

Five percent more than the 4,768 man-years now planned for fiscal year 1972, after voluntary reduction of 111.

Our divisions and offices submitted 1973 work plans which called for 5,301 man-years, compared to the 5,007 we have in the request.

As outlined in the remainder of my statement, our requested increase in staff is needed to enhance our ability to support congressional requirements and to improve our capability to conduct program reviews and cost-benefit analyses.

IMPACT OF RECENT LEGISLATIVE AND OTHER CONGRESSIONAL ACTIONS ON GAO PROGRAMS

First, I would like to highlight for you the impact of recent legislative and other congressional actions on our work programs and our need for additional staff resources.

As I indicated in my statement last year, numerous legislative and other congressional actions—including general legislation, legislation requiring GAO to make specific studies and reviews, and legislation creating new Federal programs or increasing Federal program levelshave a marked continuing effect on GAO work.

LEGISLATIVE REORGANIZATION ACT OF 1970

The impact of the Legislative Reorganization Act of 1970, for example, will continue and, we believe, increase considerably in the foreseeable future. Such prior legislative actions must continue to receive attention in our program and resource planning along with the more recent legislation and also with that which seems to be on the horizon. My emphasis today, however, will be on recently passed and pending legislation.

There have been a number of significant legislative actions occurring since January 1, 1971, that have materially added to our workload. For example:

EMERGENCY LOAN GUARANTEE ACT: LOCKHEED C-5A AUDIT

The Emergency Loan Guarantee Act requires GAO to make a detailed audit of the books and records of borrowers applying for loan guarantees under this act. We have been auditing Lockheed Aircraft Corp. since last fall in this regard and also in compliance with laws requiring audit of payments for the C-5A aircraft procurements.

Senator HOLLINGS. How many people would you put on the Lockheed job, the C-5A? Don't give me the man-years. Does it take 5 or 6 months or 5 or 6 years?

Mr. GUTMANN. Mr. Chairman, at the C-5A plant in Georgia in have had approximately 10 men for the past year and a half. These

men are performing under the requirement for quarterly audit reports. They are also doing work on the reasonableness of costs incurred. For example, recently we did a study measuring the productivity of labor on the assembly lines, using industrial engineering techniques.

In addition to that, we have, in connection with the guaranteed loan, about three men working at corporate headquarters in California. Senator HOLLINGS. How long has this been going on?

Mr. GUTMANN. The three men in California, of course, recently started with the passage of the Guaranteed Loan Act. The work at the assembly plant has been going on for about 18 months. Not all 10 men have been there throughout that time. It has fluctuated.

QUARTERLY REPORTS TO CONGRESS: WORK FORCE INEFFICIENCY

Senator HOLLINGS. Have you found anything worth reporting to the Congress?

Mr. GUTMANN. Yes, sir; we think we have. For example, in the Annual Report on Major Acquisitions, we make a staff study for each of about 74 weapons systems and the C-5A is one of those included in that report. We have issued three reports to the Congress in compliance with the requirement that we report quarterly.

We reported at the end of June, again at the end of September and again at the end of December. In the December report we describe our work on their productivity. Incidentally, it is interesting there, I believe, that Lockheed was in complete agreement with what we found with respect to the potential present on the assembly line for increasing the efficiency of their work force.

Loss oF TIME

Senator HOLLINGS. And to what extent? How would you describe the increase in efficiency?

Mr. GUTMANN. What we did was we made 15,000 different observations of the men at work. There were about 400 men in this particular section of the assembly area. We then characterized our observations as between (1) actually working with tools on metal; that is, the actual productive time, (2) work that was related to their task but may have been studying blueprints or consulting with engineers, things of this nature, (3) personal time lost for lunch, coffee breaks, and so forth, (4) idle time that was unaccounted for, and, in some cases, men were simply absent from their work station without any excuse.

The cost attributed to this lost time for the period that we examined was about $64,000. We have felt and we believe that the sample that we took is statistically supportable, and Lockheed has agreed that

it is.

MANAGEMENT IMPROVEMENT

They have undertaken more intensive management action of their own to increase the time that a man is actually working with tools and decrease the time that it is taking him to go, for example, to the parts bin to get parts, or to get tools.

They may have to relocate the tools, the parts storage area, so that the men are not walking back and forth quite as much.

TESTIMONY OF MR. DURHAM

Senator HOLLINGS. Be specific. There was some witness, and it came out in debate on the Senate floor, relative to putting in unsafe parts, missing parts, or parts scattered around, a lot of waste. Did you find any substance to that?

Mr. GUTMANN. Yes, sir. As you recall, this was Mr. Durham's testimony. We have been working with him, with all the data he has available. We have been making examinations of those areas which he has identified for us. While we are not quite ready to make a final report on our findings, we are generally in agreement with his statements as to the potential improvements that Lockheed can make.

PRIOR RECOMMENDATION THAT DOD SHOULD SUPERVISE WORK

Senator COTTON. How many extra people will Lockheed have to put on in a supervisory capacity in order to inaugurate these procedures, to plug up these holes?

Mr. GUTMANN. Well, sir; we did not calculate that. Some actions will not require any more supervisory people, where there is a possibility of physically rearranging the layout of the plant. No more supervision would be necessary there.

Mr. STAATS. Mr. Chairman, I might explain why we went into that. We had recommended to the Department of Defense in a report we did for Congress a year or so ago on Lockheed's operation that the Department should work more closely with Lockheed to reduce their costs and to speed up their deliveries.

We haven't been satisfied that enough has been done in that respect, so what we have attempted to do here is to demonstrate that you could make savings and you could speed up deliveries if you had the right kind of a management team from the Defense Department working with Lockheed on this program. That is what we were really trying to get at, to demonstrate the validity of our recommendation. We think we have.

Senator HOLLINGS. Thank you.

FEDERAL ELECTION CAMPAIGN ACT

Mr. STAATS. The next item refers to the Federal Election Campaign Act, which we referred to.

The Federal election campaign requires GAO with regard to presidential candidates to prescribe rules, regulations, reports, and accounting systems; arrange for publication of reports received; make compilations of data based on reports received; contract for independent studies of administration of elections; and make audits and investigations.

PRESIDENTIAL ELECTION CAMPAIGN FUND ACT

The Presidential Election Campaign Fund Act requires GAO to certify payments to which candidates for President and Vice President are entitled from the special fund established and, after each presidential election, to audit and report to the Congress on the campaign expenses incurred and any repayments required.

74-760 O 722

COMPREHENSIVE HEALTH MANPOWER TRAINING ACT

The Comprehensive Health Manpower Training Act requires that GAO conduct a major study of health facilities construction costs with the prime objective of identifying new approaches and construction techniques which will substantially reduce health facility construction costs.

PUBLIC LAW 92-12: RURAL TELEPHONE BANK

Public Law 92-12 which established the Rural Telephone Bank provides for GAO audit and reporting to the Congress in accordance with the provisions of the Government Corporation Control Act.

EMERGENCY EMPLOYMENT ACT OF 1971

The Emergency Employment Act of 1971 created a new major Federal program subject to GAO audit and review; the act provides $2.25 billion for public employment programs during 1972 and 1973. Senator HOLLINGS. How much has been spent of the $24 billion? Mr. STAATS. I couldn't answer that offhand. I will have to get you that information.

Mr. SAMUELSON. For fiscal year 1972 $1 billion was appropriated and the balance of the authorization for appropriation in fiscal year 1973 is $1.25 billion.

Senator HOLLINGS. Do you know how much has been expended up to now?

Mr. STAATS. We will supply that for the record. (The information follows:)

As of February 18, 1972, the records of the Department of Labor show obligations of $882.1 million. The nationwide nature of this operation does not permit an up-to-date compilation of the expenditures.

OCCUPATIONAL SAFETY AND HEALTH ACT

The Occupational Safety and Health Act, effective April 1971, greatly expanded the Department of Labor's activities subject to GAO audit and review; about 57 million workers and 4.1 million business establishments are covered under the act.

1972 MILITARY CONSTRUCTION APPROPRIATION CONFERENCE REPORT

House Conference Report 92-664 on military construction appropriations for fiscal year 1972 recommended that GAO conduct a review of the efficiency of construction management and the equitableness of charges by construction agencies for supervision, inspection, and overhead, including comparisons with industry experience.

1972 HOUSE COMMITTEE ON APPROPRIATIONS REPORT

House Committee on Appropriations Report 92-666 provides for GAO to make a review of the specifications and the engineering study for the Army's Tactical Operations System-an automatic data processing system for providing military commanders strategic operations information which is estimated to cost about $192 million.

ANTICIPATED WORK INCREASE RESULTING FROM PENDING LEGISLATION

I will now turn to pending legislation which, if enacted, will increase our workload in 1973.

REVENUE SHARING BILL

The first is the Revenue Sharing bill, which assigns to the GAO extensive guidance, review, and audit functions relating to local government expenditure plans and accounting for payments received to insure that expenditures comply fully with the requirements of title I. That is known as the Mills bill on Revenue Sharing.

Title I provides for payments to local governments from a trust fund created out of receipts from Federal individual income tax collections (Intergovernmental Fiscal Coordination Act of 1971).

H.R. 30: DEVELOPMENT OF STANDARDS OF AUDITING

H.R. 30 (January 22, 1971) provides for the GAO, in cooperation. with the executive branch, to develop and issue standards of auditing for the guidance of Federal agencies, State and local governments, and independent public accountants engaged in the audit of Federal assistance programs and to review the implementation of the standards and the Federal agency use made of the audits performed (Intergovernmental Cooperation Act of 1971).

H.R. 7248: REVIEW, AUDIT, AND EVALUATION OF FEDERAL EDUCATIONAL PROGRAMS H.R. 7248 (April 6, 1971) requires GAO to review, audit, and evaluate any Federal education program upon request of responsible congressional committees or committee members, especially with regard to agencies' practices for contracting for studies and services, and also creates new education programs subject to GAO audit. (The House Committee on Education and Labor report stated that the additional workload would require a $1-million increase in the GAO annual appropriation.

Senator COTTON. What do you mean by responsible congressional committees ?

Mr. STAATS. Well, that is a word from the draft bill, but it means the cognizant committees, the House Education and Labor and the Senate Labor and Welfare Committee.

H.R. 1369: REPORTS TO CONGRESS ON CONTRACTS

H.R. 1369 (January 22, 1971) provides for GAO to make annual reports to the Congress on contracts for $10,000 or more in which the price increased 10 percent or more over the estimate or which were completed more than 6 months after the estimated completion date. H.R. 10429: ANNUAL COMPILATIONS OF REPROGRAMINGS OF APPROPRIATED FUNDS

H.R. 10429 (August 5, 1971) requires GAO to gather and compile annually for the Members of Congress information with respect to the reprograming of appropriated funds for purposes other than those originally intended.