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CHART 5

WE NEED TO MAINTAIN THE FEDERAL BUILDING
IMPROVEMENT PROGRAM AT ITS CURRENT LEVEL...

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CHART 7

HOUSE CUT GREATLY REDUCES SITE & DESIGN FUNDING ON 23 NEW PROJECTS AND FOREGOES SAVINGS

FROM PURCHASE OPTIONS...

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AN APPROPRIATION OF ONLY $50 MILLION FOR THE FUNDING OF THE 34 SCHEDULED PROJECTS IN FY 1969 SERIOUSLY LIMITS THE DEPARTMENT'S ACTIONS...

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FUND SITE & DESIGN EXPENSES ON 8 REMAINING FY 1968 PROJECTS.

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6,805

6,010

250

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CHART 9

ONLY $4.8 MILLION IS AVAILABLE TO COVER THESE NEEDS

NEED

FUNDING
($000)

PROJECT PLANNING & DEVELOPMENT

PURCHASE OF 2 LEASED BUILDINGS

$ 250

4,992

SITE & DESIGN EXPENSES FOR 21 NEW FY '69 PROJECTS

37,812

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CRITICAL SPACE NEEDS TO BE MET WITH THE NEW FY1969 PROJECTS

A 5.3 million square feet space deficiency between existing and operational requirements

Under 100,000 square feet.

5 Projects

Over 100,000 and under 250,000 square feet.

10 Projects

Over 300,000 square feet

7 Projects

A projected 13.4 billion piece increase in mail volume 20-years after move-in date

Under 350 million pieces

Over 350 and under 1,000 million pieces.

Over 1,500 million pieces.

11 Projects

8 Projects

3 Projects

4 Projects

9 Projects

6 Projects

Replacement of facilities that are between 26 and 83 years old

Under 30 years

Over 30 and under 50 years .

Over 50 years.

18 existing split operations to be replaced by a centralized facility

19 plants are Sectional Centers serving 1,259 Satellite Offices

CHART 11

AN INVESTMENT OF $369 MILLION WILL SAVE $876 MILLION OVER THE LIFE OE THE FACILITIES

Savings obtained through more economical operation by replacement of existing facilities with new postal plants1

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1 Based on a 40-year useful building life for the 22 new FY 1969 Projects

CHART 12

WITHOUT POSTAL PUBLIC BUILDINGS, AN ADDITIONAL $89.4 MILLION WILL BE REQUIRED IN THE RENT ACCOUNT IN FY 1976...

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PREPARED STATEMENT

Mr. O'MARRA. I would like to offer my general statement for the record.

Senator MONRONEY. That will be placed in the record at this point. (The statement follows:)

Mr. Chairman and Members of the Subcommittee of the Committee on Appropriations, I want to express my appreciation for the opportunity to appear before you to discuss the fiscal year 1969 budget request for Building Occupancy, Supplies and Services, Plant and Equipment, and Postal Public Buildings. To facilitate our discussion, I have prepared a series of charts to which I will refer from time to time, with your permission.

(The charts referred to appear on pages 382 through 385.)

We are going to be discussing today the essence of the Postmaster General's Modernization Program. I know that each of you has supported and followed with a great deal of interest the progress that has been made over the past two years toward modernizing our Postal Plant and Equipment. We were greatly encouraged when in remarks at the swearing-in ceremony of Postmaster General Watson President Johnson referred to the Modernization of the Postal Service. He said, quote. "We have already begun a far-reaching program to modernize the Postal Service. This work is expensive. But I think we must not let the Postal Service deteriorate. The price of a poor Postal Service is far greater than the cost of remodeling the Service into the smooth-running system it must be.

"I hope the new Postmaster General can lead this modernization program with the approval of the Congress and the cooperation of the Congress and make sure that the American taxpayer gets 100 cents worth of value for every dollar we spend," Unquote.

The elements of the Postal Modernization Program are shown on this first chart. (See attached Chart 1.) It consists of modernization of space, mechanization of mail handling systems, motorization of carrier routes and automation of data processing. This program is funded through the Bureau of Facilities appropriations you are considering today. Although the modernization of space through construction of federally owned facilities, lease of specially constructed facilities, and improvement of federal buildings gets a good deal of publicity, these other elements-mechanization, motorization, and automation of data processing are important parts of the overall program.

The modernization program is far reaching and expensive requiring an investment of over two billion dollars for the five-year period starting with fiscal year 1968. This chart (see attached Chart 2) shows the extent of our plans for modernization and provides a background against which our fiscal year 1969 request can be evaluated. To meet the critical space needs, we plan 138 major facility projects which will provide 41.7 million square feet of new space. We expect to acquire some 1900 fixed mechanized systems and items of non-fixed mechanization, over 130 thousand vehicles and significantly expand our data processing capability.

Accomplishment of this program is contingent upon adequate funding of the four separate appropriations shown here. (See attached Chart 3.) These four appropriations are inter-related and dependent upon one another. For example, construction of a new federally owned building requires specific funds in the Postal Public Buildings appropriation. Funds to procure mechanized equipment for the same building will be included in our Plant and Equipment appropriation. A similar situation occurs in the Building Occupancy appropriation where we provide the rent for a leased facility which is equipped through funds in the Plant and Equipment appropriation. The Supplies and Services appropriation funds those day to day items used up in putting our investments to work in handling the mail.

Turning now to the specific amounts of our requests, this chart (see attached Chart 4) shows the amounts requested from Congress for each of the four appropriations for fiscal year 1969. Examining our expense appropriations first, we requested from Congress $216 million in Building Occupancy and $110.781 million in Supplies and Services. Although we will examine each of these requests in more detail later, I should point out that the funds in these two appropriations cover prior year contractual obligations and materials used in daily operations. We, therefore, need these funds in order to operate the Postal Service and have little flexibility to absorb any large cuts in them.

In the investment appropriations, we requested $225 million for Plant and Equipment and $88.252 million for Postal Public Buildings. These investments

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