costs of the center, with particular emphasis on moving other activities in the Chicago area into the buildings. These studies did not accomplish their purpose because of the following factors: (a) Lack of requirement for storage space. (b) High cost of converting storage space for other purposes, and remaining undesirability for other purposes after conversion. (c) Lack of parking space for civilian employees and poor public transit facilities. 5. Relocation plan: As a result of the continued high cost of operating the Chicago Administration Center and because of its basic unsuitability for the missions being accomplished thereat, it was concluded that the feasibility of relocating the missions and disposing of the facility should be investigated. In order to realize maximum economic benefits and enhance efficiency of operation, relocation should consolidate missions with associated Army activities wherever possible. Major economies should be realized by eliminating the need for separate overhead and support facilities, consolidating like activities and providing properly designed space for the various missions. Details of the Army plan for developing these major economies are shown on enclosure 2, inactivation of Chicago Administration Center, data sheet. Significant factors are as follows: (a) Station overhead: Space requirement of 499,000 square feet and 261 employees are eliminated. (b) Food and Container Institute: The relocation of this mission presents the greatest problem in realizing the potential economies. For this reason there is a tendency to analyze it as a separate problem, however, such separate analysis would fail to take into consideration the major economies to be gained by eliminating the Chicago Administration Center as a separate entity. (1) First consideration was given to relocating the Institute in the Chicago area. Thirteen Government-owned buildings, having sufficient space were considered, however, either no space is known to be available in these facilities or it was of such type as not to be economically convertible or utilized. The construction of a new facility for this mission would fail to realize the economies to be derived by elimination of overhead and separate facility support and by consolidation with like activities. A detailed study of the feasibility of using the Scioto Laboratory at Marion, Ohio, was made, however, this again would fail to realize the above economies, and costs of obtaining the facility and making the necessary modifications were higher than the proposed plan. (2) The consolidation of the Food and Container Institute with the Quartermaster Research and Engineering Center will eliminate the present need for some of the administrative, supervisory, and technical staff elements now located with the Food and Container Institute-a net reduction of 32 personnel. (3) Use of existing facilities at Natick, such as the pioneering and environmental research facilities, by the Food and Container Institute and efficiently designed space will reduce Food and Container Institute space requirement from the current 188,640 square feet to 121,235 square feet of new or modified facilities at Natick. (4) Elimination of communications and liaison requirements between the parent organization at Natick and the Food and Container Institute in Chicago will offset increased communications and liaison requirements with the Army Subsistence Center, the Military Subsistence Supply Agency and industry and educational institute contracts in the Chicago area. (5) Construction at Natick can provide for additional needed facilities, primarily an animal laboratory which cannot be feasibly located at the Chicago Administration Center, at minimum costs. (6) The Illinois Institute of Technology has offered to provide a facility on their campus for approximately $6 million and furnish support at cost. As indicated by the comparative new construction costs, $6 million against $3,628,000 total at Natick-such a facility does not allow for the basic economies that can be achieved by consolidating at Natick. It is concluded that the operational advantages of colocating the Food and Container Institute with the Parent Research and Engineering Center outweigh the advantages of retaining the institute in the Chicago area, and that no other relocation plan can realize the major economic benefits derived from eliminating separate overhead and support costs and consolidation of like activities. (c) Of the 13 other Quartermaster activities located at the Chicago Administration Center, which occupied 153,260 square feet, two which occupied 110,000 square feet have already been eliminated by transfer and discontinuance. Ten of the eleven remaining activities can be economically relocated in 18,000 square feet of suitable rental space in the Chicago area. The last activity, the Military Subsistence Testing Laboratory will require approximately 10,000 square feet of space. It is tentatively planned to modify space at the Columbus General Depot for this mission. (d) By consolidation of the 12 5th Army activities with like activities in Government-owned property under control of 5th Army, and by rental of suitable administrative space, the space requirement of these activities can be consolidated from the 176,800 square feet now occupied to 82,460 square feet. The consolidation will further reduce personnel requirements by 10. (e) The activities of the Surgeon General, Ordnance Corps and Corps of Engineers, occupying 54,000 square feet, can be consolidated into 35,000 square feet of suitable rental space in the Chicago area. 6. Details of the new construction cost at Natick are contained on pages 53 through 63, book 1, military construction program, item justification data, fiscal year 1961 authorization. This construction and the requirement to modify space for the Military Subsistence Testing Laboratory ($140,000) are the only construction requirements needed to effect the necessary relocations. Space, personnel, and operating cost data are shown on enclosure 2. 7. Other Government agencies using space at the Chicago Administration Center are the Department of Navy for a minor transshipment activity, the Post Office Department for a supply center and mailbag depository and the Departments of Agriculture, Labor, and Treasury. Of these, the Post Office Department, which occupies 545,287 square feet on license and employs 60 personnel, is the major tenant. It is the Army's intent to declare the three buildings excess to its requirements in 1963 or 1964. At that time, the General Services Administration should make a determination as to whether it is in the best interests of the Government to relocate these non-Army tenants and sell the facility (current appraisal value $4,870,000) or to utilize the facility for storage and/or other requirements the Administrator of General Services Administration might have. In any event, the intrinsic value of the buildings should more than cover any possible increased costs due to relocation of non-Army users. 8. The Army concludes that the Chicago Administration Center is uneconomical to continue in operation; that the Food and Container Institute should be relocated to the Quartermaster Research and Development Command, Natick, Mass.; and that the remaining activities should be relocated with like activities in the Chicago area to the extent possible. FEBRUARY 26, 1960. ACTIVITIES AT CHICAGO ADMINISTRATION CENTER 1. Cemetery Division. I. QUARTERMASTER 2. Department of Defense commercial warehouse and household goods field office. 3. Laundry adviser. 4. Quartermaster field maintenance shop. 5. Property Disposal Branch. 6. Quartermaster Food and Container Institute. 7. U.S. Army Subsistence Center. 8. Chicago Military Clothing and Textile Inspection Office. 9. Chicago Quartermaster Quality Control Office. 10. Quartermaster Inspector General field office. 11. Military Subsistence Testing Laboratory. 12. Coffee Branch. 13. Ration Assembly plant (has been discontinued). 14. Quartermaster Subsistence School (has been moved). II. FIFTH ARMY 1. Finance and Accounting Office. 2. Accounting Division, Finance and Accounting Section. 3. Statistics and Accounting Division, Adjutant General Section. 4. Publications stockroom, Printing Control Branch, Adjutant General Section. 5. Records Administration Branch, Administrative Service Division, Adjutant General Section. 6. Regional Industrial Security Office, G-2 Section. 7. Post Supply Office, U.S. Army Support Center. 8. Silk screen shop, 5th U.S. Army Recruiting District. 9. Chicago Training Center supply point, USA Military District. 10. Provost Marshal, U.S. Army. 11. Zone 11, U.S. Army Veterinary Food Inspection Service. 12. Engineer Section, storage. III. OTHER DEPARTMENT OF DEFENSE ACTIVITIES 1. U.S. Army Medical Service Meat and Dairy Hygiene School. 2. Chicago District Corps of Engineers. Estimated annual savings in station support costs ($1,820–$721) Estimated reduction in mission costs of the Food and Container Institute after consolidation of $1,099,000 198,000 Estimated total annual savings. A 1,297,000 One-time costs: (a) Relocation of personnel and property.. 687,000 (b) Replacement new construction costs for Food and Container Institute (exclusive of $314,000 proposed to provide added facilities). (e) Modification costs for relocated activities. 3, 314,000 140,000 B 4, 141, 000 3.2 Total.... Estimate amortization time B/A (years).. 1 Data as of fiscal year 1959. 2 New construction at Natick. 3 Included in $525,000 Quartermaster station overhead. Approximately 350 to be relocated in Chicago area. Includes 118,360 square feet rental and 148,335 square feet Government. Senator STENNIS. What is the next item, please? RICHMOND QUARTERMASTER DEPOT, VA. General SEEMAN. The next is the Richmond Quartermaster Depot on page 64. Originally we had requested two items here. However, one has been struck in accordance with our letter to Chairman Russell on the 30th of March. There remains one item for the conversion of warehouse 32 to administrative space for $478,000. During the time we were preparing our program, Mr. Chairman, the Quartermaster was assigned a responsibility by the Assistant Secretary of Defense for single manager of general supply. They studied their organization and selected the Richmond Quartermaster Depot as the most feasible place to do that. This item is required to provide facilities for the approximately 800 of the overall 1,200 personnel of the Executive Director of the Military General Supply Agency which was established at Richmond Quartermaster Depot, effective January 1, 1960, by General Order 45, December 28, 1959. This installation was selected as the most favorable location among those available. Current requirements will be provided through the use of limited existing facilities and a minor new construction project which will provide for the most urgently required facilities. Present administrative facilities are utilized to capacity and additional facilities are essential to provide for personnel to staff the Executive Director's Office, procurement inspection and quality control, cataloging and standardization and simplification function. Senator STENNIS. All right, you want to convert a warehouse over to administrative? General SEEMAN. To administrative space, sir. SHARPE GENERAL DEPOT, CALIF. General SEEMAN. The next installation is Sharpe General Depot, Calif. The mission of this depot is receipt, storage, and distribution of quartermaster, engineer, medical, and transportation supplies and equipment. Distribution is within the 6th U.S. Army area and to Pacific and oversea areas. Only one line item is requested for an aircraft paint shop for $218,000. This item is required for painting of aircraft and their larger components. The work is a part of the fourth echelon aircraft field maintenance activity (repair and modification of assemblies, components, and end items for return to using organizations, or to maintenance float stock), which is a permanent mission of Sharpe General Depot with respect to all Active Army, National Guard, and U.S. Army Reserve aircraft in the 6th Army Area. A total of 385 aircraft of all types (observation, utility, command, training, and cargo, both fixed wing and helicopter) now depend upon this depot for fourth echelon field maintenance support. One hundred and sixty-four of these aircraft are based upon a 6th Army third echelon maintenance activity located at Fort Lewis, Wash., for minor repairs. A portion of the fourth echelon maintenance responsibility for the aircraft at Fort Lewis is discharged by Sharpe General Depot by means of an 11-man team stationed at Fort Lewis. The scope of fourth echelon maintenance at Fort Lewis is limited by the capabilities of available resources and does not include complete painting. When the proposed paint shop is available, these aircraft will be evacuated to Sharpe General Depot for painting. The Sharpe General Depot aircraft maintenance activity is temporarily located in facilities at the Stockton Municipal Airport which are leased to the Army. These facilities, which do not include an aircraft paint shop, will be vacated when Government-owned airstrip, hangar, and repair shop facilities (now under construction and scheduled for completion in 1960) are available on the Lathrop Reservation of Sharpe General Depot. If the proposed paint shop is constructed, and aircraft can be painted while at the depot for repairs and/or modification, the annual saving on painting (an average of 63 aircraft per year) is estimated at $40,000. The average unit cost for contract painting (including $281 for transportation) is $1,349. Estimated unit cost for painting in the proposed paint shop (labor, material, operation and maintenance of facility) is $7713. High aircraft transportation cost is due to dispersed locations of commercial facilities in the area, requiring travel up to 400 miles. It is an item very similar to what was mentioned at Atlanta General Depot, to improve our capability in the repair and maintenance of aircraft. This small aircraft paint shop will amortize itself according to our estimated savings in about 5 years. They are now using facilities that require breaking down their assembly line and moving the aircraft various places, and they get into transfer costs. Senator STENNIS. You mean the actual painting of the aircraft itself? General SEEMAN. Yes, Sharpe General Depot has a fourth echelon maintenance responsibility. CHEMICAL CORPS ARMY CHEMICAL CENTER, MD. We will now take up the Army Chemical Corps installations. The first of these is Army Chemical Center, Md. The basic mission of the center is research and development in the fields of chemical and radiological warfare, radiological defense, the conduct of medical research, and manufacture of chemical warfare material and protective devices. There are two line items being requested with a total of $843,000. The first line item is for a post signal building in the amount of $430,000. Army Chemical Center is not the normal class II installation; signal services must be furnished not only to all normal post activities, but to the Chemical Corps Materiel Command and Chemical Corps Engineering Command, both operating at staff elements of the Chemical Corps, and several non-Chemical Corps activities, including NIKE groups. Existing communications facilities occupy 12,681 square feet in four widely separated buildings built in 1918 two of which are 1.5 miles from Signal Center. Humidity control and air conditioning essential to efficient operation of signal equipment cannot be maintained in these buildings. Present plant capacity is 2,000 circuits; equipment is being operated at 92 percent of capacity (88 percent is considered critical by Signal Corps). Seventy-five requests for service cannot be filled; 200 more circuits are required to relieve overload |