reduced from their original total of $1,513 million to an approved total of $982 million. Then, the Bureau of the Budget conducted a still further review, during which the program was reduced to $972,053,000, the amount now before your comImittee in S. 3006. The division of this $972 million amount between the three military departments is $158 million for the Army; $138 million for the Navy, and $676 million for the Air Force. We feel that this is the minimum needed to support satisfactorily the missions assigned to our military forces. I am confident, Mr. Chairman, that in making these reductions in the original program requests, many prudent economies have been achieved, without causing any impairment to our defense capabilities. Great care has been exercised in this respect, and the final decisions reached on the program content reflect the combined judgment of the numerous offices within the Department of Defense and the military departments which participate in this review. Summary of the bill.-In order to present to the committee in brief form the major construction activities for the Active Forces which are proposed by this legislation, a summary of the most important projects in titles I, II, and III is given, showing the amount and percentage of authorization devoted to each. A further analysis is also provided showing a summation of the various categories of facilities for which authorization is requested in each of these three titles. During the past several weeks which have elapsed since this bill was first introduced, revisions in some projects have become necessary due to more advanced design studies, and other refinements in planning. Also, certain project deletions and substitutions have become necessary. These changes amount to only a relatively small total, and we would like your permission to present their details to the committee during the testimony on the line items by the departmental witnesses. Each of these changes has already been cleared and approved by the Bureau of the Budget. Summary of program objectives contained in title I (Army) For research, development, and test facilities in the continental United States and in oversea areas, including $14,300,000 for facilities in support of the NIKE-ZEUS program. For NIKE-HERCULES, HAWK, and MISSILE MASTER facilities in continental United States and oversea areas. For facilities to support new weapons developments, new research and development activities, and new mission requirements. For troop housing in the continental United States and in oversea areas, to provide 3,225 barrack spaces, 657 bachelor officer spaces, and related dining facilities. For utilities projects at major installations throughout the United States and in Oversea areas. For equipment maintenance and storage facilities at major installations through- For hospital and medical facilities, including $4,900,000 for a 300-bed hospital at For communications facilities at major installations throughout the United For facilities to support Army training activities, including $3,300,000 for a train- For airfield and heliport facilities at major installations throughout the United For community, welfare, and morale facilities, including chapels, post exchanges, For construction in support of other essential programs including post engineer Total... Analysis of title I (Army) by category type of facilities to be provided Summary of program objectives contained in title II (Navy) For facilities needed to support Fleet Command and worldwide communications activities at 7 continental and 9 oversea installations. For troop housing in the continental United States and oversea areas; to provide 2,975 barracks spaces; 986 cadets quarters; 252 bachelor officers spaces; and related dining facilities.. For facilities to support new weapons developments, new research and development activities, and new mission requirements. For facilities necessary to support the aircraft and ships of the carrier striking forces. For facilities for maintenance and overhaul of POLARIS and nuclear submarines For construction in support of research and development activities. For 200 appropriated fund family housing units in Okinawa; 100 surplus commod- Total.. Analysis of title II (Navy) by category type of facilities to be provided Summary of program objectives contained in title III (Air Force) For construction of necessary facilities in support of ballistic missiles. For facilities required in support of AC & W and DEW line stations, and 41 For construction of SAGE centers and for other support facilities for the con- For operational facilities in support of the BOMARC missile at locations in the For necessary facilities in support of fighter-interceptor squadrons at various For community, welfare, and morale facilities in the United States and in oversea areas, including service clubs, chapels, post exchanges, recreational facilities, and other community support facilities including dependent schools in Germany, Japan, Okinawa, Canada, Crete, and Turkey. For facilities to support new weapons developments, new research and development activities, and new mission requirements. For necessary facilities in support of the MACE missile at various operational locations overseas For research, development, test, and evaluation facilities For troop housing, in the continental United States and oversea areas, to provide For 688 family housing units at oversea locations, 288 of which will be surplus For facilities at Air Materiel Command depots in the United States.. For hospital and medical facilities, including $2,006,000 for a 50-bed hospital at For facilities in support of Air Force security activities worldwide. For facilities required to support Military Air Transport Service missions worldwide. For facilities required to support Tactical Air Command manned aircraft missions worldwide. For land acquisition to provide for runway extensions and overruns; new radar gap filler sites; SAGE facilities; and a new hospital at Dow Air Force Base, Maine. For construction in support of other essential programs, including utilities improvement and modernization, runway lighting systems, fire stations, and other related items. Total. Analysis of title III (Air Force) by category-Type of facilities to be provided Summary of military construction authorizations. In order that the com'mittee may review the status of all military construction authorization through fiscal years 1948 to date, the following summary is provided (all figures are in millions of dollars): This tabulation illustrates that the amount of residual authorization available to the three military Departments is still being further reduced by the annual rescission of lower priority unfunded projects, as provided under section 506 of this bill. This reduction will amount to approximately $235 million for fiscal year 1960, with an additional $406 million reduction expected by the end of fiscal year 1961. The balance of residual authorization then left available will consist of relatively small amounts compared to the large balances which were on hand several years ago. This places our construction program on a much more current basis, and should permit a greater share of our annual appropriations to be applied to essential new authorization. Relationship between the fiscal year 1961 authorization and funding programs. In conformity with this objective of placing the construction program on a more current basis, all of the new authorization requested in this bill, with the exception of the contingency authorization contained in sections 103, 203, and 303, and a small amount of other projects, is scheduled for inclusion in the fiscal year 1961 funding programs of the three military Departments. The small amount of other projects not scheduled for inclusion in the funding programs consists of essential, well-screened items that should definitely be accomplished in fiscal year 1961, but which cannot be immediately started due to unfinished site surveys, special design work that must be completed, or other reasons. It is nearly always possible to fund these projects later in the fiscal year, as replacements for other projects initially included in the funding programs, but upon which work cannot be started, due to unforeseen construction problems, or program changes. Such flexibility of this sort is normal in a worldwide construction program of this scope and complexity, and the availability of authorization for these unfunded projects assures that work can continue without interruption or loss of time during the best working seasons. Contingency auhorization.-I should like to speak briefly concerning the contingency authorization contained in sections 103, 203, and 303. This authoriaztion amounts to only about 5 percent of the total requested for the three Departments, and its availability during the past years has been most helpful on numerous occasions when certain urgent, unpredicted work became necessary, which could not have been accomplished unless this special authority had been available. Examples of such work are special operational facilities constructed at military installations in the Mediterranean area during the Lebanon crisis; similar emergency work which was accomplished in the Eastern Pacific area in support of our forces in the Formosa area; special missile test structures for which an immediate need became necessary; replacement of several SAC runways which failed unexpectedly during the season; and various other unforeseen projects for which an immediate requirement was mandatory. In the present advanced state of weapons development, when new techniques, scientific breakthroughs, and other changes are occurring almost day to day, it is impossible to predict each specific, individual line-item project which will be needed for the next 12 months. For this reason, we feel that the $172 million of this special authorization which is being sought for each of the three Departments is a very reasonable contingency item for a program which involves construction of the worldwide scope and complexity that is required to support our present Armed Forces activities throughout the United States and in foreign countries. As you know, Mr. Chairman, the unused portions of this emergency authorization expire on September 30 of each year following its enactment, thus preventing the accumulation of unused balances. In this way it serves as a true emergency contingency, available for use if needed, but automatically rescinded if it is unused. It is always our hope that we never have to use any of this special authorization and that our planning for future requirements can be sufficiently accurate to foresee each and every line item that will be needed during the next year ahead. All of the foregoing portion of this statement relates to the authorization in S. 3006 which is for the active forces in titles I through V. Similar details covering the authorization for the reserve forces in title VI are presented, starting on page 36 of this statement. Construction and planning activities.-Efforts are being continued to perform our construction by means of formally advertised contracts. Except under unusual circumstances, all contracts are being awarded on a competitive basis to the lowest responsible bidder, and during fiscal year 1959, 92 percent of all work placed under contract was handled in this manner. Every effort will be made to continue our practice of advertising for bids on the open market. Reports on this important aspect of our contracting activity will continue to be made to this committee semiannually, as specified by section 505 of this bill, and by similar provisions in previous legislation. Placement of contracts by negotiation will be utilized only where such procurement is in the interest of national defense. Continued progress has been made in the establishment of economical and uniform quality for military construction. This has been accomplished by the issuance of Department of Defense instructions which prescribe standards and criteria for most of the principal repetitive-type facilities common to the three military departments. These instructions, while establishing quality standards and space criteria, provide a measure of flexibility for the varying requirements of the services. Very creditable economies are also being attained within all the Departments by more repetitive use of previously proven designs, which reduces engineering costs, and greatly aids in eliminating change orders. There is always room for improvement in this field, and we shall certainly continue our efforts in order that additional savings may be achieved. Special attention has been directed toward the design of hospitals so as to attain all practicable cost reductions, yet provide an efficient and useful structure. I am confident that added economies will result from this action. In addition to this, a procedure has been established whereby careful consideration by a technically qualified staff is given to existing hospital capacity, both civil and Government, in the area of a proposed new military hospital, prior to approving such projects. Real estate. Maximum utilization of existing military facilities and prompt identification and declaration as excess of real property holdings for which no military requirement exists are fundamental to attaining maximum economy in providing essential installation support to the military departments for the performance of their assigned missions. Efficient utilization of existing facilities frequently obviates and invariably reduces the cost of new construction. Prompt disposal of excess property not only eliminates the cost of operating and maintaining such facilities but will, in most cases, insure the return of the same to the economy and to the tax rolls of the local governments as well as a monetary return to the Treasury. In implementation of the foregoing principle of sound real property management, my office conducts a continuous review of all military real property holdings. The effectiveness of such review involves close liaison and coordination with the three military departments in order to assure that the essential mili |