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has been in the construction authorization acts for the active Military Establishment for a number of years, including the present bill where it is section :506. Its primary purpose is to avoid the accumulation of unused authorization for projects which are no longer essential due to changed requirements of the Reserve components.

Before concluding my general statement, I should like to acquaint the committee with two particular areas in which we have encountered problems in the general administration of the Reserve programs, mainly as a result of the reorganization of the Army components.

The first relates to one of the amendments to the basic National Defense Facilities Act of 1950 which was contained in Public Law 302 (84th Cong.). The purpose of the amendment as stated to the Congress at that time was to allow the Federal Government to pay 100 percent of the cost of "converting or constructing additions to State-owned armories made necessary by the conversion, redesignation, or reorganization of a unit or units of the National Guard.” The intention indicated by both that language of the stated purpose and the example used to illustrate same during the testimony is interpreted to limit such expenditures to correction of deficiencies generated by a change in the composition or mission of the troop unit occupying the armory. The testimony also indicated that construction of new armories—that is, new capacity for housing of troop units—would remain under the 75–25 cost-sharing formula originally established by the act. It is our policy, in reviewing requests for 100 percent Federal financing arising from the current reorganization of the Army National Guard, to apply the principles referred to above, so as to insure against circumvention of the 75–25 cost-sharing principle established by the original act.

The second problem area, of which we believe the committee should be aware, also arises from the reorganization of the Army National Guard. Historically, our armory construction has been based on the troop unit concept, with space allowances related to authorized strength of an average unit, rather than to the number of personnel actually enrolled in the unit. Under the current reorganization, the authorized strengths of units are based on the total paid-drill strength of the guard, which has resulted in generally lower so-called authorized strengths for the units. Consequently, we have initiated a general review of the space criteria for armories which, incidentally, were last reviewed and revised over 5 years ago, to assure that expenditures of appropriations for armories are related to a reasonable military necessity.

We hope that the committee will not feel that we have taken its time unnecessarily in discussing these two problem areas, since our understanding from the original National Defense Facilities Act of 1950 is that the committee is intensely interested in the policies of the Secretary of Defense under which the program generally is administered.

In closing, I should like to inform the committee that this proposed legislation has been reviewed by the Director of the Budget who states that there is no objection to its submission to the Congress and that it is in accord with the program of the President. The Secretary of Defense recommends its enactment.

Mr. Chairman, I appreciate your patience and courtesy in receiving this rather lengthy statement. I am pleased to meet with you here, and it is my wish, together with the departmental representatives who will also appear before you, to provide this committee with any information it desires in connection with its consideration of this legislation.

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TAB A.-Military family housing requirements and assets as of Dec. 31, 1959

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1 Estimated as of June 30, 1963.

? Includes existing, under contract and authorized but not under contract, excludes approximately 21,000 Navy rental units adequate for junior enlisted men and nonkey civilians.

3 Includes a number of projects which may not be acquired, but excludes 1,665 units lost through conversion in projects already acquired, and 1,965 units at installations where there is no foreseeable military need.

- Includes 1,850 units authorized but not allocated to the military departments for leasing in the United States.

3 Excludes 2,083 units which, for various reasons, including lack of foreign currencies, may not be constructed. 6 Includes 5,000 units presently planned for construction.

All, except public quarters to be rehabilitated, included in military construction authorization program for fiscal year 1961.

TAB B.-Military family housing requirements and assets as of Dec. 31, 1959

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1 Estimated as of June 30, 1963.

2 Includes existing, under contract, and authorized but not under contract; excludes approximately 21,000 Navy rental units adequate for junior enlisted men and nonkey civilians.

3 Includes a number of projects which may not be acquired, but excludes 1,665 units lost through conver sion in projects already acquired, and 1,965 units at installations where there is no foreseeable military need.

4 Includes 1,850 units authorized but not allocated to the military departments for leasing in the United States.

• Excludes 2,083 units which, for various reasons, including lack of foreign currencies, may not be constructed.

6 Includes 5,000 units presently planned for construction.

? All, except public quarters to be rehabilitated, included in military construction authorization program for fiscal year 1961.

ТАВ С (Excerpt from p. 2754, Report No. 42, hearings before the Committee on Armed Services,

House of Representatives, on H.R. 10220 and H.R. 10777]

On page 49, strike all of section 510 and insert in lieu thereof the following: ""Title 10, United States Code, is amended as follows:

Section 2662 is amended to read : " "SECTION 2662. Real property transactions: Reports to the Armed Services Committees.

"'(a) The Secretary of a military department, or his designee, may not enter into any of the following listed transactions by or for the use of that department until after the expiration of 30 days from the date upon which a report of the facts concerning the proposed transaction is submitted to the Committee on Armed Services of the Senate and House of Representatives :

“'(1) An acquisition of fee title to any real property, if the estimated price is more than $100,000.

“(2) A lease of any real property to the United States, if the estimated annual rental is more than $100,000.

'"*(3) A lease of real property owned by the United States, if the estimated annual rental is more than $100,000.

""(4) A transfer of real property owned by the United States to another Federal agency or another military department or to a State, if the estimated value is more than $100,000.

““(5) A report of excess real property owned by the United States to a

disposal agency, if the estimated value is more than $100,000. * 'If a transaction covered by clause (1) or (2) is part of a project, the report must include a summarization of the general plan for that project, including an estimate of the total cost of the lands to be acquired or leases to be made.

".(b) The Secretary of each military department shall report quarterly to the Committees on Armed Services of the Senate and the House of Representatives on transactions described in subsection (a) that involve an estimated value of more than $5,000 but not more than $100,000.

“'(c) This section applies only to real property in the United States and Puerto Rico. It does not apply to real property for river and harbor projects or flood-control projects, or to leases of Government-owned real property for agricultural or grazing purposes.

"'(d) A statement in an instrument of conveyance, including a lease, that the requirements of this section have been met, or that the conveyance is not subject to this section, is conclusive.'

(2) Chapter 159 is amended by deleting the following item in the analysis:

“ “2662. Real property transactions: Agreement with Armed Services Committee; reports.' “and inserting the following item in lieu thereof:

““2662. Real property transactions: Reports to the Armed Services Committees.'

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DEPARTMENT OF DEFENSE
RESERVE FORCES FACILITIES PROGRAM
APPROPRIATIONS vs AUTHORIZATIONS
In Millions of Dollars

LEGEND

Tentative Future
Requirements
(After FY 1961)

Line Item
1/ Includes 13.5 funded prior to FY 1951.

Authorization
ž/ Includes 24.5 funded under P.L. 155 ( 82nd Cong.).

Proposed FY 1961
3/ Includes 38.4 funded prior to FY 1951.
A Future Requirements are estimates by the respective

Authorizations
military departments and are subject to review.

FY 1960 & Prior

42.3

725.4:

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DOD
TOTAL

Nat'l Guard Reserve

ARMY

Nat'l Guard Reserve
AIR FORCE

Chart D
OASD (P&I)
Feb. 1960

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