SUMMARY JUSTIFICATION DATA Mr. MAHON. We will insert the prepared justifications at this point. (1) Repair of ships.-An increase of $204,744,000 is required to provide for the costs of direct labor or Navy stock account material (material of common usage) necessary in order to activate ships as directed by the Chief of Naval Operations and to cover the costs of procurement of repair parts and components which are necessary in activating these vessels and maintaining them in service after they have joined the fleet. (2) Alterations and material improvements program.-An increase of $44,000,000 is required to cover expenses incident to the accomplishment of certain critical and high-priority alterations and material improvement program items in vessels of the current active fleet, as well as those which are being activated. (3) Supplies and equipage.—An increase of $9,000,000 is required to provide for the cost of consumable supplies which are used by the military personnel aboard ship for day-to-day maintenance and repair. This $9,000,000 covers the cost of consumable supplies for those vessels being activated and also provides for a higher rate of consumption on those vessels engaged in the Korean operation. The above total of $257,744,000 for budget activity 1 may be restated in a different way-one which is not tied in with budget subactivities but may be more descriptive of the type of operation to be performed at this particular time: Activation costs.-Fifty-six million, three hundred and twenty thousand dollars of the requested increase is to provide for the activation expenses of the vessels which have been directed for activation by the Chief of Naval Operations. Such expenses are made up primarily of costs incident to the removal of the vessels from "moth balls," repairs which are found necessary in order to make the vessel fully ready for sea, the cost of components and repair parts which are used in the accomplishment of activation work and the final outfitting of the ship with full allowances of on-board components and repair parts. Alterations and material improvement items. An increase of $44,000,000 is requested to cover the installation costs (labor and Navy stock account material) and costs of general components which are required for the accomplishment of high-priority alterations and material improvement program items necessary to improve the fighting characteristics of the fleet. Maintenance and operation of activated vessels and increased consumption rates for ships in the Korean operation.-Thirty-three million, four hundred and twentyfour thousand dollars of the requested increase is to cover expenses in connection with maintenance and operation of activated vessels and increased consumption requirements. Maintenance and operation expenses cover labor for emergency and voyage repairs; costs of supplies and equipage (consumable supplies) which are used by the ships' complements in accomplishing routine maintenance work; and the cost of components and repair parts which are necessary for emergency and voyage repairs. Inventory and pipeline requirements.-One hundred and twenty-four million dollars is requested under this main heading (budget activity 1) to provide for the acquisition of inventories to meet "stocking" and pipeline requirements both continental and extra continental. (The latter will include stocks at a number of supply points in forward areas.) It is estimated $39,000,000 will be immediately incident to the maintenance and repair of operating vessels in far Pacific areas and $85,000,000 will be required incident to the acquisition of materials for which the Bureau of Ships has technical cognizance and responsibility. 2. Maintenance and preservation of Reserve Fleet: Senate bill, 1951- Revised requirements, 1951 No increase is required for this budget activity. 3. Cataloging and standardization: Senate bill, 1951... Revised requirement, 1951. No increase is required for this budget activity. 4. Electronics: Senate bill, 1951.. Proposed supplemental. Revised requirement, 1951. PROPOSED INCREASE IN PROGRAM (1) An increase of $115,900,000 for electronics major procurement. (2) An increase of $14,700,000 for electronics maintenance parts. $5, 700, 000 Details regarding the above procurement will be furnished under separate cover. 5. Research and development: Senate bill, 1951.. Proposed supplemental Revised requirement, 1951-. No increase is required for this budget activity. 6. Maintenance and operation of shore facilities: Senate bill, 1951. Proposed supplemental_ Revised requirement, 1951--- PROPOSED INCREASE IN PROGRAM $25, 392, 150 0 25, 392, 150 $133, 477, 126 74, 800, 000 208, 277, 126 (1) Maintenance and operation of shipyards. An increase of $74,550,000 is required to cover indirect costs incident to the new activations and emergency and voyage repairs covered by budget activity. These indirect costs are tied in directly with the labor which is needed to accomplish the activations and repairs on vessels as directed by the Chief of Naval Operations. They cover all the expenses of overhead employees and all of the leave, holiday, and supervision expense of productive employees as well. In other words this estimate pays for a substantial portion of the labor cost required for all the new work covered by this supplemental estimate. In addition, such indirect costs cover security requirements such as added personnel for police and fire departments. In arriving at the total labor load involved in activating vessels, the Bureau of Ships has assumed that the activation program will be spread over the remain ing portion of this fiscal year and that one-third to one-half of the activations will be accomplished in private repair shipyards. The actual scheduling of vessels into naval shipyards and private plants for activation is being accomplished at the present time. Minor changes in such schedules will not, it is believed, materially affect the estimated cost since the Bureau has assumed that the total cost of activation, including indirect costs, will be approximately the same whether the work is accomplished in a private plant or in a naval shipyard. (2) Advanced base material.-A minor increase of $250,000 is required to fill deficiencies in a special type of advanced base unit. 7. Maintenance and operation of Naval Reserve vessels: Senate bill, 1951. $8, 118, 500 0 8, 118, 500 $5, 366, 200 0 5, 366, 200 $33, 722, 500 19, 549, OCO Revised requirement, 1951. PROPOSED INCREASES IN PROGRAM 53, 271, 500 (1) An increase of $19,373,000 for additional petroleum products for active fleet vessels. This estimate provides funds for petroleum products consumed by vessels of the active fleet. The supplemental requirements are to provide for increased fuel consumption due to the activation of vessels as directed by the Chief of Naval Operations and the increased steaming of vessels for operations in the Far East. Additional petroleum requirements by type of products are as follows: (2) An increase of $176,000 for providing utility services due to the activation of additional vessels.-This estimate provides funds for utilities for vessels of the active fleet when in port and charged as a separate item. The increase in the number of vessels assigned to the active fleet results in increased requirements amounting to $176,000. 10. Departmental administration: Senate bill, 1951. Proposed supplemental_ Revised requirement, 1951.. PROPOSED INCREASES IN PROGRAM $7, 801, 724 1,055, 000 8, 856, 724 (1) An increase of $900,000 is required to provide for 600 new positions (187.5 man-years of employment) in the Bureau of Ships to handle the increased workload due to the Korean situation. (2) An increase of $155,000 is requested for overtime pay. Mr. MAHON. This is just a projection of your regular program, is it not? ACTIVATION OF VESSELS IN MOTH BALLS Admiral CLARK. Yes. This is to cover the cost, the first cost of activating about 280 vessels the Chief of Naval Operations has requested be activated from the reserve fleet; for the additional cost of operating those ships that are to be activated, plus the increased cost of the activated fleet which participates in Korea. Mr. MAHON. Is it not true that perhaps the greatest reserve weapon we have is this large reserve fleet which we are now able to call upon in an emergency? Admiral CLARK. They are the only ships we can get quickly. Mr. MAHON. And after these ships are taken out of moth balls we still will have many others? Admiral CLARK. That is correct. Mr. MAHON. And of different types, if we have to make use of them? Admiral CLARK, Yes. Mr. MAHON. None of them are of the latest or most modern design? Admiral CLARK. No. We have learned a lot of things since they were built, and we could build a better ship now; but with the new equipment, for which funds are here requested, which will be put on these ships, they will be improved. ELECTRONICS Mr. MAHON. This electronics item is quite an increase over the original budget, of course. Admiral CLARK. Yes. Even so, that is only a portion of what would be necessary. It was cut back to the figure that is recommended here because it appeared impossible to procure, in the time available, the items which were deemed necessary so this was cut back to about one-third of what we would have asked for had we felt it was possible to get the total quantity delivered in time. (Off-record discussion.) CONSTRUCTION OF SHIPS, NAVY Admiral CLARK. Under "Construction of ships, Navy," authorization is requested for Bureau of Ships' funds in the amount of $160,000,000 to cover the total estimated cost of a new program of shipbuilding and the expenses incident to advancing the conversion of the U. S. S. Essex. The new program, totaling $156,000,000, is tabulated in the ship table submitted under the heading of appropriation "Construction of ships, Navy." The estimated expenditures during fiscal year 1951 for this work are $61,000,000. SUMMARY JUSTIFICATION DATA Mr. MAHON. We will insert the prepared justification at this point. 69887-50-pt. 2—12 (1) An increase of $156,000,000 for 1951 supplemental shipbuilding program.— An increase of $156,000,000 is requested to cover additional obligating authority required for the shipbuilding program listed on the following table. The estimated expenditures on this program in fiscal year 1951 are $57,000,000. Estimates of costs and expenditures 1951 supplemental program |