(4) An increase of $3,250,000 for contract stevedoring.-Due to the expanded military operations in the Far East it is estimated that approximately $3,250,000 will be required for additional contract stevedoring costs at the Naval Supply Center, Oakland, Naval Supply Depot, Seattle, Naval Supply Center, Pearl Harbor, and Naval Supply Depot, Guam. The estimated increased requirements are based upon established contract rates and the planned level of operations. (5) An increase of $490,000 for fuel storage. The Joint Chiefs of Staff have prescribed levels at which the amount of aviation gasoline is to be maintained. In order to maintain these levels, storage space for additional barrels within continental United States must be leased at a cost of $490,000 for the balance of fiscal year 1951.

(6) An increase of $900,000 for the procurement of noncombat vehicles.-Normal operations necessitate the use of noncombat vehicles in connection with the distribution of supplies and materials. Due to the expanded military operations which will increase supply and distribution_requirements it is estimated that an additional 255 vehicles will be required. Details of these requirements are as follows:

(7) An increase of $955,000 for the procurement of materials handling equipment.Materials handling equipment enables the rapid movement of supplies, materials, and equipment with comparatively few personnel. The amount and condition of such equipment now available in the supply system is not sufficient to accommodate increased requirements. The data below list these additional requirements in detail:

(8) An increase of $1,200,000 for the procurement of pallets.-Approximately 300,000 additional pallets will be required during fiscal year 1951 to move required supplies, material, and equipment with maximum speed and facility and with minimum handling and damage. The great bulk of these pallets are needed at supply centers, and the balance will be distributed where required throughout the supply system. At an average price of $4, $1,200,000 will finance these additional pallets.

(9) An increase of $1,100,000 for advance base components.-The Bureau of Supplies and Accounts in compliance with directives of the Chief of Naval Operations is responsible financially for procurement and maintenance in a readiness status of certain advance base functional component material such as office equipment assembled in components for which other bureaus are considered dominant. This Bureau is financially responsible as the dominant bureau for material for cargo handling battalions, ship's store components, and supply depot components. The requirements of this activity cover material deficiencies only.

2. Finance:

Senate bill, 1951

Proposed supplemental

Revised requirement, 1951---.

PROPOSED INCREASES IN PROGRAM

$14, 919, 300 6, 000, 000

20, 919, 300

(1) An increase of $1,290,200 for additional personnel at Navy regional accounts offices. The funds requested under this estimate are required for additional personnel at 13 Navy regional accounts offices. These offices prepare and pay public vouchers covering dealers' bills for all activities in the continental United States and Hawaiian area, act as central disbursing offices to examine and consolidate the accounts of all Navy disbursing officers afloat and ashore, consolidate and summarize the reports of all Navy accounting offices, audit stores returns of all Navy officers accountable for stores, and render to the Bureau of Supplies and Accounts and the other Bureaus of the Navy Department consolidated accounting reports covering financial and stores transactions of all naval activities.

The increased volume of public vouchers paid, military and civil roll payments, and purchase contracts and establishment of additional accounting offices for activities now served by other accounting offices will require expansion of the accounting functions in the Navy regional accounts offices. An increase in the volume of stores issued to activities, ships and overseas bases will result in additional stores accounts to audit and summarize, and increase in the size of the accounts now handled.

(2) An increase of $292,600 for accounting operations at small craft accounting offices.-These offices account for materials and equipment issued and for services rendered to ships operating indirectly under the general supply system except for issues of provisions, ship's store stock and clothing and small stores, and perform cost and appropriation accounting for such ships.

Plans are to place all ships on the indirect system with accounting performed by the small craft accounting offices in order to relieve operating forces of accounting responsibility. Funds requested under this estimate will provide civilian personnel for the performance of accounting functions currently performed by operating forces afloat.

(3) An increase of $1,392,100 for additional personnel at the field branch.—The funds under this estimate are required to support additional personnel at the field branch, Cleveland, Ohio. The field branch administers the pay accounts of all Navy military personnel, including allotments, family allowances, and death and uniform gratuities; issues savings bonds; administers examination of all pay records; provides pay appropriation data to the Treasury Department and the General Accounting Office, and settles accounts of former Navy disbursing officers. Although the workload is related directly to the military strength of the Navy, the planned augmentation of the Navy will have a disproportionately large effect on field branch requirements. Examples of the factors which exert this influence are listed below:

(a) A greater proportion of the Navy are stationed where their families cannot reside, resulting in more allotments per man.

(b) Changes in residence are more frequent since men are transferred more often. (c) Missing and deserter allotment control units are required only during times of military combat.

(d) Loss of records aboard ships and in the field necessitates reconstruction of pay records at the field branch.

(4) An increase of $996,000 for additional personnel at Navy accounts disbursing offices. The funds under this estimate are required to support additional personnel at 15 Navy accounts disbursing offices. These offices provide disbursing service to military personnel attached to activities without disbursing officers in each naval district and in addition provide disbursing service for five major personnel receiving stations, the Naval Training Station, Newport, R. I., and the Naval Training Center, Great Lakes, Ill. Very early and rapid expansion is required to keep pace with increase in the number of military personnel on active duty and to provide, in addition, civilian employees to replace enlisted personnel currently on board.

(5) An increase of $630,200 for the Cost Inspection Service. The Cost Inspection Service performs auditing functions for the Department of the Navy comparable to those performed by commercial public accounting firms. This estimate pro

vides funds for additional personnel for the Cost Inspection Service to perform additional workload resulting from (a) expanded Naval aircraft procurement program requiring audit functions at plants of airplane manufacturers; (b) shipbuilding program, in which the Service will be called upon to perform the audit work at shipbuilders plants resulting from additional contract authority granted to the Bureau of Ships; (c) ordnance and ordnance stores where it is expected that there will be a substantial increase in the number of cost-type production contracts; (d) research and development procurement, both basic and applied; and (e) miscellaneous audit functions which will increase proportionately to the increase in procurement.

(6) An increase of $1,398,900 for overtime work at installations performing servicewide accounting and disbursing functions.-Funds are required to support overtime work incident to operation on a 6-day work-week by the staff currently on board. The change to a 6-day week is an immediate need because the workload factors are increasing at a rate faster than recruitment can be accomplished, and the 6-day week is expected to continue throughout the fiscal year.

3. Material control:

Senate bill, 1951_

Proposed supplemental__

Revised requirement, 1951___

PROPOSED INCREASE IN PROGRAM

$14, 130, 800

7, 666, 000 21, 796, 800

An increase of $7,666,000 to cover increased workload incident to procurement and redistribution of essential Navy material.―The current expansion in the operating forces, as set forth in the planning directives of the Chief of Naval Operations, will require an increase in the number of personnel employed at central inventory control points if satisfactory material support is to be rendered to the increased operating forces. Although the supply demand control points are now charged with the procurement, distribution, and disposal responsibilities for material under their cognizance, these tasks will be of such magnitude under the planned program that additional personnel will be required to meet the resultant increased workload. Specifically, the increase in personnel will be required in redistributing stocks of material now on hand to locations where it will be required for use. Schedules of material already under contract must be reviewed to insure that such material entering the supply system is inducted at the proper supply point. Reserve fleet requisitions which were prepared at the time of inactivation of vessels from the active fleet are now being processed as the reactivation directives are released from the Chief of Naval Operations. Inasmuch as many cataloging and technical changes have been effected since the end of World War II, additional technical personnel will be required to screen the items as originally submitted to insure the receipt of the proper material by the requesting vessel. In addition to the technical identification required, the sheer volume of requisitions being processed will far surpass the normal processing capacity of any and all of the supply demand control points.

With the activation of fleet units and the greater consumption of material within the active fleet, due to more strenuous operating conditions, the supply demand control points must review their complete range of material as it is related to the increased program and consumption rate. This determination of requirements by the inventory control and technical personnel must then subsequently be processed by the purchasing divisions at supply demand control points maintaining such purchasing functions. The afore-mentioned tasks will require additional personnel.

A planned increase in the level of Navy operations places a workload on the inventory control points in advance of operational demand in that material must be distributed throughout the system prior to use. Therefore, employment under this activity must be in advance of the actual operational increase. 4. Transportation of things:

Senate bill, 1951..
Proposed supplemental

Revised requirement, 1951__

$47, 641, 000 92,283, 000

139, 924, 000

PROPOSED INCREASES IN PROGRAM

(1) An increase of $33,283,000 for movement of material via inland and overseas air transportation.-Shipments of material during the fiscal year 1951 will be made at a level of operation consistent with the over-all planned operation of the Navy. Due to greater naval activity in the Far East, and a general expansion in the military program it is estimated that a supplemental amount of $33,283,000 will be required for the inland and overseas air transportation of an additional 1,972,204 tons of material in fiscal year 1951. This additional tonnage will be necessary in connection with providing greater fleet support to existing vessels, outfitting and supporting vessels to be reactivated, and in replenishing and augmenting the stockpile of military items to that level consistent with planned requirements. The following table shows dollar and tonnage requirements for the fiscal year 1951:

Inland transportation... Overseas air transportation..

Total

$15.87 2,060, 302 $32, 697,000 1, 971, 204 $31, 283, 000 4,031, 506 $63, 980, 000 2,000.00 1,000 2,000,000 1,000 2,060, 302 32, 697, 000 1,972, 204 33, 283, 000 4,032, 506

2,000,000

65, 980,000

(2) An increase of $59,000,000 for movement of Navy lift requirements via ocean transportation.-Due to the expansion in the military program, particularly in the Far East, the Military Sea Transportation Service estimates supplemental requirements of $59,000,000 for additional lift via ocean transportation in the fiscal year 1951. The additional lift will be required in connection with the increase in fleet operations and supply support consistent with planned requirements. The following table shows additional lift requirements:

PROPOSED INCREASE IN PROGRAM

An increase of $1,000,000 for printing and reproduction.—In order to support augmented supply and fiscal operations increased forms and tabulating cards are required as follows: (a) carbon interleaved and other specialty forms designed to be used in specialized machines, thereby utilizing to the fullest extent available qualified personnel, $575,000; (b) single sheet forms essential for accomplishment of increased prescribed functions, $225,000; and (c) printing of tabulating cards for use with electric accounting machine equipment to accelerate production and minimize manual labor, $200,000.

9. Departmental administration:

Senate bill, 1951__

Proposed supplemental..

Revised Requirement, 1951..

PROPOSED INCREASE IN PROGRAM

$4,938, 000 708, 000

5, 646, 000

(1) An increase of $545,400 for additional personnel required to handle increased workload incident to expanded operations. The funds requested in this estimate are for the employment of additional civilian personnel required for the administration of functions centralized in the Bureau of Supplies and Accounts. These additional personnel are required for the development of plans, conducting research, formulation of policies and specific procedures for supply and fiscal functions afloat and ashore, and the management of field activities under the cognizance of the Bureau of Supplies and Accounts. The following table shows the functional distribution of these funds:

Administration (executive direction and other common services).

147, 600

Total__.

545, 400

(2) An increase of $104,000 for payment of overtime.-The funds requested in this estimate are for the payment of overtime to departmental personnel currently engaged in the functions described above.

(3) An increase of $58,600 for supplies, material, and services.-The requirements for supplies, material, and services are related to the additional personnel requirements. As a result of the increased personnel requirements an increase is required for items directly related to the number of employees, such as expendable supplies. Mr. SHEPPARD. This proposed supplemental estimate is made necessary, of course, by the recent accelerated military program? Admiral Fox. That is correct.

Mr. SHEPPARD. And this is part and parcel of your responsibility from an administrative point of view as Chief of the servicewide Supply and Finance Section?

Admiral Fox. That is correct.

Mr. SHEPPARD. Is there anything in this presentation that is to a large degree, not a part and parcel of the original presentation that was made?

Admiral Fox. None whatever.

Mr. SHEPPARD. In other words, this is merely an enlargement of the original presentation, and the justifications you have in principle for the original presentation would obviously apply to this presentation today?

Admiral Fox. That is correct.