CONTENTS Fubini, Dr. Eugene, Deputy Director of Defense Research and Engi- neering (Research and Information Systems), Department of De- fense, in behalf of Dr. Harold Brown, Director of Defense Research Morris, Thomas D., Assistant Secretary of Defense (Installations and Logistics); accompanied by Graeme C. Bannerman, Deputy Assist- ant Secretary of Defense for Procurement, Office of Assistant Secre- tary, Installations and Logistics; James N. Davis, Deputy Assistant Secretary of Defense for Weapons Acquisition and International Readiness; and A. William Buschman.. Staats, Elmer B., Deputy Director, Bureau of the Budget; accom- panied by Harold Seidman, Acting Assistant Director for Manage- ment and Organization; and Howard Schnoor, Office of Management Yarmolinsky, Adam, Special Assistant to Secretary of Defense; 134 178 Fubini, Dr. Eugene, Deputy Director of Defense Research and Engi- Morris, Thomas D., Assistant Secretary of Defense (Installations and Chart-Contractor performance evaluation system, flow of data_- Chart-Cost-plus-fixed-fee contracts as a percent of total contract Fundamental issues affecting defense-industry relationship- Reduced use of cost-plus-fixed-fee contracts_ Seidman, Harold, Acting Assistant Director for Management and Organization, Bureau of the Budget: Excerpt from Defense draft code.. Letter from Harold Seidman to Hon. Chet Holifield, May 22, Letters, statements, etc.--Continued Staats, Elmer B., Deputy Director, Bureau of the Budget: Depart- ment of Defense comment on strengthening management arrange- Yarmolinsky, Adam, Special Assistant to Secretary of Defense: Excerpt from Report to the President on Government Contract- ing for Research and Development (Bell Report).. Department of Defense Directive No. 5500.10, June 1, 1963- Rules for the avoidance of organizational conflicts of interest.. Young, John D., Director of Administration, National Aeronautics Agreement between the National Aeronautics and Space Ad- ministration and the Department of Defense concerning the NASA plans to operate the shipborne tracking stations requested O 204 NASA tracking and data acquisition facilities. 202 100 contractors (business firms) listed according to net value of 192 100 contractors listed according to net value of direct awards, 194 25 contractors listed according to net value of direct awards, 195 SYSTEMS DEVELOPMENT AND MANAGEMENT-1963 WEDNESDAY, MAY 1, 1963 HOUSE OF REPRESENTATIVES, OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, D.C. The subcommittee met, pursuant to notice at 10:05 a.m., in room 1501-B, Longworth Office Building, Hon. Chet Holifield (chairman of the subcommittee) presiding. Present Representatives Chet Holifield (presiding), William J. Randall, Richard S. Schweiker, and Frank J. Horton. Also present: Herbert Roback, staff administrator; Douglas Dahlin, staff attorney; Paul Ridgely and Robert McElroy, investigators. Mr. HOLIFIELD. The subcommittee will be in order. The purpose of the hearing today is to get a report from the Bureau of the Budget on followup actions which have been taken in response to the Report to the President on Government Contracting for Research and Development, the so-called Bell report. This report and the subsequent actions which have been taken in response to it constituted a major theme of last fall's hearings on systems development and management, since the report itself was closely related to, and in certain respects accorded with, the earlier studies and recommendations of this subcommittee. Last year, the Honorable David Bell, who was then the Director of the Bureau of the Budget and who was also the chairman of the executive group in the Government which prepared the report, testified before the subcommittee on the content of the recommendations and the initial actions which were being undertaken to implement them. In general, the report deals with such matters as Government organization for research and development, procurement and contracting procedures in the R. & D. field, and apportioning work among Government laboratories, not-for-profit institutions, industry, and universities. The problems of conflict of interest and creation of incentives for doing better work also are part of the picture. The subcommittee plans to issue one or more reports based on the extensive hearings of last summer and on the followup hearings we are beginning today. We will hear later from the Department of Defense and the National Aeronautics and Space Administration. Other agencies will submit written statements for the record. The principal witness this morning will be Mr. Elmer B. Staats, Deputy Director of the Bureau of the Budget, and his associates. Mr. Staats, we welcome you and are ready to hear your prepared state ment. Mr. STAATS. Thank you, Mr. Chairman. 1 |