field of procurement. This is a continuing process. One or another of the departments is always trying something new, to solve new problems or to improve existing procedures. If a new idea is successful and can be used with equal success by the other departments, it is a candidate for uniform treatment in the ASPR. Mr. Higgins recently described to you the qualified manufacturers list procedure for quartermaster clothing procurement. The principles incorporated in this procedure may very well turn out to be such a candidate for coverage in the ASPR. It has just been submitted to the ASPR committee for its consideration..

THE ARMY PROCUREMENT PROCEDURE (APP)

In the same way that ASPR seeks to achieve uniformity among the military departments, the Department of the Army seeks to accomplish uniformity among the procuring activities of the Army through promulgation of the Army Procurement Procedure. The APP is issued under the authority of the Assistant Secretary of the Army (Logistics) by the Deputy Chief of Staff for Logistics.

The next chart shows the organization of the Army for procurement, and portrays the flow of procurement authority from the Secretary of the Army through the several levels to the technical services, in which the contracting officers serve.

The Secretary of the Army is charged by statute with the responsibility for and the authority necessary to conduct all affairs of the Army Establishment, including, among other things, logistical support, under the direction of the Secretary of Defense. He has assigned to the Assistant Secretary of the Army (Logistics) responsibility for the procurement activities of the Army Establishment. The Assistant Secretary, therefore, establishes policies in this field for the Department of the Army. He has delegated portions of his authority in accordance with laws and regulations, in various degrees, to various levels of the Army Establishment.

The Deputy Chief of Staff for Logistics is the official in the military organization who is charged with responsibility for carrying out the procurement functions throughout the Army Establishment. He acts in this area under the functional supervision of the Assistant Secretary for Logistics. He directs and controls the technical staff and services in all matters coming within his responsibility. He prescribes the missions, organization, and procedures of the technical services, except as to civil functions of the Chief of Engineers, and as to matters of health and medical care of troops, which are under the jurisdiction of the Surgeon General.

The technical staff is composed of the headquarters offices of the Chief Chemical Officer, the Chief of Engineers, the Chief of Ordnance, the Quartermaster General, the Chief Signal Officer, the Surgeon General, and the Chief of Transportation.

Each of these chief officers is also the head of his technical service, in which capacity he commands the personnel, activities, and installations assigned to his service. The principal spheres in which they operate, from the military procurement point of view, are briefly as follows:

The Chief Chemical Officer provides services, material, and equipment pertaining to chemical, biological, and radiological warfare.

The Chief of Engineers supervises the engineering, construction, and real-estate service for the Army and the Air Force, provides engineer material and services, supervises repairs and utilities activities, and provides Army mapping services.

The Chief of Ordnance provides ordnance materiel, including guns, missiles, ammunition, and motor vehicles.

The Quartermaster General provides food, clothing, petroleum, and other quartermaster equipment, supplies, and services.

The Chief Signal Officer plans and supervises signal communications, electronics, pictorial, and cryptologistic services and provides materiel and devices in this field.

The Surgeon General provides health services for the Army, and purchases medical materiel of emergency and like nature which are other than the standard items procured by the single manager, the Military Medical Supply Agency, under the Department of the Navy. Mr. COURTNEY. May I break in there?

Mr. KINTISCH. Yes, sir.

Mr. COURTNEY. The Quartermaster General has the single manager procurement assignment for subsistence?

Mr. KINTISCH. I am coming to that, sir.
Mr. COURTNEY. All right.

Mr. KINTISCH. I am coming to that next.

The Chief of Transportation provides transportation services and materiel and furnishes traffic-management guidance.

In several fields, under Department of Defense direction, "single managers" have been appointed by the Secretary of Defense. The Secretary of the Army, as the single manager in two fields which involve procurement, has appointed the executive director of the Military Clothing and Textile Agency, who operates under the Quartermaster General and is responsible for the procurement of all clothing and textiles for the three military departments; and the executive director of the Military Subsistence Supply Agency, who also operates under the Quartermaster General and is responsible for the procurement of all subsistence for the three military departments. The Secretary of the Army is also the single manager in the field of traffic management in the continental United States and, as such, has appointed the executive director of the Military Traffic Management Agency, who operates under the Chief of Transportation and is responsible for the furnishing of traffic-management services for the three military departments.

The Army's procurement operation is accomplished by the organization I have described and in their widely dispersed purchasing offices in the field. The magnitude of the operation is reflected in the reported statistics: In the fiscal year 1957, 1,798,438 procurements were made, for a total of $5.025 billion. The figures for 1958 are not yet in, but will probably be about the same.

The supervision of the Army's procurement function

Mr. HARDY. Mr. Chairman, before he leaves that chart, I would like to ask one question in connection with the flow of authority from the Secretary of Defense's office or the Assistant Secretary of Defense. Now, you had up there awhile ago a chart that started off with the Materiel Secretary's Council, which was headed by the Assistant Secretary of Defense, Mr. McGuire.

Now, how does-where is the connecting line between him and the Assistant Secretary of Defense-Assistant Secretary of the Army for Logistics? Does it flow directly? Does it go through the Secretary of the Army, or how does that happen?

Mr. KINTISCH. I was speaking in connection with the chart dealing with the organization of the Army for procurement with the operation of procurement.

The Secretary of the Army is responsible for actual procurement. The Secretary of Defense is responsible for enunciating the policies under which the military departments will operate.

Mr. HARDY. Don't ever let anybody tell you that the office of Perkins McGuire doesn't get into operations. I can give you some specific instances on that. And that is why I want to know how the flow is. Does it flow directly to Higgins or does it flow through the Secretary?

Mr. KINTISCH. The policies which Mr. McGuire enunciates

Mr. HARDY. If you want specifics, I will give you specifics. I don't think we want to get into the specifics here now, But I know that Perkins McGuire does get into operating decisions.

Mr. KINTISCH. To the extent that it is necessary to formulate policy decisions and to see that policy decisions are properly carried out, I would say that Mr. McGuire does get into operations.

Mr. HARDY. No; he came over to my office and sat in with_Fred Bantz on one. Does it flow directly from him to the Assistant Secretary? Does it flow through the Secretary, or does it flow

Mr. KINTISCH. The flow of policy decisions comes from the Office of the Secretary of Defense through Mr. McGuire to the Secretary of the Army.

Mr. HARDY. And he has nothing to do with operations?

Mr. KINTISCH. And for the Secretary of the Army, Mr. Higgins, as the Assistant Secretary of the Army for Logistics, takes these policies and passes them on to the lower echelons.

Mr. HARDY. I will try to pin this down. On Cheatam Annex, did that stem from Perkins McGuire or Higgins or whom?

Mr. KINTISCH. Sir, I am unable to answer the question. information.

Secretary JOHNSON. Mr. Hardy, may I try this?

I have no

Mr. HARDY. That is all right. Let's skip it, Mr. Chairman. I don't want to get sidetracked. But it is a problem. We were trying to speak about keeping the Secretary of Defense's Office in the policy angle, and we are just kidding ourselves. I don't want to be kidded,

that is all.

I didn't get any answer to my question, Mr. Chairman, but it is all right.

Mr. HÉBERT. Mr. Johnson offered to answer it.

Mr. HARDY, I know; but he was talking about Cheatam Annex. The thing I was trying to understand

Secretary JOHNSON. I was going to answer I think on the general subject.

Mr. HARDY. Fine. I will be glad to have it.

Secretary JOHNSON. It happens that Cheatam Annex was an interservice decision. It had to be made on an interservice basis. The policy therefore was set by the Assistant Secretary of Defense, the policy as to the future operation of Cheatam Annex. So it was a policy decision by the Department of Defense.

Mr. COURTNEY. Then the question Mr. Hardy asked is how is that authority or that decision transmitted?

Mr. HARDY. No, sir.

Secretary JOHNSON. The policy is then transmitted to Mr. Higgins. Mr. Higgins issues a directive, if it is the Army that is to operateand not using a specific instance-to the Deputy Chief of Staff for Logistics, and the operations are carried out from there on.

Mr. HARDY. Well, that is the thing I was trying to understand, is how the flow takes place. Is it from McGuire to Higgins or is it from McGuire through the Secretary of Defense to Brucker and then to Higgins?

Secretary JOHNSON. Mr. Higgins has been delegated by Mr. Brucker to carry out the functions in this field. So in effect it is the same whether it goes to Mr. Brucker or to Mr. Higgins. In actuality, it goes to Mr. Higgins.

Mr. HARDY. I was simply trying to tie it to this chart, of flow of authority, that is all.

Secretary JOHNSON. Yes, sir.