SUBCOMMITTEE OF THE EIGHTY-FIFTH CONGRESS SECOND SESSION SPECIAL SUBCOMMITTEE IN CHARGE CLARENCE CANNON, Missouri, Chairman JOHN J. ROONEY, New York PRINCE H. PRESTON, Georgia JOHN TABER, New York PAUL M. WILSON, Staff Assistant to the Subcommittee Printed for the use of the Committee on Appropriations UNITED STATES WASHINGTON: 1958 STAFFOR 1953 COMMITTEE ON APPROPRIATIONS CLARENCE CANNON, Missouri, Chairman GEORGE H. MAHON, Texas ALFRED D. SIEMINSKI, New Jersey JOE L. EVINS, Tennessee EDWARD P. BOLAND, Massachusetts DON MAGNUSON, Washington WILLIAM H. NATCHER, Kentucky DANIEL J. FLOOD, Pennsylvania WINFIELD K. DENTON, Indiana HUGH Q. ALEXANDER, North Carolina ALFRED E. SANTANGELO, New York JOHN TABER, New York RICHARD B. WIGGLESWORTH, Massachusetts H. CARL ANDERSEN, Minnesota FREDERIC R. COUDERT, JR., New York EARL WILSON, Indiana BENJAMIN F. JAMES, Pennsylvania GERALD R. FORD, JR., Michigan EDWARD T. MILLER, Maryland CHARLES W. VURSELL, Illinois HAROLD C. OSTERTAG, New York FRANK T. BOW, Ohio HAMER H. BUDGE, Idaho CHARLES RAPER JONAS, North Carolina MELVIN R. LAIRD, Wisconsin KENNETH SPRANKLE, Clerk and Staff Director (II) ADVANCED PROCUREMENT APPROPRIATIONS FOR 1958 THURSDAY, MARCH 27, 1958. WITNESSES BUREAU OF THE BUDGET R. E. MERRIAM, DEPUTY DIRECTOR W. F. MCCANDLESS, ASSISTANT DIRECTOR FOR BUDGET REVIEW J. P. BRADLEY, ACTING LEGAL ADVISER GENERAL SERVICES ADMINISTRATION C. D. BEAN, COMMISSIONER, FEDERAL SUPPLY SERVICE THE PRESIDENT'S PROPOSAL Mr. CANNON. Mr. Director, we have a communication from the President under date of March 26, 1958, proposing to make available immediately not to exceed 50 percent of the amounts estimated in the 1959 budget for the procurement of supplies, materials, and equipment for the various civilian agencies of the executive branch, with certain stated exceptions. I will insert this document in the record at this point. (The document referred to follows:) [H. Doc. No. 359, 85th Cong., 2d sess.] PROCUREMENT OF SUPPLIES, MATERIALS, AND EQUIPMENT FOR THE Various CIVILIAN AGENCIES OF THE EXECUTIVE BRANCH Communication from the President of the United States transmitting a proposal to make available for obligation now 50 percent of the amounts estimated in the 1959 budget for the procurement of supplies, materials, and equipment for the various civilian agencies of the executive branch THE WHITE HOUSE, Washington, March 26, 1958. The SPEAKER OF THE HOUSE OF REPRESENTATIVES. SIR: I have the honor to transmit herewith for the consideration of the Congress a proposal to make available for obligation now 50 percent of the amounts estimated in the 1959 budget for the procurement of supplies, materials, and equipment for the various civilian agencies of the executive branch. The purpose of this proposal is to stimulate business activity and employment by permitting civilian agencies of the Government to advance their procurement of such items budgeted for the next fiscal year. This action would not increase Government purchases but would accelerate them. The details of the proposal are set forth in the accompanying letter from the Director of the Bureau of the Budget and the attachment thereto. I recommend prompt consideration and favorable action by the Congress. Respectfully yours, (1) DWIGHT D. EISENHOWER. The PRESIDENT, The White House. EXECUTIVE OFFICE OF THE PRESIDENT, SIR: Pursuant to your instructions to accelerate Government procurement, I have the honor to submit herewith for your consideration the attached proposed provision making supplemental appropriations for the fiscal year 1958 for the various civilian agencies of the executive branch. The proposed appropriation provision would make immediately available to the civilian agencies one-half of the amounts estimated in the 1959 budget for supplies and equipment chargeable to 1959 appropriations. The funds thus made available would be used to place orders promptly for supplies and equipment which are needed and are planned for procurement next fiscal year. This action would not change the total of Government purchases, but would alter the timing. This would provide an immediate stimulus to the Nation's economy. Funds would not be made available for appropriations which are proposed for 1959 but for which detailed estimates were not included in the budget which you transmitted to the Congress in January; thus, no amounts would be made available for items such as the mutual security program, which is dependent upon the enactment of additional legislation. Funds would not be provided for any new agency or appropriation account, regardless of whether detailed estimates were included in the budget, if there was no appropriation for such agency or account in the fiscal year 1958. This provision would make available in 1958 up to $840 million, which will ultimately be charged to 1959 appropriations, for items which normally would not be ordered until after the beginning of the new fiscal year on July 1 next. It is expected that the agencies will make the fullest use of these funds to place orders immediately, subject to limitations imposed by the need for seasonal buying, limited storage capacity, and similar factors. I recommand that the attached proposal be transmitted to the Congress with a request for prompt consideration. Respectfully yours, MAURICE H. STANS, Director of the Bureau of the Budget. ADVANCE PROCUREMENT For the advance procurement (including advances to supply funds therefor) of supplies, materials, and equipment, not to exceed 50 per centum of each of the amounts set forth in the schedules in the Budget for the fiscal year 1959 (House Document numbered 266, Eighty-fifth Congress), under each appropriation or fund, for the objects "Supplies and materials" and "Equipment," is hereby appropriated, out of any money in the Treasury not otherwise appropriated, and out of applicable corporate or other revenues, receipts, and funds, for the several departments, agencies, corporations, and other organizational units in the executive branch of the Government (including the District of Columbia), for which appropriations were granted for the fiscal year 1958 and are proposed for the fiscal year 1959: Provided, That this paragraph shall not apply to military functions of the Department of Defense. The appropriations and funds made available under this heading shall be immediately available and shall remain available until (a) the date on whch the period of availability terminates for the applicable appropriation or fund provided in the pertinent appropriation Act for the fiscal year 1959, or (b) such earlier date as the pertinent appropriation Act may be passed by either House of Congress without any appropriation, or without provision in the pertinent appropriation or fund, for the objects set forth under the first paragraph of this heading. Appropriations and funds made available and authority granted under this heading for advance procurement may be used for that purpose, during the fiscal year 1958, without the apportionment which would otherwise be required by subsections (c) and (d) of section 3679 of the Revised Statutes, as amended (31 U. S. Č. 665), and the amounts made available under this heading shall be charged to the applicable appropriations or funds provided in appropriation Acts for the fiscal year 1959. APPROPRIATIONS AND FUNDS INVOLVED Mr. CANNON. Can you give us a recapitulation of the appropriations and the agencies to which this proposition would apply, and the amounts which would be involved? Mr. MERRIAM. Yes, sir, Mr. Chairman. I have a very detailed breakdown of that here. Mr. CANNON. Is it the breakdown we received earlier today? Mr. MERRIAM. This one has some of the figures refined in it. The one we have is perhaps more accurate. Mr. CANNON. It will be made part of the record at this point. (The information referred to follows:) ESTIMATED 1959 OBLIGATIONS IN THE EXECUTIVE BRANCH OF THE Government (INCLUDING THE DISTRICT OF COLUMBIA) FOR SUPPLIES AND MATERIALS AND EQUIPMENT FOR CERTAIN APPROPRIATIONS AND LIMITATIONS Amounts shown in the columns of the following table are the 08 and 09 obligations estimated for fiscal year 1959 for the accounts which would be subject to the proposed "advance procurement" provision. The proposal would make available immediately up to 50 percent of the amounts shown. |