[General Services Administration, Administrator's Annual Report, Fiscal Year 1968] [From the U.S. Government Publishing Office, www.gpo.gov] Administrator s ANNUAL REPORT Fiscal Year 1968 GENERAL SERVICES ADMINISTRATION ICC- GENERAL SERVICES ADMINISTRATION WASHINGTON OFFICE OF THE ADMINISTRATOR GENERAL SERVICES ADMINISTRATION December 27, 1968 The Honorable President of the Senate The Honorable Speaker of the House of Representatives Dear Sirs: I am pleased to transmit to the Congress the Annual Report of the General Services Administration for the fiscal year which ended June 30, 1968. Lawson B. Knott, Administrator Sincerely yours, 3 1336 05725 9005 TABLE OF CONTENTS Page The General Services Administration in Fiscal Year 1968 . . 1 Archives and records management.................................. 3 Federal buildings................................................ 11 Supply operations and management................................. 17 Property management and disposal................................. 23 Telecommunications, public utilities, and transportation......... 33 Counseling businessmen, assisting the public..................... 36 Staff and administrative services................................ 38 Financial statement.............................................. 42 Summary of operations............................................ 43 iii THE GENERAL SERVICES ADMINISTRATION IN FISCAL YEAR 1968 On June 30, 1968, the General Services Administration completed its 19th year. Created in 1949 as a central records and property management agency, GSA in the past year continued to provide numerous basic services—and assistance—to other executive agencies, thereby helping them carry out their own missions. Functions performed by GSA include: providing and maintaining office and related working space; procuring and distributing supplies; transferring excess property among agencies for further Federal use and disposing of property surplus to Government needs; managing stockpiles of materials maintained for use in national emergencies and disposing of excesses; operating centralized telecommunications and motor pool systems; and storing and administering records. During the year, increased use of computers and other automatic data processing devices by the Government posed special problems in the general services field, particularly in recordskeeping and in the procurement and sharing of sophisticated data processing equipment. The actions taken by GSA to cope with this increasing responsibility are reported in the pages which follow along with the other activities of the agency during the year. The General Services Administration has five operating services: National Archives and Records, Public Buildings, Federal Supply, Property Management and Disposal, and Transportation and Communications. Headquarters of the agency are in Washington, D.C., where there is also a regional headquarters. Other regional offices are in Boston, New York, Atlanta, Chicago, Kansas City (Mo.), Fort Worth, Denver, San Francisco, and Auburn (Wash.). 1 . -. . . < • L Researchers consult the Nation’s historical records in the Central Research ^..Room of the National Archives. Archives and Records Management The archival and records programs of the General Services Administration are administered by the National Archives and Records Service and are based upon the responsibility to preserve historically important documents and to promote accessibility to other records during their useful life. During the past year, the National Archives and Records Service took steps to encourage expanded use of its historical records, provided guidance and assistance to scholars in the use of Federal records, supported projects for the organization and publication of the papers of prominent Americans, published the basic documents which promulgate the executive orders and administrative decisions of the executive branch of the Federal Government, developed archival plans for two additional Presidential archival depositories, provided increased advice and assistance to other agencies for the management of their records and files, and supplied storage and reference service through its system of Federal records centers. The National Archives The volume of records constituting the National Archives of the United States rose to 909,000 cubic feet during the fiscal year and a significant change took place with the beginning of controlled decentralization of these permanently valuable records. Working and expansion space in the overcrowded National Archives Building was obtained by sending about one-third of the records to the new Washington National Records Center building in Suitland, Md., where they will be permanently housed in space especially built and equipped for the purpose. In addition, a regional archives concept was initiated in some of the Federal records centers by the establishment of small cores of archival materials of particular regional significance. Ultimately, as funds and staff are available, it is anticipated that each regional Federal records center will have such units. 3 The past year saw considerable progress in the development of a computer program for the production and application of finding aids for archives and private papers. The project, supported by a grant from the Council on Library Resources, Inc., is being carried out in cooperation with nine other institutions, both Government and private. Less than a year into the 2-year-grant period, the project is well ahead of schedule. Another important innovation during the year was the initiation of a series of conferences directing the attention of the academic community to archival holdings and problems. The first of these conferences coincided with the opening of the Center for Polar Archives in the National Archives and was devoted to records relating to Arctic and Antarctic exploration by the United States. The second dealt with the National Archives and statistical research. A third was scheduled on the captured German and related records of World War II. The success of these pilot conferences led to a decision to schedule other conferences of major concern to both Government and scholars. Sales of microfilm publications, primarily to research institutions and libraries, exceeded 113,500 rolls, a 25-percent increase over last year. Since 1940, the equivalent of 5 million pages of the most valuable documentary holdings of our Nation has been distributed to individuals, research institutions and libraries. Pamphlets describing the contents of 35 microfilm publications were issued. The production of negative microfilm exceeded 3,000 rolls. Large numbers of visitors continued to be attracted to the National Archives building. Among the exhibits were a presentation on the Arctic and Antarctic and a display on statistics presented to coincide with the conferences on those subjects. An exhibit on “The Making of a President” featured material from four Presidential archival depositories. Numerous exhibits were prepared for display outside the National Archives, including one on Howard University for the General Accounting Office. Exhibits were planned to commemorate the Test Ban Treaty’s fifth anniversary, the 1918 Armistice and the Paris Peace Conference, Human Rights Year 1968, and the Revolutionary War Bicentennial. 4 The number of reference services on records constituting the National Archives increased slightly over that of the preceding year to a total of 571,783. Thirty new retention plans, identifying permanently valuable records of particular Federal agencies, were prepared. A special study on GSA’s responsibilities for motion pictures and other audiovisual records was completed and recommendations were sent to the Bureau of the Budget for determination of available resources. The study proposed that audiovisual archival and records center programs of NARS be augmented to meet Federal agency needs, and that five new audiovisual services for Federal agencies and the general public be established. These services include central points for information, sales and free loan distribution, a motion picture stock footage library for nonDefense agencies, and an audiovisual technical assistance service for Federal agencies. It was decided during the year to establish an Archives Advisory Council drawn from the scholarly community to advise on matters relating to the effectiveness of the Federal archival program. The advisory committee, chaired by the Archivist of the United States, was appointed by the Administrator. Another significant policy decision made was that the National Archives and Records Service will publish a scholarly journal three times a year as a new means of communication with the academic world. Plans were prepared for the first three issues. Presidential Archival Depositories Construction of the Lyndon Baines Johnson Library by the University of Texas on its campus at Austin was begun and completion is anticipated in early 1970. GSA, which will operate the Johnson Library as it does the other Presidential archival depositories, worked closely with the architects under contract with the University of Texas in planning the new facility. A gift of more than 200,000 feet of film relating to John F. Kennedy was received from the Columbia Broadcasting System. The John F. Kennedy Oral History Project continued its activities which have resulted in the completion of more than 724 interviews since 1964. 327-817 0-69—2 5 An addition to the Harry S. Truman Library which provides an additional exhibit area plus office space and an enlarged museum was completed during the year and the new museum area was opened to the public. Planning for the construction of a much needed addition to the Franklin D. Roosevelt Library was completed and construction is expected to be underway by February 1969. Work continued on a three-volume documentary publication, “Franklin D. Roosevelt and Foreign Affairs,” which will be published early in 1969 by the Harvard University Press. Architectural studies were underway incident to plans to remodel and enlarge the Dwight D. Eisenhower Museum building in order to display many interesting items now in storage. Records Management The National Archives and Records Service has a central role in the executive branch paperwork program, providing general guidelines and direct technical assistance to Federal agencies on such demanding subjects as paperwork automation and information systems for management decisionmaking. In the field of guidance, two new workshops were developed: “Modernizing Management Reports,” a 3-day course to insure better information for management decisionmaking, and “Office Information Retrieval,” a 5-day course covering theory and practice of data retrieval, including automation techniques. Added to the growing list of handbooks were two new volumes: “Communicating Policy and Procedure” and “File Stations.” More specific guidelines on paperwork control programs were given thorough detailed evaluations made in six Federal agencies. The ad hoc Committee on Machine-Readable Records submitted recommendations regarding the archival management of magnetic tapes and other computer-produced records and a pilot operation was authorized to cope with the problems of obtaining, understanding, and servicing machine-readable records. There are those who believe that the impact of computer records on archives may be greater than that of the typewriter. Direct assistance was given to other agencies through 68 paperwork management surveys and 52 technical assistance projects based upon workshops. Over 100 lesser projects comprising con 6 sultations and short-term assistance (averaging 1 workweek) were also provided to agencies at their request. According to agency reports to GSA, the surveys and assistance resulted in more than $10 million in savings to the agencies and other benefits including reduced time lags and quality improvements. Two large national symposiums were held in collaboration with other Government agencies and private industry to help managers keep abreast of new developments: “Communicating Policy and Procedure” and “Mechanizing the Information Process.” About 1,800 attended the two symposiums. Continuing development of pertinent workshops and expansion of agency surveys and technical assistance projects are planned in an expanding program to improve paperwork handling and records control within the Federal Government. Federal Records Centers Records centers handled 6,165,103 reference inquiries, a new high, exceeding the figure for fiscal year 1967 by almost 600,000. Center holdings reached a record 9,526,000 cubic feet, over one-third of all Federal records. Regional centers received 943,300 cubic feet of records, also a new high, and destroyed 576,000 cubic feet. A governmentwide records cleanout campaign and the continuing moratorium on the acquisition of filing equipment were major causes of the large amounts of record transfers and destruction of unneeded records. Cleanout campaigns resulted in agencies’ transfer of 515,000 cubic feet of records to centers and their destruction of 1 %2 million cubic feet. The number of file cabinets purchased by Federal agencies during fiscal year 1968, a total of 43,717, was 26 percent below purchases for fiscal year 1967 and 40 percent less than the number of cabinets purchased during 1964, just before the moratorium was imposed. Transferring records to the centers enabled the Government to save over $6.6 million by clearing for reuse: • 469,800 square feet of office space • 113,600 square feet of storage space • 72,800 filing cabinets • 8,900 transfer cases • 570,500 linear feet of shelving 7 The movement of records into the new Washington National Records Center at Suitland, Md., was completed during the year. Eventually, the center will hold almost 4 million cubic feet of records. To meet overall center space needs on a long-term basis, additional increments need to be provided at nine locations, totaling approximately 575,400 square feet. Included in this figure are the requirements of 197,400 square feet for a new Chicago Federal Records Center and about 134,000 square feet of temperature and humidity controlled storage space at selected locations. The Federal Register Approximately $300,000 in printing costs was avoided by screening 30,000 manuscript pages from publication in the Federal Register during fiscal year 1968. The manuscripts, reviewed in connection with the Freedom of Information Act (5 U.S.C. 552), involved agency bulletins, directives, standards, specifications, manuals, handbooks, guides, and other technical rules, instructions, and procedures. Large printing costs were avoided either by incorporating the materials by reference or by reflecting them in the form of notices of availability of the information. Despite these efforts to keep the volume of administrative rules to be published from expanding too rapidly, the cumulative size of the daily Federal Register increased nearly seven percent during the year, reaching a total of 18,000 pages. In addition to the daily Federal Register, the publication program includes the Code of Federal Regulations, the “U.S. Statutes at Large” and the slip laws, the “U.S. Government Organization Manual,” the “Public Papers of the Presidents of the United States” and the “Weekly Compilation of Presidential Documents.” National Historical Publications Commission Upon recommendation by the Commission and from funds appropriated under Public Law 88-383 (44 U.S.C. 393) 39 grants, totaling $377,919 were made to 33 universities, historical societies and other nonprofit organizations to help support 19 letterpress and 14 microfilm publication projects. In addition, 8 four grants amounting to $194,320 were made from a fund given in 1964 by the Ford Foundation to support the editing and publication of the papers of Benjamin Franklin, Alexander Hamilton, Thomas Jefferson, and the Adams family. Ford Foundation funds also supported a “Survey of the Availability and Use of Primary Sources in the Graduate Teaching of History.” The survey has been completed and a report will be published in the coming year. A revised catalog of microfilm publications prepared with Commission aid describes the 72 titles available as of June 1968. 9 Arches frame the entrance court of the new Court of Claims and Court of Customs and Patent Appeals on Lafayette Square near the White House in Washington, D.C. Federal Buildings More than three-quarters of a million Federal workers depend upon the General Services Administration for the working space necessary for them to accomplish their tasks. GSA performs this vital function through its largest element, the Public Buildings Service, which acquires or constructs, assigns, operates, and maintains office space and related facilities. Space Utilization The inventory of GSA-controlled space required to efficiently house the Federal agencies which it serves totaled 208.6 million square feet at year-end. Some 761,000 employees of 66 Federal agencies worked in 83.7 million square feet of office space, 77.2 million square feet of storage space and 47.7 million square feet of special space such as court facilities, laboratories and computer centers. The continuing effort to provide good working space and its best possible utilization resulted in a reduction of 1.2 square feet in the average office space used per person, reducing the nationwide average to 133.4 square feet, compared to 134.6 the year before. 11 Building Operations A major part of GSA’s operating expenses and more than 55 percent of its employees are involved in the operation, maintenance, and management of 9,900 federally owned or leased locations. During fiscal 1968 this cost totaled over $380 million and involved a work force of some 21,000 people. The PBS Management Improvement and Cost Reduction Program realized savings in excess of $1.6 million through effective manpower utilization, utility conservation, and the adoption of improved methods and techniques. The competitive spirit generated by the “Best Group Contest” also encouraged efficient buildings management practices throughout the Nation. An additional governmentwide savings of $2.2 million was achieved through “Operation Cleanup,” an interagency campaign to implement the President’s directive to increase the utilization of excess property and redistribute stocks of supplies and equipment in lieu of new procurement. Eighteen more Federal employee occupational health units were established during the year, increasing the total of such units to 233 serving 200,000 persons. Approximately 20 of these facilities are operated by GSA and a number are administered by other Federal agencies, particularly the Public Health Service of the Department of Health, Education, and Welfare. GSA vending stand operations increased from 300 stands employing 340 blind persons serving 240,000 Federal employees in 1962 to more than 400 stands employing nearly 500 blind persons serving 320,000 Federal employees in 1968. This year’s increase of 28 new stands provided employment for 35 additional blind persons. Improvements made in GSA’s program for physical protection and accident and fire prevention included grouping of operations and addition of automatic detection devices. Building protection costs rose slightly as the result of an expanded workload and increased labor costs. However, fire loss and damage in GSA- 12 operated buildings remained low; total fire damage amounted to less than $50,000 for the year. GSA is responsible for the repair of approximately 5,000 Government-owned buildings (including those used predominantly by the Post Office Department) with a replacement value estimated at $4.5 billion. During the year, nearly $87.1 million was obligated for their repair and improvement to prevent deterioration and obsolescence. An additional $60.2 million of similar work was undertaken for other agencies on a reimbursable basis. Construction The Public Buildings Act of 1959 directs the Administrator of General Services to make a continuing investigation and survey of the public buildings needs of the Federal Government in order to carry out his duties under the act. During the past year, surveys were conducted for the first time in 15 communities and prior surveys in 45 other localities were updated. A total of 2,659 communities have been surveyed and over 2,000 of these have been resurveyed since this program began under the Public Buildings Purchase Contract Act of 1954. From the construction needs identified in these surveys, 46 new construction projects, with an estimated cost of $505 million, were recommended during the year to the Bureau of the Budget and the Congress and subsequently authorized by the Committees on Public Works. In addition, changes required in the scope of 10 previously authorized projects were approved by the committees. A total of 269 parcels of land throughout the country were acquired to provide sites for new buildings. Twelve of the parcels, valued at $2.4 million, were acquired in exchange for surplus Government-owned property. Rentals on building sites, leased out pending construction, returned $570,000 to the Treasury. The year’s construction program included 251 projects (estimated value $1.2 billion) under design or construction in every 327817 0-69—3 13 State, Puerto Rico, and the Virgin Islands. Fifty projects completed during the year at a total cost of $251.2 million added 6 million net assignable square feet of space. Among the projects completed were Federal office buildings at Des Moines, Iowa; Cleveland, Ohio; and Newark, N.J. (The substructure of a Federal office building was completed at Chicago, Ill.) Buildings to house Federal offices as well as Federal courts were completed at Spokane, Wash.; St. Paul, Minn.; and New York City. Other projects completed included: two buildings on Lafayette Square in Washington, D.C., an executive office building and a building for the courts; a courthouse in Las Vegas, Nev.; a printing plant at McLean, Va.; a border station at El Paso, Tex.; a gerontology laboratory at Baltimore, Md.; and a building for the National Bureau of Standards at Gaithersburg, Md. GSA’s policy of incorporating in Federal architecture the spirit and traditions of geographical areas was strengthened during the year by two developments. Increased design responsibility was delegated to the ten regional offices and the expanded and decentralized Public Advisory Panels on Architectural Services began to function. In addition to a national panel there are regional panels serving each regional office. Forty-two accomplished private architects or engineers serve on the panels. Studies comparing GSA construction procedures and standards with those of private industry were undertaken. Also initiated was a program of occupancy evaluation of Federal building construction 1 year after completion to provide feedback of “use” experience for future planning. Research and development activities included a joint study with the National Bureau of Standards of building systems innovations. Leasing To meet Federal space requirements which cannot be accommodated in federally owned space, the General Services Administration leases space from private sources. At the end of the year, 14 7,259 leases in effect provided 48.2 million square feet of assignable space including 32 million square feet of office space, 8.5 million square feet of storage space and 7.7 million square feet of special purpose space. The total cost of these leases was $193.4 million. 15 Mechanisation in the form of overhead and waist high conveyors speeds' packing tasks in a supply warehouse. Supply Operations and Management Governmentwide cost reduction efforts, in which the General Services Administration played a major role, were reflected in GSA supply programs during fiscal year 1968. Even though the scope of GSA’s responsibilities in this field expanded under the National Supply System concept, total Government procurement volume through the agency’s Federal Supply Service sources increased less than one-half of 1 percent compared to a 13.1 percent increase in the previous fiscal year. The economic benefits of GSA’s procurement and supply operations amounted to $422.3 million in fiscal 1968. Some $391.1 million of the 1968 economic benefits represented the difference between lower prices through GSA procurement channels compared to commercial wholesale prices. Another major benefit was $22 million saved through sharing arrangements for ADP equipment. Procurement The procurement volume was $2.05 billion, $8.3 million more than in the previous year. Three types of buying accounted for the total: • The largest source was Federal Supply Schedules, GSA-awarded term contracts, under which agencies ordered $1,178 billion worth of materials and services (5 7 percent of total procurement value.) • Next in size was GSA’s own buying for stores stock, amounting to $446.4 million (22 percent), to replenish the distribution system through which agency requests are filled. • Direct delivery buying accounted for $429 million (21 percent) under GSA contracts which require suppliers to deliver directly to the agencies. 17 GOVERNMENT PROCUREMENT THROUGH GSA FEDERAL SUPPLY SOURCES Fiscal Years Distribution GSA has automated supply operations in its 10 regional offices, utilizing a new family of computers that came into full operation on November 1, 1967. The computerized supply system automatically selects a day’s business and prepares bills of lading and shipping documents. It has provided steadily expanding benefits to GSA and the agencies which it serves—the 70,000 civilian delivery points and the whole span of military services for which GSA supply responsibilities are progressively broadening under the National Supply System. It is compatible with the automated military supply system. Shipment value from Federal Supply Service depots totaled $512.9 million during the year, a 2.6 percent decrease from the alltime high of $526.8 million in the previous year. Depots and similar installations occupied 20.8 million square feet of space, divided among 16 depots, nine annexes, seven export packing facilities, one fuel yard and one center for distribution of forms and specifications. 18 GSA also maintains a nationwide system of self-service stores through which agencies can replenish office stock at minimum costs rather than depend upon individual stockrooms. The system was started in 1958 and in its 10th anniversary year had grown to 45 centrally located stores with a volume of $15.8 million. The low overhead stores—similar to retail supermarkets—have an operating cost of $8.01 per $100 of sales compared to average agency stockroom operating costs of about $25 per $100 of sales. Specifications and Standards A new computer magnetic tape specification identifying definite requirements stimulated price competition among tape suppliers and resulted in annual purchase savings estimated at $8.6 million. The superior value of tape conforming to specification lessened the potential for errors and reduced computer time that agencies lost making corrections because of poor quality tape. The new specification, the fruit of extensive research and laboratory work, was pursued originally at the National Security Agency in cooperation with the Federal Supply Service. Rewarding results and the potential for even greater improvements and savings prompted the establishment of a GSA Magnetic Surfaces Laboratory at the National Bureau of Standards in Gaithersburg, Md. Personnel and equipment transferred from NS A formed the nucleus for the laboratory with National Bureau of Standards giving technical guidance and assistance. The development and updating of specifications and standards—as the computer tape example illustrates—is an area of major cost avoidance. GSA spent $4 million on this activity in 1968 and the estimated savings were $81.7 million, more than $20 for every dollar invested. A typical standardization study yielded savings estimated at $185,000 a year in procurement, storage, and issue costs through reducing the varieties of ladders procured by about 70 percent. The cutback reduced the varieties to a more logical sequence of lengths in wood and metal, ranging from a 3-foot stepladder to a 66-foot extension ladder. • Extension ladders were decreased from 89 to 32 varieties, down 64 percent. • Straight ladders from 55 to 19 varieties, down 65 percent. • Stepladders from 119 to 27 varieties, down 77 percent. 19 Quality Control GSA’s program of quality control and field contract administration is directed to assuring delivery on time of products conforming to specifications. Among achievements were these: • Inspections were performed on $759 million worth of procurement. • Manufacturers who have qualified under the Quality Assurance Program shipped $441 million worth of material without necessitating lot-by-lot inspections. • Preaward evaluations, engineering studies of the capacity of apparently successful bidders to meet delivery dates with products of requisite quality, increased 15.6 percent. GSA’s nine regional laboratories tested 44,400 supply samples to assure compliance with specifications. Supply Management A series of supply reassignments between the Department of Defense and GSA accelerated the growth of the National Supply System: • Governmentwide responsibility for 65 supply classes was transferred to GSA, making it the military’s source for 68,000 additional items. • Commercial vehicles, trucks and passenger carriers up to 10,000 pounds gross weight will be procured by GSA for the Department of Defense with a few minor exceptions. • Civilian agency requirements for fuel and electronics will be supported by the Defense Supply Agency. The transition will be completed in November 1969. The Interagency Committee for Improvement in Procurement and Management of Property, chaired by GSA, replaced an ad hoc cost reduction committee established in 1966. The 16 member agencies account for 90 percent of the Federal outlay for supplies. Supply management studies of four agencies resulted in savings of $807,000 during the year. 20 Supply support is being extended to State and local beneficiaries of Federal grants-in-aid, enabling them to obtain the economical benefits of GSA supply sources in using Federal funds. Automatic Data Processing The General Services Administration made significant progress during the year in its management of Automatic Data Processing resources for the Federal Government. GSA is responsible for the economic and efficient procurement of all Government ADP equipment. During the year, agencies leased and purchased $422 million of ADP equipment, supplies and services under Federal Supply Schedule contracts. In one procurement action alone it is estimated that more than $36 million will be saved as result of GSA negotiations and contractual actions. Another significant advance was the first major purchases through a $10 million ADP revolving fund established by the Congress. Three leased computer systems were bought for $1.9 million and the purchases will save the Government $1.8 million of the $3.7 million rental cost for the planned retention life of the equipment. Substantial progress also was made in the sharing of Government ADP equipment to promote its full utilization. Two more ADP Sharing Exchanges were established, bringing their total to 20—12 operated by GSA and eight by other agencies. Sharing arrangements, largely effected through the Exchanges, enabled agencies to avoid substantial costs at commercial rates for the work performed. Interagency transfers continued in productive use $52.8 million worth of Government-owned excess and $20 million worth of leased ADP equipment. State agencies received surplus equipment with a value of $10 million under the donation program. In cooperation with the Bureau of the Budget, GSA developed the ADP Management Information System and prepared 35 reports from data submitted by agencies on inventories, utilization, acquisition history, costs, and manpower. Greater economy and efficiency in governmentwide management of ADP resources are the goals for which the reports are designed. 21 Property Management and Disposal The General Services Administration operates programs for reutilization of excess real and personal property—to keep property already owned by the Government in productive use throughout its useful life. It disposes of surplus property—property which is no longer needed by the Government—by sale or donation as authorized by law, handling the majority of disposals for Federal agencies except for Department of Defense surplus personal property which is sold by the Defense Supply Agency. These programs are grouped in the General Services Administration under its Property Management and Disposal Service which also manages the Government stockpiles of strategic and critical materials and related inventories. Activities in these areas of GSA’s responsibilities during the year included the following: 23 Real Property Utilization In accordance with Government policy to use excess federally owned real property rather than acquire additional holdings, GSA during the year arranged for the transfer among agencies for further use of 118 properties which originally cost $199 million. Increasing use was made of exchange procedures to meet Federal needs. Fourteen exchanges of federally owned property, originally costing $1.7 million, were made to acquire properties needed by the Government. Disposal There were 381 sales transactions involving 327 surplus real properties—properties for which no further Federal use had developed. From these sales $77.9 million was realized and the net proceeds turned over to the Land and Water Conservation Fund while local economies benefitted from the return of the properties to tax rolls and by their further productive use. Prior to public sales offerings, local governmental units and nonprofit institutions are given the opportunity to acquire surplus property for various public purposes at discounts up to 100 percent. During the year a total of 127 properties having an original cost to the Government of $142 million were disposed of at discounts for the non-Federal public uses shown below: Health and education assignments..........................81 Park and recreation disposals.............................21 Federal highway transfers.................................12 Airport use................................................9 Historic monument......................................... 1 Wildlife conservation disposals............................3 Total 127 Task Force on Surplus Properties Early in the year, the President announced plans to develop a new community in Washington, D.C., on 335 acres of land which 24 was formerly the site of the National Training School. Simultaneously, the President appointed a task force, composed of the Attorney General, the Secretaries of the Departments of Defense and Housing and Urban Development and chaired by the Administrator of General Services, which surveyed Federal surplus properties in 48 cities during the year as potential sites where critical urban needs for housing, jobs, education, and recreation could be met. As the result of the surveys, four projects had been announced by the end of the fiscal year and 15 others were in the active planning or evaluation stages. The program calls for cooperative efforts by the Federal Government, local government and private enterprise in transforming suitable Federal properties into balanced new communities. When the survey phase of the program was completed, leadership of the task force passed to the Department of Housing and Urban Development because processes involved in working with local governmental units and private developers to bring new communities and housing projects into being are closely related to other activities of DHUD in administering the laws under which the projects will be developed. Personal Property Rehabilitation The useful life of personal property is extended by repair and rehabilitation. During the year more than 30 commodity groupings of personal property—some 1.4 million items with a replacement cost of $128 million—were reclaimed. This was a 28-percent increase over the value of such property reclaimed in the previous year. Small business concerns, many of them in surplus labor areas, play a major role in the rehabilitation of personal property, supplementing the services of the Federal Prison Industries and the National Industries for the Blind. Utilization Available excess personal property in fiscal year 1968 amounted to $3.1 billion at acquisition cost, $0.8 billion over fiscal 25 year 1967. Excess transferred for further Federal use reached $644.5 million at acquisition cost, an increase of about $ 1 million over the previous fiscal year. The quality of property available in 1968 continued to decline, and quantities of sought-after items such as production equipment, construction and roadbuilding equipment, and office furniture and equipment were limited. Increased demands created by the Vietnam war, the increased pace of the antipoverty programs and the governmentwide cost reduction effort spurred the use of excess personal property. Federal agencies, using initiative, found many uses for property other than originally intended purposes, especially in the scientific research and education areas. GSA, in conjunction with the Department of Defense and the Department of Health, Education, and Welfare, concluded a study of the feasibility of returning from overseas selected items of usable DOD personal property for further use by Federal agencies or eligible donees. A 1-year test involving property located at military bases in Germany began July 1, 1968. Donation Surplus personal property is donated for educational, public health, civil defense, and public airport purposes. During the year, property having an original acquisition cost of over $290 million was approved for donation, an increase from the fiscal 1967 level of $286 million. Over the past 5 years, surplus property valued at more than $1.8 billion has been donated for public purposes, contributing significantly to the Nation’s educational and health institutions, the principal recipients. Sales Proceeds from surplus personal property sales, including scrap material, totaled $10.7 million, as compared with $10.1 million during fiscal 1967. The generally poorer condition of property released for sale continued to reflect the impact of cost avoidance programs. Fewer and less valuable vehicles, for example, were sold due to the change in replacement standards requiring longer usage. 26 Stockpile Management Stockpiles of strategic and critical materials for use of the Nation in times of emergency are managed by GSA with policy direction from the Office of Emergency Preparedness. At year end, 47.1 million tons of stockpile materials were stored at 143 locations throughout the country: Number of Type of facility locations Military depots......................................36 GSA depots............................................30 Other Government-owned sites.........................16 Leased commercial sites..............................14 Industrial plant sites................................39 Commercial warehouses.................................8 Total .......................................143 Disposal The disposal of no longer needed quantities of various materials continued to be active with sales commitments made by GSA in fiscal year 1968 totaling $207.4 million, including sales of silver for the Treasury. The sales, in millions of dollars, were as follows: Commodity Government use Industrial use Total Silver 62.4 *62.4 Rubber . . . 26.1 26.1 Aluminum 16.5 16.5 Manganese, metallic .... . . . .2 15.1 15.3 Tin . . . 6.5 5.3 11.8 Lead . . . .2 10.1 10.3 Mercury . . . 1.3 8.8 10.1 Cobalt . . . .2 8.4 8.6 Zinc . . . 7.7 .5 8.2 Tungsten 7.8 7.8 Castor oil 6.5 6.5 Nickel . . . 3.6 .9 4.5 Other . . . .9 18.4 19.3 Total . . . 46.7 160.7 207.4 *Silver figure represents portion of proceeds deposited to miscellaneous receipts. 27 The sale under the disposal program of 684,000' tons of material—equivalent to about 14,000 carloads of freight—saved some $337,000 in yearly storage costs. Deactivation of several GSA depot activities with resultant storage savings—stemming from additional disposal shipments coupled to relocation and consolidation of remaining stocks—is planned for the coming year. A number of factors affected the disposal activity for fiscal year 1968. Quantities of copper, nickel, platinum, and magnesium sold in fiscal year 1966 and 1967 and required for the buildup of our defense forces in Vietnam, were depleted in fiscal year 1967. Emphasis was necessarily shifted to low dollar value commodities requiring more complex sales efforts. World production remained closer to demand and continued to cause tapering disposal rates for such materials as aluminum, tin, and zinc. The first session of the 90th Congress gave its support to the disposal program by processing legislative enactments authorizing the sale of bismuth, molybdenum, and rare earths with an estimated market value of about $32.5 million. Silver Sales The enactment of the Silver Certificate Act (Public Law 90-29) on June 24, 1967, gave the Secretary of the Treasury authority to release for sale the silver reserve requirements for silver certificates not expected to be presented for redemption and to discontinue the redemption of those certificates for silver after June 24, 1968. On July 14, 1967, the Treasury Department announced that it was ending its policy of selling silver at $1.29 an ounce and that the General Services Administration would carry out sales in the future. The sales program undertaken by GSA provided for weekly sealed-bid offerings of 2 million fine troy ounces of silver plus any quantity unsold in previous offerings. A portion of each offering was set aside for small business consumers of silver. From the time of the first such sale on August 4, 1967, to the end of fiscal year 1968 approximately 97.7 million ounces of silver were sold for $188.8 million. 28 The Silver Certificate Act also directed the transfer of not less than 165 million fine troy ounces to the national stockpile. Copper Production Expansion Program On November 28, 1967, GSA entered into a copper expansion program contract expected to increase U.S. production capacity by about 65,000 tons a year during an estimated period of 20 years. This was the only contract awarded following the evaluation of over 140 proposals. Under the contract, beginning in fiscal year 1969 GSA will advance a total of $83 million to be repaid by delivery of approximately 109,000 tons of wirebar copper at a price of 38 cents per pound. The primary objectives of the Copper Production Expansion Program have been for the most part achieved. Because new commitment authority now contained in the Defense Production Act, as amended, is limited to $100 million and the small balance of $17 million in available funds precludes any significant new production, the Office of Emergency Preparedness notified GSA to terminate the program. Acquisition and Upgrading Jewel bearings—the only stockpile commodity acquired for cash—continued to be produced under contract at the Government-owned facility at Rolla, N. Dak. A total of 200,060' troy ounces of palladium was acquired for the stockpile, and payment made with stockpile materials excess to the Government’s requirements. In addition, contracts were entered into for the upgrading of manganese ore to medium carbon ferromanganese and to silicomanganese, columbium concentrates to ferrocolumbium, and for the refining of subspecification palladium declared excess by other Government agencies to refined palladium meeting stockpile requirements. Payment for upgrading these materials is being made with excess stockpile materials. Civil Defense and Disaster Assistance Emergency supply support on behalf of the Departments of Defense and Health, Education, and Welfare was provided 29 through operation of 22 civil defense depots. Supplies of medical, chemical, biological, radiological, emergency, and fallout shelter equipment valued at $134.1 million were maintained ready for distribution. Some 5.5 million gross square feet of space was required for this task. To help alleviate major natural disaster situations caused by droughts and floods, substantial quantities of high velocity water pumps, water treatment equipment, 8-inch steel pipe, couplings, generators and related accessories were loaned to communities in the States of Texas, Massachusetts, Rhode Island, Arkansas, Illinois, Indiana, and Kansas. For flood, hurricane, snow storm and other emergency relief purposes such as State National Guard billeting, the civil defense depots issued large quantities of urgently needed drugs, and a total of 31,250 cots and 53,500 blankets to the States of Texas, Arizona, New Mexico, Utah, Nevada, Georgia, Illinois, Ohio, Tennessee, and the District of Columbia. At the request of the Defense Supply Agency the GSA civil defense depot at Bell, Calif., packed over 90,000 mattresses in specially fabricated containers and shipped them to Vietnam. In addition, over 5,000 tons of subsistence was also processed by the Bell facility for shipment to Vietnam. National Industrial Equipment Reserve A total of 9,362 machine tools and other industrial manufacturing equipment were maintained in readiness for immediate use to supply defense-support needs in time of national emergency. Some 5,425 of these tools were on loan to schools and an additional 19 tools were on lease to two defense-supporting industries. If needed, emergency production of 9,886 tools valued at $208 million was provided for under machine-tool order program contracts. Production under the contracts involved will not commence unless triggered by the Government. Some 242 items, including machine tools and construction equipment, were rehabilitated and shipped for the AID program. Total value for the items was $1,072,786. Of the 242 items, 62 30 valued at $274,846 were shipped in direct support of the Southeast Asia and Vietnam areas. The NIER program operations are located in three GSA-operated depots and three military cross-service depots, occupying 1,202,040 gross square feet. 31 The GSA Motor Pool at Cape Kennedy is equipped to transport both large and small groups working at the space center. Telecommunications, Public Utilities and Transportation The General Services Administration’s Transportation and Communications Service continued to expand its governmentwide services during the year. Telecommunications The two components of the Federal Telecommunications Service (FTS) —the voice network and the Advanced Record System (ARS)—were interconnected by 5.6 million miles of leased circuits in fiscal 1968. The ARS was increased to 1,446 individual stations, carrying 8.3 million minutes of record usage, while the voice network covered 433 major areas interconnected by 16,460 circuits which carried 56.5 million long-distance calls. The overall savings to the Government, compared to regular commercial costs for long distance calls, amounted to $79.5 million. Major switching machines increased from 40 to 48. After hours and weekend FTS service to commercial telephones was made available to agencies throughout the country through the FTS switchboard serving Washington, D.C. The Centrex operation in Washington, D.C., began service with three new installations. The installation servicing the Department of Housing and Urban Development will be the nucleus of a long-range plan which will ultimately consolidate all Government switchboards in the metropolitan exchange area and serve over 68,000 telephones. 33 GSA managed 281 telephone switchboards in 263 cities, providing local service to 235,900 telephones. Seven new consolidated switchboards began operations during the fiscal year. In August 1967 the GSA Data Communications Network was converted from a data card transceiver system to a high-speed magnetic tape data switching system utilizing a CDC 1700 computer located at the Net Control Station in Kansas City, Mo., and 11 magnetic tape terminals. In addition to FTS circuits, GSA managed 1.6 million miles of circuits for other civil agencies and State governments. Thirty States are now participating in this consolidated circuit procurement, utilizing a total of 129,000 miles. Savings of $22.5 million resulted from the circuit procurement for other civil agencies. Additional savings of $472,000 were realized by negotiating with telecommunications carriers and representing the interests of the Government as a user and consumer before regulatory bodies. Other Utility Services Assistance in the procurement, management, utilization, and conservation of electric, gas, steam, water, and sewerage services and facilities was rendered to 42 agencies and bureaus realizing savings amounting to $1.1 million. Areawide contracts were negotiated with seven utility suppliers eliminating the need for the preparation of many individual contracts. Cost reductions or more favorable conditions of service were obtained through 30 special or long-term contracts. Transportation Through negotiations for favorable rates, use of more economical and direct delivery shipping methods, and shipment consolidation, total savings in excess of $14 million were achieved. In response to agency requests for freight rates, routes, and other technical data, more than 500,000 units of traffic data were supplied, an increase of more than 50 percent over the previous year. Negotiations for carrier rate and service adjustments increased 16 percent to a total of 922. Contracts for transportation services, totaling 2,962, were almost doubled. Training in 34 traffic management principles and techniques continued, with 194 seminars held during the year. Unique handling, packaging, and shipping procedures were provided for items not generally included in the GSA supply system. During the past year shipments processed in this manner included 27,000 tons of zinc to India, 80,000 tons of fertilizer to Vietnam, 75,000 tons of rubber and 36,000 tons of copper from stockpiles to industrial and Government consignees, and 11,087 motor vehicles from producers to Federal agencies. The establishment in two GSA regions of carrier ticket offices in Federal buildings—replacing other methods of ticket procurement—showed annual economies of approximately $36,000. Motor Equipment Sixteen agencies requested motor equipment management studies at 20 locations and implementation of the study recommendations is expected to result in annual savings of $335,000. Over 2,025 Federal employees, representing 119 agency activities, participated in 32 defensive driver training technique courses. Meetings of the Interagency Motor Equipment Advisory Committees with representation from Government and industry were sponsored in eight cities. The Interagency Motor Pool System increased from 97 to 99, and two airport vehicle dispatch facilities were added. The use of dispatch vehicles and centralization of motor pool facilities was emphasized. The motor pool fleet consisted of 49,125 vehicles which operated a total of 552.4 million miles, at a cost of 8.27 cents per mile with overall savings to the Government of $24,028,-368 compared to costs prior to pooling. In addition savings of $891,000 resulted from arranging for cross-servicing among Federal agencies for motor vehicle fuel and oil. 35 Counseling Businessmen, Assisting the Public Business Service Centers Last year, 157,784 businessmen with inquiries about doing business with the Federal Government were helped by GSA’s 11 Business Service Centers located across the country. As part of their efforts to counsel businessmen and stimulate competition, the centers distributed 38,428 bid invitations and 395,370 procurement specifications to firms for bidding purposes, processed 10,770 bidders mailing list applications, and participated in 69 local business opportunity meetings. The centers—which serve as a vital link to the business community—received, safeguarded, and arranged for the public opening of 162,361 competitive bids. Activities directed at identifying and encouraging firms with a potential for doing business with GSA to participate in the agency’s procurement programs resulted in savings of $2.7 million on 832 contracts involving $23.7 million worth of goods and services. A 10.1 percent average cost reduction per contract resulted from the competition developed by seeking and counseling additional businessmen. Small Business Small businesses and companies in labor surplus and redevelopment areas were special targets for counseling. The business assistance program helped produce many GSA contracts for small businessmen. Small business received 49.6 percent of the total value of GSA prime contracts. 36 Federal Information Centers Five additional Federal Information Centers were established by the General Services Administration in the year, bringing to seven the total of these centers which have been opened under the governmentwide program for improving communications between Federal agencies and the public. The new centers were opened in centrally-located Federal buildings in Boston, Chicago, Denver, Fort Worth, and San Francisco, joining the two previously established in Atlanta and Kansas City. The centers provide basic answers to the public about Government programs and serve as a rapid and accurate referral service for those seeking more detailed information about specific Federal programs. At yearend, plans were in process for opening additional Federal Information Centers in New York City and Los Angeles. The existing centers were handling more than 80,000 inquiries a month at the end of the fiscal year. 37 Staff and Administrative Services Accounting Innovations The Accounting Interface System, which was tested and installed in the Washington, D.C., regional office during 1967, was installed in the four other accounting centers during the year. This system provides the supply distribution activity with uniform consolidated billing for warehouse issues, direct delivery, and retail store purchases. It utilizes the output of the ADP inventory management and control system as input to the accounting system without manual intervention. Efforts to reduce the cost of accounting operations continued. To illustrate, a voucher processed at a cost of $2.20 in 1956 was processed in 1968 at a cost of $1.19. With an annual volume of 1.9 million vouchers, a cost avoidance of $1.9 million is indicated. Administrative Support for Small Organizations Presidential commissions and other small organizations studying emergent or critical problems are provided administrative support services by GSA. Assistance in budgeting, accounting, payrolling, auditing, personnel, legal, security, and office services was given to 34 such organizations, avoiding a duplication of administrative staffs. 38 Planning-Programming-Budgeting Major emphasis is now being placed on scientific approaches to solutions of management and operating problems such as the optimum replacement criteria for sedans in GSA’s Interagency Motor Pool System. An earlier project developed a decision model which provides a means for developing optimum fleet size by each motor pool manager. The Planning-Programming-Budgeting System is closely correlated with its companion budgeting program, substantially reducing overlaps and enabling GSA’s internal 5-year plans to be used as a basis for budget submissions to the President and to the Congress. Management Intern Program The year’s recruitment of 21 management interns brought to 118 the total number of interns who have been appointed in the central and regional offices since July 1, 1963. Interns are evaluated and given career counseling during 12 months of planned, rotational assignments. Following this first year of internship, they are promoted and assigned to specific organizations on the basis of background, aptitudes, interests, and agency needs. Interagency Training Program GSA was one of the leading agencies to provide a major portion of all interagency training during fiscal year 1968. During the year, GSA conducted 56 separate courses and held 428 course offerings in which 23,534 Government employees participated. Cost Reduction Award The Annual Administrator’s Award, initiated in 1967, honors the three employees whose ideas, submitted through the suggestion program, achieved the year’s most significant cost reductions. The winning suggestions for fiscal year 1968 came from regional employees and resulted in the following first-year dollar savings : • $93,444 reduction in the cost of purchasing and replacing vacuum cleaner hose through the use of strong, light 39 weight plastic hoses and couplers which can be replaced by the cleaners. • $10,368 saved by combining two magnetic tape files and resequencing programs to minimize magnetic tape handling and record maintenance, thereby reducing program search time. • $9,912 saved by adopting a new method for unloading containers from railroad cars which eliminated the need for a mobile crane and operator. Employee-Management Cooperation Program Through the Employee Management Cooperation Program, employees participated significantly in formulating and implementing policies and procedures affecting the conditions of their employment. Between August 1966 and November 1967, the number of GSA employees covered by exclusive recognition of employee organization units increased 134 percent from 6,288 to 14,727, leading all major agencies except the Post Office Department. A total of 211 union locals were granted recognition as of June 30, 1968, including 140 exclusive, 53 formal, and 18 informal recognitions. On March 20, 1968, the Administrator granted formal recognition at the national level to the National Association of Government Employees. National formal recognition had previously been granted to the American Federation of Government Employees, the National Association of Post Office and General Service Maintenance Employees, and the National Federation of Federal Employees. Printing and Publications Activities GSA operated 26 reproduction plants in 20 cities which produced 673 million units of printed materials and other services resulting in sales of $7.1 million to GSA and other Federal 40 agencies, on a reimbursable basis. In addition, $3.2 million of commercial procurement was required to supplement in-plant production. Seven reproduction plants were operated by other Federal agencies under GSA’s centralized services program. Joining previously assigned plants in Jacksonville and Little Rock were plants at Boise, Cleveland, Des Moines, Pittsburgh, and St. Paul. Administrative Operations The first full year of operations under the mechanized personal property procedures produced many benefits including the reduction of manual recordkeeping. More efficient procedures were introduced for taking periodic physical inventories of furniture and equipment with a cost value of $17 million, and the timely replacement of wornout equipment was facilitated. A records cleanout campaign within GSA resulted in the destruction or transfer of 59,000 cubic feet of records and released for other use office space and filing equipment valued at $227,000. Federal Procurement Regulations The Federal Procurement Regulations System is prescribed by the Administrator of General Services under the Federal Property and Administrative Services Act of 1949, as amended. During the past year, efforts connected with issuance of the regulations reduced procurement costs by promoting the use of GSA supply sources by prime contractors and simplified and improved contract clauses used uniformly by all Government agencies. Board of Contract Appeals The Board received a total of 329 new appeals and rendered decisions which cleared 318 appeals from its docket. Significant increases occurred in input, output, and the amount of time expended in the hearing process. Work was completed on an index of the decisions rendered in calendar year 1967. 41 General Services Administration COMPARATIVE STATEMENT OF FINANCIAL CONDITION [In Millions] Tune 30, 1968 June 30, 1967 Increase or (-) Decrease Assets Cash $695. 6 $806. 6 -$111.0 Accounts receivable—Private debtors 36.0 58.0 -22.0 Accounts receivable—Government agencies . . 209.4 223. 1 -13. 7 Inventories 7, 319.0 7, 311. 7 7. 3 Prepayments and deferred items 1.6 1.9 -.3 Mortgages and bonds—Private debtors .... 172.0 174.5 -2.5 Investment in U.S. securities 1. 7 1.8 -. 1 Equipment 161.2 163.8 -2.6 Land and buildings 2, 206. 0 1, 858. 5 347.5 Construction in progress 1,023.8 1, 188.0 -164. 2 Surplus property 62.5 77.6 -15. 1 Total assets 11,888.8 11,865.5 23.3 Liabilities Accounts payable 394. 1 478. 7 -84.6 Advance payments to GSA 386.0 200.6 185.4 Trust and deposit liabilities 11.8 10.8 1.0 Deferred credits 126.0 136.4 -10.4 Liabilities for purchase—Contract program . . 21. 1 21.8 -. 7 Employees leave liability 25.2 23.2 2.0 Toted liabilities 964.2 871.5 92. 7 Investment U.S. Government Investment of U.S. Government 10, 924. 6 10, 994.0 -69.4 Total liabilities and investment U.S. Government 11,888.8 11,865.5 23. 3 42 SUMMARY OF OPERATIONS Fiscal year 1968 Fiscal year 1967 Federal Supply 1. Store sales (thousands of dollars) 594,489 599, 063 2. Nonstores sales (thousands of dollars) 211, 131 219,018 3. Stores line items shipped (thousands) 8, 098. 1 8, 478. 7 4. Number of supply distribution points 79 71 5. Total procurement (millions of dollars) 2, 054. 3 2, 046 Property Management and Disposal 1. Personal property (acquisition cost—millions of dollars): a. Transfers to other Federal agencies 644.5 643. 5 b. Donations 290. 1 285.9 c. Sales 62. 7 58.9 Total 997. 3 988. 3 2. Real property (acquisition cost—millions of dollars): a. Further utilization of Federal agencies 198.8 153.4 b. Other surplus disposals (donations, etc.) 209. 7 297. 3 c. Sales 375.5 343.5 Total 784.0 794.2 3. Defense materials: a. Strategic and critical materials in inventory (ac- quisition cost in millions of dollars) 6, 962. 0 6, 936. 3 b. Sales commitments (millions) 207.4 466.9 Public Buildings 1. New construction program: a. Design starts (millions of dollars) 152. 1 219.5 b. Design completions (millions of dollars) 201.5 126.4 c. Construction awards (millions of dollars) 86.8 186.6 d. Construction completions (millions of dollars) . . . 251.2 161. 7 2. Buildings management: a. Average net square feet managed (millions).... 195. 7 190.9 3. Repair and improvement: a. Repair and improvement appropriation: (1) Net square feet of R. & I. responsibility (millions) 181.9 177.6 (2) Obligations incurred (millions of dollars) . . 87. 1 68. 7 b. Reimbursable costs (millions of dollars) 60.2 42.4 43 SUMMARY OF OPERATIONS—Continued Fiscal year 1968 Fiscal year 1967 Transportation and Communications 1. Interagency motor pools: a. Number of pools in operation 99 97 b. Mileage (thousands) 552, 376 543, 674 c. Number of vehicles in pools (June 30) 52, 381 50, 148 National Archives and Records 1. Number of Federal records centers 14 14 2. Records in inventory (thousands cubic feet June 30) . 10, 435 9, 843 3. Inquiries handled (thousands) 6, 737 6, 148 44 U.S. GOVERNMENT PRINTING OFFICE: 1968 0—327-817 SAN OIEGO PUBLIC LIBRARY 3 1336 05725 9005