[Ships and Small Business]
[From the U.S. Government Publishing Office, www.gpo.gov]

SHIPS
AND
SMALL BUSINESS
Joint Statement by ADMIRAL EMORY S. LAND Chairman of the United States Maritime Commission
and
BRIGADIER GENERAL ROBERT W. JOHNSON
Chairman of the Smaller War Plants Corporation, and Vice Chairman of the War Production Board
(When used in this memorandum the “Commission” shall mean the United States Maritime Commission, and the “Corporation” shall mean the Smaller War Plants Corporation.)
This statement and the information contained in this pamphlet are intended to advise the personnel of the Commission and of the Corporation as to the manner in which they shall work together to carry out the provisions of the Smaller War Plants Act, Public Law No. 603 (77th Congress). Details regarding the provisions of the act itself and of applicable legal provisions have been omitted since it is assumed all personnel engaged in this work are familiar with the contents.
The Commission, under various acts of Congress, is charged, among other things, with the duty of building ships. These ships are built in private and government owned shipyards under prime contracts entered into by the Commission. Depending upon the type of contract the construction and outfitting materials may be furnished to the shipyard by the Commission, or may be purchased by the shipyard directly.
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All shipyards are responsible for the procurement of operating supplies and storeroom items. The Commission maintains its own procurement office in Washington and at least one procurement office in the field. Each of the private shipyards maintains its own procurement office.
The Corporation is assigned many specific duties under Public Law No. 603 (77th Congress) , and the powers given it all support the principal purpose to mobilize small business and to see that it is used effectively and efficiently in production for war and essential civilian purposes.
The duties of carrying out the provisions of the Smaller War Plants Act rest on all governmental agencies and administrators. In performing the particular duties assigned to them, the Commission and the Corporation have agreed upon the following procedure in carrying out the purposes of the Smaller War Plants Act. The joint purpose and action called for in this regard are summarized as follows:
The Commission and the Corporation will use their best efforts, jointly and severally, to cause smaller plants to be utilized in the production of articles, equipment, supplies and material needed in the construction of vessels in the Commission’s program to the extent intended by Public Law No. 603 (77th Congress) and consistent with the delivery requirements of the Commission s production schedule.
The Commission and the Corporation agree to do and perform all acts and functions necessary to achieve the purpose above expressed, and particularly to do and perform the following acts and functions:
1.	The Commission will set up a Small Business Section within each of its procurement offices and in each of the four Regional Maritime Construction Offices, and will use its best efforts to establish a Small Business Section
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within each of the purchasing offices of private shipyards having contracts with the Commission. These Small Business Sections will be charged solely with the responsibility of utilizing the facilities of small war plants, and to give special attention to recommendations of the Corporation in the production of articles, equipment, supplies and material required by the Commission and its subcontracting shipyards.
2.	The Corporation will designate Small War Plant Applicants which it deems suitable for the production of items procured by the Commission, will inventory, and appraise their facilities and production abilities, and will recommend such plants to the Commission.
3.	The Corporation will state the general category in which the plant is found (that is, metal working, wood working, machining, etc., to as complete a definition as practicable) and the types of products which the recommended Small War Plant Applicant has made. Thereafter, on request by the Commission or by any Small Business Section, it will make available all information deemed necessary by the Commission for the proper consideration of the production facilities of any recommended Small War Plant Applicant.
(NOTE: The recommendation of any plant is not to be construed as a formal certification by the Corporation under Paragraph (6) of Section 2 of the Smaller War Plants Act. The intention of the foregoing procedure is that the Small Business Sèctions and the personnel of the Commission shall have full opportunity, through the personnel of the Corporation and through personal contact with the applicant, where possible, and by calling for further information from the Corporation if necessary, to determine whether the facilities of any plant are capable of production of any particular Commission item. If the information obtained upon request by the Commission is not sufficient for
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a proper determination of the capabilities of the plant’s facilities, the Commission shall not be expected to award the production of the procurement item to such plant, — unless the Corporation shall formally certify the applicant plant under Paragraph (6) Section 2 of the Act.)
4.	The Corporation, through Small Business Sections will persistently assist each Small War Plant Applicant to determine for itself the Commission items particularly suitable for production by its facilities.
5.	The Commission will make every reasonable effort to place contracts with recommended Small War Plant Applicants to bring them into the stream of Commission procurement, and will give them further consideration when additional quantities of the type of material they manufacture are required.
6.	The Commission, as between large plants and recommended Small War Plant Applicants who can produce a specified article, will recognize the fact that the per unit cost to a small plant may be greater than the per unit cost to a large plant, and that in order to mobilize the production capacity of all plants it may be necessary to pay a higher per unit price to the small plant.
7.	The Commission, in arranging for the procurement of materials, whenever practicable, will set aside for production by small plants such items for procurement as it may deem suitable for production by such plants. The Commission will furnish to the Corporation any available information on current or planned procurement programs. The Corporation shall have an opportunity to confer with representatives of the Commission at any time, through the Small Business Sections, to assure that Small War Plant Applicants are offered an opportunity to quote whenever practicable.
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8.	The Commission will cause requests for quotations and specifications for articles, equipment, supplies and materials purchased to be divided, so far as is practical, in quantities, sizes, etc., that will be within the production facilities of Small War Plant Applicants.
(a) In all possible cases the drawings and specifications developed by current suppliers for Maritime procurement program shall be made available at not more than a aiominal charge to Small War Plant Applicants, subject to such restrictions as may be necessary to protect the proprietary rights of the owners thereof in the Post War Period.
9.	Where specification changes appear necessary in order to bring Small War Plant Applicants effectively into the procurement program of the ‘Commission, the Corporation will propose such changes to the Commission and, upon approval, suitable directives will be issued to accomplish the desired purpose. .
10.	The Commission will cause reports to be made to the Corporation on a monthly basis showing the nature and amount of business placed with recommended Small War Plant Applicants by name. The Commission, in so far as is practicable, will make available to the Corporation information regarding the status of the procurement programs of the various shipbuilding companies, which information shall be treated on an entirely confidential basis and will be used for the purpose of allowing the Corporation to recommend Small War Plant Applicants for such contracts.
There follows hereafter:
(a)	a chart showing the relative places and points of contact of the personnel of the Commission, and of the Corporation, assigned to this work,
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(b)	a list of definitions of the terms used in this joint effort and a description of the personnel assigned to this work.
All personnel assigned to this work are urged to study the contents of this booklet, and to keep it with them at all times, to be familiar with the methods intended to carry out the assignment.
It is proposed to decentralize the effort as much as possible, because the smaller plants are located throughout the country and the procurement offices are widely scattered along the coasts and Great Lakes.
Of necessity, a part of the work will be done in Washington where the principal procurement office of the Commission is located, but it is planned that, as the procedure becomes better known, it will be possible, more and more, to solve the problems of smaller plants on the industrial front where they are located.
The following brief summary is given to show the extent of the respective Field and Washington operations in the initial stages:
Decentralized Operations in Field
The agents of the Corporation in the field will interview the Small War Plant Applicants and determine what assistance is needed in the way of organization, financing, machine tools, assistance in obtaining material, or other assistance authorized by the Small War Plants Act. When the need of the applicant is for war contracts, the Corporation will recommend to the Field Coordinator located in the Corporation Regional Office and then, through him, to the Small Business Sections of suitable procurement offices. In cases where recommended Small War Plant Applicants are introduced directly to the Small Business Sections located in the shipyards, full information as to the introduction and recom
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mendation will be forwarded to the Field Coordinator.
When the applicant firm is so introduced and recommended to a Small Business Section, it then becomes a matter of responsibility for this Section to furnish every assistance and render such service as may be possible in allowing the smaller plant to make quotations and be considered in the award for items for which he has facilities to manufacture. A Small Business Section may call for more information about any plant, either from the applicant or from the Corporation and it will be furnished.
In cases where the Small Business Section is unable to place a Small War Plant Applicant in line for quoting for contracts, his name shall be reported to the Field Coordinator for the Commission, who shall make an effort to find available work for the applicant within other procurement offices. When work cannot be located for the firm by this means, the Corporation agent shall reassume the responsibility for placing the applicant in touch with other sources of governmental contracts until the Small War Plant Applicant has either been mobilized for war production or proven incapable of production of any Commission items.
Centralized Operations in Washington
The Special Maritime Staff of the Corporation and the policy-making personnel of the Commission in Washington will maintain constant contact in order to:
(a)	discuss and formulate policies;
(b)	review procurement programs;
(c)	assure that all Maritime procurement items are so divided, where practicable, as to become susceptible of production by smaller plants;
(d)	make recommendations and render assistance to the Commission to the end
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that items suitable for production by smaller plants, where practicable, are reserved for production by smaller plants.
(e)	review the progress of the Commission toward extended subcontracting to Small War Plant Applicants.
Definitions
The following definitions will be useful in clarifying the terms used in the foregoing joint statement:
Small War Plant Applicant—A smaller manufacturing firm whose facilities are currently listed with the Smaller War Plants Corporation, and who has open capacity for war production or essential civilian production, needing (a) production orders, (b) facilities, (c) priorities or technical assistance, (d) or other aids as authorized or directed by the Smaller War Plants Act Upon direction by the Smaller War Plants Corporation to the attention of a Small Business Section, it becomes a recommended Small War Plant Applicant.
Small Business Section—Personnel assigned (or caused to be assigned) by the Commission to its purchasing offices or to the purchasing offices of its prime contractors; who are (a) fully instructed in their functions under the Act and joint statement, and (b) cloaked with the necessary authority to carry out the will of Congress as expressed in the Smaller War Plants Act, in full cooperation „with the Smaller War Plants Corporation.
Field Coordinator of the Commission—A competent officer of the Commission located in each of the Regional Offices of the Smaller War Plants Corporation, who has (or is authorized to secure) all available information regarding cur
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rent and planned procurements in order to assist recommended Small War Plant Applicants (a) to determine for themselves the Commission procurement items suitable for production by their facilities, and (b) to aid them in making responsive quotations.
Regional Head, Small Business Section, Regional Offices for Construction of Commission— The director, located in each of the four Regional Offices for Construction of the Commission, who supervises the activities of Field Coordinators in his region, and who reports to the Chief, Small Business Section of the Commission at Washington.
Rear Admiral Emory S. Land CHAIRMAN, UNITED STATES MARITIME COMMISSION.
Brig. Gen. Robert W. Johnson CHAIRMAN, SMALLER WAR PLANTS CORPORATION VICE CHAIRMAN, WAR PRODUCTION BOARD.
July 30, 1943.
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Definitions and Outlines
Definitions follow pertaining to the Corporation personnel, and brief outlines of their functions under the foregoing joint statement.
Maritime Staff
The personnel assigned by the Chairman of the Smaller War Plants Corporation (a) to develop the plans and program as outlined in the booklet, (b) to direct-the execution of the agreed plans, and (c) to integrate such plans within the structure and personnel of the Smaller War Plants Corporation.
The Maritime Staff of the Corporation consists of:
(a)	The Director, Deputy Director, and Staff Assistants located in Washington, D. C.
(b)	Four Field Staff Assistants, one of whom is assigned to each of the following Commission Regions, including identified Corporation Regions:
Atlantic Coast Region (Philadelphia) Including Regions 1, 2, 3 and parts of Region 4 (North Carolina, South Carolina, and Georgia of Region 4).
Gulf Coast Region (New Orleans) Including Region 8 and the remaining states of Region 4.
Pacific Coast Region (Oakland) Including Regions 9, 10, 13 and 14. Great Lakes Region (Chicago) Including Regions 5, 6, 7, 11 and 12.
These four Field Staff Assistants will travel and operate in their territories under procedures and plans prescribed by the Maritime Staff, Smaller War Plants Corporation, Washington, D. C.
Regional Maritime Supervisors
The personnel designated by the Regional Directors of the Smaller War Plants Corpora
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tion, with the. concurrence of the Maritime Staff, to accept regional responsibility with regard to implementing the plan.
One such Regional Maritime Supervisor is to be appointed for each of the fourteen Regional Offices. (The Maritime Supervisor for Region 8, Dallas, will be located in the District Office of the Corporation at New Orleans to cooperate with the Maritime Regional Office for Construction having headquarters in that city. He will have an assistant located in the Regional Office at Dallas.)
The Regional Maritime Supervisors are responsible to the Regional Director of the Corporation concerned and will cooperate with their respective Maritime Staff Assistants toward accomplishing the desired ends.
Smaller War Plants Corporation Agents
Personnel within the respective Smaller War Plants Corporation Regions designated by the Regional Director, with the concurrence of the Regional Maritime Supervisor, and responsible to him for Small War Plant Applicants.
These Agents will recommend Small War Plant Applicants to the Maritime Field Coordinator and to Small Business Sections in the Procurement Offices as set forth in the program. The Agent will be responsible for obtaining information from which a determination will be made as to whether an applicant is or is not a recommended Small War Plant Applicant as defined. He will secure a signed statement from the management of the applicant plant setting forth the conditions described in Paragraphs 2 and 3 of the booklet, “Ships and Small Business,” being careful to provide full and complete information concerning the production ability and open capacity of each particular applicant, and checking to see that forms if 1546 and SWPC #2 are on file.
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The Smaller War Plants Corporation Agent will make a record of the information so obtained and forward it to the Regional Maritime Supervisor so that it may be entered on the records of the Corporation and listed as a recommended Small War Plant Applicant.
After recommendation, the Smaller War Plants Corporation Agent shall follow up to assure that the facilities of the recommended applicant are utilized. If the Maritime Field Coordinator and/or the Small Business Section, for stated reasons, report that the facilities of a given applicant cannot be used, the Smaller War Plants Corporation Agent shall so report to the Maritime Regional Supervisor, and he will then recommend the applicant to other Small Business Sections.
U. S. GOVERNMENT PRINTING OFFICE: 1943
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