;ess of real
us real esta
30,000 of tl
t its propos^
t over-all sa
:vcd in foo
over the fa
eld in stora|
sns not pn
itice of int'
: costly, m(
mts in op*
:1 its stoi
>w in use.
3 in the
■s of sup
ut tin- «t
s not inc
Povernment-owned property becomes "excess" alter the
Ptcy in possession no longer needs it. and "surplus" after
(availability has been made known to other agencies and
'"ii- <il them desires it.
'In- federal government spends billions of dollars yearly
new supplies and at tin- same time retires old, worn-
or unneeded items. Estimated expenditures for fiscal
f were $23,900,000,000 lor the- Defense Department,
$3,400,000,000 for all civilian agencies. Expenditures
Jttch huge sums produce corresponding quantities of
tl">s anil surplus property. The government has moun-
r"nis accumulations of property which it would not have
''ght if it had had a good inventory system. It is esti-
('il that, with proper inventory control and more real-
( stock levels, from Sit) billion to $25 billion of supplies
1 in government warehouses could be eliminated.
..'any items are sold as scrap, destroyed and abandoned.
'ii valuable items are sold in mixed lots with little
pd lor their possible commercial use.
"th the Commission and the task force found a reluct-
on the part of government agencies to accept excess
'''<■ then- was a slight variation of specification from
''rials to he- bought. Material transferred by the agen-
Can be held unused lor years at a substantial cost to
Bovernment for warehousing, distribution, inventory,
■ Inspection, only to be- designated surplus again with a
chain of resulting costs.
WAREHOUSING AND STORAGE
There is a great excess of storage- space, duplication, and
waste, particularly in the Department of Defense.
The task force which studied this subject estimated
that the aggregate savings possible through business-like
management of this federal activity would be $288 million
It was noted that excess facilities were not systematically reported and that there apparently was no effective
exchange of information on space or requirements between
storage personnel and real property personnel in the three
military services, or at the Department of Defense level.
In its report on Warehousing and Storage, or "Depot
Utilization, the Hoover Commission made twelve recom-
nie-ndations for integrated control and for uniform methods, operating procedures, terminology, catalog nomenclature, reporting systems, and other constructive action.
BUSINESS ORGANIZATION OF THE DEPARTMENT
In dealing with this problem, the Hoover Commission
utilized a different procedure from its customary one of
separate task forces on one subject and separate Commission reports.
In this case the Commission utilized a large "Committee
on Business Organization of the Department of Defense,
in lieu of a distinct task force. In effect, the committee
s Forum News, May, 1956