The fiscal year 1954 Air Force program provides for financing lead time on United States procurement of aircraft for approximately an average of 24 months. For United States production of electronics, financing lead time is provided for approximately an average of 22 months. For all United States procurement, Air Force MDAP through fiscal year 1954 provides average financing lead time of 17 months. For offshore aircraft procurement, financing lead time is provided for an average of 36 months. Overall, the offshore procurement financing lead time is approximately 25 months for Air Force MDA programs through fiscal year 1954. Approximately two-thirds of materiel value in Air Force MDA programs is for aircraft and related equipment.

DEPARTMENT OF THE NAVY, MDA PROGRAMS FOR MATERIEL Relation of programs and expenditures (lead time analysis) [In millions of dollars]

The process of developing and implementing the MDA program an average year contains 3 to 9 months of time required for careful administration.

Congress appropriates funds to the President, who has delegated authority to the Secretary of State or the Director for Mutual Security. He in turn allocates funds to the Secretary of Defense, who suballocates to the Departments of Army, Navy, and Air Force, which issue procurement directives to field agencies. Contracting officers whose duties and responsibilities are prescribed by law then carefully go about negotiating and letting the contracts.

After contracts are placed manufacturers frequently require time to get tooled up, and finally production begins, and 2 to 30 months later deliveries come off the line or are completed.

Thus, over the past 4 years many months have been consumed necessarily by administrative lead time.

Some illustrative examples of this time-consuming but administratively necessary process are attached.

The average time required for program approval and issuance of procurement directives, conducting negotiations, and writing and executing contracts for Navy MDAP aircraft in the United States is 7 months. This is somewhat shorter than for ships because of established producers and models, thus obviating the necessity for developing contractors and issuing invitations to bid. The average time from signed contract to settlement after delivery (lead time) is approximately 26 months.

The request for fiscal year 1954 is based on a somewhat shorter lead time, assuming an improvement in the future over the current performance. Attached is a typical example of a Navy MDAP aircraft contract.

Representative Navy MDAP Aircraft Contract

Date of initial procurement directive: January 19, 1951.
Date of contract: May 11, 1951.

Bureau of Aeronautics contract number 0: NoAs 51-863.

The average time required for program approval and issuance of procurement directives, developing data on prospective contractors, issuing invitations to bid, conducting negotiations, and writing and executing contracts on vessels in the United States is 9 months. The average time from signed contract to settlement after delivery (lead time) is 26.7 months on hull contracts for minesweeper contracts issued by Navy to United States shipyards. Contracts for machinery to go into these hulls have a lead time of approximately 24 months. The request for fiscal year 1954 is based upon a lead time average of 24 months for such vessels, assuming an improvement in the future over the actual current programs. The following are typical examples of contracts for the MDA minesweeper programs which are well under way.

Mr. BOYD CRAWFORD,

OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE,

Washington 25, June 9, 1953.

Staff Administrator, House Committee on Foreign Affairs,

Washington, D. C.

DEAR MR. CRAWFORD: The attached chart shows the effect of the Korean war on MDAP performance. This question was asked of me by Congressman Prouty following the regular hearings on June 5, 1953. The vertical bars are rough comparative indications of the total tonnages involved and are for Army only.

Sincerely yours,

JAMES G. ANDING,
Colonel, USA, Deputy.

(For G. C. Stewart, Major General, U. S. Army, Director, Office of Military Assistance.)

(The following table has been supplied for inclusion in the record in response to a request by Mr. Vorys:)

Mutual Security-Summary of nonDepartment of Defense expenditures

1 These are actually military assistance funds available to MSA and State Department for activities such as additional military production, AMP, and other activities as reflected under mutual defense materiel and training head.

2 Includes $11 million reported as a savings to the chairman of the Senate Foreign Relations and House Foreign Affairs Committees on May 27, 1953.

3 Supplemental estimate for UNICEF and UNTA are pending in amounts of $9,814,333 and $4,595,812, respectively, which are not reflected in this.

(The following has been submitted in reply to Mr. Fulton's inquiry on p. 953:)

MUTUAL DEFENSE FINANCING

HOW FISCAL 1954 FUNDS MAY BE SPENT FOR AGRICULTURE

An illustrative list of agricultural commodities that may be supplied to countries in Western Europe with fiscal 1954 funds totals approximately $192 million. It consists of bread grains, course grains, fats and oils, and cotton. Thus far during fiscal 1953 about $28 million worth of such items as sugar, meat, dairy products, dried beans, fertilizer, and miscellaneous fibers have been supplied, but none of these items are currently in the illustrative commodity list for fiscal 1954.