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The State Department provides administrative support services overseas; such as accounting and financial reporting, disbursing and payrolling; custom clearance and baggage handling; communication services; recruitment of foreign nations and wage administration; purchasing and property management services; office and residential leasing; security inspection and guard services. The increased costs result from the increased Volunteer strength overseas and the related administrative support requirements. These costs are subject to periodic negotiation with the State Department.

8. Placement Tests

1966. 1967

$82,000 82, 000

The Civil Service Commission administers placement tests to applicants for Volunteer service and scores the tests. During 1965, this cost was $86,000. The installation by the CSC of an automated system for scoring placement tests has reduced costs for FY 1966 and 1967.

9. Computer Services

1966_ 1967_

$174,000 174,000

Computer service is provided by the Agency for International Development which also establishes the amounts of reimbursement for this service. The computer data is required in the selection process and is based on information contained in the thousands of applications received by the Peace Corps. The Peace Corps is studying the potential economies and requirements for the acquisition of "in-house" computer services.

1966.
1967-----

10. Vehicle maintenance overseas

$80,000 80,000

The estimate proivdes for contractual repair and maintenance of vehicles operated by the overseas staff. In many overseas locations, facilities for preventative maintenance service is very limited or nonexistent. Although only "jeep" type vehicles are purchased, the rugged usage and lack of adequate maintenance facilities results in high maintenance and repair costs. The estimate contemplates contractual maintenance and repair for an average of 270 administrative vehicles in 1966 and 1967 at a cost of about $300 per "vehicle year."

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Included herein are contractual custodial and janitorial services overseas; language instruction to staff; newspaper clipping services; photographic, engraving and laminating services; repair and maintenance of office machines and furniture; repair of residential furniture overseas; drayage services; key punch service; entertainment and representation expenses, and storage of personal effects for employees assigned overseas.

12. Miscellaneous services of other Government agencies

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The estimate provides for the distribution and handout of recruiting material by post offices, translation services by State Department, supply services by West Africa Central Associated Supply Center, State Department, health services by PHS, language instruction and testing, and other services by State Department.

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For provision of office supplies; automotive parts and vehicle operating supplies; materials for repair of offices and residences overseas; janitorial supplies; technical publications and periodicals; heating of offices and residences overseas, etc. The increase is related to the additional overseas staff and Volunteer strength in FY 1967.

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Funds are requested to provide for replacement of furniture and equipment, as well as additional furniture and equipment required by the increase in employment, as follows:

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(a) Office furniture and equipment.-The Peace Corps is deliberately restricting the total funds for these purposes to absolute minimums and in FY 1967 will administratively reduce the funds applicable to replacement.

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(b) Residential furnishings.-The funds requested in 1967 for residential furnishings are restricted, and it is intended to control the obligations. accordingly.

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(c) Other equipment.—Included herein are funds for light transportation equipment overseas such as bicycles and boats; and nonexpendable items such as metal shelving for open files, and mail sorting racks.

15. Vehicles overseas

1966. 1967.

$300,000 30, 000

The estimate contemplates purchase of 100 vehicles in 1966 and 10 in 1967 to replace vehicles beyond economical repair and maintenance. Vehicles used overseas are "jeep" type, for which the general criteria for replacement are 30,000 miles or three years of operation. It is anticipated that an average of 270 administrative vehicles will be in operation during 1966 and 1967.

The ratio of full time staff overseas to administrative vehicles is estimated at 1.6 to 1 in 1967, as compared to 1.4 to 1 for 1966 and 1965.

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Provides for operational travel and transportation expenses overseas; and Washington travel in connection with recruitment and selection activities, direction of programs, and normal management functions.

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WEDNESDAY, MARCH 30, 1966.

MILITARY ASSISTANCE

WITNESSES

HON. ROBERT S. MCNAMARA, SECRETARY OF DEFENSE

GEN. EARLE G. WHEELER, U.S. ARMY, CHAIRMAN OF THE JOINT CHIEFS OF STAFF

CAPT. LOUIS L. MEIER, JR., U.S. NAVY, MILITARY ASSISTANT TO THE CHAIRMAN, JOINT CHIEFS OF STAFF

LAWRENCE J. SHAW, MILITARY ASSISTANCE DIVISION, AGENCY FOR INTERNATIONAL DEVELOPMENT

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1 Reimbursements from non-Federal sources are derived from repayments of credit extended in connection with sale of defense articles and services to foreign countries (22 U.S.C. 2316).

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