The medical-facilities category, representing 1.9 percent of the total, includes the construction of new, or additions to, 14 hospitals, 12 infirmaries, and 21 dental clinics.

FAMILY HOUSING

Inclusion of family housing in this program, 11.7 percent of the total, constitutes a milestone of tremendous importance to the Air Force. Not since 1949 have family quarters been provided in quantity at domestic bases within the annual military construction program. Last year, the Air Force's share of housing funded under Public Law 663, 83d Congress, was 2,252 units; and funds requested this year will be used to build the 4,107 authorized units not covered by current funding. Fiscal year 1956 requirements for 15,000 units were assembled for inclusion in separate legislation, but only 8,118 units are included in the authorization bill and in the appropriations request under consideration today by this committee. This makes 12,225 units for which appropriations are being requested this year in the amount of $168,236,000; all but 60 units are on continental United States bases as indicated on the chart.

CHART No. 4

Family housing in Air Force-Fiscal year 1956 military construction appropriation

In addition to the new units, a small amount ($186,000) is included for the improvement of existing family-housing units.

The twelve-thousand-odd units provided in this request were carefully selected in order to provide at least minimum coverage to some of the new bases coming into the program, especially where their need could not be met under provisions of other legislation. Over 70 percent of the units are allocated to the fighting commands, i. e., Strategic Air Command, Air Defense Command, and Tactical Air Command.

Mention is warranted of continuing urgent requirements to house Air Force families in the overseas garrisons.

REAL ESTATE

In the 1956 military-construction program the Air Force proposes to continue realistic real-estate land-acquisition policies. 113,338 acres, exclusive of those required for aircraft and warning sites, will cost $8,834,000 in the continental United States. These land interests are required to develop two new air-defense installations, extend runways at existing installations, expand operational and troop-housing facilities, and acquire and develop ammunition-storage facilities. In addition, interests in 404 acres will be acquired for aircraft and warning sites at a total cost of $214,000. The chart summarizes the land items in this program.

1 Excludes land for aircraft and warning sites; fee purchase, 205 acres, at $63,000; right-of-way easement, 199 acres, at $151,000.

One of the important items in this program is 20,125 acres of clearance easements, at a cost of $1,485,000, to protect approach zones to existing airbases where large investments in runways and facilities have been made. This is the second annual increment of a long-range phased program essential to protect Air Force bases from needless obsolescence due to community buildups around them.

The acquisition of land interests at overseas bases consists principally of the purchase of land for airfield expansion at Ramey AFB in Puerto Rico and extinguishing outstanding interests in 2,472,800 acres of public domain land in Alaska, at a cost of $50,000. Concurrently, we plan to return to the public domain approximately 807,890 acres now under Air Force jurisdiction. The land items in this program are based on the best estimates which could be obtained in advance of appropriation and represent a continuing improvement in the accuracy of our estimates over previous years.

While the total cost of real estate in this program is less than 1 percent of the total amount involved, these real-estate items are especially urgent since they are required either to provide a place for new construction or for the protection of the Government's present investment in facilities.

CONSTRUCTION BY AVIATION ENGINEER FORCE

As part of the continuing training program of troops in the aviation engineer force, it is planned to construct designated items in the fiscal year 1956 construction program with aviation engineer units. The projects selected for construction in this manner are consistent with the type of training needed, and on which the required beneficial occupancy date is within the capability of the constructing unit to complete the work. For example, the extension of the runway at MacDill AFB is a type of project which will be considered for accomplishment by an aviation engineer unit.

Accomplishment of selected projects by these means will, in addition to providing essential unit training and constructive employment of the troop units, result in a dollar savings in appropriations granted for the projects. Amounts appropriated will be used only to the extent necessary for design and procurement of materials. In addition to military construction projects, it is planned to schedule selected projects, accomplished with maintenance and operations appropriations, into the unit training programs. The magnitude of the work to be performed by the aviation engineers is, of course, dependent both upon the availability of the units at the time design and engineering have been completed, and upon the extent to which the training program will be then controlled by the Air Force. Should criticism arise of the use of troops for projects that otherwise might be accomplished by contract, each project withheld from public competition will be fully justified by the benefit to be derived from the training of troops on necessary and usable projects similar to those which they will be called upon to do in time of war.

PROJECT COMPOSITION

This year, the Air Force has adopted a revised procedure for development and presentation of the construction items in the program. Under this procedure, each project shown in the justification book before you represents a consolidation of related construction items required to provide a completely usable facility, rather than listing each minor component as a separate line item as in former programs. For example, a runway now includes necessary supporting or component items such as connecting taxiways, warmup pads, and lighting. A hangar project includes, in addition to the hangar itself, the access apron, interior shops, connecting utilities, and access streets. The single exception to the consolidation of related items is land, where each tract is identified in the justification book. A complete breakout of the supporting or component items is available to the committee in the backup data for the justification book. (Separate volume.)

This programing procedure, we think, provides more complete analysis of facility requirements, aids in development of more accurate cost data, and insures inclusion in the program of all features needed for the construction of a completely usable facility.

COST ESTIMATES

As previously directed by the Congress, the various projects listed herein are supported by individual cost estimates compiled jointly in the field by the construction agencies and the using commands. They

reflect construction factors and operational requirements as then known. It is emphasized that the as-of date for most of these estimates is approximately September 1, 1954. Some of them may reflect the exceptionally favorable construction cost factors realized last year, and thus be inadequate to cover the substantial cost increases already encountered and/or expected when these projects are bid some 12 to 15 months later. Leeway to adjust actual bid costs is necessary to an effective handling of this situation.

STATUS OF ADVANCE PLANNING

Within the past 18 months, the Air Force has completed actions to advance the readiness date of design for new programs by a year over that which existed in the fiscal year 1954 and prior year's programs. Late initiation of design on the fiscal year 1954 program precluded placement of contracts for these projects until nearly a year following enactment of authorizing legislation. Five months reduction in this time lag is shown in the fiscal year 1955 program. Initiation of design for the fiscal year 1956 program last summer has permitted the cost estimates in this program to be based upon fairly dependable field design and will allow mass placement of work under contract from completed drawings in late summer and fall of this year. This improved timing will give base commanders usable facilities more nearly in response to their needs than was previously possible. Advance planning funds are required to maintain this improved position and are included in the appropriation request under consideration today.

CONSTRUCTION CAPABILITY

In confirmation of Secretary Garlock's earlier remarks, I am pleased to report that very substantial progress has been made during the past fiscal year toward reducing the long lead time between appropriation of military construction funds and their subsequent utilization. This matter has been of major concern to the Air Force and to this committee in past years. The key to this problem (if there be only one) has been found in (1) initiation of project design early in the programing cycle and (2) strict program management in the final design and award stages to insure maximum use of available funds.

As a result of these and other actions outlined to the committee last year, such as development of firm requirements, completion of accurate base inventories, preparation of master plans, utilization of field cost estimates and early identification of real estate requirements, a record volume of Air Force projects was placed under contract in fiscal year 1955. With June awards of $200 million firmly added to the actual performance of more than $150 million per month for the preceding 3 months, not less than $1,350 million of Air Force projects will be placed under contract this fiscal year. As noted on the accompanying chart, this rate of $113 million per month exceeds the fiscal year 1954 monthly performance of $79 million by 43 percent.

As a consequence of this high utilization of funds, the carryover of money available for new contracts into the next fiscal year is the lowest since the current base buildup of the Air Force was initiated. This situation is also shown on the accompanying chart. The carryover of $300 million into fiscal year 1956 contrasts with $1,020 million,

$1,719 million, and $1,745 million for the years 1955, 1954, and 1953, respectively; it is insufficient to sustain field operations until new appropriations can be made available. This $300 million is firmly committed to fiscal year 1955 and prior years projects now in the hands of our construction agencies, and is in no sense an unused balance. It is important to recognize the distinction between the $300 million available for new contracts after July 1, 1955, and the companion figure of approximately $550 million representing the unobligated balance of funds at the close of the current fiscal year. This difference of $200 million is reserved in the hands of the field contracting officers to cover Government costs and contingencies on projects during the life of the contract. These funds are obligated piecemeal on a monthly basis and entirely liquidated with final payment to the contractor. In other words, if no new contracts were signed, $200 million additional would be fiscally obligated over the next 12 to 18 months to complete projects currently in work, and funds in this amount are now in the hands of Air Force construction agencies.

The good management practices developed during the past year are being refined and extended into fiscal year 1956. The lead time in design has been further advanced, so that the heavy volume of contract awards can be scheduled during the second and third fiscal quarters when competition for work is usually keen., Winter bidding allows the full season of 1956 for construction. (See rainbow chart.) Tools of management have also been sharpened and more effective media for reporting status and delays are being adopted, with the cooperation of Air Force construction agencies.

On the basis of demonstrated performance in fiscal year 1955 and with the further improvements as noted above, we are confident that $1,350 million can again be placed under contract in fiscal year 1956 within the capability of present construction agencies and without strain on the construction industry. New appropriations of $1,200 million, added to the carryover of $300 million program and funds from fiscal year 1955, will provide total funding in fiscal year 1956 of $1,500 million. Realization of $1,350 million contract performance in quarterly increments of $300 million, $550 million, $300 million and $200 million brings the Air Force to the end of fiscal year 1956 with a carryover of only $150 million, an absolute minimum figure to provide continuity of design and construction effort during July and August of next year.

Mr. MAHON. Thank you, General Washbourne, for your very comprehensive statement.

FINANCIAL STATUS OF CONSTRUCTION PROGRAM

We have here before us a statement which says: "Financial status, Air Force construction program, April 30, 1955." Then you give the program, and you give the obligated amount, and you give the expended amount.

I think it would be well to place that in the record at this point.