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Printed for the use of the Committee on Governmental Affairs

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COMMITTEE ON GOVERNMENTAL AFFAIRS

WILLIAM V. ROTH, JR., Delaware, Chairman
CHARLES H. PERCY, Illinois

THOMAS F. EAGLETON, Missouri
TED STEVENS, Alaska

HENRY M. JACKSON, Washington
CHARLES McC. MATHIAS, JR., Maryland LAWTON CHILES, Florida
JOHN C. DANFORTH, Missouri

SAM NUNN, Georgia
WILLIAM S. COHEN, Maine

JOHN GLENN, Ohio
DAVID DURENBERGER, Minnesota

JIM SASSER, Tennessee
MACK MATTINGLY, Georgia

DAVID PRYOR, Arkansas
WARREN B. RUDMAN, New Hampshire CARL LEVIN, Michigan

JOAN M. McENTEE, Staff Director
IRA S. SHAPIRO, Minority Staff Director and Chief Counsel

SUBCOMMITTEE ON FEDERAL EXPENDITURES, RESEARCH, AND RULES

JOHN C. DANFORTH, Missouri, Chairman
CHARLES H. PERCY, Mlinois

LAWTON CHILES, Florida
DAVID DURENBERGER, Minnesota

HENRY M. JACKSON, Washington
CHRISTOPHER R. BREWSTER, Chief Counsel and Staff Director

PATRICIA A. OTTO, Chief Clerk

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CONTENTS

Page

FRIDAY, MAY 15, 1981

O. S. Hiestand, chairman, Public Contract Law Section, American Bar Associ-

ation, Washington, D.C.; David L. Hirsch, chairman-elect, Public Contract

Law Section, American Bar Association, Long Beach, Calif.; and Paul G.

Dembling, chairman, Federal Acquisition Regulation Council, Public Con-

tract Law Section, American Bar Association, Washington, D.C.

Wallace H. Robinson, Jr., president, National Security Industrial Association,

Washington, D.C., accompanied by Hugh Witt, vice president, government

liaison, United Technologies Corp., Washington, D.C., Walter O'Neil, vice

president, Washington Operations, Hazeltine Corp., Arlington, Va., and

Harvey Kushner, president, ORI, Incorporated, Silver Spring, Md...

Alphabetical list of witnesses:

Dembling, Paul G.: Testimony...

Hiestand, O. S.:

Testimony...

Prepared staten nt with attachments..
Hirsch, David L.: Testimony
Kushner, Harvey: Testimony
O'Neil, Walter: Testimony
Robinson, Wallace H., Jr.: Testimony

Witt, Hugh: Testimony.

Additional material submitted for the record:

Letters to Senator Danforth from:

Wallace H. Robinson, Jr., National Security Industrial Association,

June 11, 1981, with enclosure.....

Donald J. Horan, Director, Procurement, Logistics, and Readiness

Division, GAO, June 23, 1981, with enclosures.

Statements from:

Aerospace Industries Association of America, Inc.

Arndt, Ernst-Theodore.....

Associated General Contractors of America.....

Chamber of Commerce of the United States.

Coalition for Common Sense in Government Procurement

Computer and Business Equipment Manufacturers Association.

Machinery and Allied Products Institute.

National Association of Counties........

National Governors' Association

Scientific Apparatus Makers Association

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OVERSIGHT OF THE FEDERAL PROCUREMENT

SYSTEM

FRIDAY, MAY 15, 1981

U.S. SENATE,
SUBCOMMITTEE ON FEDERAL EXPENDITURES,

RESEARCH, AND RULES,
COMMITTEE ON GOVERNMENTAL AFFAIRS,

Washington, D.C. The subcommittee met, pursuant to notice, at 10:10 a.m., in room 3302, Dirksen Senate Office Building, Hon. John C. Danforth (chairman of the subcommittee) presiding.

Staff present: Christopher R. Brewster, chief counsel and staff director; Patricia A. Otto, chief clerk; Ronald A. Chiodo, minority staff director; and Jerry W. Cox, counsel.

OPENING STATEMENT OF SENATOR DANFORTH Senator DANFORTH. The subcommittee will come to order.

A few weeks back I took this subcommittee to St. Louis to meet with a number of contractors who do business with the Federal Government.

We asked them to tell us about the problems they had encountered in doing business with the Government and we asked for their recommendations on how we could improve the procurement system.

We heard from construction contractors, small business contractors, and defense contractors.

One witness showed me the survey markers which I have with me today. These are the two survey markers sindicating]. They were manufactured for the Army Corps of Engineers. When used, they are embedded in cement and placed in the ground. Weeds grow over them.

One of these survey markers-and they appear to be identicalmeets Government specifications which were quite specific. The other survey marker does not meet Government specifications. The survey marker which flunks the test had the misfortune to be miscut by the smallest fraction of an inch.

As a consequence, the slot in the shaft which is placed in the ground and embedded in cement is slightly shiny. It still does the job, but it flunks the specifications.

Therefore, it is so much junk. The problem in meeting the Government specifications was compounded by the fact that the Government had even gone so far as to dictate how the marker was to be made-in sand molds of particular composition and so on.

But the Government way of making the marker, I was told, was bad foundry practice. No self-respecting manufacturer would ever

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