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7787196
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Defense - Military Base Realignments and Closures (2)
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7787196
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Defense - Military Base Realignments and Closures (2)
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John O. Marsh Files (Ford Administration)
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The original documents are located in Box 11, folder "Defense - Military Base Realignments and Closures (2)" of the John Marsh Files at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. Digitized from Box 11 of The John Marsh Files at the Gerald R. Ford Presidential Library OFFICE STATE OF THE PRESIDENT STATES OF UNITED EXECUTIVE OFFICE OF THE PRESIDENT JAN 8 1976 OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 January 8, 1976 MEMORANDUM FOR: JACK MARSH FROM: DONALD G. OGILVIE SUBJECT: Helicopter Pilot Training Attached is the Defense budget decision document which consolidated helicopter pilot training at Fort Rucker. Clements is apparently considering a proposal to con- solidate fixed-wing aircraft training at Pensacola, but no decision has been made to date. I have asked Jim Mitchell and Paul O'Neill to check on the forestry issue you raised and will get you a report shortly. Attachment saw Jonly discussed 1/20/26 A/M Finday GERALD R. FORD D's LIBRARY mth. NUMBER PROGRAM/BUDGET DECISION 31 adams SUBJECT Program 8 - Consolidation of Undergraduate DOD COMPONENT Helicopter Pilot Training Navy, Army DESCRIPTION Covers all undergraduate helicopter pilot training. FY 1977 Army Navy Alternative Estimate, TOA, $M +12.5 -34.3 Alternative Estimate, Military E/S +60 -2,000 Alternative Estimate, Civilian E/S +23 -450 Evaluation The potential for consolidation of undergraduate helicopter pilot training (UHPT) has long been studied by different groups. While strong opposing views have been presented by the Navy, the general conclusion reached by the Interservice Training Review Organization (ITRO) task group is that significant savings could be realized from consolidation. The greatest total savings to DoD, however, would clearly be realized by having the Army conduct all DoD helicopter training at Fort Rucker. The alternative directs that all UHPT training be consolidated under Army, adds $12.5 million to Army training estimates for this purpose and reduces Navy training estimates by $34.3 million for a net DoD savings of $21.8 million in FY 1977. Larger savings will be realized in the outyears. In addition, the alternative would preclude the Navy from acquiring two additional outlying training fields near Pensacola and would provide for the reduction of at least one Navy flight training base. The effect of the alternative would be to also reduce Navy aircraft procurement requirements by $24.0 million. Aircraft requirements will be addressed in a separate PBD. Outyear savings indicated below include the impact of a Navy base closure and excludes aircraft procurement reductions. Outyear Impact: Per Year FY 1978 - FY 1981 Army Navy +12.5 Million -$51.3 Million +60 Military E/S -2,300 Military E/S +23 Civilian E/S -900 Civilian E/S Alternative. Consolidate all UHPT under Army; approve an increase of $12.5 million, 60 military E/S and 23 civilian E/S to Army estimates and a decrease of $34.3 million, 2,000 military E/S, and 450 civilian E/S to Navy estimates in FY 1977; and reduce Navy flight training base structure by one base. Mtg with sikes clements DOD must start thefficiencies 'hard pill time Must do had things Pensacola open option with Corpus Christ, (clemints does not like) 2 Nany Eighting to bitter end DECISION The Deputy Secretary approved the alternative and to FORD is LIBRARY 070838 consolidate at Fort Rucker. December 15, 1975 SD, FORM OCT 74 428-1 FOR OFFICIAL USE ONLY PAGE 1 OF 5 Disclosure Restricted Under FOI Act (5 USC 552) and DoD Directive 5400.7 NUMBER PROGRAM/BUDGET DECISION (Continuation) UHPT 317 CONTINUATION OF CONSIDERATION DETAIL OF EVALUATION Consolidation of Undergraduate Helicopter Pilot Training (UHPT) For several years now, proposals have been considered to consolidate UHPT into an all helicopter program under the Army. A great deal of pressure has been exerted from the GAO and the Congress on the DoD to move forward with this consolidation. Each time this issue has been addressed, significant economies identified have prompted OSD staff support of such consolidation. However, each time a particular version was solidified, staffed and began moving through the decision process, strong objections have been raised by the Navy on the basis that the "Service peculiar" needs of the Navy cannot be met causing delay in a decision on any partic- ular consolidation proposal. On the other hand, Air Force helicopter pilots have been trained by the Army successfully for a number of years and Army has successfully trained Marines (several hundred a year during the Vietnam era). Navy conducts a combination fixed and rotary wing UHPT program with graduates receiving some 100 hours in rotary-wing aircuaft in contrast to some 200 rotary-wing hours for graduates of the Army all helo program. At ASD (M&RA) request, the Interservice Training Review Organization (ITRO) studied the potential for this consolidation and found that significant savings would accrue from such a move. GAO concluded also in a 1974 report that helicopter train- ing consolidation would result in savings. In short, the issue has been studied long enough and this PBD provides an alternative intended to prompt a decision to consolidate helicopter training as part of the FY 1977 budget review process. The ITRO task group found that significant commonality existed among the Services in the UHPT basic course requirements for training a helo pilot. Navy graduates of UHPT, as they do now, would attend advanced (Readiness Squadron) training to fully prepare them for assignment to a fleet aviation unit. Service peculiar requirements can be readily provided in this intermediate follow-on program or in an expanded Service-specialized final segment of the UHPT syllabus, or both, as in the case for the Air Force. These needs are discussed in detail by the ITRO. It is generally agreed that a revision of the current UHPT syllabus to provide for such needs would be desirable if Army did all the training at Fort Rucker. The table below displays Service budgeted helicopter training rates over the next several years, subject to adjustment in the current budget cycle. FY 1976 FY 197T FY 1977 FY 1978 FY 1979 FY 1980 FY 1981 Army 811 158 820 820 820 820 820 Air Force 50 12 50 50 50 50 50 Navy 225 50 201 200 200 200 200 Marine Corps 216 45 180 260 260 260 260 Other* 139 63 151 95 95 95 95 Total 1,441 328 1,402 1,425 1,425 1,425 1,425 *Includes Coast Guard, Foreign, etc. Army training officials have advised that the Fort Rucker capacity for training helicopter pilots is about 2,400 pilots per year; it is the only base that has the capacity to train all helicopter pilots required by DoD. As indicated, the Army's stated peak annual helo pilot training requirement FY77 through FY81 is less than SD FORM 1 OCT 74 428-1c FOR OFFICIAL USE ONLY PAGE 2 OF 5 Disclosure Restricted Under FOI Act (5 USC 552) and DoD Directive 5400.7 NUMBER PROGRAM/BUDGET DECISION (Continuation) UHPT 317 CONTINUATION OF CONSIDERATION 900 pilots. Because of Army's current pilot surplus, however, the PBD on Program VIII. Army, proposes reducing the annual training rate to at least 675 and perhaps to 500 pilots. Assuming that this proposed training rate is accepted, only a quarter of the present training capacity at Fort Rucker will be used. Furthermore, training rates for the other Services are expected to be lower than those shown pending final decision in separate PBD's currently under consideration. The ITRO study addressed three options. The first option was to maintain the status quo and allow Navy to proceed with its Long Range Pilot Training System at a one-time cost of $17.7M and annual recurring savings estimated at $6.7M. Option two provided for "All Helicopter" Training by the Army and identified one-time costs of $.2M and annual recurring savings of $11.7M. Option three, which is essentially a compromise between the first two options, would have collocated Navy training at Fort Rucker but allowed Navy to continue its own training. One-time costs were estimated at $12.8M with annual recurring savings of $6.3M. The estimates did not include cost avoidance/ savings associated with current Navy plans to acquire two outlying fields at Whiting near Pensacola nor did they include reduced procurement requirements of T-34C train- ing aircraft. Base utilization adjustments which could be accomplished with consoli- dation were also not addressed in the ITRO study. The study was reported in March 1975 and although it remains valid, some detailed cost estimates may warrant updating. Current estimates from the Army indicate that Army can train all Navy and Marine Corps helo pilots for an annual additional Army cost of approximately $12.5M, an estimate consistent with the ITRO study. The Army add-on is based on budgeted Navy- conducted training rates and would be adjusted to reflect other budget adjustments in these rates. This estimate is based on the following assumptions: (1) all primary flight training (approximately the first half) will be performed by contract, as it is now in the Army program ; (2) Navy will provide and fund all Instructor Pilots, Check Pilots, and Flight Commanders required beyond primary flight training; (3) training syllabus will be identical except for 25 hours of Navy-unique training; (4) all academic instructors will be provided by Army; (5) flight clothing for USN students will be provided by Navy; (6) Navy will furnish a detachment for all administrative support for USN permanent party and students; (7) investment costs for training aircraft are not included; and (8) Navy will transfer its UH-1 training aircraft to Army to augment the present UHPT trainer inventory. The latter will supplement Army UH-1 assets for the last half of the course; Army TH-55 assets from the Vietnam surge are adequate to handle all DoD training loads. The Navy budget displays the total cost of its flight training program which includes estimated costs of training jet, propellar, and helicopter pilots for Navy, Marine Corps, Coast Guard and foreign countries. Budget estimates are presented in aggre- gate for all aircraft lines. The Service estimate breaks out only aircraft operating cost for each line and does not separately identify the total costs of training jet pilots, prop pilots or helo pilots. Navy has been repeatedly requested to break out the cost for the helo pilot portion only. Navy has reported that it is having great difficulty separating these costs and to date has been unable to provide the data. The table below displays data provided by the Navy for the FY 1976 Military Manpower Training Report (MMTR), which identifies total cost of UHPT program for FY 1976 and FY 197T, as contained in the President's Budget. SD FORM 428-1c FOR OFFICIAL USE ONLY PAGE 3 OF 5 1 OCT 74 Disclosure Restricted Under FOI Act (5 USC 552) and DOD Directive 5400.7 NUMBER PROGRAM/BUDGET DECISION (Continuation) UHPT 317 CONTINUATION OF CONSIDERATION Undergraduate Helicopter Pilot Training FY 1976 FY 197T FY 1977 ($000) ($000) ($000) Navy Training Rate (Navy/Marcorps) 528 106 381 Appropriation MilPers 35,884 8,877 39,245 0&M 22,260 5,879 27,681 Aircraft Procurement 11,010 3,670 34,800 Other Procurement 113 32 693 MILCON 2,672 0 0 Reimb. 0 0 0 71,939 18,458 102,419 (est.) Purpose/Use Student Pay and Allow. 4,797 1,195 5,154 Direct Spt. MilPers 22,538 5,515 22,795 Direct Spt. Other 12,332 3,369 14,531 Indirect Spt. MilPers 8,549 2,167 33,146 Indirect Spt. Other 23,723 6,212 26,793 71,939 18,458 102,419 (est.) Costs associated with conduct of UHPT in FY 1976 were stated by Navy last year to be $71.9M, of which $11M was for aircraft procurement and $2.7M was for new construc- tion. Navy has been tasked to update and extend this table for FY 1977 funding. Since Navy has not yet responded, the FY 1976/7T data above was used to factor the FY 1977 costs for pricing out the alternative in this PBD. The costs for Navy UHPT in FY 1977 have been estimated to be about $102.4M, of which $34.8M is programmed for aircraft procurement. Data from the above table indicates an average cost of about $136,000 per Navy helo pilot graduate in FY 1976 and about $174,000 per graduate in FY 197T. Cost per graduate in FY 1977 would exceed $260,000 when proposed aircraft procurement costs are allocated. Comparable MMTR data for the Army helo pilot program indicates an average cost per graduate of $87,000 in FY 1976 and $86,000 in FY 197T. The Navy fixed-wing aircraft procurement plan, part of which supports Navy's UHPT, is well underway. Total procurement is programmed for 228 T-34C training aircraft at a total cost of $82.9M, with funding of 109 planned for FY 1977 at a cost of $34.8M. About one-third of the total buy could be avoided under this consolidation, or 76 aircraft at a savings of about $24M. Aside from the large investment cost of such aircraft, they are more expensive to operate in the primary phase than the different rotary wing aircraft that could be used if the Army did this training instead. Based on the estimated Navy costs above and analysis by the OSD staff, it is estimated that no less than $60M in FY 1977 Navy funds could be saved by having the Army train all helicopter pilots at its UHPT base at Fort Rucker. The alternative would direct the Army to conduct undergraduate helo pilot training for all DoD needs at Fort Rucker, beginning in FY 1977. This decision would require adding 60 military E/S, 23 civilian E/S and $12.5M to the Army budget. Navy training budget estimates could be reduced by 2,000 military, 450 civilians, and $34.3M in FY 1977 with larger savings anticipated in the outyears. In addition, potential SD FORM 1 OCT 74 428-1c FOR OFFICIAL USE ONLY PAGE 4 OF 5 Disclosure Restricted Under FOI Act (5 USC 552) and DoD Directive 5400.7 NUMBER PROGRAM/BUDGET DECISION (Continuation) UHPT 317 CONTINUATION OF CONSIDERATION Navy aircraft procurement savings (now estimated at $24.0 million) will be addressed in a separate PBD. The alternative would direct Navy to withhold action on the planned acquisition of two outlying fields at Whiting until the full impact of this decision is determined. Consolidation of UHPT together with other training consolidation actions, makes possible the reduction of the Navy flight training base structure by one base with the location to be proposed by the Navy. The reductions above assume one-time Navy phasing costs of $17M in FY 1977. SD FORM 428-1c FOR OFFICIAL USE ONLY PAGE 5 OF 5 1 OCT 74 Disclosure Restricted Under FOI Act (5 USC 552) and DoD Directive 5400.7 OFFICE OF THE SECRETARY OF DEFENSE January 19, 1976 Memo For Jack Marsh Attached is a revised page 10 to sub- stitute in the report I sent you over the weekend regarding base closure justifications. aw Alan Woods DEPART DEP DE OF DIFINS JAN 17 1976 OFFICE OF THE SECRETARY OF DEFENSE WASHINGTON. D.C., 20301 NIED STATES or THIREY January 17, 1976 THE SPECIAL ASSISTANT MEMORANDUM FOR JOHN 0. MARSH, JR. Attached you will find the bullet points you requested for each significant base realignment to be studied. Where there are substantive negative factors involved, they have been included. Also attached is an additional copy of the memorandum indicating the names (in parentheses) of the Congress- man in whose district the facilities are located and the names of other Members of Congress and Senators from that state who serve on committees which affect DoD. An asterisk next to the state's name shows whether or not it is a primary state. I will remain available to discuss these with you at your convenience. I can be reached at 697-8388 (office) or 549-5919 (home). alonWood Alan Woods The Special Assistant CC: James Cavanaugh Donald Ogilvie & FORD WE DEPARTMENT OF DEFENSE REALIGNMENT CANDIDATES JANUARY 1976 SIGNIFICANT CANDIDATES ACTION Key Committee Member ALABAMA STUDY CLOSURE OF CRAIG AIR FORCE BASE, Dickinson (R) HASC SELMA (Represented by Cong. Flowers-D) Edwards (R) HAC Nichols (D) HASC Bevill (D) HAC ARIZONA STUDY CONSOLIDATION AND RELOCATION OF Goldwater (R) SASC ACTIVITIES FROM DAVIS-MONTHAN AIR FORCE BASE, TUSCON (Represented by Cong. Udall-D) CALIFORNIA STUDY CLOSURE OF FORT MAC ARTHUR, LOS ANGELES Cranston (D) SBC (Represented by Cong. Johnson-D) B. Wilson (R) HASC Hinshaw (R) HASC CONSOLIDATE SUPPORT AND OVERHEAD OF NAVAL Talcott (R) HAC ELECTRONIC LABORATORY CENTER/NAVAL UNDERSEA Clawson (R) HBC CENTER, SAN DIEGO (Represented by B. Wilson-R) C. Wilson (D) HASC Leggett (D) HASC & HBC Lloyd (D) HASC Burke (D) HAS Roybal (D) HAC McFall (D) HAC Burgener (D) HAC Dellums (D) HASC FLORIDA STUDY DISESTABLISHMENT OF NAVAL AIR STATION, Chiles (D) SAC &SBC KEY WEST (Represented by Cong. Fascall-D) Young (R) HAC Bennett (D) HASC STUDY DISESTABLISHMENT OF NAVAL AIR STATION, Sikes (D) HAC PENSACOLA, SAUFLEY FIELD (Represented by Chappell (D) HAC Cong. Sikes-D) Gibbons (D) HBC FORD BERALD 2. ILLINOIS* STUDY CLOSURE OF SAVANNA ARMY DEPOT, SAVANNA O'Brien (R) HASC (Represented by Cong. Railsback-R) Michel (R) HAC Price (D) HASC Shipley (D) HAC Yates (D) HAC INDIANA* STUDY CLOSURE OF JEFFERSON PROVING GROUND, Bayh (D) SAC MADISON (Represented by Cong. Hamilton-D) Hillis (R) HASC Roush (D) HAC REDUCE OPERATIONS AT NAVAL WEAPONS SUPPORT Myers (R) HAC CENTER, CRANE (Represented by Cong. Hillis-R) MAINE STUDY REDUCTION OF BASE AT LORING AIR FORCE Muskie (D) SBC BASE, LIMESTONE (Represented by Cong. Cohen-R) MARYLAND* STUDY CONSOLIDATION OF ORDNANCE SCHOOL, Mathias (R) SAC ABERDEEN PROVING GROUND, ABERDEEN Beall (R) SBC (Represented by Cong. R. Bauman-R) Holt (R) HASC Long (D) HAC Mitchell (D) HBC MASSACHUSETTS* STUDY REDUCTION OF SEMIACTIVE STATUS OF Brooke (R) SAC FORT DEVENS, AYER (Represented by Cong. Conte (R) HAC Drinan-D) Boland (D) HAC Early (D) HAC 'Neill (D) HBC MICHIGAN* STUDY CONVERSION TO CONTRACT OPERATION OF Cederberg (R) HAC & HBC ARMY FAMILY HOUSING AT SELFRIDGE AIR Nedzi (D) HASC GUARD BASE, MT. CLEMENTS (Represented by Carr (D) HASC Cong. O'Hara-D) Traxler (D) HAC 'Hara (D) HBC STUDY CLOSURE OF KINCHELOE AIR FORCE BASE, KINROSS (Represented by Cong. Ruppe-R) 3. MISSOURI STUDY RELOCATION OF ACTIVITIES FROM RICHARDS- Symington (D) SASC GEBAUR AIR FORCE BASE, GRANDVIEW (Represented Eagleton (D) SAC by Cong. Bolling-D) Randall (D) HASC Ichord (D) HASC Burleson (D) HAC MONTANA* INACTIVATE STRATEGIC AIR COMMAND SATELLITE Mansfield (D) SAC DETACHMENT AND DISESTABLISH AIR FORCE Baucus (D) HAC ACTIVITIES AT GLASGOW AIR FORCE BASE, GLASGOW (Represented by Cong. Melcher-D) NEW JERSEY* STUDY CLOSURE OF FORT DIX, WRIGHTSTOWN Case (R) SAC (Represented by Thompson-D and Forsythe-R) Patten (D) HAC STUDY CONVERSION TO CONTACT OPERATION AT ARMY MILITARY OCEAN TERMINAL, BAYONNE (Represented by Cong. Daniels-D) NEW YORK* STUDY CLOSURE OF FORTS HAMILTON AND TOTTEN, Buckley (R) SBC NEW YORK CITY (Represented by Cong. Mitchell (R) HASC Zeferetti-D; Rosenthal-D, Biaggi-D, Wolff-D) Kemp (R) HAC McEwen (R) HAC STUDY RELOCATION OF NAVY RESALE OFFICE FROM Conable (R) HBC NEW YORK CITY (Represented by Cong. Hastings (R) HBC Zeferetti-D) Stratton (D) HASC STUDY CONVERSION TO CONTRACT OPERATION OF Holtzman (D) HBC ARMY FAMILY HOUSING AT STEWART AIRPORT, Addabbo (D) HAC NEWBURGH (Represented by Cong. Gilman-R) Koch (D) HAC OHIO* STUDY CONVERSION OF CONTRACTOR OPERATED Taft (R) SASC RESERVE FACILITY OF RICKENBACKER AIR FORCE Regula (R) HAC BASE, COLUMBUS (Represented by Wylie-R Miller (R) HAC and Devine-R) Latta (R) HBC Ashley (D) HBC Stokes (D) HAC & HBC 4. OKLAHOMA STUDY CONSOLIDATION AND RELOCATION OF Bellmon (R) SAC & SBC ACTIVITIES FROM ALTUS AIR FORCE BASE Steed (D) HAC ALTUS (Represented by Cong. Steed-D) STUDY REALIGNMENT OF AIR CONTROL SYSTEM AND COMMUNICATIONS AT TINKER AIR FORCE BASE, OKLAHOMA CITY (Represented by Cong. Jarman-R) PENNSYLVANIA* STUDY REDUCTION OF OPERATIONS AT NEW CUMBER- Schulze (R) HASC LAND ARMY DEPOT, NEW CUMBERLAND (Represented Coughlin (R) HAC by Cong. Goodling-R) Murtha (R) HAC McDade (R) HAC STUDY TERMINATION OF ARMY OPERATIONS AT FORT Schneebeli (R) HBC INDIANTOWN GAP, LEBANON (Represented by Flood (D) HAC Cong. Schneebeli-R) STUDY REDUCTION OF NAVAL HOSPITAL, PHILADELPHIA (Represented by Cong. Barrett-D, Eilberg-D, Green-D and Nix-D) TENNESSEE* STUDY CLOSURE OF NAVAL AIR STATION, MEMPHIS Beard (R) HASC (Represented by Cong. Jones-D) Evins (D) HAC TEXAS* STUDY DISESTABLISHMENT OF NAVAL AIR STATION Tower (R) SASC CORPUS CHRISTI AND REDESIGNATION AS NAVAL White (D) HASC AIR FACILITY (Represented by Cong. Young-D) Kazen (D) HASC Casey (D) HAC STUDY CLOSURE OF WEBB AIR FORCE BASE, BIG Mahon (D) HAC SPRING (Represented by Cong. Burleson-D) Wright (D) HBC Burleson (D) HBC VIRGINIA STUDY TERMINATION OF ARMY ACTIVITIES AT Byrd (D) SASC ARLINGTON HALL, ARLINGTON (Represented by Scott (R) SASC Cong. Fisher-D) Whitehurst (R) HASC Robinson (R) HAC STUDY CLOSURE OF WINT HILL FARMS STATION Daniel (R) HASC WARRENTON (Represented by Cong. Robinson-R) * Daniel, D (D) HASC STUDY CLOSURE OF FORT STORY, VIRGINIA BEACH (Represented by Cong. Whitehurst-R) 5. PUERTO RICO STUDY CLOSURE OF FORT BUCHANAN GUAM STUDY CLOSURE OF NAVAL SHIP REPAIR FACILITY AGANA (Represented by Cong. Won-D) * Primary State DEPARTMENT OF DEFENSE JANUARY 1976 PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL ALABAMA STUDY CLOSURE OF CRAIG AIR FORCE BASE, 1,500 550 2,050 SELMA Excess Undergraduate Pilot Training (UPT) training base capacity Craig lowest producer of all UPT bases Airspace problems Weather limits flying operation New investment has purposely been with- held because Craig has been "soft" for some time Large percentage of substandard facilities No need for other AF requirements ARIZONA CONSOLIDATE AND RELOCATE ACTIVITIES FROM 980 40 1,020 DAVIS-MONTHAN AIR FORCE BASE, TUCSON (Transfer from SAC to TAC, inactive 100th Strat. Recon Wing; relocate 349th Strat Recon Sqd's U-2 aircraft to Beale AFB, Calif. and merge with SR-71 assets; con- solidate SAC and TAC drone personnel and equipment under TAC at base; and relocate Det. 1 of the AF Fighter Weapons Center which has six A-10 aircraft and performs Operational Test & Evaluation mission for Nellis AFB, Nevada) Collocates Strat. Recon resources Reduces air space hazard for U-2 by relocating 2. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL ARIZONA (Continued) Avoids U-2 construction requirements at D/M Results in economies due to consolida- tion of Strat. Recon and drone resources CALIFORNIA STUDY CLOSURE OF FORT MAC ARTHUR, LOS ANGELES 90 180 270 Reduction of unneeded, high cost, single mission installation (DoD policy to eliminate) Reduction of overhead and support costs Originally proposed in 1974 but not fully implemented Reserve mission can be performed as effec- tively at Naval Air Station, Los Alamitos CONSOLIDATE SUPPORT AND OVERHEAD OF NAVAL 370 370 ELECTRONIC LABORATORY CENTER/NAVAL UNDERSEA CENTER, SAN DIEGO Economies through consolidation of overhead and support facilities Situated almost across street from each other FLORIDA STUDY DISESTABLISHMENT OF NAVAL AIR STATION, 330 28 358 SAUFLEY FIELD, PENSACOLA Realignment of Navy Aviation Training assets Economies through consolidation Property will continue to be used for Navy non-flying activities 3. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL FLORIDA (Continued) STUDY DISESTABLISHMENT OF NAVAL AIR STATION, 2,600 640 3,240 KEY WEST Cost Economies due to reduction of base Operating Support Costs Reduces Navy shore establishment Consolidates similar activities in Pensacola area ILLINOIS STUDY CLOSURE OF SAVANNA ARMY DEPOT, SAVANNA 15 415 430 Continuation of Army's long range plan to reduce unneeded depot structure (Reduction affected 2-3 years ago) Preliminary estimate indicates long term pay back (14 years) Army analyses indicates this most feasible one at this time Property will probably be retained for contingency requirements. INDIANA STUDY CLOSURE OF JEFFERSON PROVING GROUND, 4 420 424 MADISON Continuation of Army's long range plan to reduce unnecessary installations One of four locations at which ammo test- ing is accomplished. Proposals will reduce to three, thereby eliminating some duplication Will result in better utilization of proposed mission relocation sites (Aberdeen Proving Ground, Md.; Yuma, Ariz. and/or Dugway, Utah) Preliminary estimate indicates long term pay back (11.4 years) 4. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL INDIANA (Continued) REDUCE OPERATIONS AT NAVAL WEAPONS SUPPORT 445 445 CENTER, CRANE RIF only (11%) Need based upon Navy's projection of workload MAINE STUDY REDUCTION OF BASE AT LORING AIR 2,750 465 3,215 FORCE BASE, LIMESTONE Scheduled reduction of older B-52 (G models) from active inventory Results in part from total force strategy which transfers certain SAC tanker functions to Reserve Component responsibility (i.e., KC-135s to Reserves) Will retain capability to support SAC, Air Defense Command alert and contin- gency requirements Reduction of single mission base (DoD policy is to evolve to multi-mission base) Results in sizable resource reductions (less than 3 month pay back) New investment has been held to minimum in recent years Coastal SAC base MARYLAND STUDY CONSOLIDATION OF ORDNANCE SCHOOL, 1,475 720 2,195 ABERDEEN PROVING GROUND (APG), ABERDEEN Consolidation of similar training activities (Ordnance School, APG and Missile and Munitions School, Redstone Arsenal, Alabama) 5. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL MARYLAND (Continued) Very cost effective - 1.1 year pay back (but $40 mil in new MILCON) Reduces overhead and support costs Would significantly reduce APG with no planned back fill. MASSACHUSETTS STUDY REDUCTION TO SEMIACTIVE STATUS OF 4,370 850 5,220 FORT DEVENS, AYER Consolidation of Army Intelligence training activities Reduces overhead and support costs Cost effective - 5.6 year pay back Preliminary estimates indicates $50 mil MILCON required MICHIGAN STUDY CONVERSION TO CONTRACT OPERATION OF 21 230 251 ARMY FAMILY HOUSING AT SELFRIDGE AIR NATIONAL GUARD BASE, MT. CLEMENS Could be very cost effective Reduces DoD civilian end strength Would continue to provide required family housing Reserve Component activities unaffected STUDY CLOSURE OF KINCHELOE AIR FORCE BASE, 2,700 470 3,170 KINROSS Single mission base Transfer of KC-135 forces closure Clean base, allowing maximum economies to be realized 6. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL MICHIGAN (Continued) Very cost effective - 1.4 year pay back Facilities redistribution of B-52 assets for consolidation Low investment No significant recent new construction MISSOURI STUDY RELOCATION OF ACTIVITIES FROM RICHARDS- 2,370 1,680 4,050 GEBAUR AIR FORCE BASE, GRANDVIEW (INCLUDES NOVEMBER 1974 ANNOUNCED ACTION) Consolidate similar functions Reduces headquarters Relocation of Air Force Communications Service will anable management efficiences to be realigned Base retained for Air Force Reserve use If Navy relocates Reserve activities from Memphis tempo of AF planned operations at this base could increase substantially Very cost effective - 1.6 year pay back MONTANA INACTIVATE STRATEGIC AIR COMMAND SATELLITE 149 15 164 DETACHMENT AND DISESTABLISH AIR FORCE ACTIVITIES AT GLASGOW AIR FORCE BASE, GLASGOW TERMINATE ARMY CONTRACT OPERATIONS AT GLASGOW AIR FORCE BASE, GLASGOW Consolidation of SAC assets Reduction in overhead and support cost ($10 mil) Action delayed for some period to assist local community in overcoming adverse economic impact of 1968 closure of base with little attraction of long term industrial tenants for use of base facilities 7. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL MONTANA (Continued) Base excess and will be available for State/Local ownership Civilian energy projects now being con- sidered by State for base should help miti- gate being economic impact. NEW JERSEY STUDY CONVERSION TO CONTRACT OPERATION AT 7 590 597 ARMY MILITARY OCEAN TERMINAL, BAYONNE No need for full time DoD longshoremen Trend towards containerization diminished need for Bayonne break bulk type operation Accomplishment by contract allows when and as needed arrangement with resulting economies NEW YORK STUDY CLOSURE OF FORTS HAMILTON AND TOTTEN, 410 604 1,014 NEW YORK CITY Eliminates small single mission, high cost installations Reduces overhead and support costs Very cost effective - 2.7 year pay back Reserve activities remain STUDY RELOCATION OF NAVY RESALE OFFICE FROM 18 740 758 NEW YORK CITY Consolidates DoD activities on military installation Reduces Navy SLUC costs (DoD payments to GSA) Reduces overhead and support costs No civilian end strength reduction 8. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL NEW YORK (Continued) STUDY CONVERSION TO CONTRACT OPERATION OF 41 148 189 ARMY FAMILY HOUSING AT STEWART AIRPORT, NEWBURGH Could be very cost elfective Reduces DoD end strength Would continue to provide required family housing Reserve activities remain OHIO STUDY CONVERSION TO CONTRACTOR OPERATED 1,750 560 2,310 RESERVE FACILITY OF RICKENBACKER AIR FORCE BASE, COLUMBUS Transfer of KC-135 to Reserve allows inactivation of active sqds at this base and transfer to take place at same base Very cost effective - less than three months pay back Avoids MILCON for Reserve KC-135 transfer by using existing KC-135 facilities on base Base remains viable but for Reserves only OKLAHOMA CONSOLIDATE AND RELOCATE ACTIVITIES FROM 615 52 667 ALTUS AIR FORCE BASE, ALTUS Nunn Amendment - communications units deploy to Europe Increases communications posture in Europe Assists in modernization of National Guard Air Tactical Control System 9. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL OKLAHOMA (Continued) Combines two mobile communications units and one base for increased efficiences REALIGNMENT OF AIR CONTROL SYSTEM AND COMMUNI- 413 5 418 CATIONS AT TINKER AIR FORCE BASE, OKLAHOMA CITY Assists in modernization of Air National Guard Tactical Air Control System Increase communications posture in Europe Nunn Amendment - communications units deploy to Europe PENNSYLVANIA STUDY REDUCTION OF ARMY AVIATION MAINTENANCE 35 1,420 1,455 OPERATIONS AT NEW CUMBERLAND ARMY DEPOT, NEW CUMBERLAND Consolidates Army Aviation Maintenance activities (Corpus Christi, Texas/ New Cumberland, Md.) Reduces overhead and support functions Permits significant annual cost reductions Improves management of Army aviation maintenance activities STUDY TERMINATION OF ARMY OPERATIONS AT 130 820 950 FORT INDIANTOWN GAP, LEBANON Owned primarily by State; State National Guard activities unaffected ROTC training mission reassigned elsewhere several years ago Operation New Life (VN Refugee Program) delayed consideration of proposal Eliminates unneeded, low utility, Reserve Component base which has very marginal 10. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL PENNSYLVANIA (Continued) mobilization use (Reserves for main training use Drum, N.Y.; Hill, Va.; Pickett, Va. and will use Dix more) Very cost effective - less than four months pay back Enables civilian personnel end strength reduction STUDY REDUCTION OF NAVAL HOSPITAL, 590 248 838 PHILADELPHIA Regionalization of hospital assets Navy regards 300 bed hospital as excess to its requirements Enables civilian personnel end strength reduction STUDY CLOSURE OF THE DEFENSE CLOTHING 1,600 1,600 FACTORY, PHILADELPHIA Enables civilian end strength reduction Work would be accomplished by contract In line with Government Policy Problem may be that industry may not be responsive (such as has happened in past) Option may be to reduce to 500 person- nel level Civilian employees - 85% Black; 80% women. TENNESSEE STUDY CLOSURE OF NAVAL AIR STATION, MEMPHIS 580 100 680 (Relocate five Reserve Squadrons to Richards-Gebaur AFB, Mo.) Naval Air Reserve Facility (Marine/ Navy Reservists) 60% of Reservists now come from Kansas City area 11. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL TENNESSEE (Continued) Increase in Reserve training effective- ness Helps Reserve morale Reduces costs TEXAS STUDY DISESTABLISHMENT OF NAVAL AIR STATION, 1,549 880 2,429 CORPUS CHRISTI AND REDESIGNATION AS NAVAL AIR FACILITY Consolidation of Naval Aviation training assets Reduces overhead and support costs Makes more effective use of a better physical plant in Pensacola Retains Navy presence Proposed relocation of Army Aviation Maintenance Activity from New Cumberland to this station would help offest impact Navy needs to reduce its Aviation train- ing base structure and this proposal helps do this Relocates Chief of Naval Aviation Training to Pensacola, thereby placing this head- quarters in a better position to manage aviation training STUDY CLOSURE OF WEBB AIR FORCE BASE, 1,860 700 2,560 BIG SPRING Excess Undergraduate Pilot Training base capacity Serious community land encroachment problem Does not have three runway systems required for effective Undergraduate Pilot Training (neither does Craig- 12. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL TEXAS (Continued) remaining five Undergraduate Pilot Training bases do) More substandard facilities than remaining five Undergraduate Pilot Training bases. Very substantial savings ($38 mil per year) - two months pay back VIRGINIA STUDY TERMINATION OF ARMY FACILITIES AT 690 560 1,250 ARLINGTON HALL, ARLINGTON Substandard facilities High cost operations Relocate to better facilities GSA would support residual DIA activities Long overdue Reduces civilian personnel end strength $25 mil MILCON required ten year pay back STUDY CLOSURE OF VINT HILL FARMS STATION, 700 425 1,125 WARRENTON Operational need diminished Residual essential activities can be accommodated elsewhere Very cost effective - one year pay back Eliminates single mission high cost installation 13. PRELIMINARY ESTIMATE OF PERSONNEL AFFECTED ACTION MIL CIV TOTAL VIRGINIA (Continued) STUDY CLOSURE OF FORT STORY, VIRGINIA BEACH 470 40 510 Personnel reduction only Property will continue to be retained by Army for training purposes Requires $7.3 MILCON Cost effective - four year pay back PUERTO RICO STUDY CLOSURE OF FORT BUCHANAN 170 470 640 Closure of single mission, high cost installation Reduces civilian personnel end strength Very cost effective - 6-month pay back Serves as only remaining Army military installation in Puerto Rico which is a source of large recruiting base for the volunteer Army. GUAM STUDY CLOSURE OF NAVAL SHIP REPAIR FACILITY, 7 330 337 AGANA High cost operation (US wages vs wages in the Philippines and Japan which are competitors of the Guam operation) Long ship transit times from Western Pacific - excess use of fuel, high cost Significant economic impact Issue will revolve around US vs Foreign bases/nationals. THE WHITE HOUSE WASHINGTON February 9, 1976 S ADMINISTRATIVELY CONFIDENTIAL MEMORANDUM FOR: JACK MARSH MAX FRIEDERSDORF FROM: RUSS ROURKE Ruse Bryce Harlow called to advise that he has been told that Bill Clements has been instructed to stand by for base closure announcements this week. It is reasonable to assume that everyone at the White House having an involvement in this matter is now "on board. 11 If that is not the case and if, indeed, Harlow's information is even correct, then it is quite another matter. I recognize fully that we have debated to death the wisdom of the aforementioned move and the best procedures to be followed. The Harlow call is, therefore strictly FYI. THE WHITE HOUSE washington John Tower - Corpus Christi - - out of loop - DOD- - Cheney operation - still under review FORD FEB 2 ( 1976 February 27, 1976 MEMORANDUM FOR THE PRESIDENT FROM: MAX L. FRIEDERSDORF SUBJECT: Senator Rd Brooke R-MASS) Attached is the letter just received from Senator Brooke pertaining to Ft. Devens. I recommend the President phone Senator Brooke today. bcc: Jack Marsh / Dick Cheney FORD is LISRABY 076838 UNITED STATES SENATE WASHINGTON, D.C. EDWARD W. BROOKE MASSACHUSETTS February 27, 1976 Dear Mr. President: May I bring to your attention a matter that is of the deepest concern to me and to which I hope you will give your personal attention. There are very persistent and very troubling reports that the Department of Defense will recommend the closing of Fort Devens Army Base in Ayer, Massachusetts. At the present time Massachusetts suffers from a 12 percent unemployment rate which is one of the highest in the country. To close Fort Devens and to thereby deprive the state's economy of the $100 million which this base generates annually, would be to saddle our state with an unbearable burden. On January 29, I had occasion to discuss this matter with Army Secretary Martin Hoffmann. And I understand full well the Army's need to close or realign certain bases in order to comply with the budgetary constraints mandated by Congress and the Office of Management and Budget. But Fort Devens' brief cannot and must not be limited to one department's fiscal difficulties. It must be expanded to consider the very drastic economic impact on Massachusetts and New England. It must also consider the economic impact such action would have on other Federal programs such as unemployment compensation and job retraining. And above all, it must be wedded to and steeped in the concept of equity. Fort Devens provides for 5,700 military personnel and 1,600 civilian jobs. It boasts an annual payroll of $86 million, with attendant economic benefits of over $20 million. To take these jobs and federal funds from Massachusetts would be a serious blow to her already grippled economy. - 2 - Moreover, it is my understanding from the Secretary of the Army that there is no study being done at this time to determine the impact of such an action on overall federal and state expenditures. I well remember the arguments put forth when the Boston Naval Shipyard was closed. Great savings were anticipated for the Department of Navy. But the Department of Defense never considered the tremendously increased expenditures by the Labor Department for job training programs; by the Commerce Department for EDA grants; by HEW for additional contributions to Massachusetts state programs; by the Department of Defense itself for the activities of the Office of Economic Adjustment; and by the Commonwealth of Massachusetts for increased social services and unemployment benefits. In light of these kinds of costs, action such as that contemplated for Fort Devens might well prove to be uneconomic and counterproductive to the spending reductions we all seek. The people of Massachusetts are ready, willing and able to shoulder their share of the burdens in these difficult economic times. But only if they know that their share is equal to those of other states in other regions. And in the past several years it is quite clear that these burdens have not been distributed equitably. In fact, since 1968 New England has suffered twenty-five percent of all base closings in the country. In Massachusetts alone, we have suffered the closing of the Springfield Armory, the Watertown Arsenal, the Boston Naval Shipyard, the Westover Air Force Base, and the Otis Air Force Base. To a people who already think these actions by the Federal Government were capricious and vindictive, the closing of Fort Devens would be the proverbial last straw. In serious jeopardy would be their belief that their government can and will decide problems in a fair and reasonable fashion. - 3 - I recognize your very great time restraints particularly at this moment, but I consider this matter to be of such overriding importance that I respectfully request an appointment at your earliest convenience. Sincerely yours, Edward of WL 'Brooke The President The White House Washington, D. C. R FOR, BALD MAR 15 1976 March 12, 1976 Dear Senator: This will acknowledge receipt of your letter of March 11 to the President expressing your strong objections to any action being taken with respect to Glasgow Air Force Base until an appropriate alternative use can be found. Please be assured the President will receive your letter without delay. I am certain it will be fully considered. With kindest regards, Sincerely, William T. Kendall Deputy Assistant to the President The Honorable Mike Manafield Majority Leader United States Senate Washington, D.C. 20510 bcc: w/incoming to Capt. Kollmorgen - - for DRAFT REPLY - Max Friedersdorf signature - ASAP bec: w/incoming to Jack Marsh - FYI WTK:JEB:VO:vo FORD i LIBRASY 07V83 MIKE MANSFIELD 3-12 MONTANA United States Senate Office of the Majority Header Mashington, D.C. 20510 March 11, 1976 Handedtowtic 3/12 The President The White House Washington, D. C. Dear Mr. President: Yesterday, I was visited by Walter B. LaBerge, Assistant Secre- tary of the Air Force for Research and Development, and several of his col- leagues. The purpose of their visit was to advise me of proposed studies of installations and activities in Montana. Mr. LaBerge stated that it was the intention of the Department of the Air Force to inactivate the Strategic Air Command "Satellite" units at Malmstrom and Glasgow Air Force Bases in Montana. This would entail a loss of 199 military and 11 civilian spaces at these two installations. It is my policy not to oppose reductions in force based on military requirements within the Department of Defense and feel that that matter is best left to the discretion of the Secretary of Defense. Therefore, I interpose no ob- jection to the inactivation of these SAC units. However, I vigorously object to any action concerning Glasgow Air Force Base which may relieve the Department of Defense, and specifically the Department of the Air Force, of its responsibility for maintaining this facility as a viable installation under its jurisdiction until such time as an appropriate alternative use can be found. Since 1966, when it was first announced that Glasgow Air Force Base, the newest in the Air Force inventory, was to be closed, I have taken the position that the people of Montana did not ask that the Base be es- tablished; the people of Montana did not object to it being closed for mili- tary reasons; and that these decisions rested entirely with the Federal government. But with this exercise of authority, there remained an attendant responsibility for the Administration to develop an alternative productive use for this outstanding facility in Northeastern Montana. It is clearly The President -2- March 11, 1976 beyond the capability of Glasgow, Valley County, or the State of Montana to support an installation of this size at that location, and it is too modern and complete to abandon. Under two previous Presidents and four Secretaries of Defense, the Department of the Air Force has been responsible for actively pursuing a program of civilian use of facilities not required by Federal agencies, as well as possible joint civilian aviation use of the airfield facilities. In 1973, I was advised by then Secretary of Defense, Melvin Laird, that "Glasgow Air Force Base will be almost fully occupied by military and other Federally supported activities." Despite this, the Department of Defense and the Department of the Air Force have been ineffective in finding a use for the Base other than establishing a small satellite of SAC for a limited period of time. No significant Defense-related long-term contracts have been developed from within the entire DOD effort except one or two small Army procurements as a temporary measure. This in spite of being advised by Deputy Secretary of Defense Clements on May 23, 1974, that immediate atten- tion would be provided to the matter of DOD contracts being placed at Glas- gow to facilitate its conversion from an active military post, and to pro- vide employment opportunities in that isolated area of the country. It is difficult for me to accept that a Department which spends approximately 30% of its entire budget of more than $100 billion on procurement has been un- able to identify a single significant long-term item or items to be fabricated, assembled, or produced at Glasgow. It is even more difficult to understand why such an outstanding air facility located in such an advantageous posi- tion for polar flights, both to Europe and the Far East, not to mention Alaska, has not been utilized in the government's vast transportation network. I can only assume that those charged with this responsibility have not ag- gressively sought a solution. In order for this Base to be reported excess and disposed of under Title 10 procedures, it will require the concurrence of the Senate Armed Ser- vices Committee. I feel that I must do all in my power to prevent this from happening. Further, in my capacity as Chairman of the Subcommittee on Mili- tary Construction of the Senate Committee on Appropriations, this matter will be gone into thoroughly. As a matter of responsibility, the Air Force should be required to maintain an adequate contracting agency at Glasgow to ad- minister the Base utilities, facilities, fire and police protection, tower operations, and tenant relationship so that those few on-going civilian en- terprises now there can continue. This requirement should remain until an alternative use is developed. I am requesting that the Air Force, which must produce a thorough environmental impact statement, also consider and study as a viable alternative the adaptability of the Base to a state energy complex encompassing a gasification plant, a Char Oil Energy Development The President -3- March 11, 1976 Plant; and an electrical generation plant to supply both electric utilities and process steam for the total energy center. This is one of the more promis- ing alternatives being offered for study, and if it is successfully processed will relieve the Department of Defense from all responsibility at the Base. In this regard, the cooperation of ERDA and FEA will be absolutely necessary. Of all Air Force installations listed on the current notification for inactivation, Glasgow is probably the only one which will not be eagerly sought after by local communities and private entrepeneurs for alternative civilian use. Other states with heavy population and requirements for in- dustrial expansion will have few problems in transforming an active military installation to a civilian industrial park. I agree that Glasgow Air Force Base is the most difficult situation to face the Office of Economic Adjust- ment in the Department of Defense and, therefore, should receive the highest priority in their efforts to seek nationwide civilian use of excess instal- lations. In the meantime, I would appreciate it if no action is taken to diminish the equipment or facilities at Glasgow until Congressional approval is obtained. With best personal wishes, I am Respectfully yours, frihe manafred APR 1 1976 THE WHITE HOUSE WASHINGTON Date April 1, 1976 TO: Jack Marsh FROM: CHARLES LEPPERT Please Handle For Your Information X Per Our Conversation Other: V UP-058 (BASES-STATES) WASHINGTON (UPI) -- HERE ARE THE BASES INCLUDED IN THE ARMY'S PLANS TO IMPOSE CUTBACKS TO SAVE $42 MILLION A YEAR (RIF DENOTES REDUCTION IN FORCE): BASE ACTION MILITARY CIVILIAN JOBS JOBS CALIFORNIA: 92 684 FT. MACARTHUR CLOSURE 92 178 FT. ORD RIF 506 DISTRICT OF COLUMBIA: 5 10 WASHINGTON RECRUIT COMMAND RIF 5 10 IDAHO: 11 12 BOISE RECRUIT COMMAND RIF 11 12 ILLINOIS: 15 733 ROCK ISLAND ARSENAL MOVE TOOL SET UNIT 320 SAVANNA ARMY DEPOT CLOSURE 15 413 INDIANA: 4 438 JEFFERSON PROVING GROUND CLOSURE 4 438 KANSAS: - 16 53 SCHILLING MANOR CLOSURE 16 53 MARYLAND: 1,603 860 ABERDEEN PROV. GRND. MOVE ORDINANCE SCHOOL 1,475 720 TRANSPORTATION COURSES 103 21 FT. DETRICK MAKE SUBINSTALLATION 25 119 MASSACHUSETTS: 4,372 846 FT. DEVENS END ACTIVE ARMY OPS 4,372 846 MICHIGAN: 21 234 SELFRIDGE AFB CHANGE HOUSING INSTLN 21 234 MONTANA: 9 12 HELENA RECRUIT COMMAND RIF 9 12 NEW JERSEY: 280 PICATINNY ARSENAL RIF 280 NEW YORK: 451 752 FTS. HAMILTON, TOTTEN CLOSURE 410 604 STEWART ANNEX CHANGE HOUSING INSTLN 41 148 NORTH DAKOTA: 14 12 FARGO RECRUIT COMMAND CLOSURE 14 12 PENNSYLVANIA: 167 2,237 FT. INDIANTOWN GAP END ACTIVE ARMY OPS 132 819 NEW CUMBERLAND DEPOT MOVE AVIATION MAINT 35 1,418 PUERTO RICO: 168 466 FT. BUCHANAN CLOSURE 168 466 RHODE ISLAND: 12 13 PROVIDENCE RECRUIT COMMAND RIF 12 13 SOUTH DAKOTA: 13 12 SIOUX FALLS RECRUIT COMMAND RIF 13 12 TEXAS: 115 58 AMARILLO RECRUIT COMMAND RIF 12 9 FT. HOOD RIF 103 49 VIRGINIA: 1,886 1,073 ARLINGTON HILL RELOCATE 667 588 FT. STORY RELOCATE TROOPS 468 37 VINT HILL FARMS CLOSURE ALD FORD LIBRARY 751 448 UPI 04-01 12:57 PES ASSOCIATE DIRECTOR OFFICE OF MANAGEMENT AND BUDGET 9/13/76 TO: Mr. Wolthuis FROM: Mr. Ogilvie 10 Pane meDiNoill 7 pm Blothing HALD R. FORD send barlto Don Ogehi ARMY RESPONSE Dear Mr. Breckinridge [Ford]: During the past several months the President has been requested to review the Army's realignment action at the Lexington-Bluegrass Army Depot (LBAD). This re- view has confirmed the original decision to phase down LBAD. In view of recent requests, I have again reviewed the case at the request of the President. I find that the decision to realign LBAD remains valid. The decision to realign the mission at LBAD was not an easy one. After the cessation of hostilities in South East Asia, there began a significant decline in the communication-electronics maintenance and supply work- load. The decline necessitated a major curtailment in the workforce. The combined capacities at the Lexington- Bluegrass, Sacramento, and Tobyhanna depots, our communication and electronic depots, exceeded the Army's requirements in the electronics maintenance functional area. Substantial management efficiencies were to be gained by consolidating into two depots. The facilities, location and other key missions assigned to the Tobyhanna, Sacramento, and Lexington-Bluegrass Depots were compared and the study 2 indicated a reduction at Lexington-Bluegrass. Most im- portantly, the Army gains the greatest total savings from realigning at LBAD. As you know, on April 1, 1976 the Army announced a series of realignments to effectuate approximately 6,000 additional civilian space reductions which is in consonance with the FY 1977 budget submitted by the President. The Congress obtained an additional civilian manpower reduction on Defense, resulting in the loss of an additional 1814 spaces by the Army. These reductions further highlight the dollar and manpower constraints within which the Army must live. The LBAD action was an early step in the Army's worldwide program to live within the budgetary constraints of a peacetime era while fielding an effective fighting force ;a program that continues to date. There is concern over the report that purports to rank LBAD number one among Army depots. In previous correspondence, the Army has explained that the Productivity and Effectiveness Report only rates each depot against itself and does not mean that LBAD is the best or most efficient depot in the system. The report presents data based on a 1972 start point only as a self-improvement indicator. The Army must reduce its workforce not on the basis of improvement but in a manner that results in the most effective defense force possible. 3 In summary, I have reviewed in detail the realignment and the Secretary of Defense concurs with my recommendation that the realignment must occur. LBAD, when reduced to a depot activity, will result in substantial savings after the realignment costs have been incurred. Delays in im- plementing our plan are costly to the taxpayers and threaten to jeopardize the readiness of our Army in the field. Ac- cordingly, the Army will proceed with the phase down. Sincerely, Martin R. Hoffmann TOBACCO ICS Court Souse SUILDING 107 CHRAMSION Congress of the United States FAMILY FAHWS RUMAL DEVELOPMENT MENTUCKY 20007 DEPARTMENT DESPATIONS INVESTIGATIONS AND OVERSIC (SA) 233-1301 House of Representations FEDERAL BUILDING SMALL BUSINESS COVINGTON. KINTUCKY 41011 Mashington, B.E. 20515 (106) 131-2599 SBA AND SAICLECISLATION SBA OVERSIGHT AND May 24, 1976 MINGRITY ENTERPRISE The President The White House Washington, D.C. Dear Mr. President: This has reference to my telephone conversation earlier today with Deputy Assistant Charlie Leppert, concerning your announced re- view of the Army's decision to phase down Lexington Blue Grass Army Depot (LEAD), as reported on May 24, 1976 in the Lexington Herald. I am pleased that you have asked for the "specific facts" for your personal study upon returning to the White House and am writing to bring to your attention the comprehensive file which I provided nearly a year ago outlining facts which I think you will find fully justify reversing the Army's decision to phase back LEAD by 2600 even though LBAD has consistently been ranked No. 1 in the nation in efficiency and economy. I presented this material to your then Deputy Assistant Vernon Loen on July 2, 1975, aboard Air Force 1, enroute to a conference on domestic and economic affairs in Cincinnati, Chio. My detailed report included an analysis of some thirteen letters which I had written to the then Army Secretary "Bo" Calloway, revealing significant errors in the figures, calculations and logic which the military relied upon in Project CONCISE, which has been used as justi- fication for the proposed 2600 job cut back at the Depot. For your convenience I am enclosing herewith a copy of my July 2 letter and referenced correspondence with the Secretary of the Army. In addition to this earlier material, I call to your attention and enclose for your perusal, additional data further addressing the areas of comparative costs between the three electronics depots; their overhead ratios; effectiveness and efficiency and the total installation point-of-view concept. A. Lexington is the lowest cost depot. The following rate comparison table between the three electronics depots shows that Lexington operates at a lower cost than the other two. THIS STATIONERY PRINTED ON PAPER MADE WITH RECYCLED FIBERS 2 Maintenance Cost Recovery Rate Per Hour FY-75 Present Present Rate Difference Lexington $11.79 $13.22 Sacramento 15.03 18.65 $5.43 Tobyhanna 12.34 14.15 ÷ .93 It costs $5.43 more at Sacramento and $.93 more at Tobyhanna for each direct manhour worked. For each million manhours worked at Lexington in lieu of Sacramento, savings in the amount of $5,430,000 would accrue. The difference between Tobyhanna and Lexington would be $930,000 for one million manhours. The Army projected 2,530 manyears of electronics maintenance workload for the steady state year 1978. This equates to over 4.25 million direct manhours per year. Please note my letter of March 4, 1975, addressed to Secretary Calloway stating, among other things, that the following rates were in effect as utilized by AMC Comptroller during the first quarter, Fiscal Year 1975 (the up-date period for CONCISE) as follows: Lexington $11.79 Tobyhanna 12.34 Sacramento 15.03 The Secretary's reply under date of April 18, 1975, stated basically that (1) LBAD's maintenance labor costs were lower than SAAD's but that the supply, supply support, and overhead costs must also be considered, and that at best the rates could not be used because they fluctuate. The $11.79 labor rate includes all overhead supply costs. The supply costs referred to made no mention of the supply rates for the same period which were $12.44 for LBAD, $13.60 for SAAD, and $13.19 for TOAD. Your attention is invited to Enclosure 1, documentation prepared by the Major Item Data Agency (MIDA) which controls depot workloads. The source of the present SAAD and TOAD rates is at En- closure 2. LBAD was not included in this package due to a misunder- standing by MIDA. The "present" LBAD rates were submitted to MIDA (Enclosure 3) and approved by MIDA (Enclosure 4). FORD & LIBRAR BRALD 3 Secretary Calloway's response (Enclosure 5) to my March 14th letter (Enclosure 6) omitted, as you will note, corresponding SAAD rates. The source of the actual first and second quarter fiscal year rates used in the Secretary's reply is unknown, but it is known that those cited for LBAD are erroneous. The actual average maintenance rate used by LBAD was $11.79 for both the first and second quarters. Enclosure 7 contains the wage grade payroll scale for LBAD, SAAD and TOAD. When coupled with LBAD's efficiency, ef- fectiveness, and ratio of overhead to direct cost, there is no doubt that LBAD is far more economical than SAAD. B. Lexington has the lowest maintenance overhead cost: The following table reflects the ratio of direct dollars to indirect dollars expended by each depot. Ratio of Direct $ to Overhead Nov. -74 Nov. 75 Present Direct Overhead Direct Overhead Direct Overhead Lexington 1.00 .65 1.00 .69 1.00 .69 Sacramento 1.00 .92 1.00 .92 1.00 1.02 Tobyhanna 1.00 .77 1.00 .79 1.00 .83 Lexington has a much better ratio of direct to overhead than the other two depots. During Fiscal Years 72, 73, and 74 LBAD was ranked No. 1 in the AMC System for its best ratio of direct to indirect labor cost. This ranking was published by the Army in the AMC-MAPS reports dated October 1974. This data, Mr. President, exemplifies the management effort at LEAD to produce the most efficient operation in the system. Needless to say morale, which has been of the highest order over the years, has not been helped by this bureaucratic lack of recognition. C. Lexington is the most effective and efficient depot. The effectiveness system, as used by the Army, measures how well a depot performs its mission while the efficiency system evaluates the economical application of people and money. When considered together, these provide a comprehensive evaluation system for depot management. The Army utilizes this system to relatively rank all of its eleven depots against each other. The following table reflects the ranking of the electronics maintenance depots for Fiscal Years 74 and 75. FORD is LIBRARY ERALD 4 Depot Rankings FY-74 FY-75 Lexington 1 1 Sacramento 10 11 Tobyhanna 3 8 It is difficult to understand a decision to phase back the Lexington Blue Grass Army Depot which is the lowest cost depot, and which ranks No. 1 in efficiency and effectiveness, other than to specu- late that this decision was based on political considerations, without regard to cost efficiency and depot performance. The depot rankings of efficiency and effectiveness have been pro- vided to Department of the Army (see Enclosure 8). Army's response addressed only the efficiency portion of the system saying that it only measures against its own past performance (see Enclosure 9). Army does not mention effectiveness which does measure all depots against common standards. When considered together, depots are measured by how well their missions are performed and evaluates their economical ap- plication of people and money. Therefore, contrary to Army's conten- tion, the combined ranking does measure depot against depot. D. Installation point-of-view concept. This concept is utilized by Army to predict the savings to be realized by phasing down or closing an installation. This methodology uses two factors in ar- riving at average installation manyear costs. These factors are: 1. Manyears worked at an installation. 2. Total cost to operate the installation including the cost of items produced. To obtain the average cost per manyear worked the total cost is divided by the number of manyears. These average manyear costs of the three electronics depots were compared, and the depot with the highest average manyear cost considered the most expensive to operate. This would be a valid system if each depot had identical missions and produced identical items. In the case of the electronics depots there is 2 substantive difference in the missions of the three depots. LBAD performs the major portion of design, fabrication and assembly known as quick reaction projects which can be categorized as research and development. Per- centage breakout of this workload by depot is as follows: Lexington 60 Sacramento 11 FORD is LIBRA GOLD Tobyhanna 29 5 Fifty-five (55) percent of funds allocated =0 perform this type of work is required for material, equipment and travel expense. The result is that these expenses are reflected in the total depot expense, inflating the cost above depots not having like missions. These costs are a direct result of the mission performed and are not controllable by the depot. Because of this Quick Reaction Mission, Lexington Blue Grass Army Depot was penalized. The following reflects the average maintenance manyear cost at Lexington with and without the Quick Reaction Project influence: Average Manyear Cost Including Quick Reaction Projects* Depot Salary Other Costs Average Cost Per Man Year Lexington $11,710 $6,737 (3,031) $18,447 (14,741) Sacramento 13,422 3,895 17,317 Tobyhanna 11,412 3,031 14,493 *Source - GAO Removing the influence of the quick reaction projects reduces the Lexington costs substantially bringing the average cost per manyear in line with Tobyhanna. The quick reaction project has greatly penalized Lexington, while Sacramento with very little of this type work is by far the highest in cost. The GAO accepted this installation point-of-view concept as one that could be used, but it clearly discriminates against an installation having that mission. The above data was furnished GAO who in turn questioned the Army. The draft GAO statement received in September 1975 stated "According to Army officials, the other two depots also have unique workloads and assigned missions which are reflected in their costs. They claim that their cost comparison tried to recognize some of these differences. However, they readily point out that they did not intend to make all options equal or identical since this simply was not feasible" (emphasis added). It is impossible for SAAD or TOAD to have unique missions comparable to LBAD's QRP because their total workload's "Other Cost" (including their uniques) is less than the "Other Costs" for QRP alone at LBAD. Enclosure 10 breaks out the QRP "Other Costs" from that used by CONCISE (Encl. 11). QRP consumed 55% of LBAD's "Other Costs" but only 13.3% of our funded manyears of workload. The only possible way that Army could conclude LBAD is more expensive than SAAD or TOAD is to include these noncontrollable, extremely high dollar costs in our costs per funded manyear. G7V3 LIBRA The Army has stated also that the ORP workload was $12.26 million during FY-75 and would decrease to about $5.25 million for Fiscal year 1976 and a similar amount for 1977 and 1973. However, logic and common sense dictate that any future decrease has no bearing on the argument that the past QRP workload inflated LBAD's cost per funded manyear. Army does not have to identify ORP or other unique missions at the three depots in order to perform a fair evaluation. They need only to exclude the cost elements that are not variable between the installations from the "Other Cost" rate used by CONCISE. The "Other Costs" are broken down by element at Enclosure 10. An alternative average might involve a calculation to determine the cost of completing Army's planned workload at each installation. I believe this would be a fairer system in that it would allow all options of CONCISE to be considered on an equal basis. Mr. President, I submit for your special consideration without reference to prior argumentation, a new element, viz., that Army should rescind their action to further phase back the Lexington Blue Grass Army Depot since actions taken to date have resulted in a reduction of maintenance production personnel at the three depots to a point near the Fiscal Year 78 steady state objective. Each of the three depots could reduce their productive work force to bring into balance workload requirements and power restraints. Overhead personnel should also be reduced to maintain an efficient ratio of direct to indirect costs. The advantages of this recommenda tion are as follows: 1. Mobilization Base Retained. The capacity to meet war- time requirements can be expanded without resorting to three-shift, seven day operations. 2. Most Effective, Efficient and Economical Depot Retained. 3. Skill capabilities Retained. Closure of the Lexington Maintenance facility will result in the loss of peculiar skills utilized to support world wide defense missions. These skills are not available at either Sacramento or Tobyhanna. Examples of these are: a. Satellite Communication Terminals b. Missile Monitor Systems c. Automatic Secure Voice Communication Systems d. Combat Service Support Systems e. Defense Communication System Contingency Stations f. World Wide Primary Technical Control Centers. As Lexington employees have no transfer of function rights, or do not prefer to leave this locality, these skills will be lost to the Army. FORD give LIVERIT 7 4. Army Steady State Workload Objective Attained. à good parcentage of the savings objective has already been realized by a reduction of personnel since the CONCISE announcement. For instance, the productive personnel in the three depot maintenance activities now total 2674 people. The Army's objective was to reach a steady state workload of 2530 people in FY-78. To attain this goal only 144 people would have to be reduced in the next two years. This can be attained through attrition. 5. Community Impact Reduced. Reduction would be spread over three installations (in three states) lessening the community effect. 6. Less Contract to Industry Required. With capabilities at three depots, less work will have to be contracted to industry. Past experience has shown that contracts with industry are: a. More expensive. The Army claims that it does not have the funds to maintain the three depot maintenance facilities but admits that contracts to industry must be let to eliminate the maintenance work back-logged. If money can be made available for these contracts it can be diverted to accomplish this backlog most economically in-house. b. Less responsive to Army requirements. C. Rework of equipment repaired by industry is required in many instances. Failing the acceptance of this recomendation, the Army should phase down the depot highest in cost, and it's certainly illogical to phase down a depot which has consistently ranked No. 1 in the depot effective- ness and efficiency system and which operates at the lowest cost. Based upon the compelling facts of the situation it is not in the best interests of either our Nation's defense or the prudent use of tax- payer's dollars, to phase back LBAD, the most cost effective, innovative, and efficient facility in our depot system. Appreciating the great demands made on your attention, may I hear from you at your early convenience and prior to the announcement or, preferably, making of any final decision. With best wishes, I am Respectfully yours, Sn J. white John E. Breckinridge & FORD STA LIBRARY APPROPRIATIONS United States Senale WASHINGTON. D.C. 20510 July 9, 1976 Honorable Gerald R. Ford The President MF The White House 1600 Pennsylvania Avenue Washington, D.C. 20500 Dear President Ford: In further reference to our recent correspondence regarding the Lexington Blue Grass Army Depot, let me begin by saying that I could not agree more that moving "toward an efficient allocation of resources" should be a goal of the Department of Defense. I write today because of my desire for this "efficient allocation" and because of your commitment to review the Army's decision to cut back at the depot. In your July 3 letter to me, you indicated that "relevant data on the realignment of the depot" had been forwarded to you by Secretary Hoffman. Mr. President, all of us know what the Army's position is. What I, on behalf of the depot employees, am seeking to determine is what you think should be done after you have reviewed both sides of the issue. In the interest of allowing 2 fair exchange of views on this most important matter, I respectfully request that opponents of the cutback be allowed to analyze the data provided you by Secretary Hoffman Strict the ennouncement of the original decision, there has not been a complete, impartial review of information other than that given by the Army itself. Once we know the figures being used by the Army, I ask that you allow opponents of the cutback to make a detailed response. I believe then we will be in a much better position to discuss the situation. However, in the meantime, I believe you should be aware of the points listed below: 1. LBAD has the lowest labor pay scale of the electronic depots. 2. LEAD also has the lowest cost recovery rates. Honorable Gerald R. Ford Page 2 July 9, 1976 3. In addition to the above, LBAD has ranked Number One in the Army's own efficiency and effectiveness measurement system every quarter since July 1973, including the first half of FY 76, the most recent available information. This rating is in comparison with all Army depots. LBAD has stayed Number One even under the trying conditions the Army has placed them under. 4. The Department of the Army made an error in its method of determining the depot to phase down. LBAD can operate cheaper than it's sister depots of Tobyhanna and Sacramento. If the electronics workload (4.4 million man hours) would be divided between Tobyhanna and Lexington, the government would save $11.9 million per year over the current plans. If it were divided between Sacramento and Lexington, we would save $2.046 million per year. If one depot could do all the work, Lexington could complete it $23.9 million cheaper than Sacramento and $4.1 million cheaper than Tobyhanna. In short, every one million manhours of work taken from LBAD and given to Sacramento will cost the tax payer an additional $5.43 million per year. Likewise, for every one million man hours of work taken from LBAD to give to Tobyhanna will cost the tax payer $.9 million per year. Mr. President, I respectfully request you to have the Army suspend any action until such time as you can examine both sides of this issue. Sincerely, Walter D. Huddleston On Block Depot NPW hel Front Leac Oc By JOHN ALEXANDER 8/27 Lesder Stall Writer Apparently the decision to eliminate 2,500 jobs at the Lexington Blue Grass Army Depot to to be enforced as soon as a court injunction is Cutbacks lifted And the President is powerless to fatsiers The decision was reflected in a letter made public this morning by Sen Wendell Ford, D-Ky, which had been forwarded B him by a constitu- ent It apparently had been malled a employes 2' the depot. TX letter says that the "He had boned to keep the President bis reviewed the depot open," the Walts The Army plans a transfer decision to in back the House aid, The forms x water to the bues a a work (erce in the depot at in Eight r' till 3 other/ederal jobs has deptined to revenue It needs need a defense in Thereiore. the letter SAYS, Various Court Arthol Congres. the Army will proced with Various court actions have the cid 23 5002 as at x The Congress a ICT been time during the past profing court injection is REQUIRE & entra money for in. to delive the doing reserved. the dalse budget which And Ref. John End Tx ket is signed by world have in needed to ridge D-33, caused a 3 Mr) Gn Bert David, who is keep the depot at full states deputy chief of be strength obviously feeling states the callects are Decessary is empais reasons eral Accossing Citize mix Presidential Response to be Exts to determine the Presiders Segrab the base really was the meet President Ford and Special efficient LT the country. Arrident Jerry Jones to The President regreb the FD hadling deals of 11 decision extressly," the A strvey earlier this rever as the cotherk is the Whise House ald pata Apia mained 14. President were both b VS. base B to & must elitial Col, today = cosid at be The Pentage confirmed boweres. & Pertages pine reached for comment. if lets a morning - specify will - proceed. and # # know of = Filste House Responds reason tie citization wait No trees response from XI proced as soca IS the is Prident #25 forthcom- injurction in Had log: however the White House - whe ming AT Con-Taird Strangth deer this: the President 53 The plans are to at 1 was reporting a amt in the mapower at = depot packs which probibited :- by about terents parties from Dating public commed reported of the 3,600 which D & letter without degist, were. filled there at the the what bigit of stirity. = about 1,100 will It LS: The the citizens in completed FORD is LIBRARY Q7V ST4 Discrict, KENTUCKY AGRICULTURE DISTRICT OFFICES: TOBACCO 305 Court SCUARE BUILDING Congress of the United States FAMILY FAP*5 AND RURAL DEVELOPMENT TO: CHEAPSIDE DEPARTMENT OPERATIONS. LEXINGTON, KENTUCKY 40507 INVESTIGATIONS AND OVERSIGHT (506) 253-1301 house of Representatibes 10 FEDERAL BUILDING SMALL BUSINESS COVINGTON, KENTUCKY 41011 Mashington, B.C. 20515 SBCOMMITTEES: (SCB) 431-2699 S3A AND saic LEGISLATION SBA OVERSIGHT AND August 27, 1976 MINORITY ENTERPRISE The President The White House Washington, D.C. ME Dear Mr. President: I am enclosing for your information a copy of a news article which appeared on the front page of the Lexington Leader this afternoon, the release of which my staff has verified with your press office. I quote it in pertinent part for your ready reference as follows: "He had hoped (the President) to keep the depot open,' the White House said, 'but found it difficult in light of the economic mood on defense in Congress. 'The Congress did not approve the extra money for the defense budget which would have been needed to keep the depot at full strength, obviously feeling the cutbacks are necessary for economic reasons. "The President regrets the decision extremely,' the White House said. Needless to say I was both surprised and disturbed to read this statement, attributed to you as the basis for your agreement with Anny's decision to cut back the Lexington Bluegrass Army Depot (LBAD), not only in view of the fact that I have received only interim responses to my substantive letters of May 24, 1976 and July 20, 1976, forwarded since your announced decision of May 20 to review the matter, but more particu- larly because there is presently pending before the House and Senate conferees the largest defense budget in the history of the world - some 112 odd billion dollars -- a budget larger even than those which we experienced during the years of World War II; a budget item I might add, which I continually support. It is true that the Congress has made some reductions in the pending defense budget -- a total reduction of $2,342,000,000 (including a postponement in B-1 procurement, which I voted against) in other areas FORD MARALD LIBRARY THIS STATIONERY PRINTED ON PAPER MADE WITH RECYCLED FIBERS where the reductions might be made without harming national defense, such Army permanent station funds (travel funds) and the patrol hydrofoil. program which many considered somewhat large and elaborate). However, the Congress, both House and Senate, have agreed to every cent requested the Defense Department for Fiscal Year 1977 for all depot operations. Firty million of this $710 million over-all depot operation budget is for communications and electronics repair/overhaul, in which LOAD is pre-eminent. This should be compared with the $60.3 million for FY- 76 and the $33.1 million for FY 75 - the period in which we were gearing down from the Vietnam War. Mr. President, I submit that the stated basis for agreeing with Army's announced plan under Project CONCISE to phase back the most efficient and effective depot in our 11 depot system does not ring true, and I urge you to designate someone more concerned with the facts than serving as apologist for the Army's erroneous decision, to reconsider in your behalf the position which has been announced on a basis unsupported by the facts. Sincerely yours, - -e th John B. Breckinridge FORD i LIBRAR 077 Saturday Morning, July 10, 1976 Page A-6 HERALD- LEADER Proud Time For Depot Employes and staff members of the down has been dissolved by the U.S. Lexington-Blue Grass Army Depot have Court of Appeals. There was hope that more reason than usual to be proud of the new ratings might have some helpful their No. 1 ranking in the Army effect on the decision. This was especial- Materiel Command. ly true when one considers that a facility In view of the announced cutback in Sacramento, Calif., scheduled to get and phase-down of the Lexington and the local depot's maintenance mission, Richmond facilities, workers could ranked 12th, or last. A depot at Tobyhan- have, with some justification, adopted a na, Pa., slated to receive the supply mis- lame-duck attitude and let performance sion, ranked fifth. quality go by the wayside. To their everlasting credit; they didn't and as 2 Those rankings certainly should give result the Army's own ranking system the Kentucky congressional delegation judged them the most efficient and and the Save the Depot Committee most effective. some help in their efforts to stop the phase-down. The local depot has, year-in and In a system where more and more year-out, held top ratings, and we are emphasis is put on efficiency and plain gratified to see those rankings main- old getting the job done, we think the tained even in the face of adversity. government-military establishment An injunction against the phase should look to Lexington. ALL FORD LIBRARY SUBCOMMITTEES: DISTRICT OFFICES: TORACCO 107 CHEAPSIDE Congress of the United States FAMILY FARMS AND PUPAL 205 COURT SOUARE BUILDING DEVELOPMENT DEPARTMENT OPERATIONS. LEXINGTON. KENTUCKY 40507 INVESTIGATIONS AND OVERSIG (504) 253-1501 House of Representatives 1, FEDERAL BUILDING SMALL BUSINESS CUVINGTON. KENTUCKY 41011 Washington, B.C. 20515 SUBCOMMITTEES: (506) 431-2599 SBA AND SBIC LEGISLATION SOA OVERSIGHT AND July 20, 1976 MINORITY ENTERPRISE The President The White House Washington, D.C. Dear Mr. President: MF With further reference to my earlier correspondence con- cerning Army's decision to phase down the Lexington Blue Grass Army Depot (LBAD), I enclose a copy of an editorial which ap- peared in the Lexington Herald-Leader on Saturday morning, July 10, 1976, and a copy. of Army's Productivity Trend and Ef- fectiveness Performance Evaluation for the first half of Fiscal Year 1976. The report previously entitled "Efficiency and Effectiveness Report", has been renamed, as you may be aware. Your particular attention is directed to pages 49 and 50 of the report, reflecting that LBAD continues to hold the No. I position which it initially established in Fiscal Year 1973 over all other similar Army Depots. You will further note, Mr. Presi- dent, that Tobyhanna and Sacramento, which are scheduled to receive LBAD's maintenance mission and supply mission, rank 5th and 12th, respectively. This information exemplifies, once again, the established management effort at LBAD to continue to maintain the most ef- ficient operation in the system. Needless to say morale, which has been of the highest order over the years, has not been helped by this bureaucratic lack of recognition. I submit once again that it is not in the best interest of either our Nation's defense, or the prudent use of taxpayer's dollars, to proceed with a phase back of LEAD, the most cost effective, innovative, and efficient facility in our depot system. GERALD FORD VIBRARY Page 2 T shall greatly appreciate your consideration of the enclosed material in connection with the review which you have been making of Army's decision based upon Project CONCISE. May I hear from you in this matter at your early con- venience. Sincerely yours, 2 7. write John B. Breckinridge FORD is LIBRARY COMMERCE AERONAUTICAL AND SPACE SCIENCES United States Senate WASHINGTON, D.C. 20510 July 19, 1976 Dear Mr. President: In regard to your continuing review of the Army's decision to phase out the mission of the Lexington-Blue Grass Army Depot, I want to call your attention to the most recent DARCOM Productivity Trend and Effectiveness Performance Evaluation. This document was prepared by the Headquarters United States Army Material Command and once again, the Lexington Depot was ranked as the most productive and effective operation in the Army as it has since FY-73 by this measurement system. I am enclosing a copy of this evaluation for your information and specifically would invite your attention to pages 49 and 50. Please note that the Tobyhanna and Sacramento Depots, to which the Army proposes to transfer the Lexington- Blue Grass mission, are ranked fifth and last, respectively. Quite frankly, Mr. President, it would appear to me that if the Army would go to the time and effort to prepare a detailed evaluation of this nature, serious consideration would be given to its results. Obviously, this is not the case which seems both paradoxical and contrary to the very purpose of such an evaluation. As you complete your review, I urge you to seek an explanation as to why this and prior evaluations which ranked the Lexington-Blue Grass Depot first in both productivity and efficiency, were seemingly ignored. In my opinion, this should have a significant bearing on your personal review of this matter, and I would hope influence you that this decision is wrong and should be reversed. Sincerely, Audell Jard The President The White House Washington, D. C. DISTRICT OFFICES: 108 WATTS FEDERAL BUILDING 172-C NEW FEDERAL BUILDING 314 FEDERAL BUILDING FRANKFORT, KENTUCKY 40501 LOUISVILLE, KENTUCKY 40202 OWENSBORO. KENTUCKY 42301 (502) 223-2335 (502) 582-6251 (502) 685-5158 THE WHITE HOUSE WASHINGTON Tim me Ree Carter Blue Bran Ordnance Depot portpent clossy 6 marths. made injury at DOD income correguenden ( Jury Jones) Sen. Huddleston guoles Juny Jones -brought= call crooss alan THE white HOUSE washington alan Woods * Suggest Tim he Carter sex Dame type letter al Huddlestan once at clears Offiber of al. - THE WHITE HOUSE washington Wolthing- - 1) Janes quote a) mby Juck s) status- RJues here where call canner in -* was mediatly prior to Ky. punnary. & Wollum unto it - he prepaced dieft require, sent the Don Agabe for his chop; is in crolding action, pending count nation THE WHITE HOUSE WASHINGTON Chency called from airplane reporter Ogaine There was a report an TI's deals the next day. June 23, 1976 Dear Senator: This will acknowledge receipt of your June 22 letter to the President concerning the Blue Grass Army Depot in Lazington, You may be assured it will be called promptly to the President's attention. With kind regards, Sincerely, William T. Kendall Deputy Assistant to the President The Henorable Walter D, Huddleston United States Senate Washington, D.C. 20510 bee: w/incoming to Bab Wolthuis for further handling and DRAFT WTK:JEB:VO:vo FORD of GIVE LIBRARY DOLESTON COMMITTEES: UCKY AGRICULTURE AND FORESTRY APPROPRIATIONS Mail Senate WASHINGTON. D.C. 20510 June 22, 1976 Jun 23 AM 10 48 HAND DELIVERED RECEP SECURITY UNIT THE WNITE HOUSE The Honorable Gerald Ford WASHINGTON The White House Washington, D.C. not Dear Mr. President: Perhaps the most serious economic blow that central and eastern Kentucky has sustained in the past two years was the Defense Department's decision to cut back operations at the Blue Grass Army Depot in Lexington, with the loss of approxi- mately 2,600 jobs. Since that time, the people of central and eastern Kentucky and the Kentucky congressional delegation have made a major effort to forestall that decision, based on the fact that the Blue Grass depot has been rated the most efficient depot of its kind in the country. Court action has also been instituted and the case is now before the Fifth Circuit Court of Appeals. On May 24, the day before the presidential primary in Kentucky, Mr. Jerry Jones of your staff was quoted in a page one story in the Lexington Herald as saying that you were "personally looking into the proposed cutbacks" and that you had ordered "specific facts" on the matter to be ready for your review upon your return to Washington. Earlier, in a press conference in Washington with members of the Kentucky press corps - on May 20th -- you stated, in response to a question, "I will take a look at it." Needless to say, those comments - especially the banner story in the Herald gave great hope to the people of central and eastern Kentucky. Employees who stood to lose their jobs felt that at last they would get a fair review of the Defense Department's decision -- which, incidentally, was made after contrary assurances were given the Kentucky congressional delegation. The Honorable Gerald Ford June 22, 1976 Page 2 I write today to inquire as to the status of that personal review, if indeed there is to be one. My office has made two inquiries to the White House in this regard. The first reply was that the review has been done and the White House is "sticking by the original Army decision. " That was last week. If true, it could not have been much of a review. And, if so, why was no public announcement made? Another inquiry was made to the office of Mr. Jones, who promised the "personal" review by you. That resulted in a referral to the Office of Management and Budget, which stated that the only review taking place was the one already in progress by the Department of the Army in response to the congressional delegation. This inquiry also produced the startling information that results of the inquiry would not be made public until after the court action is resolved. All of which raises the question in my mind as to whether a "personal review" by the President was ever contemplated, or whether the promise of a review was made by your staff with May 25th in mind. In any event, I urge you to seriously undertake a genuine review of this Defense Department decision, which I believe was wrong and which I believe the facts will show to be wrong. You have raised high hopes in Kentucky with your promise; I just hope you will follow through on that promise. Sincerely, Walter D. Huddleston Wendell Zorl THE WHITE HOUSE WASHINGTON PENDING Friday 8/27/76 MiL.A.d. Bob-- Attached is a draft received today from the Military Aide's ofc. in response to Senator Ford's July 19 letter to the President on Lexington-Blue Grass. Bill Kendall would prefer if it could be sent out over someone else's signature (instead of a WTK signature). Also, I am attaching the original of the August 26 letter to the President from Senator Ford, which we received today and which encloses an interesting letter from a Dept. of the Army official. (Note that the name of the person to whom this letter was addressed has been blocked out.) How should this letter from Senator Ford be handled? You may be interested to know that we have in our pending file a July 20 letter to the President from Congressman Breckinridge on the same matter as the July 19 letter from Senator Ford. A draft for Breckinridge is expected next week and will probably be similar to the one furnished for Senator Ford. Judy Berg-Hansen Judy 8/30 Bob asked me to find and to whom the 8/10 Best David letter was sent. Called mil. aide found and that the letter was sent to b was referred to Shupe's of x414 9. Robt. Palmer, Jr., Rt. S, Log Lick Rd., WiNchester, Ky. 40391. Told Bob. jeb .. MAGNUSON, WASH., CHAIRMAN 1. JAMES B. PEARSON, KANS. 2. AGERT P. GRIFFIN, MICH. AICH. HOWARD H. BAKER, JR., TENN. NON, NEV. TED STEVENS. ALASKA NG, LA. J. GLENN BEALL, JR., MD. United States Senate >S. UTAH LOWELL P. WEICKER, JR., CONN. DLUNGS. S.C. JAMES L. SUCKLEY. N.Y. DM. NOUYE, HAWAII COMMITTEE ON COMMERCE JOHN & v. JANEY. CALIF. ADLA: E. STEVENSON, the WASHINGTON. D.C. 20510 WENDELL H. FORD. KY. JOHN A. DURKIN, N.M. MICHAEL PERTSCHUK, CHIEF COUNSEL S. LYNN SUTCLIFFE, GENERAL COUNSEL MALCOLM M. B. STERRETT, MINORITY COUNSEL August 26, 1976 Dear Mr. President: me I am writing to bring to your attention that a letter is being circulated, purportedly in your behalf, by the Department of Defense declaring that you have completed your personal review of the decision to phase out the Lexington-Blue Grass Army Depot and that the action will not be reversed. Quite naturally I was surprised to learn of this since I am still awaiting a response to a letter I sent you in early July concerning the progress of this review, while at the same time bringing to your attention the most recent efficiency rating for the Depot. I am asking that you either confirm or deny the validity of the statement in the Department of the Army's letter. If it is true, I would appreciate an explanation as to why neither I nor other members of the Kentucky Congressional delegation had been advised that your review was indeed finished. Sincerely, Hendell tak Wendell H. Ford KENTUCKY FORD The President The White House Washington, D. C. 20500 ARRALD Enclosure DEI OF The ARMY OFFICE OF THE DEPUTY CHIEF OF STAFF FOR LOGISTICS WASHINGTON D.C. 20310 DALO-SMZ-E WH 12472 10 AUG 1976 1976 AUG 20 MY On behalf of President Ford, I am replying to your letter of 2 June 1976 regarding Lexington Blue Grass Army Depot (LBAD). The President has had the decision reviewed. After review, the position of Department of Defense remains unchanged; when no longer enjoined, the Army will proceed with the reduction. The decision to reduce LBAD was made only after careful and detailed study and thorough consideration of the viable alternatives, including the re- duction of Sacramento Army Depot (SAAD) and the reduction of Tobyhanna Army Depot (TOAD). The newer and larger facilities at TOAD and the location and other missions assigned to SAAD dictated the decision to realign LBAD. The largest annual cost reduction, best use of facilities and most economic flexibility to meet unprogrammed requirements are offered by reducing LEAD to depot activity status. Regarding the depot rating system, it measures a depot against its own past performance. This rating system does not compare one depot with another, except in relation to the progress each depot makes against its own past performance. Lexington is the most improved depot. The Army must, however, look to total savings to the government in deciding upon realignments. As a result, Lexington was chosen. On 9 July 1976, the Court of Appeals for the Sixth Circuit reversed the decision of the District Court of the Eastern District of Kentucky on an injunction in furtherance of the realignment at LBAD. Additionally, on 3 August 1976, the District Court of the Eastern District of Kentucky also ruled in favor of the Army in another court challenge to the realign- ment. Your interest in this matter is appreciated. it FORD Sincerely, MINGEARIA FREEDOMA REVOLUTION BERT A. DAVID ARMY Major General, GS AMERICAN Assistant Deputy Chief of Staff 1776-1976 for Logistics OF DEPARTY OFFICE OF THE SECRETARY OF DEFENSE WASHINGTON, D. C. 20301 STATES August 25, 1976 MEMORANDUM FOR Mr. William T. Kendall Deputy Assistant to the President THROUGH: Mr. Warren L. Gulley Director, White House Military Office Pursuant to your request, attached is a draft reply to Senator Wendell H. Ford Deel Zeller USN Military Assistant Attachment AMERICAN REVOLUTION 1776-1976 Dear Senator Ford: This is in response to your letter of July 19, 1976 to the President concerning Lexington Blue Grass Army Depot (LBAD). The Army's requirement in the communications-electronics commodity area has decreased. As a result, workloads in both general supply and maintenance operations have declined. Further supply reductions have occurred with the implementation of the Revised Supply Distribution Plan. The total electronics maintenance capacity at Lexington Blue Grass, Sacramento (California) and Tobyhanna (Pennsylvania) far exceeds current and CONSIDERATION of ALL FACTORS future requirements. Based upon a comparison of the three depots, it has been determined that the greatest savings to the Government will be achieved through the realignment of Lexington Blue Grass Army Depot. Your referenced report, which rates each depot against itself, does not mean that LBAD is the best depot in the system -- it means only that LBAD is the most improved depot when rated against itself. The hard work and efforts put forth by the employees of LBAD is fully recognized and is indicative of the dedicated employees throughout the depot system. Despite all the efforts of our dedicated civil servants in the depot system, lack of money and emphasis REALIGNMENT on improved management dictate the closure of some of our installations and activities. LBAD is only one of many activities and installations that is being reduced. We fully understand and share your concern over the economic and human impact of the proposed reductions at LBAD. However, it must be realized that since 1968, the defense establishment has been cut by almost 350,000 civilian personnel and 1.4 million military personnel without a corresponding reduction- in the number of activities and installations. In addition, the Defense budget last year was cut by $7 billion. Faced with these continued reductions and the need to streamline our military operations, we must reduce and realign our domestic base structures. Your interest in this matter is appreciated and we hope the above information will be helpful for you. Sincerely, Mr. Kendall 2 July 22, 1976 Dear Senator: Thank you for your July 19 letter to the President concerning the Lenington-Blue Grass Army Depot and enclosing the DARCOM Productivity Trend and Effectiveness Performance Evaluation. Be assured that I will call your letter to the atten- tion of the President and the appropriate advisers without delay. You will hear further as soon as possible. With kind regards, Sincerely, William T. Kendall Deputy Assistant to the President The Honorable Wendell H. Ford United States Senate Washington, D.C. 20510 bec: w/ inc. to Military Aide for DRAFT for Kendall signature. bcc: w/ inc. to Bob Wolthuis fyi WTK:JEB:j JUL 26 1976 WH 13748 WENDELL H. FORD COMMITTEES: KENTUCKY COMMERCE AERONAUTICAL AND SPACE SCIENCES Mnited States Senate WASHINGTON, D.C. 20510 July 19, 1976 Dear Mr. President: In regard to your continuing review of the Army's decision to phase out the mission of the Lexington-Blue Grass Army Depot, I want to call your attention to the most recent DARCOM Productivity Trend and Effectiveness Performance Evaluation. This document was prepared by the Headquarters United States Army Material Command and once again, the Lexington Depot was ranked as the most productive and effective operation in the Army as it has since FY-73 by this measurement system. I am enclosing a copy of this evaluation for your information and specifically would invite your attention to pages 49 and 50. Please note that the Tobyhanna and Sacramento Depots, to which the Army proposes to transfer the Lexington- Blue Grass mission, are ranked fifth and last, respectively. Quite frankly, Mr. President, it would appear to me that if the Army would go to the time and effort to prepare a detailed evaluation of this nature, serious consideration would be given to its results. Obviously, this is not the case which seems both paradoxical and contrary to the very purpose of such an evaluation. As you complete your review, I urge you to seek an explanation as to why this and prior evaluations which ranked the Lexington-Blue Grass Depot first in both productivity and efficiency, were seemingly ignored. In my opinion, this should have a significant bearing on your personal review of this matter, and I would hope influence you that this decision is wrong and should be reversed. Sincerely, Audell Jard The President The White House Washington, D. C. DISTRICT OFFICES: 108 WAYTS FEDERAL BUILDING 172-C New FEDERAL DUILDING 314 FEDERAL BUILDING FRANKFORT. KENTUCKY 40601 LOUISVILLE, KENTUCKY 40202 OWENSBORO, KENTUCKY 42301 (502) 223-2386 (502) 582-6251 (502) 685-5158 draft we -8/2 Rent x walthins w/ note July 22, 1976 Dear Senator: Thank you for your July 19 letter to the President concerning the Laxingtom-Blue Grass Army Depot and enclosing the DARCOM Productivity Trend and Effectiveness Performance Evaination. Be assured that I will call your letter to the atten- tion of the President and the appropriate advisers without delay. You will hear further as SOOD as possible. With kind regards, Sincerely, William T. Kendall Deputy Assistant to the President The Honozable Wendell H. Ford United States Senate Washington, D.C. 20510 bcc: w/ inc. to Military Aide for DRAFT for Kendall signature. bee: w/ inc. to Bob Wolthuis lyi WTK:JEB:j FORD & LIBRARY KENTUCKY COMMERCE AERONAUTICAL AND SPACE SCIENCES United States Senate WASHINGTON, D.C. 20510 July 19, 1976 Dear Mr. President: In regard to your continuing review of the Army's decision to phase out the mission of the Lexington-Blue Grass Army Depot, I want to call your attention to the most recent DARCOM Productivity Trend and Effectiveness Performance Evaluation. This document was prepared by the Headquarters United States Army Material Command and once again, the Lexington Depot was ranked as the most productive and effective operation in the Army as it has since FY-73 by this measurement system. I am enclosing a copy of this evaluation for your information and specifically would invite your attention to pages 49 and 50. Please note that the Tobyhanna and Sacramento Depots, to which the Army proposes to transfer the Lexington- Blue Grass mission, are ranked fifth and last, respectively. Quite frankly, Mr. President, it would appear to me that if the Army would go to the time and effort to prepare a detailed evaluation of this nature, serious consideration would be given to its results. Obviously, this is not the case which seems both paradoxical and contrary to the very purpose of such an evaluation. As you complete your review, I urge you to seek an explanation as to why this and prior evaluations which ranked the Lexington-Blue Grass Depot first in both productivity and efficiency, were seemingly ignored. In my opinion, this should have a significant bearing on your personal review of this matter, and I would hope influence you that this decision is wrong and should be reversed. Sincerely, Audell Jaral The President The White House Washington, D. C. DISTRICT OFFICES: 108 WATTS FEDERAL BUILDING 172-C NEW FEDERAL BUILDING 314 FEDERAL BUILDING FRANKFORT, KENTUCKY 40601 LOUISVILLE, KENTUCKY 40202 OWENSBORO, KENTUCKY 42301 (502) 223-2333 (502) 582-6251 (502) 685-5158 M FEEDBACK DARCOM PRODUCTIVITY TREND 12/76 AND EFFECTIVENESS PERFORMANCE EVALUATION, FIRST HALF FY 1976 Prepared by REVIEW AND ANALYSIS DIVISION COMPTROLLER HQ, USAMC AUG 28 1976 President's Mail - August 27, 1976 House 1. Bill Archer Requests message of congratulations for Hedley V. Jackson of Houston, who will receive the highest award which Rotary International can bestow on August 31. 2. Garry Brown Urges that H.R. 15194, the Public Works Employment Appro- priations Act, be signed or allowed to become law without the President's signature, if it passes the Senate in substantially the same form as it passed the House. Explains why. 3. James Collins Praises Bob Dole and Jim Baker selections. Requests 15-minute appointment with the President to present a campaign issue idea. 4. Thomas Morgan Endorses Seymore Heyison for the National Highway Safety Advisory Committee. 5. Gillis Long Sends detailed letter urging the President to take immediate action to alleviate "the severe impact that the low prices have had on sugar producers." 6. Steward McKinney Send detailed letter urging a veto of H.R. 12261, "in keeping Edward Biester with the Republican Party Platform adopted in Kansas City which for the first time calls for full home rule over those matters that are purely local. " 7. Robert Michel Writes on behalf of Louis Neumiller, who was on the committee which chose the President as one of the 10 Outstanding Young Men in 1950, who recommends that the campaign film include a segment from this award. 8. Walter Fauntroy Sends detailed letter urging a veto of H.R. 12261. Says it "seriously undermines the District of Columbia Home Rule Act. " 9. Harley Staggers Expresses deep appreciation for the ceremonial pen marking the signing of the National Swine Flu Immunization Program. 10. John Dent Request that the President "take immediate action to place Richard Schulze either an embargo or impose quotas on foreign mushroom imports." Point out that "subsequent to your decision for 'adjustment assistance' to the domestic mushroom industry, imports by Asian mushroom processors have increased by the largest volume ever experienced." 11. Pat Schroeder Writes on behalf of the Denver Committee of Concern for Soviet Jewry regarding Mikhail Mager, whose visa requests to emigrate to Israel to be reunited with his wife have been denied. FORD LIB President's Mail - August 27, 1976 House 12. Bo Ginn Supports the CAB's recommendation for nonstop air service between Atlanta and London. 13. Jerome Ambro Requests that Nassau County be declared a disaster area due to damage from Hurricane Belle. 14. Bud Shuster Extends invitation to the President or a member of his family to attend the Republican Day Rally at the McClure Bean Soup Celebration on September 18. 15. Silvio Conte Extends invitation to the National Italian American Bicentennial Tribute Dinner on September 16 at the Washington Hilton Hotel. 16. 4 Members of the South Dakota Delegation and 2 Former Members Extend invitation to a reception in honor of Congressman Jim Abdnor on August 30 at the Rotunda Restaurant. 17. James Florio Requests greetings for Mrs. Verna Kannaro on her 88th birthday September 5. 18. James Hanley Requests greetings for Mrs. Elsie Coles on her 111th birthday August 27. 19. John Murtha Requests citation honoring Dr. Harold W. Thomas to be presented at a school dedication in October. President's Mail - August 27, 1976 Senate 1S Floyd Haskell Cites P.L. 90-498, which authorizes that the week including September 15-16 be designated National Hispanic Heritage Week. Hopes a proclamation will be issued. 2S Wendell Ford Writes about a letter being circulated in the President's behalf by DOD saying that the President has completed his personal review of the decision to phase out the Lexington-Blue Grass Army Depot and that the action will not be reversed. Asks for a confirmation or denial and, if a confirmation, requests explanation why the Kentucky Congressional delegation was not advised that the review was finished. 3S Pete Domenici Sends detailed letter concerning the campaign and the ethnic vote. Offers his help. 4S Ted Stevens On behalf of Mr. J. L. Laughlin, sends a set of post cards with pictures of each of the camps being used in the con- struction of the Trans-Alaska Pipeline. 5S Bill Brock Endorses Kenneth M. Smith for reappointment to the National Advisory Council on the Education of Disadvantaged Children. 6S Hugh Scott Endorses Richard C. Frame's invitation to attend the Distinguished Republican Award Dinners in Pennsylvania this fall. 7S Bill Brock Writes on behalf of Miller McDonald, who wishes to be appointed to a Presidential advisory board or commission. 8S Milton Young Writes on behalf of the General Manager of Minn-Dak Farmers Cooperative in support of an increase in the sugar tariff. 9S Clifford Hansen Requests autographed photograph for Etna Johnson. 9-1-76 - status FORD s OFRATO LIBRARY